Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1766 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1766 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED: 30 ILCS 105/5.990 new 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2 740 ILCS 10/7.2a new740 ILCS 10/13 new Amends the Illinois Antitrust Act. Provides that documentary material, transcripts of oral testimony, or answers to interrogatories obtained in an investigation of a violation of the Act may be used by the Attorney General in any administrative or judicial action or proceeding. Provides that information voluntarily produced to the Attorney General for purposes of an investigation of a violation of the Act or information provided to the Attorney General under a notice requirement shall be treated as if produced pursuant to a subpoena for purposes of maintaining the confidentiality of such information. Provides that health care facilities that are party to a covered transaction shall provide notice of such transaction to the Attorney General no later than 60 days prior to the transaction closing or effective date of the transaction. Provides that any health care facility that fails to comply with the notice requirement is subject to a civil penalty of not more than $500 per day for each day during which the health care facility is in violation of the requirement. When the Attorney General has reason to believe that a health care facility has engaged in or is engaging in a covered transaction without complying with the notice requirement, allows the Attorney General to apply for and obtain a temporary restraining order or injunction prohibiting the health care facility from continuing its noncompliance or doing any act in furtherance thereof. Makes a conforming change in the State Finance Act. Effective January 1, 2024. LRB103 30579 LNS 57016 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1766 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED: 30 ILCS 105/5.990 new 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2 740 ILCS 10/7.2a new740 ILCS 10/13 new 30 ILCS 105/5.990 new 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2 740 ILCS 10/7.2a new 740 ILCS 10/13 new Amends the Illinois Antitrust Act. Provides that documentary material, transcripts of oral testimony, or answers to interrogatories obtained in an investigation of a violation of the Act may be used by the Attorney General in any administrative or judicial action or proceeding. Provides that information voluntarily produced to the Attorney General for purposes of an investigation of a violation of the Act or information provided to the Attorney General under a notice requirement shall be treated as if produced pursuant to a subpoena for purposes of maintaining the confidentiality of such information. Provides that health care facilities that are party to a covered transaction shall provide notice of such transaction to the Attorney General no later than 60 days prior to the transaction closing or effective date of the transaction. Provides that any health care facility that fails to comply with the notice requirement is subject to a civil penalty of not more than $500 per day for each day during which the health care facility is in violation of the requirement. When the Attorney General has reason to believe that a health care facility has engaged in or is engaging in a covered transaction without complying with the notice requirement, allows the Attorney General to apply for and obtain a temporary restraining order or injunction prohibiting the health care facility from continuing its noncompliance or doing any act in furtherance thereof. Makes a conforming change in the State Finance Act. Effective January 1, 2024. LRB103 30579 LNS 57016 b LRB103 30579 LNS 57016 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1766 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
33 30 ILCS 105/5.990 new 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2 740 ILCS 10/7.2a new740 ILCS 10/13 new 30 ILCS 105/5.990 new 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2 740 ILCS 10/7.2a new 740 ILCS 10/13 new
44 30 ILCS 105/5.990 new
55 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2
66 740 ILCS 10/7.2a new
77 740 ILCS 10/13 new
88 Amends the Illinois Antitrust Act. Provides that documentary material, transcripts of oral testimony, or answers to interrogatories obtained in an investigation of a violation of the Act may be used by the Attorney General in any administrative or judicial action or proceeding. Provides that information voluntarily produced to the Attorney General for purposes of an investigation of a violation of the Act or information provided to the Attorney General under a notice requirement shall be treated as if produced pursuant to a subpoena for purposes of maintaining the confidentiality of such information. Provides that health care facilities that are party to a covered transaction shall provide notice of such transaction to the Attorney General no later than 60 days prior to the transaction closing or effective date of the transaction. Provides that any health care facility that fails to comply with the notice requirement is subject to a civil penalty of not more than $500 per day for each day during which the health care facility is in violation of the requirement. When the Attorney General has reason to believe that a health care facility has engaged in or is engaging in a covered transaction without complying with the notice requirement, allows the Attorney General to apply for and obtain a temporary restraining order or injunction prohibiting the health care facility from continuing its noncompliance or doing any act in furtherance thereof. Makes a conforming change in the State Finance Act. Effective January 1, 2024.
