State of Illinois
2011 and 2012


Introduced 2/1/2012, by Sen. Susan Garrett


See Index

    Amends the Illinois Health Facilities Planning Act. Provides that members of the Health Facilities and Services Review Board shall receive compensation for duties related to all attended, scheduled meetings of the full Board. Provides that the Chairman of the Board shall receive additional compensation for duties specific to the Chairmanship. Sets forth the requirements for the review of a permit application to establish, construct, or modify a health care facility. Sets forth the requirements for post-permit reports. Provides that a person whose application for a permit has been denied or whose permit has been revoked shall be afforded an opportunity for a hearing before an administrative law judge (now, a hearing officer) appointed by the Chairman of the Board (now, the Director of the Illinois Department of Public Health). Provides that a permit holder must submit the final completion and cost report within 90 days after the approved project completion date and submit annual progress reports. Provides that annual progress reports shall include information regarding the committed funds expended toward the approved project. Extends the deadline for the Board to establish certain rules concerning long-term care to September 30, 2011. Provides that a permit holder who fails to comply with certain post-permit and reporting requirements shall be fined an amount not to exceed $10,000 plus an additional $10,000 for each 30-day period, or fraction thereof, that the violation continues. Makes other changes. Effective immediately.

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SB2934LRB097 18443 PJG 63670 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 4, 5, 6, 10, 12, 12.5, and 14.1
6and adding Section 6.2 as follows:
7    (20 ILCS 3960/4)  (from Ch. 111 1/2, par. 1154)
8    (Section scheduled to be repealed on December 31, 2019)
9    Sec. 4. Health Facilities and Services Review Board;
10membership; appointment; term; compensation; quorum.
11Notwithstanding any other provision in this Section, members of
12the State Board holding office on the day before the effective
13date of this amendatory Act of the 96th General Assembly shall
14retain their authority.
15    (a) There is created the Health Facilities and Services
16Review Board, which shall perform the functions described in
17this Act. The Department shall provide operational support to
18the Board, including the provision of office space, supplies,
19and clerical, financial, and accounting services. The Board may
20contract with experts related to specific health services or
21facilities and create technical advisory panels to assist in
22the development of criteria, standards, and procedures used in
23the evaluation of applications for permit and exemption.



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1    (b) Beginning March 1, 2010, the State Board shall consist
2of 9 voting members. All members shall be residents of Illinois
3and at least 4 shall reside outside the Chicago Metropolitan
4Statistical Area. Consideration shall be given to potential
5appointees who reflect the ethnic and cultural diversity of the
6State. Neither Board members nor Board staff shall be convicted
7felons or have pled guilty to a felony.
8    Each member shall have a reasonable knowledge of the
9practice, procedures and principles of the health care delivery
10system in Illinois, including at least 5 members who shall be
11knowledgeable about health care delivery systems, health
12systems planning, finance, or the management of health care
13facilities currently regulated under the Act. One member shall
14be a representative of a non-profit health care consumer
15advocacy organization. A spouse, parent, sibling, or child
16Spouses or other members of the immediate family of a the Board
17member cannot be an employee, agent, or under contract with
18services or facilities subject to the Act. Prior to appointment
19and in the course of service on the Board, members of the Board
20shall disclose the employment or other financial interest of
21any other relative of the member, if known, in service or
22facilities subject to the Act. Members of the Board shall
23declare any conflict of interest that may exist with respect to
24the status of those relatives and recuse themselves from voting
25on any issue for which a conflict of interest is declared. No
26person shall be appointed or continue to serve as a member of



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1the State Board who is, or whose spouse, parent, sibling, or
2child is, a member of the Board of Directors of, has a
3financial interest in, or has a business relationship with a
4health care facility.
5    Notwithstanding any provision of this Section to the
6contrary, the term of office of each member of the State Board
7serving on the day before the effective date of this amendatory
8Act of the 96th General Assembly is abolished on the date upon
9which members of the 9-member Board, as established by this
10amendatory Act of the 96th General Assembly, have been
11appointed and can begin to take action as a Board. Members of
12the State Board serving on the day before the effective date of
13this amendatory Act of the 96th General Assembly may be
14reappointed to the 9-member Board. Prior to March 1, 2010, the
15Health Facilities Planning Board shall establish a plan to
16transition its powers and duties to the Health Facilities and
17Services Review Board.
18    (c) The State Board shall be appointed by the Governor,
19with the advice and consent of the Senate. Not more than 5 of
20the appointments shall be of the same political party at the
21time of the appointment.
22    The Secretary of Human Services, the Director of Healthcare
23and Family Services, and the Director of Public Health, or
24their designated representatives, shall serve as ex-officio,
25non-voting members of the State Board.
26    (d) Of those 9 members initially appointed by the Governor



