HB4518 EngrossedLRB099 17095 RJF 41453 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 3, 4, 8.5, 10, and 14.1 as
6follows:
 
7    (20 ILCS 3960/3)  (from Ch. 111 1/2, par. 1153)
8    (Section scheduled to be repealed on December 31, 2019)
9    Sec. 3. Definitions. As used in this Act:
10    "Health care facilities" means and includes the following
11facilities, organizations, and related persons:
12        (1) An ambulatory surgical treatment center required
13    to be licensed pursuant to the Ambulatory Surgical
14    Treatment Center Act.
15        (2) An institution, place, building, or agency
16    required to be licensed pursuant to the Hospital Licensing
17    Act.
18        (3) Skilled and intermediate long term care facilities
19    licensed under the Nursing Home Care Act.
20            (A) If a demonstration project under the Nursing
21        Home Care Act applies for a certificate of need to
22        convert to a nursing facility, it shall meet the
23        licensure and certificate of need requirements in

 

 

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1        effect as of the date of application.
2            (B) Except as provided in item (A) of this
3        subsection, this Act does not apply to facilities
4        granted waivers under Section 3-102.2 of the Nursing
5        Home Care Act.
6        (3.5) Skilled and intermediate care facilities
7    licensed under the ID/DD Community Care Act or the MC/DD
8    Act. No permit or exemption is required for a facility
9    licensed under the ID/DD Community Care Act or the MC/DD
10    Act prior to the reduction of the number of beds at a
11    facility. If there is a total reduction of beds at a
12    facility licensed under the ID/DD Community Care Act or the
13    MC/DD Act, this is a discontinuation or closure of the
14    facility. If a facility licensed under the ID/DD Community
15    Care Act or the MC/DD Act reduces the number of beds or
16    discontinues the facility, that facility must notify the
17    Board as provided in Section 14.1 of this Act.
18        (3.7) Facilities licensed under the Specialized Mental
19    Health Rehabilitation Act of 2013.
20        (4) Hospitals, nursing homes, ambulatory surgical
21    treatment centers, or kidney disease treatment centers
22    maintained by the State or any department or agency
23    thereof.
24        (5) Kidney disease treatment centers, including a
25    free-standing hemodialysis unit required to be licensed
26    under the End Stage Renal Disease Facility Act.

 

 

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1            (A) This Act does not apply to a dialysis facility
2        that provides only dialysis training, support, and
3        related services to individuals with end stage renal
4        disease who have elected to receive home dialysis.
5            (B) This Act does not apply to a dialysis unit
6        located in a licensed nursing home that offers or
7        provides dialysis-related services to residents with
8        end stage renal disease who have elected to receive
9        home dialysis within the nursing home.
10            (C) The Board, however, may require dialysis
11        facilities and licensed nursing homes under items (A)
12        and (B) of this subsection to report statistical
13        information on a quarterly basis to the Board to be
14        used by the Board to conduct analyses on the need for
15        proposed kidney disease treatment centers.
16        (6) An institution, place, building, or room used for
17    the performance of outpatient surgical procedures that is
18    leased, owned, or operated by or on behalf of an
19    out-of-state facility.
20        (7) An institution, place, building, or room used for
21    provision of a health care category of service, including,
22    but not limited to, cardiac catheterization and open heart
23    surgery.
24        (8) An institution, place, building, or room housing
25    major medical equipment used in the direct clinical
26    diagnosis or treatment of patients, and whose project cost

 

 

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1    is in excess of the capital expenditure minimum.
2    "Health care facilities" does not include the following
3entities or facility transactions:
4        (1) Federally-owned facilities.
5        (2) Facilities used solely for healing by prayer or
6    spiritual means.
7        (3) An existing facility located on any campus facility
8    as defined in Section 5-5.8b of the Illinois Public Aid
9    Code, provided that the campus facility encompasses 30 or
10    more contiguous acres and that the new or renovated
11    facility is intended for use by a licensed residential
12    facility.
13        (4) Facilities licensed under the Supportive
14    Residences Licensing Act or the Assisted Living and Shared
15    Housing Act.
16        (5) Facilities designated as supportive living
17    facilities that are in good standing with the program
18    established under Section 5-5.01a of the Illinois Public
19    Aid Code.
20        (6) Facilities established and operating under the
21    Alternative Health Care Delivery Act as a children's
22    community-based health care center alternative health care
23    model demonstration program or as an Alzheimer's Disease
24    Management Center alternative health care model
25    demonstration program.
26        (7) The closure of an entity or a portion of an entity

 

 

