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HB4728 Enrolled LRB104 17598 KTG 31026 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Health Facilities Planning Act is
5 amended by adding Section 5.7 as follows:
6 (20 ILCS 3960/5.7 new)
7 Sec. 5.7. Developmental disability facility ownership
8 disclosures.
9 (a) This Section applies to the following entities and
10 facilities:
11 (1) providers of adult developmental training services
12 required to be licensed under the Mental Health and
13 Developmental Disabilities Administrative Act;
14 (2) community living facilities required to be
15 licensed under the Community Living Facilities Licensing
16 Act;
17 (3) facilities required to be licensed under the MC/DD
18 Act;
19 (4) facilities required to be licensed under the ID/DD
20 Community Care Act;
21 (5) community developmental services agencies required
22 to be licensed under the Community-Integrated Living
23 Arrangements Licensure and Certification Act; and
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1 (6) institutions and group homes for children required
2 to be licensed under the Child Care Act of 1969.
3 (b) As used in this Section:
4 "Asset management company" means any business primarily
5 engaged in managing and investing client funds in assets,
6 including, but not limited to, securities, equities, stocks,
7 bonds, real estate, investment funds, mutual funds,
8 exchange-traded funds, hedge funds, private equity funds, and
9 venture capital.
10 "Financially distressed" means any time at which an entity
11 subject to this Section, its subsidiaries, its affiliates, its
12 parent companies, or any contractual service providers under
13 control of the entity, its subsidiaries, its affiliates, or
14 its parent companies are owned, managed, or contained within a
15 fund that is owned or managed by an asset management company
16 and:
17 (1) fail to timely meet payroll obligations for a
18 period of more than 90 days;
19 (2) initiate dissolution or close;
20 (3) are behind on rent payments for a period of more
21 than 90 days;
22 (4) have defaulted on a loan for a period of more than
23 90 days;
24 (5) are the subject of either (i) an order for relief
25 under Title 11 of the United States Code on behalf of the
26 facility, its subsidiaries, its its affiliates, its parent
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1 companies, or contractual service providers under control
2 of the entity, its subsidiaries, its affiliates, or its
3 parent companies or (ii) the commencement of any other
4 insolvency proceeding;
5 (6) have their ratio of total liabilities to earnings
6 before interest, taxes, depreciation, and amortization
7 (EBITDA) either:
8 (A) increase over 4 consecutive quarters to a
9 debt-to-EBITDA ratio greater than 4; or
10 (B) experience an increase over 3 consecutive
11 quarters if its initial debt-to-EBITDA ratio was
12 greater than 4.
13 (c)(1) Each entity subject to this Section shall, upon the
14 effective date of this amendatory Act of the 104th General
15 Assembly and upon application for initial licensure or
16 certification under its respective regulatory Act thereafter,
17 certify to the Board, on a form provided by the Board, whether
18 the entity, its subsidiaries, its affiliates, its parent
19 companies, or any contractual service providers under control
20 of the entity, its subsidiaries, its affiliates, or its parent
21 companies are owned, managed, or contained within a fund owned
22 or managed by an asset management company. Additionally, each
23 entity subject to this Section that is subject to a pending
24 transaction that would result in the entity, its subsidiaries,
25 its affiliates, its parent companies, or any contractual
26 service providers under control of the entity, its
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1 subsidiaries, its affiliates, or its parent companies being
2 owned, managed, or contained within a fund owned or managed by
3 an asset management company, must notify the Board of the
4 transaction not less than 90 days prior to the transaction
5 taking effect.
