Public Act 097-0804

SB2935 Enrolled LRB097 16822 CEL 62004 b

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois,

represented in the General Assembly:

Section 1. The Regulatory Sunset Act is amended by changing

Section 4.23 and by adding Section 4.33 as follows:

(5 ILCS 80/4.23)

Sec. 4.23. Acts and Sections repealed on January 1, 2013.

The following Acts and Sections of Acts are repealed on January

1, 2013:

The Dietetic and Nutrition Services Practice Act.

The Elevator Safety and Regulation Act.

The Fire Equipment Distributor and Employee Regulation Act

of 2011.

The Funeral Directors and Embalmers Licensing Code.

The Naprapathic Practice Act.

The Professional Counselor and Clinical Professional

Counselor Licensing Act.

The Wholesale Drug Distribution Licensing Act.

Section 2.5 of the Illinois Plumbing License Law.

(Source: P.A. 95-331, eff. 8-21-07; 96-1499, eff. 1-18-11.)

(5 ILCS 80/4.33 new)

Sec. 4.33. Act repealed on January 1, 2023. The following

Act is repealed on January 1, 2023:

The Wholesale Drug Distribution Licensing Act.

Section 5. The Wholesale Drug Distribution Licensing Act is

amended by changing Sections 15, 20, 25, 26, 50, 55, and 59 and

by adding Section 173 as follows:

(225 ILCS 120/15) (from Ch. 111, par. 8301-15)

(Section scheduled to be repealed on January 1, 2013)

Sec. 15. Definitions. As used in this Act:

"Authentication" means the affirmative verification,

before any wholesale distribution of a prescription drug

occurs, that each transaction listed on the pedigree has

occurred.

"Authorized distributor of record" means a wholesale

distributor with whom a manufacturer has established an ongoing

relationship to distribute the manufacturer's prescription

drug. An ongoing relationship is deemed to exist between a

wholesale distributor and a manufacturer when the wholesale

distributor, including any affiliated group of the wholesale

distributor, as defined in Section 1504 of the Internal Revenue

Code, complies with the following:

(1) The wholesale distributor has a written agreement

currently in effect with the manufacturer evidencing the

ongoing relationship; and

(2) The wholesale distributor is listed on the

manufacturer's current list of authorized distributors of

record, which is updated by the manufacturer on no less

than a monthly basis.

"Blood" means whole blood collected from a single donor and

processed either for transfusion or further manufacturing.

"Blood component" means that part of blood separated by

physical or mechanical means.

"Board" means the State Board of Pharmacy of the Department

of Professional Regulation.

"Chain pharmacy warehouse" means a physical location for

prescription drugs that acts as a central warehouse and

performs intracompany sales or transfers of the drugs to a

group of chain or mail order pharmacies that have the same

common ownership and control. Notwithstanding any other

provision of this Act, a chain pharmacy warehouse shall be

considered part of the normal distribution channel.

"Co-licensed partner or product" means an instance where

one or more parties have the right to engage in the

manufacturing or marketing of a prescription drug, consistent

with the FDA's implementation of the Prescription Drug

Marketing Act.

"Department" means the Department of Financial and

Professional Regulation.

"Drop shipment" means the sale of a prescription drug to a

wholesale distributor by the manufacturer of the prescription

drug or that manufacturer's co-licensed product partner, that

manufacturer's third party logistics provider, or that

manufacturer's exclusive distributor or by an authorized

distributor of record that purchased the product directly from

the manufacturer or one of these entities whereby the wholesale

distributor or chain pharmacy warehouse takes title but not

physical possession of such prescription drug and the wholesale

distributor invoices the pharmacy, chain pharmacy warehouse,

or other person authorized by law to dispense or administer

such drug to a patient and the pharmacy, chain pharmacy

warehouse, or other authorized person receives delivery of the

prescription drug directly from the manufacturer, that

manufacturer's third party logistics provider, or that

manufacturer's exclusive distributor or from an authorized

distributor of record that purchased the product directly from

the manufacturer or one of these entities.

