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91_HB0077ham002
LRB9100521PTpkam
1 AMENDMENT TO HOUSE BILL 77
2 AMENDMENT NO. . Amend House Bill 77, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
5 "Section 1. Short title. This Act may be cited as the
6 Elder Care Savings Fund Act.
7 Section 5. Declaration of purpose. It is declared (i)
8 that for the benefit of the people of the State of Illinois,
9 the conduct and increase of their commerce, the protection
10 and enhancement of their welfare, the development of
11 continued prosperity, and the improvement of their health and
12 living conditions, it is essential that this and future
13 generations be given the fullest opportunity to provide for
14 their long term health care needs and (ii) that to achieve
15 these ends it is of the utmost importance that Illinois
16 residents be provided with investment alternatives to enhance
17 their financial access to long term health care. It is the
18 intent of this Act to create a savings fund that will provide
19 residents of the State of Illinois with an investment option
20 that will earn the highest available rate of return while
21 managing risk and maintaining liquidity.
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1 Section 10. Definitions. In this Act:
2 (a) "Assisted living establishment" or "establishment"
3 means a home, building, residence, or any other place where
4 sleeping accommodations are provided for at least 3 unrelated
5 adults, at least 80% of whom are 55 years of age or older and
6 where the following are provided consistent with the
7 purposes of this Act:
8 (1) services consistent with a social model that is
9 based on the premise that the resident's unit in assisted
10 living and shared housing is his or her own home;
11 (2) community-based residential care for persons
12 who need assistance with activities of daily living,
13 including personal, supportive, and intermittent
14 health-related services available 24 hours per day, if
15 needed, to meet the scheduled and unscheduled needs of a
16 resident;
17 (3) counseling for health, social services, and
18 nutrition by licensed personnel or case coordination
19 units under the Department on Aging and the area agencies
20 on aging;
21 (4) mandatory services, whether provided directly
22 by the establishment or by another entity arranged for by
23 the establishment, with the consent of the resident or
24 resident's representative; and
25 (5) a physical environment that is a homelike
26 setting that includes the following and such other
27 elements as established by the Department in conjunction
28 with the Assisted Living and Shared Housing Advisory
29 Board: individual living units each of which shall
30 accommodate small kitchen appliances and contain private
31 bathing, washing, and toilet facilities, or private
32 washing and toilet facilities with a common bathing room
33 readily accessible to each resident. Units shall be
34 maintained for single occupancy except in cases in which
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1 2 residents choose to share a unit. Sufficient common
2 space shall exist to permit individual and group
3 activities.
4 "Assisted living establishment" or "establishment" does
5 not mean any of the following:
6 (1) A home, institution, or similar place operated
7 by the federal government or the State of Illinois.
8 (2) A long-term care facility licensed under the
9 Nursing Home Care Act. However, a long term care facility
10 may convert distinct parts of the facility to assisted
11 living. If the long-term care facility elects to do so,
12 the facility shall retain the Certificate of Need for its
13 nursing beds that were converted.
14 (3) A hospital, sanitarium, or other institution,
15 the principal activity or business of which is the
16 diagnosis, care, and treatment of human illness and that
17 is required to be licensed under the Hospital Licensing
18 Act.
19 (4) A facility for child care as defined in the
20 Child Care Act of 1969.
21 (5) A community living facility as defined in the
22 Community Living Facilities Licensing Act.
23 (6) A nursing home or sanitarium operated solely by
24 and for persons who rely exclusively upon treatment by
25 spiritual means through prayer in accordance with the
26 creed or tenants of a well-recognized church or religious
27 denomination.
28 (7) A facility licensed by the Department of Human
29 Services as a community-integrated living arrangement as
30 defined in the Community-Integrated Living Arrangements
31 Licensure and Certification Act.
32 (8) A supportive residence licensed under the
33 Supportive Residences Licensing Act.
34 (9) A life care facility as defined in the Life
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1 Care Facilities Act; a life care facility may apply under
2 this Act to convert sections of the community to assisted
3 living.
4 (10) A free-standing hospice facility.
5 (11) A shared housing establishment.
6 (12) A supportive living facility as described in
7 Section 5-5.0la of the Illinois Public Aid Code.
8 (b) "Authority" means the Elder Care Trust Authority.
9 (c) "Elder Care Savings Fund" means the fund that is
10 created and administered by the State Treasurer to supplement
11 and enhance the investment opportunities otherwise available
12 to Illinois residents seeking to save money to pay the costs
13 of long term health care.