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1following the effective date of this amendatory Act of the 96th
2General Assembly, 3 shall serve for terms expiring July 1,
32011, 3 shall serve for terms expiring July 1, 2012, and 3
4shall serve for terms expiring July 1, 2013. Thereafter, each
5appointed member shall hold office for a term of 3 years,
6provided that any member appointed to fill a vacancy occurring
7prior to the expiration of the term for which his or her
8predecessor was appointed shall be appointed for the remainder
9of such term and the term of office of each successor shall
10commence on July 1 of the year in which his predecessor's term
11expires. Each member appointed after the effective date of this
12amendatory Act of the 96th General Assembly shall hold office
13until his or her successor is appointed and qualified. The
14Governor may reappoint a member for additional terms, but no
15member shall serve more than 3 terms, subject to review and
16re-approval every 3 years.
17    (e) State Board members, while serving on business of the
18State Board, shall receive actual and necessary travel and
19subsistence expenses while so serving away from their places of
20residence. Until March 1, 2010, a member of the State Board who
21experiences a significant financial hardship due to the loss of
22income on days of attendance at meetings or while otherwise
23engaged in the business of the State Board may be paid a
24hardship allowance, as determined by and subject to the
25approval of the Governor's Travel Control Board. On and after
26the effective date of this amendatory Act of the 97th General



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1Assembly, Board members shall receive compensation for duties
2related to all attended, scheduled meetings of the full Board,
3at a rate of $4,500 per meeting (approximately 8 meetings per
4year). Participation at public hearings, committee meetings,
5and meetings with staff, as well as review time for
6applications, shall not be compensated separately.
7    (f) The Governor shall designate one of the members to
8serve as the Chairman of the Board, who shall be a person with
9expertise in health care delivery system planning, finance or
10management of health care facilities that are regulated under
11the Act. The Chairman shall annually review Board member
12performance and shall report the attendance record of each
13Board member to the General Assembly. The Chairman shall
14receive additional compensation, at a rate of $30,000 per year,
15for duties specific to the Chairmanship. The Chairman shall
16also receive compensation under subsection (e) for all
17attended, scheduled meetings of the full Board.
18    (g) The State Board, through the Chairman, shall prepare a
19separate and distinct budget approved by the General Assembly
20and shall hire and supervise its own professional staff
21responsible for carrying out the responsibilities of the Board.
22    (h) The State Board shall meet at least every 45 days, or
23as often as the Chairman of the State Board deems necessary, or
24upon the request of a majority of the members.
25    (i) Five members of the State Board shall constitute a
26quorum. The affirmative vote of 5 of the members of the State



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1Board shall be necessary for any action requiring a vote to be
2taken by the State Board. A vacancy in the membership of the
3State Board shall not impair the right of a quorum to exercise
4all the rights and perform all the duties of the State Board as
5provided by this Act.
6    (j) A State Board member shall disqualify himself or
7herself from the consideration of any application for a permit
8or exemption in which the State Board member or the State Board
9member's spouse, parent, sibling, or child: (i) has an economic
10interest in the matter; or (ii) is employed by, serves as a
11consultant for, or is a member of the governing board of the
12applicant or a party opposing the application.
13    (k) The Chairman, Board members, and Board staff must
14comply with the Illinois Governmental Ethics Act.
15(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.)
16    (20 ILCS 3960/5)  (from Ch. 111 1/2, par. 1155)
17    (Section scheduled to be repealed on December 31, 2019)
18    Sec. 5. Construction, modification, or establishment of
19health care facilities or acquisition of major medical
20equipment; permits or exemptions. No person shall construct,
21modify or establish a health care facility or acquire major
22medical equipment without first obtaining a permit or exemption
23from the State Board. The State Board shall not delegate to the
24staff of the State Board or any other person or entity the
25authority to grant permits or exemptions whenever the staff or