6 (2) Each entity subject to this Section, its subsidiaries,
7 its affiliates, its parent companies, or any contractual
8 service providers under control of the entity, its
9 subsidiaries, its affiliates, or its parent companies that are
10 owned, managed, or contained within a fund owned or managed by
11 an asset management company shall be required to disclose, on
12 a quarterly basis and on forms prescribed by the Board: (i) the
13 name of the asset management company, the address of its
14 headquarters, relevant general partners, portfolio or fund
15 managers, or board members or directors administering,
16 managing, or overseeing the entity, and the name of the fund,
17 where applicable; (ii) the size of the asset management
18 company's assets under management; (iii) individuals and
19 institutions with interests in the entity, its subsidiaries,
20 its affiliates, its parent companies, contractual service
21 providers under control of the entity, its subsidiaries, its
22 affiliates, or its parent companies, and the fund containing
23 the same; (iv) total liabilities held, individually, by the
24 entity, its subsidiaries, its affiliates, its parent
25 companies, and contractual service providers under control of
26 the entity, its subsidiaries, its affiliates, or its parent
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1 companies; (v) the quarterly EBITDA, individually, of the
2 entity, its subsidiaries, its affiliates, its parent
3 companies, and contractual service providers under control of
4 the entity, its subsidiaries, its affiliates, or its parent
5 companies; (vi) fees and payments, and rates for the same,
6 collected by the asset management company, its subsidiaries,
7 its affiliates, its parent companies, partners, contractual
8 service providers under control of the entity, its
9 subsidiaries, its affiliates, or its parent companies for
10 goods or services provided to the entity, its subsidiaries,
11 its affiliates, its parent companies, contractual service
12 providers under control of the entity, its subsidiaries, its
13 affiliates, or its parent companies, and the fund containing
14 the same; and (vii) the number of full-time and part-time
15 employees and contractors, grouped by job classification,
16 employed or under contract with the entity, its subsidiaries,
17 its affiliates, its parent companies, contractual service
18 providers under control of the entity, its subsidiaries, its
19 affiliates, or its parent companies and, where applicable,
20 labor organizations representing the same.
21 (3) Entities subject to this Section that are owned,
22 managed, or contained within a fund owned or managed by an
23 asset management company, shall, not less than 90 days prior
24 to entering into the transaction or agreement, provide the
25 Board with written notice of transactions, and copies of
26 agreements, that would (i) sell, transfer, lease, exchange,
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1 option, encumber, convey, or otherwise dispose of a material
2 amount of the assets of the entity, its subsidiaries, its
3 affiliates, its parent companies, or contractual service
4 providers under control of the entity, its subsidiaries, its
5 affiliates, or its parent companies, to one or more entities
6 or (ii) transfer control, responsibility, or governance of a
7 material amount of the assets or operations of the entity, its
8 subsidiaries, its affiliates, its parent companies, or
9 contractual service providers under control of the entity, its
10 subsidiaries, its affiliates, or its parent companies, to one
11 or more entities. The actions subject to this subsection
12 include, but are not limited to, issuing debt-funded
13 dividends, paying management fees or similar fees or costs,
14 and issuing dividends.
15 (4) An entity subject to this Section that is owned,
16 managed, or contained within a fund owned or managed by an
17 asset management company, its parent companies, or an asset
18 management company that owns or manages the provider, its
19 subsidiaries, affiliated entities, parent companies,
20 contractual service providers under control of the entity, its
21 subsidiaries, its affiliates, or its parent companies, or a
22 fund containing the same, when providing notice to the Board
23 as required under paragraph (3) shall certify to the Board
24 that the transaction or agreement will not cause the entity,
25 its subsidiaries, affiliated entities, parent companies,
26 contractual service providers under control of the entity, its
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1 subsidiaries, its affiliates, or its parent companies, or the
2 fund containing the same, to become financially distressed.
3 (d) The Board shall publish disclosures, written notices,
4 and copies of agreements submitted in accordance with this
5 Section, upon receipt, on its website for public viewing. The
6 Board shall not assume any liability for any information
7 disclosed or not disclosed by the entity under this Section.
8 (e) An entity subject to this Section that fails to
9 provide any of the above required information to the Board as
10 required by this Section, or knowingly provides false
11 information, shall be subject to a penalty not to exceed
12 $50,000 per violation plus an additional amount not to exceed
13 $50,000 for each 30-day period, or fraction thereof, that the
14 violation continues.
15 (f) If an entity subject to this Section is found to have
16 violated the requirements of this Section as provided in
17 subsection (e), the Board shall notify that entity's
18 respective licensing agencies.
19 Section 99. Effective date. This Act takes effect July 1,
20 2027.Every fact on this page links to its source, starting with the official bill record.