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91_SB0807enr SB807 Enrolled LRB9106074MWmb 1 AN ACT in relation to health facilities. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Open Meetings Act is amended by changing 5 Section 1.02 as follows: 6 (5 ILCS 120/1.02) (from Ch. 102, par. 41.02) 7 Sec. 1.02. For the purposes of this Act: 8 "Meeting" means any gathering of a majority of a quorum 9 of the memberscommissionersof a public body held for the 10 purpose of discussing public business. 11 "Public body" includes all legislative, executive, 12 administrative or advisory bodies of the State, counties, 13 townships, cities, villages, incorporated towns, school 14 districts and all other municipal corporations, boards, 15 bureaus, committees or commissions of this State, and any 16 subsidiary bodies of any of the foregoing including but not 17 limited to committees and subcommittees which are supported 18 in whole or in part by tax revenue, or which expend tax 19 revenue, except the General Assembly and committees or 20 commissions thereof. "Public body" includes tourism boards 21 and convention or civic center boards located in counties 22 that are contiguous to the Mississippi River with populations 23 of more than 250,000 but less than 300,000. "Public body" 24 includes the Health Facilities Planning Board. "Public body" 25 does not include a child death review team established under 26 the Child Death Review Team Act or an ethics commission, 27 ethics officer, or ultimate jurisdictional authority acting 28 under the State Gift Ban Act as provided by Section 80 of 29 that Act. 30 (Source: P.A. 90-517, eff. 8-22-97; 90-737, eff. 1-1-99; 31 revised 11-8-99.) SB807 Enrolled -2- LRB9106074MWmb 1 Section 10. The State Gift Ban Act is amended by 2 changing Section 5 as follows: 3 (5 ILCS 425/5) 4 Sec. 5. Definitions. As used in this Act: 5 "Commission" means an ethics commission created by this 6 Act. 7 "Employee" means all full-time, part-time, and 8 contractual employees, appointed and elected officials, and 9 directors of a governmental entity. 10 "Gift" means any gratuity, discount, entertainment, 11 hospitality, loan, forbearance, or other tangible or 12 intangible item having monetary value including, but not 13 limited to, cash, food and drink, and honoraria for speaking 14 engagements related to or attributable to government 15 employment or the official position of an employee, member, 16 officer, or judge. 17 "Governmental entity" means each office, board, 18 commission, agency, department, authority, institution, 19 university, body politic and corporate, administrative unit, 20 and corporate outgrowth of the executive, legislative, and 21 judicial branches of State government, whether created by the 22 Illinois Constitution, by or in accordance with statute, or 23 by executive order of the Governor. "Governmental entity" 24 includes the Health Facilities Planning Board. 25 "Judge" means judges and associate judges of the Supreme 26 Court, Appellate Courts, and Circuit Courts. 27 "Member" means a member of the General Assembly. 28 "Officer" means a State constitutional officer. 29 "Political organization" means a party, committee, 30 association, fund, or other organization (whether or not 31 incorporated) organized and operated primarily for the 32 purpose of directly or indirectly accepting contributions or 33 making expenditures, or both, for the function of influencing SB807 Enrolled -3- LRB9106074MWmb 1 or attempting to influence the selection, nomination, 2 election, or appointment of any individual to any federal, 3 state, or local public office or office in a political 4 organization, or the election of Presidential or 5 Vice-Presidential electors, whether or not the individual or 6 electors are selected, nominated, elected, or appointed. The 7 term includes the making of expenditures relating to an 8 office described in the preceding sentence that, if incurred 9 by the individual, would be allowable as a federal income tax 10 deduction for trade or business expenses. 