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1other person or entity would be required to exercise any
2discretion affecting the decision to grant a permit or
3exemption. The State Board may, by rule, delegate authority to
4the Chairman to grant permits or exemptions when applications
5meet all of the State Board's review criteria and are
7    A permit or exemption shall be obtained prior to the
8acquisition of major medical equipment or to the construction
9or modification of a health care facility which:
10        (a) requires a total capital expenditure in excess of
11    the capital expenditure minimum; or
12        (b) substantially changes the scope or changes the
13    functional operation of the facility; or
14        (c) changes the bed capacity of a health care facility
15    by increasing the total number of beds or by distributing
16    beds among various categories of service or by relocating
17    beds from one physical facility or site to another by more
18    than 20 beds or more than 10% of total bed capacity as
19    defined by the State Board, whichever is less, over a 2
20    year period.
21    A permit shall be valid only for the defined construction
22or modifications, site, amount and person named in the
23application for such permit and shall not be transferable or
24assignable. A permit shall be valid until such time as the
25project has been completed, provided that (a) obligation of the
26project occurs within 12 months following issuance of the



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1permit except for major construction projects such obligation
2must occur within 18 months following issuance of the permit;
3and (b) the project commences and proceeds to completion with
4due diligence by the completion date or extension date approved
5by the Board.
6    A permit holder must do the following: (i) submit the final
7completion and cost report for the project within 90 days after
8the approved project completion date or extension date and (ii)
9submit annual progress reports no earlier than 30 days before
10and no later than 30 days after each anniversary date of the
11Board's approval of the permit until the project is completed.
12To maintain a valid permit and to monitor progress toward
13project commencement and completion, routine post-permit
14reports shall be limited to annual progress reports and the
15final completion and cost report. Annual progress reports shall
16include information regarding the committed funds expended
17toward the approved project. If the project is not completed in
18one year, then, by the second annual report, the permit holder
19shall expend 33% or more of the total project cost or shall
20make a commitment to expend 33% or more of the total project
21cost by signed contracts or other legal means, and the report
22shall contain information regarding those expenditures or
23commitments. If the project is to be completed in one year,
24then the first annual report shall contain the expenditure
25commitment information for the total project cost. The State
26Board may extend the expenditure commitment period after



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1considering a permit holder's showing of good cause and request
2for additional time to complete the project.
3    The Certificate of Need process required under this Act is
4designed to restrain rising health care costs by preventing
5unnecessary construction or modification of health care
6facilities. The Board must assure that the establishment,
7construction, or modification of a health care facility or the
8acquisition of major medical equipment is consistent with the
9public interest and that the proposed project is consistent
10with the orderly and economic development or acquisition of
11those facilities and equipment and is in accord with the
12standards, criteria, or plans of need adopted and approved by
13the Board. Board decisions regarding the construction of health
14care facilities must consider capacity, quality, value, and
15equity. Projects may deviate from the costs, fees, and expenses
16provided in their project cost information for the project's
17cost components, provided that the final total project cost
18does not exceed the approved permit amount. Project alterations
19shall not increase the total approved permit amount by more
20than the limit set forth under the Board's rules.
21    Major construction projects, for the purposes of this Act,
22shall include but are not limited to: projects for the
23construction of new buildings; additions to existing
24facilities; modernization projects whose cost is in excess of
25$1,000,000 or 10% of the facilities' operating revenue,
26whichever is less; and such other projects as the State Board



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1shall define and prescribe pursuant to this Act.
2    The State Board may extend the obligation period upon a
3showing of good cause by the permit holder. Permits for
4projects that have not been obligated within the prescribed
5obligation period shall expire on the last day of that period.
6    The acquisition by any person of major medical equipment
7that will not be owned by or located in a health care facility
8and that will not be used to provide services to inpatients of
9a health care facility shall be exempt from review provided
10that a notice is filed in accordance with exemption
12    Notwithstanding any other provision of this Act, no permit
13or exemption is required for the construction or modification
14of a non-clinical service area of a health care facility.
15(Source: P.A. 96-31, eff. 6-30-09.)
16    (20 ILCS 3960/6)  (from Ch. 111 1/2, par. 1156)
17    (Section scheduled to be repealed on December 31, 2019)
18    Sec. 6. Application for permit or exemption; exemption
20    (a) An application for a permit or exemption shall be made
21to the State Board upon forms provided by the State Board. This
22application shall contain such information as the State Board
23deems necessary. The State Board shall not require an applicant
24to file a Letter of Intent before an application is filed. Such
25application shall include affirmative evidence on which the