"Drug sample" means a unit of a prescription drug that is

not intended to be sold and is intended to promote the sale of

the drug.

"Facility" means a facility of a wholesale distributor

where prescription drugs are stored, handled, repackaged, or

offered for sale.

"FDA" means the United States Food and Drug Administration.

"Manufacturer" means a person licensed or approved by the

FDA to engage in the manufacture of drugs or devices,

consistent with the definition of "manufacturer" set forth in

the FDA's regulations and guidances implementing the

Prescription Drug Marketing Act.

"Manufacturer's exclusive distributor" means anyone who

contracts with a manufacturer to provide or coordinate

warehousing, distribution, or other services on behalf of a

manufacturer and who takes title to that manufacturer's

prescription drug, but who does not have general responsibility

to direct the sale or disposition of the manufacturer's

prescription drug. A manufacturer's exclusive distributor must

be licensed as a wholesale distributor under this Act and, in

order to be considered part of the normal distribution channel,

must also be an authorized distributor of record.

"Normal distribution channel" means a chain of custody for

a prescription drug that goes, directly or by drop shipment,

from (i) a manufacturer of the prescription drug, (ii) that

manufacturer to that manufacturer's co-licensed partner, (iii)

that manufacturer to that manufacturer's third party logistics

provider, or (iv) that manufacturer to that manufacturer's

exclusive distributor to:

(1) a pharmacy or to other designated persons

authorized by law to dispense or administer the drug to a

patient;

(2) a wholesale distributor to a pharmacy or other

designated persons authorized by law to dispense or

administer the drug to a patient;

(3) a wholesale distributor to a chain pharmacy

warehouse to that chain pharmacy warehouse's intracompany

pharmacy to a patient or other designated persons

authorized by law to dispense or administer the drug to a

patient;

(4) a chain pharmacy warehouse to the chain pharmacy

warehouse's intracompany pharmacy or other designated

persons authorized by law to dispense or administer the

drug to the patient;

(5) an authorized distributor of record to one other

authorized distributor of record to an office-based health

care practitioner authorized by law to dispense or

administer the drug to the patient; or

(6) an authorized distributor to a pharmacy or other

persons licensed to dispense or administer the drug.

"Pedigree" means a document or electronic file containing

information that records each wholesale distribution of any

given prescription drug from the point of origin to the final

wholesale distribution point of any given prescription drug.

"Person" means and includes a natural person, partnership,

association, or corporation, or any other legal business

entity.

"Pharmacy distributor" means any pharmacy licensed in this

State or hospital pharmacy that is engaged in the delivery or

distribution of prescription drugs either to any other pharmacy

licensed in this State or to any other person or entity

including, but not limited to, a wholesale drug distributor

engaged in the delivery or distribution of prescription drugs

who is involved in the actual, constructive, or attempted

transfer of a drug in this State to other than the ultimate

consumer except as otherwise provided for by law.

"Prescription drug" means any human drug, including any

biological product (except for blood and blood components

intended for transfusion or biological products that are also

medical devices), required by federal law or regulation to be

dispensed only by a prescription, including finished dosage

forms and bulk drug substances subject to Section 503 of the

Federal Food, Drug and Cosmetic Act.

"Repackage" means repackaging or otherwise changing the

container, wrapper, or labeling to further the distribution of

a prescription drug, excluding that completed by the pharmacist

responsible for dispensing the product to a patient.

"Secretary" means the Secretary of Financial and

Professional Regulation.

"Third party logistics provider" means anyone who

contracts with a prescription drug manufacturer to provide or

coordinate warehousing, distribution, or other services on

behalf of a manufacturer, but does not take title to the

prescription drug or have general responsibility to direct the

prescription drug's sale or disposition. A third party

logistics provider must be licensed as a wholesale distributor

under this Act and, in order to be considered part of the

normal distribution channel, must also be an authorized

distributor of record.