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1    licensed under the Nursing Home Care Act, the Specialized
2    Mental Health Rehabilitation Act of 2013, the ID/DD
3    Community Care Act, or the MC/DD Act, with the exception of
4    facilities operated by a county or Illinois Veterans Homes,
5    that elect to convert, in whole or in part, to an assisted
6    living or shared housing establishment licensed under the
7    Assisted Living and Shared Housing Act and with the
8    exception of a facility licensed under the Specialized
9    Mental Health Rehabilitation Act of 2013 in connection with
10    a proposal to close a facility and re-establish the
11    facility in another location.
12        (8) Any change of ownership of a health care facility
13    that is licensed under the Nursing Home Care Act, the
14    Specialized Mental Health Rehabilitation Act of 2013, the
15    ID/DD Community Care Act, or the MC/DD Act, with the
16    exception of facilities operated by a county or Illinois
17    Veterans Homes. Changes of ownership of facilities
18    licensed under the Nursing Home Care Act must meet the
19    requirements set forth in Sections 3-101 through 3-119 of
20    the Nursing Home Care Act.
21    With the exception of those health care facilities
22specifically included in this Section, nothing in this Act
23shall be intended to include facilities operated as a part of
24the practice of a physician or other licensed health care
25professional, whether practicing in his individual capacity or
26within the legal structure of any partnership, medical or

 

 

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1professional corporation, or unincorporated medical or
2professional group. Further, this Act shall not apply to
3physicians or other licensed health care professional's
4practices where such practices are carried out in a portion of
5a health care facility under contract with such health care
6facility by a physician or by other licensed health care
7professionals, whether practicing in his individual capacity
8or within the legal structure of any partnership, medical or
9professional corporation, or unincorporated medical or
10professional groups, unless the entity constructs, modifies,
11or establishes a health care facility as specifically defined
12in this Section. This Act shall apply to construction or
13modification and to establishment by such health care facility
14of such contracted portion which is subject to facility
15licensing requirements, irrespective of the party responsible
16for such action or attendant financial obligation.
17    "Person" means any one or more natural persons, legal
18entities, governmental bodies other than federal, or any
19combination thereof.
20    "Consumer" means any person other than a person (a) whose
21major occupation currently involves or whose official capacity
22within the last 12 months has involved the providing,
23administering or financing of any type of health care facility,
24(b) who is engaged in health research or the teaching of
25health, (c) who has a material financial interest in any
26activity which involves the providing, administering or

 

 

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1financing of any type of health care facility, or (d) who is or
2ever has been a member of the immediate family of the person
3defined by (a), (b), or (c).
4    "State Board" or "Board" means the Health Facilities and
5Services Review Board.
6    "Construction or modification" means the establishment,
7erection, building, alteration, reconstruction, modernization,
8improvement, extension, discontinuation, change of ownership,
9of or by a health care facility, or the purchase or acquisition
10by or through a health care facility of equipment or service
11for diagnostic or therapeutic purposes or for facility
12administration or operation, or any capital expenditure made by
13or on behalf of a health care facility which exceeds the
14capital expenditure minimum; however, any capital expenditure
15made by or on behalf of a health care facility for (i) the
16construction or modification of a facility licensed under the
17Assisted Living and Shared Housing Act or (ii) a conversion
18project undertaken in accordance with Section 30 of the Older
19Adult Services Act shall be excluded from any obligations under
20this Act.
21    "Establish" means the construction of a health care
22facility or the replacement of an existing facility on another
23site or the initiation of a category of service.
24    "Major medical equipment" means medical equipment which is
25used for the provision of medical and other health services and
26which costs in excess of the capital expenditure minimum,

 

 

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1except that such term does not include medical equipment
2acquired by or on behalf of a clinical laboratory to provide
3clinical laboratory services if the clinical laboratory is
4independent of a physician's office and a hospital and it has
5been determined under Title XVIII of the Social Security Act to
6meet the requirements of paragraphs (10) and (11) of Section
71861(s) of such Act. In determining whether medical equipment
8has a value in excess of the capital expenditure minimum, the
9value of studies, surveys, designs, plans, working drawings,
10specifications, and other activities essential to the
11acquisition of such equipment shall be included.
12    "Capital Expenditure" means an expenditure: (A) made by or
13on behalf of a health care facility (as such a facility is
14defined in this Act); and (B) which under generally accepted
15accounting principles is not properly chargeable as an expense
16of operation and maintenance, or is made to obtain by lease or
17comparable arrangement any facility or part thereof or any
18equipment for a facility or part; and which exceeds the capital
19expenditure minimum.
20    For the purpose of this paragraph, the cost of any studies,
21surveys, designs, plans, working drawings, specifications, and
22other activities essential to the acquisition, improvement,
23expansion, or replacement of any plant or equipment with
24respect to which an expenditure is made shall be included in
25determining if such expenditure exceeds the capital
26expenditures minimum. Unless otherwise interdependent, or

