Full Text of HB3504 99th General Assembly
HB3504 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3504 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED: |
| 20 ILCS 3960/6 | from Ch. 111 1/2, par. 1156 | 20 ILCS 3960/8.5 | |
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Amends the Illinois Health Facilities Planning Act. Makes changes concerning: (i) the permit and exemption process for changes of ownership among related persons; (ii) an application to close a health care facility; and (iii) an application to discontinue a category of service. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Health Facilities Planning Act is | 5 | | amended by changing Sections 6 and 8.5 as follows:
| 6 | | (20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
| 7 | | (Section scheduled to be repealed on December 31, 2019)
| 8 | | Sec. 6. Application for permit or exemption; exemption | 9 | | regulations.
| 10 | | (a) An application for a permit or exemption shall be made | 11 | | to
the State Board upon forms provided by the State Board. This | 12 | | application
shall contain such information
as the State Board | 13 | | deems necessary. The State Board shall not require an applicant | 14 | | to file a Letter of Intent before an application is filed. Such
| 15 | | application shall include affirmative evidence on which the | 16 | | State
Board or Chairman may make its decision on the approval | 17 | | or denial of the permit or
exemption.
| 18 | | (b) The State Board shall establish by regulation the | 19 | | procedures and
requirements
regarding issuance of exemptions.
| 20 | | An exemption shall be approved when information required by the | 21 | | Board by rule
is submitted. Projects
eligible for an exemption, | 22 | | rather than a permit, include, but are not limited
to,
change | 23 | | of ownership of a health care facility and discontinuation of a |
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| 1 | | health care facility or category of service . For a change of
| 2 | | ownership of a health care
facility between related persons , | 3 | | the State Board shall provide by rule for an
expedited
process | 4 | | for obtaining an exemption in accordance with Section 8.5 of | 5 | | this Act . In connection with a change of ownership, the State | 6 | | Board may approve the transfer of an existing permit without | 7 | | regard to whether the permit to be transferred has yet been | 8 | | obligated, except for permits establishing a new facility or a | 9 | | new category of service.
| 10 | | (c) All applications shall be signed by the applicant and | 11 | | shall be
verified by any 2 officers thereof.
| 12 | | (c-5) Any written review or findings of the Board staff or | 13 | | any other reviewing organization under Section 8 concerning an | 14 | | application for a permit must be made available to the public | 15 | | at least 14 calendar days before the meeting of the State Board | 16 | | at which the review or findings are considered. The applicant | 17 | | and members of the public may submit, to the State Board, | 18 | | written responses regarding the facts set forth in the review | 19 | | or findings of the Board staff or reviewing organization. | 20 | | Members of the public shall have until 10 days before the | 21 | | meeting of the State Board to submit any written response | 22 | | concerning the Board staff's written review or findings. The | 23 | | Board staff may revise any findings to address corrections of | 24 | | factual errors cited in the public response. At the meeting, | 25 | | the State Board may, in its discretion, permit the submission | 26 | | of other additional written materials.
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| 1 | | (d) Upon receipt of an application for a permit, the State | 2 | | Board shall
approve and authorize the issuance of a permit if | 3 | | it finds (1) that the
applicant is fit, willing, and able to | 4 | | provide a proper standard of
health care service for the | 5 | | community with particular regard to the
qualification, | 6 | | background and character of the applicant, (2) that
economic | 7 | | feasibility is demonstrated in terms of effect on the existing
| 8 | | and projected operating budget of the applicant and of the | 9 | | health care
facility; in terms of the applicant's ability to | 10 | | establish and operate
such facility in accordance with | 11 | | licensure regulations promulgated under
pertinent state laws; | 12 | | and in terms of the projected impact on the total
health care | 13 | | expenditures in the facility and community, (3) that
safeguards | 14 | | are provided which assure that the establishment,
construction | 15 | | or modification of the health care facility or acquisition
of | 16 | | major medical equipment is consistent
with the public interest, | 17 | | and (4) that the proposed project is consistent
with the | 18 | | orderly and economic
development of such facilities and | 19 | | equipment and is in accord with standards,
criteria, or plans | 20 | | of need adopted and approved pursuant to the
provisions of | 21 | | Section 12 of this Act.
| 22 | | (Source: P.A. 96-31, eff. 6-30-09; 97-1115, eff. 8-27-12.)