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1State Board or Chairman may make its decision on the approval
2or denial of the permit or exemption.
3    (b) The State Board shall establish by regulation the
4procedures and requirements regarding issuance of exemptions.
5An exemption shall be approved when information required by the
6Board by rule is submitted. Projects eligible for an exemption,
7rather than a permit, include, but are not limited to, change
8of ownership of a health care facility. For a change of
9ownership of a health care facility between related persons,
10the State Board shall provide by rule for an expedited process
11for obtaining an exemption. In connection with a change of
12ownership, the State Board may approve the transfer of an
13existing permit without regard to whether the permit to be
14transferred has yet been obligated, except for permits
15establishing a new facility or a new category of service.
16    (c) All applications shall be signed by the applicant and
17shall be verified by any 2 officers thereof.
18    (c-5) Any written review or findings of the Board staff or
19any other reviewing organization under Section 8 concerning an
20application for a permit must be made available to the public
21at least 14 calendar days before the meeting of the State Board
22at which the review or findings are considered. The applicant
23and members of the public may submit, to the State Board,
24written responses regarding the facts set forth in the review
25or findings of the Board staff or reviewing organization.
26Members of the public shall have until 10 days before the



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



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1of need adopted and approved pursuant to the provisions of
2Section 12 of this Act.
3(Source: P.A. 95-237, eff. 1-1-08; 96-31, eff. 6-30-09.)
4    (20 ILCS 3960/6.2 new)
5    Sec. 6.2. Review of permits. Upon receipt of an application
6for a permit to establish, construct, or modify a health care
7facility, the State Board staff shall notify the applicant in
8writing within 10 working days either that the application is
9or is not complete. If the application is complete, the State
10Board staff shall notify the applicant of the beginning of the
11review process. If the application is not complete, the Board
12staff shall explain within the 10-day period why the
13application is incomplete.
14    The State Board staff shall afford a reasonable amount of
15time as established by the State Board, but not to exceed 120
16days, for the review of the application. The 120-day period
17begins on the day the application is found to be substantially
18complete, as that term is defined by the State Board. During
19the 120-day period, the applicant may request an extension. An
20applicant may modify the application at any time before a final
21administrative decision has been made on the application. The
22State Board shall prescribe and provide the forms upon which
23the review and findings of the State Board staff shall be made.
24The State Board staff shall submit its review and findings to
25the State Board for its approval or denial of the permit.



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1    When an application for a permit is initially reviewed by
2State Board staff, as provided in this Section, the State Board
3shall, upon request by the applicant or an interested person,
4afford an opportunity for a public hearing within a reasonable
5amount of time after receipt of the complete application, but
6not to exceed 90 days after receipt of the complete
7application. Notice of the hearing shall be made promptly, not
8less than 10 days before the hearing, by certified mail to the
9applicant and, not less than 10 days before the hearing, by
10publication in a newspaper of general circulation in the area
11or community to be affected. The hearing shall be held in the
12area or community in which the proposed project is to be
13located and shall be for the purpose of allowing the applicant
14and any interested person to present public testimony
15concerning the approval, denial, renewal, or revocation of the
16permit. All interested persons attending the hearing shall be
17given a reasonable opportunity to present their views or
18arguments in writing or orally, and a record of all of the
19testimony shall accompany any findings of the State Board
20staff. Notwithstanding subsection (g) of Section 2.06 of the
21Open Meetings Act, if an interested person has provided
22testimony or comment at a public hearing related to a
23particular application for a permit or certificate before the
24Board, that interested person may not address the State Board
25at a State Board meeting concerning that application. The State
26Board shall adopt reasonable rules and regulations governing



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1the procedure and conduct of the hearings.
2    (20 ILCS 3960/10)  (from Ch. 111 1/2, par. 1160)
3    (Section scheduled to be repealed on December 31, 2019)
4    Sec. 10. Presenting information relevant to the approval of
5a permit or certificate or in opposition to the denial of the
6application; notice of outcome and review proceedings. When a
7motion by the State Board, to approve an application for a
8permit or a certificate of recognition, fails to pass, or when
9a motion to deny an application for a permit or a certificate
10of recognition is passed, the applicant or the holder of the
11permit, as the case may be, and such other parties as the State
12Board permits, will be given an opportunity to appear before
13the State Board and present such information as may be relevant
14to the approval of a permit or certificate or in opposition to
15the denial of the application.
16    Subsequent to an appearance by the applicant before the
17State Board or default of such opportunity to appear, a motion
18by the State Board to approve an application for a permit or a
19certificate of recognition which fails to pass or a motion to
20deny an application for a permit or a certificate of
21recognition which passes shall be considered denial of the
22application for a permit or certificate of recognition, as the
23case may be. Such action of denial or an action by the State
24Board to revoke a permit or a certificate of recognition shall
25be communicated to the applicant or holder of the permit or



