Bill Text: IL HB4276 | 2023-2024 | 103rd General Assembly | Engrossed

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

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Bill Title: Reinserts the provisions of House Amendment No. 1 with the following changes. Clarifies that the pre-sale disclosure requirements apply only to life care contracts that are subject to refund. Provides that, upon request, current residents, former residents awaiting refunds, and the estates of former residents awaiting refunds shall be provided with the most recent entry fee refund disclosures. Provides that, if a payee for an entry fee refund cannot be determined, for purposes of calculating the data required in the pre-sale disclosure, a refund shall be considered complete when a new resident occupies the living unit.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-0812 [HB4276 Detail]

Download: Illinois-2023-HB4276-Engrossed.html

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HB4276 Engrossed LRB103 34669 RPS 64512 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Life Care Facilities Act is amended by
adding Sections 5.1 and 5.2 as follows:
(210 ILCS 40/5.1 new)
Sec. 5.1. Pre-sale disclosures.
(a) Prior to the execution of a refundable life care
contract and the transfer of any money or other property to a
provider or escrow agent, the provider shall deliver to the
consumer a pre-sale disclosure printed on paper. The pre-sale
disclosure shall be signed by the consumer prior to executing
the life care contract. The pre-sale disclosure shall include:
(1) the caption, "ENTRY FEE REFUNDS: CONSUMER NOTICE",
in at least 28-point font and the remaining portion in at
least 12-point font;
(2) the caption, "The timing of refunds for past
residents may not be indicative of your refund experience.
Your ability to collect on the full amount of the
calculated refund may be modified or nullified pending
market conditions, any future sale of this organization,
or in the event of bankruptcy. Current residents, former
residents awaiting refunds, and the estates of former

HB4276 Engrossed - 2 - LRB103 34669 RPS 64512 b
residents awaiting refunds shall be provided with the most
recent entry fee refund data disclosure upon request.";
(3) for refunds returned by the provider in the most
recently completed calendar year:
(A) the average number of months passed before the
refund of an entry fee by the provider; and
(B) the median number of months passed before the
refund of an entry fee by the provider;
(4) the percentage of entry fee contracts awaiting
refunds from the provider with wait times exceeding 24
months as of the end of the most recently completed
calendar year;
(5) the percentage of entry fee contracts awaiting
refunds from the provider with wait times exceeding 36
months as of the end of the most recently completed
calendar year;
(6) the percentage of entry fee contracts awaiting
refunds from the provider with wait times exceeding 60
months as of the end of the most recently completed
calendar year;
(7) the number of entry fee contracts awaiting refunds
from the provider as of the last day of the most recently
completed calendar year; and
(8) the number of entry fee refunds returned by the
provider in the most recently completed calendar year.
(b) Pre-sale disclosures may include additional data by

HB4276 Engrossed - 3 - LRB103 34669 RPS 64512 b
calendar year.
(c) If a payee for an entry fee refund cannot be
determined, for purposes of calculating the data in subsection
(a), a refund shall be considered complete when a new resident
occupies the specified living unit.
(d) The most current pre-sale disclosure data detailed in
subsection (a) shall be made available, upon request, to
current residents that have refundable entry fee contracts,
former residents who have not yet received refunds for their
refundable entry fees, and the estates of former residents who
have not yet received refunds for their refundable entry fees.
(210 ILCS 40/5.2 new)
Sec. 5.2. Living unit reappropriation. If an unoccupied
living unit is contemplated for use for a purpose other than as
a living unit, including, but not limited to, an exam room or a
storage room, and if there exist beneficiaries awaiting an
entry fee refund, the beneficiaries of the entry fee refund
must provide a signed acknowledgment of, and agreement to, the
reappropriation that may be in effect up to a specific date.
The reappropriation acknowledgment shall include:
(1) the caption, "ENTRY FEE REFUND DELAYS: CONSUMER
NOTICE" in at least 28-point font and the remaining
portion in at least a 12-point font;
(2) the caption, "Your agreement to this arrangement
may result in the delayed sale of the living unit as well

HB4276 Engrossed - 4 - LRB103 34669 RPS 64512 b