97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1667

 

Introduced 2/9/2011, by Sen. Heather A. Steans

 

SYNOPSIS AS INTRODUCED:
 
305 ILCS 5/5-5.2  from Ch. 23, par. 5-5.2
305 ILCS 5/5-5.4  from Ch. 23, par. 5-5.4
305 ILCS 5/5B-1  from Ch. 23, par. 5B-1
305 ILCS 5/5B-2  from Ch. 23, par. 5B-2
305 ILCS 5/5B-4  from Ch. 23, par. 5B-4
305 ILCS 5/5B-7  from Ch. 23, par. 5B-7
305 ILCS 5/Art. V-E rep.
305 ILCS 5/5E-5 rep.
305 ILCS 5/5E-10 rep.
305 ILCS 5/5E-15 rep.

    Amends the Illinois Public Aid Code. Changes the date on when the Department of Healthcare and Family Services shall implement an evidence-based payment methodology for the reimbursement of nursing facility services and requires the revised methodology to incorporate patient acuity, patient health outcomes, and measures of quality and quality improvement for the determination of payment. Removes a provision requiring the Department to develop enhanced payments to offset the additional costs incurred by a facility serving exceptional need residents. Provides that licensed bed days shall be computed separately for each nursing home operated or maintained by a nursing home provider. Changes the assessment rate for long-term care providers to $2.04 times the number of licensed bed days (rather than $6.07 times the number of occupied bed days) due and payable each month. Repeals provisions concerning licensed nursing bed day fees. Effective upon becoming law or on the effective date of Senate Bill 3088 of the 96th General Assembly, whichever is later.


LRB097 09068 KTG 50057 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1667LRB097 09068 KTG 50057 b

1    AN ACT concerning public aid.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. If and only if Senate Bill 3088 of the 96th
5General Assembly becomes law, then the Illinois Public Aid Code
6is amended by changing Sections 5-5.2, 5-5.4, 5B-1, 5B-2, 5B-4,
7and 5B-7 as follows:
 
8    (305 ILCS 5/5-5.2)  (from Ch. 23, par. 5-5.2)
9    Sec. 5-5.2. Payment.
10    (a) All nursing facilities that are grouped pursuant to
11Section 5-5.1 of this Act shall receive the same rate of
12payment for similar services.
13    (b) It shall be a matter of State policy that the Illinois
14Department shall utilize a uniform billing cycle throughout the
15State for the long-term care providers.
16    (c) Notwithstanding any other provisions of this Code,
17beginning January July 1, 2012 the methodologies for
18reimbursement of nursing facility services as provided under
19this Article shall no longer be applicable for bills payable
20for State fiscal years 2012 and thereafter. The Department of
21Healthcare and Family Services shall, effective January July 1,
222012, implement an evidence-based payment methodology for the
23reimbursement of nursing facility services. The methodology

 

 

SB1667- 2 -LRB097 09068 KTG 50057 b

1shall continue to take into consideration the needs of
2individual residents, as assessed and reported by the most
3current version of the nursing facility Resident Assessment
4Instrument, adopted and in use by the federal government.
5Additionally, the revised methodology shall incorporate
6patient acuity, patient health outcomes, and measures of
7quality and quality improvement for the determination of
8payment.
9(Source: P.A. 87-809; 88-380; 96SB3088 Enrolled.)
 
10    (305 ILCS 5/5-5.4)  (from Ch. 23, par. 5-5.4)
11    Sec. 5-5.4. Standards of Payment - Department of Healthcare
12and Family Services. The Department of Healthcare and Family
13Services shall develop standards of payment of nursing facility
14and ICF/DD services in facilities providing such services under
15this Article which:
16    (1) Provide for the determination of a facility's payment
17for nursing facility or ICF/DD services on a prospective basis.
18The amount of the payment rate for all nursing facilities
19certified by the Department of Public Health under the MR/DD
20Community Care Act or the Nursing Home Care Act as Intermediate
21Care for the Developmentally Disabled facilities, Long Term
22Care for Under Age 22 facilities, Skilled Nursing facilities,
23or Intermediate Care facilities under the medical assistance
24program shall be prospectively established annually on the
25basis of historical, financial, and statistical data