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1certificate of recognition. Such person or organization shall
2be afforded an opportunity for a hearing before an
3administrative law judge a hearing officer, who is appointed by
4the Chairman of the State Board Director. A written notice of a
5request for such hearing shall be served upon the Chairman of
6the State Board within 30 days following notification of the
7decision of the State Board. The State Board shall schedule a
8hearing, and the Director shall appoint a hearing officer
9within 30 days thereafter. The administrative law judge hearing
10officer shall take actions necessary to ensure that the hearing
11is completed within a reasonable period of time, but not to
12exceed 120 90 days, except for delays or continuances agreed to
13by the person requesting the hearing. Following its
14consideration of the report of the hearing, or upon default of
15the party to the hearing, the State Board shall make its final
16determination, specifying its findings and conclusions within
1790 45 days of receiving the written report of the hearing. A
18copy of such determination shall be sent by certified mail or
19served personally upon the party.
20    A full and complete record shall be kept of all
21proceedings, including the notice of hearing, complaint, and
22all other documents in the nature of pleadings, written motions
23filed in the proceedings, and the report and orders of the
24State Board or hearing officer. All testimony shall be reported
25but need not be transcribed unless the decision is appealed in
26accordance with the Administrative Review Law, as now or



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1hereafter amended. A copy or copies of the transcript may be
2obtained by any interested party on payment of the cost of
3preparing such copy or copies.
4    The State Board or hearing officer shall upon its own or
5his motion, or on the written request of any party to the
6proceeding who has, in the State Board's or hearing officer's
7opinion, demonstrated the relevancy of such request to the
8outcome of the proceedings, issue subpoenas requiring the
9attendance and the giving of testimony by witnesses, and
10subpoenas duces tecum requiring the production of books,
11papers, records, or memoranda. The fees of witnesses for
12attendance and travel shall be the same as the fees of
13witnesses before the circuit court of this State.
14    When the witness is subpoenaed at the instance of the State
15Board, or its hearing officer, such fees shall be paid in the
16same manner as other expenses of the Agency, and when the
17witness is subpoenaed at the instance of any other party to any
18such proceeding the State Board may, in accordance with the
19rules of the Agency, require that the cost of service of the
20subpoena or subpoena duces tecum and the fee of the witness be
21borne by the party at whose instance the witness is summoned.
22In such case, the State Board in its discretion, may require a
23deposit to cover the cost of such service and witness fees. A
24subpoena or subpoena duces tecum so issued shall be served in
25the same manner as a subpoena issued out of a court.
26    Any circuit court of this State upon the application of the



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1State Board or upon the application of any other party to the
2proceeding, may, in its discretion, compel the attendance of
3witnesses, the production of books, papers, records, or
4memoranda and the giving of testimony before it or its hearing
5officer conducting an investigation or holding a hearing
6authorized by this Act, by an attachment for contempt, or
7otherwise, in the same manner as production of evidence may be
8compelled before the court.
9(Source: P.A. 93-41, eff. 6-27-03.)
10    (20 ILCS 3960/12)  (from Ch. 111 1/2, par. 1162)
11    (Section scheduled to be repealed on December 31, 2019)
12    Sec. 12. Powers and duties of State Board. For purposes of
13this Act, the State Board shall exercise the following powers
14and duties:
15    (1) Prescribe rules, regulations, standards, criteria,
16procedures or reviews which may vary according to the purpose
17for which a particular review is being conducted or the type of
18project reviewed and which are required to carry out the
19provisions and purposes of this Act. Policies and procedures of
20the State Board shall take into consideration the priorities
21and needs of medically underserved areas and other health care
22services identified through the comprehensive health planning
23process, giving special consideration to the impact of projects
24on access to safety net services.
25    (2) Adopt procedures for public notice and hearing on all



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1proposed rules, regulations, standards, criteria, and plans
2required to carry out the provisions of this Act.
3    (3) (Blank).
4    (4) Develop criteria and standards for health care
5facilities planning, conduct statewide inventories of health
6care facilities, maintain an updated inventory on the Board's
7web site reflecting the most recent bed and service changes and
8updated need determinations when new census data become
9available or new need formulae are adopted, and develop health
10care facility plans which shall be utilized in the review of
11applications for permit under this Act. Such health facility
12plans shall be coordinated by the Board with pertinent State
13Plans. Inventories pursuant to this Section of skilled or
14intermediate care facilities licensed under the Nursing Home
15Care Act, skilled or intermediate care facilities licensed
16under the ID/DD Community Care Act, facilities licensed under
17the Specialized Mental Health Rehabilitation Act, or nursing
18homes licensed under the Hospital Licensing Act shall be
19conducted on an annual basis no later than July 1 of each year
20and shall include among the information requested a list of all
21services provided by a facility to its residents and to the
22community at large and differentiate between active and
23inactive beds.
24    In developing health care facility plans, the State Board
25shall consider, but shall not be limited to, the following:
26        (a) The size, composition and growth of the population