 

 

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1submitted as one project by the applicant, components of
2construction or modification undertaken by means of a single
3construction contract or financed through the issuance of a
4single debt instrument shall not be grouped together as one
5project. Donations of equipment or facilities to a health care
6facility which if acquired directly by such facility would be
7subject to review under this Act shall be considered capital
8expenditures, and a transfer of equipment or facilities for
9less than fair market value shall be considered a capital
10expenditure for purposes of this Act if a transfer of the
11equipment or facilities at fair market value would be subject
12to review.
13    "Capital expenditure minimum" means $11,500,000 for
14projects by hospital applicants, $6,500,000 for applicants for
15projects related to skilled and intermediate care long-term
16care facilities licensed under the Nursing Home Care Act, and
17$3,000,000 for projects by all other applicants, which shall be
18annually adjusted to reflect the increase in construction costs
19due to inflation, for major medical equipment and for all other
20capital expenditures.
21    "Non-clinical service area" means an area (i) for the
22benefit of the patients, visitors, staff, or employees of a
23health care facility and (ii) not directly related to the
24diagnosis, treatment, or rehabilitation of persons receiving
25services from the health care facility. "Non-clinical service
26areas" include, but are not limited to, chapels; gift shops;

 

 

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1news stands; computer systems; tunnels, walkways, and
2elevators; telephone systems; projects to comply with life
3safety codes; educational facilities; student housing;
4patient, employee, staff, and visitor dining areas;
5administration and volunteer offices; modernization of
6structural components (such as roof replacement and masonry
7work); boiler repair or replacement; vehicle maintenance and
8storage facilities; parking facilities; mechanical systems for
9heating, ventilation, and air conditioning; loading docks; and
10repair or replacement of carpeting, tile, wall coverings,
11window coverings or treatments, or furniture. Solely for the
12purpose of this definition, "non-clinical service area" does
13not include health and fitness centers.
14    "Areawide" means a major area of the State delineated on a
15geographic, demographic, and functional basis for health
16planning and for health service and having within it one or
17more local areas for health planning and health service. The
18term "region", as contrasted with the term "subregion", and the
19word "area" may be used synonymously with the term "areawide".
20    "Local" means a subarea of a delineated major area that on
21a geographic, demographic, and functional basis may be
22considered to be part of such major area. The term "subregion"
23may be used synonymously with the term "local".
24    "Physician" means a person licensed to practice in
25accordance with the Medical Practice Act of 1987, as amended.
26    "Licensed health care professional" means a person

 

 

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1licensed to practice a health profession under pertinent
2licensing statutes of the State of Illinois.
3    "Director" means the Director of the Illinois Department of
4Public Health.
5    "Agency" or "Department" means the Illinois Department of
6Public Health.
7    "Alternative health care model" means a facility or program
8authorized under the Alternative Health Care Delivery Act.
9    "Out-of-state facility" means a person that is both (i)
10licensed as a hospital or as an ambulatory surgery center under
11the laws of another state or that qualifies as a hospital or an
12ambulatory surgery center under regulations adopted pursuant
13to the Social Security Act and (ii) not licensed under the
14Ambulatory Surgical Treatment Center Act, the Hospital
15Licensing Act, or the Nursing Home Care Act. Affiliates of
16out-of-state facilities shall be considered out-of-state
17facilities. Affiliates of Illinois licensed health care
18facilities 100% owned by an Illinois licensed health care
19facility, its parent, or Illinois physicians licensed to
20practice medicine in all its branches shall not be considered
21out-of-state facilities. Nothing in this definition shall be
22construed to include an office or any part of an office of a
23physician licensed to practice medicine in all its branches in
24Illinois that is not required to be licensed under the
25Ambulatory Surgical Treatment Center Act.
26    "Change of ownership of a health care facility" means a

 

 

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1change in the person who has ownership or control of a health
2care facility's physical plant and capital assets. A change in
3ownership is indicated by the following transactions: sale,
4transfer, acquisition, lease, change of sponsorship, or other
5means of transferring control.
6    "Related person" means any person that: (i) is at least 50%
7owned, directly or indirectly, by either the health care
8facility or a person owning, directly or indirectly, at least
950% of the health care facility; or (ii) owns, directly or
10indirectly, at least 50% of the health care facility.
11    "Charity care" means care provided by a health care
12facility for which the provider does not expect to receive
13payment from the patient or a third-party payer.
14    "Freestanding emergency center" means a facility subject
15to licensure under Section 32.5 of the Emergency Medical
16Services (EMS) Systems Act.
17    "Category of service" means a grouping by generic class of
18various types or levels of support functions, equipment, care,
19or treatment provided to patients or residents, including, but
20not limited to, classes such as medical-surgical, pediatrics,
21or cardiac catheterization. A category of service may include
22subcategories or levels of care that identify a particular
23degree or type of care within the category of service. Nothing
24in this definition shall be construed to include the practice
25of a physician or other licensed health care professional while
26functioning in an office providing for the care, diagnosis, or

