Illinois General Assembly - Full Text of HB4518
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Full Text of HB4518  99th General Assembly


Rep. William Davis

Filed: 3/25/2016





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2    AMENDMENT NO. ______. Amend House Bill 4518 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Health Facilities Planning Act is
5amended by changing Sections 3, 4, 8.5, 10, and 14.1 as
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8    (Section scheduled to be repealed on December 31, 2019)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



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1    Act.
2        (3) Skilled and intermediate long term care facilities
3    licensed under the Nursing Home Care Act.
4            (A) If a demonstration project under the Nursing
5        Home Care Act applies for a certificate of need to
6        convert to a nursing facility, it shall meet the
7        licensure and certificate of need requirements in
8        effect as of the date of application.
9            (B) Except as provided in item (A) of this
10        subsection, this Act does not apply to facilities
11        granted waivers under Section 3-102.2 of the Nursing
12        Home Care Act.
13        (3.5) Skilled and intermediate care facilities
14    licensed under the ID/DD Community Care Act or the MC/DD
15    Act. No permit or exemption is required for a facility
16    licensed under the ID/DD Community Care Act or the MC/DD
17    Act prior to the reduction of the number of beds at a
18    facility. If there is a total reduction of beds at a
19    facility licensed under the ID/DD Community Care Act or the
20    MC/DD Act, this is a discontinuation or closure of the
21    facility. If a facility licensed under the ID/DD Community
22    Care Act or the MC/DD Act reduces the number of beds or
23    discontinues the facility, that facility must notify the
24    Board as provided in Section 14.1 of this Act.
25        (3.7) Facilities licensed under the Specialized Mental
26    Health Rehabilitation Act of 2013.



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1        (4) Hospitals, nursing homes, ambulatory surgical
2    treatment centers, or kidney disease treatment centers
3    maintained by the State or any department or agency
4    thereof.
5        (5) Kidney disease treatment centers, including a
6    free-standing hemodialysis unit required to be licensed
7    under the End Stage Renal Disease Facility Act.
8            (A) This Act does not apply to a dialysis facility
9        that provides only dialysis training, support, and
10        related services to individuals with end stage renal
11        disease who have elected to receive home dialysis.
12            (B) This Act does not apply to a dialysis unit
13        located in a licensed nursing home that offers or
14        provides dialysis-related services to residents with
15        end stage renal disease who have elected to receive
16        home dialysis within the nursing home.
17            (C) The Board, however, may require dialysis
18        facilities and licensed nursing homes under items (A)
19        and (B) of this subsection to report statistical
20        information on a quarterly basis to the Board to be
21        used by the Board to conduct analyses on the need for
22        proposed kidney disease treatment centers.
23        (6) An institution, place, building, or room used for
24    the performance of outpatient surgical procedures that is
25    leased, owned, or operated by or on behalf of an
26    out-of-state facility.



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1        (7) An institution, place, building, or room used for
2    provision of a health care category of service, including,
3    but not limited to, cardiac catheterization and open heart
4    surgery.
5        (8) An institution, place, building, or room housing
6    major medical equipment used in the direct clinical
7    diagnosis or treatment of patients, and whose project cost
8    is in excess of the capital expenditure minimum.
9    "Health care facilities" does not include the following
10entities or facility transactions:
11        (1) Federally-owned facilities.
12        (2) Facilities used solely for healing by prayer or
13    spiritual means.
14        (3) An existing facility located on any campus facility
15    as defined in Section 5-5.8b of the Illinois Public Aid
16    Code, provided that the campus facility encompasses 30 or
17    more contiguous acres and that the new or renovated
18    facility is intended for use by a licensed residential
19    facility.
20        (4) Facilities licensed under the Supportive
21    Residences Licensing Act or the Assisted Living and Shared
22    Housing Act.
23        (5) Facilities designated as supportive living
24    facilities that are in good standing with the program
25    established under Section 5-5.01a of the Illinois Public
26    Aid Code.



