Public Act 103-0812
 
HB4276 EnrolledLRB103 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 
    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) For the purpose of determining the time a refund is 
due, the start time of the refund begins after the unit has 
been permanently vacated, returned to resalable condition, and 
the outgoing resident has a zero balance due, excluding 
outstanding balances to be payable by outside payors, 
including, but not limited to, Medicare, Medicaid, Managed 
Medicare, or within 30 days of the unit being permanently 
vacated and the outgoing resident has a zero balance due, 
whichever is shorter. Refund delays due to estate factors 
outside of the community's control, including, but not limited 
to, probate challenges, estate challenges, or an inability to 
confirm next of kin, are not included in the outstanding 
refunds to be disclosed. 
    (c) Pre-sale disclosures may include additional data by 
calendar year.
    (d) 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.
    (e) 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. 
    (f) Failure to provide the pre-sale disclosure in 
accordance with this Section may result in a minimum monetary 
penalty of $500 at the discretion of the Department. The 
Department shall adopt rules to enforce this Section and 
provide for factors to be considered when imposing monetary 
penalties and for repeat violations of this Section. 
 
    (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 
    as the delayed return of the entry fee."; and
        (3) a statement that the rights provided under this 
    Section may not be waived.