NURSE AGENCY LICENSE PENALTY
Expands the Nurse Agency Licensing Act to regulate any person operating or advertising nurse agencies, requires licensing, and imposes up to $10,000 per violation.
Expands the Nurse Agency Licensing Act to regulate any person operating or advertising nurse agencies, requires licensing, and imposes up to $10,000 per violation.
Status (key steps)
- Introduced: Feb. 4, 2025 (Rep. Marcus C. Evans, Jr.).
- Referred to Health Care Licenses Committee; House Committee Amendment No. 1 filed and adopted; Do Pass as Amended reported (3/12/2025). Subsequent House readings and re-referrals to Rules occurred in March–April 2025. Effective date: upon becoming law (per bill text).
Purpose and intent
- To strengthen regulation and enforcement authority over nurse agencies and related “persons” that operate or advertise nurse agency services, by (1) broadening investigatory and enforcement language to apply to any person (not only licensees/applicants), (2) formalizing complaint/reporting processes, and (3) clarifying civil penalties and other compliance requirements.
Key provisions and changes
- Broader enforcement target: replaces some references to “licensee or applicant” or “nurse agency” with the term “person,” which expands the scope of entities and individuals subject to investigation and sanction (including those operating or advertising without a license).
- Investigations and complaint system:
- Department must investigate complaints from “interested persons” and establish a system for reporting complaints against nurse (health care) staffing agencies.
- Department must publish on its website how to submit complaints.
- Defines “interested party” to include health care facilities, nurse staffing agencies, or employees of such facilities/agencies.
- Investigators may inspect premises, subpoena witnesses and records, and administer oaths.
- Licensing and application (Section 4 & 5 changes):
- Clarifies that no person may lawfully establish, operate, maintain, or advertise as a nurse agency in Illinois unless licensed under this Act.
- Application requirements spelled out: applicant identity and business structure; premises; management; statement of financial solvency; experience and qualifications; evidence of legal compliance on employee compensation (taxes, unemployment, workers’ comp, overtime); proof of liability/workers’ compensation insurance; copies of existing contracts with health care facilities; and any other information the Department requires.
- Penalty up to $500 for submitting false or misleading application information (petty offense).
- Insurance thresholds are maintained/clarified (bill text references per-incident and aggregate coverage — see statute for exact amounts).
- Orders and remedies:
- After notice and hearing, Department may issue cease-and-desist orders, seek injunctions, and pursue court enforcement including contempt for violations of Department orders.
- Civil penalties:
- Any person who violates the Act or rules is subject to civil penalties up to $10,000 per occurrence, payable to the Department. Penalties may be assessed administratively and collected through civil action if needed.
- Wage/payment remedy:
- Any nurse staffing agency found to have failed to pay an employee 100% of the hourly rate specified in the contract with a health care facility is liable to the employee for the underpayment plus damages equal to 5% of the underpayment.
Who is affected
- Nurse agencies and any persons operating, maintaining, or advertising nurse agency services (including unlicensed operators).
- Health care facilities (prohibited from using unlicensed agencies).
- Employees of nurse staffing agencies (expanded protections and remedies for underpayment).
- The Department responsible for licensing/enforcement (expanded duties for complaint handling and investigations).
Potential impact
- Strengthens enforcement tools and expands the pool of subject entities (including unlicensed operators), which may increase investigations and sanctions.
- Formal complaint/reporting requirements and public guidance aim to make violations easier to report and detect.
- Health care facilities may face increased compliance obligations to ensure they use licensed agencies.
- Staffing agencies face clearer licensing, application, insurance, and wage-compliance obligations; increased civil-penalty exposure (up to $10,000 per occurrence).
For exact statutory language and precise insurance and penalty figures, consult the bill text and the amended sections of the Nurse Agency Licensing Act (225 ILCS 510, sections 4, 5, and 14.1).
Compiled from official sources — confirm details with the bill’s official record.
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