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1        (6) Facilities established and operating under the
2    Alternative Health Care Delivery Act as a children's
3    community-based health care center alternative health care
4    model demonstration program or as an Alzheimer's Disease
5    Management Center alternative health care model
6    demonstration program.
7        (7) The closure of an entity or a portion of an entity
8    licensed under the Nursing Home Care Act, the Specialized
9    Mental Health Rehabilitation Act of 2013, the ID/DD
10    Community Care Act, or the MC/DD Act, with the exception of
11    facilities operated by a county or Illinois Veterans Homes,
12    that elect to convert, in whole or in part, to an assisted
13    living or shared housing establishment licensed under the
14    Assisted Living and Shared Housing Act and with the
15    exception of a facility licensed under the Specialized
16    Mental Health Rehabilitation Act of 2013 in connection with
17    a proposal to close a facility and re-establish the
18    facility in another location.
19        (8) Any change of ownership of a health care facility
20    that is licensed under the Nursing Home Care Act, the
21    Specialized Mental Health Rehabilitation Act of 2013, the
22    ID/DD Community Care Act, or the MC/DD Act, with the
23    exception of facilities operated by a county or Illinois
24    Veterans Homes. Changes of ownership of facilities
25    licensed under the Nursing Home Care Act must meet the
26    requirements set forth in Sections 3-101 through 3-119 of



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1    the Nursing Home Care Act.
2    With the exception of those health care facilities
3specifically included in this Section, nothing in this Act
4shall be intended to include facilities operated as a part of
5the practice of a physician or other licensed health care
6professional, whether practicing in his individual capacity or
7within the legal structure of any partnership, medical or
8professional corporation, or unincorporated medical or
9professional group. Further, this Act shall not apply to
10physicians or other licensed health care professional's
11practices where such practices are carried out in a portion of
12a health care facility under contract with such health care
13facility by a physician or by other licensed health care
14professionals, whether practicing in his individual capacity
15or within the legal structure of any partnership, medical or
16professional corporation, or unincorporated medical or
17professional groups, unless the entity constructs, modifies,
18or establishes a health care facility as specifically defined
19in this Section. This Act shall apply to construction or
20modification and to establishment by such health care facility
21of such contracted portion which is subject to facility
22licensing requirements, irrespective of the party responsible
23for such action or attendant financial obligation.
24    "Person" means any one or more natural persons, legal
25entities, governmental bodies other than federal, or any
26combination thereof.



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1    "Consumer" means any person other than a person (a) whose
2major occupation currently involves or whose official capacity
3within the last 12 months has involved the providing,
4administering or financing of any type of health care facility,
5(b) who is engaged in health research or the teaching of
6health, (c) who has a material financial interest in any
7activity which involves the providing, administering or
8financing of any type of health care facility, or (d) who is or
9ever has been a member of the immediate family of the person
10defined by (a), (b), or (c).
11    "State Board" or "Board" means the Health Facilities and
12Services Review Board.
13    "Construction or modification" means the establishment,
14erection, building, alteration, reconstruction, modernization,
15improvement, extension, discontinuation, change of ownership,
16of or by a health care facility, or the purchase or acquisition
17by or through a health care facility of equipment or service
18for diagnostic or therapeutic purposes or for facility
19administration or operation, or any capital expenditure made by
20or on behalf of a health care facility which exceeds the
21capital expenditure minimum; however, any capital expenditure
22made by or on behalf of a health care facility for (i) the
23construction or modification of a facility licensed under the
24Assisted Living and Shared Housing Act or (ii) a conversion
25project undertaken in accordance with Section 30 of the Older
26Adult Services Act shall be excluded from any obligations under



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1this Act.
2    "Establish" means the construction of a health care
3facility or the replacement of an existing facility on another
4site or the initiation of a category of service.
5    "Major medical equipment" means medical equipment which is
6used for the provision of medical and other health services and
7which costs in excess of the capital expenditure minimum,
8except that such term does not include medical equipment
9acquired by or on behalf of a clinical laboratory to provide
10clinical laboratory services if the clinical laboratory is
11independent of a physician's office and a hospital and it has
12been determined under Title XVIII of the Social Security Act to
13meet the requirements of paragraphs (10) and (11) of Section
141861(s) of such Act. In determining whether medical equipment
15has a value in excess of the capital expenditure minimum, the
16value of studies, surveys, designs, plans, working drawings,
17specifications, and other activities essential to the
18acquisition of such equipment shall be included.
19    "Capital Expenditure" means an expenditure: (A) made by or
20on behalf of a health care facility (as such a facility is
21defined in this Act); and (B) which under generally accepted
22accounting principles is not properly chargeable as an expense
23of operation and maintenance, or is made to obtain by lease or
24comparable arrangement any facility or part thereof or any
25equipment for a facility or part; and which exceeds the capital
26expenditure minimum.



