Full Text of HB3445 95th General Assembly
HB3445 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB3445
Introduced 2/27/2007, by Rep. John E. Bradley SYNOPSIS AS INTRODUCED: |
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Amends the Nursing Home Care Act and the State Mandates Act. Provides that no person may establish or operate a nursing home in Illinois unless and until he or she provides to the Department of Public Health proof of liability insurance coverage in an amount not less than $1,000,000 per occurrence. Requires the Department to deny, suspend, revoke, or refuse to renew a license for failure to maintain liability insurance coverage. Provides that failure to maintain such liability insurance coverage during the term of a facility's license is a Type "A" violation under the Act. Provides that the Director of Public Health may not grant a waiver of a facility's compliance with the requirement to maintain liability insurance coverage. Provides that information concerning a facility's liability insurance coverage is subject to disclosure to the public. Makes other changes with respect to liability insurance coverage. Provides that a licensee shall pay 3 times the actual damages, or $500, whichever is greater (instead of only the actual damages) and costs and attorney's fees to a resident whose rights are violated. Provides that any mandate created by these provisions is exempt from reimbursement by the State.
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FISCAL NOTE ACT MAY APPLY | |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB3445 |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Nursing Home Care Act is amended by changing | 5 |
| Sections 2-205, 3-103, 3-109, 3-117, 3-119, 3-303.1, 3-304.1, | 6 |
| 3-311, and 3-602 and by adding Sections 1-114.7 and 3-202.6 as | 7 |
| follows: | 8 |
| (210 ILCS 45/1-114.7 new) | 9 |
| Sec. 1-114.7. Liability insurance. "Liability insurance" | 10 |
| means insurance on risks based upon neglect of a resident for | 11 |
| which a licensee is or may be responsible.
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| (210 ILCS 45/2-205) (from Ch. 111 1/2, par. 4152-205)
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| Sec. 2-205. The following information is subject to | 14 |
| disclosure to
the public from the Department or the Department | 15 |
| of Healthcare and Family Services
Public Aid :
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| (1) Information submitted under Sections 3-103 (including | 17 |
| a facility's proof of liability insurance coverage) and 3-207 | 18 |
| except
information concerning the remuneration of personnel | 19 |
| licensed,
registered, or certified by the Department of | 20 |
| Professional Regulation
and monthly charges for an individual | 21 |
| private resident;
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| (2) Records of license and certification inspections, |
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| surveys, and
evaluations of facilities, other reports of | 2 |
| inspections, surveys, and
evaluations of resident care, and | 3 |
| reports concerning a facility prepared
pursuant to Titles XVIII | 4 |
| and XIX of the Social Security Act, subject to
the provisions | 5 |
| of the Social Security Act;
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| (3) Cost and reimbursement reports submitted by a facility | 7 |
| under
Section 3-208, reports of audits of facilities, and other | 8 |
| public
records concerning costs incurred by, revenues received | 9 |
| by, and
reimbursement of facilities; and
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| (4) Complaints filed against a facility and complaint | 11 |
| investigation
reports, except that a complaint or complaint | 12 |
| investigation report shall
not be disclosed to a person other | 13 |
| than the complainant or complainant's
representative before it | 14 |
| is disclosed to a facility under Section 3-702,
and, further, | 15 |
| except that a complainant or resident's name shall not be
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| disclosed except under Section 3-702.
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| The Department shall disclose information under this | 18 |
| Section in
accordance with provisions for inspection and | 19 |
| copying of public records
required by The Freedom of | 20 |
| Information Act.
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| However, the disclosure of information described in | 22 |
| subsection (1) shall
not be restricted by any provision of The | 23 |
| Freedom of Information Act.
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| (Source: P.A. 85-1209; 85-1378; revised 12-15-05.)
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| (210 ILCS 45/3-103) (from Ch. 111 1/2, par. 4153-103)
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| Sec. 3-103. The procedure for obtaining a valid license | 2 |
| shall be as follows:
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| (1) Application to operate a facility shall be made to
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| the Department on forms furnished by the Department.
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| (2)
All license applications shall be accompanied with | 6 |
| an application fee.