"Wholesale distribution" means the distribution of

prescription drugs to persons other than a consumer or patient,

but does not include any of the following:

(1) Intracompany sales of prescription drugs, meaning

(i) any transaction or transfer between any division,

subsidiary, parent, or affiliated or related company under

the common ownership and control of a corporate entity or

(ii) any transaction or transfer between co-licensees of a

co-licensed product.

(2) The sale, purchase, distribution, trade, or

transfer of a prescription drug or offer to sell, purchase,

distribute, trade, or transfer a prescription drug for

emergency medical reasons.

(3) The distribution of prescription drug samples by

manufacturers' representatives.

(4) Drug returns, when conducted by a hospital, health

care entity, or charitable institution in accordance with

federal regulation.

(5) The sale of minimal quantities of prescription

drugs by licensed retail pharmacies to licensed

practitioners for office use or other licensed pharmacies.

(6) The sale, purchase, or trade of a drug, an offer to

sell, purchase, or trade a drug, or the dispensing of a

drug pursuant to a prescription.

(7) The sale, transfer, merger, or consolidation of all

or part of the business of a pharmacy or pharmacies from or

with another pharmacy or pharmacies, whether accomplished

as a purchase and sale of stock or business assets.

(8) The sale, purchase, distribution, trade, or

transfer of a prescription drug from one authorized

distributor of record to one additional authorized

distributor of record when the manufacturer has stated in

writing to the receiving authorized distributor of record

that the manufacturer is unable to supply the prescription

drug and the supplying authorized distributor of record

states in writing that the prescription drug being supplied

had until that time been exclusively in the normal

distribution channel.

(9) The delivery of or the offer to deliver a

prescription drug by a common carrier solely in the common

carrier's usual course of business of transporting

prescription drugs when the common carrier does not store,

warehouse, or take legal ownership of the prescription

drug.

(10) The sale or transfer from a retail pharmacy, mail

order pharmacy, or chain pharmacy warehouse of expired,

damaged, returned, or recalled prescription drugs to the

original manufacturer, the originating wholesale

distributor, or a third party returns processor.

"Wholesale drug distributor" means anyone engaged in the

wholesale distribution of prescription drugs into, out of, or

within the State, including without limitation manufacturers;

repackers; own label distributors; jobbers; private label

distributors; brokers; warehouses, including manufacturers'

and distributors' warehouses; manufacturer's exclusive

distributors; and authorized distributors of record; drug

wholesalers or distributors; independent wholesale drug

traders; specialty wholesale distributors; third party

logistics providers; and retail pharmacies that conduct

wholesale distribution; and chain pharmacy warehouses that

conduct wholesale distribution. In order to be considered part

of the normal distribution channel, a wholesale distributor

must also be an authorized distributor of record.

(Source: P.A. 95-689, eff. 10-29-07.)

(225 ILCS 120/20) (from Ch. 111, par. 8301-20)

(Section scheduled to be repealed on January 1, 2013)

Sec. 20. Prohibited drug purchases or receipt. It shall be

unlawful for any person or entity located in this State to

knowingly purchase or receive any prescription drug from any

source other than a person or entity required by the laws of

this State to be licensed to ship into, out of, or within this

State licensed under the laws of this State or the state of

domicile except where otherwise provided. A person or entity

licensed under the laws of this State shall include, but is not

limited to, a wholesale distributor, manufacturer, pharmacy

distributor, or pharmacy. Any person violating this Section

shall, upon conviction, be adjudged guilty of a Class C

misdemeanor. A second violation shall constitute a Class 4

felony.

(Source: P.A. 87-594.)

(225 ILCS 120/25) (from Ch. 111, par. 8301-25)

(Section scheduled to be repealed on January 1, 2013)

Sec. 25. Wholesale drug distributor licensing

requirements.

