102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4465

 

Introduced 1/21/2022, by Rep. Anna Moeller

 

SYNOPSIS AS INTRODUCED:
 
210 ILCS 9/77 new
210 ILCS 35/5.10 new
210 ILCS 40/10.2 new
210 ILCS 45/3-613 new
210 ILCS 46/3-613 new
210 ILCS 47/3-613 new

    Amends the Assisted Living and Shared Housing Act, the Community Living Facilities Licensing Act, the Life Care Facilities Act, the Nursing Home Care Act, the MC/DD Act, and the ID/DD Community Care Act. Provides that, on and after 36 months after the amendatory Act's effective date, facilities or establishments licensed under the Acts are prohibited from: (1) being owned by and leased or rented to related business entities; and (2) employing a service provider that is a related business entity of the owner of the facility or establishment. Provides that a facility or establishment shall not charge any over-market rate for a resident's rent or for services provided to a resident. Provides that the provisions do not apply to any facility or establishment that does not receive State or federal funds through Medicaid or Medicare. Contains other provisions.


LRB102 23419 CPF 32588 b

 

 

A BILL FOR

 

HB4465LRB102 23419 CPF 32588 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 Assisted Living and Shared Housing Act is
5amended by adding Section 77 as follows:
 
6    (210 ILCS 9/77 new)
7    Sec. 77. Related business entities.
8    (a) On and after 36 months after the effective date of this
9amendatory Act of the 102nd General Assembly, it is prohibited
10for an establishment to be owned by and leased or rented to
11related business entities.
12    (b) On and after 36 months after the effective date of this
13amendatory Act of the 102nd General Assembly, it is prohibited
14for an establishment to employ a service provider that is a
15related business entity of the owner of the establishment.
16    (c) An establishment shall disclose all tiers of ownership
17of the establishment to the Department.
18    (d) An establishment shall not charge any over-market rate
19for a resident's rent or for services provided to a resident.
20    (e) This Section does not apply to any establishment that
21does not receive State or federal funds through Medicaid or
22Medicare.
23    (f) In this Section, "related business entity" means one

 

 

HB4465- 2 -LRB102 23419 CPF 32588 b

1of 2 or more entities where:
2        (1) the entities have (i) significant common purposes
3    and substantial common membership or (ii) directly or
4    indirectly substantial common direction or control; or
5        (2) either entity owns, directly or through one or
6    more entities, a 50% or greater interest in the capital or
7    profits of the other.
 
8    Section 10. The Community Living Facilities Licensing Act
9is amended by adding Section 5.10 as follows:
 
10    (210 ILCS 35/5.10 new)
11    Sec. 5.10. Related business entities.
12    (a) On and after 36 months after the effective date of this
13amendatory Act of the 102nd General Assembly, it is prohibited
14for a Community Living Facility to be owned by and leased or
15rented to related business entities.
16    (b) On and after 36 months after the effective date of this
17amendatory Act of the 102nd General Assembly, it is prohibited
18for a Community Living Facility to employ a service provider
19that is a related business entity of the owner of the Community
20Living Facility.
21    (c) A Community Living Facility shall disclose all tiers
22of ownership of the Community Living Facility to the
23Department.
24    (d) A Community Living Facility shall not charge any

 

 

HB4465- 3 -LRB102 23419 CPF 32588 b

1over-market rate for a resident's rent or for services
2provided to a resident.
3    (e) This Section does not apply to any Community Living
4Facility that does not receive State or federal funds through
5Medicaid or Medicare.
6    (f) In this Section, "related business entity" means one
7of 2 or more entities where:
8        (1) the entities have (i) significant common purposes
9    and substantial common membership or (ii) directly or
10    indirectly substantial common direction or control; or
11        (2) either entity owns, directly or through one or
12    more entities, a 50% or greater interest in the capital or
13    profits of the other.
 
