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SB3118 • 2026

DD FACILITY-ASSET MGMT COMPANY

DD FACILITY-ASSET MGMT COMPANY

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Javier L. Cervantes
Last action
2026-05-15
Official status
Rule 3-9(a) / Re-referred to Assignments
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

DD FACILITY-ASSET MGMT COMPANY

DD FACILITY-ASSET MGMT COMPANY

What This Bill Does

  • DD FACILITY-ASSET MGMT COMPANY

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-05-15 Illinois General Assembly

    Rule 3-9(a) / Re-referred to Assignments

  2. 2026-04-24 Illinois General Assembly

    Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026

  3. 2026-03-27 Illinois General Assembly

    Rule 2-10 Committee Deadline Established As April 24, 2026

  4. 2026-03-24 Illinois General Assembly

    Rule 2-10 Committee Deadline Established As March 27, 2026

  5. 2026-03-24 Illinois General Assembly

    Assigned to Executive

  6. 2026-03-05 Illinois General Assembly

    Added as Co-Sponsor Sen. Ram Villivalam

  7. 2026-02-05 Illinois General Assembly

    Added as Chief Co-Sponsor Sen. David Koehler

  8. 2026-02-05 Illinois General Assembly

    Added as Chief Co-Sponsor Sen. Omar Aquino

  9. 2026-02-04 Illinois General Assembly

    Added as Chief Co-Sponsor Sen. Celina Villanueva

  10. 2026-02-02 Illinois General Assembly

    Filed with Secretary by Sen. Javier L. Cervantes

  11. 2026-02-02 Illinois General Assembly

    First Reading

  12. 2026-02-02 Illinois General Assembly

    Referred to Assignments

Official Summary Text

DD FACILITY-ASSET MGMT COMPANY

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Illinois General Assembly - Full Text of SB3118

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3118

Introduced 2/2/2026, by Sen. Javier L. Cervantes

SYNOPSIS AS INTRODUCED:

See Index

Amends the Community Living Facilities Licensing Act, the MC/DD Act,
the ID/DD Community Care Act, the Community-Integrated Living Arrangements
Licensure and Certification Act, and the Child Care Act of 1969. Requires
the State agencies responsible for licensing facilities under those Acts
to adopt, by December 31, 2026, rules requiring a facility to disclose upon
initial application for licensure and on a quarterly basis thereafter,
whether the facility, its subsidiaries, affiliates, parent companies, or
contractual service providers are owned, managed, or contained within a
fund owned or managed by an asset management company; and if so, to make
certain disclosures about the asset management company's assets, the
facility's debt, and other matters. Requires the State agencies to also
adopt rules requiring such a facility to provide written notice of
transactions and copies of agreements which would (i) sell or otherwise
dispose of a material amount of the facility's assets or (ii) transfer
control, responsibility, or governance of a material amount of the
facility's assets or operations. Prohibits facilities owned or managed by
an asset management company from engaging in certain transactions or
actions that would result in the facility issuing debt-funded dividends or
perform any other similar action causing the facility to become
financially distressed. Provides that a violation of these requirements
and prohibitions constitutes an unlawful practice within the meaning of
the Consumer Fraud and Deceptive Business Practices Act. Requires the
State agencies to publish disclosures, written notices, and copies of
agreements submitted by facilities on the agencies' public websites.
Imposes similar requirements and prohibitions on adult day service
providers serving individuals with developmental disabilities under the
Illinois Act on the Aging and providers of adult developmental training
services under the Mental Health and Developmental Disabilities
Administrative Act. Effective immediately.
LRB104 17599 KTG 31027 b

A BILL FOR

SB3118
LRB104 17599 KTG 31027 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 Act on the Aging is amended by
5
adding Sections 3.14 and 4.02i as follows:

6

(20 ILCS 105/3.14 new)
7

Sec. 3.14.
Asset management company.
"Asset management
8
company" means any business primarily engaged in managing and
9
investing client funds in assets including, but not limited
10
to, securities, equities, stocks, bonds, real estate,
11
investment funds, mutual funds, exchange-traded funds, hedge
12
funds, private equity funds, and venture capital.

13

(20 ILCS 105/4.02i new)
14

Sec. 4.02i.
Adult day services; disclosure, anti-looting,
15
and consumer protections.
16

(a)(1) By December 31, 2026, the Department shall adopt
17
rules requiring adult day service providers serving
18
individuals with developmental disabilities to disclose, upon
19
initial application for certification and on a quarterly basis
20
thereafter, whether the provider, its subsidiaries,
21
affiliates, parent companies, or contractual service providers
22
are owned, managed, or contained within a fund owned or

SB3118
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LRB104 17599 KTG 31027 b
1
managed by an asset management company. Such providers shall
2
be required to disclose, on forms prescribed by the
3
Department, the size of the asset management company's assets
4
under management; individuals and institutions with interests
5
in the provider, its subsidiaries, affiliates, parent
6
companies, contractual service providers, and the fund
7
containing the same; debt held by the provider, its
8
subsidiaries, affiliates, parent companies, contractual
9
service providers, and the fund containing the same; fees and
10
payments, and rates for the same, collected by the asset
11
management company, its subsidiaries, affiliates, parent
12
companies, partners, contractual service providers for goods
13
or services provided to the provider, its subsidiaries,
14
affiliates, parent companies, contractual service providers,
15
and the fund containing the same; the number of full-time and
16
part-time employees and contractors, grouped by job
17
classification, employed or under contract with the provider,
18
its subsidiaries, affiliates, parent companies, contractual
19
service providers and, where applicable, labor organizations
20
representing the same.
21

(2) The Department shall also adopt rules requiring
22
providers to provide the Department with written notice of
23
transactions, and copies of agreements, which would (i) sell,
24
transfer, lease, exchange, option, encumber, convey, or
25
otherwise dispose of a material amount of the assets of the
26
provider, its subsidiaries, affiliates, parent companies, or

SB3118
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LRB104 17599 KTG 31027 b
1
contractual service providers, to one or more entities or (ii)
2
transfer control, responsibility, or governance of a material
3
amount of the assets or operations of the provider, its
4
subsidiaries, affiliates, parent companies, or contractual
5
service providers, to one or more entities. Written notice and
6
copies of agreements required under this paragraph shall be
7
provided not less than 90 days prior to entering into the
8
agreement or transaction.
9

(b)(1) A provider owned, managed, or contained within a
10
fund owned or managed by an asset management company, its
11
parent companies, or an asset management company which owns or
12
manages the provider, its subsidiaries, affiliated entities,
13
parent companies, contractual service providers, or a fund
14
containing the same, shall not engage in a transaction
15
involving the provider, its subsidiaries, affiliated entities,
16
parent companies, contractual service providers, or the fund
17
containing the same, if the transaction has a reasonable
18
likelihood of causing or materially contributing to the
19
financial distress of the provider, its subsidiaries,
20
affiliated entities, parent companies, or contractual service
21
providers, due to placing an excessively high level of debt on
22
the same.
23

(2) A provider owned, managed, or contained within a fund
24
owned or managed by an asset management company, its parent
25
companies, or an asset management company which owns or
26
manages the provider, its subsidiaries, affiliated entities,