 

 

SB1667- 3 -LRB097 09068 KTG 50057 b

1reflecting actual costs from prior years, which shall be
2applied to the current rate year and updated for inflation,
3except that the capital cost element for newly constructed
4facilities shall be based upon projected budgets. The annually
5established payment rate shall take effect on July 1 in 1984
6and subsequent years. No rate increase and no update for
7inflation shall be provided on or after July 1, 1994 and before
8January July 1, 2012, unless specifically provided for in this
9Section. The changes made by Public Act 93-841 extending the
10duration of the prohibition against a rate increase or update
11for inflation are effective retroactive to July 1, 2004.
12    For facilities licensed by the Department of Public Health
13under the Nursing Home Care Act as Intermediate Care for the
14Developmentally Disabled facilities or Long Term Care for Under
15Age 22 facilities, the rates taking effect on July 1, 1998
16shall include an increase of 3%. For facilities licensed by the
17Department of Public Health under the Nursing Home Care Act as
18Skilled Nursing facilities or Intermediate Care facilities,
19the rates taking effect on July 1, 1998 shall include an
20increase of 3% plus $1.10 per resident-day, as defined by the
21Department. For facilities licensed by the Department of Public
22Health under the Nursing Home Care Act as Intermediate Care
23Facilities for the Developmentally Disabled or Long Term Care
24for Under Age 22 facilities, the rates taking effect on January
251, 2006 shall include an increase of 3%. For facilities
26licensed by the Department of Public Health under the Nursing

 

 

SB1667- 4 -LRB097 09068 KTG 50057 b

1Home Care Act as Intermediate Care Facilities for the
2Developmentally Disabled or Long Term Care for Under Age 22
3facilities, the rates taking effect on January 1, 2009 shall
4include an increase sufficient to provide a $0.50 per hour wage
5increase for non-executive staff.
6    For facilities licensed by the Department of Public Health
7under the Nursing Home Care Act as Intermediate Care for the
8Developmentally Disabled facilities or Long Term Care for Under
9Age 22 facilities, the rates taking effect on July 1, 1999
10shall include an increase of 1.6% plus $3.00 per resident-day,
11as defined by the Department. For facilities licensed by the
12Department of Public Health under the Nursing Home Care Act as
13Skilled Nursing facilities or Intermediate Care facilities,
14the rates taking effect on July 1, 1999 shall include an
15increase of 1.6% and, for services provided on or after October
161, 1999, shall be increased by $4.00 per resident-day, as
17defined by the Department.
18    For facilities licensed by the Department of Public Health
19under the Nursing Home Care Act as Intermediate Care for the
20Developmentally Disabled facilities or Long Term Care for Under
21Age 22 facilities, the rates taking effect on July 1, 2000
22shall include an increase of 2.5% per resident-day, as defined
23by the Department. For facilities licensed by the Department of
24Public Health under the Nursing Home Care Act as Skilled
25Nursing facilities or Intermediate Care facilities, the rates
26taking effect on July 1, 2000 shall include an increase of 2.5%

 

 

SB1667- 5 -LRB097 09068 KTG 50057 b

1per resident-day, as defined by the Department.
2    For facilities licensed by the Department of Public Health
3under the Nursing Home Care Act as skilled nursing facilities
4or intermediate care facilities, a new payment methodology must
5be implemented for the nursing component of the rate effective
6July 1, 2003. The Department of Public Aid (now Healthcare and
7Family Services) shall develop the new payment methodology
8using the Minimum Data Set (MDS) as the instrument to collect
9information concerning nursing home resident condition
10necessary to compute the rate. The Department shall develop the
11new payment methodology to meet the unique needs of Illinois
12nursing home residents while remaining subject to the
13appropriations provided by the General Assembly. A transition
14period from the payment methodology in effect on June 30, 2003
15to the payment methodology in effect on July 1, 2003 shall be
16provided for a period not exceeding 3 years and 184 days after
17implementation of the new payment methodology as follows:
18        (A) For a facility that would receive a lower nursing
19    component rate per patient day under the new system than
20    the facility received effective on the date immediately
21    preceding the date that the Department implements the new
22    payment methodology, the nursing component rate per
23    patient day for the facility shall be held at the level in
24    effect on the date immediately preceding the date that the
25    Department implements the new payment methodology until a
26    higher nursing component rate of reimbursement is achieved

