Rep. Kathleen Willis

Filed: 3/7/2019





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2    AMENDMENT NO. ______. Amend House Bill 123 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Health Facilities Planning Act is
5amended by changing Sections 6 and 8.5 as follows:
6    (20 ILCS 3960/6)  (from Ch. 111 1/2, par. 1156)
7    (Section scheduled to be repealed on December 31, 2029)
8    Sec. 6. Application for permit or exemption; exemption
10    (a) An application for a permit or exemption shall be made
11to the State Board upon forms provided by the State Board. This
12application shall contain such information as the State Board
13deems necessary. The State Board shall not require an applicant
14to file a Letter of Intent before an application is filed. Such
15application shall include affirmative evidence on which the
16State Board or Chairman may make its decision on the approval



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1or denial of the permit or exemption.
2    (b) The State Board shall establish by regulation the
3procedures and requirements regarding issuance of exemptions.
4An exemption shall be approved when information required by the
5Board by rule is submitted. Projects eligible for an exemption,
6rather than a permit, include, but are not limited to, change
7of ownership of a health care facility, discontinuation of a
8category of service, and discontinuation of a health care
9facility, other than a health care facility maintained by the
10State or any agency or department thereof or a nursing home
11maintained by a county. For a change of ownership of a health
12care facility between related persons, the State Board shall
13provide by rule for an expedited process for obtaining an
14exemption in accordance with Section 8.5 of this Act.
15    (c) All applications shall be signed by the applicant and
16shall be verified by any 2 officers thereof.
17    (c-5) Any written review or findings of the Board staff
18concerning an application for a permit must be made available
19to the public at least 14 calendar days before the meeting of
20the State Board at which the review or findings are considered.
21The applicant and members of the public may submit, to the
22State Board, written responses regarding the facts set forth in
23the review or findings of the Board staff. Members of the
24public shall have until 10 days before the meeting of the State
25Board to submit any written response concerning the Board
26staff's written review or findings. The Board staff may revise



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1any findings to address corrections of factual errors cited in
2the public response. At the meeting, the State Board may, in
3its discretion, permit the submission of other additional
4written materials.
5    (d) Upon receipt of an application for a permit, the State
6Board shall approve and authorize the issuance of a permit if
7it finds (1) that the applicant is fit, willing, and able to
8provide a proper standard of health care service for the
9community with particular regard to the qualification,
10background and character of the applicant, (2) that economic
11feasibility is demonstrated in terms of effect on the existing
12and projected operating budget of the applicant and of the
13health care facility; in terms of the applicant's ability to
14establish and operate such facility in accordance with
15licensure regulations promulgated under pertinent state laws;
16and in terms of the projected impact on the total health care
17expenditures in the facility and community, (3) that safeguards
18are provided that assure that the establishment, construction
19or modification of the health care facility or acquisition of
20major medical equipment is consistent with the public interest,
21and (4) that the proposed project is consistent with the
22orderly and economic development of such facilities and
23equipment and is in accord with standards, criteria, or plans
24of need adopted and approved pursuant to the provisions of
25Section 12 of this Act.
26(Source: P.A. 99-154, eff. 7-28-15; 100-518, eff. 6-1-18;



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1100-681, eff. 8-3-18.)
2    (20 ILCS 3960/8.5)
3    (Section scheduled to be repealed on December 31, 2029)
4    Sec. 8.5. Certificate of exemption for change of ownership
5of a health care facility; discontinuation of a health care
6facility or category of service; public notice and public
8    (a) Upon a finding that an application for a change of
9ownership is complete, the State Board shall publish a legal
10notice on 3 consecutive days one day in a newspaper of general
11circulation in the area or community to be affected and afford
12the public an opportunity to request a hearing. If the
13application is for a facility located in a Metropolitan
14Statistical Area, an additional legal notice shall be published
15in a newspaper of limited circulation, if one exists, in the
16area in which the facility is located. If the newspaper of
17limited circulation is published on a daily basis, the
18additional legal notice shall be published on 3 consecutive
19days one day. The applicant shall pay the cost incurred by the
20Board in publishing the change of ownership notice in
21newspapers as required under this subsection. The legal notice
22shall also be posted on the Health Facilities and Services
23Review Board's web site and sent to the State Representative
24and State Senator of the district in which the health care
25facility is located. An application for change of ownership of