 

 

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1treatment of patients. A category of service that is subject to
2the Board's jurisdiction must be designated in rules adopted by
3the Board.
4    "State Board Staff Report" means the document that sets
5forth the review and findings of the State Board staff, as
6prescribed by the State Board, regarding applications subject
7to Board jurisdiction.
8(Source: P.A. 98-414, eff. 1-1-14; 98-629, eff. 1-1-15; 98-651,
9eff. 6-16-14; 98-1086, eff. 8-26-14; 99-78, eff. 7-20-15;
1099-180, eff. 7-29-15.)
 
11    (20 ILCS 3960/4)  (from Ch. 111 1/2, par. 1154)
12    (Section scheduled to be repealed on December 31, 2019)
13    Sec. 4. Health Facilities and Services Review Board;
14membership; appointment; term; compensation; quorum.
15Notwithstanding any other provision in this Section, members of
16the State Board holding office on the day before the effective
17date of this amendatory Act of the 96th General Assembly shall
18retain their authority.
19    (a) There is created the Health Facilities and Services
20Review Board, which shall perform the functions described in
21this Act. The Department shall provide operational support to
22the Board as necessary, including the provision of office
23space, supplies, and clerical, financial, and accounting
24services. The Board may contract for functions or operational
25support as needed. The Board may also contract with experts

 

 

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1related to specific health services or facilities and create
2technical advisory panels to assist in the development of
3criteria, standards, and procedures used in the evaluation of
4applications for permit and exemption.
5    (b) Beginning March 1, 2010, the State Board shall consist
6of 9 voting members. All members shall be residents of Illinois
7and at least 4 shall reside outside the Chicago Metropolitan
8Statistical Area. Consideration shall be given to potential
9appointees who reflect the ethnic and cultural diversity of the
10State. Neither Board members nor Board staff shall be convicted
11felons or have pled guilty to a felony.
12    Each member shall have a reasonable knowledge of the
13practice, procedures and principles of the health care delivery
14system in Illinois, including at least 5 members who shall be
15knowledgeable about health care delivery systems, health
16systems planning, finance, or the management of health care
17facilities currently regulated under the Act. One member shall
18be a representative of a non-profit health care consumer
19advocacy organization. A spouse, parent, sibling, or child of a
20Board member cannot be an employee, agent, or under contract
21with services or facilities subject to the Act. Prior to
22appointment and in the course of service on the Board, members
23of the Board shall disclose the employment or other financial
24interest of any other relative of the member, if known, in
25service or facilities subject to the Act. Members of the Board
26shall declare any conflict of interest that may exist with

 

 

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1respect to the status of those relatives and recuse themselves
2from voting on any issue for which a conflict of interest is
3declared. No person shall be appointed or continue to serve as
4a member of the State Board who is, or whose spouse, parent,
5sibling, or child is, a member of the Board of Directors of,
6has a financial interest in, or has a business relationship
7with a health care facility.
8    Notwithstanding any provision of this Section to the
9contrary, the term of office of each member of the State Board
10serving on the day before the effective date of this amendatory
11Act of the 96th General Assembly is abolished on the date upon
12which members of the 9-member Board, as established by this
13amendatory Act of the 96th General Assembly, have been
14appointed and can begin to take action as a Board. Members of
15the State Board serving on the day before the effective date of
16this amendatory Act of the 96th General Assembly may be
17reappointed to the 9-member Board. Prior to March 1, 2010, the
18Health Facilities Planning Board shall establish a plan to
19transition its powers and duties to the Health Facilities and
20Services Review Board.
21    (c) The State Board shall be appointed by the Governor,
22with the advice and consent of the Senate. Not more than 5 of
23the appointments shall be of the same political party at the
24time of the appointment.
25    The Secretary of Human Services, the Director of Healthcare
26and Family Services, and the Director of Public Health, or

 

 