 

 

SB1667- 6 -LRB097 09068 KTG 50057 b

1    by that facility.
2        (B) For a facility that would receive a higher nursing
3    component rate per patient day under the payment
4    methodology in effect on July 1, 2003 than the facility
5    received effective on the date immediately preceding the
6    date that the Department implements the new payment
7    methodology, the nursing component rate per patient day for
8    the facility shall be adjusted.
9        (C) Notwithstanding paragraphs (A) and (B), the
10    nursing component rate per patient day for the facility
11    shall be adjusted subject to appropriations provided by the
12    General Assembly.
13    For facilities licensed by the Department of Public Health
14under the Nursing Home Care Act as Intermediate Care for the
15Developmentally Disabled facilities or Long Term Care for Under
16Age 22 facilities, the rates taking effect on March 1, 2001
17shall include a statewide increase of 7.85%, as defined by the
18Department.
19    Notwithstanding any other provision of this Section, for
20facilities licensed by the Department of Public Health under
21the Nursing Home Care Act as skilled nursing facilities or
22intermediate care facilities, except facilities participating
23in the Department's demonstration program pursuant to the
24provisions of Title 77, Part 300, Subpart T of the Illinois
25Administrative Code, the numerator of the ratio used by the
26Department of Healthcare and Family Services to compute the

 

 

SB1667- 7 -LRB097 09068 KTG 50057 b

1rate payable under this Section using the Minimum Data Set
2(MDS) methodology shall incorporate the following annual
3amounts as the additional funds appropriated to the Department
4specifically to pay for rates based on the MDS nursing
5component methodology in excess of the funding in effect on
6December 31, 2006:
7        (i) For rates taking effect January 1, 2007,
8    $60,000,000.
9        (ii) For rates taking effect January 1, 2008,
10    $110,000,000.
11        (iii) For rates taking effect January 1, 2009,
12    $194,000,000.
13        (iv) (Blank) For rates taking effect April 1, 2011, or
14    the first day of the month that begins at least 45 days
15    after the effective date of this amendatory Act of the 96th
16    General Assembly, $416,500,000 or an amount as may be
17    necessary to complete the transition to the MDS methodology
18    for the nursing component of the rate.
19    Notwithstanding any other provision of this Section, for
20facilities licensed by the Department of Public Health under
21the Nursing Home Care Act as skilled nursing facilities or
22intermediate care facilities, the support component of the
23rates taking effect on January 1, 2008 shall be computed using
24the most recent cost reports on file with the Department of
25Healthcare and Family Services no later than April 1, 2005,
26updated for inflation to January 1, 2006.

 

 

SB1667- 8 -LRB097 09068 KTG 50057 b

1    For facilities licensed by the Department of Public Health
2under the Nursing Home Care Act as Intermediate Care for the
3Developmentally Disabled facilities or Long Term Care for Under
4Age 22 facilities, the rates taking effect on April 1, 2002
5shall include a statewide increase of 2.0%, as defined by the
6Department. This increase terminates on July 1, 2002; beginning
7July 1, 2002 these rates are reduced to the level of the rates
8in effect on March 31, 2002, as defined by the Department.
9    For facilities licensed by the Department of Public Health
10under the Nursing Home Care Act as skilled nursing facilities
11or intermediate care facilities, the rates taking effect on
12July 1, 2001 shall be computed using the most recent cost
13reports on file with the Department of Public Aid no later than
14April 1, 2000, updated for inflation to January 1, 2001. For
15rates effective July 1, 2001 only, rates shall be the greater
16of the rate computed for July 1, 2001 or the rate effective on
17June 30, 2001.
18    Notwithstanding any other provision of this Section, for
19facilities licensed by the Department of Public Health under
20the Nursing Home Care Act as skilled nursing facilities or
21intermediate care facilities, the Illinois Department shall
22determine by rule the rates taking effect on July 1, 2002,
23which shall be 5.9% less than the rates in effect on June 30,
242002.
25    Notwithstanding any other provision of this Section, for
26facilities licensed by the Department of Public Health under

