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91_HB1852eng HB1852 Engrossed LRB9104621LDmb 1 AN ACT in relation to contracts between nursing homes and 2 residents. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Nursing Home Care Act is amended by 6 changing Section 2-202 as follows: 7 (210 ILCS 45/2-202) (from Ch. 111 1/2, par. 4152-202) 8 Sec. 2-202. (a) Before a person is admitted to a 9 facility, or at the expiration of the period of previous 10 contract, or when the source of payment for the resident's 11 care changes from private to public funds or from public to 12 private funds, a written contract shall be executed between a 13 licensee and the following in order of priority: 14 (1) the person, or if the person is a minor, his 15 parent or guardian; or 16 (2) the person's guardian, if any, or agent, if 17 any, as defined in Section 2-3 of the Illinois Power of 18 Attorney Act; or 19 (3) a member of the person's immediate family. 20 An adult person shall be presumed to have the capacity to 21 contract for admission to a long term care facility unless he 22 has been adjudicated a "disabled person" within the meaning 23 of Section 11a-2 of the Probate Act of 1975, or unless a 24 petition for such an adjudication is pending in a circuit 25 court of Illinois. 26 If there is no guardian, agent or member of the person's 27 immediate family available, able or willing to execute the 28 contract required by this Section and a physician determines 29 that a person is so disabled as to be unable to consent to 30 placement in a facility, or if a person has already been 31 found to be a "disabled person", but no order has been HB1852 Engrossed -2- LRB9104621LDmb 1 entered allowing residential placement of the person, that 2 person may be admitted to a facility before the execution of 3 a contract required by this Section; provided that a petition 4 for guardianship or for modification of guardianship is filed 5 within 15 days of the person's admission to a facility, and 6 provided further that such a contract is executed within 10 7 days of the disposition of the petition. 8 No adult shall be admitted to a facility if he objects, 9 orally or in writing, to such admission, except as otherwise 10 provided in Chapters III and IV of the Mental Health and 11 Developmental Disabilities Code or Section 11a-14.1 of the 12 Probate Act of 1975. 13 If a person has not executed a contract as required by 14 this Section, then such a contract shall be executed on or 15 before July 1, 1981, or within 10 days after the disposition 16 of a petition for guardianship or modification of 17 guardianship that was filed prior to July 1, 1981, whichever 18 is later. 19 Before a licensee enters a contract under this Section, 20 it shall provide the prospective resident and his guardian, 21 if any, with written notice of the licensee's policy 22 regarding discharge of a resident whose private funds for 23 payment of care are exhausted. 24 (b) A resident shall not be discharged or transferred at 25 the expiration of the term of a contract, except as provided 26 in Sections 3-401 through 3-423. 27 (c) At the time of the resident's admission to the 28 facility, a copy of the contract shall be given to the 29 resident, his guardian, if any, and any other person who 30 executed the contract. 31 (d) A copy of the contract for a resident who is 32 supported by nonpublic funds other than the resident's own 33 funds shall be made available to the person providing the 34 funds for the resident's support. HB1852 Engrossed -3- LRB9104621LDmb 1 (e) The original or a copy of the contract shall be 2 maintained in the facility and be made available upon request 3 to representatives of the Department and the Department of 4 Public Aid. 5 (f) The contract shall be written in clear and 6 unambiguous language and shall be printed in not less than 7 12-point type. The general form of the contract shall be 8 prescribed by the Department. 9 (g) The contract shall specify: 10 (1) the term of the contract; 11 (2) the services to be provided under the contract 12 and the charges for the services; 13 (3) the services that may be provided to supplement 14 the contract and the charges for the services; 15 (4) the sources liable for payments due under the 16 contract; 17 (5) the amount of deposit paid; and 18 (6) the rights, duties and obligations of the 19 resident, except that the specification of a resident's 20 rights may be furnished on a separate document which 21 complies with the requirements of Section 2-211. 22 (h) The contract shall designate the name of the 23 resident's representative, if any. The resident shall 24 provide the facility with a copy of the written agreement 25 between the resident and the resident's representative which 26 authorizes the resident's representative to inspect and copy 27 the resident's records and authorizes the resident's 28 representative to execute the contract on behalf of the 29 resident required by this Section. 