Full Text of HB2509 99th General Assembly
HB2509 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB2509 Introduced 2/18/2015, by Rep. Kelly M. Cassidy SYNOPSIS AS INTRODUCED: |
| 210 ILCS 45/1-114.2 new | | 210 ILCS 45/3-109 | from Ch. 111 1/2, par. 4153-109 | 210 ILCS 45/3-117 | from Ch. 111 1/2, par. 4153-117 | 210 ILCS 45/3-119 | from Ch. 111 1/2, par. 4153-119 | 210 ILCS 45/3-202.6 new | | 210 ILCS 45/3-602 | from Ch. 111 1/2, par. 4153-602 |
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Amends the Nursing Home Care Act. Prohibits a person from establishing, operating, maintaining, offering, or advertising a facility within this State without providing to the Department of Public Health proof of liability insurance coverage in an amount not less than $1,000,000 per occurrence. Defines "liability insurance". Authorizes the Department to suspend, revoke, or refuse to issue or renew a license if the facility fails to have or maintain liability insurance coverage. Provides that the failure to maintain liability insurance coverage during the term of a facility's license shall be a separate "Type B" violation for each resident of the facility for each month, or part of a month, in which the facility did not have the minimum required liability insurance. Provides that a licensee shall pay 3 times the actual damages (instead of paying the actual damages), and costs and attorney's fees, to a facility resident whose rights, as specified in certain provisions of the Act, are violated.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Nursing Home Care Act is amended by changing | 5 | | Sections 3-109, 3-117, 3-119, and 3-602 and by adding Sections | 6 | | 1-114.2 and 3-202.6 as follows: | 7 | | (210 ILCS 45/1-114.2 new) | 8 | | Sec. 1-114.2. Liability insurance. "Liability insurance" | 9 | | means insurance on risks based upon neglect of a resident for | 10 | | which a licensee is or may be responsible.
| 11 | | (210 ILCS 45/3-109) (from Ch. 111 1/2, par. 4153-109)
| 12 | | Sec. 3-109. Upon receipt and review of an application for a | 13 | | license
made under this Article and inspection of the applicant | 14 | | facility under
this Article, the Director shall issue a license | 15 | | if he finds:
| 16 | | (1) that the individual applicant, or the corporation, | 17 | | partnership
or other entity if the applicant is not an | 18 | | individual, is a person
responsible and suitable to operate | 19 | | or to direct or participate in the
operation of a facility | 20 | | by virtue of financial capacity, appropriate
business or | 21 | | professional experience, a record of compliance with | 22 | | lawful
orders of the Department and lack of revocation of a |
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| 1 | | license during the
previous 5 years;
| 2 | | (2) that the facility is under the supervision of an | 3 | | administrator
who is licensed, if required, under the | 4 | | Nursing Home Administrators Licensing and Disciplinary | 5 | | Act,
as now or hereafter amended; and
| 6 | | (3) that the facility is covered by liability insurance | 7 | | as required by this Act; and | 8 | | (4) (3) that the facility is in substantial compliance | 9 | | with this Act,
and such other requirements for a license as | 10 | | the Department by rule may
establish under this Act.
| 11 | | (Source: P.A. 95-331, eff. 8-21-07.)
| 12 | | (210 ILCS 45/3-117) (from Ch. 111 1/2, par. 4153-117) | 13 | | Sec. 3-117. An application for a license may be denied for | 14 | | any of the
following reasons: | 15 | | (1) Failure to meet any of the minimum standards set | 16 | | forth by this
Act or by rules and regulations promulgated | 17 | | by the Department under this Act.
| 18 | | (2) Conviction of the applicant, or if the applicant is | 19 | | a firm,
partnership or association, of any of its members, | 20 | | or if a corporation,
the conviction of the corporation or | 21 | | any of its officers or
stockholders, or of the person | 22 | | designated to manage or supervise the
facility, of a | 23 | | felony, or of 2 or more misdemeanors involving moral
| 24 | | turpitude, during the previous 5 years as shown by a | 25 | | certified copy
of the record of the court of conviction. |
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| 1 | | (3) Personnel insufficient in number or unqualified by | 2 | | training or
experience to properly care for the proposed | 3 | | number and type of residents. | 4 | | (4) Insufficient financial or other resources to | 5 | | operate and conduct
the facility in accordance with | 6 | | standards promulgated by the Department
under this Act , | 7 | | including failure to have or maintain liability insurance | 8 | | as required by this Act, and in accordance with contractual | 9 | | obligations assumed by a recipient of a grant under the | 10 | | Equity in Long-term Care Quality Act and the plan (if | 11 | | applicable) submitted by a grantee for continuing and | 12 | | increasing adherence to best practices in providing | 13 | | high-quality nursing home care. | 14 | | (5) Revocation of a facility license during the | 15 | | previous 5 years, if
such prior license was issued to the | 16 | | individual applicant, a controlling
owner or controlling | 17 | | combination of owners of the applicant; or any
affiliate of | 18 | | the individual applicant or controlling owner of the | 19 | | applicant
and such individual applicant, controlling owner | 20 | | of the applicant or
affiliate of the applicant was a | 21 | | controlling owner of the prior license;
provided, however, | 22 | | that the denial of an application for a license pursuant
to | 23 | | this subsection must be supported by evidence that such | 24 | | prior revocation
renders the applicant unqualified or | 25 | | incapable of meeting or maintaining
a facility in | 26 | | accordance with the standards and rules promulgated by the
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| 1 | | Department under this Act. | 2 | | (6) That the facility is not under the direct | 3 | | supervision of a full-time
administrator, as defined by | 4 | | regulation, who is licensed, if required,
under the Nursing | 5 | | Home Administrators Licensing and Disciplinary Act. | 6 | | (7) That the facility is in receivership and the | 7 | | proposed licensee has not submitted a specific detailed | 8 | | plan to bring the facility into compliance with the | 9 | | requirements of this Act and with federal certification | 10 | | requirements, if the facility is certified, and to keep the | 11 | | facility in such compliance. | 12 | | (Source: P.A. 95-331, eff. 8-21-07; 96-1372, eff. 7-29-10.)
