HB3504 EngrossedLRB099 09189 JLK 31640 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 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7    (Section scheduled to be repealed on December 31, 2019)
8    Sec. 6. Application for permit or exemption; exemption
9regulations.
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
17or denial of the permit or exemption.
18    (b) The State Board shall establish by regulation the
19procedures and requirements regarding issuance of exemptions.
20An exemption shall be approved when information required by the
21Board by rule is submitted. Projects eligible for an exemption,
22rather than a permit, include, but are not limited to, change
23of ownership of a health care facility and discontinuation of a

 

 

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1health care facility or category of service. For a change of
2ownership of a health care facility between related persons,
3the State Board shall provide by rule for an expedited process
4for obtaining an exemption in accordance with Section 8.5 of
5this Act. In connection with a change of ownership, the State
6Board may approve the transfer of an existing permit without
7regard to whether the permit to be transferred has yet been
8obligated, except for permits establishing a new facility or a
9new category of service.
10    (c) All applications shall be signed by the applicant and
11shall be verified by any 2 officers thereof.
12    (c-5) Any written review or findings of the Board staff or
13any other reviewing organization under Section 8 concerning an
14application for a permit must be made available to the public
15at least 14 calendar days before the meeting of the State Board
16at which the review or findings are considered. The applicant
17and members of the public may submit, to the State Board,
18written responses regarding the facts set forth in the review
19or findings of the Board staff or reviewing organization.
20Members of the public shall have until 10 days before the
21meeting of the State Board to submit any written response
22concerning the Board staff's written review or findings. The
23Board staff may revise any findings to address corrections of
24factual errors cited in the public response. At the meeting,
25the State Board may, in its discretion, permit the submission
26of other additional written materials.

 

 

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1    (d) Upon receipt of an application for a permit, the State
2Board shall approve and authorize the issuance of a permit if
3it finds (1) that the applicant is fit, willing, and able to
4provide a proper standard of health care service for the
5community with particular regard to the qualification,
6background and character of the applicant, (2) that economic
7feasibility is demonstrated in terms of effect on the existing
8and projected operating budget of the applicant and of the
9health care facility; in terms of the applicant's ability to
10establish and operate such facility in accordance with
11licensure regulations promulgated under pertinent state laws;
12and in terms of the projected impact on the total health care
13expenditures in the facility and community, (3) that safeguards
14are provided which assure that the establishment, construction
15or modification of the health care facility or acquisition of
16major medical equipment is consistent with the public interest,
17and (4) that the proposed project is consistent with the
18orderly and economic development of such facilities and
19equipment and is in accord with standards, criteria, or plans
20of need adopted and approved pursuant to the provisions of
21Section 12 of this Act.
22(Source: P.A. 96-31, eff. 6-30-09; 97-1115, eff. 8-27-12.)
 
23    (20 ILCS 3960/8.5)
24    (Section scheduled to be repealed on December 31, 2019)
25    Sec. 8.5. Certificate of exemption for change of ownership

 

 

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1of a health care facility; discontinuation of a health care
2facility or category of service; public notice and public
3hearing.
4    (a) Upon a finding that an application for a change of
5ownership is complete, the State Board shall publish a legal
6notice on one day 3 consecutive days in a newspaper of general
7circulation in the area or community to be affected and afford
8the public an opportunity to request a hearing. If the
9application is for a facility located in a Metropolitan
10Statistical Area, an additional legal notice shall be published
11in a newspaper of limited circulation, if one exists, in the
12area in which the facility is located. If the newspaper of
13limited circulation is published on a daily basis, the
14additional legal notice shall be published on one day 3
15consecutive days. The applicant shall pay the cost incurred by
16the Board in publishing the change of ownership notice in
17newspapers as required under this subsection. The legal notice
18shall also be posted on the Health Facilities and Services
19Review Board's web site and sent to the State Representative
20and State Senator of the district in which the health care
21facility is located. An application for change of ownership of
22a hospital shall not be deemed complete without a signed
23certification that for a period of 2 years after the change of
24ownership transaction is effective, the hospital will not adopt
25a charity care policy that is more restrictive than the policy
26in effect during the year prior to the transaction. An