The fee
for an annual license shall be | 7 |
| $995. Facilities that pay a fee or assessment pursuant to | 8 |
| Article V-C of the Illinois Public Aid Code shall be exempt | 9 |
| from the license fee imposed under this item (2). The fee | 10 |
| for a 2-year
license shall be double the fee for the annual | 11 |
| license set forth in the
preceding sentence. The
fees | 12 |
| collected
shall be deposited with the State Treasurer into | 13 |
| the Long Term Care
Monitor/Receiver Fund, which has been | 14 |
| created as a special fund in the State
treasury.
This | 15 |
| special fund is to be used by the Department for expenses | 16 |
| related to
the appointment of monitors and receivers as | 17 |
| contained in Sections 3-501
through 3-517 of this Act and | 18 |
| for implementation of the Abuse Prevention Review Team Act. | 19 |
| At the end of each fiscal year, any funds in excess of
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| $1,000,000 held in the Long Term Care Monitor/Receiver Fund | 21 |
| shall be
deposited in the State's General Revenue Fund. The | 22 |
| application shall be under
oath and the submission of false | 23 |
| or misleading information shall be a Class
A misdemeanor. | 24 |
| The application shall contain the following information:
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| (a) The name and address of the applicant if an | 26 |
| individual, and if a firm,
partnership, or |
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| association, of every member thereof, and in the case | 2 |
| of
a corporation, the name and address thereof and of | 3 |
| its officers and its
registered agent, and in the case | 4 |
| of a unit of local government, the name
and address of | 5 |
| its chief executive officer;
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| (b) The name and location of the facility for which | 7 |
| a license is sought;
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| (c) The name of the person or persons under whose | 9 |
| management or
supervision
the facility will be | 10 |
| conducted;
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| (d) The number and type of residents for which | 12 |
| maintenance, personal care,
or nursing is to be | 13 |
| provided; and
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| (e) Such information relating to the number, | 15 |
| experience, and training
of the employees of the | 16 |
| facility, any management agreements for the operation
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| of the facility, and of the moral character of the | 18 |
| applicant and employees
as the Department may deem | 19 |
| necessary.
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| (3) Each initial application shall be accompanied by a | 21 |
| financial
statement setting forth the financial condition | 22 |
| of the applicant , including proof of liability insurance | 23 |
| coverage as required by this Act, and by a
statement from | 24 |
| the unit of local government having zoning jurisdiction | 25 |
| over
the facility's location stating that the location of | 26 |
| the facility is not in
violation of a zoning ordinance. An |
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| initial application for a new facility
shall be accompanied | 2 |
| by a permit as required by the "Illinois Health Facilities
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| Planning Act". After the application is approved, the | 4 |
| applicant shall
advise the Department every 6 months of any | 5 |
| changes in the information
originally provided in the | 6 |
| application.
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| (4) Other information necessary to determine the | 8 |
| identity and qualifications
of an applicant to operate a | 9 |
| facility in accordance with this Act shall
be included in | 10 |
| the application as required by the Department in | 11 |
| regulations.
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| (Source: P.A. 93-32, eff. 7-1-03; 93-841, eff. 7-30-04; 94-931, | 13 |
| eff. 6-26-06.)
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| (210 ILCS 45/3-109) (from Ch. 111 1/2, par. 4153-109)
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| Sec. 3-109. Upon receipt and review of an application for a | 16 |
| license
made under this Article and inspection of the applicant | 17 |
| facility under
this Article, the Director shall issue a license | 18 |
| if he finds:
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| (1) that the individual applicant, or the corporation, | 20 |
| partnership
or other entity if the applicant is not an | 21 |
| individual, is a person
responsible and suitable to operate or | 22 |
| to direct or participate in the
operation of a facility by | 23 |
| virtue of financial capacity, appropriate
business or | 24 |
| professional experience, a record of compliance with lawful
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| orders of the Department and lack of revocation of a license |
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| during the
previous 5 years;
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| (2) that the facility is under the supervision of an | 3 |
| administrator
who is licensed, if required, under the " Nursing | 4 |
| Home Administrators Licensing and Disciplinary Act " ,
as now or | 5 |
| hereafter amended; | 6 |
| (3) that the facility is covered by liability insurance as | 7 |
| required by this Act; and
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| (4)
(3) that the facility is in substantial compliance with | 9 |
| this Act,
and such other requirements for a license as the | 10 |
| Department by rule may
establish under this Act.
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| (Source: P.A. 81-1349; revised 9-15-06.)
