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2005 Illinois 305 ILCS 5/      Illinois Public Aid Code. Article V-b - Long-Term Care Provider Funding


      (305 ILCS 5/Art. V‑B heading)
ARTICLE V‑B.
LONG‑TERM CARE PROVIDER FUNDING

    (305 ILCS 5/5B‑1) (from Ch. 23, par. 5B‑1)
    Sec. 5B‑1. Definitions. As used in this Article, unless the context requires otherwise:
    "Fund" means the Long‑Term Care Provider Fund.
    "Long‑term care facility" means (i) a skilled nursing or intermediate long term care facility, whether public or private and whether organized for profit or not‑for‑profit, that is subject to licensure by the Illinois Department of Public Health under the Nursing Home Care Act, including a county nursing home directed and maintained under Section 5‑1005 of the Counties Code, and (ii) a part of a hospital in which skilled or intermediate long‑term care services within the meaning of Title XVIII or XIX of the Social Security Act are provided; except that the term "long‑term care facility" does not include a facility operated solely as an intermediate care facility for the mentally retarded within the meaning of Title XIX of the Social Security Act.
    "Long‑term care provider" means (i) a person licensed by the Department of Public Health to operate and maintain a skilled nursing or intermediate long‑term care facility or (ii) a hospital provider that provides skilled or intermediate long‑term care services within the meaning of Title XVIII or XIX of the Social Security Act. For purposes of this paragraph, "person" means any political subdivision of the State, municipal corporation, individual, firm, partnership, corporation, company, limited liability company, association, joint stock association, or trust, or a receiver, executor, trustee, guardian, or other representative appointed by order of any court. "Hospital provider" means a person licensed by the Department of Public Health to conduct, operate, or maintain a hospital.
    "Occupied bed days" shall be computed separately for each long‑term care facility operated or maintained by a long‑term care provider, and means the sum for all beds of the number of days during the year on which each bed is occupied by a resident (other than a resident receiving care at an intermediate care facility for the mentally retarded within the meaning of Title XIX of the Social Security Act).
    "Intergovernmental transfer payment" means the payments established under Section 15‑3 of this Code, and includes without limitation payments payable under that Section for July, August, and September of 1992.
(Source: P.A. 87‑861.)

    (305 ILCS 5/5B‑2) (from Ch. 23, par. 5B‑2)
    Sec. 5B‑2. Assessment; no local authorization to tax.
    (a) For the privilege of engaging in the occupation of long‑term care provider, an assessment is imposed upon each long‑term care provider for the State fiscal year beginning on July 1, 1992 and ending on June 30, 1993, in an amount equal to $6.30 times the number of occupied bed days for the most recent calendar year ending before the beginning of that State fiscal year. Notwithstanding any provision of any other Act to the contrary, this assessment shall be construed as a tax, but may not be added to the charges of an individual's nursing home care that is paid for in whole, or in part, by a federal, State, or combined federal‑state medical care program, except those individuals receiving Medicare Part B benefits solely.
    (b) Nothing in this amendatory Act of 1992 shall be construed to authorize any home rule unit or other unit of local government to license for revenue or impose a tax or assessment upon long‑term care providers or the occupation of long‑term care provider, or a tax or assessment measured by the income or earnings or occupied bed days of a long‑term care provider.
(Source: P.A. 87‑861.)

    (305 ILCS 5/5B‑3) (from Ch. 23, par. 5B‑3)
    Sec. 5B‑3. Exemptions. A long‑term care provider which is a county with a population of more than 3 million that makes intergovernmental transfer payments as provided in Section 15‑3 of this Code shall be exempt from the assessment imposed by Section 5B‑2 unless the exemption is adjudged to be unconstitutional or otherwise invalid, in which case the county shall pay the assessment imposed by Section 5B‑2 for all assessment periods beginning on or after July 1, 1992, and the assessment so paid shall be creditable against the intergovernmental transfer payments.
(Source: P.A. 87‑861.)