SB3118
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LRB104 17599 KTG 31027 b
1
parent companies, contractual service providers, or a fund
2
containing the same, shall not cause or otherwise take actions
3
that would result in the provider, its subsidiaries,
4
affiliated entities, parent companies, contractual service
5
providers, or the fund containing the same (i) issuing
6
debt-funded dividends, (ii) paying management fees or similar
7
fees or costs, (iii) issuing dividends at a time or in an
8
amount, or perform any other action or exceed any other
9
metric, where such actions have a reasonable likelihood of
10
causing the provider, its subsidiaries, affiliated entities,
11
parent companies, or contractual service providers to become
12
financially distressed.
13

(c) A violation of this Section constitutes an unlawful
14
practice within the meaning of the Consumer Fraud and
15
Deceptive Business Practices Act. Upon becoming aware of a
16
violation, the Department shall notify the Attorney General
17
and any labor organization representing workers who work or
18
worked for the provider, its subsidiaries, affiliates, parent
19
companies, or contractual service providers or in the
20
facilities of the same. The Attorney General may take action
21
under the Consumer Fraud and Deceptive Business Practices Act,
22
or any other law, to remedy violations of this Section. Labor
23
organizations representing workers who work or worked for the
24
provider, its subsidiaries, affiliated entities, parent
25
companies, or contractual service providers, or in the
26
facilities of the same, shall be entitled to the same rights to

SB3118
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LRB104 17599 KTG 31027 b
1
action afforded to individuals under the Consumer Fraud and
2
Deceptive Business Practices Act. The Department shall also
3
require violators of this Section to prominently display a
4
notice detailing the violation in a form, location, and for a
5
duration prescribed by the Department.
6

(d) The Department shall publish disclosures, written
7
notices, and copies of agreements submitted in accordance with
8
this Section, upon receipt, and notices of violations issued
9
under this Section, upon determination, on its website, for
10
public viewing.

11

Section 10.
The Mental Health and Developmental
12
Disabilities Administrative Act is amended by changing Section
13
2 and by adding Sections 15.2a and 68a as follows:

14

(20 ILCS 1705/2)

(from Ch. 91 1/2, par. 100-2)
15

Sec. 2.
Definitions; administrative subdivisions.
16

(a) For the purposes of this Act, unless the context
17
otherwise requires:
18

"Asset management company" means any business primarily
19
engaged in managing and investing client funds in assets
20
including, but not limited to, securities, equities, stocks,
21
bonds, real estate, investment funds, mutual funds,
22
exchange-traded funds, hedge funds, private equity funds, and
23
venture capital.

24

"Department" means the Department of Human Services,

SB3118
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LRB104 17599 KTG 31027 b
1
successor to the former Department of Mental Health and
2
Developmental Disabilities.
3

"Developmental disability" means "developmental
4
disability" as defined in Section 1-106 of the Mental Health
5
and Developmental Disabilities Code.
6

"Intellectual disability" means the "intellectual
7
disability" as defined in Section 1-116 of the Mental Health
8
and Developmental Disabilities Code.
9

"Secretary" means the Secretary of Human Services.
10

(b) Unless the context otherwise requires:
11

(1) References in this Act to the programs or
12

facilities of the Department shall be construed to refer
13

only to those programs or facilities of the Department
14

that pertain to mental health or developmental
15

disabilities.
16

(2) References in this Act to the Department's service
17

providers or service recipients shall be construed to
18

refer only to providers or recipients of services that
19

pertain to the Department's mental health and
20

developmental disabilities functions.
21

(3) References in this Act to employees of the
22

Department shall be construed to refer only to employees
23

whose duties pertain to the Department's mental health and
24

developmental disabilities functions.
25

(c) The Secretary shall establish such subdivisions of the
26
Department as shall be desirable and shall assign to the

SB3118
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LRB104 17599 KTG 31027 b
1
various subdivisions the responsibilities and duties placed
2
upon the Department by the Laws of the State of Illinois.
3

(d) There is established a coordinator of services to deaf
4
and hearing impaired persons with mental disabilities. In
5
hiring this coordinator, every consideration shall be given to
6
qualified deaf or hearing impaired individuals.
7

(e) Whenever the administrative director of the
8
subdivision for mental health services is not a
9
board-certified psychiatrist, the Secretary shall appoint a
10
Chief for Clinical Services who shall be a board-certified
11
psychiatrist with both clinical and administrative experience.
12
The Chief for Clinical Services shall be responsible for all
13
clinical and medical decisions for mental health services.
14
(Source: P.A. 102-972, eff. 1-1-23
.)

15

(20 ILCS 1705/15.2a new)
16

Sec. 15.2a.
Adult developmental training services;
17
disclosure, anti-looting, and consumer protections.
18

(a)(1) By December 31, 2026, the Department shall adopt
19
rules requiring providers of adult developmental training
20
services to disclose, both upon initial application for
21
certification and on a quarterly basis thereafter, whether the
22
provider, its subsidiaries, affiliates, parent companies, or
23
contractual service providers are owned, managed, or contained
24
within a fund owned or managed by an asset management company.
25
Such providers shall be required to disclose, on forms

SB3118
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LRB104 17599 KTG 31027 b
1
prescribed by the Department, the size of the asset management
2
company's assets under management; individuals and
3
institutions with interests in the provider, its subsidiaries,
4
affiliates, parent companies, contractual service providers,
5
and the fund containing the same; debt held by the provider,
6
its subsidiaries, affiliates, parent companies, contractual
7
service providers, and the fund containing the same; fees and
8
payments, and rates for the same, collected by the asset
9
management company, its subsidiaries, affiliates, parent
10
companies, partners, contractual service providers for goods
11
or services provided to the provider, its subsidiaries,
12
affiliates, parent companies, contractual service providers,
13
and the fund containing the same; the number of full-time and
14
part-time employees and contractors, grouped by job
15
classification, employed or under contract with the provider,
16
its subsidiaries, affiliates, parent companies, contractual
17
service providers and, where applicable, labor organizations
18
representing the same.
19

(2) The Department shall also adopt rules requiring
20
providers to provide the Department with written notice of
21
transactions, and copies of agreements, which would (i) sell,
22
transfer, lease, exchange, option, encumber, convey, or
23
otherwise dispose of a material amount of the assets of the
24
provider, its subsidiaries, affiliates, parent companies, or
25
contractual service providers, to one or more entities or (ii)
26
transfer control, responsibility, or governance of a material

SB3118
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LRB104 17599 KTG 31027 b
1
amount of the assets or operations of the provider, its
2
subsidiaries, affiliates, parent companies, or contractual
3
service providers, to one or more entities. Written notice and
4
copies of agreements required under this paragraph shall be
5
provided not less than 90 days prior to entering into the
6
agreement or transaction.
7