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1a hospital shall not be deemed complete without a signed
2certification that for a period of 2 years after the change of
3ownership transaction is effective, the hospital will not adopt
4a charity care policy that is more restrictive than the policy
5in effect during the year prior to the transaction. An
6application for a change of ownership need not contain signed
7transaction documents so long as it includes the following key
8terms of the transaction: names and background of the parties;
9structure of the transaction; the person who will be the
10licensed or certified entity after the transaction; the
11ownership or membership interests in such licensed or certified
12entity both prior to and after the transaction; fair market
13value of assets to be transferred; and the purchase price or
14other form of consideration to be provided for those assets.
15The issuance of the certificate of exemption shall be
16contingent upon the applicant submitting a statement to the
17Board within 90 days after the closing date of the transaction,
18or such longer period as provided by the Board, certifying that
19the change of ownership has been completed in accordance with
20the key terms contained in the application. If such key terms
21of the transaction change, a new application shall be required.
22    Where a change of ownership is among related persons, and
23there are no other changes being proposed at the health care
24facility that would otherwise require a permit or exemption
25under this Act, the applicant shall submit an application
26consisting of a standard notice in a form set forth by the



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1Board briefly explaining the reasons for the proposed change of
2ownership. Once such an application is submitted to the Board
3and reviewed by the Board staff, the Board Chair shall take
4action on an application for an exemption for a change of
5ownership among related persons within 45 days after the
6application has been deemed complete, provided the application
7meets the applicable standards under this Section. If the Board
8Chair has a conflict of interest or for other good cause, the
9Chair may request review by the Board. Notwithstanding any
10other provision of this Act, for purposes of this Section, a
11change of ownership among related persons means a transaction
12where the parties to the transaction are under common control
13or ownership before and after the transaction is completed.
14    Nothing in this Act shall be construed as authorizing the
15Board to impose any conditions, obligations, or limitations,
16other than those required by this Section, with respect to the
17issuance of an exemption for a change of ownership, including,
18but not limited to, the time period before which a subsequent
19change of ownership of the health care facility could be
20sought, or the commitment to continue to offer for a specified
21time period any services currently offered by the health care
23    (a-3) (Blank). Upon a finding that an application to close
24a health care facility is complete, the State Board shall
25publish a legal notice on 3 consecutive days in a newspaper of
26general circulation in the area or community to be affected and



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1afford the public an opportunity to request a hearing. If the
2application is for a facility located in a Metropolitan
3Statistical Area, an additional legal notice shall be published
4in a newspaper of limited circulation, if one exists, in the
5area in which the facility is located. If the newspaper of
6limited circulation is published on a daily basis, the
7additional legal notice shall be published on 3 consecutive
8days. The legal notice shall also be posted on the Health
9Facilities and Services Review Board's web site and sent to the
10State Representative and State Senator of the district in which
11the health care facility is located. In addition, the health
12care facility shall provide notice of closure to the local
13media that the health care facility would routinely notify
14about facility events. No later than 90 days after a
15discontinuation of a health facility, the applicant must submit
16a statement to the State Board certifying that the
17discontinuation is complete.
18    (a-5) (Blank). Upon a finding that an application to
19discontinue a category of service is complete and provides the
20requested information, as specified by the State Board, an
21exemption shall be issued. No later than 30 days after the
22issuance of the exemption, the health care facility must give
23written notice of the discontinuation of the category of
24service to the State Senator and State Representative serving
25the legislative district in which the health care facility is
26located. No later than 90 days after a discontinuation of a



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1category of service, the applicant must submit a statement to
2the State Board certifying that the discontinuation is
4    (a-6) Notwithstanding any decision of the Board or
5provision to the contrary, the Governor is authorized to
6reverse a decision of the Board regarding an application for an
7exemption submitted under this Act. If there is a pending
8lawsuit on the closure of a health care facility for which an
9application for an exemption is under review, the Board shall
10suspend any pending action involving that application until the
11resolution of the lawsuit. The changes made by this amendatory
12Act of the 101st General Assembly shall apply to all
13applications pending before the Board on and after the
14effective date of this amendatory Act of the 101st General
15Assembly in which no final action has been taken by the Board.
16    (b) If a public hearing is requested, it shall be held at
17least 15 days but no more than 30 days after the date of
18publication of the legal notice in the community in which the
19facility is located. The hearing shall be held in the affected
20area or community in a place of reasonable size and
21accessibility and a full and complete written transcript of the
22proceedings shall be made. All interested persons attending the
23hearing shall be given a reasonable opportunity to present
24their positions in writing or orally. The applicant shall
25provide a summary of the proposed change of ownership proposal
26for distribution at the public hearing.



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1    (c) For the purposes of this Section "newspaper of limited
2circulation" means a newspaper intended to serve a particular
3or defined population of a specific geographic area within a
4Metropolitan Statistical Area such as a municipality, town,
5village, township, or community area, but does not include
6publications of professional and trade associations.
7(Source: P.A. 99-154, eff. 7-28-15; 99-527, eff. 1-1-17;
899-551, eff. 7-15-16; 100-201, eff. 8-18-17.)
9    Section 99. Effective date. This Act takes effect upon
10becoming law.".