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1    For the purpose of this paragraph, the cost of any studies,
2surveys, designs, plans, working drawings, specifications, and
3other activities essential to the acquisition, improvement,
4expansion, or replacement of any plant or equipment with
5respect to which an expenditure is made shall be included in
6determining if such expenditure exceeds the capital
7expenditures minimum. Unless otherwise interdependent, or
8submitted as one project by the applicant, components of
9construction or modification undertaken by means of a single
10construction contract or financed through the issuance of a
11single debt instrument shall not be grouped together as one
12project. Donations of equipment or facilities to a health care
13facility which if acquired directly by such facility would be
14subject to review under this Act shall be considered capital
15expenditures, and a transfer of equipment or facilities for
16less than fair market value shall be considered a capital
17expenditure for purposes of this Act if a transfer of the
18equipment or facilities at fair market value would be subject
19to review.
20    "Capital expenditure minimum" means $11,500,000 for
21projects by hospital applicants, $6,500,000 for applicants for
22projects related to skilled and intermediate care long-term
23care facilities licensed under the Nursing Home Care Act, and
24$3,000,000 for projects by all other applicants, which shall be
25annually adjusted to reflect the increase in construction costs
26due to inflation, for major medical equipment and for all other



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1capital expenditures.
2    "Non-clinical service area" means an area (i) for the
3benefit of the patients, visitors, staff, or employees of a
4health care facility and (ii) not directly related to the
5diagnosis, treatment, or rehabilitation of persons receiving
6services from the health care facility. "Non-clinical service
7areas" include, but are not limited to, chapels; gift shops;
8news stands; computer systems; tunnels, walkways, and
9elevators; telephone systems; projects to comply with life
10safety codes; educational facilities; student housing;
11patient, employee, staff, and visitor dining areas;
12administration and volunteer offices; modernization of
13structural components (such as roof replacement and masonry
14work); boiler repair or replacement; vehicle maintenance and
15storage facilities; parking facilities; mechanical systems for
16heating, ventilation, and air conditioning; loading docks; and
17repair or replacement of carpeting, tile, wall coverings,
18window coverings or treatments, or furniture. Solely for the
19purpose of this definition, "non-clinical service area" does
20not include health and fitness centers.
21    "Areawide" means a major area of the State delineated on a
22geographic, demographic, and functional basis for health
23planning and for health service and having within it one or
24more local areas for health planning and health service. The
25term "region", as contrasted with the term "subregion", and the
26word "area" may be used synonymously with the term "areawide".



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1    "Local" means a subarea of a delineated major area that on
2a geographic, demographic, and functional basis may be
3considered to be part of such major area. The term "subregion"
4may be used synonymously with the term "local".
5    "Physician" means a person licensed to practice in
6accordance with the Medical Practice Act of 1987, as amended.
7    "Licensed health care professional" means a person
8licensed to practice a health profession under pertinent
9licensing statutes of the State of Illinois.
10    "Director" means the Director of the Illinois Department of
11Public Health.
12    "Agency" or "Department" means the Illinois Department of
13Public Health.
14    "Alternative health care model" means a facility or program
15authorized under the Alternative Health Care Delivery Act.
16    "Out-of-state facility" means a person that is both (i)
17licensed as a hospital or as an ambulatory surgery center under
18the laws of another state or that qualifies as a hospital or an
19ambulatory surgery center under regulations adopted pursuant
20to the Social Security Act and (ii) not licensed under the
21Ambulatory Surgical Treatment Center Act, the Hospital
22Licensing Act, or the Nursing Home Care Act. Affiliates of
23out-of-state facilities shall be considered out-of-state
24facilities. Affiliates of Illinois licensed health care
25facilities 100% owned by an Illinois licensed health care
26facility, its parent, or Illinois physicians licensed to



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1practice medicine in all its branches shall not be considered
2out-of-state facilities. Nothing in this definition shall be
3construed to include an office or any part of an office of a
4physician licensed to practice medicine in all its branches in
5Illinois that is not required to be licensed under the
6Ambulatory Surgical Treatment Center Act.
7    "Change of ownership of a health care facility" means a
8change in the person who has ownership or control of a health
9care facility's physical plant and capital assets. A change in
10ownership is indicated by the following transactions: sale,
11transfer, acquisition, lease, change of sponsorship, or other
12means of transferring control.
13    "Related person" means any person that: (i) is at least 50%
14owned, directly or indirectly, by either the health care
15facility or a person owning, directly or indirectly, at least
1650% of the health care facility; or (ii) owns, directly or
17indirectly, at least 50% of the health care facility.
18    "Charity care" means care provided by a health care
19facility for which the provider does not expect to receive
20payment from the patient or a third-party payer.
21    "Freestanding emergency center" means a facility subject
22to licensure under Section 32.5 of the Emergency Medical
23Services (EMS) Systems Act.
24    "Category of service" means a grouping by generic class of
25various types or levels of support functions, equipment, care,
26or treatment provided to patients or residents, including, but