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1their designated representatives, shall serve as ex-officio,
2non-voting members of the State Board.
3    (d) Of those 9 members initially appointed by the Governor
4following the effective date of this amendatory Act of the 96th
5General Assembly, 3 shall serve for terms expiring July 1,
62011, 3 shall serve for terms expiring July 1, 2012, and 3
7shall serve for terms expiring July 1, 2013. Thereafter, each
8appointed member shall hold office for a term of 3 years,
9provided that any member appointed to fill a vacancy occurring
10prior to the expiration of the term for which his or her
11predecessor was appointed shall be appointed for the remainder
12of such term and the term of office of each successor shall
13commence on July 1 of the year in which his predecessor's term
14expires. Each member appointed after the effective date of this
15amendatory Act of the 96th General Assembly shall hold office
16until his or her successor is appointed and qualified. The
17Governor may reappoint a member for additional terms, but no
18member shall serve more than 3 terms, subject to review and
19re-approval every 3 years.
20    (e) State Board members, while serving on business of the
21State Board, shall receive actual and necessary travel and
22subsistence expenses while so serving away from their places of
23residence. Until March 1, 2010, a member of the State Board who
24experiences a significant financial hardship due to the loss of
25income on days of attendance at meetings or while otherwise
26engaged in the business of the State Board may be paid a

 

 

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1hardship allowance, as determined by and subject to the
2approval of the Governor's Travel Control Board.
3    (f) The Governor shall designate one of the members to
4serve as the Chairman of the Board, who shall be a person with
5expertise in health care delivery system planning, finance or
6management of health care facilities that are regulated under
7the Act. The Chairman shall annually review Board member
8performance and shall report the attendance record of each
9Board member to the General Assembly.
10    (g) The State Board, through the Chairman, shall prepare a
11separate and distinct budget approved by the General Assembly
12and shall hire and supervise its own professional staff
13responsible for carrying out the responsibilities of the Board.
14    (h) The State Board shall meet at least every 45 days, or
15as often as the Chairman of the State Board deems necessary, or
16upon the request of a majority of the members.
17    (i) Five members of the State Board shall constitute a
18quorum. The affirmative vote of 5 of the members of the State
19Board shall be necessary for any action requiring a vote to be
20taken by the State Board. A vacancy in the membership of the
21State Board shall not impair the right of a quorum to exercise
22all the rights and perform all the duties of the State Board as
23provided by this Act.
24    (j) A State Board member shall disqualify himself or
25herself from the consideration of any application for a permit
26or exemption in which the State Board member or the State Board

 

 

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1member's spouse, parent, sibling, or child: (i) has an economic
2interest in the matter; or (ii) is employed by, serves as a
3consultant for, or is a member of the governing board of the
4applicant or a party opposing the application.
5    (k) The Chairman, Board members, and Board staff must
6comply with the Illinois Governmental Ethics Act.
7(Source: P.A. 96-31, eff. 6-30-09; 97-1115, eff. 8-27-12.)
 
8    (20 ILCS 3960/8.5)
9    (Section scheduled to be repealed on December 31, 2019)
10    Sec. 8.5. Certificate of exemption for change of ownership
11of a health care facility; discontinuation of a health care
12facility or category of service; public notice and public
13hearing.
14    (a) Upon a finding that an application for a change of
15ownership is complete, the State Board shall publish a legal
16notice on one day in a newspaper of general circulation in the
17area or community to be affected and afford the public an
18opportunity to request a hearing. If the application is for a
19facility located in a Metropolitan Statistical Area, an
20additional legal notice shall be published in a newspaper of
21limited circulation, if one exists, in the area in which the
22facility is located. If the newspaper of limited circulation is
23published on a daily basis, the additional legal notice shall
24be published on one day. The applicant shall pay the cost
25incurred by the Board in publishing the change of ownership

 

 

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1notice in newspapers as required under this subsection. The
2legal notice shall also be posted on the Health Facilities and
3Services Review Board's web site and sent to the State
4Representative and State Senator of the district in which the
5health care facility is located. An application for change of
6ownership of a hospital shall not be deemed complete without a
7signed certification that for a period of 2 years after the
8change of ownership transaction is effective, the hospital will
9not adopt a charity care policy that is more restrictive than
10the policy in effect during the year prior to the transaction.
11An application for a change of ownership need not contain
12signed transaction documents so long as it includes the
13following key terms of the transaction: names and background of
14the parties; structure of the transaction; the person who will
15be the licensed or certified entity after the transaction; the
16ownership or membership interests in such licensed or certified
17entity both prior to and after the transaction; fair market
18value of assets to be transferred; and the purchase price or
19other form of consideration to be provided for those assets.
20The issuance of the certificate of exemption shall be
21contingent upon the applicant submitting a statement to the
22Board within 90 days after the closing date of the transaction,
23or such longer period as provided by the Board, certifying that
24the change of ownership has been completed in accordance with
25the key terms contained in the application. If such key terms
26of the transaction change, a new application shall be required.