11 "Prohibited source" means any person or entity who: 12 (1) is seeking official action (i) by the member, 13 officer, or judge or (ii) in the case of an employee, by 14 the employee or by the member, officer, judge, 15 governmental entity, or other employee directing the 16 employee; 17 (2) does business or seeks to do business (i) with 18 the member, officer, or judge or (ii) in the case of an 19 employee, with the employee or with the member, officer, 20 judge, governmental entity, or other employee directing 21 the employee; 22 (3) conducts activities regulated (i) by the 23 member, officer, or judge or (ii) in the case of an 24 employee, by the employee or by the member, officer, 25 judge, governmental entity, or other employee directing 26 the employee; 27 (4) has interests that may be substantially 28 affected by the performance or non-performance of the 29 official duties of the member, officer, employee, or 30 judge; or 31 (5) is registered or required to be registered with 32 the Secretary of State under the Lobbyist Registration 33 Act. 34 "Ultimate jurisdictional authority" means the following: SB807 Enrolled -4- LRB9106074MWmb 1 (1) For members, partisan staff, and their 2 secretaries, the appropriate legislative leader: 3 President of the Senate, Minority Leader of the Senate, 4 Speaker of the House of Representatives, or Minority 5 Leader of the House of Representatives. 6 (2) For State employees who are professional staff 7 or employees of the Senate and not covered under item 8 (1), the Senate Operations Commission. 9 (3) For State employees who are professional staff 10 or employees of the House of Representatives and not 11 covered under item (1), the Speaker of the House of 12 Representatives. 13 (4) For State employees who are employees of the 14 legislative support services agencies, the Joint 15 Committee on Legislative Support Services. 16 (5) For judges, the Chief Justice of the Supreme 17 Court. 18 (6) For State employees of the judicial branch, the 19 Administrative Office of the Illinois Courts. 20 (7) For State employees of an executive branch 21 constitutional officer, the appropriate executive branch 22 constitutional officer. 23 (8) For State employees not under the jurisdiction 24 of paragraph (1), (2), (3), (4), (5), (6), or (7), the 25 Governor. 26 (9) For officers, the General Assembly. 27 (Source: P.A. 90-737, eff. 1-1-99.) 28 Section 15. The Illinois Health Facilities Planning Act 29 is amended by changing Sections 3, 4, and 5 and by adding 30 Sections 4.1, 4.2, 5.2, 5.3, 19.5, and 19.6 as follows: 31 (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153) 32 (Text of Section before amendment by P.A. 91-656) SB807 Enrolled -5- LRB9106074MWmb 1 Sec. 3. As used in this Act: 2 "Health care facilities" means and includes the following 3 facilities and organizations: 4 1. An ambulatory surgical treatment center required 5 to be licensed pursuant to the Ambulatory Surgical 6 Treatment Center Act; 7 2. An institution, place, building, or agency 8 required to be licensed pursuant to the Hospital 9 Licensing Act; 10 3. Any institution required to be licensed pursuant 11 to the Nursing Home Care Act; 12 4. Hospitals, nursing homes, ambulatory surgical 13 treatment centers, or kidney disease treatment centers 14 maintained by the State or any department or agency 15 thereof;and16 5. Kidney disease treatment centers, including a 17 free-standing hemodialysis unit; and.18 6. An institution, place, building, or room used 19 for the performance of outpatient surgical procedures 20 that is leased, owned, or operated by or on behalf of an 21 out-of-state facility. 22 No federally owned facility shall be subject to the 23 provisions of this Act, nor facilities used solely for 24 healing by prayer or spiritual means. 25 No facility licensed under the Supportive Residences 26 Licensing Act shall be subject to the provisions of this Act. 27 A facility designated as a supportive living facility 28 that is in good standing with the demonstration project 29 established under Section 5-5.01a of the Illinois Public Aid 30 Code shall not be subject to the provisions of this Act. 31 This Act does not apply to facilities granted waivers 32 under Section 3-102.2 of the Nursing Home Care Act. However, 33 if a demonstration project under that Act applies for a 34 certificate of need to convert to a nursing facility, it SB807 Enrolled -6- LRB9106074MWmb 1 shall meet the licensure and certificate of need requirements 2 in effect as of the date of application. 3 With the exception of those health care facilities 4 specifically included in this Section, nothing in this Act 5 shall be intended to include facilities operated as a part of 6 the practice of a physician or other licensed health care 7 professional, whether practicing in his individual capacity 8 or within the legal structure of any partnership, medical or 9 professional corporation, or unincorporated medical or 10 professional group. Further, this Act shall not apply to 11 physicians or other licensed health care professional's 12 practices where such practices are carried out in a portion 13 of a health care facility under contract with such health 14 care facility by a physician or by other licensed health care 15 professionals, whether practicing in his individual capacity 16 or within the legal structure of any partnership, medical or 17 professional corporation, or unincorporated medical or 18 professional groups. This Act shall apply to construction or 19 modification and to establishment by such health care 20 facility of such contracted portion which is subject to 21 facility licensing requirements, irrespective of the party 22 responsible for such action or attendant financial 23 obligation. 