Bill Text: IL HB2509 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB2509 Detail]

Download: Illinois-2015-HB2509-Introduced.html

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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
HB2509 LRB099 06144 RPS 26201 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Nursing Home Care Act is amended by changing
Sections 3-109, 3-117, 3-119, and 3-602 and by adding Sections
1-114.2 and 3-202.6 as follows:
(210 ILCS 45/1-114.2 new)
Sec. 1-114.2. Liability insurance. "Liability insurance"
means insurance on risks based upon neglect of a resident for
which a licensee is or may be responsible.
(210 ILCS 45/3-109) (from Ch. 111 1/2, par. 4153-109)
Sec. 3-109. Upon receipt and review of an application for a
license made under this Article and inspection of the applicant
facility under this Article, the Director shall issue a license
if he finds:
(1) that the individual applicant, or the corporation,
partnership or other entity if the applicant is not an
individual, is a person responsible and suitable to operate
or to direct or participate in the operation of a facility
by virtue of financial capacity, appropriate business or
professional experience, a record of compliance with
lawful orders of the Department and lack of revocation of a

HB2509 - 2 - LRB099 06144 RPS 26201 b
license during the previous 5 years;
(2) that the facility is under the supervision of an
administrator who is licensed, if required, under the
Nursing Home Administrators Licensing and Disciplinary
Act, as now or hereafter amended; and
(3) that the facility is covered by liability insurance
as required by this Act; and
(4) (3) that the facility is in substantial compliance
with this Act, and such other requirements for a license as
the Department by rule may establish under this Act.
(Source: P.A. 95-331, eff. 8-21-07.)
(210 ILCS 45/3-117) (from Ch. 111 1/2, par. 4153-117)
Sec. 3-117. An application for a license may be denied for
any of the following reasons:
(1) Failure to meet any of the minimum standards set
forth by this Act or by rules and regulations promulgated
by the Department under this Act.
(2) Conviction of the applicant, or if the applicant is
a firm, partnership or association, of any of its members,
or if a corporation, the conviction of the corporation or
any of its officers or stockholders, or of the person
designated to manage or supervise the facility, of a
felony, or of 2 or more misdemeanors involving moral
turpitude, during the previous 5 years as shown by a
certified copy of the record of the court of conviction.

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(3) Personnel insufficient in number or unqualified by
training or experience to properly care for the proposed
number and type of residents.
(4) Insufficient financial or other resources to
operate and conduct the facility in accordance with
standards promulgated by the Department under this Act,
including failure to have or maintain liability insurance
as required by this Act, and in accordance with contractual
obligations assumed by a recipient of a grant under the
Equity in Long-term Care Quality Act and the plan (if
applicable) submitted by a grantee for continuing and
increasing adherence to best practices in providing
high-quality nursing home care.
(5) Revocation of a facility license during the
previous 5 years, if such prior license was issued to the
individual applicant, a controlling owner or controlling
combination of owners of the applicant; or any affiliate of
the individual applicant or controlling owner of the
applicant and such individual applicant, controlling owner
of the applicant or affiliate of the applicant was a
controlling owner of the prior license; provided, however,
that the denial of an application for a license pursuant to
this subsection must be supported by evidence that such
prior revocation renders the applicant unqualified or
incapable of meeting or maintaining a facility in
accordance with the standards and rules promulgated by the

HB2509 - 4 - LRB099 06144 RPS 26201 b
Department under this Act.
(6) That the facility is not under the direct
supervision of a full-time administrator, as defined by
regulation, who is licensed, if required, under the Nursing
Home Administrators Licensing and Disciplinary Act.
(7) That the facility is in receivership and the
proposed licensee has not submitted a specific detailed
plan to bring the facility into compliance with the
requirements of this Act and with federal certification
requirements, if the facility is certified, and to keep the
facility in such compliance.
(Source: P.A. 95-331, eff. 8-21-07; 96-1372, eff. 7-29-10.)
(210 ILCS 45/3-119) (from Ch. 111 1/2, par. 4153-119)
Sec. 3-119. (a) The Department, after notice to the
applicant or licensee, may suspend, revoke or refuse to renew a
license in any case in which the Department finds any of the
following:
(1) There has been a substantial failure to comply with
this Act or the rules and regulations promulgated by the
Department under this Act. A substantial failure by a
facility shall include, but not be limited to, any of the
following:
(A) termination of Medicare or Medicaid
certification by the Centers for Medicare and Medicaid
Services; or

