Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2955 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2955 Introduced 1/31/2024, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-86210 ILCS 76/10210 ILCS 76/20 Amends the Property Tax Code. Provides that the assessor shall publish the assessed value of all property that qualifies for a hospital exemption under the Code in the taxable year as well as the estimated property tax liability for that property. Provides that general services, such as health fairs or the preparation and distribution of marketing materials, shall not qualify as a reimbursable cost when determining whether property qualifies for the hospital exemption. Provides that, when calculating the hospital exemption, discounts provided to managed care organizations or commercial insurers are not included unless those services are provided directly pursuant to a contract with the Department of Healthcare and Family Services. Provides that no more than 30% of the total services being claimed as a benefit may be related to residency programs or research. Provides that no more than 50% of the total services being claimed as a benefit may be related to government-sponsored health care. Amends the Community Benefits Act. Makes changes to the definition of "charity care." Provides that the Attorney General shall post certain reports on the Attorney General's website. LRB103 38486 HLH 68622 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2955 Introduced 1/31/2024, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED: 35 ILCS 200/15-86210 ILCS 76/10210 ILCS 76/20 35 ILCS 200/15-86 210 ILCS 76/10 210 ILCS 76/20 Amends the Property Tax Code. Provides that the assessor shall publish the assessed value of all property that qualifies for a hospital exemption under the Code in the taxable year as well as the estimated property tax liability for that property. Provides that general services, such as health fairs or the preparation and distribution of marketing materials, shall not qualify as a reimbursable cost when determining whether property qualifies for the hospital exemption. Provides that, when calculating the hospital exemption, discounts provided to managed care organizations or commercial insurers are not included unless those services are provided directly pursuant to a contract with the Department of Healthcare and Family Services. Provides that no more than 30% of the total services being claimed as a benefit may be related to residency programs or research. Provides that no more than 50% of the total services being claimed as a benefit may be related to government-sponsored health care. Amends the Community Benefits Act. Makes changes to the definition of "charity care." Provides that the Attorney General shall post certain reports on the Attorney General's website. LRB103 38486 HLH 68622 b LRB103 38486 HLH 68622 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2955 Introduced 1/31/2024, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 200/15-86210 ILCS 76/10210 ILCS 76/20 35 ILCS 200/15-86 210 ILCS 76/10 210 ILCS 76/20
4	4	35 ILCS 200/15-86
5	5	210 ILCS 76/10
6	6	210 ILCS 76/20
7	7	Amends the Property Tax Code. Provides that the assessor shall publish the assessed value of all property that qualifies for a hospital exemption under the Code in the taxable year as well as the estimated property tax liability for that property. Provides that general services, such as health fairs or the preparation and distribution of marketing materials, shall not qualify as a reimbursable cost when determining whether property qualifies for the hospital exemption. Provides that, when calculating the hospital exemption, discounts provided to managed care organizations or commercial insurers are not included unless those services are provided directly pursuant to a contract with the Department of Healthcare and Family Services. Provides that no more than 30% of the total services being claimed as a benefit may be related to residency programs or research. Provides that no more than 50% of the total services being claimed as a benefit may be related to government-sponsored health care. Amends the Community Benefits Act. Makes changes to the definition of "charity care." Provides that the Attorney General shall post certain reports on the Attorney General's website.
8	8	LRB103 38486 HLH 68622 b LRB103 38486 HLH 68622 b
9	9	LRB103 38486 HLH 68622 b
10	10	A BILL FOR
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13	13	1 AN ACT concerning revenue.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Property Tax Code is amended by changing
17	17	5 Section 15-86 as follows:
18	18	6 (35 ILCS 200/15-86)
19	19	7 Sec. 15-86. Exemptions related to access to hospital and
20	20	8 health care services by low-income and underserved
21	21	9 individuals.