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1not limited to, classes such as medical-surgical, pediatrics,
2or cardiac catheterization. A category of service may include
3subcategories or levels of care that identify a particular
4degree or type of care within the category of service. Nothing
5in this definition shall be construed to include the practice
6of a physician or other licensed health care professional while
7functioning in an office providing for the care, diagnosis, or
8treatment of patients. A category of service that is subject to
9the Board's jurisdiction must be designated in rules adopted by
10the Board.
11    "State Board Staff Report" means the document that sets
12forth the review and findings of the State Board staff, as
13prescribed by the State Board, regarding applications subject
14to Board jurisdiction.
15(Source: P.A. 98-414, eff. 1-1-14; 98-629, eff. 1-1-15; 98-651,
16eff. 6-16-14; 98-1086, eff. 8-26-14; 99-78, eff. 7-20-15;
1799-180, eff. 7-29-15.)
18    (20 ILCS 3960/4)  (from Ch. 111 1/2, par. 1154)
19    (Section scheduled to be repealed on December 31, 2019)
20    Sec. 4. Health Facilities and Services Review Board;
21membership; appointment; term; compensation; quorum.
22Notwithstanding any other provision in this Section, members of
23the State Board holding office on the day before the effective
24date of this amendatory Act of the 96th General Assembly shall
25retain their authority.



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1    (a) There is created the Health Facilities and Services
2Review Board, which shall perform the functions described in
3this Act. The Department shall provide operational support to
4the Board as necessary, including the provision of office
5space, supplies, and clerical, financial, and accounting
6services. The Board may contract for functions or operational
7support as needed. The Board may also contract with experts
8related to specific health services or facilities and create
9technical advisory panels to assist in the development of
10criteria, standards, and procedures used in the evaluation of
11applications for permit and exemption.
12    (b) Beginning March 1, 2010, the State Board shall consist
13of 9 voting members. All members shall be residents of Illinois
14and at least 4 shall reside outside the Chicago Metropolitan
15Statistical Area. Consideration shall be given to potential
16appointees who reflect the ethnic and cultural diversity of the
17State. Neither Board members nor Board staff shall be convicted
18felons or have pled guilty to a felony.
19    Each member shall have a reasonable knowledge of the
20practice, procedures and principles of the health care delivery
21system in Illinois, including at least 5 members who shall be
22knowledgeable about health care delivery systems, health
23systems planning, finance, or the management of health care
24facilities currently regulated under the Act. One member shall
25be a representative of a non-profit health care consumer
26advocacy organization. A spouse, parent, sibling, or child of a



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1Board member cannot be an employee, agent, or under contract
2with services or facilities subject to the Act. Prior to
3appointment and in the course of service on the Board, members
4of the Board shall disclose the employment or other financial
5interest of any other relative of the member, if known, in
6service or facilities subject to the Act. Members of the Board
7shall declare any conflict of interest that may exist with
8respect to the status of those relatives and recuse themselves
9from voting on any issue for which a conflict of interest is
10declared. No person shall be appointed or continue to serve as
11a member of the State Board who is, or whose spouse, parent,
12sibling, or child is, a member of the Board of Directors of,
13has a financial interest in, or has a business relationship
14with a health care facility.
15    Notwithstanding any provision of this Section to the
16contrary, the term of office of each member of the State Board
17serving on the day before the effective date of this amendatory
18Act of the 96th General Assembly is abolished on the date upon
19which members of the 9-member Board, as established by this
20amendatory Act of the 96th General Assembly, have been
21appointed and can begin to take action as a Board. Members of
22the State Board serving on the day before the effective date of
23this amendatory Act of the 96th General Assembly may be
24reappointed to the 9-member Board. Prior to March 1, 2010, the
25Health Facilities Planning Board shall establish a plan to
26transition its powers and duties to the Health Facilities and



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1Services Review Board.
2    (c) The State Board shall be appointed by the Governor,
3with the advice and consent of the Senate. Not more than 5 of
4the appointments shall be of the same political party at the
5time of the appointment.
6    The Secretary of Human Services, the Director of Healthcare
7and Family Services, and the Director of Public Health, or
8their designated representatives, shall serve as ex-officio,
9non-voting members of the State Board.
10    (d) Of those 9 members initially appointed by the Governor
11following the effective date of this amendatory Act of the 96th
12General Assembly, 3 shall serve for terms expiring July 1,
132011, 3 shall serve for terms expiring July 1, 2012, and 3
14shall serve for terms expiring July 1, 2013. Thereafter, each
15appointed member shall hold office for a term of 3 years,
16provided that any member appointed to fill a vacancy occurring
17prior to the expiration of the term for which his or her
18predecessor was appointed shall be appointed for the remainder
19of such term and the term of office of each successor shall
20commence on July 1 of the year in which his predecessor's term
21expires. Each member appointed after the effective date of this
22amendatory Act of the 96th General Assembly shall hold office
23until his or her successor is appointed and qualified. The
24Governor may reappoint a member for additional terms, but no
25member shall serve more than 3 terms, subject to review and
26re-approval every 3 years.



