99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3133

 

Introduced , by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3960/6.2
20 ILCS 3960/12  from Ch. 111 1/2, par. 1162
20 ILCS 3960/14.1

    Amends the Illinois Health Facilities Planning Act. Removes a provision requiring the State Board to prescribe and provide the forms upon which the State Board Staff Report shall be made. Provides that the State Board shall provide its rationale when voting on an item before it at a meeting in order to comply with the Code of Civil Procedure. Requires the transcript of the meeting to be incorporated into the Board's final decision. Provides that the State Board may require in-kind services instead of or in combination with the imposition of a fine. Limits this authorization to cases where the non-compliant individual or entity has waived the right to an administrative hearing or opportunity to appear before the Board. Provides that fines shall continue to accrue until the date that the matter is referred by the State Board to the Board's legal counsel. Effective immediately.


LRB099 09158 JLK 29356 b

 

 

A BILL FOR

 

HB3133LRB099 09158 JLK 29356 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Health Facilities Planning Act is
5amended by changing Sections 6.2, 12, and 14.1 as follows:
 
6    (20 ILCS 3960/6.2)
7    (Section scheduled to be repealed on December 31, 2019)
8    Sec. 6.2. Review of permits; State Board Staff Reports.
9Upon receipt of an application for a permit to establish,
10construct, or modify a health care facility, the State Board
11staff shall notify the applicant in writing within 10 working
12days either that the application is or is not complete. If the
13application is complete, the State Board staff shall notify the
14applicant of the beginning of the review process. If the
15application is not complete, the Board staff shall explain
16within the 10-day period why the application is incomplete.
17    The State Board staff shall afford a reasonable amount of
18time as established by the State Board, but not to exceed 120
19days, for the review of the application. The 120-day period
20begins on the day the application is found to be substantially
21complete, as that term is defined by the State Board. During
22the 120-day period, the applicant may request an extension. An
23applicant may modify the application at any time before a final

 

 

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1administrative decision has been made on the application.
2    The State Board shall prescribe and provide the forms upon
3which the State Board Staff Report shall be made. The State
4Board staff shall submit its State Board Staff Report to the
5State Board for its decision-making regarding approval or
6denial of the permit.
7    When an application for a permit is initially reviewed by
8State Board staff, as provided in this Section, the State Board
9shall, upon request by the applicant or an interested person,
10afford an opportunity for a public hearing within a reasonable
11amount of time after receipt of the complete application, but
12not to exceed 90 days after receipt of the complete
13application. Notice of the hearing shall be made promptly, not
14less than 10 days before the hearing, by certified mail to the
15applicant and, not less than 10 days before the hearing, by
16publication in a newspaper of general circulation in the area
17or community to be affected. The hearing shall be held in the
18area or community in which the proposed project is to be
19located and shall be for the purpose of allowing the applicant
20and any interested person to present public testimony
21concerning the approval, denial, renewal, or revocation of the
22permit. All interested persons attending the hearing shall be
23given a reasonable opportunity to present their views or
24arguments in writing or orally, and a record of all of the
25testimony shall accompany any findings of the State Board
26staff. The State Board shall adopt reasonable rules and

 

 

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1regulations governing the procedure and conduct of the
2hearings.
3(Source: P.A. 97-1115, eff. 8-27-12; 98-1086, eff. 8-26-14.)
 
4    (20 ILCS 3960/12)  (from Ch. 111 1/2, par. 1162)
5    (Section scheduled to be repealed on December 31, 2019)
6    Sec. 12. Powers and duties of State Board. For purposes of
7this Act, the State Board shall exercise the following powers
8and duties:
9    (1) Prescribe rules, regulations, standards, criteria,
10procedures or reviews which may vary according to the purpose
11for which a particular review is being conducted or the type of
12project reviewed and which are required to carry out the
13provisions and purposes of this Act. Policies and procedures of
14the State Board shall take into consideration the priorities
15and needs of medically underserved areas and other health care
16services identified through the comprehensive health planning
17process, giving special consideration to the impact of projects
18on access to safety net services.
19    (2) Adopt procedures for public notice and hearing on all
20proposed rules, regulations, standards, criteria, and plans
21required to carry out the provisions of this Act.
22    (3) (Blank).
23    (4) Develop criteria and standards for health care
24facilities planning, conduct statewide inventories of health
25care facilities, maintain an updated inventory on the Board's