22	22	10 (a) The General Assembly finds:
23	23	11 (1) (Blank). Despite the Supreme Court's decision in
24	24	12 Provena Covenant Medical Center v. Dept. of Revenue, 236
25	25	13 Ill.2d 368, there is considerable uncertainty surrounding
26	26	14 the test for charitable property tax exemption, especially
27	27	15 regarding the application of a quantitative or monetary
28	28	16 threshold. In Provena, the Department stated that the
29	29	17 primary basis for its decision was the hospital's
30	30	18 inadequate amount of charitable activity, but the
31	31	19 Department has not articulated what constitutes an
32	32	20 adequate amount of charitable activity. After Provena, the
33	33	21 Department denied property tax exemption applications of 3
34	34	22 more hospitals, and, on the effective date of this
35	35	23 amendatory Act of the 97th General Assembly, at least 20
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2955 Introduced 1/31/2024, by Sen. Ann Gillespie SYNOPSIS AS INTRODUCED:
40	40	35 ILCS 200/15-86210 ILCS 76/10210 ILCS 76/20 35 ILCS 200/15-86 210 ILCS 76/10 210 ILCS 76/20
41	41	35 ILCS 200/15-86
42	42	210 ILCS 76/10
43	43	210 ILCS 76/20
44	44	Amends the Property Tax Code. Provides that the assessor shall publish the assessed value of all property that qualifies for a hospital exemption under the Code in the taxable year as well as the estimated property tax liability for that property. Provides that general services, such as health fairs or the preparation and distribution of marketing materials, shall not qualify as a reimbursable cost when determining whether property qualifies for the hospital exemption. Provides that, when calculating the hospital exemption, discounts provided to managed care organizations or commercial insurers are not included unless those services are provided directly pursuant to a contract with the Department of Healthcare and Family Services. Provides that no more than 30% of the total services being claimed as a benefit may be related to residency programs or research. Provides that no more than 50% of the total services being claimed as a benefit may be related to government-sponsored health care. Amends the Community Benefits Act. Makes changes to the definition of "charity care." Provides that the Attorney General shall post certain reports on the Attorney General's website.
45	45	LRB103 38486 HLH 68622 b LRB103 38486 HLH 68622 b
46	46	LRB103 38486 HLH 68622 b
47	47	A BILL FOR
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53	53	35 ILCS 200/15-86
54	54	210 ILCS 76/10
55	55	210 ILCS 76/20
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74	74	1 other hospitals are awaiting rulings on applications for
75	75	2 property tax exemption.
76	76	3 (2) (Blank). In Provena, two Illinois Supreme Court
77	77	4 justices opined that "setting a monetary or quantum
78	78	5 standard is a complex decision which should be left to our
79	79	6 legislature, should it so choose". The Appellate Court in
80	80	7 Provena stated: "The language we use in the State of
81	81	8 Illinois to determine whether real property is used for a
82	82	9 charitable purpose has its genesis in our 1870
83	83	10 Constitution. It is obvious that such language may be
84	84	11 difficult to apply to the modern face of our nation's
85	85	12 health care delivery systems". The court noted the many
86	86	13 significant changes in the health care system since that
87	87	14 time, but concluded that taking these changes into account
88	88	15 is a matter of public policy, and "it is the legislature's
89	89	16 job, not ours, to make public policy".
90	90	17 (3) It is essential to ensure that tax exemption law
91	91	18 relating to hospitals accounts for the complexities of the
92	92	19 modern health care delivery system. Health care is moving
93	93	20 beyond the walls of the hospital. In addition to treating
94	94	21 individual patients, hospitals are assuming responsibility
95	95	22 for improving the health status of communities and
96	96	23 populations. Low-income and underserved communities
97	97	24 benefit disproportionately by these activities.
98	98	25 (4) (Blank). The Supreme Court has explained that:
99	99	26 "the fundamental ground upon which all exemptions in favor
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110	110	1 of charitable institutions are based is the benefit
111	111	2 conferred upon the public by them, and a consequent
112	112	3 relief, to some extent, of the burden upon the state to
113	113	4 care for and advance the interests of its citizens".
114	114	5 Hospitals relieve the burden of government in many ways,
115	115	6 but most significantly through their participation in and
116	116	7 substantial financial subsidization of the Illinois
117	117	8 Medicaid program, which could not operate without the
118	118	9 participation and partnership of Illinois hospitals.