 

 

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1    Where a change of ownership is among related persons, and
2there are no other changes being proposed at the health care
3facility that would otherwise require a permit or exemption
4under this Act, the applicant shall submit an application
5consisting of a standard notice in a form set forth by the
6Board briefly explaining the reasons for the proposed change of
7ownership. Once such an application is submitted to the Board
8and reviewed by the Board staff, the Board Chair shall take
9action on an application for an exemption for a change of
10ownership among related persons within 45 days after the
11application has been deemed complete, provided the application
12meets the applicable standards under this Section. If the Board
13Chair has a conflict of interest or for other good cause, the
14Chair may request review by the Board. Notwithstanding any
15other provision of this Act, for purposes of this Section, a
16change of ownership among related persons means a transaction
17where the parties to the transaction are under common control
18or ownership before and after the transaction is completed.
19    Nothing in this Act shall be construed as authorizing the
20Board to impose any conditions, obligations, or limitations,
21other than those required by this Section, with respect to the
22issuance of an exemption for a change of ownership, including,
23but not limited to, the time period before which a subsequent
24change of ownership of the health care facility could be
25sought, or the commitment to continue to offer for a specified
26time period any services currently offered by the health care

 

 

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

 

 

HB4518 Engrossed- 22 -LRB099 17095 RJF 41453 b

1district in which the health care facility is located. No later
2than 90 days after a discontinuation of a category of service,
3the applicant must submit a statement to the State Board
4certifying that the discontinuation is complete.
5    (b) If a public hearing is requested, it shall be held at
6least 15 days but no more than 30 days after the date of
7publication of the legal notice in the community in which the
8facility is located. The hearing shall be held in a place of
9reasonable size and accessibility and a full and complete
10written transcript of the proceedings shall be made. All
11interested persons attending the hearing shall be given a
12reasonable opportunity to present their positions in writing or
13orally. The applicant shall provide a summary of the proposal
14for distribution at the public hearing.
15    (c) For the purposes of this Section "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(Source: P.A. 98-1086, eff. 8-26-14; 99-154, eff. 7-28-15.)
 
22    (20 ILCS 3960/10)  (from Ch. 111 1/2, par. 1160)
23    (Section scheduled to be repealed on December 31, 2019)
24    Sec. 10. Presenting information relevant to the approval of
25a permit or certificate or in opposition to the denial of the

 

 

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1application; notice of outcome and review proceedings. When a
2motion by the State Board, to approve an application for a
3permit or a certificate of recognition, fails to pass, or when
4a motion to deny an application for a permit or a certificate
5of recognition is passed, the applicant or the holder of the
6permit, as the case may be, and such other parties as the State
7Board permits, will be given an opportunity to appear before
8the State Board and present such information as may be relevant
9to the approval of a permit or certificate or in opposition to
10the denial of the application.
11    Subsequent to an appearance by the applicant before the
12State Board or default of such opportunity to appear, a motion
13by the State Board to approve an application for a permit or a
14certificate of recognition which fails to pass or a motion to
15deny an application for a permit or a certificate of
16recognition which passes shall be considered denial of the
17application for a permit or certificate of recognition, as the
18case may be. Such action of denial or an action by the State
19Board to revoke a permit or a certificate of recognition shall
20be communicated to the applicant or holder of the permit or
21certificate of recognition. Such person or organization shall
22be afforded an opportunity for a hearing before an
23administrative law judge, who is appointed by the Chairman of
24the State Board. A written notice of a request for such hearing
25shall be served upon the Chairman of the State Board within 30
26days following notification of the decision of the State Board.

 

 

HB4518 Engrossed- 24 -LRB099 17095 RJF 41453 b

1The administrative law judge shall take actions necessary to
2ensure that the hearing is completed within a reasonable period
3of time, but not to exceed 120 days, except for delays or
4continuances agreed to by the person requesting the hearing.
5Following its consideration of the report of the hearing, or
6upon default of the party to the hearing, the State Board shall
7make its final determination, specifying its findings and
8conclusions within 90 days of receiving the written report of
9the hearing. A copy of such determination shall be sent by
10certified mail or served personally upon the party.
11    A full and complete record shall be kept of all
12proceedings, including the notice of hearing, complaint, and
13all other documents in the nature of pleadings, written motions
14filed in the proceedings, and the report and orders of the
15State Board or hearing officer. All testimony shall be reported
16but need not be transcribed unless the decision is appealed in
17accordance with the Administrative Review Law, as now or
18hereafter amended. A copy or copies of the transcript may be
19obtained by any interested party on payment of the cost of
20preparing such copy or copies.
21    The State Board or hearing officer shall upon its own or
22his motion, or on the written request of any party to the
23proceeding who has, in the State Board's or hearing officer's
24opinion, demonstrated the relevancy of such request to the
25outcome of the proceedings, issue subpoenas requiring the
26attendance and the giving of testimony by witnesses, and

