HB2375 103RD GENERAL ASSEMBLY

LRB103 25507 CPF 51856 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2375

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

SYNOPSIS AS INTRODUCED:

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.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Life Care Facilities Act is amended by changing Section 2 and by adding Section 13 as follows:

(210 ILCS 40/2) (from Ch. 111 1/2, par. 4160-2)

Sec. 2. As used in this Act, unless the context otherwise requires:

(a) "Department" means the Department of Public Health.

(b) "Director" means the Director of the Department.

(c) "Life care contract" means a contract to provide to a person for the duration of such person's life or for a term in excess of one year, nursing services, medical services or personal care services, in addition to maintenance services for such person in a facility, conditioned upon the transfer of an entrance fee to the provider of such services in addition to or in lieu of the payment of regular periodic charges for the care and services involved.

(d) "Provider" means a person who provides services pursuant to a life care contract.

(e) "Resident" means a person who enters into a life care contract with a provider, or who is designated in a life care contract to be a person provided with maintenance and nursing, medical or personal care services.

(f) "Facility" means a place or places in which a provider undertakes to provide a resident with nursing services, medical services or personal care services, in addition to maintenance services for a term in excess of one year or for life pursuant to a life care contract. The term also means a place or places in which a provider undertakes to provide such services to a non-resident.

(g) "Living unit" means an apartment, room or other area within a facility set aside for the exclusive use of one or more identified residents.

(h) "Entrance fee" means an initial or deferred transfer to a provider of a sum of money or property, made or promised to be made by a person entering into a life care contract, which assures a resident of services pursuant to a life care contract.

(i) "Permit" means a written authorization to enter into life care contracts issued by the Department to a provider.

(j) "Medical services" means those services pertaining to medical or dental care that are performed in behalf of patients at the direction of a physician licensed under the Medical Practice Act of 1987 or a dentist licensed under the Illinois Dental Practice Act by such physicians or dentists, or by a registered or licensed practical nurse as defined in the Nurse Practice Act or by other professional and technical personnel.

(k) "Nursing services" means those services pertaining to the curative, restorative and preventive aspects of nursing care that are performed at the direction of a physician licensed under the Medical Practice Act of 1987 by or under the supervision of a registered or licensed practical nurse as defined in the Nurse Practice Act.

(l) "Personal care services" means assistance with meals, dressing, movement, bathing or other personal needs or maintenance, or general supervision and oversight of the physical and mental well-being of an individual, who is incapable of maintaining a private, independent residence or who is incapable of managing his person whether or not a guardian has been appointed for such individual.

(m) "Maintenance services" means food, shelter and laundry services.

(n) "Certificates of Need" means those permits issued pursuant to the Illinois Health Facilities Planning Act as now or hereafter amended.

(o) "Non-resident" means a person admitted to a facility who has not entered into a life care contract.

(p) "Governing body" means the board of directors or other body having the power to direct the management and policies of a facility operated by a provider that is a corporation, partnership, trust, or limited liability company.

(q) "Proposed action" means a decision for which a vote is taken by a governing body and that is related to budget approvals or amendments, changes to fees paid by residents, and contracts for services provided to existing residents.

(r) "Residents' association" means a group, committee, council, or other body of residents formed as a nonprofit corporation, cooperative corporation, or other entity or organization that represents the interests of at least a majority of the facility's residents.

(Source: P.A. 95-639, eff. 10-5-07.)

(210 ILCS 40/13 new)

Sec. 13. Residents' associations.

(a) A resident has the right to organize and participate in a residents' association. Reprisal by a provider is not permitted in response to a residents' association's activities, including, but not limited to, efforts to form a residents' association, to participate in a residents' association, or to submit a complaint to the Department regarding a provider's violation of this Section or any other State or federal law.

(b) On and after July 1, 2023, a representative of a provider's governing body must hold an annual meeting at each of the provider's facilities located in the State for open discussion of subjects, including, but not limited to, the facility's income, expenditures, and financial trends; issues affecting the continuing care offered by the retirement community; and proposed changes in retirement community policies, programs, and services. Annual meetings required under this subsection shall be held with the facility's residents' association, if one exists, or the residents of the facility. Notice of a meeting under this subsection shall be provided to residents of the respective facility no later than 30 days before the meeting. Any meeting required under this subsection may be held by electronic means, such as by teleconference, video conference, distribution of a video made available to residents, or an Internet-based meeting platform allowing for resident questions, the ability to interact with the meeting's presenter, or both. If a provider does not have a governing body, the requirements of this subsection shall be fulfilled by the provider's officer, trustee, owner, or agent. Nothing in this Section precludes a provider from taking action or making a decision at any time without regard to the meetings required under this Section.

(c) On and after January 1, 2024, within 60 days after being requested by a residents' association or a committee of the residents' association, a provider shall make available to the residents' association of each facility operated by the provider within the State:

(1) no more frequently than quarterly, a statement of financial activities for the facility, which shall include, but shall not be limited to, a comparison of actual costs to budgeted costs, broken down by expense category and calculated at an annual meeting held under subsection (b); and

(2) a written explanation of all material variances of actual costs with budget costs calculated under paragraph (1).

A provider shall designate and make available personnel at each of its facilities located in the State to fulfill the requirements of this subsection.

(d) The Department shall ensure that providers comply with this Section. If a provider does not comply with this Section, the Department shall provide written notice to the provider of the noncompliance and the provider shall cure the noncompliance within 30 days after receiving the notice from the Department.

Section 99. Effective date. This Act takes effect upon becoming law.