119	119	10 (5) Working with the Illinois hospital community and
120	120	11 other interested parties, the General Assembly has
121	121	12 developed a comprehensive combination of related
122	122	13 legislation that addresses hospital property tax
123	123	14 exemption, significantly increases access to free health
124	124	15 care for indigent persons, and strengthens the Medical
125	125	16 Assistance program. It is the intent of the General
126	126	17 Assembly to establish a new category of ownership for
127	127	18 charitable property tax exemption to be applied to
128	128	19 not-for-profit hospitals and hospital affiliates in lieu
129	129	20 of the existing ownership category of "institutions of
130	130	21 public charity". It is also the intent of the General
131	131	22 Assembly to establish quantifiable standards for the
132	132	23 issuance of charitable exemptions for such property. It is
133	133	24 not the intent of the General Assembly to declare any
134	134	25 property exempt ipso facto, but rather to establish
135	135	26 criteria to be applied to the facts on a case-by-case
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146	146	1 basis.
147	147	2 (b) For the purpose of this Section and Section 15-10, the
148	148	3 following terms shall have the meanings set forth below:
149	149	4 (1) "Hospital" means any institution, place, building,
150	150	5 buildings on a campus, or other health care facility
151	151	6 located in Illinois that is licensed under the Hospital
152	152	7 Licensing Act and has a hospital owner.
153	153	8 (2) "Hospital owner" means a not-for-profit
154	154	9 corporation that is the titleholder of a hospital, or the
155	155	10 owner of the beneficial interest in an Illinois land trust
156	156	11 that is the titleholder of a hospital.
157	157	12 (3) "Hospital affiliate" means any corporation,
158	158	13 partnership, limited partnership, joint venture, limited
159	159	14 liability company, association or other organization,
160	160	15 other than a hospital owner, that directly or indirectly
161	161	16 controls, is controlled by, or is under common control
162	162	17 with one or more hospital owners and that supports, is
163	163	18 supported by, or acts in furtherance of the exempt health
164	164	19 care purposes of at least one of those hospital owners'
165	165	20 hospitals.
166	166	21 (4) "Hospital system" means a hospital and one or more
167	167	22 other hospitals or hospital affiliates related by common
168	168	23 control or ownership.
169	169	24 (5) "Control" relating to hospital owners, hospital
170	170	25 affiliates, or hospital systems means possession, direct
171	171	26 or indirect, of the power to direct or cause the direction
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182	182	1 of the management and policies of the entity, whether
183	183	2 through ownership of assets, membership interest, other
184	184	3 voting or governance rights, by contract or otherwise.
185	185	4 (6) "Hospital applicant" means a hospital owner or
186	186	5 hospital affiliate that files an application for a
187	187	6 property tax exemption pursuant to Section 15-5 and this
188	188	7 Section.
189	189	8 (7) "Relevant hospital entity" means (A) the hospital
190	190	9 owner, in the case of a hospital applicant that is a
191	191	10 hospital owner, and (B) at the election of a hospital
192	192	11 applicant that is a hospital affiliate, either (i) the
193	193	12 hospital affiliate or (ii) the hospital system to which
194	194	13 the hospital applicant belongs, including any hospitals or
195	195	14 hospital affiliates that are related by common control or
196	196	15 ownership.
197	197	16 (8) "Subject property" means property for which a
198	198	17 hospital applicant files an application for an exemption
199	199	18 pursuant to Section 15-5 and this Section.
200	200	19 (9) "Hospital year" means the fiscal year of the
201	201	20 relevant hospital entity, or the fiscal year of one of the
202	202	21 hospital owners in the hospital system if the relevant
203	203	22 hospital entity is a hospital system with members with
204	204	23 different fiscal years, that ends in the year for which
205	205	24 the exemption is sought.
206	206	25 (c) A hospital applicant satisfies the conditions for an
207	207	26 exemption under this Section with respect to the subject
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218	218	1 property, and shall be issued a charitable exemption for that
219	219	2 property, if the value of services or activities listed in
220	220	3 subsection (e) for the hospital year equals or exceeds the
221	221	4 relevant hospital entity's estimated property tax liability,
222	222	5 as determined under subsection (g), for the year for which
223	223	6 exemption is sought. For purposes of making the calculations
224	224	7 required by this subsection (c), if the relevant hospital
225	225	8 entity is a hospital owner that owns more than one hospital,
226	226	9 the value of the services or activities listed in subsection
227	227	10 (e) shall be calculated on the basis of only those services and
228	228	11 activities relating to the hospital that includes the subject
229	229	12 property, and the relevant hospital entity's estimated
230	230	13 property tax liability shall be calculated only with respect
231	231	14 to the properties comprising that hospital. In the case of a
232	232	15 multi-state hospital system or hospital affiliate, the value
233	233	16 of the services or activities listed in subsection (e) shall
234	234	17 be calculated on the basis of only those services and
235	235	18 activities that occur in Illinois and the relevant hospital
236	236	19 entity's estimated property tax liability shall be calculated
237	237	20 only with respect to its property located in Illinois.
