[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_SB0744
LRB9106052PTpk
1 AN ACT concerning long term health care.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Elder Care Savings Bond Act.
6 Section 5. Declaration of purpose. It is declared (i)
7 that for the benefit of the people of the State of Illinois,
8 the conduct and increase of their commerce, the protection
9 and enhancement of their welfare, the development of
10 continued prosperity, and the improvement of their health and
11 living conditions, it is essential that this and future
12 generations be given the fullest opportunity to provide for
13 their long term health care needs and (ii) that to achieve
14 these ends it is of the utmost importance that Illinois
15 residents be provided with investment alternatives to enhance
16 their financial access to long term health care. It is the
17 intent of this Act to provide to the State of Illinois an
18 alternative low cost method of borrowing for the purposes
19 authorized in the General Obligation Bond Act and to enhance
20 financial access to long term health care, all in execution
21 of the public policy set forth in this Section.
22 Section 10. Definitions. In this Act:
23 (a)(1) "Assisted living establishment" or
24 "establishment" means a home, building, residence, or any
25 other place where the services described below are provided:
26 (A) community-based residential care, including
27 housing and personal and health-related services, to
28 persons who need help with activities of daily living;
29 (B) supportive and intermittent health-related
30 services that are available 24 hours per day, if needed,
-2- LRB9106052PTpk
1 to meet scheduled and unscheduled needs of a tenant, in a
2 way that promotes self-direction and participation in
3 decisions that emphasize independence, individuality,
4 privacy, and dignity in a residential surrounding;
5 (C) sleeping accommodations for 3 or more unrelated
6 adult tenants, at least 80 percent of which are 55 years
7 of age or older; and
8 (D) all Group 1 services and one or more Group 2
9 services, whether provided directly by the establishment
10 or by another entity arranged for by the establishment
11 with the consent of the tenant or tenant's
12 representative.
13 An "assisted living establishment" or
14 "establishment" also means a home, building, residence,
15 or any other place that provides the services of items
16 (A) through (D) of this paragraph, and, in addition, any
17 Group 3 services.
18 (2) "Assisted living establishment" or "establishment"
19 does not mean:
20 (A) a home, institution, or similar place operated
21 by the federal government or the State of Illinois;
22 (B) a "long term care facility" licensed under the
23 Nursing Home Care Act. However, a long term care facility
24 may apply under this Act to convert sections of the
25 facility to assisted living. If the long term care
26 facility elects to do so, the facility retains the
27 Certificate of Need for its nursing beds that were
28 converted;
29 (C) a hospital, sanitarium, or other institution,
30 the principal activity or business of which is the
31 diagnosis, care, and treatment of human illness and that
32 is required to be licensed under the Hospital Licensing
33 Act;
34 (D) a "facility for child care" as defined in the
-3- LRB9106052PTpk
1 Child Care Act of 1969;
2 (E) a "community living facility" as defined in the
3 Community Living Facilities Licensing Act;
4 (F) a "community residential alternative" as
5 defined in the Community Residential Alternatives
6 Licensing Act;
7 (G) a nursing home or sanitarium operated solely by
8 and for persons who rely exclusively upon treatment by
9 spiritual means through prayer, in accordance with the
10 creed or tenants of a well-recognized church or religious
11 denomination;
12 (H) a facility licensed by the Department of Human
13 Services as a "community-integrated living arrangement"
14 as defined in the Community-Integrated Living
15 Arrangements Licensure and Certification Act;
16 (I) a "supportive residence" licensed under the
17 Supportive Residences Licensing Act;
18 (J) a "life care facility" as defined in the Life
19 Care Facilities Act; and
20 (K) a freestanding hospice facility.
21 (3) For the purposes of this subsection, "Group 1
22 services" include the following:
23 (A) meals provided in a dining room or the
24 tenant's own room and prepared by the establishment or
25 an outside contractor;
26 (B) housekeeping services, including but not
27 limited to vacuuming, dusting, and cleaning the kitchen
28 and bathrooms of the tenant's unit;
29 (C) security provided 24 hours each day, including
30 but not limited to locked entrances or building or
31 contract security personnel;
32 (D) an emergency communication response system,
33 which is a procedure in place 24 hours each day by which
34 a tenant can notify building management, an emergency
-4- LRB9106052PTpk
1 response vendor, or others able to respond to his or her
2 need for assistance.