(a) Every resident wholesale distributor who engages in the

wholesale distribution of prescription drugs must be licensed

by the Department, and every non-resident wholesale

distributor must be licensed in this State if it ships

prescription drugs into this State, in accordance with this

Act, before engaging in wholesale distributions of wholesale

prescription drugs.

(b) The Department shall require without limitation all of

the following information from each applicant for licensure

under this Act:

(1) The name, full business address, and telephone

number of the licensee.

(2) All trade or business names used by the licensee.

(3) Addresses, telephone numbers, and the names of

contact persons for all facilities used by the licensee for

the storage, handling, and distribution of prescription

drugs.

(4) The type of ownership or operation, such as a

partnership, corporation, or sole proprietorship.

(5) The name of the owner or operator of the wholesale

distributor, including:

(A) if a natural person, the name of the natural

person;

(B) if a partnership, the name of each partner and

the name of the partnership;

(C) if a corporation, the name and title of each

corporate officer and director, the corporate names,

and the name of the state of incorporation; and

(D) if a sole proprietorship, the full name of the

sole proprietor and the name of the business entity.

(6) A list of all licenses and permits issued to the

applicant by any other state that authorizes the applicant

to purchase or possess prescription drugs.

(7) The name of the designated representative for the

wholesale distributor, together with the personal

information statement and fingerprints, as required under

subsection (c) of this Section.

(8) Minimum liability insurance and other insurance as

defined by rule.

(9) Any additional information required by the

Department.

(c) Each wholesale distributor must designate an

individual representative who shall serve as the contact person

for the Department. This representative must provide the

Department with all of the following information:

(1) Information concerning whether the person has been

enjoined, either temporarily or permanently, by a court of

competent jurisdiction from violating any federal or State

law regulating the possession, control, or distribution of

prescription drugs or criminal violations, together with

details concerning any such event.

(2) A description of any involvement by the person with

any business, including any investments, other than the

ownership of stock in a publicly traded company or mutual

fund which manufactured, administered, prescribed,

distributed, or stored pharmaceutical products and any

lawsuits in which such businesses were named as a party.

(3) A description of any misdemeanor or felony criminal

offense of which the person, as an adult, was found guilty,

regardless of whether adjudication of guilt was withheld or

whether the person pled guilty or nolo contendere. If the

person indicates that a criminal conviction is under appeal

and submits a copy of the notice of appeal of that criminal

offense, the applicant must, within 15 days after the

disposition of the appeal, submit to the Department a copy

of the final written order of disposition.

(4) The designated representative of an applicant for

licensure as a wholesale drug distributor shall have his or

her fingerprints submitted to the Department of State

Police in an electronic format that complies with the form

and manner for requesting and furnishing criminal history

record information as prescribed by the Department of State

Police. These fingerprints shall be checked against the

Department of State Police and Federal Bureau of

Investigation criminal history record databases now and

hereafter filed. The Department of State Police shall

charge applicants a fee for conducting the criminal history

records check, which shall be deposited into the State

Police Services Fund and shall not exceed the actual cost

of the records check. The Department of State Police shall

furnish, pursuant to positive identification, records of

Illinois convictions to the Department. The Department may

require applicants to pay a separate fingerprinting fee,

either to the Department or to a vendor. The Department, in

its discretion, may allow an applicant who does not have

reasonable access to a designated vendor to provide his or

her fingerprints in an alternative manner. The Department

may adopt any rules necessary to implement this Section.

The designated representative of a licensee shall

receive and complete continuing training in applicable

federal and State laws governing the wholesale

distribution of prescription drugs.

(d) The Department may not issue a wholesale distributor

license to an applicant, unless the Department first:

(1) ensures that a physical inspection of the facility

satisfactory to the Department has occurred at the address

provided by the applicant, as required under item (1) of

subsection (b) of this Section; and

(2) determines that the designated representative

meets each of the following qualifications:

(A) He or she is at least 21 years of age.