238	238	21 Notwithstanding any other provisions of this Act, any
239	239	22 parcel or portion thereof, that is owned by a for-profit
240	240	23 entity whether part of the hospital system or not, or that is
241	241	24 leased, licensed or operated by a for-profit entity regardless
242	242	25 of whether healthcare services are provided on that parcel
243	243	26 shall not qualify for exemption. If a parcel has both exempt
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254	254	1 and non-exempt uses, an exemption may be granted for the
255	255	2 qualifying portion of that parcel. In the case of parking lots
256	256	3 and common areas serving both exempt and non-exempt uses those
257	257	4 parcels or portions thereof may qualify for an exemption in
258	258	5 proportion to the amount of qualifying use.
259	259	6 (d) The hospital applicant shall include information in
260	260	7 its exemption application establishing that it satisfies the
261	261	8 requirements of subsection (c). For purposes of making the
262	262	9 calculations required by subsection (c), the hospital
263	263	10 applicant may for each year elect to use either (1) the value
264	264	11 of the services or activities listed in subsection (e) for the
265	265	12 hospital year or (2) the average value of those services or
266	266	13 activities for the 3 fiscal years ending with the hospital
267	267	14 year. If the relevant hospital entity has been in operation
268	268	15 for less than 3 completed fiscal years, then the latter
269	269	16 calculation, if elected, shall be performed on a pro rata
270	270	17 basis.
271	271	18 (e) Services that address the health care needs of
272	272	19 low-income or underserved individuals or relieve the burden of
273	273	20 government with regard to health care services. The following
274	274	21 services and activities shall be considered for purposes of
275	275	22 making the calculations required by subsection (c):
276	276	23 (1) Charity care. Free or discounted services provided
277	277	24 pursuant to the relevant hospital entity's financial
278	278	25 assistance policy, measured at cost, including discounts
279	279	26 provided under the Hospital Uninsured Patient Discount
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290	290	1 Act.
291	291	2 (2) Health services to low-income and underserved
292	292	3 individuals. Other unreimbursed costs of the relevant
293	293	4 hospital entity for providing without charge, paying for,
294	294	5 or subsidizing goods, activities, or services for the
295	295	6 purpose of addressing the health of low-income or
296	296	7 underserved individuals. Those activities or services may
297	297	8 include, but are not limited to: financial or in-kind
298	298	9 support to affiliated or unaffiliated hospitals, hospital
299	299	10 affiliates, community clinics, or programs that treat
300	300	11 low-income or underserved individuals; paying for or
301	301	12 subsidizing health care professionals who care for
302	302	13 low-income or underserved individuals; providing or
303	303	14 subsidizing outreach or educational services to low-income
304	304	15 or underserved individuals for disease management and
305	305	16 prevention; free or subsidized goods, supplies, or
306	306	17 services needed by low-income or underserved individuals
307	307	18 because of their medical condition; and prenatal or
308	308	19 childbirth outreach services to low-income or underserved
309	309	20 persons. General services, such as health fairs or the
310	310	21 preparation and distribution of marketing materials, shall
311	311	22 not qualify as reimbursable costs under this subsection.
312	312	23 (3) Subsidy of State or local governments. Direct or
313	313	24 indirect financial or in-kind subsidies of State or local
314	314	25 governments by the relevant hospital entity that pay for
315	315	26 or subsidize activities or programs related to health care
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326	326	1 for low-income or underserved individuals.