14 Section 15. Establishment and Administration of the
15 Elder Care Savings Fund.
16 (a) In order to provide investors with investment
17 alternatives to enhance their financial access to long term
18 health care, and in furtherance of the public policy of this
19 Act, the State Treasurer may establish and administer an
20 Elder Care Savings Fund.
21 (b) The Treasurer, in administering the Elder Care
22 Savings Fund, may receive moneys from Illinois residents into
23 the fund and invest moneys within the fund on their behalf.
24 The Treasurer may invest the funds constituting the Elder
25 Care Savings Fund in the same manner and in the same types of
26 investments and subject to the same limitations provided for
27 the investment of funds in the State Treasury. The Treasurer
28 shall develop, publish, and implement an investment policy
29 covering the management of funds in the Elder Care Savings
30 Fund. The policy shall be published at least once each year
31 in at least one newspaper of general circulation in both
32 Springfield and Chicago, and each year as part of the audit
33 of the Elder Care Savings Fund by the Auditor General, which
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1 shall be distributed to all participants in the fund. The
2 Treasurer shall notify all participants in writing, and the
3 Treasurer shall publish in a newspaper of general circulation
4 in both Chicago and Springfield any changes to the previously
5 published investment policy at least 30 calendar days before
6 implementing the policy. Any investment policy adopted by
7 the Treasurer shall be reviewed, and updated if necessary,
8 within 90 days following the installation of a new Treasurer.
9 (c) A portion of the administrative expenses of the
10 Elder Care Savings Fund shall be paid from the earnings of
11 the fund. No more than one half of one percent of the assets
12 of the fund shall be used to pay administrative expenses.
13 The Treasurer shall seek an appropriation for any
14 administrative expenses that are not paid from the earnings
15 of the fund. As soon as the Elder Care Savings Fund reaches
16 an asset level that equals or exceeds $200 million, the
17 administration expenses of the Elder Care Savings Fund shall
18 be paid solely from its earnings. Interest earnings in
19 excess of administrative expenses shall be credited or paid
20 monthly to the several participants in the fund in a manner
21 which equitably reflects the differing amounts of their
22 respective investments in the fund and the differing periods
23 of time for which the amounts were in the custody of the
24 fund.
25 (d) The Treasurer shall promulgate rules and regulations
26 as he or she deems necessary for the efficient administration
27 of the Elder Care Savings Fund, including specification of
28 minimum and maximum amounts that may be deposited, minimum
29 and maximum periods of time for which deposits may be
30 retained in the fund, and conditions under which penalties
31 will be assessed for refunds of earnings that are not used
32 for long term health care expenses defined in Section 10 of
33 this Act.
34 (e) Upon creating an Elder Care Savings Fund the State
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1 Treasurer shall give bond with 2 or more sufficient sureties,
2 payable to and for the benefit of the participants in the
3 Elder Care Savings Fund, in the penal sum of $500,000,
4 conditioned upon the faithful discharge of his or her duties
5 in relation to the fund.
6 Section 20. Exemption from taxation. As provided in
7 this Act, the investment in the Elder Care Savings Fund is in
8 all respects for the benefit of the People of the State of
9 Illinois, the conduct and increase of their commerce, the
10 protection and enhancement of their welfare, the development
11 of continued prosperity, and the improvement of their health
12 and living conditions is for public purposes. In
13 consideration of those facts, income derived from investments
14 in the Elder Care Savings Fund and financial incentives
15 received under the grant program described in Section 25 of
16 this Act shall be free from all taxation by the State or its
17 political subdivisions, except for estate, transfer, and
18 inheritance taxes.
19 Section 25. Grant program.
20 (a) The Governor and the Director of the Bureau of the
21 Budget shall provide for a grant program of additional
22 financial incentives to be provided to participants in the
23 Elder Care Savings Program to encourage the use of the fund
24 and the income derived from the fund for one or more of the
25 following purposes:
26 (1) Care in a facility licensed under the Nursing
27 Home Care Act.
28 (2) Home health nursing services or home health
29 aide services provided by a home health agency licensed
30 under the Home Health Agency Licensing Act.
31 (3) Respite care as defined in the Respite Program
32 Act.
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1 (4) Custodial care services.
2 (5) Care in a hospice licensed under the Hospice
3 Program Licensing Act.
4 (6) Long term health care services for the aged,
5 the disabled, or persons diagnosed as infected with HIV
6 or having AIDS or a related condition. These services
7 include, without limitation, chore-housekeeping services,
8 a personal care attendant, adult day care, assistive
9 equipment, home renovation, home-delivered meals, and
10 emergency response systems. As used in this paragraph,
11 "AIDS" means acquired immunodeficiency syndrome; "HIV"
12 means the Human Immunodeficiency Virus or any other
13 identified causative agent of AIDS.
14 (7) Care in an assisted living establishment.