3 (4) For the purposes of this subsection, "Group 2
4 services" include the following:
5 (A) personal care, including one or more of the
6 following: assistance with bathing, dressing, grooming,
7 ambulating, toileting, transferring, meal planning, and
8 personal laundry;
9 (B) medication management, including one or more of
10 the following: reminders to take medication, monitoring
11 of tenant medications, storage of medications, and
12 assisting tenants with medications set up by a family
13 member or nurse;
14 (C) intermittent health services, including one or
15 more of the following: medication administration,
16 dressing changes, catheter care, therapies, and other
17 medical, nursing, or rehabilitative care provided by
18 personnel licensed under the Home Health Agency Licensing
19 Act and by the Department of Professional Regulation.
20 (5) For the purposes of this subsection, "Group 3
21 services" include the following:
22 (A) transportation, including but not limited to
23 car or van service for shopping and medical appointments;
24 (B) a health assessment, which is a health history,
25 physical examination, risk profile, or screening by
26 licensed health care personnel;
27 (C) counseling for health, social services, and
28 nutrition by licensed personnel;
29 (D) social or educational activities, including but
30 not limited to trips, classes, lectures, and parties in
31 or outside the establishment.
32 (6) For the purposes of this subsection, "tenant" means
33 a person residing in an assisted living establishment.
34 (b) "Authority" means the Elder Care Trust Authority.
-5- LRB9106052PTpk
1 (c) "Elder Care Savings Bonds" means general obligation
2 bonds of the State issued under the General Obligation Bond
3 Act in accordance with this Act and designated as General
4 Obligation Elder Care Savings Bonds.
5 Section 15. Issuance and sale of bonds.
6 (a) In order to provide investors with investment
7 alternatives to enhance their financial access to long term
8 health care, and in furtherance of the public policy of this
9 Act, bonds authorized by the provisions of the General
10 Obligation Bond Act, in a total aggregate original principal
11 amount not to exceed $300,000,000 may be issued and sold in
12 fiscal year 2000 and the following fiscal years, from time to
13 time, and as often as practicable, as Elder Care Savings
14 Bonds in amounts directed by the Governor, upon
15 recommendation by the Director of the Bureau of the Budget.
16 Bonds to be issued and sold as Elder Care Savings Bonds shall
17 be designated by the Governor and the Director of the Bureau
18 of the Budget as "General Obligation Elder Care Savings
19 Bonds" in the proceedings authorizing the issuance of those
20 bonds and shall be subject to all of the terms and provisions
21 of the General Obligation Bond Act, except that Elder Care
22 Savings Bonds may bear interest payable at a time or times
23 and may be sold at prices and in a manner as determined by
24 the Governor and the Director of the Bureau of the Budget and
25 except as otherwise provided in this Act.
26 (b) If Elder Care Savings Bonds are sold at public sale,
27 the public sale procedures shall be as set forth in Section
28 11 of the General Obligation Bond Act. Elder Care Savings
29 Bonds may be sold at negotiated sale if the Director of the
30 Bureau of the Budget determines that a negotiated sale will
31 result in either a more efficient and economic sale of the
32 bonds or greater access to the bonds by investors who are
33 residents of the State of Illinois. If any Elder Care
-6- LRB9106052PTpk
1 Savings Bonds are sold at a negotiated sale, the underwriter
2 or underwriters to which the bonds are sold shall (i) be
3 organized, incorporated, or have their principal place of
4 business in the State of Illinois or (ii) in the judgment of
5 the Director of the Bureau of the Budget, have sufficient
6 capability to make a broad distribution of the bonds to
7 investors who reside in the State of Illinois.
8 (c) In determining the aggregate principal amount of
9 Elder Care Savings Bonds that has been issued pursuant to
10 this Act, the aggregate original principal amount of those
11 bonds issued and sold shall be taken into account.