 

 

SB1667- 9 -LRB097 09068 KTG 50057 b

1the Nursing Home Care Act as skilled nursing facilities or
2intermediate care facilities, if the payment methodologies
3required under Section 5A-12 and the waiver granted under 42
4CFR 433.68 are approved by the United States Centers for
5Medicare and Medicaid Services, the rates taking effect on July
61, 2004 shall be 3.0% greater than the rates in effect on June
730, 2004. These rates shall take effect only upon approval and
8implementation of the payment methodologies required under
9Section 5A-12.
10    Notwithstanding any other provisions of this Section, for
11facilities licensed by the Department of Public Health under
12the Nursing Home Care Act as skilled nursing facilities or
13intermediate care facilities, the rates taking effect on
14January 1, 2005 shall be 3% more than the rates in effect on
15December 31, 2004.
16    Notwithstanding any other provision of this Section, for
17facilities licensed by the Department of Public Health under
18the Nursing Home Care Act as skilled nursing facilities or
19intermediate care facilities, effective January 1, 2009, the
20per diem support component of the rates effective on January 1,
212008, computed using the most recent cost reports on file with
22the Department of Healthcare and Family Services no later than
23April 1, 2005, updated for inflation to January 1, 2006, shall
24be increased to the amount that would have been derived using
25standard Department of Healthcare and Family Services methods,
26procedures, and inflators.

 

 

SB1667- 10 -LRB097 09068 KTG 50057 b

1    Notwithstanding any other provisions of this Section, for
2facilities licensed by the Department of Public Health under
3the Nursing Home Care Act as intermediate care facilities that
4are federally defined as Institutions for Mental Disease, a
5socio-development component rate equal to 6.6% of the
6facility's nursing component rate as of January 1, 2006 shall
7be established and paid effective July 1, 2006. The
8socio-development component of the rate shall be increased by a
9factor of 2.53 on the first day of the month that begins at
10least 45 days after January 11, 2008 (the effective date of
11Public Act 95-707). As of August 1, 2008, the socio-development
12component rate shall be equal to 6.6% of the facility's nursing
13component rate as of January 1, 2006, multiplied by a factor of
143.53. For services provided on or after January 1, 2012 April
151, 2011, or the first day of the month that begins at least 45
16days after the effective date of this amendatory Act of the
1796th General Assembly, whichever is later, the Illinois
18Department may by rule adjust these socio-development
19component rates, and may use different adjustment
20methodologies for those facilities participating, and those
21not participating, in the Illinois Department's demonstration
22program pursuant to the provisions of Title 77, Part 300,
23Subpart T of the Illinois Administrative Code, but in no case
24may such rates be diminished below those in effect on August 1,
252008.
26    For facilities licensed by the Department of Public Health

 

 

SB1667- 11 -LRB097 09068 KTG 50057 b

1under the Nursing Home Care Act as Intermediate Care for the
2Developmentally Disabled facilities or as long-term care
3facilities for residents under 22 years of age, the rates
4taking effect on July 1, 2003 shall include a statewide
5increase of 4%, as defined by the Department.
6    For facilities licensed by the Department of Public Health
7under the Nursing Home Care Act as Intermediate Care for the
8Developmentally Disabled facilities or Long Term Care for Under
9Age 22 facilities, the rates taking effect on the first day of
10the month that begins at least 45 days after the effective date
11of this amendatory Act of the 95th General Assembly shall
12include a statewide increase of 2.5%, as defined by the
13Department.
14    Notwithstanding any other provision of this Section, for
15facilities licensed by the Department of Public Health under
16the Nursing Home Care Act as skilled nursing facilities or
17intermediate care facilities, effective January 1, 2005,
18facility rates shall be increased by the difference between (i)
19a facility's per diem property, liability, and malpractice
20insurance costs as reported in the cost report filed with the
21Department of Public Aid and used to establish rates effective
22July 1, 2001 and (ii) those same costs as reported in the
23facility's 2002 cost report. These costs shall be passed
24through to the facility without caps or limitations, except for
25adjustments required under normal auditing procedures.
26    Rates established effective each July 1 shall govern

