Bill Text: IL HB0240 | 2021-2022 | 102nd General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Hospital Licensing Act. Provides that, on and after January 1, 2023, "hospital" includes rural emergency hospitals, as defined under specified federal provisions. Allows the Department of Public Health to adopt emergency rules and makes a conforming change in the Illinois Administrative Procedure Act. Amends the Illinois Health Facilities Planning Act. Provides that any party that has previously received approval by the Health Facilities and Services Review Board to re-establish a previously discontinued general acute care hospital in accordance with a specified provision of the Act shall have the automatic right to extend the project completion date listed by the party in the party's certificate of exemption application by providing notice to the Board of the new project completion date. Amends the Nursing Home Care Act. Provides that beginning January 1, 2025, monetary penalties shall be imposed on facilities subject to the Act for non-compliance with certain staffing ratio requirements. Amends the Behavior Analyst Licensing Act. Provides that a person qualifies to be licensed as a behavior analyst or an assistant behavior analyst if that person is a graduate of a graduate level program in the field of behavior analysis or a related field with an equivalent course of study in behavior analysis (rather than just the field of behavior analysis). Provides that notwithstanding the provisions providing that the Act does not prohibit an individual from implementing a behavior analytic treatment plan under the extended authority, direction, and supervision of a licensed behavior analyst or licensed assistant behavior analyst, no business organization shall provide, attempt to provide, or offer to provide behavior analysis services unless every individual who holds an ownership interest holds a currently valid licensed issued under the Act. Amends the Podiatric Medical Practice Act of 1987. Provides a one-time fee waiver for Fiscal Year 2023. Provides that no individual may benefit from such waiver more than once. Provides that if an individual has already paid a fee for Fiscal Year 2023, then the Department of Financial and Professional Regulation shall apply the moneys to the next required fee. Amends the Specialized Mental Health Rehabilitation Act of 2013. Excludes from the definition of "consumer" individuals who are subject to a court order requiring placement in secure inpatient care in the custody of the Department of Human Services. Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that by December 31, 2022, the Department Healthcare and Family Services shall obtain appropriate documentation from Qualifying Ground Ambulance Service Providers to ascertain an accurate count of the number of licensed vehicles available to serve enrollees in the State's medical assistance programs. Provides that by February 28, 2023, Qualifying Ground Ambulance Service Providers shall be initially notified of their eligible award. Provides that after March 31, 2024, any unobligated funds shall be reallocated pro rata to the remaining Qualifying Ground Ambulance Service Providers that are able to prove up eligible expenses in excess of their initial award amount until all such appropriated funds are exhausted. Makes changes in a provision on funds awarded for a COVID-19 response support initiative. Makes changes concerning the Medicaid Access Adjustment for nursing facilities. Amends the Long-Term Care Provider Funding Article of the Illinois Public Aid Code. Provides that, subject to federal approval, a $7 occupied bed day assessment shall be imposed on any nursing facility owned and operated by a county government. Amends the Rebuild Illinois Mental Health Workforce Act. In provisions concerning Medicaid funding for community mental health services, provides that, subject to federal approval, a one-time directed payment must be made in calendar year 2023 for community mental health services provided by community mental health providers. Requires the one-time directed payment to be for an amount appropriated for these purposes and to be for services for Integrated Assessment and Treatment Planning and other intensive services, including, but not limited to, services for Mobile Crisis Response, crisis intervention, medication monitoring, and group services. Provides that no base Medicaid rate payment or any other payment for the provision of Medicaid community mental health services in place on January 1, 2023 shall be diminished or changed to make the required reimbursement changes required under the Act. Amends the Code of Criminal Procedure of 1963. Contains provisions concerning court orders for inpatient treatment for defendants with a mental disability. Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2023-01-18 - Public Act . . . . . . . . . 102-1118 [HB0240 Detail]

Download: Illinois-2021-HB0240-Engrossed.html

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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Sections 1510 and 1575 as follows:
(215 ILCS 5/1510)
Sec. 1510. Definitions. In this Article:
"Adjusting a claim for loss or damage covered by an
insurance contract" means negotiating values, damages, or
depreciation or applying the loss circumstances to insurance
policy provisions.
"Adjusting insurance claims" means representing an insured
with an insurer for compensation, and while representing that
insured either negotiating values, damages, or depreciation,
or applying the loss circumstances to insurance policy
provisions.
"Business entity" means a corporation, association,
partnership, limited liability company, limited liability
partnership, or other legal entity.
"Compensation" includes, but is not limited to, the
following:
(1) any assignment of insurance proceeds or a
percentage of the insurance proceeds;