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| (210 ILCS 45/3-117) (from Ch. 111 1/2, par. 4153-117)
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| Sec. 3-117. | 14 |
| (a) An application for a license may be denied for any of | 15 |
| the
following reasons:
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| (1) Failure to meet any of the minimum standards set forth | 17 |
| by this
Act or by rules and regulations promulgated by the | 18 |
| Department under this Act . ;
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| (2) Conviction of the applicant, or if the applicant is a | 20 |
| firm,
partnership or association, of any of its members, or if | 21 |
| a corporation,
the conviction of the corporation or any of its | 22 |
| officers or
stockholders, or of the person designated to manage | 23 |
| or supervise the
facility, of a felony, or of 2 or more | 24 |
| misdemeanors involving moral
turpitude, during the previous 5 | 25 |
| years as shown by a certified copy
of the record of the court |
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| of conviction . ;
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| (3) Personnel insufficient in number or unqualified by | 3 |
| training or
experience to properly care for the proposed number | 4 |
| and type of residents . ;
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| (4) Insufficient financial or other resources to operate | 6 |
| and conduct
the facility in accordance with standards | 7 |
| promulgated by the Department
under this Act . ;
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| (5) Revocation of a facility license during the previous 5 | 9 |
| years, if
such prior license was issued to the individual | 10 |
| applicant, a controlling
owner or controlling combination of | 11 |
| owners of the applicant; or any
affiliate of the individual | 12 |
| applicant or controlling owner of the applicant
and such | 13 |
| individual applicant, controlling owner of the applicant or
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| affiliate of the applicant was a controlling owner of the prior | 15 |
| license;
provided, however, that the denial of an application | 16 |
| for a license pursuant
to this subsection must be supported by | 17 |
| evidence that such prior revocation
renders the applicant | 18 |
| unqualified or incapable of meeting or maintaining
a facility | 19 |
| in accordance with the standards and rules promulgated by the
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| Department under this Act . ; or
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| (6) That the facility is not under the direct supervision | 22 |
| of a full-time
administrator, as defined by regulation, who is | 23 |
| licensed, if required,
under the Nursing Home Administrators | 24 |
| Licensing and Disciplinary Act.
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| (b) An application for a license shall be denied for | 26 |
| failure to maintain liability insurance as required by this |
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| Act.
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| (Source: P.A. 85-1337; revised 9-15-06.)
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| (210 ILCS 45/3-119) (from Ch. 111 1/2, par. 4153-119)
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| Sec. 3-119. (a) The Department, after notice to the | 5 |
| applicant or
licensee, may suspend, revoke or refuse to renew a | 6 |
| license in any case
in which the Department finds any of the | 7 |
| following:
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| (1) There has been a substantial failure to comply with | 9 |
| this Act or the
rules and regulations promulgated by the | 10 |
| Department under this Act . ;
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| (2) Conviction of the licensee, or of the person | 12 |
| designated to manage
or supervise the facility, of a | 13 |
| felony, or of 2 or more misdemeanors
involving moral | 14 |
| turpitude, during the previous 5 years as shown by a
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| certified copy of the record of the court of conviction . ;
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| (3) Personnel is insufficient in number or unqualified | 17 |
| by
training or experience to properly care for the number | 18 |
| and
type of residents served by the facility . ;
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| (4) Financial or other resources are insufficient to | 20 |
| conduct
and operate the facility in accordance with | 21 |
| standards promulgated by the
Department under this Act . ; | 22 |
| and
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| (5) The facility is not under the direct supervision of | 24 |
| a full-time
administrator, as defined by regulation, who is | 25 |
| licensed, if required,
under the Nursing Home |
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| Administrators Licensing and Disciplinary Act.
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| (a-5) The Department, after notice to the applicant or | 3 |
| licensee, shall suspend, revoke, or refuse to renew a license | 4 |
| in any case in which the Department finds that a facility has | 5 |
| failed to maintain liability insurance coverage as required by | 6 |
| this Act at any time during the term of its license.
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| (b) Notice under this Section shall include a clear and | 8 |
| concise
statement of the violations on which the nonrenewal or | 9 |
| revocation is
based, the statute or rule violated and notice of | 10 |
| the opportunity for a
hearing under Section 3-703.