    (305 ILCS 5/5B‑4) (from Ch. 23, par. 5B‑4)
    Sec. 5B‑4. Payment of assessment; penalty.
    (a) The assessment imposed by Section 5B‑2 for a State fiscal year shall be due and payable in quarterly installments, each equalling one‑fourth of the assessment for the year, on September 30, December 31, March 31, and June 30 of the year. The Illinois Department may provide that county nursing homes directed and maintained pursuant to Section 5‑1005 of the Counties Code may meet their assessment obligation by certifying to the Illinois Department that county expenditures have been obligated for the operation of the county nursing home in an amount at least equal to the amount of the assessment.
    (b) The Illinois Department is authorized to establish delayed payment schedules for long‑term care providers that are unable to make installment payments when due under this Section due to financial difficulties, as determined by the Illinois Department.
    (c) If a long‑term care provider fails to pay the full amount of an installment when due (including any extensions granted under subsection (b)), there shall, unless waived by the Illinois Department for reasonable cause, be added to the assessment imposed by Section 5B‑2 for the State fiscal year a penalty assessment equal to the lesser of (i) 5% of the amount of the installment not paid on or before the due date plus 5% of the portion thereof remaining unpaid on the last day of each month thereafter or (ii) 100% of the installment amount not paid on or before the due date. For purposes of this subsection, payments will be credited first to unpaid installment amounts (rather than to penalty or interest), beginning with the most delinquent installments.
    (d) Nothing in this amendatory Act of 1993 shall be construed to prevent the Illinois Department from collecting all amounts due under this Article pursuant to an assessment imposed before the effective date of this amendatory Act of 1993.
(Source: P.A. 87‑861; 88‑88.)

    (305 ILCS 5/5B‑5) (from Ch. 23, par. 5B‑5)
    Sec. 5B‑5. Reporting; penalty; maintenance of records.
    (a) After December 31 of each year, and on or before March 31 of the succeeding year, every long‑term care provider subject to assessment under this Article shall file a return with the Illinois Department. The return shall report the occupied bed days for the calendar year just ended and shall be utilized by the Illinois Department to calculate the assessment for the State fiscal year commencing on the next July 1, except that the return for the State fiscal year commencing July 1, 1992 and the report of occupied bed days for calendar year 1991 shall be filed on or before September 30, 1992. The return shall be on a form prepared by the Illinois Department and shall state the following:
        (1) The name of the long‑term care provider.
        (2) The address of the long‑term care provider's
    
principal place of business from which the provider engages in the occupation of long‑term care provider in this State, and the name and address of each long‑term care facility operated or maintained by the provider in this State.
        (3) The number of occupied bed days of the long‑term
    
care provider for the calendar year just ended, the amount of assessment imposed under Section 5B‑2 for the State fiscal year for which the return is filed, and the amount of each quarterly installment to be paid during the State fiscal year.
        (4) The amount of penalty due, if any.
        (5) Other reasonable information the Illinois
    
Department requires.
    (b) If a long‑term care provider operates or maintains more than one long‑term care facility in this State, the provider may not file a single return covering all those long‑term care facilities, but shall file a separate return for each long‑term care facility and shall compute and pay the assessment for each long‑term care facility separately.
    (c) Notwithstanding any other provision in this Article, in the case of a person who ceases to operate or maintain a long‑term care facility in respect of which the person is subject to assessment under this Article as a long‑term care provider, the assessment for the State fiscal year in which the cessation occurs shall be adjusted by multiplying the assessment computed under Section 5B‑2 by a fraction, the numerator of which is the number of months in the year during which the provider operates or maintains the long‑term care facility and the denominator of which is 12. The person shall file a final, amended return with the Illinois Department not more than 90 days after the cessation reflecting the adjustment and shall pay with the final return the assessment for the year as so adjusted (to the extent not previously paid).
    (d) Notwithstanding any other provision of this Article, a provider who commences operating or maintaining a long‑term care facility shall file an initial return for the State fiscal year in which the commencement occurs within 90 days thereafter and shall pay the assessment computed under Section 5B‑2 and subsection (e) in equal installments on the due date of the return and on the regular installment due dates for the State fiscal year occurring after the due date of the initial return.
    (e) Notwithstanding any other provision of this Article, in the case of a long‑term care provider that did not operate or maintain a long‑term care facility throughout the calendar year preceding a State fiscal year, the assessment for that State fiscal year shall be computed on the basis of hypothetical occupied bed days for the full calendar year as determined by rules adopted by the Illinois Department (which may be based on annualization of the provider's actual occupied bed days for a portion of the calendar year, or the occupied bed days of a comparable facility for the year, including the same facility while operated by a prior provider).
    (f) In the case of a long‑term care provider existing as a corporation or legal entity other than an individual, the return filed by it shall be signed by its president, vice‑president, secretary, or treasurer or by its properly authorized agent.
    (g) If a long‑term care provider fails to file its return for a State fiscal year on or before the due date of the return, there shall, unless waived by the Illinois Department for reasonable cause, be added to the assessment imposed by Section 5B‑2 for the State fiscal year a penalty assessment equal to 25% of the assessment imposed for the year.
    (h) Every long‑term care provider subject to assessment under this Article shall keep records and books that will permit the determination of occupied bed days on a calendar year basis. All such books and records shall be kept in the English language and shall, at all times during business hours of the day, be subject to inspection by the Illinois Department or its duly authorized agents and employees.
(Source: P.A. 87‑861.)