 

 

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1application for a change of ownership need not contain signed
2transaction documents so long as it includes the following key
3terms of the transaction: names and background of the parties;
4structure of the transaction; the person who will be the
5licensed or certified entity after the transaction; the
6ownership or membership interests in such licensed or certified
7entity both prior to and after the transaction; fair market
8value of assets to be transferred; and the purchase price or
9other form of consideration to be provided for those assets.
10The issuance of the certificate of exemption shall be
11contingent upon the applicant submitting a statement to the
12Board within 90 days after the closing date of the transaction,
13or such longer period as provided by the Board, certifying that
14the change of ownership has been completed in accordance with
15the key terms contained in the application. If such key terms
16of the transaction change, a new application shall be required.
17    Where a change of ownership is among related persons, and
18there are no other changes being proposed at the health care
19facility that would otherwise require a permit or exemption
20under this Act, the applicant shall submit an application
21consisting of a standard notice in a form set forth by the
22Board briefly explaining the reasons for the proposed change of
23ownership. Once such an application is submitted to the Board
24and reviewed by the Board staff, the Board Chair shall take
25action on an application for an exemption for a change of
26ownership among related persons within 45 days after the

 

 

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1application has been deemed complete, provided the application
2meets the applicable standards under this Section. If the Board
3Chair has a conflict of interest or for other good cause, the
4Chair may request review by the Board. Notwithstanding any
5other provision of this Act, for purposes of this Section, a
6change of ownership among related persons means a transaction
7where the parties to the transaction are under common control
8or ownership before and after the transaction is completed.
9    Nothing in this Act shall be construed as authorizing the
10Board to impose any conditions, obligations, or limitations,
11other than those required by this Section, with respect to the
12issuance of an exemption for a change of ownership, including,
13but not limited to, the time period before which a subsequent
14change of ownership of the health care facility could be
15sought, or the commitment to continue to offer for a specified
16time period any services currently offered by the health care
17facility.
18    (a-3) Upon a finding that an application to close a health
19care facility is complete, the State Board shall publish a
20legal notice on 3 consecutive days in a newspaper of general
21circulation in the area or community to be affected and afford
22the public an opportunity to request a hearing. If the
23application is for a facility located in a Metropolitan
24Statistical Area, an additional legal notice shall be published
25in a newspaper of limited circulation, if one exists, in the
26area in which the facility is located. If the newspaper of

 

 

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1limited circulation is published on a daily basis, the
2additional legal notice shall be published on 3 consecutive
3days. The legal notice shall also be posted on the Health
4Facilities and Services Review Board's web site and sent to the
5State Representative and State Senator of the district in which
6the health care facility is located.
7    (a-5) Upon a finding that an application to discontinue a
8category of service is complete and provides the requested
9information, as specified by the State Board, an exemption
10shall be issued. No later than 30 days after the issuance of
11the exemption, the health care facility must give written
12notice of the discontinuation of the category of service to the
13State Senator and State Representative serving the legislative
14district in which the health care facility is located.
15    For the purposes of this subsection, "newspaper of limited
16circulation" means a newspaper intended to serve a particular
17or defined population of a specific geographic area within a
18Metropolitan Statistical Area such as a municipality, town,
19village, township, or community area, but does not include
20publications of professional and trade associations.
21    (b) If a public hearing is requested, it shall be held at
22least 15 days but no more than 30 days after the date of
23publication of the legal notice in the community in which the
24facility is located. The hearing shall be held in a place of
25reasonable size and accessibility and a full and complete
26written transcript of the proceedings shall be made. The

 

 

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1applicant shall provide a summary of the proposal proposed
2change of ownership for distribution at the public hearing.
3    (c) For the purposes of this Section "newspaper of limited
4circulation" means a newspaper intended to serve a particular
5or defined population of a specific geographic area within a
6Metropolitan Statistical Area such as a municipality, town,
7village, township, or community area, but does not include
8publications of professional and trade associations.
9(Source: P.A. 98-1086, eff. 8-26-14.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.