HB3504 EnrolledLRB099 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7    (Section scheduled to be repealed on December 31, 2019)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, discontinuation of a

 

 

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

 

 

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

 

 

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1    (20 ILCS 3960/8.5)
2    (Section scheduled to be repealed on December 31, 2019)
3    Sec. 8.5. Certificate of exemption for change of ownership
4of a health care facility; discontinuation of a health care
5facility or category of service; public notice and public
6hearing.
7    (a) Upon a finding that an application for a change of
8ownership is complete, the State Board shall publish a legal
9notice on one day 3 consecutive days in a newspaper of general
10circulation in the area or community to be affected and afford
11the public an opportunity to request a hearing. If the
12application is for a facility located in a Metropolitan
13Statistical Area, an additional legal notice shall be published
14in a newspaper of limited circulation, if one exists, in the
15area in which the facility is located. If the newspaper of
16limited circulation is published on a daily basis, the
17additional legal notice shall be published on one day 3
18consecutive days. The applicant shall pay the cost incurred by
19the Board in publishing the change of ownership notice in
20newspapers as required under this subsection. The legal notice
21shall also be posted on the Health Facilities and Services
22Review Board's web site and sent to the State Representative
23and State Senator of the district in which the health care
24facility is located. An application for change of ownership of
25a hospital shall not be deemed complete without a signed
26certification that for a period of 2 years after the change of

 

 

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

 

 

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1and reviewed by the Board staff, the Board Chair shall take
2action on an application for an exemption for a change of
3ownership among related persons within 45 days after the
4application has been deemed complete, provided the application
5meets the applicable standards under this Section. If the Board
6Chair has a conflict of interest or for other good cause, the
7Chair may request review by the Board. Notwithstanding any
8other provision of this Act, for purposes of this Section, a
9change of ownership among related persons means a transaction
10where the parties to the transaction are under common control
11or ownership before and after the transaction is completed.
12    Nothing in this Act shall be construed as authorizing the
13Board to impose any conditions, obligations, or limitations,
14other than those required by this Section, with respect to the
15issuance of an exemption for a change of ownership, including,
16but not limited to, the time period before which a subsequent
17change of ownership of the health care facility could be
18sought, or the commitment to continue to offer for a specified
19time period any services currently offered by the health care
20facility.
21    (a-3) Upon a finding that an application to close a health
22care facility is complete, the State Board shall publish a
23legal notice on 3 consecutive days in a newspaper of general
24circulation in the area or community to be affected and afford
25the public an opportunity to request a hearing. If the
26application is for a facility located in a Metropolitan

 

 

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

 

 

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