(b)(1) A provider owned, managed, or contained within a
8
fund owned or managed by an asset management company, its
9
parent companies, or an asset management company which owns or
10
manages the provider, its subsidiaries, affiliated entities,
11
parent companies, contractual service providers, or a fund
12
containing the same, shall not engage in a transaction
13
involving the provider, its subsidiaries, affiliated entities,
14
parent companies, contractual service providers, or the fund
15
containing the same, if the transaction has a reasonable
16
likelihood of causing or materially contributing to the
17
financial distress of the provider, its subsidiaries,
18
affiliated entities, parent companies, or contractual service
19
providers, due to placing an excessively high level of debt on
20
the same.
21

(2) A provider owned, managed, or contained within a fund
22
owned or managed by an asset management company, its parent
23
companies, or an asset management company which owns or
24
manages the provider, its subsidiaries, affiliated entities,
25
parent companies, contractual service providers, or a fund
26
containing the same, shall not cause or otherwise take actions

SB3118
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LRB104 17599 KTG 31027 b
1
that would result in the provider, its subsidiaries,
2
affiliated entities, parent companies, contractual service
3
providers, or the fund containing the same (i) issuing
4
debt-funded dividends, (ii) paying management fees or similar
5
fees or costs, (iii) issuing dividends at a time or in an
6
amount, or perform any other action or exceed any other
7
metric, where such actions have a reasonable likelihood of
8
causing the provider, its subsidiaries, affiliated entities,
9
parent companies, or contractual service providers to become
10
financially distressed.
11

(c) A violation of this Section constitutes an unlawful
12
practice within the meaning of the Consumer Fraud and
13
Deceptive Business Practices Act. Upon becoming aware of a
14
violation, the Department shall notify the Attorney General
15
and any labor organization representing workers who work or
16
worked for the provider, its subsidiaries, affiliates, parent
17
companies, or contractual service providers or in the
18
facilities of the same. The Attorney General may take action
19
under the Consumer Fraud and Deceptive Business Practices Act,
20
or any other law, to remedy violations of this Section. Labor
21
organizations representing workers who work or worked for the
22
provider, its subsidiaries, affiliated entities, parent
23
companies, or contractual service providers, or in the
24
facilities of the same, shall be entitled to the same rights to
25
action afforded to individuals under the Consumer Fraud and
26
Deceptive Business Practices Act. The Department shall also

SB3118
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LRB104 17599 KTG 31027 b
1
require violators of this Section to prominently display a
2
notice detailing the violation in a form, location, and for a
3
duration prescribed by the Department.
4

(d) The Department shall publish disclosures, written
5
notices, and copies of agreements submitted in accordance with
6
this Section, upon receipt, and notices of violations issued
7
under this Section, upon determination, on its website, for
8
public viewing.

9

(20 ILCS 1705/68a new)
10

Sec. 68a.
Supported employment services; disclosure,
11
anti-looting, and consumer protections.
12

(a)(1) By December 31, 2026, the Department shall adopt
13
rules requiring supported employment providers to disclose,
14
both upon initial application for enrollment and on a
15
quarterly basis thereafter, whether the provider, its
16
subsidiaries, affiliates, parent companies, or contractual
17
service providers are owned, managed, or contained within a
18
fund owned or managed by an asset management company. Such
19
providers shall be required to disclose, on forms prescribed
20
by the Department, the size of the asset management company's
21
assets under management; individuals and institutions with
22
interests in the provider, its subsidiaries, affiliates,
23
parent companies, contractual service providers, and the fund
24
containing the same; debt held by the provider, its
25
subsidiaries, affiliates, parent companies, contractual

SB3118
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LRB104 17599 KTG 31027 b
1
service providers, and the fund containing the same; fees and
2
payments, and rates for the same, collected by the asset
3
management company, its subsidiaries, affiliates, parent
4
companies, partners, contractual service providers for goods
5
or services provided to the provider, its subsidiaries,
6
affiliates, parent companies, contractual service providers,
7
and the fund containing the same; the number of full-time and
8
part-time employees and contractors, grouped by job
9
classification, employed or under contract with the provider,
10
its subsidiaries, affiliates, parent companies, contractual
11
service providers and, where applicable, labor organizations
12
representing the same.
13

(2) The Department shall also adopt rules requiring
14
providers to provide the Department with written notice of
15
transactions, and copies of agreements, which would (i) sell,
16
transfer, lease, exchange, option, encumber, convey, or
17
otherwise dispose of a material amount of the assets of the
18
provider, its subsidiaries, affiliates, parent companies, or
19
contractual service providers, to one or more entities or (ii)
20
transfer control, responsibility, or governance of a material
21
amount of the assets or operations of the provider, its
22
subsidiaries, affiliates, parent companies, or contractual
23
service providers, to one or more entities. Written notice and
24
copies of agreements required under this paragraph shall be
25
provided not less than 90 days prior to entering into the
26
agreement or transaction.

SB3118
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LRB104 17599 KTG 31027 b
1

(b)(1) A provider owned, managed, or contained within a
2
fund owned or managed by an asset management company, its
3
parent companies, or an asset management company which owns or
4
manages the provider, its subsidiaries, affiliated entities,
5
parent companies, contractual service providers, or a fund
6
containing the same, shall not engage in a transaction
7
involving the provider, its subsidiaries, affiliated entities,
8
parent companies, contractual service providers, or the fund
9
containing the same, if the transaction has a reasonable
10
likelihood of causing or materially contributing to the
11
financial distress of the provider, its subsidiaries,
12
affiliated entities, parent companies, or contractual service
13
providers, due to placing an excessively high level of debt on
14
the same.
15

(2) A provider owned, managed, or contained within a fund
16
owned or managed by an asset management company, its parent
17
companies, or an asset management company which owns or
18
manages the provider, its subsidiaries, affiliated entities,
19
parent companies, contractual service providers, or a fund
20
containing the same, shall not cause or otherwise take actions
21
that would result in the provider, its subsidiaries,
22
affiliated entities, parent companies, contractual service
23
providers, or the fund containing the same (i) issuing
24
debt-funded dividends, (ii) paying management fees or similar
25
fees or costs, (iii) issuing dividends at a time or in an
26
amount, or perform any other action or exceed any other

SB3118
- 14 -
LRB104 17599 KTG 31027 b
1
metric, where such actions have a reasonable likelihood of
2
causing the provider, its subsidiaries, affiliated entities,
3
parent companies, or contractual service providers to become
4
financially distressed.
5

(c) A violation of this Section constitutes an unlawful
6
practice within the meaning of the Consumer Fraud and
7
Deceptive Business Practices Act. Upon becoming aware of a
8
violation, the Department shall notify the Attorney General
9
and any labor organization representing workers who work or
10
worked for the provider, its subsidiaries, affiliates, parent
11
companies, or contractual service providers or in the
12
facilities of the same. The Attorney General may take action
13
under the Consumer Fraud and Deceptive Business Practices Act,
14
or any other law, to remedy violations of this Section. Labor
15
organizations representing workers who work or worked for the
16
provider, its subsidiaries, affiliated entities, parent
17
companies, or contractual service providers, or in the
18
facilities of the same, shall be entitled to the same rights to
19
action afforded to individuals under the Consumer Fraud and
20
Deceptive Business Practices Act. The Department shall also
21
require violators of this Section to prominently display a
22
notice detailing the violation in a form, location, and for a
23
duration prescribed by the Department.
24

(d) The Department shall publish disclosures, written
25
notices, and copies of agreements submitted in accordance with
26
this Section, upon receipt, and notices of violations issued

SB3118
- 15 -
LRB104 17599 KTG 31027 b
1
under this Section, upon determination, on its website, for
2
public viewing.