12 (d) Any bond issued under this Act shall be payable in
13 one payment on a fixed date, unless the Governor and the
14 Director of the Bureau of the Budget determine otherwise.
15 Section 20. Security of bonds.
16 (a) Any Elder Care Savings Bonds issued under the
17 General Obligation Bond Act in accordance with this Act shall
18 be direct, general obligations of the State of Illinois and
19 subject to repayment as provided in the General Obligation
20 Bond Act. In the proceedings of the Governor and the
21 Director of the Bureau of the Budget authorizing the issuance
22 of Elder Care Savings Bonds, however, those officials may
23 covenant on behalf of the State with or for the benefit of
24 the holders of those bonds as to all matters deemed advisable
25 by those officials, including the terms and conditions for
26 creating and maintaining sinking funds, reserve funds, and
27 other special funds created in those proceedings separate and
28 apart from all other funds and accounts of the State. Those
29 officials may make other covenants deemed necessary or
30 desirable to assure the prompt payment of the principal of
31 and interest on the bonds.
32 (b) The transfers to and appropriations from the General
33 Obligation Bond Retirement and Interest Fund required by the
-7- LRB9106052PTpk
1 General Obligation Bond Act shall be made at times and in
2 amounts as determined by the Governor and the Director of the
3 Bureau of the Budget and shall be made to and from any fund
4 or funds created pursuant to this Section for the payment of
5 the principal of and interest on any Elder Care Savings
6 Bonds.
7 Section 25. Compelling payment; remedies of bondholders.
8 (a) If the State fails to pay the principal of or
9 interest on any Elder Care Savings Bonds or premium, if any,
10 as those amounts become due, or fails to make any required
11 monthly transfer of moneys to provide for the payment of the
12 principal, interest, or premium on the bonds, a civil action
13 to compel payment may be instituted in the Supreme Court of
14 Illinois as a court of original jurisdiction by the holder or
15 holders of the Elder Care Savings Bonds with respect to which
16 the default of payment or failure to make a required transfer
17 exists. Delivery of a summons and a copy of the complaint to
18 the Attorney General constitutes sufficient service to give
19 the Supreme Court of Illinois jurisdiction of the subject
20 matter of the suit and jurisdiction over the State and its
21 officers named as defendants for the purpose of compelling
22 the payment or transfer. Any case, controversy, or cause of
23 action concerning the validity of this Act relates to the
24 revenue of the State of Illinois.
25 (b) If the Supreme Court of Illinois denies the holder
26 or holders of bonds leave to file an original action in the
27 Supreme Court, the bond holder or holders may bring the
28 action in the Circuit Court of Sangamon County.
29 Section 30. Exemption from taxation. As provided in
30 this Act, the issuance of Elder Care Savings Bonds is in all
31 respects for the benefit of the People of the State of
32 Illinois, the conduct and increase of their commerce, the
-8- LRB9106052PTpk
1 protection and enhancement of their welfare, the development
2 of continued prosperity, and the improvement of their health
3 and living conditions, and the issuance of those bonds is for
4 public purposes. In consideration of those facts, Elder Care
5 Savings Bonds issued under the General Obligation Bond Act in
6 accordance with this Act and the income derived from those
7 bonds shall be free from all taxation by the State or its
8 political subdivisions, except for estate, transfer, and
9 inheritance taxes.
10 Section 35. Grant program.
11 (a) The proceedings of the Governor and the Director of
12 the Bureau of the Budget authorizing the issuance of Elder
13 Care Savings Bonds shall also provide for a grant program of
14 additional financial incentives to be provided to holders of
15 those bonds to encourage the use of the bonds and the income
16 derived from the bonds for one or more of the following
17 purposes:
18 (1) Care in a facility licensed under the Nursing
19 Home Care Act.
20 (2) Home health nursing services or home health
21 aide services provided by a home health agency licensed
22 under the Home Health Agency Licensing Act.
23 (3) Respite care as defined in the Respite Program
24 Act.
25 (4) Custodial care services.