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1    of the area to be served;
2        (b) The number of existing and planned facilities
3    offering similar programs;
4        (c) The extent of utilization of existing facilities;
5        (d) The availability of facilities which may serve as
6    alternatives or substitutes;
7        (e) The availability of personnel necessary to the
8    operation of the facility;
9        (f) Multi-institutional planning and the establishment
10    of multi-institutional systems where feasible;
11        (g) The financial and economic feasibility of proposed
12    construction or modification; and
13        (h) In the case of health care facilities established
14    by a religious body or denomination, the needs of the
15    members of such religious body or denomination may be
16    considered to be public need.
17    The health care facility plans which are developed and
18adopted in accordance with this Section shall form the basis
19for the plan of the State to deal most effectively with
20statewide health needs in regard to health care facilities.
21    (5) Coordinate with the Center for Comprehensive Health
22Planning and other state agencies having responsibilities
23affecting health care facilities, including those of licensure
24and cost reporting. Beginning no later than January 1, 2013,
25the Department of Public Health shall produce a written annual
26report to the Governor and the General Assembly regarding the



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1development of the Center for Comprehensive Health Planning.
2The Chairman of the State Board and the State Board
3Administrator shall also receive a copy of the annual report.
4    (6) Solicit, accept, hold and administer on behalf of the
5State any grants or bequests of money, securities or property
6for use by the State Board or Center for Comprehensive Health
7Planning in the administration of this Act; and enter into
8contracts consistent with the appropriations for purposes
9enumerated in this Act.
10    (7) The State Board shall prescribe procedures for review,
11standards, and criteria which shall be utilized to make
12periodic reviews and determinations of the appropriateness of
13any existing health services being rendered by health care
14facilities subject to the Act. The State Board shall consider
15recommendations of the Board in making its determinations.
16    (8) Prescribe, in consultation with the Center for
17Comprehensive Health Planning, rules, regulations, standards,
18and criteria for the conduct of an expeditious review of
19applications for permits for projects of construction or
20modification of a health care facility, which projects are
21classified as emergency, substantive, or non-substantive in
23    Six months after June 30, 2009 (the effective date of
24Public Act 96-31), substantive projects shall include no more
25than the following:
26        (a) Projects to construct (1) a new or replacement



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1    facility located on a new site or (2) a replacement
2    facility located on the same site as the original facility
3    and the cost of the replacement facility exceeds the
4    capital expenditure minimum, which shall be reviewed by the
5    Board within 120 days;
6        (b) Projects proposing a (1) new service within an
7    existing healthcare facility or (2) discontinuation of a
8    service within an existing healthcare facility, which
9    shall be reviewed by the Board within 60 days; or
10        (c) Projects proposing a change in the bed capacity of
11    a health care facility by an increase in the total number
12    of beds or by a redistribution of beds among various
13    categories of service or by a relocation of beds from one
14    physical facility or site to another by more than 20 beds
15    or more than 10% of total bed capacity, as defined by the
16    State Board, whichever is less, over a 2-year period.
17    The Chairman may approve applications for exemption that
18meet the criteria set forth in rules or refer them to the full
19Board. The Chairman may approve any unopposed application that
20meets all of the review criteria or refer them to the full
22    Such rules shall not abridge the right of the Center for
23Comprehensive Health Planning to make recommendations on the
24classification and approval of projects, nor shall such rules
25prevent the conduct of a public hearing upon the timely request
26of an interested party. Such reviews shall not exceed 60 days