 

 

HB4518 Engrossed- 25 -LRB099 17095 RJF 41453 b

1subpoenas duces tecum requiring the production of books,
2papers, records, or memoranda. The fees of witnesses for
3attendance and travel shall be the same as the fees of
4witnesses before the circuit court of this State.
5    When the witness is subpoenaed at the instance of the State
6Board, or its hearing officer, such fees shall be paid in the
7same manner as other expenses of the Board, and when the
8witness is subpoenaed at the instance of any other party to any
9such proceeding the State Board may, in accordance with its
10rules, require that the cost of service of the subpoena or
11subpoena duces tecum and the fee of the witness be borne by the
12party at whose instance the witness is summoned. In such case,
13the State Board in its discretion, may require a deposit to
14cover the cost of such service and witness fees. A subpoena or
15subpoena duces tecum so issued shall be served in the same
16manner as a subpoena issued out of a court.
17    Any circuit court of this State upon the application of the
18State Board or upon the application of any other party to the
19proceeding, may, in its discretion, compel the attendance of
20witnesses, the production of books, papers, records, or
21memoranda and the giving of testimony before it or its hearing
22officer conducting an investigation or holding a hearing
23authorized by this Act, by an attachment for contempt, or
24otherwise, in the same manner as production of evidence may be
25compelled before the court.
26(Source: P.A. 97-1115, eff. 8-27-12; 98-1086, eff. 8-26-14.)
 

 

 

HB4518 Engrossed- 26 -LRB099 17095 RJF 41453 b

1    (20 ILCS 3960/14.1)
2    Sec. 14.1. Denial of permit; other sanctions.
3    (a) The State Board may deny an application for a permit or
4may revoke or take other action as permitted by this Act with
5regard to a permit as the State Board deems appropriate,
6including the imposition of fines as set forth in this Section,
7for any one or a combination of the following:
8        (1) The acquisition of major medical equipment without
9    a permit or in violation of the terms of a permit.
10        (2) The establishment, construction, modification, or
11    change of ownership of a health care facility without a
12    permit or exemption or in violation of the terms of a
13    permit.
14        (3) The violation of any provision of this Act or any
15    rule adopted under this Act.
16        (4) The failure, by any person subject to this Act, to
17    provide information requested by the State Board or Agency
18    within 30 days after a formal written request for the
19    information.
20        (5) The failure to pay any fine imposed under this
21    Section within 30 days of its imposition.
22    (a-5) For facilities licensed under the ID/DD Community
23Care Act, no permit shall be denied on the basis of prior
24operator history, other than for actions specified under item
25(2), (4), or (5) of Section 3-117 of the ID/DD Community Care

 

 

HB4518 Engrossed- 27 -LRB099 17095 RJF 41453 b

1Act. For facilities licensed under the MC/DD Act, no permit
2shall be denied on the basis of prior operator history, other
3than for actions specified under item (2), (4), or (5) of
4Section 3-117 of the MC/DD Act. For facilities licensed under
5the Specialized Mental Health Rehabilitation Act of 2013, no
6permit shall be denied on the basis of prior operator history,
7other than for actions specified under subsections (a) and (b)
8item (2), (4), or (5) of Section 4-109 3-117 of the Specialized
9Mental Health Rehabilitation Act of 2013. For facilities
10licensed under the Nursing Home Care Act, no permit shall be
11denied on the basis of prior operator history, other than for:
12(i) actions specified under item (2), (3), (4), (5), or (6) of
13Section 3-117 of the Nursing Home Care Act; (ii) actions
14specified under item (a)(6) of Section 3-119 of the Nursing
15Home Care Act; or (iii) actions within the preceding 5 years
16constituting a substantial and repeated failure to comply with
17the Nursing Home Care Act or the rules and regulations adopted
18by the Department under that Act. The State Board shall not
19deny a permit on account of any action described in this
20subsection (a-5) without also considering all such actions in
21the light of all relevant information available to the State
22Board, including whether the permit is sought to substantially
23comply with a mandatory or voluntary plan of correction
24associated with any action described in this subsection (a-5).
25    (b) Persons shall be subject to fines as follows:
26        (1) A permit holder who fails to comply with the

 

 