24 "Person" means any one or more natural persons, legal 25 entities, governmental bodies other than federal, or any 26 combination thereof. 27 "Consumer" means any person other than a person (a) whose 28 major occupation currently involves or whose official 29 capacity within the last 12 months has involved the 30 providing, administering or financing of any type of health 31 care facility, (b) who is engaged in health research or the 32 teaching of health, (c) who has a material financial interest 33 in any activity which involves the providing, administering 34 or financing of any type of health care facility, or (d) who SB807 Enrolled -7- LRB9106074MWmb 1 is or ever has been a member of the immediate family of the 2 person defined by (a), (b), or (c). 3 "State Board" means the Health Facilities Planning Board. 4 "Construction or modification" means the establishment, 5 erection, building, alteration, reconstruction, 6 modernization, improvement, extension, discontinuation, 7 change of ownership, of or by a health care facility, or the 8 purchase or acquisition by or through a health care facility 9 of equipment or service for diagnostic or therapeutic 10 purposes or for facility administration or operation, or any 11 capital expenditure made by or on behalf of a health care 12 facility which exceeds the capital expenditure minimum; 13 however, any capital expenditure made by or on behalf of a 14 health care facility for the construction or modification of 15 a facility licensed under the Assisted Living and Shared 16 Housing Act shall be excluded from any obligations under this 17 Act. 18 "Establish" means the construction of a health care 19 facility or the replacement of an existing facility on 20 another site. 21 "Major medical equipment" means medical equipment which 22 is used for the provision of medical and other health 23 services and which costs in excess of the capital expenditure 24 minimum, except that such term does not include medical 25 equipment acquired by or on behalf of a clinical laboratory 26 to provide clinical laboratory services if the clinical 27 laboratory is independent of a physician's office and a 28 hospital and it has been determined under Title XVIII of the 29 Social Security Act to meet the requirements of paragraphs 30 (10) and (11) of Section 1861(s) of such Act. In determining 31 whether medical equipment has a value in excess of the 32 capital expenditure minimum, the value of studies, surveys, 33 designs, plans, working drawings, specifications, and other 34 activities essential to the acquisition of such equipment SB807 Enrolled -8- LRB9106074MWmb 1 shall be included. 2 "Capital Expenditure" means an expenditure: (A) made by 3 or on behalf of a health care facility (as such a facility is 4 defined in this Act); and (B) which under generally accepted 5 accounting principles is not properly chargeable as an 6 expense of operation and maintenance, or is made to obtain by 7 lease or comparable arrangement any facility or part thereof 8 or any equipment for a facility or part; and which exceeds 9 the capital expenditure minimum. 10 For the purpose of this paragraph, the cost of any 11 studies, surveys, designs, plans, working drawings, 12 specifications, and other activities essential to the 13 acquisition, improvement, expansion, or replacement of any 14 plant or equipment with respect to which an expenditure is 15 made shall be included in determining if such expenditure 16 exceeds the capital expenditures minimum. Donations of 17 equipment or facilities to a health care facility which if 18 acquired directly by such facility would be subject to review 19 under this Act shall be considered capital expenditures, and 20 a transfer of equipment or facilities for less than fair 21 market value shall be considered a capital expenditure for 22 purposes of this Act if a transfer of the equipment or 23 facilities at fair market value would be subject to review. 