26 (5) Care in a hospice licensed under the Hospice
27 Program Licensing Act.
28 (6) Long term health care services for the aged,
29 the disabled, or persons diagnosed as infected with HIV
30 or having AIDS or a related condition. These services
31 include, without limitation, chore-housekeeping services,
32 a personal care attendant, adult day care, assistive
33 equipment, home renovation, home-delivered meals, and
-9- LRB9106052PTpk
1 emergency response systems. As used in this paragraph,
2 "AIDS" means acquired immunodeficiency syndrome; "HIV"
3 means the Human Immunodeficiency Virus or any other
4 identified causative agent of AIDS.
5 (7) Care in an assisted living establishment.
6 (b) The grant program of financial incentives shall be
7 administered by the State Treasurer pursuant to
8 administrative rules adopted by the Treasurer. The financial
9 incentives shall be in forms determined by the Governor and
10 the Director of the Bureau of the Budget at the time of the
11 authorization of the Elder Care Savings Bonds and may
12 include, among others, supplemental payments to the holders
13 of the bonds at maturity to be applied to costs of care or
14 services specified in items (1) through (6) of subsection
15 (a). The Treasurer may establish, by rule, administrative
16 procedures and eligibility criteria for the grant program;
17 those rules must be consistent with the purposes of this Act.
18 The Treasurer may require bond holders, providers of long
19 term health care services, and other necessary parties to
20 assist in the determination of eligibility for financial
21 incentives under the grant program.
22 (c) All grants shall be subject to annual appropriation
23 of moneys for that purpose by the General Assembly.
24 Financial incentives shall be provided only if, in the sole
25 judgment of the Director of the Bureau of the Budget, the
26 cost of the incentives will not cause the cost to the State
27 of the proceeds of the Elder Care Savings Bonds being sold to
28 be increased by more than 0.5%.
29 Section 40. Education program. The State Treasurer shall
30 develop and implement an education program and marketing
31 strategies designed to inform residents of this State about
32 the options available for financing long term health care and
33 the need to accumulate the financial resources necessary to
-10- LRB9106052PTpk
1 pay for that care. The Treasurer shall report to the General
2 Assembly on the program developed and its operation before
3 May 1, 1998. The Treasurer shall adopt rules with respect to
4 his or her powers and duties under this Act.
5 Section 45. Elder Care Trust Authority.
6 (a) There is created the Elder Care Trust Authority.
7 The Authority shall consist of 11 members, 7 of whom shall be
8 appointed as follows: the Speaker and Minority Leader of the
9 House of Representatives and the President and Minority
10 Leader of the Senate shall each appoint one member, and the
11 Governor shall appoint 3 members. The State Treasurer, the
12 Director of the Bureau of the Budget, the Director of Public
13 Health, and the Director of the Illinois Economic and Fiscal
14 Commission, or their respective designees, shall each be a
15 member ex officio. The Governor and legislative leaders
16 shall give consideration to selecting members that include
17 representatives from the following categories: (i) a
18 director, officer, or employee of an entity that provides
19 long term health care services; (ii) a person having a
20 favorable reputation for skill, knowledge, and experience in
21 the field of state and municipal finance, either as a
22 partner, officer, or employee of an investment banking firm
23 that originates and purchases state and municipal securities
24 or as an officer or employee of an insurance company or bank
25 whose duties relate to the purchase of state and municipal
26 securities as an investment and to the management and control
27 of a state and municipal securities portfolio; and (iii) a
28 person experienced in and having a favorable reputation for
29 skill, knowledge, and experience in the long term health care
30 loan finance field.
31 The State Treasurer or the Treasurer's designee shall
32 serve as the chairperson of the Authority.
33 The appointed members of the Authority first appointed
-11- LRB9106052PTpk
1 shall serve for terms expiring on June 30 in 2000, 2001,
2 2002, 2003, 2004, 2005, and 2006 respectively, or until their
3 respective successors have been appointed and have qualified.
4 The initial term of each of those members shall be determined
5 by lot. Upon the expiration of the term of any member, the
6 member's successor shall be appointed for a term of 6 years
7 and until his or her successor has been appointed and has
8 qualified.