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1    (e) State Board members, while serving on business of the
2State Board, shall receive actual and necessary travel and
3subsistence expenses while so serving away from their places of
4residence. Until March 1, 2010, a member of the State Board who
5experiences a significant financial hardship due to the loss of
6income on days of attendance at meetings or while otherwise
7engaged in the business of the State Board may be paid a
8hardship allowance, as determined by and subject to the
9approval of the Governor's Travel Control Board.
10    (f) The Governor shall designate one of the members to
11serve as the Chairman of the Board, who shall be a person with
12expertise in health care delivery system planning, finance or
13management of health care facilities that are regulated under
14the Act. The Chairman shall annually review Board member
15performance and shall report the attendance record of each
16Board member to the General Assembly.
17    (g) The State Board, through the Chairman, shall prepare a
18separate and distinct budget approved by the General Assembly
19and shall hire and supervise its own professional staff
20responsible for carrying out the responsibilities of the Board.
21    (h) The State Board shall meet at least every 45 days, or
22as often as the Chairman of the State Board deems necessary, or
23upon the request of a majority of the members.
24    (i) Five members of the State Board shall constitute a
25quorum. The affirmative vote of 5 of the members of the State
26Board shall be necessary for any action requiring a vote to be



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1taken by the State Board. A vacancy in the membership of the
2State Board shall not impair the right of a quorum to exercise
3all the rights and perform all the duties of the State Board as
4provided by this Act.
5    (j) A State Board member shall disqualify himself or
6herself from the consideration of any application for a permit
7or exemption in which the State Board member or the State Board
8member's spouse, parent, sibling, or child: (i) has an economic
9interest in the matter; or (ii) is employed by, serves as a
10consultant for, or is a member of the governing board of the
11applicant or a party opposing the application.
12    (k) The Chairman, Board members, and Board staff must
13comply with the Illinois Governmental Ethics Act.
14(Source: P.A. 96-31, eff. 6-30-09; 97-1115, eff. 8-27-12.)
15    (20 ILCS 3960/8.5)
16    (Section scheduled to be repealed on December 31, 2019)
17    Sec. 8.5. Certificate of exemption for change of ownership
18of a health care facility; discontinuation of a health care
19facility or category of service; public notice and public
21    (a) Upon a finding that an application for a change of
22ownership is complete, the State Board shall publish a legal
23notice on one day in a newspaper of general circulation in the
24area or community to be affected and afford the public an
25opportunity to request a hearing. If the application is for a



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1facility located in a Metropolitan Statistical Area, an
2additional legal notice shall be published in a newspaper of
3limited circulation, if one exists, in the area in which the
4facility is located. If the newspaper of limited circulation is
5published on a daily basis, the additional legal notice shall
6be published on one day. The applicant shall pay the cost
7incurred by the Board in publishing the change of ownership
8notice in newspapers as required under this subsection. The
9legal notice shall also be posted on the Health Facilities and
10Services Review Board's web site and sent to the State
11Representative and State Senator of the district in which the
12health care facility is located. An application for change of
13ownership of a hospital shall not be deemed complete without a
14signed certification that for a period of 2 years after the
15change of ownership transaction is effective, the hospital will
16not adopt a charity care policy that is more restrictive than
17the policy in effect during the year prior to the transaction.
18An application for a change of ownership need not contain
19signed transaction documents so long as it includes the
20following key terms of the transaction: names and background of
21the parties; structure of the transaction; the person who will
22be the licensed or certified entity after the transaction; the
23ownership or membership interests in such licensed or certified
24entity both prior to and after the transaction; fair market
25value of assets to be transferred; and the purchase price or
26other form of consideration to be provided for those assets.



