Rep. Denyse Wang Stoneback

Filed: 2/15/2022

 

 


 

 


 
10200HB4662ham001LRB102 23617 CPF 35891 a

1
AMENDMENT TO HOUSE BILL 4662

2    AMENDMENT NO. ______. Amend House Bill 4662 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Nursing Home Care Act is amended by adding
5Section 3-305.10 as follows:
 
6    (210 ILCS 45/3-305.10 new)
7    Sec. 3-305.10. Rental data disclosure; facility cost
8report.
9    (a) In this Section:
10    "Real estate partnership" means any combination of
11domestic or foreign corporations, limited liability companies,
12limited liability partnerships, subsidiaries, management
13companies, general partnerships, sole proprietorships, limited
14liability partnership, or any other legal entity recognized
15under Illinois law that hold real estate together.
16    "Related business entity" means one of 2 or more entities

 

 

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1where:
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;
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        (3) the entities share a real estate partnership; or
9        (4) the owner or operator of either entity has a
10    familial relationship or is a related party to a person
11    who is an owner or operator of another entity.
12    "Related party" includes a person's parent, step-parent,
13child, spouse, sibling, cousin, or other family member.
14    (b) A for-profit facility licensed under this Act shall
15disclose, with each cost report filed with the Department of
16Healthcare and Family Services, data regarding the lease or
17rental of the facility by a related business entity that owns
18the facility to a business operating the facility in any cost
19report submitted by the facility to the State. The data shall
20include the following:
21        (1) Any new company created by an investor or a
22    related party of an investor in the facility to hold a real
23    estate asset of the facility, including the value of any
24    building on the real estate, the value of the real
25    property itself, and the value of the company itself.
26        (2) Information regarding the rental or provision of

 

 

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1    ventilators, pharmaceutical supplies, ambulances,
2    management and professional services, or payroll services
3    to any facility that is leased or rented by the facility's
4    property owner, business owner, or a related party of a
5    property owner or business owner. This information
6    includes, but is not limited to, the following:
7            (A) General services, such as dietary,
8        housekeeping, laundry, or maintenance services.
9            (B) Health care and program services, such as the
10        facility's medical director, nursing and medical
11        records, therapy, activities, certified nursing
12        assistant training, program transportation, and
13        special services.
14            (C) General administration services, such as
15        professional services, payroll services, clerical and
16        general office services, data processing, in-service
17        training and education, staff and resident
18        transportation, consulting services, project manager
19        services, and associated services.
20            (D) Capital expenses and services, such as
21        facility rent, leases, grounds, equipment, supplies,
22        and vehicles.
23            (E) Ancillary expenses.
24            (F) Contractual services, such as lobbying
25        services.
26        (3) Detailed information on any declaration of

 

 

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1    bankruptcy, as well as any sale of any privately or
2    publicly held real estate to a real estate investor,
3    investment trust, or private equity firm. This information
4    includes, but is not limited to, the following:
5            (A) Any required filings by a board of trustees
6        under any other law and disclosure of the names of the
7        president, leadership board, and members of the
8        corporation, limited liability company, limited
9        liability partnership, subsidiary, management company,
10        general partnership, sole proprietorship, limited
11        liability partnership, or other legal entity
12        recognized under any State or federal law or rule.
13            (B) Documentation that includes, but is not
14        limited to, annual filings with the Secretary of State
15        and any relevant federal filings.
16            (C) Identification of entities that have either a
17        significant ownership interest, meaning greater than
18        5%, in the facility or that play an important role in
19        the facility's management, financing, or operation.
20        (4) Details of any private equity backing of the
21    facility.
22        (5) All income and expenses related to the business
23    entity in question, from gross and net revenues to gross
24    and net expenses, including, but not limited to, any
25    expenses paid to management companies regarding the real
26    property.

 

 

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1        (6) In a form that protects the privacy rights of
2    residents, the facility's spending relating to Medicaid
3    and Medicare and the amounts of State and federal funds
4    received or spent by the facility.
5    (c) The disclosure required under subsection (b) shall be
6filed with the Department of Healthcare and Family Services'
7Bureau of Health Finance within 90 days after the end of each
8fiscal year.
9    (d) This Section only applies to a facility that is leased
10or rented by its owner to a related party of the owner.".