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(2) any agreement to make repairs for the amount of
the insurance proceeds payable; or
(3) assertion of any lien against insurance proceeds
payable.
"Department" means the Department of Insurance.
"Director" means the Director of Insurance.
"Fingerprints" means an impression of the lines on the
finger taken for the purpose of identification. The impression
may be electronic or in ink converted to electronic format.
"Home state" means the District of Columbia and any state
or territory of the United States where the public adjuster's
principal place of residence or principal place of business is
located. If neither the state in which the public adjuster
maintains the principal place of residence nor the state in
which the public adjuster maintains the principal place of
business has a substantially similar law governing public
adjusters, the public adjuster may declare another state in
which it becomes licensed and acts as a public adjuster to be
the home state.
"Individual" means a natural person.
"Person" means an individual or a business entity.
"Public adjuster" means any person who, for compensation
or any other thing of value on behalf of the insured:
(i) acts, or aids, or represents the insured solely in
relation to first party claims arising under insurance
contracts that insure the real or personal property of the

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insured, on behalf of an insured in adjusting an insurance
a claim for loss or damage covered by an insurance
contract;
(ii) advertises for employment as a public adjuster of
insurance claims or solicits business or represents
himself or herself to the public as a public adjuster of
first party insurance claims for losses or damages arising
out of policies of insurance that insure real or personal
property; or
(iii) directly or indirectly solicits business,
investigates or adjusts losses, or advises an insured
about first party claims for losses or damages arising out
of policies of insurance that insure real or personal
property for another person engaged in the business of
adjusting losses or damages covered by an insurance policy
for the insured.
"Uniform individual application" means the current version
of the National Association of Directors (NAIC) Uniform
Individual Application for resident and nonresident
individuals.
"Uniform business entity application" means the current
version of the National Association of Insurance Commissioners
(NAIC) Uniform Business Entity Application for resident and
nonresident business entities.
(Source: P.A. 96-1332, eff. 1-1-11.)

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(215 ILCS 5/1575)
Sec. 1575. Contract between public adjuster and insured.
(a) Public adjusters shall ensure that all contracts for
their services are in writing and contain the following terms:
(1) legible full name of the adjuster signing the
contract, as specified in Department records;
(2) permanent home state business address, email
address, and phone number;
(3) license number;
(4) title of "Public Adjuster Contract";
(5) the insured's full name, street address, insurance
company name, and policy number, if known or upon
notification;
(6) a description of the loss and its location, if
applicable;
(7) description of services to be provided to the
insured;
(8) signatures of the public adjuster and the insured;
(9) date and time the contract was signed by the
public adjuster and date and time the contract was signed
by the insured;
(10) attestation language stating that the public
adjuster is fully bonded pursuant to State law; and
(11) full salary, fee, commission, compensation, or
other considerations the public adjuster is to receive for
services.

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(b) The contract may specify that the public adjuster
shall be named as a co-payee on an insurer's payment of a
claim.
(1) If the compensation is based on a share of the
insurance settlement, the exact percentage shall be
specified.
(2) Initial expenses to be reimbursed to the public
adjuster from the proceeds of the claim payment shall be
specified by type, with dollar estimates set forth in the
contract and with any additional expenses first approved
by the insured.
(3) Compensation provisions in a public adjuster
contract shall not be redacted in any copy of the contract
provided to the Director.
(c) If the insurer, not later than 5 business days after
the date on which the loss is reported to the insurer, either
pays or commits in writing to pay to the insured the policy
limit of the insurance policy, the public adjuster shall:
(1) not receive a commission consisting of a
percentage of the total amount paid by an insurer to
resolve a claim;
(2) inform the insured that loss recovery amount might
not be increased by insurer; and
(3) be entitled only to reasonable compensation from
the insured for services provided by the public adjuster
on behalf of the insured, based on the time spent on a