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(B) a failure by the facility to pay any fine
assessed under this Act after the Department has sent
to the facility at least 2 notices of assessment that
include a schedule of payments as determined by the
Department, taking into account extenuating
circumstances and financial hardships of the facility.
(2) Conviction of the licensee, or of the person
designated to manage or supervise the facility, of a
felony, or of 2 or more misdemeanors involving moral
turpitude, during the previous 5 years as shown by a
certified copy of the record of the court of conviction.
(3) Personnel is insufficient in number or unqualified
by training or experience to properly care for the number
and type of residents served by the facility.
(4) Financial or other resources are insufficient to
conduct and operate the facility in accordance with
standards promulgated by the Department under this Act,
including that the facility failed to maintain liability
insurance coverage as required by this Act at some time
during the term of its license.
(5) The facility is not under the direct supervision of
a full-time administrator, as defined by regulation, who is
licensed, if required, under the Nursing Home
Administrators Licensing and Disciplinary Act.
(6) The facility has committed 2 Type "AA" violations
within a 2-year period.

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(b) Notice under this Section shall include a clear and
concise statement of the violations on which the nonrenewal or
revocation is based, the statute or rule violated and notice of
the opportunity for a hearing under Section 3-703.
(c) If a facility desires to contest the nonrenewal or
revocation of a license, the facility shall, within 10 days
after receipt of notice under subsection (b) of this Section,
notify the Department in writing of its request for a hearing
under Section 3-703. Upon receipt of the request the Department
shall send notice to the facility and hold a hearing as
provided under Section 3-703.
(d) The effective date of nonrenewal or revocation of a
license by the Department shall be any of the following:
(1) Until otherwise ordered by the circuit court,
revocation is effective on the date set by the Department
in the notice of revocation, or upon final action after
hearing under Section 3-703, whichever is later.
(2) Until otherwise ordered by the circuit court,
nonrenewal is effective on the date of expiration of any
existing license, or upon final action after hearing under
Section 3-703, whichever is later; however, a license shall
not be deemed to have expired if the Department fails to
timely respond to a timely request for renewal under this
Act or for a hearing to contest nonrenewal under paragraph
(c).
(3) The Department may extend the effective date of

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license revocation or expiration in any case in order to
permit orderly removal and relocation of residents.
The Department may refuse to issue or may suspend the
license of any person who fails to file a return, or to pay the
tax, penalty or interest shown in a filed return, or to pay any
final assessment of tax, penalty or interest, as required by
any tax Act administered by the Illinois Department of Revenue,
until such time as the requirements of any such tax Act are
satisfied.
(Source: P.A. 95-331, eff. 8-21-07; 96-1372, eff. 7-29-10.)
(210 ILCS 45/3-202.6 new)
Sec. 3-202.6. Liability insurance coverage required. No
person may establish, operate, maintain, offer, or advertise a
facility within this State without providing to the Department
proof of liability insurance coverage in an amount not less
than $1,000,000 per occurrence. This requirement may not be
waived. Failure to maintain such 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.
(210 ILCS 45/3-602) (from Ch. 111 1/2, par. 4153-602)
Sec. 3-602. The licensee shall pay 3 times the actual
damages, and costs and attorney's fees, to a facility resident

HB2509 - 8 - LRB099 06144 RPS 26201 b
whose rights, as specified in Part 1 of Article II of this Act,
are violated.
(Source: P.A. 89-197, eff. 7-21-95.)