24 "Capital expenditure minimum" means $6,000,000, which 25 shall be annually adjusted to reflect the increase in 26 construction costs due to inflation,$1,000,000for major 27 medical equipment and$2,000,000for all other capital 28 expenditures; provided, however, that when a capital 29 expenditure is for the construction or modification of a 30 health and fitness center, "capital expenditure minimum" 31 means the capital expenditure minimum for all other capital 32 expenditures in effect on March 1, 2000, which shall be 33 annually adjusted to reflect the increase in construction 34 costs due to inflation, both of which shall be annuallySB807 Enrolled -9- LRB9106074MWmb 1adjusted to reflect the increase in construction costs due to2inflation. 3 "Non-clinical service area" means an area (i) for the 4 benefit of the patients, visitors, staff, or employees of a 5 health care facility and (ii) not directly related to the 6 diagnosis, treatment, or rehabilitation of persons receiving 7 services from the health care facility. "Non-clinical 8 service areas" include, but are not limited to, chapels; gift 9 shops; news stands; computer systems; tunnels, walkways, and 10 elevators; telephone systems; projects to comply with life 11 safety codes; educational facilities; student housing; 12 patient, employee, staff, and visitor dining areas; 13 administration and volunteer offices; modernization of 14 structural components (such as roof replacement and masonry 15 work); boiler repair or replacement; vehicle maintenance and 16 storage facilities; parking facilities; mechanical systems 17 for heating, ventilation, and air conditioning; loading 18 docks; and repair or replacement of carpeting, tile, wall 19 coverings, window coverings or treatments, or furniture. 20 Solely for the purpose of this definition, "non-clinical 21 service area" does not include health and fitness centers. 22 "Areawide" means a major area of the State delineated on 23 a geographic, demographic, and functional basis for health 24 planning and for health service and having within it one or 25 more local areas for health planning and health service. The 26 term "region", as contrasted with the term "subregion", and 27 the word "area" may be used synonymously with the term 28 "areawide". 29 "Local" means a subarea of a delineated major area that 30 on a geographic, demographic, and functional basis may be 31 considered to be part of such major area. The term 32 "subregion" may be used synonymously with the term "local". 33 "Areawide health planning organization" or "Comprehensive 34 health planning organization" means the health systems agency SB807 Enrolled -10- LRB9106074MWmb 1 designated by the Secretary, Department of Health and Human 2 Services or any successor agency. 3 "Local health planning organization" means those local 4 health planning organizations that are designated as such by 5 the areawide health planning organization of the appropriate 6 area. 7 "Physician" means a person licensed to practice in 8 accordance with the Medical Practice Act of 1987, as amended. 9 "Licensed health care professional" means a person 10 licensed to practice a health profession under pertinent 11 licensing statutes of the State of Illinois. 12 "Director" means the Director of the Illinois Department 13 of Public Health. 14 "Agency" means the Illinois Department of Public Health. 15 "Comprehensive health planning" means health planning 16 concerned with the total population and all health and 17 associated problems that affect the well-being of people and 18 that encompasses health services, health manpower, and health 19 facilities; and the coordination among these and with those 20 social, economic, and environmental factors that affect 21 health. 22 "Alternative health care model" means a facility or 23 program authorized under the Alternative Health Care Delivery 24 Act. 25 "Out-of-state facility" means a person that is both (i) 26 licensed as a hospital or as an ambulatory surgery center 27 under the laws of another state or that qualifies as a 28 hospital or an ambulatory surgery center under regulations 29 adopted pursuant to the Social Security Act and (ii) not 30 licensed under the Ambulatory Surgical Treatment Center Act, 31 the Hospital Licensing Act, or the Nursing Home Care Act. 32 Affiliates of out-of-state facilities shall be considered 33 out-of-state facilities. Affiliates of Illinois licensed 34 health care facilities 100% owned by an Illinois licensed SB807 Enrolled -11- LRB9106074MWmb 1 health care facility, its parent, or Illinois physicians 2 licensed to practice medicine in all its branches shall not 3 be considered out-of-state facilities. Nothing in this 4 definition shall be construed to include an office or any 5 part of an office of a physician licensed to practice 6 medicine in all its branches in Illinois that is not required 7 to be licensed under the Ambulatory Surgical Treatment Center 8 Act. 9 (Source: P.A. 89-499, eff. 6-28-96; 89-530, eff. 7-19-96; 10 90-14, eff. 7-1-97.) 