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1from the date the application is declared to be complete.
2    (9) Prescribe rules, regulations, standards, and criteria
3pertaining to the granting of permits for construction and
4modifications which are emergent in nature and must be
5undertaken immediately to prevent or correct structural
6deficiencies or hazardous conditions that may harm or injure
7persons using the facility, as defined in the rules and
8regulations of the State Board. This procedure is exempt from
9public hearing requirements of this Act.
10    (10) Prescribe rules, regulations, standards and criteria
11for the conduct of an expeditious review, not exceeding 60
12days, of applications for permits for projects to construct or
13modify health care facilities which are needed for the care and
14treatment of persons who have acquired immunodeficiency
15syndrome (AIDS) or related conditions.
16    (11) Issue written decisions upon request of the applicant
17or an adversely affected party to the Board within 30 days of
18the meeting 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. The staff of the State Board shall
23prepare a written copy of the final decision and the State
24Board shall approve a final copy for inclusion in the formal
25record. The written decision shall identify the applicable
26criteria and factors listed in this Act and the Board's



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1regulations that were taken into consideration by the Board
2when coming to a final decision. If the State Board denies or
3fails to approve an application for permit or certificate, the
4State Board shall include in the final decision a detailed
5explanation as to why the application was denied and identify
6what specific criteria or standards the applicant did not
8    (12) Require at least one of its members to participate in
9any public hearing, after the appointment of a majority of the
109 members to the Board.
11    (13) Provide a mechanism for the public to comment on, and
12request changes to, draft rules and standards.
13    (14) Implement public information campaigns to regularly
14inform the general public about the opportunity for public
15hearings and public hearing procedures.
16    (15) Establish a separate set of rules and guidelines for
17long-term care that recognizes that nursing homes are a
18different business line and service model from other regulated
19facilities. An open and transparent process shall be developed
20that considers the following: how skilled nursing fits in the
21continuum of care with other care providers, modernization of
22nursing homes, establishment of more private rooms,
23development of alternative services, and current trends in
24long-term care services. The Chairman of the Board shall
25appoint a permanent Health Services Review Board Long-term Care
26Facility Advisory Subcommittee that shall develop and



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1recommend to the Board the rules to be established by the Board
2under this paragraph (15). The Subcommittee shall also provide
3continuous review and commentary on policies and procedures
4relative to long-term care and the review of related projects.
5In consultation with other experts from the health field of
6long-term care, the Board and the Subcommittee shall study new
7approaches to the current bed need formula and Health Service
8Area boundaries to encourage flexibility and innovation in
9design models reflective of the changing long-term care
10marketplace and consumer preferences. The Board shall file the
11proposed related administrative rules for the separate rules
12and guidelines for long-term care required by this paragraph
13(15) by no later than September 30, 2011 1, 2010. The
14Subcommittee shall be provided a reasonable and timely
15opportunity to review and comment on any review, revision, or
16updating of the criteria, standards, procedures, and rules used
17to evaluate project applications as provided under Section 12.3
18of this Act prior to approval by the Board and promulgation of
19related rules.
20(Source: P.A. 96-31, eff. 6-30-09; 96-339, eff. 7-1-10;
2196-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12;
22revised 9-7-11.)
23    (20 ILCS 3960/12.5)
24    (Section scheduled to be repealed on December 31, 2019)
25    Sec. 12.5. Update existing bed inventory and associated bed



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1need projections. While the Task Force on Health Planning
2Reform will make long-term recommendations related to the
3method and formula for calculating the bed inventory and
4associated bed need projections, there is a current need for
5the bed inventory to be updated prior to the issuance of the
6recommendations of the Task Force. Therefore, the State Agency
7shall immediately update the existing bed inventory and
8associated bed need projections required by Sections 12 and
912.3 of this Act, using the most recently published historical
10utilization data, 5-year 10-year population projections, and
11an appropriate migration factor for the medical-surgical and
12pediatric category of service which shall be no less than 50%.
13The State Agency shall provide written documentation providing
14the methodology and rationale used to determine the appropriate
15migration factor.
16(Source: P.A. 95-5, eff. 5-31-07.)
17    (20 ILCS 3960/14.1)
18    Sec. 14.1. Denial of permit; other sanctions.
19    (a) The State Board may deny an application for a permit or
20may revoke or take other action as permitted by this Act with
21regard to a permit as the State Board deems appropriate,
22including the imposition of fines as set forth in this Section,
23for any one or a combination of the following:
24        (1) The acquisition of major medical equipment without
25    a permit or in violation of the terms of a permit.