    (305 ILCS 5/5B‑6) (from Ch. 23, par. 5B‑6)
    Sec. 5B‑6. Disposition of proceeds. The Illinois Department shall pay all moneys received from long‑term care providers under this Article into the Long‑Term Care Provider Fund. Upon certification by the Illinois Department to the State Comptroller of its intent to withhold from a provider under Section 5B‑7(b), the State Comptroller shall draw a warrant on the treasury or other fund held by the State Treasurer, as appropriate. The warrant shall state the amount for which the provider is entitled to a warrant, the amount of the deduction, and the reason therefor and shall direct the State Treasurer to pay the balance to the provider, all in accordance with Section 10.05 of the State Comptroller Act. The warrant also shall direct the State Treasurer to transfer the amount of the deduction so ordered from the treasury or other fund into the Long‑Term Care Provider Fund.
(Source: P.A. 87‑861.)

    (305 ILCS 5/5B‑7) (from Ch. 23, par. 5B‑7)
    Sec. 5B‑7. Administration; enforcement provisions.
    (a) To the extent practicable, the Illinois Department shall administer and enforce this Article and collect the assessments, interest, and penalty assessments imposed under this Article, using procedures employed in its administration of this Code generally and, as it deems appropriate, in a manner similar to that in which the Department of Revenue administers and collects the retailers' occupation tax under the Retailers' Occupation Tax Act ("ROTA"). Instead of certificates of registration, the Illinois Department shall establish and maintain a listing of all long‑term care providers appearing in the licensing records of the Department of Public Health, which shall show each provider's name, principal place of business, and the name and address of each long‑term care facility operated or maintained by the provider in this State. In addition, the following provisions of the Retailers' Occupation Tax Act are incorporated by reference into this Section, except that the Illinois Department and its Director (rather than the Department of Revenue and its Director) and every long‑term care provider subject to assessment measured by occupied bed days and to the return filing requirements of this Article (rather than persons subject to retailers' occupation tax measured by gross receipts from the sale of tangible personal property at retail and to the return filing requirements of ROTA) shall have the powers, duties, and rights specified in these ROTA provisions, as modified in this Section or by the Illinois Department in a manner consistent with this Article and except as manifestly inconsistent with the other provisions of this Article:
        (1) ROTA, Section 4 (examination of return; notice
    
of correction; evidence; limitations; protest and hearing), except that (i) the Illinois Department shall issue notices of assessment liability (rather than notices of tax liability as provided in ROTA, Section 4); (ii) in the case of a fraudulent return or in the case of an extended period agreed to by the Illinois Department and the long‑term care provider before the expiration of the limitation period, no notice of assessment liability shall be issued more than 3 years after the later of the due date of the return required by Section 5B‑5 or the date the return (or an amended return) was filed (rather within the period stated in ROTA, Section 4); and (iii) the penalty provisions of ROTA, Section 4 shall not apply.
        (2) ROTA, Section 5 (failure to make return; failure
    
to pay assessment), except that the penalty and interest provisions of ROTA, Section 5 shall not apply.
        (3) ROTA, Section 5a (lien; attachment; termination;
    
notice; protest; review; release of lien; status of lien).
        (4) ROTA, Section 5b (State lien notices; State lien
    
index; duties of recorder and registrar of titles).
        (5) ROTA, Section 5c (liens; certificate of release).
        (6) ROTA, Section 5d (Department not required to
    
furnish bond; claim to property attached or levied upon).
        (7) ROTA, Section 5e (foreclosure on liens;
    
enforcement).
        (8) ROTA, Section 5f (demand for payment; levy and
    
sale of property; limitation).
        (9) ROTA, Section 5g (sale of property; redemption).
        (10) ROTA, Section 5j (sales on transfers outside
    
usual course of business; report; payment of assessment; rights and duties of purchaser; penalty).
        (11) ROTA, Section 6 (erroneous payments; credit or
    
refund), provided that (i) the Illinois Department may only apply an amount otherwise subject to credit or refund to a liability arising under this Article; (ii) except in the case of an extended period agreed to by the Illinois Department and the long term care provider prior to the expiration of this limitation period, a claim for credit or refund must be filed no more than 3 years after the due date of the return required by Section 5B‑5 (rather than the time limitation stated in ROTA, Section 6); and (iii) credits or refunds shall not bear interest.
        (12) ROTA, Section 6a (claims for credit or refund).
        (13) ROTA, Section 6b (tentative determination of
    
claim; notice; hearing; review), provided that a long‑term care provider or its representative shall have 60 days (rather than 20 days) within which to file a protest and request for hearing in response to a tentative determination of claim.
        (14) ROTA, Section 6c (finality of tentative
    