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1The issuance of the certificate of exemption shall be
2contingent upon the applicant submitting a statement to the
3Board within 90 days after the closing date of the transaction,
4or such longer period as provided by the Board, certifying that
5the change of ownership has been completed in accordance with
6the key terms contained in the application. If such key terms
7of the transaction change, a new application shall be required.
8    Where a change of ownership is among related persons, and
9there are no other changes being proposed at the health care
10facility that would otherwise require a permit or exemption
11under this Act, the applicant shall submit an application
12consisting of a standard notice in a form set forth by the
13Board briefly explaining the reasons for the proposed change of
14ownership. Once such an application is submitted to the Board
15and reviewed by the Board staff, the Board Chair shall take
16action on an application for an exemption for a change of
17ownership among related persons within 45 days after the
18application has been deemed complete, provided the application
19meets the applicable standards under this Section. If the Board
20Chair has a conflict of interest or for other good cause, the
21Chair may request review by the Board. Notwithstanding any
22other provision of this Act, for purposes of this Section, a
23change of ownership among related persons means a transaction
24where the parties to the transaction are under common control
25or ownership before and after the transaction is completed.
26    Nothing in this Act shall be construed as authorizing the



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1Board to impose any conditions, obligations, or limitations,
2other than those required by this Section, with respect to the
3issuance of an exemption for a change of ownership, including,
4but not limited to, the time period before which a subsequent
5change of ownership of the health care facility could be
6sought, or the commitment to continue to offer for a specified
7time period any services currently offered by the health care
9    (a-3) Upon a finding that an application to close a health
10care facility is complete, the State Board shall publish a
11legal notice on 3 consecutive days in a newspaper of general
12circulation in the area or community to be affected and afford
13the public an opportunity to request a hearing. If the
14application is for a facility located in a Metropolitan
15Statistical Area, an additional legal notice shall be published
16in a newspaper of limited circulation, if one exists, in the
17area in which the facility is located. If the newspaper of
18limited circulation is published on a daily basis, the
19additional legal notice shall be published on 3 consecutive
20days. The legal notice shall also be posted on the Health
21Facilities and Services Review Board's web site and sent to the
22State Representative and State Senator of the district in which
23the health care facility is located. No later than 90 days
24after a discontinuation of a health facility, the applicant
25must submit a statement to the State Board certifying that the
26discontinuation is complete.



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1    (a-5) Upon a finding that an application to discontinue a
2category of service is complete and provides the requested
3information, as specified by the State Board, an exemption
4shall be issued. No later than 30 days after the issuance of
5the exemption, the health care facility must give written
6notice of the discontinuation of the category of service to the
7State Senator and State Representative serving the legislative
8district in which the health care facility is located. No later
9than 90 days after a discontinuation of a category of service,
10the applicant must submit a statement to the State Board
11certifying that the discontinuation is complete.
12    (b) If a public hearing is requested, it shall be held at
13least 15 days but no more than 30 days after the date of
14publication of the legal notice in the community in which the
15facility is located. The hearing shall be held in a place of
16reasonable size and accessibility and a full and complete
17written transcript of the proceedings shall be made. All
18interested persons attending the hearing shall be given a
19reasonable opportunity to present their positions in writing or
20orally. The applicant shall provide a summary of the proposal
21for distribution at the public hearing.
22    (c) For the purposes of this Section "newspaper of limited
23circulation" means a newspaper intended to serve a particular
24or defined population of a specific geographic area within a
25Metropolitan Statistical Area such as a municipality, town,
26village, township, or community area, but does not include



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1publications of professional and trade associations.
2(Source: P.A. 98-1086, eff. 8-26-14; 99-154, eff. 7-28-15.)
3    (20 ILCS 3960/10)  (from Ch. 111 1/2, par. 1160)
4    (Section scheduled to be repealed on December 31, 2019)
5    Sec. 10. Presenting information relevant to the approval of
6a permit or certificate or in opposition to the denial of the
7application; notice of outcome and review proceedings. When a
8motion by the State Board, to approve an application for a
9permit or a certificate of recognition, fails to pass, or when
10a motion to deny an application for a permit or a certificate
11of recognition is passed, the applicant or the holder of the
12permit, as the case may be, and such other parties as the State
13Board permits, will be given an opportunity to appear before
14the State Board and present such information as may be relevant
15to the approval of a permit or certificate or in opposition to
16the denial of the application.
17    Subsequent to an appearance by the applicant before the
18State Board or default of such opportunity to appear, a motion
19by the State Board to approve an application for a permit or a
20certificate of recognition which fails to pass or a motion to
21deny an application for a permit or a certificate of
22recognition which passes shall be considered denial of the
23application for a permit or certificate of recognition, as the
24case may be. Such action of denial or an action by the State
25Board to revoke a permit or a certificate of recognition shall