14    Section 15. The Life Care Facilities Act is amended by
15adding Section 10.2 as follows:
 
16    (210 ILCS 40/10.2 new)
17    Sec. 10.2. Related business entities.
18    (a) On and after 36 months after the effective date of this
19amendatory Act of the 102nd General Assembly, it is prohibited
20for a facility to be owned by and leased or rented to related
21business entities.
22    (b) On and after 36 months after the effective date of this
23amendatory Act of the 102nd General Assembly, it is prohibited
24for a facility to employ a service provider that is a related

 

 

HB4465- 4 -LRB102 23419 CPF 32588 b

1business entity of the owner of the facility.
2    (c) A facility shall disclose all tiers of ownership of
3the facility to the Department.
4    (d) A facility shall not charge any over-market rate for a
5resident's rent or for services provided to a resident.
6    (e) This Section does not apply to any facility that does
7not receive State or federal funds through Medicaid or
8Medicare.
9    (f) In this Section, "related business entity" means one
10of 2 or more entities where:
11        (1) the entities have (i) significant common purposes
12    and substantial common membership or (ii) directly or
13    indirectly substantial common direction or control; or
14        (2) either entity owns, directly or through one or
15    more entities, a 50% or greater interest in the capital or
16    profits of the other.
 
17    Section 20. The Nursing Home Care Act is amended by adding
18Section 3-613 as follows:
 
19    (210 ILCS 45/3-613 new)
20    Sec. 3-613. Related business entities.
21    (a) On and after 36 months after the effective date of this
22amendatory Act of the 102nd General Assembly, it is prohibited
23for a facility to be owned by and leased or rented to related
24business entities.

 

 

HB4465- 5 -LRB102 23419 CPF 32588 b

1    (b) On and after 36 months after the effective date of this
2amendatory Act of the 102nd General Assembly, it is prohibited
3for a facility to employ a service provider that is a related
4business entity of the owner of the facility.
5    (c) A facility shall disclose all tiers of ownership of
6the facility to the Department.
7    (d) A facility shall not charge any over-market rate for a
8resident's rent or for services provided to a resident.
9    (e) This Section does not apply to any facility that does
10not receive State or federal funds through Medicaid or
11Medicare.
12    (f) In this Section, "related business entity" means one
13of 2 or more entities where:
14        (1) the entities have (i) significant common purposes
15    and substantial common membership or (ii) directly or
16    indirectly substantial common direction or control; or
17        (2) either entity owns, directly or through one or
18    more entities, a 50% or greater interest in the capital or
19    profits of the other.
 
20    Section 25. The MC/DD Act is amended by adding Section
213-613 as follows:
 
22    (210 ILCS 46/3-613 new)
23    Sec. 3-613. Related business entities.
24    (a) On and after 36 months after the effective date of this

 

 

HB4465- 6 -LRB102 23419 CPF 32588 b

1amendatory Act of the 102nd General Assembly, it is prohibited
2for a facility to be owned by and leased or rented to related
3business entities.
4    (b) On and after 36 months after the effective date of this
5amendatory Act of the 102nd General Assembly, it is prohibited
6for a facility to employ a service provider that is a related
7business entity of the owner of the facility.
8    (c) A facility shall disclose all tiers of ownership of
9the facility to the Department.
10    (d) A facility shall not charge any over-market rate for a
11resident's rent or for services provided to a resident.
12    (e) This Section does not apply to any facility that does
13not receive State or federal funds through Medicaid or
14Medicare.
15    (f) In this Section, "related business entity" means one
16of 2 or more entities where:
17        (1) the entities have (i) significant common purposes
18    and substantial common membership or (ii) directly or
19    indirectly substantial common direction or control; or
20        (2) either entity owns, directly or through one or
21    more entities, a 50% or greater interest in the capital or
22    profits of the other.
 
23    Section 30. The ID/DD Community Care Act is amended by
24adding Section 3-613 as follows:
 

 

 

HB4465- 7 -LRB102 23419 CPF 32588 b

1    (210 ILCS 47/3-613 new)
2    Sec. 3-613. Related business entities.
3    (a) On and after 36 months after the effective date of this
4amendatory Act of the 102nd General Assembly, it is prohibited
5for a facility to be owned by and leased or rented to related
6business entities.
7    (b) On and after 36 months after the effective date of this
8amendatory Act of the 102nd General Assembly, it is prohibited
9for a facility to employ a service provider that is a related
10business entity of the owner of the facility.
11    (c) A facility shall disclose all tiers of ownership of
12the facility to the Department.
13    (d) A facility shall not charge any over-market rate for a
14resident's rent or for services provided to a resident.
15    (e) This Section does not apply to any facility that does
16not receive State or federal funds through Medicaid or
17Medicare.
18    (f) In this Section, "related business entity" means one
19of 2 or more entities where:
20        (1) the entities have (i) significant common purposes
21    and substantial common membership or (ii) directly or
22    indirectly substantial common direction or control; or
23        (2) either entity owns, directly or through one or
24    more entities, a 50% or greater interest in the capital or
25    profits of the other.