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1        (2) The establishment, construction, or modification
2    of a health care facility without a permit or in violation
3    of the terms of a permit.
4        (3) The violation of any provision of this Act or any
5    rule adopted under this Act.
6        (4) The failure, by any person subject to this Act, to
7    provide information requested by the State Board or Agency
8    within 30 days after a formal written request for the
9    information.
10        (5) The failure to pay any fine imposed under this
11    Section within 30 days of its imposition.
12    (a-5) For facilities licensed under the ID/DD Community
13Care Act, no permit shall be denied on the basis of prior
14operator history, other than for actions specified under item
15(2), (4), or (5) of Section 3-117 of the ID/DD Community Care
16Act. For facilities licensed under the Specialized Mental
17Health Rehabilitation Act, no permit shall be denied on the
18basis of prior operator history, other than for actions
19specified under item (2), (4), or (5) of Section 3-117 of the
20Specialized Mental Health Rehabilitation Act. For facilities
21licensed under the Nursing Home Care Act, no permit shall be
22denied on the basis of prior operator history, other than for:
23(i) actions specified under item (2), (3), (4), (5), or (6) of
24Section 3-117 of the Nursing Home Care Act; (ii) actions
25specified under item (a)(6) of Section 3-119 of the Nursing
26Home Care Act; or (iii) actions within the preceding 5 years



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1constituting a substantial and repeated failure to comply with
2the Nursing Home Care Act or the rules and regulations adopted
3by the Department under that Act. The State Board shall not
4deny a permit on account of any action described in this
5subsection (a-5) without also considering all such actions in
6the light of all relevant information available to the State
7Board, including whether the permit is sought to substantially
8comply with a mandatory or voluntary plan of correction
9associated with any action described in this subsection (a-5).
10    (b) Persons shall be subject to fines as follows:
11        (1) A permit holder who fails to comply with the
12    requirements of maintaining a valid permit shall be fined
13    an amount not to exceed 1% of the approved permit amount
14    plus an additional 1% of the approved permit amount for
15    each 30-day period, or fraction thereof, that the violation
16    continues.
17        (2) A permit holder who alters the scope of an approved
18    project or whose project costs exceed the allowable permit
19    amount without first obtaining approval from the State
20    Board shall be fined an amount not to exceed the sum of (i)
21    the lesser of $25,000 or 2% of the approved permit amount
22    and (ii) in those cases where the approved permit amount is
23    exceeded by more than $1,000,000, an additional $20,000 for
24    each $1,000,000, or fraction thereof, in excess of the
25    approved permit amount.
26        (2.5) A permit holder who fails to comply with the



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



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1    the violation continues.
2        (5) A person who discontinues a health care facility or
3    a category of service without first obtaining a permit
4    shall be fined an amount not to exceed $10,000 plus an
5    additional $10,000 for each 30-day period, or fraction
6    thereof, that the violation continues. For purposes of this
7    subparagraph (5), facilities licensed under the Nursing
8    Home Care Act or the ID/DD Community Care Act, with the
9    exceptions of facilities operated by a county or Illinois
10    Veterans Homes, are exempt from this permit requirement.
11    However, facilities licensed under the Nursing Home Care
12    Act or the ID/DD Community Care Act must comply with
13    Section 3-423 of the Nursing Home Care Act or Section 3-423
14    of the ID/DD Community Care Act and must provide the Board
15    with 30-days' written notice of its intent to close.
16        (6) A person subject to this Act who fails to provide
17    information requested by the State Board or Agency within
18    30 days of a formal written request shall be fined an
19    amount not to exceed $1,000 plus an additional $1,000 for
20    each 30-day period, or fraction thereof, that the
21    information is not received by the State Board or Agency.
22    (c) Before imposing any fine authorized under this Section,
23the State Board shall afford the person or permit holder, as
24the case may be, an appearance before the State Board and an
25opportunity for a hearing before a hearing officer appointed by
26the State Board. The hearing shall be conducted in accordance



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1with Section 10.
2    (d) All fines collected under this Act shall be transmitted
3to the State Treasurer, who shall deposit them into the
4Illinois Health Facilities Planning Fund.
5(Source: P.A. 96-339, eff. 7-1-10; 96-1372, eff. 7-29-10;
697-38, eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-7-11.)
7    Section 99. Effective date. This Act takes effect upon
8becoming law.



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2 Statutes amended in order of appearance
3    20 ILCS 3960/4from Ch. 111 1/2, par. 1154
4    20 ILCS 3960/5from Ch. 111 1/2, par. 1155
5    20 ILCS 3960/6from Ch. 111 1/2, par. 1156
6    20 ILCS 3960/6.2 new
7    20 ILCS 3960/10from Ch. 111 1/2, par. 1160
8    20 ILCS 3960/12from Ch. 111 1/2, par. 1162
9    20 ILCS 3960/12.5
10    20 ILCS 3960/14.1