3

Section 15.
The Community Living Facilities Licensing Act
4
is amended by changing Section 3 and by adding Section 19 as
5
follows:

6

(210 ILCS 35/3)

(from Ch. 111 1/2, par. 4183)
7

Sec. 3.
Definitions.
As used in this Act, unless the
8
context otherwise requires, the terms defined in this Section
9
have the meanings ascribed to them herein.
10

(1) "Adult" means a person 18 years of age or older.
11

(2) "Applicant" means any person, agency, association,
12
corporation, partnership, or organization making application
13
for a license.
14

(3) "Appropriate programming" means programming which
15
meets each resident's individual needs commensurate with his
16
functioning level.
17

(3-5) "Asset management company" means any business
18
primarily engaged in managing and investing client funds in
19
assets including, but not limited to, securities, equities,
20
stocks, bonds, real estate, investment funds, mutual funds,
21
exchange-traded funds, hedge funds, private equity funds, and
22
venture capital.

23

(4) "Community Living Facility" means a transitional
24
residential setting which provides guidance, supervision,

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training and other assistance to ambulatory or mobile adults
2
with a mild or moderate developmental disability with the goal
3
of eventually moving these persons to more independent living
4
arrangements. Residents are required to participate in day
5
activities, such as vocational training, sheltered workshops
6
or regular employment. A Community Living Facility shall not
7
be a nursing or medical facility and shall house no more than
8
20 residents, excluding staff.
9

(5) "Department" means the Department of Public Health.
10

(6) "Director" means the Director of the Department of
11
Public Health.
12

(7) "Habilitation plan" means a written plan as defined in
13
the "Mental Health and Developmental Disabilities Code of
14
1979", as now or hereafter amended.
15

(8) "License" means any of the following types of licenses
16
issued to an applicant or licensee by the Department:

17

(a) "Probationary license" means a license issued to
18

an applicant or licensee which has not held a license
19

contiguous to its application.

20

(b) "Regular license" means a license issued to an
21

applicant or licensee which is in substantial compliance
22

with this Act and any rules and regulations promulgated
23

hereunder.
24

(9) "Licensee" means a person, agency, association,
25
corporation, partnership, or organization which has been
26
issued a license to operate a Community Living Facility.

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1

(10) "Owner" means the individual, partnership,
2
corporation, association or other person who owns a Community
3
Living Facility. In the event a Community Living Facility is
4
operated by a person who leases the physical plant, which is
5
owned by another person, "owner" means the person who operates
6
the Community Living Facility, except that if the person who
7
owns the physical plant is an affiliate of the person who
8
operates the Community Living Facility and has significant
9
control over the day-to-day operations of the Community Living
10
Facility, the person who owns the physical plant shall incur
11
jointly and severally with the owner all liabilities imposed
12
on an owner under this Act.
13

(11) "Plan of correction" means a written plan submitted
14
to the Department for violation of this Act or of rules
15
promulgated hereunder which are cited by the Department. The
16
plan shall describe the steps that will be taken in order to
17
bring the Community Living Facility into compliance and the
18
time-frame for completion of each step.
19

(12) "Qualified surveyor" means any individual or any
20
governmental agency designated by the Department to survey
21
Community Living Facilities for compliance with this Act and
22
the rules and regulations promulgated under this Act.
23

(13) "Resident" means a person residing in a Community
24
Living Facility pursuant to this Act.
25

(14) "Support services" means those services provided to
26
residents in order to facilitate their integration into the

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community and to improve their level of functioning,
2
independence and self-respect.
3
(Source: P.A. 88-380.)

4

(210 ILCS 35/19 new)
5

Sec. 19.
Community Living Facilities; disclosure,
6
anti-looting, and consumer protections.
7

(a)(1) By December 31, 2026, the Department shall adopt
8
rules requiring Community Living Facilities to disclose, both
9
upon initial application for licensure and on a quarterly
10
basis thereafter, whether the facility, its subsidiaries,
11
affiliates, parent companies, or contractual service providers
12
are owned, managed, or contained within a fund owned or
13
managed by an asset management company. Such facilities shall
14
be required to disclose, both upon initial application for
15
licensure and on a quarterly basis thereafter, the size of the
16
asset management company's assets under management;
17
individuals and institutions with interests in the facilities,
18
its subsidiaries, affiliates, parent companies, contractual
19
service providers, and the fund containing the same; debt held
20
by the facility, its subsidiaries, affiliates, parent
21
companies, contractual service providers, and the fund
22
containing the same; fees and payments, and rates for the
23
same, collected by the asset management company, its
24
subsidiaries, affiliates, parent companies, partners,
25
contractual service providers for goods or services provided

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to the facility, its subsidiaries, affiliates, parent
2
companies, contractual service providers, and the fund
3
containing the same; the number of full-time and part-time
4
employees and contractors, grouped by job classification,
5
employed or under contract with the facility, its
6
subsidiaries, affiliates, parent companies, contractual
7
service providers and, where applicable, labor organizations
8
representing the same.
9

(2) The Department shall also adopt rules requiring
10
facilities to provide the Department with written notice of
11
transactions, and copies of agreements, which would (i) sell,
12
transfer, lease, exchange, option, encumber, convey, or
13
otherwise dispose of a material amount of the assets of the
14
facility, its subsidiaries, affiliates, parent companies, or
15
contractual service providers, to one or more entities or (ii)
16
transfer control, responsibility, or governance of a material
17
amount of the assets or operations of the facility, its
18
subsidiaries, affiliates, parent companies, or contractual
19
service providers, to one or more entities. Written notice and
20
copies of agreements required under this paragraph shall be
21
provided not less than 90 days prior to entering into the
22
agreement or transaction.
23

(b)(1) A facility owned, managed, or contained within a
24
fund owned or managed by an asset management company, its
25
parent companies, or an asset management company which owns or
26
manages the facility, its subsidiaries, affiliated entities,

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parent companies, contractual service providers, or a fund
2
containing the same, shall not engage in a transaction
3
involving the facility, its subsidiaries, affiliated entities,
4
parent companies, contractual service providers, or the fund
5
containing the same, if the transaction has a reasonable
6
likelihood of causing or materially contributing to the
7
financial distress of the facility, its subsidiaries,
8
affiliated entities, parent companies, or contractual service
9
providers, due to placing an excessively high level of debt on
10
the same.
11

(2) A facility owned, managed, or contained within a fund
12
owned or managed by an asset management company, its parent
13
companies, or an asset management company which owns or
14
manages the facility, its subsidiaries, affiliated entities,
15
parent companies, contractual service providers, or a fund
16
containing the same, shall not cause or otherwise take actions
17
that would result in the facility, its subsidiaries,
18
affiliated entities, parent companies, contractual service
19
providers, or the fund containing the same (i) issuing
20
debt-funded dividends, (ii) paying management fees or similar
21
fees or costs, (iii) issuing dividends at a time or in an
22
amount, or perform any other action or exceed any other
23
metric, where such actions have a reasonable likelihood of
24
causing the facility, its subsidiaries, affiliated entities,
25
parent companies, or contractual service providers to become
26
financially distressed.