9 Any vacancy shall be filled in the manner of the original
10 appointment for the remainder of the unexpired term.
11 Any member of the Authority may be removed by the
12 appointing authority for misfeasance, malfeasance, or wilful
13 neglect of duty or other cause after notice and a public
14 hearing, unless that notice and hearing are expressly waived
15 by the member in writing.
16 Members shall be compensated from moneys appropriated to
17 the State Treasurer for their reasonable expenses actually
18 incurred in performing their duties.
19 Staff assistance shall be provided to the Authority by
20 the State Treasurer.
21 The Authority shall meet at least once each year.
22 (b) The Authority has the following responsibilities:
23 (1) To make recommendations to the Bureau of the
24 Budget regarding the marketing of Elder Care Savings
25 Bonds to ensure their broad distribution throughout the
26 State for long term health care purposes.
27 (2) To advise the Bureau of the Budget on an
28 effective advertising campaign to inform the general
29 public about Elder Care Savings Bonds and their
30 availability.
31 (3) To advise the Governor and the Director of the
32 Bureau of the Budget regarding the increments in which to
33 market the bonds, and to recommend maturity dates that
34 will make moneys available to purchasers at the time when
-12- LRB9106052PTpk
1 the moneys are needed for long term health care purposes.
2 (4) To advise the Bureau of the Budget on limits
3 that may be imposed on the amount of Elder Care Savings
4 Bonds that may be purchased by individual households.
5 (5) To advise the Bureau of the Budget on the
6 minimum denominations in which to market the Elder Care
7 Savings Bonds so that they are affordable by individuals.
8 (6) To evaluate the feasibility of staggered or
9 periodic forms of payments for Elder Care Savings Bonds,
10 and to advise the Bureau of the Budget regarding that
11 evaluation.
12 (7) After the initial sale of Elder Care Savings
13 Bonds, to assess the effectiveness of the program and
14 recommend constructive changes to the Bureau of the
15 Budget regarding future bond sales.
16 (8) To study and review alternative investment
17 instruments with respect to their suitability for a long
18 term health care savings program.
19 (9) To make recommendations to the General Assembly
20 regarding statutory changes that the Authority deems
21 necessary or desirable.
22 Section 105. The General Obligation Bond Act is amended
23 by changing Section 2 as follows:
24 (30 ILCS 330/2) (from Ch. 127, par. 652)
25 Sec. 2. Authorization for Bonds. The State of Illinois
26 is authorized to issue, sell and provide for the retirement
27 of General Obligation Bonds of the State of Illinois in the
28 total amount of $11,195,296,392 $10,895,296,392 herein called
29 "Bonds".
30 Of the total amount of bonds authorized above, up to
31 $2,200,000,000 in aggregate original principal amount may be
32 issued and sold in accordance with the Baccalaureate Savings
-13- LRB9106052PTpk
1 Act in the form of General Obligation College Savings Bonds.
2 Of the total amount of bonds authorized above, up to
3 $300,000,000 in aggregate original principal amount may be
4 issued and sold in accordance with the Retirement Savings Act
5 in the form of General Obligation Retirement Savings Bonds.
6 Of the total amount of bonds authorized above, up to
7 $300,000,000 in aggregate original principal amount may be
8 issued and sold in accordance with the Elder Care Savings
9 Bond Act in the form of General Obligation Elder Care Savings
10 Bonds.
11 The issuance and sale of Bonds pursuant to the General
12 Obligation Bond Act is an economical and efficient method of
13 financing the capital needs of the State. This Act will
14 permit the issuance of a multi-purpose General Obligation
15 Bond with uniform terms and features. This will not only
16 lower the cost of registration but also reduce the overall
17 cost of issuing debt by improving the marketability of
18 Illinois General Obligation Bonds.
19 Bonds shall be issued for the categories and specific
20 purposes expressed in Sections 2 through 8 and Section 16 of
21 this Act.
22 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549,
23 eff. 12-8-97; 90-586, eff. 6-4-98.)
24 Section 999. Effective date. This Act takes effect upon
25 becoming law.