(B) He or she has been employed full-time for at

least 3 years in a pharmacy or with a wholesale

distributor in a capacity related to the dispensing and

distribution of, and recordkeeping relating to,

prescription drugs.

(C) He or she is employed by the applicant full

time in a managerial level position.

(D) He or she is actively involved in and aware of

the actual daily operation of the wholesale

distributor.

(E) He or she is physically present at the facility

of the applicant during regular business hours, except

when the absence of the designated representative is

authorized, including without limitation sick leave

and vacation leave.

(F) He or she is serving in the capacity of a

designated representative for only one applicant at a

time, except where more than one licensed wholesale

distributor is co-located in the same facility and such

wholesale distributors are members of an affiliated

group, as defined in Section 1504 of the Internal

Revenue Code.

(e) If a wholesale distributor distributes prescription

drugs from more than one facility, the wholesale distributor

shall obtain a license for each facility.

(f) The information provided under this Section may not be

disclosed to any person or entity other than the Department or

another government entity in need of such information for

licensing or monitoring purposes.

(Source: P.A. 94-942, eff. 1-1-07; 95-689, eff. 10-29-07.)

(225 ILCS 120/26)

(Section scheduled to be repealed on January 1, 2013)

Sec. 26. Unlicensed practice; violation; civil penalty.

(a) Any person who practices, offers to practice, attempts

to practice, or holds oneself out to practice as a wholesale

drug distributor or pharmacy distributor without being

licensed to ship into, out of, or within the State under this

Act shall, in addition to any other penalty provided by law,

pay a civil penalty to the Department in an amount not to

exceed $10,000 $5,000 for each offense as determined by the

Department. The civil penalty shall be assessed by the

Department after a hearing is held in accordance with the

provisions set forth in this Act regarding the provision of a

hearing for the discipline of a licensee.

(b) The Department has the authority and power to

investigate any and all unlicensed activity.

(c) The civil penalty shall be paid within 60 days after

the effective date of the order imposing the civil penalty. The

order shall constitute a judgment and may be filed and

execution had thereon in the same manner as any judgment from

any court of record.

(Source: P.A. 89-474, eff. 6-18-96.)

(225 ILCS 120/50) (from Ch. 111, par. 8301-50)

(Section scheduled to be repealed on January 1, 2013)

Sec. 50. Inspection powers; access to records.

(a) Any pharmacy investigator authorized by the Department

has the right of entry for inspection during normal business

hours of premises purporting or appearing to be used by a

wholesale drug distributor in this State, including the

business premises of a person licensed pursuant to this Act.

This right of entry shall permit the authorized pharmacy

investigator unfettered access to the entire business

premises. Any attempt to hinder an authorized pharmacy

investigator from inspecting the business premises and

documenting the inspection shall be a violation of this Act.

The duly authorized investigators shall be required to show

appropriate identification before being given access to a

wholesale drug distributor's premises and delivery vehicles.

Any wholesale drug distributor providing adequate

documentation of the most recent satisfactory inspection less

than 3 years old of the distributor's wholesale drug

distribution activities and facilities by either the U.S. FDA,

a State agency, or any person or entity lawfully designated by

a State agency to perform an inspection determined to be

comparable by the Department shall be exempt from further

inspection for a period of time to be determined by the

Department. The exemption shall not bar the Department from

initiating an investigation of a public or governmental

complaint received by the Department regarding a wholesale drug

distributor. Wholesale drug distributors shall be given an

opportunity to correct minor violations determined by these

investigations.

(b) With the exception of the most recent 12 months of

records that must be kept on the premises where the drugs are

stored, wholesale Wholesale drug distributors may keep records

regarding purchase and sales transactions electronically at a

central location apart from the principal office of the

wholesale drug distributor or the location at which the drugs

were stored and from which they were shipped, provided that the

records shall be made readily available for inspection within 2

working days of a request by the Department. The records may be

kept in any form permissible under federal law applicable to

prescription drugs record keeping.