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1

(c) A violation of this Section constitutes an unlawful
2
practice within the meaning of the Consumer Fraud and
3
Deceptive Business Practices Act. Upon becoming aware of a
4
violation, the Department shall notify the Attorney General
5
and any labor organization representing workers who work or
6
worked for the facility, its subsidiaries, affiliates, parent
7
companies, or contractual service providers or in the
8
facilities of the same. The Attorney General may take action
9
under the Consumer Fraud and Deceptive Business Practices Act,
10
or any other law, to remedy violations of this Section. Labor
11
organizations representing workers who work or worked for the
12
facility, its subsidiaries, affiliated entities, parent
13
companies, or contractual service providers, or in the
14
facilities of the same, shall be entitled to the same rights to
15
action afforded to individuals under the Consumer Fraud and
16
Deceptive Business Practices Act. The Department shall also
17
require violators of this Section to prominently display a
18
notice detailing the violation in a form, location, and for a
19
duration prescribed by the Department.
20

(d) The Department shall publish disclosures, written
21
notices, and copies of agreements submitted in accordance with
22
this Section, upon receipt, and notices of violations issued
23
under this Section, upon determination, on its website, for
24
public viewing.

25

Section 20.
The MC/DD Act is amended by adding Section

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3-103a as follows:

2

(210 ILCS 46/3-103a new)
3

Sec. 3-103a.
MC/DD facilities; disclosure, anti-looting,
4
and consumer protections.
5

(a) As used in this Section, "asset management company"
6
means any business primarily engaged in managing and investing
7
client funds in assets including, but not limited to,
8
securities, equities, stocks, bonds, real estate, investment
9
funds, mutual funds, exchange-traded funds, hedge funds,
10
private equity funds, and venture capital.

11

(b)(1) By December 31, 2026, the Department shall adopt
12
rules requiring MC/DD facilities to disclose, both upon
13
initial application for licensure and on a quarterly basis
14
thereafter, whether the facility, its subsidiaries,
15
affiliates, parent companies, or contractual service providers
16
are owned, managed, or contained within a fund owned or
17
managed by an asset management company. Such facilities shall
18
be required to disclose, both upon initial application for
19
licensure and on a quarterly basis thereafter, the size of the
20
asset management company's assets under management;
21
individuals and institutions with interests in the facilities,
22
its subsidiaries, affiliates, parent companies, contractual
23
service providers, and the fund containing the same; debt held
24
by the facility, its subsidiaries, affiliates, parent
25
companies, contractual service providers, and the fund

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containing the same; fees and payments, and rates for the
2
same, collected by the asset management company, its
3
subsidiaries, affiliates, parent companies, partners,
4
contractual service providers for goods or services provided
5
to the facility, its subsidiaries, affiliates, parent
6
companies, contractual service providers, and the fund
7
containing the same; the number of full-time and part-time
8
employees and contractors, grouped by job classification,
9
employed or under contract with the facility, its
10
subsidiaries, affiliates, parent companies, contractual
11
service providers and, where applicable, labor organizations
12
representing the same.
13

(2) The Department shall also adopt rules requiring
14
facilities to provide the Department with written notice of
15
transactions, and copies of agreements, which would (i) sell,
16
transfer, lease, exchange, option, encumber, convey, or
17
otherwise dispose of a material amount of the assets of the
18
facility, its subsidiaries, affiliates, parent companies, or
19
contractual service providers, to one or more entities or (ii)
20
transfer control, responsibility, or governance of a material
21
amount of the assets or operations of the facility, its
22
subsidiaries, affiliates, parent companies, or contractual
23
service providers, to one or more entities. Written notice and
24
copies of agreements required under this paragraph shall be
25
provided not less than 90 days prior to entering into the
26
agreement or transaction.

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1

(c)(1) A facility owned, managed, or contained within a
2
fund owned or managed by an asset management company, its
3
parent companies, or an asset management company which owns or
4
manages the facility, its subsidiaries, affiliated entities,
5
parent companies, contractual service providers, or a fund
6
containing the same, shall not engage in a transaction
7
involving the facility, its subsidiaries, affiliated entities,
8
parent companies, contractual service providers, or the fund
9
containing the same, if the transaction has a reasonable
10
likelihood of causing or materially contributing to the
11
financial distress of the facility, its subsidiaries,
12
affiliated entities, parent companies, or contractual service
13
providers, due to placing an excessively high level of debt on
14
the same.
15

(2) A facility owned, managed, or contained within a fund
16
owned or managed by an asset management company, its parent
17
companies, or an asset management company which owns or
18
manages the facility, its subsidiaries, affiliated entities,
19
parent companies, contractual service providers, or a fund
20
containing the same, shall not cause or otherwise take actions
21
that would result in the facility, its subsidiaries,
22
affiliated entities, parent companies, contractual service
23
providers, or the fund containing the same (i) issuing
24
debt-funded dividends, (ii) paying management fees or similar
25
fees or costs, (iii) issuing dividends at a time or in an
26
amount, or perform any other action or exceed any other

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1
metric, where such actions have a reasonable likelihood of
2
causing the facility, its subsidiaries, affiliated entities,
3
parent companies, or contractual service providers to become
4
financially distressed.
5

(d) A violation of this Section constitutes an unlawful
6
practice within the meaning of the Consumer Fraud and
7
Deceptive Business Practices Act. Upon becoming aware of a
8
violation, the Department shall notify the Attorney General
9
and any labor organization representing workers who work or
10
worked for the facility, its subsidiaries, affiliates, parent
11
companies, or contractual service providers or in the
12
facilities of the same. The Attorney General may take action
13
under the Consumer Fraud and Deceptive Business Practices Act,
14
or any other law, to remedy violations of this Section. Labor
15
organizations representing workers who work or worked for the
16
facility, its subsidiaries, affiliated entities, parent
17
companies, or contractual service providers, or in the
18
facilities of the same, shall be entitled to the same rights to
19
action afforded to individuals under the Consumer Fraud and
20
Deceptive Business Practices Act. The Department shall also
21
require violators of this Section to prominently display a
22
notice detailing the violation in a form, location, and for a
23
duration prescribed by the Department.
24

(e) The Department shall publish disclosures, written
25
notices, and copies of agreements submitted in accordance with
26
this Section, upon receipt, and notices of violations issued

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1
under this Section, upon determination, on its website, for
2
public viewing.