15 (b) The grant program of financial incentives shall be
16 administered by the State Treasurer pursuant to
17 administrative rules adopted by the Treasurer. The financial
18 incentives shall be in forms determined by the Governor and
19 the Director of the Bureau of the Budget and may include,
20 among others, supplemental payments to the participants in
21 the Elder Care Savings Fund to be applied to costs of care or
22 services specified in items (1) through (6) of subsection
23 (a). The Treasurer may establish, by rule, administrative
24 procedures and eligibility criteria for the grant program;
25 those rules must be consistent with the purposes of this Act.
26 The Treasurer may require participants in the Elder Care
27 Savings Fund, providers of long term health care services,
28 and other necessary parties to assist in the determination of
29 eligibility for financial incentives under the grant program.
30 (c) All grants shall be subject to annual appropriation
31 of moneys for that purpose by the General Assembly.
32 Financial incentives shall be provided only if, in the sole
33 judgment of the Director of the Bureau of the Budget, the
34 total incentives offered in a given year will not exceed the
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1 balance of the Elder Care Savings Fund on the day the
2 incentives are offered by more than 0.5%.
3 Section 30. Education program. The State Treasurer, in
4 cooperation with the Department on Aging and area agencies on
5 aging, shall develop and implement an education program and
6 marketing strategies designed to inform residents of this
7 State about the options available for financing long term
8 health care and the need to accumulate the financial
9 resources necessary to pay for that care. The Treasurer
10 shall report to the General Assembly on the program developed
11 and its operation before May 1, 2000. The Treasurer shall
12 adopt rules with respect to his or her powers and duties
13 under this Act.
14 Section 35. Elder Care Trust Authority.
15 (a) There is created the Elder Care Trust Authority.
16 The Authority shall consist of 11 members, 7 of whom shall be
17 appointed as follows: the Speaker and Minority Leader of the
18 House of Representatives and the President and Minority
19 Leader of the Senate shall each appoint one member, and the
20 Governor shall appoint 3 members. The State Treasurer, the
21 Director of the Bureau of the Budget, the Director of Public
22 Health, and the Director of the Illinois Economic and Fiscal
23 Commission, or their respective designees, shall each be a
24 member ex officio. The Governor and legislative leaders
25 shall give consideration to selecting members that include
26 representatives from the following categories: (i) a
27 director, officer, or employee of an entity that provides
28 long term health care services; (ii) a person having a
29 favorable reputation for skill, knowledge, and experience in
30 the field of portfolio management; and (iii) a person
31 experienced in and having a favorable reputation for skill,
32 knowledge, and experience in the long term health care
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1 savings field.
2 The State Treasurer or the Treasurer's designee shall
3 serve as the chairperson of the Authority.
4 The appointed members of the Authority first appointed
5 shall serve for terms expiring on June 30 in 1999, 2000,
6 2001, 2002, 2003, 2004, and 2005 respectively, or until their
7 respective successors have been appointed and have qualified.
8 The initial term of each of those members shall be determined
9 by lot. Upon the expiration of the term of any member, the
10 member's successor shall be appointed for a term of 6 years
11 and until his or her successor has been appointed and has
12 qualified.
13 Any vacancy shall be filled in the manner of the original
14 appointment for the remainder of the unexpired term.
15 Any member of the Authority may be removed by the
16 appointing authority for misfeasance, malfeasance, or wilful
17 neglect of duty or other cause after notice and a public
18 hearing, unless that notice and hearing are expressly waived
19 by the member in writing.
20 Members shall be compensated from moneys appropriated to
21 the State Treasurer for their reasonable expenses actually
22 incurred in performing their duties.
23 Staff assistance shall be provided to the Authority by
24 the State Treasurer.
25 The Authority shall meet at least once each year.
26 (b) The Authority has the following responsibilities:
27 (1) To make recommendations to the Elder Care
28 Savings Fund staff regarding the marketing of the Elder
29 Care Savings Fund to ensure the use of the fund by
30 participants throughout the State for long term health
31 care purposes.
32 (2) To advise the Elder Care Savings Fund staff on
33 an effective advertising campaign to inform the general
34 public about Elder Care Savings Fund and its
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1 availability.
2 (3) To advise the Elder Care Savings Fund staff
3 regarding the investment portfolio of the Elder Care
4 Savings Fund.
5 (4) After the creation of the Elder Care Savings
6 Fund, to assess the effectiveness of the program and
7 recommend constructive changes to the Bureau of the
8 Budget.
9 (5) To make recommendations to the General Assembly
10 regarding statutory changes that the Authority deems
11 necessary or desirable.
12 Section 999. Effective date. This Act takes effect upon
13 becoming law.".