30 (i) The contract shall provide that if the resident is 31 compelled by a change in physical or mental health to leave 32 the facility, the contract and all obligations under it shall 33 terminate on 7 days notice. No prior notice of termination 34 of the contract shall be required, however, in the case of a HB1852 Engrossed -4- LRB9104621LDmb 1 resident's death. The contract shall also provide that in 2 all other situations, a resident may terminate the contract 3 and all obligations under it with 30 days notice. All charges 4 shall be prorated as of the date on which the contract 5 terminates, and, if any payments have been made in advance, 6 the excess shall be refunded to the resident. This provision 7 shall not apply to life-care contracts through which a 8 facility agrees to provide maintenance and care for a 9 resident throughout the remainder of his life nor to 10 continuing-care contracts through which a facility agrees to 11 supplement all available forms of financial support in 12 providing maintenance and care for a resident throughout the 13 remainder of his life. 14 (j) In addition to all other contract specifications 15 contained in this Section admission contracts shall also 16 specify: 17 (1) whether the facility accepts Medicaid clients; 18 (2) whether the facility requires a deposit of the 19 resident or his family prior to the establishment of 20 Medicaid eligibility; 21 (3) in the event that a deposit is required, a 22 clear and concise statement of the procedure to be 23 followed for the return of such deposit to the resident 24 or the appropriate family member or guardian of the 25 person; 26 (4) that all deposits made to a facility by a 27 resident, or on behalf of a resident, shall be returned 28 by the facility within 30 days of the establishment of 29 Medicaid eligibility, unless such deposits must be drawn 30 upon or encumbered in accordance with Medicaid 31 eligibility requirements established by the Illinois 32 Department of Public Aid. 33 (k) It shall be a business offense for a facility to 34 knowingly and intentionally both retain a resident's deposit HB1852 Engrossed -5- LRB9104621LDmb 1 and accept Medicaid payments on behalf of that resident. 2 (l) Any contract between a facility and a resident 3 shall be enforceable against any party if: 4 (1) The contract was signed by the resident; 5 (2) The contract calls for the resident to turn 6 over substantially all of his or her assets, other than 7 heirlooms, family property of sentimental value, and 8 similar items, to the facility in return for an agreement 9 by the facility to provide long-term care to the 10 resident; 11 (3) The resident is deceased; 12 (4) Unclaimed property in the name of the resident 13 exists and is in the custody of the Department of 14 Financial Institutions; and 15 (5) The total value of the unclaimed property is 16 less than $1,000. 17 (Source: P.A. 87-225; 87-895; 88-154.) 18 Section 10. The Uniform Disposition of Unclaimed 19 Property Act is amended by changing Section 10.5 as follows: 20 (765 ILCS 1025/10.5) 21 Sec. 10.5. Nonapplicability of Act. 22 (a) Unless the personal property was identified in a 23 final examination report by the Director issued pursuant to a 24 duly authorized examination and the final examination report 25 was received by the holder on or before May 1, 1993, this Act 26 does not apply to (i) travelers checks reportable as 27 unclaimed property before July 1, 1973, (ii) funds held by 28 any federal, state, or local government or governmental 29 subdivision, agency, entity, officer, or appointee thereof 30 reportable as unclaimed property before July 1, 1981, (iii) 31 any property in the custody of the estate of a deceased 32 person that is subject to a contract under subsection (l) of HB1852 Engrossed -6- LRB9104621LDmb 1 Section 2-202 of the Nursing Home Care Act, or (iv)(iii)any 2 other personal property reportable as unclaimed property 3 before July 1, 1985, based upon the presumptive abandonment 4 period in effect on that date. 5 (b) For reports required to be filed after December 31, 6 1993, this Act does not apply to any reportable personal 7 property held prior to the period required for presumptive 8 abandonment of the property plus the 9 years immediately 9 preceding the beginning of that period. 10 (c) Subsections (a) and (b) do not apply to property 11 held by a trust division or trust department or by a trust 12 company, or affiliate of any of the foregoing that provides 13 nondealer corporate custodial services for securities or 14 securities transactions, organized under the laws of this or 15 another state or the United States. 16 As of January 1, 1998, this subsection shall not be 17 applicable unless the Department has commenced, but not 18 finalized, an examination of the holder as of that date and 19 the property is included in a final examination report for 20 the period covered by the examination. 21 (d) Subsections (a) and (b) do not apply to property 22 held by a holder who files a fraudulent report or fails to 23 file a report. 24 (e) Subsections (a) and (b) do not apply if, as a result 25 of their application, another state would have a legal right 26 to delivery of the property and such other state has 27 commenced proceedings with respect to the property. 28 (Source: P.A. 90-167, eff. 7-23-97.) 29 Section 99. Effective date. This Act takes effect upon 30 becoming law.