 

 

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1web site reflecting the most recent bed and service changes and
2updated need determinations when new census data become
3available or new need formulae are adopted, and develop health
4care facility plans which shall be utilized in the review of
5applications for permit under this Act. Such health facility
6plans shall be coordinated by the Board with pertinent State
7Plans. Inventories pursuant to this Section of skilled or
8intermediate care facilities licensed under the Nursing Home
9Care Act, skilled or intermediate care facilities licensed
10under the ID/DD Community Care Act, facilities licensed under
11the Specialized Mental Health Rehabilitation Act, or nursing
12homes licensed under the Hospital Licensing Act shall be
13conducted on an annual basis no later than July 1 of each year
14and shall include among the information requested a list of all
15services provided by a facility to its residents and to the
16community at large and differentiate between active and
17inactive beds.
18    In developing health care facility plans, the State Board
19shall consider, but shall not be limited to, the following:
20        (a) The size, composition and growth of the population
21    of the area to be served;
22        (b) The number of existing and planned facilities
23    offering similar programs;
24        (c) The extent of utilization of existing facilities;
25        (d) The availability of facilities which may serve as
26    alternatives or substitutes;

 

 

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1        (e) The availability of personnel necessary to the
2    operation of the facility;
3        (f) Multi-institutional planning and the establishment
4    of multi-institutional systems where feasible;
5        (g) The financial and economic feasibility of proposed
6    construction or modification; and
7        (h) In the case of health care facilities established
8    by a religious body or denomination, the needs of the
9    members of such religious body or denomination may be
10    considered to be public need.
11    The health care facility plans which are developed and
12adopted in accordance with this Section shall form the basis
13for the plan of the State to deal most effectively with
14statewide health needs in regard to health care facilities.
15    (5) Coordinate with the Center for Comprehensive Health
16Planning and other state agencies having responsibilities
17affecting health care facilities, including those of licensure
18and cost reporting. Beginning no later than January 1, 2013,
19the Department of Public Health shall produce a written annual
20report to the Governor and the General Assembly regarding the
21development of the Center for Comprehensive Health Planning.
22The Chairman of the State Board and the State Board
23Administrator shall also receive a copy of the annual report.
24    (6) Solicit, accept, hold and administer on behalf of the
25State any grants or bequests of money, securities or property
26for use by the State Board or Center for Comprehensive Health

 

 

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1Planning in the administration of this Act; and enter into
2contracts consistent with the appropriations for purposes
3enumerated in this Act.
4    (7) The State Board shall prescribe procedures for review,
5standards, and criteria which shall be utilized to make
6periodic reviews and determinations of the appropriateness of
7any existing health services being rendered by health care
8facilities subject to the Act. The State Board shall consider
9recommendations of the Board in making its determinations.
10    (8) Prescribe, in consultation with the Center for
11Comprehensive Health Planning, rules, regulations, standards,
12and criteria for the conduct of an expeditious review of
13applications for permits for projects of construction or
14modification of a health care facility, which projects are
15classified as emergency, substantive, or non-substantive in
16nature.
17    Six months after June 30, 2009 (the effective date of
18Public Act 96-31), substantive projects shall include no more
19than the following:
20        (a) Projects to construct (1) a new or replacement
21    facility located on a new site or (2) a replacement
22    facility located on the same site as the original facility
23    and the cost of the replacement facility exceeds the
24    capital expenditure minimum, which shall be reviewed by the
25    Board within 120 days;
26        (b) Projects proposing a (1) new service within an

 

 

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1    existing healthcare facility or (2) discontinuation of a
2    service within an existing healthcare facility, which
3    shall be reviewed by the Board within 60 days; or
4        (c) Projects proposing a change in the bed capacity of
5    a health care facility by an increase in the total number
6    of beds or by a redistribution of beds among various
7    categories of service or by a relocation of beds from one
8    physical facility or site to another by more than 20 beds
9    or more than 10% of total bed capacity, as defined by the
10    State Board, whichever is less, over a 2-year period.
11    The Chairman may approve applications for exemption that
12meet the criteria set forth in rules or refer them to the full
13Board. The Chairman may approve any unopposed application that
14meets all of the review criteria or refer them to the full
15Board.
16    Such rules shall not abridge the right of the Center for
17Comprehensive Health Planning to make recommendations on the
18classification and approval of projects, nor shall such rules
19prevent the conduct of a public hearing upon the timely request
20of an interested party. Such reviews shall not exceed 60 days
21from the date the application is declared to be complete.
22    (9) Prescribe rules, regulations, standards, and criteria
23pertaining to the granting of permits for construction and
24modifications which are emergent in nature and must be
25undertaken immediately to prevent or correct structural
26deficiencies or hazardous conditions that may harm or injure