3

Section 25.
The ID/DD Community Care Act is amended by
4
adding Section 3-103a as follows:

5

(210 ILCS 47/3-103a new)
6

Sec. 3-103a.
ID/DD; disclosure, anti-looting, and consumer
7
protections.
8

(a) As used in this Section, "asset management company"
9
means any business primarily engaged in managing and investing
10
client funds in assets including, but not limited to,
11
securities, equities, stocks, bonds, real estate, investment
12
funds, mutual funds, exchange-traded funds, hedge funds,
13
private equity funds, and venture capital.
14

(b)(1) By December 31, 2026, the Department shall adopt
15
rules requiring ID/DD facilities to disclose, both upon
16
initial application for licensure and on a quarterly basis
17
thereafter, whether the facility, its subsidiaries,
18
affiliates, parent companies, or contractual service providers
19
are owned, managed, or contained within a fund owned or
20
managed by an asset management company. Such facilities shall
21
be required to disclose, both upon initial application for
22
licensure and on a quarterly basis thereafter, the size of the
23
asset management company's assets under management;
24
individuals and institutions with interests in the facilities,

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1
its subsidiaries, affiliates, parent companies, contractual
2
service providers, and the fund containing the same; debt held
3
by the facility, its subsidiaries, affiliates, parent
4
companies, contractual service providers, and the fund
5
containing the same; fees and payments, and rates for the
6
same, collected by the asset management company, its
7
subsidiaries, affiliates, parent companies, partners,
8
contractual service providers for goods or services provided
9
to the facility, its subsidiaries, affiliates, parent
10
companies, contractual service providers, and the fund
11
containing the same; the number of full-time and part-time
12
employees and contractors, grouped by job classification,
13
employed or under contract with the facility, its
14
subsidiaries, affiliates, parent companies, contractual
15
service providers and, where applicable, labor organizations
16
representing the same.
17

(2) The Department shall also adopt rules requiring
18
facilities to provide the Department with written notice of
19
transactions, and copies of agreements, which would (i) sell,
20
transfer, lease, exchange, option, encumber, convey, or
21
otherwise dispose of a material amount of the assets of the
22
facility, its subsidiaries, affiliates, parent companies, or
23
contractual service providers, to one or more entities or (ii)
24
transfer control, responsibility, or governance of a material
25
amount of the assets or operations of the facility, its
26
subsidiaries, affiliates, parent companies, or contractual

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1
service providers, to one or more entities. Written notice and
2
copies of agreements required under this paragraph shall be
3
provided not less than 90 days prior to entering into the
4
agreement or transaction.
5

(c)(1) A facility owned, managed, or contained within a
6
fund owned or managed by an asset management company, its
7
parent companies, or an asset management company which owns or
8
manages the facility, its subsidiaries, affiliated entities,
9
parent companies, contractual service providers, or a fund
10
containing the same, shall not engage in a transaction
11
involving the facility, its subsidiaries, affiliated entities,
12
parent companies, contractual service providers, or the fund
13
containing the same, if the transaction has a reasonable
14
likelihood of causing or materially contributing to the
15
financial distress of the facility, its subsidiaries,
16
affiliated entities, parent companies, or contractual service
17
providers, due to placing an excessively high level of debt on
18
the same.
19

(2) A facility owned, managed, or contained within a fund
20
owned or managed by an asset management company, its parent
21
companies, or an asset management company which owns or
22
manages the facility, its subsidiaries, affiliated entities,
23
parent companies, contractual service providers, or a fund
24
containing the same, shall not cause or otherwise take actions
25
that would result in the facility, its subsidiaries,
26
affiliated entities, parent companies, contractual service

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1
providers, or the fund containing the same (i) issuing
2
debt-funded dividends, (ii) paying management fees or similar
3
fees or costs, (iii) issuing dividends at a time or in an
4
amount, or perform any other action or exceed any other
5
metric, where such actions have a reasonable likelihood of
6
causing the facility, its subsidiaries, affiliated entities,
7
parent companies, or contractual service providers to become
8
financially distressed.
9

(d) A violation of this Section constitutes an unlawful
10
practice within the meaning of the Consumer Fraud and
11
Deceptive Business Practices Act. Upon becoming aware of a
12
violation, the Department shall notify the Attorney General
13
and any labor organization representing workers who work or
14
worked for the facility, its subsidiaries, affiliates, parent
15
companies, or contractual service providers or in the
16
facilities of the same. The Attorney General may take action
17
under the Consumer Fraud and Deceptive Business Practices Act,
18
or any other law, to remedy violations of this Section. Labor
19
organizations representing workers who work or worked for the
20
facility, its subsidiaries, affiliated entities, parent
21
companies, or contractual service providers, or in the
22
facilities of the same, shall be entitled to the same rights to
23
action afforded to individuals under the Consumer Fraud and
24
Deceptive Business Practices Act. The Department shall also
25
require violators of this Section to prominently display a
26
notice detailing the violation in a form, location, and for a

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1
duration prescribed by the Department.
2

(e) The Department shall publish disclosures, written
3
notices, and copies of agreements submitted in accordance with
4
this Section, upon receipt, and notices of violations issued
5
under this Section, upon determination, on its website, for
6
public viewing.

7

Section 30.
The Community-Integrated Living Arrangements
8
Licensure and Certification Act is amended by changing Section
9
3 and by adding Section 9a as follows:

10

(210 ILCS 135/3)

(from Ch. 91 1/2, par. 1703)
11

Sec. 3.
As used in this Act, unless the context requires
12
otherwise:
13

(a) "Applicant" means a person, group of persons,
14
association, partnership
,
or corporation that applies for a
15
license as a community developmental services agency under
16
this Act.
17

(a-5) "Asset management company" means any business
18
primarily engaged in managing and investing client funds in
19
assets including, but not limited to, securities, equities,
20
stocks, bonds, real estate, investment funds, mutual funds,
21
exchange-traded funds, hedge funds, private equity funds, and
22
venture capital.

23

(b) "Community developmental services agency" or "agency"
24
means a public or private agency, association, partnership,

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1
corporation
,
or organization which, pursuant to this Act,
2
certifies community-integrated living arrangements for persons
3
with a developmental disability.
4

(c) "Department" means the Department of Human Services
5
(as successor to the Department of Mental Health and
6
Developmental Disabilities).
7

(d) "Community-integrated living arrangement" means a
8
living arrangement certified by a community developmental
9
services agency under this Act where 8 or fewer recipients
10
with a developmental disability
who
reside under the
11
supervision of the agency. Examples of community-integrated
12
living arrangements include
,
but are not limited to
,
the
13
following:
14

(1) "Adult foster care", a living arrangement for
15

recipients in residences of families unrelated to them,
16

for the purpose of providing family care for the
17

recipients on a full-time basis;
18

(2) "Assisted residential care", an independent living
19

arrangement where recipients are intermittently supervised
20

by off-site staff;
21

(3) "Crisis residential care", a non-medical living
22

arrangement where recipients in need of non-medical,
23

crisis services are supervised by on-site staff 24 hours a
24

day;
25

(4) "Home individual programs", living arrangements
26

for 2 unrelated adults outside the family home;

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1

(5) "Supported residential care", a living arrangement
2

where recipients are supervised by on-site staff and such
3

supervision is provided less than 24 hours a day;
4

(6) "Community residential alternatives", as defined
5

in the Community Residential Alternatives Licensing Act;
6

and
7

(7) "Special needs trust-supported residential care",
8

a living arrangement where recipients are supervised by
9

on-site staff and that supervision is provided 24 hours
10

per day or less, as dictated by the needs of the
11

recipients, and determined by service providers. As used
12

in this item (7), "special needs trust" means a trust for
13

the benefit of a beneficiary with a disability as
14

described in Section 1213 of the Illinois Trust Code.
15

(e) "Recipient" means a person who has received, is
16
receiving, or is in need of treatment or habilitation as those
17
terms are defined in the Mental Health and Developmental
18
Disabilities Code.
19

(f) "Unrelated" means that persons residing together in
20
programs or placements certified by a community developmental
21
services agency under this Act do not have any of the following
22
relationships by blood, marriage
,
or adoption: parent, son,
23
daughter, brother, sister, grandparent, uncle, aunt, nephew,
24
niece, great grandparent, great uncle, great aunt,
25
stepbrother, stepsister, stepson, stepdaughter, stepparent
,
or
26
first cousin.