| 23 | | (20 ILCS 3960/8.5) | 24 | | (Section scheduled to be repealed on December 31, 2019) | 25 | | Sec. 8.5. Certificate of exemption for change of ownership |
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| 1 | | of a health care facility; discontinuation of a health care | 2 | | facility or category of service; public notice and public | 3 | | hearing. | 4 | | (a) Upon a finding that an application for a change of | 5 | | ownership is complete, the State Board shall publish a legal | 6 | | notice on 3 consecutive days in a newspaper of general | 7 | | circulation in the area or community to be affected and afford | 8 | | the public an opportunity to request a hearing. If the | 9 | | application is for a facility located in a Metropolitan | 10 | | Statistical Area, an additional legal notice shall be published | 11 | | in a newspaper of limited circulation, if one exists, in the | 12 | | area in which the facility is located. If the newspaper of | 13 | | limited circulation is published on a daily basis, the | 14 | | additional legal notice shall be published on 3 consecutive | 15 | | days. The legal notice shall also be posted on the Health | 16 | | Facilities and Services Review Board's web site and sent to the | 17 | | State Representative and State Senator of the district in which | 18 | | the health care facility is located. An application for change | 19 | | of ownership of a hospital shall not be deemed complete without | 20 | | a signed certification that for a period of 2 years after the | 21 | | change of ownership transaction is effective, the hospital will | 22 | | not adopt a charity care policy that is
more restrictive than | 23 | | the policy in effect during the year prior to the transaction. | 24 | | An application for a change of ownership shall be acceptable if | 25 | | it is based on a Letter of Intent to complete the transaction. | 26 | | For a change of ownership, the Board may, by rule, require |
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| 1 | | submission of transaction documents to verify pertinent | 2 | | information relative to the change of ownership, including, but | 3 | | not limited to: information for the existing facility; | 4 | | outstanding permits; the name of the applicant; the name of the | 5 | | legal entity that will be the licensee or operating entity; the | 6 | | building or site owner; transaction type; application fee; | 7 | | funding type and source; anticipated acquisition price; fair | 8 | | market value of the facility; date of the proposed transaction; | 9 | | narrative description; background of applicant; financial | 10 | | statements; contact person; and certification. For purposes of | 11 | | this Section, "transaction documents" include a Letter of | 12 | | Intent to enter into the proposed change of ownership. If a | 13 | | Letter of Intent is proffered, then the issuance of the | 14 | | certificate of exemption shall be contingent upon the applicant | 15 | | submitting a statement to the Board within 90 days after the | 16 | | closing date of the transaction, or such longer period as | 17 | | provided by the Board, certifying that the change of ownership | 18 | | to the proposed buyer has, in fact, been completed. | 19 | | Where a change of ownership is among related persons, and | 20 | | there are no other changes being proposed at the health care | 21 | | facility that would otherwise require a permit or exemption | 22 | | under this Act, the applicant shall submit an application | 23 | | consisting of a standard notice in a form set forth by the | 24 | | Board briefly explaining the reasons for the proposed change of | 25 | | ownership. Once such an application is submitted to the Board | 26 | | and reviewed by the Board staff, the Board Chair shall sign an |
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| 1 | | exemption letter within 15 business days of receipt of the | 2 | | application if the proposed change of ownership is consistent | 3 | | with the requirements of this Section. If the Board Chair has a | 4 | | conflict of interest, the Chair may request review by the | 5 | | Board. Notwithstanding any other provision of this Act, for | 6 | | purposes of this Section, a change of ownership among related | 7 | | persons means a transaction where the parties to the | 8 | | transaction are under common control or ownership before and | 9 | | after the transaction is completed. | 10 | | Nothing in this Act shall be construed as authorizing the | 11 | | Board to impose any conditions, obligations, or limitations, | 12 | | other than those required by this Section, with respect to the | 13 | | issuance of an exemption for a change of ownership, including, | 14 | | but not limited to, the time period before which a subsequent | 15 | | change of ownership of the health care facility could be | 16 | | sought, or the commitment to continue to offer for a specified | 17 | | time period any services currently offered by the health care | 18 | | facility. | 19 | | (a-3) Upon a finding that an application to close a health | 20 | | care facility is complete, the State Board shall publish a | 21 | | legal notice on 3 consecutive days in a newspaper of general | 22 | | circulation in the area or community to be affected and afford | 23 | | the public an opportunity to request a hearing. If the | 24 | | application is for a facility located in a Metropolitan | 25 | | Statistical Area, an additional legal notice shall be published | 26 | | in a newspaper of limited circulation, if one exists, in the |
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| 1 | | area in which the facility is located. If the newspaper of | 2 | | limited circulation is published on a daily basis, the | 3 | | additional legal notice shall be published on 3 consecutive | 4 | | days. The legal notice shall also be posted on the Health | 5 | | Facilities and Services Review Board's web site and sent to the | 6 | | State Representative and State Senator of the district in which | 7 | | the health care facility is located. | 8 | | (a-5) Upon a finding that an application to discontinue a | 9 | | category of service is complete and provides the requested | 10 | | information, as specified by the State Board, an exemption | 11 | | shall be issued. No later than 30 days after the issuance of | 12 | | the exemption, the health care facility must give written | 13 | | notice of the discontinuation of the category of service to the | 14 | | State Senator and State Representative serving the legislative | 15 | | district in which the health care facility is located. | 16 | | For the purposes of this subsection, "newspaper of limited | 17 | | circulation" means a newspaper intended to serve a particular | 18 | | or defined population of a specific geographic area within a | 19 | | Metropolitan Statistical Area such as a municipality, town, | 20 | | village, township, or community area, but does not include | 21 | | publications of professional and trade associations.
| 22 | | (b) If a public hearing is requested, it shall be held at | 23 | | least 15 days but no more than 30 days after the date of | 24 | | publication of the legal notice in the community in which the | 25 | | facility is located. The hearing shall be held in a place of | 26 | | reasonable size and accessibility and a full and complete |
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| 1 | | written transcript of the proceedings shall be made. The | 2 | | applicant shall provide a summary of the proposal proposed | 3 | | change of ownership for distribution at the public hearing.
| 4 | | (c) For the purposes of this Section "newspaper of limited | 5 | | circulation" means a newspaper intended to serve a particular | 6 | | or defined population of a specific geographic area within a | 7 | | Metropolitan Statistical Area such as a municipality, town, | 8 | | village, township, or community area, but does not include | 9 | | publications of professional and trade associations. | 10 | | (Source: P.A. 98-1086, eff. 8-26-14.)
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.
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