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| (c) If a facility desires to contest the nonrenewal or | 12 |
| revocation of
a license, the facility shall, within 10 days | 13 |
| after receipt of notice
under subsection (b) of this Section, | 14 |
| notify the Department in writing
of its request for a hearing | 15 |
| under Section 3-703. Upon receipt of the
request the Department | 16 |
| shall send notice to the facility and hold a
hearing as | 17 |
| provided under Section 3-703.
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| (d) The effective date of nonrenewal or revocation of a | 19 |
| license by
the Department shall be any of the following:
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| (1) Until otherwise ordered by the circuit court, | 21 |
| revocation is
effective on the date set by the Department | 22 |
| in the notice of revocation,
or upon final action after | 23 |
| hearing under Section 3-703, whichever is later . ;
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| (2) Until otherwise ordered by the circuit court, | 25 |
| nonrenewal is
effective on the date of expiration of any | 26 |
| existing license, or upon
final action after hearing under |
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| Section 3-703, whichever is later; however,
a license shall | 2 |
| not be deemed to have expired if the Department fails to
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| timely respond to a timely request for renewal under this | 4 |
| Act or for a hearing
to contest nonrenewal under paragraph | 5 |
| (c) . ; or
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| (3) The Department may extend the effective date of | 7 |
| license
revocation or expiration in any case in order to | 8 |
| permit orderly removal
and relocation of residents.
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| The Department may refuse to issue or may suspend the
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| license of any person who fails to file a return, or to pay the | 11 |
| tax,
penalty or interest shown in a filed return, or to pay any | 12 |
| final assessment
of tax, penalty or interest, as required by | 13 |
| any tax Act administered by the
Illinois Department of Revenue, | 14 |
| until such time as the requirements of any
such tax Act are | 15 |
| satisfied.
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| (Source: P.A. 85-1337; revised 9-15-06.)
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| (210 ILCS 45/3-202.6 new) | 18 |
| Sec. 3-202.6. Liability insurance coverage required. No | 19 |
| person may establish, operate, maintain, offer, or advertise a | 20 |
| facility within this State unless and until he or she provides | 21 |
| to the Department of Public Health proof of liability insurance | 22 |
| coverage in an amount not less than $1,000,000 per occurrence. | 23 |
| Failure to maintain such liability insurance coverage during | 24 |
| the term of a facility's license is a Type "A" violation under | 25 |
| this Act.
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| (210 ILCS 45/3-303.1) (from Ch. 111 1/2, par. 4153-303.1)
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| Sec. 3-303.1. Upon application by a facility, except as | 3 |
| otherwise provided in this Section, the Director may grant
or | 4 |
| renew the waiver of the facility's compliance with a rule or | 5 |
| standard
for a period not to exceed the duration of the current | 6 |
| license or, in the
case of an application for license renewal, | 7 |
| the duration of the renewal
period. The waiver may be | 8 |
| conditioned upon the
facility taking action
prescribed by the | 9 |
| Director as a measure equivalent to compliance.
In determining | 10 |
| whether to grant or renew a waiver, the Director shall consider
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| the duration and basis for any current waiver with respect to | 12 |
| the same rule
or standard and the validity and effect upon | 13 |
| patient health and safety of
extending it on the same basis, | 14 |
| the effect upon the health and safety of
residents, the quality | 15 |
| of resident
care, the facility's history of compliance with the | 16 |
| rules and standards
of this Act and the facility's attempts to | 17 |
| comply
with the particular rule or standard in question. The | 18 |
| Department may
provide, by rule, for the automatic renewal of | 19 |
| waivers concerning physical
plant requirements upon the | 20 |
| renewal of a license. The Department shall
renew waivers | 21 |
| relating to physical plant standards issued pursuant to this
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| Section at the time of the indicated reviews, unless it can | 23 |
| show why such
waivers should not be extended for the following | 24 |
| reasons:
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| (a) the condition of the physical plant has deteriorated or |
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| its use
substantially changed so that the basis upon which the | 2 |
| waiver was issued is
materially different; or
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| (b) the facility is renovated or substantially remodeled in | 4 |
| such a way
as to permit compliance with the applicable rules | 5 |
| and standards without
substantial increase in cost.
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| A copy of each waiver application and each waiver granted | 7 |
| or renewed shall
be on file with the Department and available | 8 |
| for public inspection. The
Director shall annually review such | 9 |
| file and recommend to the Long Term
Care Facility Advisory | 10 |
| Board any modification in rules or standards suggested
by the | 11 |
| number and nature of waivers requested and granted and the | 12 |
| difficulties
faced in compliance by similarly situated | 13 |
| facilities.