 

 

SB1667- 12 -LRB097 09068 KTG 50057 b

1payment for services rendered throughout that fiscal year,
2except that rates established on July 1, 1996 shall be
3increased by 6.8% for services provided on or after January 1,
41997. Such rates will be based upon the rates calculated for
5the year beginning July 1, 1990, and for subsequent years
6thereafter until June 30, 2001 shall be based on the facility
7cost reports for the facility fiscal year ending at any point
8in time during the previous calendar year, updated to the
9midpoint of the rate year. The cost report shall be on file
10with the Department no later than April 1 of the current rate
11year. Should the cost report not be on file by April 1, the
12Department shall base the rate on the latest cost report filed
13by each skilled care facility and intermediate care facility,
14updated to the midpoint of the current rate year. In
15determining rates for services rendered on and after July 1,
161985, fixed time shall not be computed at less than zero. The
17Department shall not make any alterations of regulations which
18would reduce any component of the Medicaid rate to a level
19below what that component would have been utilizing in the rate
20effective on July 1, 1984.
21    (2) Shall take into account the actual costs incurred by
22facilities in providing services for recipients of skilled
23nursing and intermediate care services under the medical
24assistance program.
25    (3) Shall take into account the medical and psycho-social
26characteristics and needs of the patients.

 

 

SB1667- 13 -LRB097 09068 KTG 50057 b

1    (4) Shall take into account the actual costs incurred by
2facilities in meeting licensing and certification standards
3imposed and prescribed by the State of Illinois, any of its
4political subdivisions or municipalities and by the U.S.
5Department of Health and Human Services pursuant to Title XIX
6of the Social Security Act.
7    The Department of Healthcare and Family Services shall
8develop precise standards for payments to reimburse nursing
9facilities for any utilization of appropriate rehabilitative
10personnel for the provision of rehabilitative services which is
11authorized by federal regulations, including reimbursement for
12services provided by qualified therapists or qualified
13assistants, and which is in accordance with accepted
14professional practices. Reimbursement also may be made for
15utilization of other supportive personnel under appropriate
16supervision.
17    The Department shall develop enhanced payments to offset
18the additional costs incurred by a facility serving exceptional
19need residents and shall allocate at least $8,000,000 of the
20funds collected from the assessment established by Section 5B-2
21of this Code for such payments. For the purpose of this
22Section, "exceptional needs" means, but need not be limited to,
23ventilator care, tracheotomy care, bariatric care, complex
24wound care, and traumatic brain injury care.
25    (5) Beginning January July 1, 2012 the methodologies for
26reimbursement of nursing facility services as provided under

 

 

SB1667- 14 -LRB097 09068 KTG 50057 b

1this Section 5-5.4 shall no longer be applicable for bills
2payable for State fiscal years 2012 and thereafter.
3(Source: P.A. 95-12, eff. 7-2-07; 95-331, eff. 8-21-07; 95-707,
4eff. 1-11-08; 95-744, eff. 7-18-08; 96-45, eff. 7-15-09;
596-339, eff. 7-1-10; 96-959, eff. 7-1-10; 96-1000, eff. 7-2-10;
696SB3088 Enrolled.)
 
7    (305 ILCS 5/5B-1)  (from Ch. 23, par. 5B-1)
8    Sec. 5B-1. Definitions. As used in this Article, unless the
9context requires otherwise:
10    "Fund" means the Long-Term Care Provider Fund.
11    "Long-term care facility" means (i) a nursing facility,
12whether public or private and whether organized for profit or
13not-for-profit, that is subject to licensure by the Illinois
14Department of Public Health under the Nursing Home Care Act or
15the MR/DD Community Care Act, including a county nursing home
16directed and maintained under Section 5-1005 of the Counties
17Code, and (ii) a part of a hospital in which skilled or
18intermediate long-term care services within the meaning of
19Title XVIII or XIX of the Social Security Act are provided;
20except that the term "long-term care facility" does not include
21a facility operated by a State agency, a facility participating
22in the Illinois Department's demonstration program pursuant to
23the provisions of Title 77, Part 300, Subpart T of the Illinois
24Administrative Code, or operated solely as an intermediate care
25facility for the mentally retarded within the meaning of Title