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1414 1 AN ACT concerning civil law.
1515 2 Be it enacted by the People of the State of Illinois,
1616 3 represented in the General Assembly:
1717 4 Section 5. The State Finance Act is amended by adding
1818 5 Section 5.990 as follows:
1919 6 (30 ILCS 105/5.990 new)
2020 7 Sec. 5.990. The Antitrust Enforcement Fund.
2121 8 Section 10. The Illinois Antitrust Act is amended by
2222 9 changing Section 7.2 and by adding Sections 7.2a and 13 as
2323 10 follows:
2424 11 (740 ILCS 10/7.2) (from Ch. 38, par. 60-7.2)
2525 12 Sec. 7.2. (1) Whenever it appears to the Attorney General
2626 13 that any person has engaged in, is engaging in, or is about to
2727 14 engage in any act or practice prohibited by this Act, or that
2828 15 any person has assisted or participated in any agreement or
2929 16 combination of the nature described herein, he may, in his
3030 17 discretion, conduct an investigation as he deems necessary in
3131 18 connection with the matter and has the authority prior to the
3232 19 commencement of any civil or criminal action as provided for
3333 20 in the Act to subpoena witnesses, and pursuant to a subpoena
3434 21 (i) compel their attendance for the purpose of examining them
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1766 Introduced 2/9/2023, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
3939 30 ILCS 105/5.990 new 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2 740 ILCS 10/7.2a new740 ILCS 10/13 new 30 ILCS 105/5.990 new 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2 740 ILCS 10/7.2a new 740 ILCS 10/13 new
4040 30 ILCS 105/5.990 new
4141 740 ILCS 10/7.2 from Ch. 38, par. 60-7.2
4242 740 ILCS 10/7.2a new
4343 740 ILCS 10/13 new
4444 Amends the Illinois Antitrust Act. Provides that documentary material, transcripts of oral testimony, or answers to interrogatories obtained in an investigation of a violation of the Act may be used by the Attorney General in any administrative or judicial action or proceeding. Provides that information voluntarily produced to the Attorney General for purposes of an investigation of a violation of the Act or information provided to the Attorney General under a notice requirement shall be treated as if produced pursuant to a subpoena for purposes of maintaining the confidentiality of such information. Provides that health care facilities that are party to a covered transaction shall provide notice of such transaction to the Attorney General no later than 60 days prior to the transaction closing or effective date of the transaction. Provides that any health care facility that fails to comply with the notice requirement is subject to a civil penalty of not more than $500 per day for each day during which the health care facility is in violation of the requirement. When the Attorney General has reason to believe that a health care facility has engaged in or is engaging in a covered transaction without complying with the notice requirement, allows the Attorney General to apply for and obtain a temporary restraining order or injunction prohibiting the health care facility from continuing its noncompliance or doing any act in furtherance thereof. Makes a conforming change in the State Finance Act. Effective January 1, 2024.
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7575 1 under oath, (ii) require the production of any books,
7676 2 documents, records, writings or tangible things hereafter
7777 3 referred to as "documentary material" which the Attorney
7878 4 General deems relevant or material to his investigation, for
7979 5 inspection, reproducing or copying under such terms and
8080 6 conditions as hereafter set forth, (iii) require written
8181 7 answers under oath to written interrogatories, or (iv) require
8282 8 compliance with a combination of the foregoing. Any subpoena
8383 9 issued by the Attorney General shall contain the following
8484 10 information:
8585 11 (a) The statute and section thereof, the alleged
8686 12 violation of which is under investigation and the general
8787 13 subject matter of the investigation.
8888 14 (b) The date and place at which time the person is
8989 15 required to appear or produce documentary material in his
9090 16 possession, custody or control or submit answers to
9191 17 interrogatories in the office of the Attorney General
9292 18 located in Springfield or Chicago. Said date shall not be
9393 19 less than 10 days from date of service of the subpoena.
