99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2509
 
Introduced , 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

 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.



LRB099 06144 RPS 26201 b


FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


HB2509LRB099 06144 RPS 26201 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 Nursing Home Care Act is amended by changing 
5Sections 3-109, 3-117, 3-119, and 3-602 and by adding Sections 
61-114.2 and 3-202.6 as follows:

7 (210 ILCS 45/1-114.2 new)
8 Sec. 1-114.2. Liability insurance. "Liability insurance" 
9means insurance on risks based upon neglect of a resident for 
10which 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 
13license
made under this Article and inspection of the applicant 
14facility under
this Article, the Director shall issue a license 
15if 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 
 
 
HB2509- 2 -LRB099 06144 RPS 26201 b


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 
14any 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.
 
 
HB2509- 3 -LRB099 06144 RPS 26201 b


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

 
 
HB2509- 4 -LRB099 06144 RPS 26201 b


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 
15applicant or
licensee, may suspend, revoke or refuse to renew a 
16license in any case
in which the Department finds any of the 
17following:

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
 
 
HB2509- 5 -LRB099 06144 RPS 26201 b


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. 
 
 
HB2509- 6 -LRB099 06144 RPS 26201 b


1 (b) Notice under this Section shall include a clear and 
2concise
statement of the violations on which the nonrenewal or 
3revocation is
based, the statute or rule violated and notice of 
4the opportunity for a
hearing under Section 3-703.

5 (c) If a facility desires to contest the nonrenewal or 
6revocation of
a license, the facility shall, within 10 days 
7after receipt of notice
under subsection (b) of this Section, 
8notify the Department in writing
of its request for a hearing 
9under Section 3-703. Upon receipt of the
request the Department 
10shall send notice to the facility and hold a
hearing as 
11provided under Section 3-703.

12 (d) The effective date of nonrenewal or revocation of a 
13license 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 
 
 
HB2509- 7 -LRB099 06144 RPS 26201 b


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

4license of any person who fails to file a return, or to pay the 
5tax,
penalty or interest shown in a filed return, or to pay any 
6final assessment
of tax, penalty or interest, as required by 
7any tax Act administered by the
Illinois Department of Revenue, 
8until such time as the requirements of any
such tax Act are 
9satisfied.

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 
13person may establish, operate, maintain, offer, or advertise a 
14facility within this State without providing to the Department 
15proof of liability insurance coverage in an amount not less 
16than $1,000,000 per occurrence. This requirement may not be 
17waived. Failure to maintain such liability insurance coverage 
18during the term of a facility's license shall be a separate 
19Type "B" violation for each resident of the facility for each 
20month, or part of a month, in which the facility did not have 
21the 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 
24damages, and costs and
attorney's fees, to a facility
resident

 
 
HB2509- 8 -LRB099 06144 RPS 26201 b


1whose rights, as specified in Part 1 of Article II of this Act, 
2are violated.

3(Source: P.A. 89-197, eff. 7-21-95.)