 

 

SB1667- 15 -LRB097 09068 KTG 50057 b

1XIX of the Social Security Act.
2    "Long-term care provider" means (i) a person licensed by
3the Department of Public Health to operate and maintain a
4skilled nursing or intermediate long-term care facility or (ii)
5a hospital provider that provides skilled or intermediate
6long-term care services within the meaning of Title XVIII or
7XIX of the Social Security Act. For purposes of this paragraph,
8"person" means any political subdivision of the State,
9municipal corporation, individual, firm, partnership,
10corporation, company, limited liability company, association,
11joint stock association, or trust, or a receiver, executor,
12trustee, guardian, or other representative appointed by order
13of any court. "Hospital provider" means a person licensed by
14the Department of Public Health to conduct, operate, or
15maintain a hospital.
16    "Occupied bed days" shall be computed separately for each
17long-term care facility operated or maintained by a long-term
18care provider, and means the sum for all beds of the number of
19days during the month on which each bed was occupied by a
20resident, other than a resident for whom Medicare Part A is the
21primary payer.
22    "Licensed bed days" shall be computed separately for each
23nursing home operated or maintained by a nursing home provider
24and means, with respect to a nursing home provider, the sum for
25all nursing home beds of the number of days during a calendar
26quarter on which each bed is covered by a license issued to

 

 

SB1667- 16 -LRB097 09068 KTG 50057 b

1that provider under the Nursing Home Care Act or the Hospital
2Licensing Act.
3(Source: P.A. 96-339, eff. 7-1-10; 96SB3088 Enrolled.)
 
4    (305 ILCS 5/5B-2)  (from Ch. 23, par. 5B-2)
5    Sec. 5B-2. Assessment; no local authorization to tax.
6    (a) For the privilege of engaging in the occupation of
7long-term care provider, beginning July 1, 2011 an assessment
8is imposed upon each long-term care provider in an amount equal
9to $2.04 $6.07 times the number of licensed occupied bed days
10due and payable each month. Notwithstanding any provision of
11any other Act to the contrary, this assessment shall be
12construed as a tax, but may not be added to the charges of an
13individual's nursing home care that is paid for in whole, or in
14part, by a federal, State, or combined federal-state medical
15care program.
16    (b) Nothing in this amendatory Act of 1992 shall be
17construed to authorize any home rule unit or other unit of
18local government to license for revenue or impose a tax or
19assessment upon long-term care providers or the occupation of
20long-term care provider, or a tax or assessment measured by the
21income or earnings or occupied bed days or licensed bed days of
22a long-term care provider.
23(Source: P.A. 87-861; 96SB3088 Enrolled.)
 
24    (305 ILCS 5/5B-4)  (from Ch. 23, par. 5B-4)

 

 

SB1667- 17 -LRB097 09068 KTG 50057 b

1    Sec. 5B-4. Payment of assessment; penalty.
2    (a) The assessment imposed by Section 5B-2 shall be due and
3payable monthly, on the last State business day of the month
4for licensed occupied bed days reported for the preceding third
5month prior to the month in which the tax is payable and due. A
6facility that has delayed payment due to the State's failure to
7reimburse for services rendered may request an extension on the
8due date for payment pursuant to subsection (b) and shall pay
9the assessment within 30 days of reimbursement by the
10Department. The Illinois Department may provide that county
11nursing homes directed and maintained pursuant to Section
125-1005 of the Counties Code may meet their assessment
13obligation by certifying to the Illinois Department that county
14expenditures have been obligated for the operation of the
15county nursing home in an amount at least equal to the amount
16of the assessment.
17    (a-5) Each assessment payment shall be accompanied by an
18assessment report to be completed by the long-term care
19provider. A separate report shall be completed for each
20long-term care facility in this State operated by a long-term
21care provider. The report shall be in a form and manner
22prescribed by the Illinois Department and shall at a minimum
23provide for the reporting of the number of occupied bed days of
24the long-term care facility for the reporting period and other
25reasonable information the Illinois Department requires for
26the administration of its responsibilities under this Code. To