09900HB4518ham001- 24 -LRB099 17095 RJF 46440 a

1be communicated to the applicant or holder of the permit or
2certificate of recognition. Such person or organization shall
3be afforded an opportunity for a hearing before an
4administrative law judge, who is appointed by the Chairman of
5the State Board. A written notice of a request for such hearing
6shall be served upon the Chairman of the State Board within 30
7days following notification of the decision of the State Board.
8The administrative law judge shall take actions necessary to
9ensure that the hearing is completed within a reasonable period
10of time, but not to exceed 120 days, except for delays or
11continuances agreed to by the person requesting the hearing.
12Following its consideration of the report of the hearing, or
13upon default of the party to the hearing, the State Board shall
14make its final determination, specifying its findings and
15conclusions within 90 days of receiving the written report of
16the hearing. A copy of such determination shall be sent by
17certified mail or served personally upon the party.
18    A full and complete record shall be kept of all
19proceedings, including the notice of hearing, complaint, and
20all other documents in the nature of pleadings, written motions
21filed in the proceedings, and the report and orders of the
22State Board or hearing officer. All testimony shall be reported
23but need not be transcribed unless the decision is appealed in
24accordance with the Administrative Review Law, as now or
25hereafter amended. A copy or copies of the transcript may be
26obtained by any interested party on payment of the cost of



09900HB4518ham001- 25 -LRB099 17095 RJF 46440 a

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



09900HB4518ham001- 26 -LRB099 17095 RJF 46440 a

1witnesses, the production of books, papers, records, or
2memoranda and the giving of testimony before it or its hearing
3officer conducting an investigation or holding a hearing
4authorized by this Act, by an attachment for contempt, or
5otherwise, in the same manner as production of evidence may be
6compelled before the court.
7(Source: P.A. 97-1115, eff. 8-27-12; 98-1086, eff. 8-26-14.)
8    (20 ILCS 3960/14.1)
9    Sec. 14.1. Denial of permit; other sanctions.
10    (a) The State Board may deny an application for a permit or
11may revoke or take other action as permitted by this Act with
12regard to a permit as the State Board deems appropriate,
13including the imposition of fines as set forth in this Section,
14for any one or a combination of the following:
15        (1) The acquisition of major medical equipment without
16    a permit or in violation of the terms of a permit.
17        (2) The establishment, construction, modification, or
18    change of ownership of a health care facility without a
19    permit or exemption or in violation of the terms of a
20    permit.
21        (3) The violation of any provision of this Act or any
22    rule adopted under this Act.
23        (4) The failure, by any person subject to this Act, to
24    provide information requested by the State Board or Agency
25    within 30 days after a formal written request for the



09900HB4518ham001- 27 -LRB099 17095 RJF 46440 a

1    information.
2        (5) The failure to pay any fine imposed under this
3    Section within 30 days of its imposition.
4    (a-5) For facilities licensed under the ID/DD Community
5Care Act, no permit shall be denied on the basis of prior
6operator history, other than for actions specified under item
7(2), (4), or (5) of Section 3-117 of the ID/DD Community Care
8Act. For facilities licensed under the MC/DD Act, no permit
9shall be denied on the basis of prior operator history, other
10than for actions specified under item (2), (4), or (5) of
11Section 3-117 of the MC/DD Act. For facilities licensed under
12the Specialized Mental Health Rehabilitation Act of 2013, no
13permit shall be denied on the basis of prior operator history,
14other than for actions specified under subsections (a) and (b)
15item (2), (4), or (5) of Section 4-109 3-117 of the Specialized
16Mental Health Rehabilitation Act of 2013. For facilities
17licensed under the Nursing Home Care Act, no permit shall be
18denied on the basis of prior operator history, other than for:
19(i) actions specified under item (2), (3), (4), (5), or (6) of
20Section 3-117 of the Nursing Home Care Act; (ii) actions
21specified under item (a)(6) of Section 3-119 of the Nursing
22Home Care Act; or (iii) actions within the preceding 5 years
23constituting a substantial and repeated failure to comply with
24the Nursing Home Care Act or the rules and regulations adopted
25by the Department under that Act. The State Board shall not
26deny a permit on account of any action described in this



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1subsection (a-5) without also considering all such actions in
2the light of all relevant information available to the State
3Board, including whether the permit is sought to substantially
4comply with a mandatory or voluntary plan of correction
5associated with any action described in this subsection (a-5).
6    (b) Persons shall be subject to fines as follows:
7        (1) A permit holder who fails to comply with the
8    requirements of maintaining a valid permit shall be fined
9    an amount not to exceed 1% of the approved permit amount
10    plus an additional 1% of the approved permit amount for
11    each 30-day period, or fraction thereof, that the violation
12    continues.
13        (2) A permit holder who alters the scope of an approved
14    project or whose project costs exceed the allowable permit
15    amount without first obtaining approval from the State
16    Board shall be fined an amount not to exceed the sum of (i)
17    the lesser of $25,000 or 2% of the approved permit amount
18    and (ii) in those cases where the approved permit amount is
19    exceeded by more than $1,000,000, an additional $20,000 for
20    each $1,000,000, or fraction thereof, in excess of the
21    approved permit amount.
22        (2.5) A permit holder who fails to comply with the
23    post-permit and reporting requirements set forth in
24    Sections Section 5 and 8.5 shall be fined an amount not to
25    exceed $10,000 plus an additional $10,000 for each 30-day
26    period, or fraction thereof, that the violation continues.