9494 20 (c) Where documentary material is required to be
9595 21 produced, the same shall be described by class so as to
9696 22 clearly indicate the material demanded.
9797 23 The Attorney General is hereby authorized, and may so
9898 24 elect, to require the production, pursuant to this section, of
9999 25 documentary material or interrogatory answers prior to the
100100 26 taking of any testimony of the person subpoenaed. Said
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111111 1 documentary material shall be made available for inspection
112112 2 and copying during normal business hours at the principal
113113 3 place of business of the person served, or at such other time
114114 4 and place, as may be agreed upon by the person served and the
115115 5 Attorney General. When documentary material is demanded by
116116 6 subpoena, said subpoena shall not:
117117 7 (i) contain any requirement which would be
118118 8 unreasonable or improper if contained in a subpoena duces
119119 9 tecum issued by a court of this State; or
120120 10 (ii) require the disclosure of any documentary
121121 11 material which would be privileged, or which for any other
122122 12 reason would not be required by a subpoena duces tecum
123123 13 issued by a court of this State.
124124 14 (2) The production of documentary material in response to
125125 15 a subpoena served pursuant to this Section shall be made under
126126 16 a sworn certificate, in such form as the subpoena designates,
127127 17 by the person, if a natural person, to whom the demand is
128128 18 directed or, if not a natural person, by a person or persons
129129 19 having knowledge of the facts and circumstances relating to
130130 20 such production, to the effect that all of the documentary
131131 21 material required by the demand and in the possession,
132132 22 custody, or control of the person to whom the demand is
133133 23 directed has been produced and made available to the
134134 24 custodian. Answers to interrogatories shall be accompanied by
135135 25 a statement under oath attesting to the accuracy of the
136136 26 answers.
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147147 1 While in the possession of the Attorney General and under
148148 2 such reasonable terms and conditions as the Attorney General
149149 3 shall prescribe: (A) documentary material shall be available
150150 4 for examination by the person who produced such material or by
151151 5 any duly authorized representative of such person, (B)
152152 6 transcript of oral testimony shall be available for
153153 7 examination by the person who produced such testimony, or his
154154 8 or her counsel and (C) answers to interrogatories shall be
155155 9 available for examination by the person who swore to their
156156 10 accuracy.
157157 11 Except as otherwise provided in this Section, no
158158 12 documentary material, transcripts of oral testimony, or
159159 13 answers to interrogatories, or copies thereof, in the
160160 14 possession of the Attorney General shall be available for
161161 15 examination by any individual other than an authorized
162162 16 employee of the Attorney General or other law enforcement
163163 17 officials, federal, State, or local, without the consent of
164164 18 the person who produced such material, transcripts, or
165165 19 interrogatory answers. Such documentary material, transcripts
166166 20 of oral testimony, or answers to interrogatories, or copies
167167 21 thereof may be used by the Attorney General in any
168168 22 administrative or judicial action or proceeding.
169169 23 For purposes of this Section, all documentary materials,
170170 24 transcripts of oral testimony, or answers to interrogatories
171171 25 obtained by the Attorney General from other law enforcement
172172 26 officials, information voluntarily produced to the Attorney
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183183 1 General for purposes of any investigation conducted under
184184 2 subsection (1), or information provided to the Attorney
185185 3 General pursuant to the notice requirement of Section 7.2a
186186 4 shall be treated as if produced pursuant to a subpoena served
187187 5 pursuant to this Section for purposes of maintaining the
188188 6 confidentiality of such information.
189189 7 (3) No person shall, with intent to avoid, evade, prevent,
190190 8 or obstruct compliance in whole or in part by any person with
191191 9 any duly served subpoena of the Attorney General under this
192192 10 Act, knowingly remove from any place, conceal, withhold,
193193 11 destroy, mutilate, alter, or by any other means falsify any
194194 12 documentary material that is the subject of such subpoena. A
195195 13 violation of this subsection is a Class A misdemeanor. The
196196 14 Attorney General, with such assistance as he may from time to
197197 15 time require of the State's Attorneys in the several counties,
198198 16 shall investigate suspected violations of this subsection and
199199 17 shall commence and try all prosecutions under this subsection.