| 13 | | (210 ILCS 45/3-119) (from Ch. 111 1/2, par. 4153-119)
| 14 | | Sec. 3-119. (a) The Department, after notice to the | 15 | | applicant or
licensee, may suspend, revoke or refuse to renew a | 16 | | license in any case
in which the Department finds any of the | 17 | | following:
| 18 | | (1) There has been a substantial failure to comply with | 19 | | this Act or the
rules and regulations promulgated by the | 20 | | Department under this Act. A substantial failure by a | 21 | | facility shall include, but not be limited to, any of the | 22 | | following: | 23 | | (A) termination of Medicare or Medicaid | 24 | | certification by the Centers for Medicare and Medicaid | 25 | | Services; or |
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| 1 | | (B) a failure by the facility to pay any fine | 2 | | assessed under this Act after the Department has sent | 3 | | to the facility at least 2 notices of assessment that | 4 | | include a schedule of payments as determined by the | 5 | | Department, taking into account extenuating | 6 | | circumstances and financial hardships of the facility.
| 7 | | (2) Conviction of the licensee, or of the person | 8 | | designated to manage
or supervise the facility, of a | 9 | | felony, or of 2 or more misdemeanors
involving moral | 10 | | turpitude, during the previous 5 years as shown by a
| 11 | | certified copy of the record of the court of conviction.
| 12 | | (3) Personnel is insufficient in number or unqualified | 13 | | by
training or experience to properly care for the number | 14 | | and
type of residents served by the facility.
| 15 | | (4) Financial or other resources are insufficient to | 16 | | conduct
and operate the facility in accordance with | 17 | | standards promulgated by the
Department under this Act , | 18 | | including that the facility failed to maintain liability | 19 | | insurance coverage as required by this Act at some time | 20 | | during the term of its license .
| 21 | | (5) The facility is not under the direct supervision of | 22 | | a full-time
administrator, as defined by regulation, who is | 23 | | licensed, if required,
under the Nursing Home | 24 | | Administrators Licensing and Disciplinary Act.
| 25 | | (6) The facility has committed 2 Type "AA" violations | 26 | | within a 2-year period. |
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| 1 | | (b) Notice under this Section shall include a clear and | 2 | | concise
statement of the violations on which the nonrenewal or | 3 | | revocation is
based, the statute or rule violated and notice of | 4 | | the opportunity for a
hearing under Section 3-703.
| 5 | | (c) If a facility desires to contest the nonrenewal or | 6 | | revocation of
a license, the facility shall, within 10 days | 7 | | after receipt of notice
under subsection (b) of this Section, | 8 | | notify the Department in writing
of its request for a hearing | 9 | | under Section 3-703. Upon receipt of the
request the Department | 10 | | shall send notice to the facility and hold a
hearing as | 11 | | provided under Section 3-703.
| 12 | | (d) The effective date of nonrenewal or revocation of a | 13 | | license by
the Department shall be any of the following:
| 14 | | (1) Until otherwise ordered by the circuit court, | 15 | | revocation is
effective on the date set by the Department | 16 | | in the notice of revocation,
or upon final action after | 17 | | hearing under Section 3-703, whichever is later.
| 18 | | (2) Until otherwise ordered by the circuit court, | 19 | | nonrenewal is
effective on the date of expiration of any | 20 | | existing license, or upon
final action after hearing under | 21 | | Section 3-703, whichever is later; however,
a license shall | 22 | | not be deemed to have expired if the Department fails to
| 23 | | timely respond to a timely request for renewal under this | 24 | | Act or for a hearing
to contest nonrenewal under paragraph | 25 | | (c).
| 26 | | (3) The Department may extend the effective date of |
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| 1 | | license
revocation or expiration in any case in order to | 2 | | permit orderly removal
and relocation of residents.
| 3 | | The Department may refuse to issue or may suspend the
| 4 | | license of any person who fails to file a return, or to pay the | 5 | | tax,
penalty or interest shown in a filed return, or to pay any | 6 | | final assessment
of tax, penalty or interest, as required by | 7 | | any tax Act administered by the
Illinois Department of Revenue, | 8 | | until such time as the requirements of any
such tax Act are | 9 | | satisfied.
| 10 | | (Source: P.A. 95-331, eff. 8-21-07; 96-1372, eff. 7-29-10.)
| 11 | | (210 ILCS 45/3-202.6 new) | 12 | | Sec. 3-202.6. Liability insurance coverage required. No | 13 | | person may establish, operate, maintain, offer, or advertise a | 14 | | facility within this State without providing to the Department | 15 | | proof of liability insurance coverage in an amount not less | 16 | | than $1,000,000 per occurrence. This requirement may not be | 17 | | waived. Failure to maintain such liability insurance coverage | 18 | | during the term of a facility's license shall be a separate | 19 | | Type "B" violation for each resident of the facility for each | 20 | | month, or part of a month, in which the facility did not have | 21 | | the minimum required liability insurance.
| 22 | | (210 ILCS 45/3-602) (from Ch. 111 1/2, par. 4153-602)
| 23 | | Sec. 3-602.
The licensee shall pay 3 times the actual | 24 | | damages , and costs and
attorney's fees , to a facility
resident
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| 1 | | whose rights, as specified in Part 1 of Article II of this Act, | 2 | | are violated.
| 3 | | (Source: P.A. 89-197, eff. 7-21-95.)
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