determinations).
        (15) ROTA, Section 8 (investigations and hearings).
        (16) ROTA, Section 9 (witness; immunity).
        (17) ROTA, Section 10 (issuance of subpoenas;
    
attendance of witnesses; production of books and records).
        (18) ROTA, Section 11 (information confidential;
    
exceptions).
        (19) ROTA, Section 12 (rules and regulations;
    
hearing; appeals), except that a long‑term care provider shall not be required to file a bond or be subject to a lien in lieu thereof in order to seek court review under the Administrative Review Law of a final assessment or revised final assessment or the equivalent thereof issued by the Illinois Department under this Article.
    (b) In addition to any other remedy provided for and without sending a notice of assessment liability, the Illinois Department may collect an unpaid assessment by withholding, as payment of the assessment, reimbursements or other amounts otherwise payable by the Illinois Department to the provider.
(Source: P.A. 87‑861.)

    (305 ILCS 5/5B‑8) (from Ch. 23, par. 5B‑8)
    Sec. 5B‑8. Long‑Term Care Provider Fund.
    (a) There is created in the State Treasury the Long‑Term Care Provider Fund. Interest earned by the Fund shall be credited to the Fund. The Fund shall not be used to replace any moneys appropriated to the Medicaid program by the General Assembly.
    (b) The Fund is created for the purpose of receiving and disbursing moneys in accordance with this Article. Disbursements from the Fund shall be made only as follows:
        (1) For payments to skilled or intermediate nursing
    
facilities, including county nursing facilities but excluding State‑operated facilities, under Title XIX of the Social Security Act and Article V of this Code.
        (2) For the reimbursement of moneys collected by the
    
Illinois Department through error or mistake, and for making required payments under Section 5‑4.38(a)(1) if there are no moneys available for such payments in the Medicaid Long Term Care Provider Participation Fee Trust Fund.
        (3) For payment of administrative expenses incurred
    
by the Illinois Department or its agent in performing the activities authorized by this Article.
        (4) For payments of any amounts that are
    
reimbursable to the federal government for payments from this Fund that are required to be paid by State warrant.
        (5) For making transfers to the General Obligation
    
Bond Retirement and Interest Fund, as those transfers are authorized in the proceedings authorizing debt under the Short Term Borrowing Act, but transfers made under this paragraph (5) shall not exceed the principal amount of debt issued in anticipation of the receipt by the State of moneys to be deposited into the Fund.
    Disbursements from the Fund, other than transfers to the General Obligation Bond Retirement and Interest Fund, shall be by warrants drawn by the State Comptroller upon receipt of vouchers duly executed and certified by the Illinois Department.
    (c) The Fund shall consist of the following:
        (1) All moneys collected or received by the Illinois
    
Department from the long‑term care provider assessment imposed by this Article.
        (2) All federal matching funds received by the
    
Illinois Department as a result of expenditures made by the Illinois Department that are attributable to moneys deposited in the Fund.
        (3) Any interest or penalty levied in conjunction
    
with the administration of this Article.
        (4) Any balance in the Medicaid Long Term Care
    
Provider Participation Fee Fund in the State Treasury. The balance shall be transferred to the Fund upon certification by the Illinois Department to the State Comptroller that all of the disbursements required by Section 5‑4.31(b) of this Code have been made.
        (5) All other monies received for the Fund from any
    
other source, including interest earned thereon.
(Source: P.A. 89‑626, eff. 8‑9‑96.)

    (305 ILCS 5/5B‑9) (from Ch. 23, par. 5B‑9)
    Sec. 5B‑9. Applicability. The assessment imposed by Section 5B‑2 shall cease to be imposed if the amount of matching federal funds under Title XIX of the Social Security Act is eliminated or significantly reduced on account of the assessment. Assessments imposed prior thereto shall be disbursed in accordance with Section 5B‑8 to the extent federal matching is not reduced by the assessments, and any remaining assessments shall be refunded to long‑term care providers in proportion to the amounts of the assessments paid by them.
(Source: P.A. 87‑861.)

    (305 ILCS 5/5B‑10) (from Ch. 23, par. 5B‑10)
    Sec. 5B‑10. Severability. If any clause, sentence, Section, exemption, provision, or part of this Article or the application thereof to any person or circumstance shall be adjudged to be unconstitutional or otherwise invalid, the remainder of this Article or its application to persons or circumstances other than those to which it is held invalid shall not be affected thereby. This Article V‑B is intended to be separate from and independent of Articles V‑A and V‑C, and the application and validity of this Article V‑B shall not be affected by the invalidity of one or more of Articles V‑A and V‑C.
(Source: P.A. 87‑861.)

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