11 (Text of Section after amendment by P.A. 91-656) 12 Sec. 3. As used in this Act: 13 "Health care facilities" means and includes the following 14 facilities and organizations: 15 1. An ambulatory surgical treatment center required 16 to be licensed pursuant to the Ambulatory Surgical 17 Treatment Center Act; 18 2. An institution, place, building, or agency 19 required to be licensed pursuant to the Hospital 20 Licensing Act; 21 3. Skilled and intermediate long term care 22 facilities licensed under the Nursing Home Care Act; 23 3. Skilled and intermediate long term care 24 facilities licensed under the Nursing Home Care Act; 25 4. Hospitals, nursing homes, ambulatory surgical 26 treatment centers, or kidney disease treatment centers 27 maintained by the State or any department or agency 28 thereof;and29 5. Kidney disease treatment centers, including a 30 free-standing hemodialysis unit; and.31 6. An institution, place, building, or room used 32 for the performance of outpatient surgical procedures 33 that is leased, owned, or operated by or on behalf of an 34 out-of-state facility. SB807 Enrolled -12- LRB9106074MWmb 1 No federally owned facility shall be subject to the 2 provisions of this Act, nor facilities used solely for 3 healing by prayer or spiritual means. 4 No facility licensed under the Supportive Residences 5 Licensing Act or the Assisted Living and Shared Housing Act 6 shall be subject to the provisions of this Act. 7 A facility designated as a supportive living facility 8 that is in good standing with the demonstration project 9 established under Section 5-5.01a of the Illinois Public Aid 10 Code shall not be subject to the provisions of this Act. 11 This Act does not apply to facilities granted waivers 12 under Section 3-102.2 of the Nursing Home Care Act. However, 13 if a demonstration project under that Act applies for a 14 certificate of need to convert to a nursing facility, it 15 shall meet the licensure and certificate of need requirements 16 in effect as of the date of application. 17 This Act shall not apply to the closure of an entity or a 18 portion of an entity licensed under the Nursing Home Care Act 19 that elects to convert, in whole or in part, to an assisted 20 living or shared housing establishment licensed under the 21 Assisted Living and Shared Housing Establishment Act. 22 With the exception of those health care facilities 23 specifically included in this Section, nothing in this Act 24 shall be intended to include facilities operated as a part of 25 the practice of a physician or other licensed health care 26 professional, whether practicing in his individual capacity 27 or within the legal structure of any partnership, medical or 28 professional corporation, or unincorporated medical or 29 professional group. Further, this Act shall not apply to 30 physicians or other licensed health care professional's 31 practices where such practices are carried out in a portion 32 of a health care facility under contract with such health 33 care facility by a physician or by other licensed health care 34 professionals, whether practicing in his individual capacity SB807 Enrolled -13- LRB9106074MWmb 1 or within the legal structure of any partnership, medical or 2 professional corporation, or unincorporated medical or 3 professional groups. This Act shall apply to construction or 4 modification and to establishment by such health care 5 facility of such contracted portion which is subject to 6 facility licensing requirements, irrespective of the party 7 responsible for such action or attendant financial 8 obligation. 9 "Person" means any one or more natural persons, legal 10 entities, governmental bodies other than federal, or any 11 combination thereof. 12 "Consumer" means any person other than a person (a) whose 13 major occupation currently involves or whose official 14 capacity within the last 12 months has involved the 15 providing, administering or financing of any type of health 16 care facility, (b) who is engaged in health research or the 17 teaching of health, (c) who has a material financial interest 18 in any activity which involves the providing, administering 19 or financing of any type of health care facility, or (d) who 20 is or ever has been a member of the immediate family of the 21 person defined by (a), (b), or (c). 