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1
(Source: P.A. 104-270, eff. 8-15-25; revised 12-12-25.)

2

(210 ILCS 135/9a new)
3

Sec. 9a.
CILAs; disclosure, anti-looting, and consumer
4
protections.
5

(a)(1) By December 31, 2026, the Department shall adopt
6
rules requiring agencies to disclose, both upon initial
7
application for licensure and on a quarterly basis thereafter,
8
whether the agency, its subsidiaries, affiliates, parent
9
companies, or contractual service providers are owned,
10
managed, or contained within a fund owned or managed by an
11
asset management company. Such agencies shall be required to
12
disclose, both upon initial application for licensure and on a
13
quarterly basis thereafter, the size of the asset management
14
company's assets under management; individuals and
15
institutions with interests in the agency, its subsidiaries,
16
affiliates, parent companies, contractual service providers,
17
and the fund containing the same; debt held by the agency, its
18
subsidiaries, affiliates, parent companies, contractual
19
service providers, and the fund containing the same; fees and
20
payments, and rates for the same, collected by the asset
21
management company, its subsidiaries, affiliates, parent
22
companies, partners, contractual service providers for goods
23
or services provided to the agency, its subsidiaries,
24
affiliates, parent companies, contractual service providers,
25
and the fund containing the same; the number of full-time and

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1
part-time employees and contractors, grouped by job
2
classification, employed or under contract with the agency,
3
its subsidiaries, affiliates, parent companies, contractual
4
service providers and, where applicable, labor organizations
5
representing the same.
6

(2) The Department shall also adopt rules requiring
7
agencies to provide the Department with written notice of
8
transactions, and copies of agreements, which would (i) sell,
9
transfer, lease, exchange, option, encumber, convey, or
10
otherwise dispose of a material amount of the assets of the
11
agency, its subsidiaries, affiliates, parent companies, or
12
contractual service providers, to one or more entities or (ii)
13
transfer control, responsibility, or governance of a material
14
amount of the assets or operations of the agency, its
15
subsidiaries, affiliates, parent companies, or contractual
16
service providers, to one or more entities. Written notice and
17
copies of agreements required under this paragraph shall be
18
provided not less than 90 days prior to entering into the
19
agreement or transaction.
20

(b)(1) An agency owned, managed, or contained within a
21
fund owned or managed by an asset management company, its
22
parent companies, or an asset management company which owns or
23
manages the agency, its subsidiaries, affiliated entities,
24
parent companies, contractual service providers, or a fund
25
containing the same, shall not engage in a transaction
26
involving the agency, its subsidiaries, affiliated entities,

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parent companies, contractual service providers, or the fund
2
containing the same, if the transaction has a reasonable
3
likelihood of causing or materially contributing to the
4
financial distress of the agency, its subsidiaries, affiliated
5
entities, parent companies, or contractual service providers,
6
due to placing an excessively high level of debt on the same.
7

(2) An agency owned, managed, or contained within a fund
8
owned or managed by an asset management company, its parent
9
companies, or an asset management company which owns or
10
manages the agency, its subsidiaries, affiliated entities,
11
parent companies, contractual service providers, or a fund
12
containing the same, shall not cause or otherwise take actions
13
that would result in the agency, its subsidiaries, affiliated
14
entities, parent companies, contractual service providers, or
15
the fund containing the same (i) issuing debt-funded
16
dividends, (ii) paying management fees or similar fees or
17
costs, (iii) issuing dividends at a time or in an amount, or
18
perform any other action or exceed any other metric, where
19
such actions have a reasonable likelihood of causing the
20
agency, its subsidiaries, affiliated entities, parent
21
companies, or contractual service providers to become
22
financially distressed.
23

(c) A violation of this Section constitutes an unlawful
24
practice within the meaning of the Consumer Fraud and
25
Deceptive Business Practices Act. Upon becoming aware of a
26
violation, the Department shall notify the Attorney General

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and any labor organization representing workers who work or
2
worked for the agency, its subsidiaries, affiliates, parent
3
companies, or contractual service providers or in the
4
facilities of the same. The Attorney General may take action
5
under the Consumer Fraud and Deceptive Business Practices Act,
6
or any other law, to remedy violations of this Section. Labor
7
organizations representing workers who work or worked for the
8
agency, its subsidiaries, affiliated entities, parent
9
companies, or contractual service providers, or in the
10
facilities of the same, shall be entitled to the same rights to
11
action afforded to individuals under the Consumer Fraud and
12
Deceptive Business Practices Act. The Department shall also
13
require violators of this Section to prominently display a
14
notice detailing the violation in a form, location, and for a
15
duration prescribed by the Department.
16

(d) The Department shall publish disclosures, written
17
notices, and copies of agreements submitted in accordance with
18
this Section, upon receipt, and notices of violations issued
19
under this Section, upon determination, on its website, for
20
public viewing.

21

Section 35.
The Child Care Act of 1969 is amended by adding
22
Sections 2.41 and 7.6a as follows:

23

(225 ILCS 10/2.41 new)
24

Sec. 2.41.
Asset management company.
"Asset management

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company" means any business primarily engaged in managing and
2
investing client funds in assets including, but not limited
3
to, securities, equities, stocks, bonds, real estate,
4
investment funds, mutual funds, exchange-traded funds, hedge
5
funds, private equity funds, and venture capital.