 

 

SB1667- 18 -LRB097 09068 KTG 50057 b

1the extent practicable, the Department shall coordinate the
2assessment reporting requirements with other reporting
3required of long-term care facilities.
4    (b) The Illinois Department is authorized to establish
5delayed payment schedules for long-term care providers that are
6unable to make assessment payments when due under this Section
7due to financial difficulties, as determined by the Illinois
8Department. The Illinois Department may not deny a request for
9delay of payment of the assessment imposed under this Article
10if the long-term care provider has not been paid for services
11provided during the month on which the assessment is levied.
12    (c) If a long-term care provider fails to pay the full
13amount of an assessment payment when due (including any
14extensions granted under subsection (b)), there shall, unless
15waived by the Illinois Department for reasonable cause, be
16added to the assessment imposed by Section 5B-2 a penalty
17assessment equal to the lesser of (i) 5% of the amount of the
18assessment payment not paid on or before the due date plus 5%
19of the portion thereof remaining unpaid on the last day of each
20month thereafter or (ii) 100% of the assessment payment amount
21not paid on or before the due date. For purposes of this
22subsection, payments will be credited first to unpaid
23assessment payment amounts (rather than to penalty or
24interest), beginning with the most delinquent assessment
25payments . Payment cycles of longer than 60 days shall be one
26factor the Director takes into account in granting a waiver

 

 

SB1667- 19 -LRB097 09068 KTG 50057 b

1under this Section.
2    (c-5) If a long-term care provider fails to file its report
3with payment, there shall, unless waived by the Illinois
4Department for reasonable cause, be added to the assessment due
5a penalty assessment equal to 25% of the assessment due.
6    (d) Nothing in this amendatory Act of 1993 shall be
7construed to prevent the Illinois Department from collecting
8all amounts due under this Article pursuant to an assessment
9imposed before the effective date of this amendatory Act of
101993.
11    (e) Nothing in this amendatory Act of the 96th General
12Assembly shall be construed to prevent the Illinois Department
13from collecting all amounts due under this Code pursuant to an
14assessment, tax, fee, or penalty imposed before the effective
15date of this amendatory Act of the 96th General Assembly.
16(Source: P.A. 96-444, eff. 8-14-09; 96SB3088 Enrolled.)
 
17    (305 ILCS 5/5B-7)  (from Ch. 23, par. 5B-7)
18    Sec. 5B-7. Administration; enforcement provisions.
19    (a) To the extent practicable, the Illinois Department
20shall administer and enforce this Article and collect the
21assessments, interest, and penalty assessments imposed under
22this Article, using procedures employed in its administration
23of this Code generally and, as it deems appropriate, in a
24manner similar to that in which the Department of Revenue
25administers and collects the retailers' occupation tax under

 

 

SB1667- 20 -LRB097 09068 KTG 50057 b

1the Retailers' Occupation Tax Act ("ROTA"). Instead of
2certificates of registration, the Illinois Department shall
3establish and maintain a listing of all long-term care
4providers appearing in the licensing records of the Department
5of Public Health, which shall show each provider's name,
6principal place of business, and the name and address of each
7long-term care facility operated or maintained by the provider
8in this State. In addition, the following provisions of the
9Retailers' Occupation Tax Act are incorporated by reference
10into this Section, except that the Illinois Department and its
11Director (rather than the Department of Revenue and its
12Director) and every long-term care provider subject to
13assessment measured by licensed occupied bed days and to the
14return filing requirements of this Article (rather than persons
15subject to retailers' occupation tax measured by gross receipts
16from the sale of tangible personal property at retail and to
17the return filing requirements of ROTA) shall have the powers,
18duties, and rights specified in these ROTA provisions, as
19modified in this Section or by the Illinois Department in a
20manner consistent with this Article and except as manifestly
21inconsistent with the other provisions of this Article:
22        (1) ROTA, Section 4 (examination of return; notice of
23    correction; evidence; limitations; protest and hearing),
24    except that (i) the Illinois Department shall issue notices
25    of assessment liability (rather than notices of tax
26    liability as provided in ROTA, Section 4); (ii) in the case