327	327	2 (4) Support for State health care programs for
328	328	3 low-income individuals. At the election of the hospital
329	329	4 applicant for each applicable year, either (A) 10% of
330	330	5 payments to the relevant hospital entity and any hospital
331	331	6 affiliate designated by the relevant hospital entity
332	332	7 (provided that such hospital affiliate's operations
333	333	8 provide financial or operational support for or receive
334	334	9 financial or operational support from the relevant
335	335	10 hospital entity) under Medicaid or other means-tested
336	336	11 programs, including, but not limited to, General
337	337	12 Assistance, the Covering ALL KIDS Health Insurance Act,
338	338	13 and the State Children's Health Insurance Program or (B)
339	339	14 the amount of subsidy provided by the relevant hospital
340	340	15 entity and any hospital affiliate designated by the
341	341	16 relevant hospital entity (provided that such hospital
342	342	17 affiliate's operations provide financial or operational
343	343	18 support for or receive financial or operational support
344	344	19 from the relevant hospital entity) to State or local
345	345	20 government in treating Medicaid recipients and recipients
346	346	21 of means-tested programs, including but not limited to
347	347	22 General Assistance, the Covering ALL KIDS Health Insurance
348	348	23 Act, and the State Children's Health Insurance Program.
349	349	24 The amount of subsidy for purposes of this item (4) is
350	350	25 calculated in the same manner as unreimbursed costs are
351	351	26 calculated for Medicaid and other means-tested government
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362	362	1 programs in the Schedule H of IRS Form 990 in effect on the
363	363	2 effective date of this amendatory Act of the 97th General
364	364	3 Assembly; provided, however, that in any event
365	365	4 unreimbursed costs shall be net of fee-for-services
366	366	5 payments, payments from managed care organizations,
367	367	6 payments pursuant to an assessment, quarterly payments,
368	368	7 and all other payments included on the schedule H of the
369	369	8 IRS form 990.
370	370	9 (5) Dual-eligible subsidy. The amount of subsidy
371	371	10 provided to government by treating dual-eligible
372	372	11 Medicare/Medicaid patients. The amount of subsidy for
373	373	12 purposes of this item (5) is calculated by multiplying the
374	374	13 relevant hospital entity's unreimbursed costs for
375	375	14 Medicare, calculated in the same manner as determined in
376	376	15 the Schedule H of IRS Form 990 in effect on the effective
377	377	16 date of this amendatory Act of the 97th General Assembly,
378	378	17 by the relevant hospital entity's ratio of dual-eligible
379	379	18 patients to total Medicare patients.
380	380	19 (6) Relief of the burden of government related to
381	381	20 health care of low-income individuals. Except to the
382	382	21 extent otherwise taken into account in this subsection,
383	383	22 the portion of unreimbursed costs of the relevant hospital
384	384	23 entity attributable to providing, paying for, or
385	385	24 subsidizing goods, activities, or services that relieve
386	386	25 the burden of government related to health care for
387	387	26 low-income individuals. Such activities or services shall
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398	398	1 include, but are not limited to, providing emergency,
399	399	2 trauma, burn, neonatal, psychiatric, rehabilitation, or
400	400	3 other special services; providing medical education; and
401	401	4 conducting medical research or training of health care
402	402	5 professionals. The portion of those unreimbursed costs
403	403	6 attributable to benefiting low-income individuals shall be
404	404	7 determined using the ratio calculated by adding the
405	405	8 relevant hospital entity's costs attributable to charity
406	406	9 care, Medicaid, other means-tested government programs,
407	407	10 Medicare patients with disabilities under age 65, and
408	408	11 dual-eligible Medicare/Medicaid patients and dividing that
409	409	12 total by the relevant hospital entity's total costs. Such
410	410	13 costs for the numerator and denominator shall be
411	411	14 determined by multiplying gross charges by the cost to
412	412	15 charge ratio taken from the hospitals' most recently filed
413	413	16 Medicare cost report (CMS 2252-10 Worksheet C, Part I). In
414	414	17 the case of emergency services, the ratio shall be
415	415	18 calculated using costs (gross charges multiplied by the
416	416	19 cost to charge ratio taken from the hospitals' most
417	417	20 recently filed Medicare cost report (CMS 2252-10 Worksheet
418	418	21 C, Part I)) of patients treated in the relevant hospital
419	419	22 entity's emergency department.
420	420	23 (7) Any other activity by the relevant hospital entity
421	421	24 that the Department determines relieves the burden of
422	422	25 government or addresses the health of low-income or
423	423	26 underserved individuals.