09900HB4518ham001- 29 -LRB099 17095 RJF 46440 a

1    This fine shall continue to accrue until the date that (i)
2    the post-permit requirements are met and the post-permit or
3    post-exemption reports are received by the State Board or
4    (ii) the matter is referred by the State Board to the State
5    Board's legal counsel. The accrued fine is not waived by
6    the permit holder submitting the required information and
7    reports. Prior to any fine beginning to accrue, the Board
8    shall notify, in writing, a permit holder of the due date
9    for the post-permit and reporting requirements no later
10    than 30 days before the due date for the requirements. This
11    paragraph (2.5) takes effect 6 months after August 27, 2012
12    (the effective date of Public Act 97-1115).
13        (3) A person who acquires major medical equipment or
14    who establishes a category of service without first
15    obtaining a permit or exemption, as the case may be, shall
16    be fined an amount not to exceed $10,000 for each such
17    acquisition or category of service established plus an
18    additional $10,000 for each 30-day period, or fraction
19    thereof, that the violation continues.
20        (4) A person who constructs, modifies, establishes, or
21    changes ownership of a health care facility without first
22    obtaining a permit or exemption shall be fined an amount
23    not to exceed $25,000 plus an additional $25,000 for each
24    30-day period, or fraction thereof, that the violation
25    continues.
26        (5) A person who discontinues a health care facility or



09900HB4518ham001- 30 -LRB099 17095 RJF 46440 a

1    a category of service without first obtaining a permit or
2    exemption 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. For
5    purposes of this subparagraph (5), facilities licensed
6    under the Nursing Home Care Act, the ID/DD Community Care
7    Act, or the MC/DD Act, with the exceptions of facilities
8    operated by a county or Illinois Veterans Homes, are exempt
9    from this permit requirement. However, facilities licensed
10    under the Nursing Home Care Act, the ID/DD Community Care
11    Act, or the MC/DD Act must comply with Section 3-423 of the
12    Nursing Home Care Act, Section 3-423 of the ID/DD Community
13    Care Act, or Section 3-423 of the MC/DD Act and must
14    provide the Board and the Department of Human Services with
15    30 days' written notice of their intent to close.
16    Facilities licensed under the ID/DD Community Care Act or
17    the MC/DD Act also must provide the Board and the
18    Department of Human Services with 30 days' written notice
19    of their intent to reduce the number of beds for a
20    facility.
21        (6) A person subject to this Act who fails to provide
22    information requested by the State Board or Agency within
23    30 days of a formal written request shall be fined an
24    amount not to exceed $1,000 plus an additional $1,000 for
25    each 30-day period, or fraction thereof, that the
26    information is not received by the State Board or Agency.



09900HB4518ham001- 31 -LRB099 17095 RJF 46440 a

1    (b-5) The State Board may accept in-kind services instead
2of or in combination with the imposition of a fine. This
3authorization is limited to cases where the non-compliant
4individual or entity has waived the right to an administrative
5hearing or opportunity to appear before the Board regarding the
6non-compliant matter.
7    (c) Before imposing any fine authorized under this Section,
8the State Board shall afford the person or permit holder, as
9the case may be, an appearance before the State Board and an
10opportunity for a hearing before a hearing officer appointed by
11the State Board. The hearing shall be conducted in accordance
12with Section 10. Requests for an appearance before the State
13Board must be made within 30 days after receiving notice that a
14fine will be imposed.
15    (d) All fines collected under this Act shall be transmitted
16to the State Treasurer, who shall deposit them into the
17Illinois Health Facilities Planning Fund.
18    (e) Fines imposed under this Section shall continue to
19accrue until: (i) the date that the matter is referred by the
20State Board to the Board's legal counsel; or (ii) the date that
21the health care facility becomes compliant with the Act,
22whichever is earlier.
23(Source: P.A. 98-463, eff. 8-16-13; 99-114, eff. 7-23-15;
2499-180, eff. 7-29-15; revised 10-14-15.)".