 

 

SB1667- 21 -LRB097 09068 KTG 50057 b

1    of a fraudulent return or in the case of an extended period
2    agreed to by the Illinois Department and the long-term care
3    provider before the expiration of the limitation period, no
4    notice of assessment liability shall be issued more than 3
5    years after the later of the due date of the return
6    required by Section 5B-5 or the date the return (or an
7    amended return) was filed (rather within the period stated
8    in ROTA, Section 4); and (iii) the penalty provisions of
9    ROTA, Section 4 shall not apply.
10        (2) ROTA, Section 5 (failure to make return; failure to
11    pay assessment), except that the penalty and interest
12    provisions of ROTA, Section 5 shall not apply.
13        (3) ROTA, Section 5a (lien; attachment; termination;
14    notice; protest; review; release of lien; status of lien).
15        (4) ROTA, Section 5b (State lien notices; State lien
16    index; duties of recorder and registrar of titles).
17        (5) ROTA, Section 5c (liens; certificate of release).
18        (6) ROTA, Section 5d (Department not required to
19    furnish bond; claim to property attached or levied upon).
20        (7) ROTA, Section 5e (foreclosure on liens;
21    enforcement).
22        (8) ROTA, Section 5f (demand for payment; levy and sale
23    of property; limitation).
24        (9) ROTA, Section 5g (sale of property; redemption).
25        (10) ROTA, Section 5j (sales on transfers outside usual
26    course of business; report; payment of assessment; rights

 

 

SB1667- 22 -LRB097 09068 KTG 50057 b

1    and duties of purchaser; penalty).
2        (11) ROTA, Section 6 (erroneous payments; credit or
3    refund), provided that (i) the Illinois Department may only
4    apply an amount otherwise subject to credit or refund to a
5    liability arising under this Article; (ii) except in the
6    case of an extended period agreed to by the Illinois
7    Department and the long term care provider prior to the
8    expiration of this limitation period, a claim for credit or
9    refund must be filed no more than 3 years after the due
10    date of the return required by Section 5B-5 (rather than
11    the time limitation stated in ROTA, Section 6); and (iii)
12    credits or refunds shall not bear interest.
13        (12) ROTA, Section 6a (claims for credit or refund).
14        (13) ROTA, Section 6b (tentative determination of
15    claim; notice; hearing; review), provided that a long-term
16    care provider or its representative shall have 60 days
17    (rather than 20 days) within which to file a protest and
18    request for hearing in response to a tentative
19    determination of claim.
20        (14) ROTA, Section 6c (finality of tentative
21    determinations).
22        (15) ROTA, Section 8 (investigations and hearings).
23        (16) ROTA, Section 9 (witness; immunity).
24        (17) ROTA, Section 10 (issuance of subpoenas;
25    attendance of witnesses; production of books and records).
26        (18) ROTA, Section 11 (information confidential;

 

 

SB1667- 23 -LRB097 09068 KTG 50057 b

1    exceptions).
2        (19) ROTA, Section 12 (rules and regulations; hearing;
3    appeals), except that a long-term care provider shall not
4    be required to file a bond or be subject to a lien in lieu
5    thereof in order to seek court review under the
6    Administrative Review Law of a final assessment or revised
7    final assessment or the equivalent thereof issued by the
8    Illinois Department under this Article.
9    (b) In addition to any other remedy provided for and
10without sending a notice of assessment liability, the Illinois
11Department may collect an unpaid assessment by withholding, as
12payment of the assessment, reimbursements or other amounts
13otherwise payable by the Illinois Department to the provider.
14(Source: P.A. 87-861.)
 
15    (305 ILCS 5/Art. V-E rep.)
16    (305 ILCS 5/5E-5 rep.)
17    (305 ILCS 5/5E-10 rep.)
18    (305 ILCS 5/5E-15 rep.)
19    Section 10. If and only if Senate Bill 3088 of the 96th
20General Assembly becomes law, then the Illinois Public Aid Code
21is amended by repealing Article V-E.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law or on the effective date of Senate Bill 3088 of
24the 96th General Assembly, whichever is later.