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434	434	1 (f) For purposes of making the calculations required by
435	435	2 subsections (c) and (e):
436	436	3 (1) particular services or activities eligible for
437	437	4 consideration under any of the paragraphs (1) through (7)
438	438	5 of subsection (e) may not be counted under more than one of
439	439	6 those paragraphs; and
440	440	7 (2) the amount of unreimbursed costs and the amount of
441	441	8 subsidy shall not be reduced by restricted or unrestricted
442	442	9 payments received by the relevant hospital entity as
443	443	10 contributions deductible under Section 170(a) of the
444	444	11 Internal Revenue Code; .
445	445	12 (3) discounts provided to managed care organizations
446	446	13 or commercial insurers shall not be included unless those
447	447	14 services are provided directly pursuant to a contract
448	448	15 between the managed care organization and the Department
449	449	16 of Healthcare and Family Services or the commercial
450	450	17 insurer and the Department of Healthcare and Family
451	451	18 Services;
452	452	19 (4) no more than 30% of the total services being
453	453	20 claimed as a benefit may be related to residency programs
454	454	21 or research; and
455	455	22 (5) no more than 50% of the total services being
456	456	23 claimed as a benefit may be related to
457	457	24 government-sponsored health care.
458	458	25 (g) Estimation of Exempt Property Tax Liability. The
459	459	26 estimated property tax liability used for the determination in
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470	470	1 subsection (c) shall be calculated as follows:
471	471	2 (1) "Estimated property tax liability" means the
472	472	3 estimated dollar amount of property tax that would be
473	473	4 owed, with respect to the exempt portion of each of the
474	474	5 relevant hospital entity's properties that are already
475	475	6 fully or partially exempt, or for which an exemption in
476	476	7 whole or in part is currently being sought, and then
477	477	8 aggregated as applicable, as if the exempt portion of
478	478	9 those properties were subject to tax, calculated with
479	479	10 respect to each such property by multiplying:
480	480	11 (A) the lesser of (i) the actual assessed value,
481	481	12 if any, of the portion of the property for which an
482	482	13 exemption is sought or (ii) an estimated assessed
483	483	14 value of the exempt portion of such property as
484	484	15 determined in item (2) of this subsection (g), by:
485	485	16 (B) the applicable State equalization rate
486	486	17 (yielding the equalized assessed value), by
487	487	18 (C) the applicable tax rate.
488	488	19 (2) The estimated assessed value of the exempt portion
489	489	20 of the property equals the sum of (i) the estimated fair
490	490	21 market value of buildings on the property, as determined
491	491	22 in accordance with subparagraphs (A) and (B) of this item
492	492	23 (2), multiplied by the applicable assessment factor, and
493	493	24 (ii) the estimated assessed value of the land portion of
494	494	25 the property, as determined in accordance with
495	495	26 subparagraph (C).
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506	506	1 (A) The "estimated fair market value of buildings
507	507	2 on the property" means the replacement value of any
508	508	3 exempt portion of buildings on the property, minus
509	509	4 depreciation, determined utilizing the cost
510	510	5 replacement method whereby the exempt square footage
511	511	6 of all such buildings is multiplied by the replacement
512	512	7 cost per square foot for Class A Average building
513	513	8 found in the most recent edition of the Marshall &
514	514	9 Swift Valuation Services Manual, adjusted by any
515	515	10 appropriate current cost and local multipliers.
516	516	11 (B) Depreciation, for purposes of calculating the
517	517	12 estimated fair market value of buildings on the
518	518	13 property, is applied by utilizing a weighted mean life
519	519	14 for the buildings based on original construction and
520	520	15 assuming a 40-year life for hospital buildings and the
521	521	16 applicable life for other types of buildings as
522	522	17 specified in the American Hospital Association
523	523	18 publication "Estimated Useful Lives of Depreciable
524	524	19 Hospital Assets". In the case of hospital buildings,
525	525	20 the remaining life is divided by 40 and this ratio is
526	526	21 multiplied by the replacement cost of the buildings to
527	527	22 obtain an estimated fair market value of buildings. If
528	528	23 a hospital building is older than 35 years, a
529	529	24 remaining life of 5 years for residual value is
530	530	25 assumed; and if a building is less than 8 years old, a
531	531	26 remaining life of 32 years is assumed.