200200 18 (Source: P.A. 96-751, eff. 1-1-10; 96-1000, eff. 7-2-10.)
201201 19 (740 ILCS 10/7.2a new)
202202 20 Sec. 7.2a. Notification to the Attorney General.
203203 21 (a) It is the intent of the General Assembly to ensure that
204204 22 competition beneficial to consumers and workers in health care
205205 23 markets across the State is vigorous and robust. When health
206206 24 care businesses compete, consumers benefit from higher quality
207207 25 services at reasonable prices, and health care workers benefit
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218218 1 from higher wages and better conditions of employment which in
219219 2 turn improves patient care. The General Assembly supports that
220220 3 intent through this Section, which provides the Attorney
221221 4 General with notice of all material health care facility
222222 5 transactions in this State. The notice requirement will give
223223 6 the Attorney General information necessary to determine
224224 7 whether an investigation under this Act is warranted to
225225 8 determine whether a proposed transaction may substantially
226226 9 lessen competition, result in anticompetitive conduct, or
227227 10 potentially harm consumers or workers. This Section is
228228 11 intended to supplement the federal Hart-Scott-Rodino Antitrust
229229 12 Improvements Act of 1976, 15 U.S.C. 18a, by requiring notice
230230 13 of transactions not reportable under Hart-Scott-Rodino
231231 14 reporting thresholds and by providing the Attorney General
232232 15 with a copy of any filings made pursuant to the
233233 16 Hart-Scott-Rodino Antitrust Improvements Act of 1976.
234234 17 (b) As used in this Section:
235235 18 "Acquisition" means an agreement, arrangement, or activity
236236 19 the consummation of which results in a person acquiring
237237 20 directly or indirectly the control of another person, and
238238 21 includes the acquisition of voting securities and noncorporate
239239 22 interests, such as assets, capital stock, membership
240240 23 interests, or equity interests.
241241 24 "Contracting affiliation" means the formation of a
242242 25 relationship between 2 or more entities that permits the
243243 26 entities to negotiate jointly with health carriers or
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254254 1 third-party administrators over rates for professional medical
255255 2 services, or for one entity to negotiate on behalf of the other
256256 3 entity with health carriers or third-party administrators over
257257 4 rates for professional medical services. "Contracting
258258 5 affiliation" does not include arrangements among entities
259259 6 under common ownership.
260260 7 "Covered transaction" means any merger, acquisition, or
261261 8 contracting affiliation between 2 or more health care
262262 9 facilities not previously under common ownership or
263263 10 contracting affiliation.
264264 11 "Health care facility" has the same meaning as provided in
265265 12 Section 3 of the Health Facilities Planning Act. "Health care
266266 13 facility" includes provider organizations as defined in this
267267 14 Section.
268268 15 "Health care services revenue" means the total revenue
269269 16 received for health care services in the previous 12 months.
270270 17 "Health carriers" has the same meaning as provided in
271271 18 Section 10 of the Health Carrier External Review Act.
272272 19 "Illinois health care facility" means a health care
273273 20 facility that has an office in or is doing business in this
274274 21 State.
275275 22 "Merger" means the consolidation of 2 or more
276276 23 organizations, including 2 or more organizations joining
277277 24 through a common parent organization or 2 or more
278278 25 organizations forming a new organization, but does not include
279279 26 a corporate reorganization.
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290290 1 "Out-of-state health care facility" means a health care
291291 2 facility that is not headquartered in this State and does not
292292 3 do business in this State.
293293 4 "Provider organization" means a corporation, partnership,
294294 5 business trust, association, or organized group of persons,
295295 6 whether incorporated or not, which is in the business of
296296 7 health care delivery or management and that represents 7 or
297297 8 more health care providers in contracting with health carriers
298298 9 or third-party administrators for the payment of health care
299299 10 services. "Provider organization" includes physician
300300 11 organizations, physician-hospital organizations, independent
301301 12 practice associations, provider networks, and accountable care
302302 13 organizations.