22 "State Board" means the Health Facilities Planning Board. 23 "Construction or modification" means the establishment, 24 erection, building, alteration, reconstruction, 25 modernization, improvement, extension, discontinuation, 26 change of ownership, of or by a health care facility, or the 27 purchase or acquisition by or through a health care facility 28 of equipment or service for diagnostic or therapeutic 29 purposes or for facility administration or operation, or any 30 capital expenditure made by or on behalf of a health care 31 facility which exceeds the capital expenditure minimum; 32 however, any capital expenditure made by or on behalf of a 33 health care facility for the construction or modification of 34 a facility licensed under the Assisted Living and Shared SB807 Enrolled -14- LRB9106074MWmb 1 Housing Act shall be excluded from any obligations under this 2 Act. 3 "Establish" means the construction of a health care 4 facility or the replacement of an existing facility on 5 another site. 6 "Major medical equipment" means medical equipment which 7 is used for the provision of medical and other health 8 services and which costs in excess of the capital expenditure 9 minimum, except that such term does not include medical 10 equipment acquired by or on behalf of a clinical laboratory 11 to provide clinical laboratory services if the clinical 12 laboratory is independent of a physician's office and a 13 hospital and it has been determined under Title XVIII of the 14 Social Security Act to meet the requirements of paragraphs 15 (10) and (11) of Section 1861(s) of such Act. In determining 16 whether medical equipment has a value in excess of the 17 capital expenditure minimum, the value of studies, surveys, 18 designs, plans, working drawings, specifications, and other 19 activities essential to the acquisition of such equipment 20 shall be included. 21 "Capital Expenditure" means an expenditure: (A) made by 22 or on behalf of a health care facility (as such a facility is 23 defined in this Act); and (B) which under generally accepted 24 accounting principles is not properly chargeable as an 25 expense of operation and maintenance, or is made to obtain by 26 lease or comparable arrangement any facility or part thereof 27 or any equipment for a facility or part; and which exceeds 28 the capital expenditure minimum. 29 For the purpose of this paragraph, the cost of any 30 studies, surveys, designs, plans, working drawings, 31 specifications, and other activities essential to the 32 acquisition, improvement, expansion, or replacement of any 33 plant or equipment with respect to which an expenditure is 34 made shall be included in determining if such expenditure SB807 Enrolled -15- LRB9106074MWmb 1 exceeds the capital expenditures minimum. Donations of 2 equipment or facilities to a health care facility which if 3 acquired directly by such facility would be subject to review 4 under this Act shall be considered capital expenditures, and 5 a transfer of equipment or facilities for less than fair 6 market value shall be considered a capital expenditure for 7 purposes of this Act if a transfer of the equipment or 8 facilities at fair market value would be subject to review. 9 "Capital expenditure minimum" means $6,000,000, which 10 shall be annually adjusted to reflect the increase in 11 construction costs due to inflation,$1,000,000for major 12 medical equipment and$2,000,000for all other capital 13 expenditures; provided, however, that when a capital 14 expenditure is for the construction or modification of a 15 health and fitness center, "capital expenditure minimum" 16 means the capital expenditure minimum for all other capital 17 expenditures in effect on March 1, 2000, which shall be 18 annually adjusted to reflect the increase in construction 19 costs due to inflation, both of which shall be annually20adjusted to reflect the increase in construction costs due to21inflation. 22 "Non-clinical service area" means an area (i) for the 23 benefit of the patients, visitors, staff, or employees of a 24 health care facility and (ii) not directly related to the 25 diagnosis, treatment, or rehabilitation of persons receiving 26 services from the health care facility. "Non-clinical service 27 areas" include, but are not limited to, chapels; gift shops; 28 news stands; computer systems; tunnels, walkways, and 29 elevators; telephone systems; projects to comply with life 30 safety codes; educational facilities; student housing; 31 patient, employee, staff, and visitor dining areas; 32 administration and volunteer offices; modernization of 33 structural components (such as roof replacement and masonry 34 work); boiler repair or replacement; vehicle maintenance and SB807 Enrolled -16- LRB9106074MWmb 1 storage facilities; parking facilities; mechanical systems 2 for heating, ventilation, and air conditioning; loading 3 docks; and repair or replacement of carpeting, tile, wall 4 coverings, window coverings or treatments, or furniture. 