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542	542	1 (C) The estimated assessed value of the land
543	543	2 portion of the property shall be determined by
544	544	3 multiplying (i) the per square foot average of the
545	545	4 assessed values of three parcels of land (not
546	546	5 including farm land, and excluding the assessed value
547	547	6 of the improvements thereon) reasonably comparable to
548	548	7 the property, by (ii) the number of square feet
549	549	8 comprising the exempt portion of the property's land
550	550	9 square footage.
551	551	10 (3) The assessment factor, State equalization rate,
552	552	11 and tax rate (including any special factors such as
553	553	12 Enterprise Zones) used in calculating the estimated
554	554	13 property tax liability shall be for the most recent year
555	555	14 that is publicly available from the applicable chief
556	556	15 county assessment officer or officers at least 90 days
557	557	16 before the end of the hospital year.
558	558	17 (4) The method utilized to calculate estimated
559	559	18 property tax liability for purposes of this Section 15-86
560	560	19 shall not be utilized for the actual valuation,
561	561	20 assessment, or taxation of property pursuant to the
562	562	21 Property Tax Code.
563	563	22 (5) Assessments shall be made by the chief county
564	564	23 assessment officer.
565	565	24 (h) Application. Each hospital applicant applying for a
566	566	25 property tax exemption pursuant to Section 15-5 and this
567	567	26 Section shall use an application form provided by the
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578	578	1 Department. The application form shall specify the records
579	579	2 required in support of the application and those records shall
580	580	3 be submitted to the Department with the application form. Each
581	581	4 application or affidavit shall contain a verification by the
582	582	5 Chief Executive Officer of the hospital applicant under oath
583	583	6 or affirmation stating that each statement in the application
584	584	7 or affidavit and each document submitted with the application
585	585	8 or affidavit are true and correct. The records submitted with
586	586	9 the application pursuant to this Section shall include an
587	587	10 exhibit prepared by the relevant hospital entity showing (A)
588	588	11 the value of the relevant hospital entity's services and
589	589	12 activities, if any, under paragraphs (1) through (7) of
590	590	13 subsection (e) of this Section stated separately for each
591	591	14 paragraph, and (B) the value relating to the relevant hospital
592	592	15 entity's estimated property tax liability under subsections
593	593	16 (g)(1)(A), (B), and (C), subsections (g)(2)(A), (B), and (C),
594	594	17 and subsection (g)(3) of this Section stated separately for
595	595	18 each item. Such exhibit will be made available to the public by
596	596	19 the chief county assessment officer. Nothing in this Section
597	597	20 shall be construed as limiting the Attorney General's
598	598	21 authority under the Illinois False Claims Act.
599	599	22 (i) Nothing in this Section shall be construed to limit
600	600	23 the ability of otherwise eligible hospitals, hospital owners,
601	601	24 hospital affiliates, or hospital systems to obtain or maintain
602	602	25 property tax exemptions pursuant to a provision of the
603	603	26 Property Tax Code other than this Section.
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614	614	1 (j) Notwithstanding any other provision of law, at least
615	615	2 once per year, the chief county assessment officer shall
616	616	3 publish, on the assessor's website and in a newspaper of
617	617	4 general circulation in the county where the property is
618	618	5 located, the assessed value of all property that qualifies for
619	619	6 an exemption under this Section in the taxable year, as well as
620	620	7 the estimated property tax liability for that property.
621	621	8 (Source: P.A. 99-143, eff. 7-27-15.)
622	622	9 Section 10. The Community Benefits Act is amended by
623	623	10 changing Sections 10 and 20 as follows:
624	624	11 (210 ILCS 76/10)
625	625	12 Sec. 10. Definitions. As used in this Act:
626	626	13 "Bad debt" means the current period charge for actual or
627	627	14 expected doubtful accounting resulting from the extension of
628	628	15 credit.
629	629	16 "Charity care" means the delivery of health care services
630	630	17 for free or at a reduced cost to poor and low-income
631	631	18 individuals who could not otherwise afford the health care
632	632	19 they are receiving. care provided by a health care provider
633	633	20 for which the provider does not expect to receive payment from
634	634	21 the patient or a third party payer. "Charity care" includes
635	635	22 the actual cost of services provided based upon the total cost
636	636	23 to charge ratio derived from a nonprofit hospital's most
637	637	24 recently filed Medicare cost report Worksheet C and not based
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648	648	1 upon the charges for the services. "Charity care" does not
649	649	2 include bad debt.