HB4518 Engrossed- 28 -LRB099 17095 RJF 41453 b

1    requirements of maintaining a valid permit shall be fined
2    an amount not to exceed 1% of the approved permit amount
3    plus an additional 1% of the approved permit amount for
4    each 30-day period, or fraction thereof, that the violation
5    continues.
6        (2) A permit holder who alters the scope of an approved
7    project or whose project costs exceed the allowable permit
8    amount without first obtaining approval from the State
9    Board shall be fined an amount not to exceed the sum of (i)
10    the lesser of $25,000 or 2% of the approved permit amount
11    and (ii) in those cases where the approved permit amount is
12    exceeded by more than $1,000,000, an additional $20,000 for
13    each $1,000,000, or fraction thereof, in excess of the
14    approved permit amount.
15        (2.5) A permit holder who fails to comply with the
16    post-permit and reporting requirements set forth in
17    Sections Section 5 and 8.5 shall be fined an amount not to
18    exceed $10,000 plus an additional $10,000 for each 30-day
19    period, or fraction thereof, that the violation continues.
20    This fine shall continue to accrue until the date that (i)
21    the post-permit requirements are met and the post-permit or
22    post-exemption reports are received by the State Board or
23    (ii) the matter is referred by the State Board to the State
24    Board's legal counsel. The accrued fine is not waived by
25    the permit holder submitting the required information and
26    reports. Prior to any fine beginning to accrue, the Board

 

 

HB4518 Engrossed- 29 -LRB099 17095 RJF 41453 b

1    shall notify, in writing, a permit holder of the due date
2    for the post-permit and reporting requirements no later
3    than 30 days before the due date for the requirements. This
4    paragraph (2.5) takes effect 6 months after August 27, 2012
5    (the effective date of Public Act 97-1115).
6        (3) A person who acquires major medical equipment or
7    who establishes a category of service without first
8    obtaining a permit or exemption, as the case may be, shall
9    be fined an amount not to exceed $10,000 for each such
10    acquisition or category of service established plus an
11    additional $10,000 for each 30-day period, or fraction
12    thereof, that the violation continues.
13        (4) A person who constructs, modifies, establishes, or
14    changes ownership of a health care facility without first
15    obtaining a permit or exemption shall be fined an amount
16    not to exceed $25,000 plus an additional $25,000 for each
17    30-day period, or fraction thereof, that the violation
18    continues.
19        (5) A person who discontinues a health care facility or
20    a category of service without first obtaining a permit or
21    exemption shall be fined an amount not to exceed $10,000
22    plus an additional $10,000 for each 30-day period, or
23    fraction thereof, that the violation continues. For
24    purposes of this subparagraph (5), facilities licensed
25    under the Nursing Home Care Act, the ID/DD Community Care
26    Act, or the MC/DD Act, with the exceptions of facilities

 

 

HB4518 Engrossed- 30 -LRB099 17095 RJF 41453 b

1    operated by a county or Illinois Veterans Homes, are exempt
2    from this permit requirement. However, facilities licensed
3    under the Nursing Home Care Act, the ID/DD Community Care
4    Act, or the MC/DD Act must comply with Section 3-423 of the
5    Nursing Home Care Act, Section 3-423 of the ID/DD Community
6    Care Act, or Section 3-423 of the MC/DD Act and must
7    provide the Board and the Department of Human Services with
8    30 days' written notice of their intent to close.
9    Facilities licensed under the ID/DD Community Care Act or
10    the MC/DD Act also must provide the Board and the
11    Department of Human Services with 30 days' written notice
12    of their intent to reduce the number of beds for a
13    facility.
14        (6) A person subject to this Act who fails to provide
15    information requested by the State Board or Agency within
16    30 days of a formal written request shall be fined an
17    amount not to exceed $1,000 plus an additional $1,000 for
18    each 30-day period, or fraction thereof, that the
19    information is not received by the State Board or Agency.
20    (b-5) The State Board may accept in-kind services instead
21of or in combination with the imposition of a fine. This
22authorization is limited to cases where the non-compliant
23individual or entity has waived the right to an administrative
24hearing or opportunity to appear before the Board regarding the
25non-compliant matter.
26    (c) Before imposing any fine authorized under this Section,

 

 

HB4518 Engrossed- 31 -LRB099 17095 RJF 41453 b

1the State Board shall afford the person or permit holder, as
2the case may be, an appearance before the State Board and an
3opportunity for a hearing before a hearing officer appointed by
4the State Board. The hearing shall be conducted in accordance
5with Section 10. Requests for an appearance before the State
6Board must be made within 30 days after receiving notice that a
7fine will be imposed.
8    (d) All fines collected under this Act shall be transmitted
9to the State Treasurer, who shall deposit them into the
10Illinois Health Facilities Planning Fund.
11    (e) Fines imposed under this Section shall continue to
12accrue until: (i) the date that the matter is referred by the
13State Board to the Board's legal counsel; or (ii) the date that
14the health care facility becomes compliant with the Act,
15whichever is earlier.
16(Source: P.A. 98-463, eff. 8-16-13; 99-114, eff. 7-23-15;
1799-180, eff. 7-29-15; revised 10-14-15.)