5 Solely for the purpose of this definition, "non-clinical 6 service area" does not include health and fitness centers. 7 "Areawide" means a major area of the State delineated on 8 a geographic, demographic, and functional basis for health 9 planning and for health service and having within it one or 10 more local areas for health planning and health service. The 11 term "region", as contrasted with the term "subregion", and 12 the word "area" may be used synonymously with the term 13 "areawide". 14 "Local" means a subarea of a delineated major area that 15 on a geographic, demographic, and functional basis may be 16 considered to be part of such major area. The term 17 "subregion" may be used synonymously with the term "local". 18 "Areawide health planning organization" or "Comprehensive 19 health planning organization" means the health systems agency 20 designated by the Secretary, Department of Health and Human 21 Services or any successor agency. 22 "Local health planning organization" means those local 23 health planning organizations that are designated as such by 24 the areawide health planning organization of the appropriate 25 area. 26 "Physician" means a person licensed to practice in 27 accordance with the Medical Practice Act of 1987, as amended. 28 "Licensed health care professional" means a person 29 licensed to practice a health profession under pertinent 30 licensing statutes of the State of Illinois. 31 "Director" means the Director of the Illinois Department 32 of Public Health. 33 "Agency" means the Illinois Department of Public Health. 34 "Comprehensive health planning" means health planning SB807 Enrolled -17- LRB9106074MWmb 1 concerned with the total population and all health and 2 associated problems that affect the well-being of people and 3 that encompasses health services, health manpower, and health 4 facilities; and the coordination among these and with those 5 social, economic, and environmental factors that affect 6 health. 7 "Alternative health care model" means a facility or 8 program authorized under the Alternative Health Care Delivery 9 Act. 10 "Out-of-state facility" means a person that is both (i) 11 licensed as a hospital or as an ambulatory surgery center 12 under the laws of another state or that qualifies as a 13 hospital or an ambulatory surgery center under regulations 14 adopted pursuant to the Social Security Act and (ii) not 15 licensed under the Ambulatory Surgical Treatment Center Act, 16 the Hospital Licensing Act, or the Nursing Home Care Act. 17 Affiliates of out-of-state facilities shall be considered 18 out-of-state facilities. Affiliates of Illinois licensed 19 health care facilities 100% owned by an Illinois licensed 20 health care facility, its parent, or Illinois physicians 21 licensed to practice medicine in all its branches shall not 22 be considered out-of-state facilities. Nothing in this 23 definition shall be construed to include an office or any 24 part of an office of a physician licensed to practice 25 medicine in all its branches in Illinois that is not required 26 to be licensed under the Ambulatory Surgical Treatment Center 27 Act. 28 (Source: P.A. 90-14, eff. 7-1-97; 91-656, eff. 1-1-01.) 29 (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154) 30 Sec. 4. There is created the Health Facilities Planning 31 Board, which shall perform such functions as hereinafter 32 described in this Act. 33 The State Board shall consist of 15 voting members, SB807 Enrolled -18- LRB9106074MWmb 1 including: 8 consumer members; one member representing the 2 commercial health insurance industry in Illinois; one member 3 representingproprietaryhospitals in Illinois; one member 4 who is actively engaged in the field of hospital management; 5 one member who is a professional nurse registered in 6 Illinois; one member who is a physician in active private 7 practice licensed in Illinois to practice medicine in all of 8 its branches; one member who is actively engaged in the field 9 of skilled nursing or intermediate care facility management; 10 and one member who is actively engaged in the administration 11 of an ambulatory surgical treatment center licensed under the 