6

(225 ILCS 10/7.6a new)
7

Sec. 7.6a.
Child care institutions and group homes for
8
children with developmental disabilities; disclosure,
9
anti-looting, and consumer protections.
10

(a)(1) By December 31, 2026, the Department shall adopt
11
rules requiring child care institutions and group homes for
12
children with developmental disabilities to disclose, both
13
upon initial application for licensure and on a quarterly
14
basis thereafter, whether the facility, its subsidiaries,
15
affiliates, parent companies, or contractual service providers
16
are owned, managed, or contained within a fund owned or
17
managed by an asset management company. Such facilities shall
18
be required to disclose, on forms prescribed by the
19
Department, the size of the asset management company's assets
20
under management; individuals and institutions with interests
21
in the facility, its subsidiaries, affiliates, parent
22
companies, contractual service providers, and the fund
23
containing the same; debt held by the facility, its
24
subsidiaries, affiliates, parent companies, contractual
25
service providers, and the fund containing the same; fees and

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payments, and rates for the same, collected by the asset
2
management company, its subsidiaries, affiliates, parent
3
companies, partners, contractual service providers for goods
4
or services provided to the facility, its subsidiaries,
5
affiliates, parent companies, contractual service providers,
6
and the fund containing the same; the number of full-time and
7
part-time employees and contractors, grouped by job
8
classification, employed or under contract with the facility,
9
its subsidiaries, affiliates, parent companies, contractual
10
service providers and, where applicable, labor organizations
11
representing the same.
12

(2) The Department shall also adopt rules requiring such
13
facilities to provide the Department with written notice of
14
transactions, and copies of agreements, which would (i) sell,
15
transfer, lease, exchange, option, encumber, convey, or
16
otherwise dispose of a material amount of the assets of the
17
facility, its subsidiaries, affiliates, parent companies, or
18
contractual service providers, to one or more entities or (ii)
19
transfer control, responsibility, or governance of a material
20
amount of the assets or operations of the facility, its
21
subsidiaries, affiliates, parent companies, or contractual
22
service providers, to one or more entities. Written notice and
23
copies of agreements required under this paragraph shall be
24
provided not less than 90 days prior to entering into the
25
agreement or transaction.
26

(b)(1) A facility owned, managed, or contained within a

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fund owned or managed by an asset management company, its
2
parent companies, or an asset management company which owns or
3
manages the facility, its subsidiaries, affiliated entities,
4
parent companies, contractual service providers, or a fund
5
containing the same, shall not engage in a transaction
6
involving the facility, its subsidiaries, affiliated entities,
7
parent companies, contractual service providers, or the fund
8
containing the same, if the transaction has a reasonable
9
likelihood of causing or materially contributing to the
10
financial distress of the facility, its subsidiaries,
11
affiliated entities, parent companies, or contractual service
12
providers, due to placing an excessively high level of debt on
13
the same.
14

(2) A facility owned, managed, or contained within a fund
15
owned or managed by an asset management company, its parent
16
companies, or an asset management company which owns or
17
manages the facility, its subsidiaries, affiliated entities,
18
parent companies, contractual service providers, or a fund
19
containing the same, shall not cause or otherwise take actions
20
that would result in the facility, its subsidiaries,
21
affiliated entities, parent companies, contractual service
22
providers, or the fund containing the same (i) issuing
23
debt-funded dividends, (ii) paying management fees or similar
24
fees or costs, (iii) issuing dividends at a time or in an
25
amount, or perform any other action or exceed any other
26
metric, where such actions have a reasonable likelihood of

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1
causing the facility, its subsidiaries, affiliated entities,
2
parent companies, or contractual service providers to become
3
financially distressed.
4

(c) A violation of this Section constitutes an unlawful
5
practice within the meaning of the Consumer Fraud and
6
Deceptive Business Practices Act. Upon becoming aware of a
7
violation, the Department shall notify the Attorney General
8
and any labor organization representing workers who work or
9
worked for the facility, its subsidiaries, affiliates, parent
10
companies, or contractual service providers or in the
11
facilities of the same. The Attorney General may take action
12
under the Consumer Fraud and Deceptive Business Practices Act,
13
or any other law, to remedy violations of this Section. Labor
14
organizations representing workers who work or worked for the
15
facility, its subsidiaries, affiliated entities, parent
16
companies, or contractual service providers, or in the
17
facilities of the same, shall be entitled to the same rights to
18
action afforded to individuals under the Consumer Fraud and
19
Deceptive Business Practices Act. The Department shall also
20
require violators of this Section to prominently display a
21
notice detailing the violation in a form, location, and for a
22
duration prescribed by the Department.
23

(d) The Department shall publish disclosures, written
24
notices, and copies of agreements submitted in accordance with
25
this Section, upon receipt, and notices of violations issued
26
under this Section, upon determination, on its website, for

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1
public viewing.

2

Section 40.
The Consumer Fraud and Deceptive Business
3
Practices Act is amended by changing Section 2Z as follows:

4

(815 ILCS 505/2Z)

(from Ch. 121 1/2, par. 262Z)
5

Sec. 2Z.
Violations of other Acts.
Any person who
6
knowingly violates the Automotive Repair Act, the Automotive
7
Collision Repair Act, the Home Repair and Remodeling Act, the
8
Dance Studio Act, the Physical Fitness Services Act, the
9
Hearing Instrument Consumer Protection Act, the Illinois Union
10
Label Act, the Installment Sales Contract Act, the Job
11
Referral and Job Listing Services Consumer Protection Act, the
12
Travel Promotion Consumer Protection Act, the Credit Services
13
Organizations Act, the Automatic Telephone Dialers Act, the
14
Pay-Per-Call Services Consumer Protection Act, the Telephone
15
Solicitations Act, the Illinois Funeral or Burial Funds Act,
16
the Cemetery Oversight Act, the Cemetery Care Act, the Safe
17
and Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales
18
Act, the High Risk Home Loan Act, the Payday Loan Reform Act,
19
the Predatory Loan Prevention Act, the Mortgage Rescue Fraud
20
Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax
21
Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use
22
Tax Act, the Electronic Mail Act, the Internet Caller
23
Identification Act, paragraph (6) of subsection (k) of Section
24
6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115,

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18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois
2
Vehicle Code, Article 3 of the Residential Real Property
3
Disclosure Act, the Automatic Contract Renewal Act, the
4
Reverse Mortgage Act, Section 25 of the Youth Mental Health
5
Protection Act, the Personal Information Protection Act,
or

6
the Student Online Personal Protection Act
, Section 4.02i of
7
the Illinois Act on the Aging, Section 15.2a or 68a of the
8
Mental Health and Developmental Disabilities Administrative
9
Act, Section 19 of the Community Living Facilities Licensing
10
Act, Section 3-103a of the MC/DD Act, Section 3-103a of the
11
ID/DD Community Care Act, Section 9a of the
12
Community-Integrated Living Arrangements Licensure and
13
Certification Act, and Section 7.6a of the Child Care Act of
14
1969
commits an unlawful practice within the meaning of this
15
Act.
16
(Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18;
17
100-863, eff. 8-14-18; 101-658, eff. 3-23-21.)

18

Section 99.
Effective date.
This Act takes effect upon
19
becoming law.

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INDEX

2

Statutes amended in order of appearance

3

20 ILCS 105/3.14 new
4

20 ILCS 105/4.02i new
5

20 ILCS 1705/2
from Ch. 91 1/2, par. 100-2
6

20 ILCS 1705/15.2a new
7

20 ILCS 1705/68a new
8

210 ILCS 35/3
from Ch. 111 1/2, par. 4183
9

210 ILCS 35/19 new
10

210 ILCS 46/3-103a new
11

210 ILCS 47/3-103a new
12

210 ILCS 135/3
from Ch. 91 1/2, par. 1703
13

210 ILCS 135/9a new
14

225 ILCS 10/2.41 new
15

225 ILCS 10/7.6a new
16

815 ILCS 505/2Z
from Ch. 121 1/2, par. 262Z

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