303303 14 "Third-party administrator" means an entity that
304304 15 administers payments for health care services on behalf of a
305305 16 client in exchange for an administrative fee.
306306 17 (c) Health care facilities that are party to a covered
307307 18 transaction shall provide notice of such transaction to the
308308 19 Attorney General no later than 60 days prior to the
309309 20 transaction closing or effective date of the transaction.
310310 21 Covered transactions between an Illinois health care
311311 22 facility and an out-of-state health care facility must provide
312312 23 notice under this subsection where the out-of-state entity
313313 24 generates $10,000,000 or more in annual revenue from patients
314314 25 residing in this State.
315315 26 (d) The written notice provided by the parties under
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326326 1 subsection (c) must include:
327327 2 (1) the names of the parties and their current
328328 3 business addresses;
329329 4 (2) identification of all locations where health care
330330 5 services are currently provided by each party;
331331 6 (3) a brief description of the nature and purpose of
332332 7 the proposed transaction;
333333 8 (4) the anticipated effective date of the proposed
334334 9 transaction;
335335 10 (5) all proposed agreements relating to the proposed
336336 11 transaction;
337337 12 (6) all agreements regarding collateral transactions
338338 13 that relate to the principal transaction; and
339339 14 (7) any reports of financial and economic analysis
340340 15 that the party reviewed or relied on in negotiating the
341341 16 proposed transaction.
342342 17 Nothing in this subsection prohibits the parties to a
343343 18 covered transaction from voluntarily providing additional
344344 19 information to the Attorney General.
345345 20 (e) Any health care facility conducting business in this
346346 21 State that files a premerger notification with the Federal
347347 22 Trade Commission or the United States Department of Justice,
348348 23 in compliance with the Hart-Scott-Rodino Antitrust
349349 24 Improvements Act of 1976, 15 U.S.C. 18a, shall provide a copy
350350 25 of such filing to the Attorney General at the same time as it
351351 26 is provided to the federal government. Providing a copy of the
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362362 1 Hart-Scott-Rodino filing to the Attorney General satisfies the
363363 2 notice requirement under subsections (c) and (d).
364364 3 (f) The Attorney General may make any requests for
365365 4 additional information from the parties within 30 days of the
366366 5 date notice is received under subsections (c) and (d). If the
367367 6 Attorney General requests additional information, the merger
368368 7 may not proceed until 30 days after the parties have
369369 8 substantially complied with the request. Nothing in this
370370 9 Section precludes the Attorney General from conducting an
371371 10 investigation or enforcing State or federal antitrust laws at
372372 11 a later date.
373373 12 (g) Any health care facility that fails to comply with any
374374 13 provision of this Section is subject to a civil penalty of not
375375 14 more than $500 per day for each day during which the health
376376 15 care facility is in violation of this Section.
377377 16 Whenever the Attorney General has reason to believe that a
378378 17 health care facility has engaged in or is engaging in a covered
379379 18 transaction without complying with the provisions of this
380380 19 Section, the Attorney General may apply for and obtain, in an
381381 20 action in the Circuit Court of Sangamon or Cook County, a
382382 21 temporary restraining order or injunction, or both,
383383 22 prohibiting the health care facility from continuing its
384384 23 noncompliance or doing any act in furtherance thereof. The
385385 24 court may make such further orders or judgments, at law or in
386386 25 equity, as may be necessary to remedy such noncompliance.
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397397 1 (740 ILCS 10/13 new)
398398 2 Sec. 13. Antitrust Enforcement Fund. Any penalties
399399 3 collected from an entity for violations of this Act shall be
400400 4 deposited into the Antitrust Enforcement Fund, a special fund
401401 5 created in the State treasury that is dedicated to enforcing
402402 6 this Act.
403403 7 Section 99. Effective date. This Act takes effect January
404404 8 1, 2024.
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