 

 

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1persons using the facility, as defined in the rules and
2regulations of the State Board. This procedure is exempt from
3public hearing requirements of this Act.
4    (10) Prescribe rules, regulations, standards and criteria
5for the conduct of an expeditious review, not exceeding 60
6days, of applications for permits for projects to construct or
7modify health care facilities which are needed for the care and
8treatment of persons who have acquired immunodeficiency
9syndrome (AIDS) or related conditions.
10    (10.5) Provide its rationale when voting on an item before
11it at a State Board meeting in order to comply with subsection
12(b) of Section 3-108 of the Code of Civil Procedure. The
13transcript of the meeting shall be incorporated into the
14Board's final decision.
15    (11) Issue written decisions upon request of the applicant
16or an adversely affected party to the Board. Requests for a
17written decision shall be made within 15 days after the Board
18meeting in which a final decision has been made. A "final
19decision" for purposes of this Act is the decision to approve
20or deny an application, or take other actions permitted under
21this Act, at the time and date of the meeting that such action
22is scheduled by the Board. State Board members shall provide
23their rationale when voting on an item before the State Board
24at a State Board meeting in order to comply with subsection (b)
25of Section 3-108 of the Administrative Review Law of the Code
26of Civil Procedure. The transcript of the State Board meeting

 

 

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1shall be incorporated into the Board's final decision. The
2staff of the Board shall prepare a written copy of the final
3decision and the Board shall approve a final copy for inclusion
4in the formal record. The Board shall consider, for approval,
5the written draft of the final decision no later than the next
6scheduled Board meeting. The written decision shall identify
7the applicable criteria and factors listed in this Act and the
8Board's regulations that were taken into consideration by the
9Board when coming to a final decision. If the Board denies or
10fails to approve an application for permit or exemption, the
11Board shall include in the final decision a detailed
12explanation as to why the application was denied and identify
13what specific criteria or standards the applicant did not
14fulfill.
15    (12) Require at least one of its members to participate in
16any public hearing, after the appointment of a majority of the
17members to the Board.
18    (13) Provide a mechanism for the public to comment on, and
19request changes to, draft rules and standards.
20    (14) Implement public information campaigns to regularly
21inform the general public about the opportunity for public
22hearings and public hearing procedures.
23    (15) Establish a separate set of rules and guidelines for
24long-term care that recognizes that nursing homes are a
25different business line and service model from other regulated
26facilities. An open and transparent process shall be developed

 

 

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1that considers the following: how skilled nursing fits in the
2continuum of care with other care providers, modernization of
3nursing homes, establishment of more private rooms,
4development of alternative services, and current trends in
5long-term care services. The Chairman of the Board shall
6appoint a permanent Health Services Review Board Long-term Care
7Facility Advisory Subcommittee that shall develop and
8recommend to the Board the rules to be established by the Board
9under this paragraph (15). The Subcommittee shall also provide
10continuous review and commentary on policies and procedures
11relative to long-term care and the review of related projects.
12In consultation with other experts from the health field of
13long-term care, the Board and the Subcommittee shall study new
14approaches to the current bed need formula and Health Service
15Area boundaries to encourage flexibility and innovation in
16design models reflective of the changing long-term care
17marketplace and consumer preferences. The Subcommittee shall
18evaluate, and make recommendations to the State Board
19regarding, the buying, selling, and exchange of beds between
20long-term care facilities within a specified geographic area or
21drive time. The Board shall file the proposed related
22administrative rules for the separate rules and guidelines for
23long-term care required by this paragraph (15) by no later than
24September 30, 2011. The Subcommittee shall be provided a
25reasonable and timely opportunity to review and comment on any
26review, revision, or updating of the criteria, standards,

 

 