(c) (Blank).

(Source: P.A. 94-942, eff. 1-1-07.)

(225 ILCS 120/55) (from Ch. 111, par. 8301-55)

(Section scheduled to be repealed on January 1, 2013)

Sec. 55. Discipline; grounds.

(a) The Department may refuse to issue, restore, or renew,

or may revoke, suspend, place on probation, reprimand or take

other disciplinary or non-disciplinary action as the

Department may deem appropriate, including imposing fines not

to exceed $10,000 for each violation, with regard to any

applicant or licensee or any officer, director, manager, or

shareholder who owns 5% or more interest in the business that

holds the license proper for any one or a combination of the

following reasons:

(1) Violation of this Act or of the its rules adopted

under this Act.

(2) Aiding or assisting another person in violating any

provision of this Act or the its rules adopted under this

Act.

(3) Failing, within 60 days, to provide information in

response respond to a written requirement made by the

Department for information.

(4) Engaging in dishonorable, unethical, or

unprofessional conduct of a character likely to deceive,

defraud, or harm the public. This includes violations of

"good faith" as defined by the Illinois Controlled

Substances Act and applies to all prescription drugs.

(5) Discipline by another U.S. jurisdiction or foreign

nation, if at least one of the grounds for the discipline

is the same or substantially equivalent to those set forth

in this Act.

(6) Selling or engaging in the sale of drug samples

provided at no cost by drug manufacturers.

(7) Conviction by of or entry of a plea of guilty or

nolo contendere, finding of guilt, jury verdict, or entry

of judgment or by sentencing of any crime, including, but

not limited to, convictions, preceding sentences of

supervision, conditional discharge, or first offender

probation, under the laws of any jurisdiction of the United

States (i) by the applicant or licensee, or any officer,

director, manager or shareholder who owns more than 5% of

stock, to any crime under the laws of the United States or

any state or territory of the United States that is a

felony or (ii) a misdemeanor, of which an essential element

of which is dishonesty, or any crime that is directly

related to the practice of this profession.

(8) Habitual or excessive use or addiction to alcohol,

narcotics, stimulants, or any other chemical agent or drug

by the designated representative, as provided for in item

(7) of subsection (b) of Section 25 of this Act, any

officer, or director that results in the inability to

function with reasonable judgment, skill, or safety.

(b) The Department may refuse to issue, restore, or renew,

or may revoke, suspend, place on probation, reprimand or take

other disciplinary action as the Department may deem property

including fines not to exceed $10,000 per offense for any of

the following reasons:

(9) (1) Material misstatement in furnishing

information to the Department.

(2) Making any misrepresentation for the purpose of

obtaining a license.

(10) (3) A finding by the Department that the licensee,

after having his or her license placed on probationary

status, has violated the terms of probation.

(11) Fraud or misrepresentation in applying for, or

procuring, a license under this Act or in connection with

applying for renewal of a license under this Act. (4) A

finding that licensure or registration has been applied for

or obtained by fraudulent means.

(12) (5) Willfully making or filing false records or

reports.

(13) (6) A finding of a substantial discrepancy in a

Department audit of a prescription drug, including a

controlled substance as that term is defined in this Act or

in the Illinois Controlled Substances Act.

(14) Falsifying a pedigree or selling, distributing,

transferring, manufacturing, repackaging, handling, or

holding a counterfeit prescription drug intended for human

use.

(15) Interfering with a Department investigation.

(16) Failing to adequately secure controlled

substances or other prescription drugs from diversion.

(17) Acquiring or distributing prescription drugs not

obtained from a source licensed by the Department.

(18) Failing to properly store drugs.

(19) Failing to maintain the licensed premises with

proper storage and security controls.

