AFSCME members in Illinois push new state law protecting disability services
A new Illinois state law can help to prevent services for people with disabilities from being bled dry by asset management companies. It’s a major victory for AFSCME public service workers and the people in their care.
Illinois Gov. JB Pritzker recently signed the law that was initiated by AFSCME Council 31, which represents more than 5,000 workers in private-sector, community-based disability care service providers in the state.
“This law is an important step toward preventing the predatory takeover of nonprofit agencies that serve individuals with disabilities,” said Council 31 Executive Director Roberta Lynch, who’s also an AFSCME vice president.
In 2024, state regulators revoked the license of Broadstep, an operator of homes for individuals with disabilities in Illinois. Critics linked the company’s downfall to its acquisition by an asset management company.
Under the new law, starting next summer, firms that own disability service agencies must certify that their management will not throw the agencies into financial distress. These certifications will empower the state and watchdogs to pursue asset managers and private equity firms if they try to plunder the social safety net.
The law also requires agencies that provide services for individuals with developmental disabilities to disclose to the state Health Facilities and Services Review Board whether the agency is owned by an asset management company and notify the board in advance of any proposed sale that would result in the agency being owned or managed by these firms.
Under the law, agencies have to divulge information about their ownership, finances, and staffing on a quarterly basis. They will also be required to notify the state ahead of any transaction, like a sale or the issuance of dividends, that might seriously erode the agency’s financial condition or governance.
These “anti-looting” provisions are the first of their kind in the country, according to Council 31, and a powerful example of how AFSCME members are standing up to protect the public services that their communities depend upon.