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1procedures, and rules used to evaluate project applications as
2provided under Section 12.3 of this Act.
3    (16) Prescribe the format of and provide forms pertaining
4to the State Board Staff Report. A State Board Staff Report
5shall pertain to applications that include, but are not limited
6to, applications for permit or exemption, applications for
7permit renewal, applications for extension of the obligation
8period, applications requesting a declaratory ruling, or
9applications under the Health Care Worker Self-Referral Self
10Referral Act. State Board Staff Reports shall compare
11applications to the relevant review criteria under the Board's
12rules.
13    (17) (16) Establish a separate set of rules and guidelines
14for facilities licensed under the Specialized Mental Health
15Rehabilitation Act of 2013. An application for the
16re-establishment of a facility in connection with the
17relocation of the facility shall not be granted unless the
18applicant has a contractual relationship with at least one
19hospital to provide emergency and inpatient mental health
20services required by facility consumers, and at least one
21community mental health agency to provide oversight and
22assistance to facility consumers while living in the facility,
23and appropriate services, including case management, to assist
24them to prepare for discharge and reside stably in the
25community thereafter. No new facilities licensed under the
26Specialized Mental Health Rehabilitation Act of 2013 shall be

 

 

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1established after June 16, 2014 (the effective date of Public
2Act 98-651) this amendatory Act of the 98th General Assembly
3except in connection with the relocation of an existing
4facility to a new location. An application for a new location
5shall not be approved unless there are adequate community
6services accessible to the consumers within a reasonable
7distance, or by use of public transportation, so as to
8facilitate the goal of achieving maximum individual self-care
9and independence. At no time shall the total number of
10authorized beds under this Act in facilities licensed under the
11Specialized Mental Health Rehabilitation Act of 2013 exceed the
12number of authorized beds on June 16, 2014 (the effective date
13of Public Act 98-651) this amendatory Act of the 98th General
14Assembly.
15(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
16eff. 7-13-12; 97-1045, eff. 8-21-13; 97-1115, eff. 8-27-12;
1798-414, eff. 1-1-14; 98-463, eff. 8-16-13; 98-651, eff.
186-16-14; 98-1086, eff. 8-26-14; revised 10-1-14.)
 
19    (20 ILCS 3960/14.1)
20    Sec. 14.1. Denial of permit; other sanctions.
21    (a) The State Board may deny an application for a permit or
22may revoke or take other action as permitted by this Act with
23regard to a permit as the State Board deems appropriate,
24including the imposition of fines as set forth in this Section,
25for any one or a combination of the following:

 

 

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1        (1) The acquisition of major medical equipment without
2    a permit or in violation of the terms of a permit.
3        (2) The establishment, construction, or modification
4    of a health care facility without a permit or in violation
5    of the terms of a permit.
6        (3) The violation of any provision of this Act or any
7    rule adopted under this Act.
8        (4) The failure, by any person subject to this Act, to
9    provide information requested by the State Board or Agency
10    within 30 days after a formal written request for the
11    information.
12        (5) The failure to pay any fine imposed under this
13    Section within 30 days of its imposition.
14    (a-5) For facilities licensed under the ID/DD Community
15Care Act, no permit shall be denied on the basis of prior
16operator history, other than for actions specified under item
17(2), (4), or (5) of Section 3-117 of the ID/DD Community Care
18Act. For facilities licensed under the Specialized Mental
19Health Rehabilitation Act, no permit shall be denied on the
20basis of prior operator history, other than for actions
21specified under item (2), (4), or (5) of Section 3-117 of the
22Specialized Mental Health Rehabilitation Act. For facilities
23licensed under the Nursing Home Care Act, no permit shall be
24denied on the basis of prior operator history, other than for:
25(i) actions specified under item (2), (3), (4), (5), or (6) of
26Section 3-117 of the Nursing Home Care Act; (ii) actions

 

 

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1specified under item (a)(6) of Section 3-119 of the Nursing
2Home Care Act; or (iii) actions within the preceding 5 years
3constituting a substantial and repeated failure to comply with
4the Nursing Home Care Act or the rules and regulations adopted
5by the Department under that Act. The State Board shall not
6deny a permit on account of any action described in this
7subsection (a-5) without also considering all such actions in
8the light of all relevant information available to the State
9Board, including whether the permit is sought to substantially
10comply with a mandatory or voluntary plan of correction
11associated with any action described in this subsection (a-5).
12    (b) Persons shall be subject to fines as follows:
13        (1) A permit holder who fails to comply with the
14    requirements of maintaining a valid permit shall be fined
15    an amount not to exceed 1% of the approved permit amount
16    plus an additional 1% of the approved permit amount for
17    each 30-day period, or fraction thereof, that the violation
18    continues.
19        (2) A permit holder who alters the scope of an approved
20    project or whose project costs exceed the allowable permit
21    amount without first obtaining approval from the State
22    Board shall be fined an amount not to exceed the sum of (i)
23    the lesser of $25,000 or 2% of the approved permit amount
24    and (ii) in those cases where the approved permit amount is
25    exceeded by more than $1,000,000, an additional $20,000 for
26    each $1,000,000, or fraction thereof, in excess of the