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| Under no circumstances may the Director grant a waiver of a | 15 |
| facility's compliance with the requirement to maintain | 16 |
| liability insurance coverage as provided by this Act.
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| (Source: P.A. 85-1216.)
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| (210 ILCS 45/3-304.1)
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| Sec. 3-304.1. Public computer access to information.
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| (a) The Department must make information regarding nursing | 21 |
| homes in the
State
available to the public in electronic form | 22 |
| on the World Wide Web, including all
of the
following | 23 |
| information:
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| (1) who regulates nursing homes;
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| (2) information in the possession of the Department |
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| that is listed in
Sections 3-210 and 3-304;
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| (2.5) information concerning proof of liability | 3 |
| insurance coverage, including the name of the insurance | 4 |
| carrier and applicable limitations of liability;
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| (3) deficiencies and plans of correction;
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| (4) enforcement remedies;
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| (5) penalty letters;
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| (6) designation of penalty monies;
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| (7) the U.S. Department of Health and Human Services' | 10 |
| Health Care
Financing Administration special projects or | 11 |
| federally required inspections;
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| (8) advisory standards;
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| (9) deficiency-free surveys; and
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| (10) enforcement actions and enforcement summaries.
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| (b) No fee or other charge may be imposed by the Department | 16 |
| as a condition
of accessing the information.
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| (c) The electronic public access provided through the World | 18 |
| Wide Web shall
be
in addition to any other electronic or print | 19 |
| distribution of the information.
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| (d) The information shall be made available as provided in | 21 |
| this Section in
the
shortest practicable time after it is | 22 |
| publicly available in any other form.
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| (Source: P.A. 91-290, eff. 1-1-00.)
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| (210 ILCS 45/3-311) (from Ch. 111 1/2, par. 4153-311)
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| Sec. 3-311. In addition to the right to assess penalties |
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| under this Act,
the Director may issue a conditional license | 2 |
| under Section 3-305 to any
facility if the Director finds that | 3 |
| either a Type "A" or Type "B" violation
exists in such | 4 |
| facility , except that the Director may not issue such a | 5 |
| conditional license unless and until the facility is covered by | 6 |
| liability insurance as required by this Act . The issuance of a | 7 |
| conditional license shall revoke
any license held by the | 8 |
| facility.
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| (Source: P.A. 85-1378.)
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| (210 ILCS 45/3-602) (from Ch. 111 1/2, par. 4153-602)
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| Sec. 3-602. The licensee shall pay 3 times the actual | 12 |
| damages , or $500, whichever is greater, and costs and
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| attorney's fees to a facility
resident
whose rights, as | 14 |
| specified in Part 1 of Article II of this Act, are violated.
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| (Source: P.A. 89-197, eff. 7-21-95.)
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| Section 90. The State Mandates Act is amended by adding | 17 |
| Section 8.31 as follows: | 18 |
| (30 ILCS 805/8.31 new) | 19 |
| Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | 20 |
| of this Act, no reimbursement by the State is required for the | 21 |
| implementation of any mandate created by this amendatory Act of | 22 |
| the 95th General Assembly.
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INDEX
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Statutes amended in order of appearance
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| 210 ILCS 45/1-114.7 new |
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| 210 ILCS 45/2-205 |
from Ch. 111 1/2, par. 4152-205 |
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| 210 ILCS 45/3-103 |
from Ch. 111 1/2, par. 4153-103 |
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| 210 ILCS 45/3-109 |
from Ch. 111 1/2, par. 4153-109 |
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| 210 ILCS 45/3-117 |
from Ch. 111 1/2, par. 4153-117 |
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| 210 ILCS 45/3-119 |
from Ch. 111 1/2, par. 4153-119 |
| 9 |
| 210 ILCS 45/3-202.6 new |
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| 10 |
| 210 ILCS 45/3-303.1 |
from Ch. 111 1/2, par. 4153-303.1 |
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| 210 ILCS 45/3-304.1 |
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| 210 ILCS 45/3-311 |
from Ch. 111 1/2, par. 4153-311 |
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| 210 ILCS 45/3-602 |
from Ch. 111 1/2, par. 4153-602 |
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| 30 ILCS 805/8.31 new |
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