650	650	3 "Community benefits" means the unreimbursed cost to a
651	651	4 hospital or health system of providing charity care, language
652	652	5 assistant services, government-sponsored health care,
653	653	6 donations, volunteer services, education,
654	654	7 government-sponsored program services, research, and
655	655	8 subsidized health services and collecting bad debts.
656	656	9 "Community benefits" does not include the cost of paying any
657	657	10 taxes or other governmental assessments, health fairs, or
658	658	11 marketing materials.
659	659	12 "Financial assistance" means a discount provided to a
660	660	13 patient under the terms and conditions the hospital offers to
661	661	14 qualified patients or as required by law.
662	662	15 "Government-sponsored health care" means the unreimbursed
663	663	16 cost to a hospital or health system of Medicare, providing
664	664	17 health care services to recipients of Medicaid, and other
665	665	18 federal, State, or local health care programs, eligibility for
666	666	19 which is based on financial need.
667	667	20 "Health system" means an entity that owns or operates at
668	668	21 least one hospital.
669	669	22 "Net patient revenue" means gross service revenue less
670	670	23 provisions for contractual adjustments with third-party
671	671	24 payors, courtesy and policy discounts, or other adjustments
672	672	25 and deductions, excluding charity care.
673	673	26 "Nonprofit hospital" means a hospital that is organized as
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684	684	1 a nonprofit corporation, including religious organizations, or
685	685	2 a charitable trust under Illinois law or the laws of any other
686	686	3 state or country.
687	687	4 "Subsidized health services" means those services provided
688	688	5 by a hospital in response to community needs for which the
689	689	6 reimbursement is less than the hospital's cost of providing
690	690	7 the services that must be subsidized by other hospital or
691	691	8 nonprofit supporting entity revenue sources. "Subsidized
692	692	9 health services" includes, but is not limited to, emergency
693	693	10 and trauma care, neonatal intensive care, community health
694	694	11 clinics, and collaborative efforts with local government or
695	695	12 private agencies to prevent illness and improve wellness, such
696	696	13 as immunization programs, housing assistance, or food
697	697	14 assistance.
698	698	15 (Source: P.A. 102-581, eff. 1-1-22.)
699	699	16 (210 ILCS 76/20)
700	700	17 Sec. 20. Annual report for community benefits plan.
701	701	18 (a) Each nonprofit hospital shall prepare an annual report
702	702	19 of the community benefits plan. The report must include, in
703	703	20 addition to the community benefits plan itself, all of the
704	704	21 following background information:
705	705	22 (1) The hospital's mission statement.
706	706	23 (2) A disclosure of the health care needs of the
707	707	24 community that were considered in developing the
708	708	25 hospital's community benefits plan.
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719	719	1 (3) A disclosure of the amount and types of community
720	720	2 benefits actually provided, including charity care, and
721	721	3 details about financial assistance applications received
722	722	4 and processed by the hospital as specified in paragraph
723	723	5 (5) of subsection (a) of Section 22. Charity care must be
724	724	6 reported separate from other community benefits. In
725	725	7 reporting charity care, the hospital must report the
726	726	8 actual cost of services provided, based on the total cost
727	727	9 to charge ratio derived from the hospital's Medicare cost
728	728	10 report (CMS 2552-96 Worksheet C, Part 1, PPS Inpatient
729	729	11 Ratios), not the charges for the services. For a health
730	730	12 system that includes more than one hospital, charity care
731	731	13 spending and financial assistance application data must be
732	732	14 reported separately for each individual hospital within
733	733	15 the health system.
734	734	16 (4) Audited annual financial reports for its most
735	735	17 recently completed fiscal year.
736	736	18 (b) Each nonprofit hospital shall annually file a report
737	737	19 of the community benefits plan with the Attorney General. The
738	738	20 report must be filed not later than the last day of the sixth
739	739	21 month after the close of the hospital's fiscal year, beginning
740	740	22 with the hospital fiscal year that ends in 2004. Reports that
741	741	23 are filed under this Section on or after the effective date of
742	742	24 this amendatory Act of the 103rd General Assembly shall be
743	743	25 posted on the Attorney General's website.
744	744	26 (c) Each nonprofit hospital shall prepare a statement that
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