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claim and expenses incurred by the public adjuster, until
the claim is paid or the insured receives a written
commitment to pay from the insurer.
(d) A public adjuster shall provide the insured a written
disclosure concerning any direct or indirect financial
interest that the public adjuster has with any other party who
is involved in any aspect of the claim, other than the salary,
fee, commission, or other consideration established in the
written contract with the insured, including, but not limited
to, any ownership of or any compensation expected to be
received from, any construction firm, salvage firm, building
appraisal firm, board-up company, or any other firm that
provides estimates for work, or that performs any work, in
conjunction with damages caused by the insured loss on which
the public adjuster is engaged. The word "firm" shall include
any corporation, partnership, association, joint-stock
company, or person.
(e) A public adjuster contract may not contain any
contract term that:
(1) allows the public adjuster's percentage fee to be
collected when money is due from an insurance company, but
not paid, or that allows a public adjuster to collect the
entire fee from the first check issued by an insurance
company, rather than as a percentage of each check issued
by an insurance company;
(2) requires the insured to authorize an insurance

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company to issue a check only in the name of the public
adjuster;
(3) precludes a public adjuster or an insured from
pursuing civil remedies;
(4) includes any hold harmless agreement that provides
indemnification to the public adjuster by the insured for
liability resulting from the public adjuster's negligence;
or
(5) provides power of attorney by which the public
adjuster can act in the place and instead of the insured.
(f) The following provisions apply to a contract between a
public adjuster and an insured:
(1) Prior to the signing of the contract, the public
adjuster shall provide the insured with a separate signed
and dated disclosure document regarding the claim process
that states:
"Property insurance policies obligate the insured to
present a claim to his or her insurance company for
consideration. There are 3 types of adjusters that could
be involved in that process. The definitions of the 3
types are as follows:
(A) "Company adjuster" means the insurance
adjusters who are employees of an insurance company.
They represent the interest of the insurance company
and are paid by the insurance company. They will not
charge you a fee.

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(B) "Independent adjuster" means the insurance
adjusters who are hired on a contract basis by an
insurance company to represent the insurance company's
interest in the settlement of the claim. They are paid
by your insurance company. They will not charge you a
fee.
(C) "Public adjuster" means the insurance
adjusters who do not work for any insurance company.
They represent work for the insured to assist in the
preparation, presentation, and settlement of the
claim. The insured hires them by signing a contract
agreeing to pay them a fee or commission based on a
percentage of the settlement, or other method of
compensation.".
(2) The insured is not required to hire a public
adjuster to help the insured meet his or her obligations
under the policy, but has the right to do so.
(3) The public adjuster is not a representative or
employee of the insurer.
(4) The salary, fee, commission, or other
consideration is the obligation of the insured, not the
insurer, except when rights have been assigned to the
public adjuster by the insured.
(g) The contracts shall be executed in duplicate to
provide an original contract to the public adjuster, and an
original contract to the insured. The public adjuster's

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original contract shall be available at all times for
inspection without notice by the Director.
(h) The public adjuster shall provide the insurer, or its
authorized representative for receiving notice of loss or
damage, with an exact copy of the contract with by the insured
by email after execution of the contract, authorizing the
public adjuster to represent the insured's interest.
(i) The public adjuster shall give the insured written
notice of the insured's rights as a consumer under the law of
this State.
(j) A public adjuster shall not provide services, other
than emergency services, until a written contract with the
insured has been executed, on a form filed with and approved by
the Director, and an exact copy of the contract has been
provided to the insurer, or its authorized representative for
receiving notice of loss or damage. Except as provided in the
Fire Damage Representation Agreement Act, at At the option of
the insured, any such contract shall be voidable for 5
business days after the copy has been received by the insurer
execution. The insured may void the contract by notifying the
public adjuster in writing by (i) registered or certified
mail, return receipt requested, to the address shown on the
contract, or (ii) personally serving the notice on the public
adjuster, or (iii) sending an email to the email address shown
on the contract.
(k) If the insured exercises the right to rescind the

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contract, anything of value given by the insured under the
contract will be returned to the insured within 15 business
days following the receipt by the public adjuster of the
cancellation notice.
(Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.)
(215 ILCS 5/Art. XXXI.75 rep.)
Section 10. The Illinois Insurance Code is amended by
repealing Article XXXI 3/4.
Section 99. Effective date. This Act takes effect upon
becoming law.