(b) (c) The Department may refuse to issue or may suspend

the license or registration 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 the time the requirements

of the tax Act are satisfied.

(c) (d) The Department shall revoke the license or

certificate of registration issued under this Act or any prior

Act of this State of any person who has been convicted a second

time of committing any felony under the Illinois Controlled

Substances Act or the Methamphetamine Control and Community

Protection Act or who has been convicted a second time of

committing a Class 1 felony under Sections 8A-3 and 8A-6 of the

Illinois Public Aid Code. A person whose license or certificate

of registration issued under this Act or any prior Act of this

State is revoked under this subsection (b) (c) shall be

prohibited from engaging in the practice of pharmacy in this

State.

(Source: P.A. 94-556, eff. 9-11-05; 95-689, eff. 10-29-07;

revised 11-18-11.)

(225 ILCS 120/59)

(Section scheduled to be repealed on January 1, 2013)

Sec. 59. Injunctive action; cease and desist order.

Enforcement; order to cease distribution of a drug.

(a) If any person violates the provisions of this Act, the

Secretary, in the name of the People of the State of Illinois,

through the Attorney General or the State's Attorney of the

county where the violation is alleged to have occurred, may

petition for an order enjoining the violation or for an order

enforcing compliance with this Act. Upon the filing of a

verified petition, the court with appropriate jurisdiction may

issue a temporary restraining order, without notice or bond,

and may preliminarily and permanently enjoin the violation. If

it is established that the person has violated or is violating

the injunction, then the court may punish the offender for

contempt of court. Proceedings under this Section are in

addition to, and not in lieu of, all other remedies and

penalties provided by this Act. The Department shall issue an

order requiring the appropriate person, including the

distributors or retailers of a drug, to immediately cease

distribution of the drug within this State, if the Department

finds that there is a reasonable probability that:

(1) a wholesale distributor has (i) violated a

provision in this Act or (ii) falsified a pedigree or sold,

distributed, transferred, manufactured, repackaged,

handled, or held a counterfeit prescription drug intended

for human use;

(2) the prescription drug at issue, as a result of a

violation in paragraph (1) of this subsection (a), could

cause serious, adverse health consequences or death; and

(3) other procedures would result in unreasonable

delay.

(b) Whenever, in the opinion of the Department, a person

violates any provision of this Act, the Department may issue a

rule to show cause why an order to cease and desist shall not

be entered against that person. The rule shall clearly set

forth the grounds relied upon by the Department and shall allow

a person at least 7 days after the date of the rule to file an

answer satisfactory to the Department. Failure to answer to the

satisfaction of the Department shall cause an order to cease

and desist to be issued. An order issued under this Section

shall provide the person subject to the order with an

opportunity for an informal hearing, to be held not later than

10 days after the date of the issuance of the order, on the

actions required by the order. If, after providing an

opportunity for a hearing, the Department determines that

inadequate grounds exist to support the actions required by the

order, the Department shall vacate the order.

(Source: P.A. 95-689, eff. 10-29-07.)

(225 ILCS 120/173 new)

Sec. 173. Confidentiality. All information collected by

the Department in the course of an examination or investigation

of a licensee or applicant, including, but not limited to, any

complaint against a licensee filed with the Department and

information collected to investigate any such complaint, shall

be maintained for the confidential use of the Department and

shall not be disclosed. The Department may not disclose the

information to anyone other than law enforcement officials,

other regulatory agencies that have an appropriate regulatory

interest as determined by the Secretary, or a party presenting

a lawful subpoena to the Department. Information and documents

disclosed to a federal, State, county, or local law enforcement

agency shall not be disclosed by the agency for any purpose to

any other agency or person. A formal complaint filed against a

licensee by the Department or any order issued by the

Department against a licensee or applicant shall be a public

record, except as otherwise prohibited by law.

Section 99. Effective date. This Act takes effect on

January 1, 2013.

INDEX Statutes amended in order of appearance