 

 

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1    approved permit amount.
2        (2.5) A permit holder who fails to comply with the
3    post-permit and reporting requirements set forth in
4    Section 5 shall be fined an amount not to exceed $10,000
5    plus an additional $10,000 for each 30-day period, or
6    fraction thereof, that the violation continues. This fine
7    shall continue to accrue until the date that (i) the
8    post-permit requirements are met and the post-permit
9    reports are received by the State Board or (ii) the matter
10    is referred by the State Board to the State Board's legal
11    counsel. The accrued fine is not waived by the permit
12    holder submitting the required information and reports.
13    Prior to any fine beginning to accrue, the Board shall
14    notify, in writing, a permit holder of the due date for the
15    post-permit and reporting requirements no later than 30
16    days before the due date for the requirements. This
17    paragraph (2.5) takes effect 6 months after August 27, 2012
18    (the effective date of Public Act 97-1115).
19        (3) A person who acquires major medical equipment or
20    who establishes a category of service without first
21    obtaining a permit or exemption, as the case may be, shall
22    be fined an amount not to exceed $10,000 for each such
23    acquisition or category of service established plus an
24    additional $10,000 for each 30-day period, or fraction
25    thereof, that the violation continues.
26        (4) A person who constructs, modifies, or establishes a

 

 

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1    health care facility without first obtaining a permit shall
2    be fined an amount not to exceed $25,000 plus an additional
3    $25,000 for each 30-day period, or fraction thereof, that
4    the violation continues.
5        (5) A person who discontinues a health care facility or
6    a category of service without first obtaining a permit
7    shall be fined an amount not to exceed $10,000 plus an
8    additional $10,000 for each 30-day period, or fraction
9    thereof, that the violation continues. For purposes of this
10    subparagraph (5), facilities licensed under the Nursing
11    Home Care Act or the ID/DD Community Care Act, with the
12    exceptions of facilities operated by a county or Illinois
13    Veterans Homes, are exempt from this permit requirement.
14    However, facilities licensed under the Nursing Home Care
15    Act or the ID/DD Community Care Act must comply with
16    Section 3-423 of the Nursing Home Care Act or Section 3-423
17    of the ID/DD Community Care Act and must provide the Board
18    and the Department of Human Services with 30 days' written
19    notice of its intent to close. Facilities licensed under
20    the ID/DD Community Care Act also must provide the Board
21    and the Department of Human Services with 30 days' written
22    notice of its intent to reduce the number of beds for a
23    facility.
24        (6) A person subject to this Act who fails to provide
25    information requested by the State Board or Agency within
26    30 days of a formal written request shall be fined an

 

 

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1    amount not to exceed $1,000 plus an additional $1,000 for
2    each 30-day period, or fraction thereof, that the
3    information is not received by the State Board or Agency.
4    (b-5) The State Board may require in-kind services instead
5of or in combination with the imposition of a fine. This
6authorization is limited to cases where the non-compliant
7individual or entity has waived the right to an administrative
8hearing or opportunity to appear before the Board regarding the
9non-compliant matter.
10    (c) Before imposing any fine authorized under this Section,
11the State Board shall afford the person or permit holder, as
12the case may be, an appearance before the State Board and an
13opportunity for a hearing before a hearing officer appointed by
14the State Board. The hearing shall be conducted in accordance
15with Section 10.
16    (d) All fines collected under this Act shall be transmitted
17to the State Treasurer, who shall deposit them into the
18Illinois Health Facilities Planning Fund.
19    (e) Fines imposed under this Section shall continue to
20accrue until the date that the matter is referred by the State
21Board to the State Board's legal counsel.
22(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
23eff. 7-13-12; 97-980, eff. 8-17-12; 97-1115, eff. 8-27-12;
2498-463, eff. 8-16-13.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.