12 Ambulatory Surgical Treatment Center Act. 13 The State Board shall be appointed by the Governor, with 14 the advice and consent of the Senate. In making the 15 appointments, the Governor shall give consideration to 16 recommendations made by (1) the professional organizations 17 concerned with hospital management for the hospital 18 management appointment, (2) professional organizations 19 concerned with long term care facility management for the 20 long term care facility management appointment, (3) 21 professional medical organizations for the physician 22 appointment, (4) professional nursing organizations for the 23 nurse appointment, and (5) professional organizations 24 concerned with ambulatory surgical treatment centers for the 25 ambulatory surgical treatment center appointment, and shall 26 appoint as consumer members individuals familiar with 27 community health needs but whose interest in the operation, 28 construction or utilization of health care facilities are 29 derived from factors other than those related to his 30 profession, business, or economic gain, and who represent, so 31 far as possible, different geographic areas of the State. Not 32 more than 8 of the appointments shall be of the same 33 political party. 34 The Secretary of Human Services, the Director of Public SB807 Enrolled -19- LRB9106074MWmb 1 Aid, and the Director of Public Health, or their designated 2 representatives, shall serve as ex-officio, non-voting 3 members of the State Board. 4 Of those appointed by the Governor as voting members, 5 each member shall hold office for a term of 3 years: 6 provided, that any member appointed to fill a vacancy 7 occurring prior to the expiration of the term for which his 8 predecessor was appointed shall be appointed for the 9 remainder of such term and the term of office of each 10 successor shall commence on July 1 of the year in which his 11 predecessor's term expires. In making original appointments 12 to the State Board, the Governor shall appoint 5 members for 13 a term of one year, 5 for a term of 2 years, and 3 for a term 14 of 3 years, and each of these terms of office shall commence 15 on July 1, 1974. The initial term of office for the members 16 appointed under this amendatory Act of 1996 shall begin on 17 July 1, 1996 and shall last for 2 years, and each subsequent 18 appointment shall be for a term of 3 years. Each member 19 shall hold office until his successor is appointed and 20 qualified. 21 State Board members, while serving on business of the 22 State Board, shall receive actual and necessary travel and 23 subsistence expenses while so serving away from their places 24 of residence. In addition, while serving on business of the 25 State Board, each member shall receive compensation of $150 26 per day, except that such compensation shall not exceed 27 $7,500 in any one year for any member. 28 The State Board shall provide for its own organization 29 and procedures, including the selection of a Chairman and 30 such other officers as deemed necessary. The Director, with 31 concurrence of the State Board, shall name as full-time 32 Executive Secretary of the State Board, a person qualified in 33 health care facility planning and in administration. The 34 Agency shall provide administrative and staff support for the SB807 Enrolled -20- LRB9106074MWmb 1 State Board. The State Board shall advise the Director of 2 its budgetary and staff needs and consult with the Director 3 on annual budget preparation. 4 The State Board shall meet at least once each quarter, or 5 as often as the Chairman of the State Board deems necessary, 6 or upon the request of a majority of the members. 7 Eight members of the State Board shall constitute a 8 quorum. The affirmative vote of 8 of the members of the 9 State Board shall be necessary for any action requiring a 10 vote to be taken by the State Board. A vacancy in the 11 membership of the State Board shall not impair the right of a 12 quorum to exercise all the rights and perform all the duties 13 of the State Board as provided by this Act. 14 (Source: P.A. 89-674, eff. 8-14-96; 90-14, eff. 7-1-97.) 15 (20 ILCS 3960/4.1 new) 16 Sec. 4.1. Ethics laws. 17 (a) All State Board meetings are subject to the Open 18 Meetings Act. 19 (b) The State Board is subject to the State Gift Ban Act. 20 (20 ILCS 3960/4.2 new) 21 Sec. 4.2. Ex parte communications. 22 (a) Except in the disposition of matters that agencies 23 are authorized by law to entertain or dispose of on an ex 24 parte basis including, but not limited to rule making, the 25 State Board, any State Board member, employee, or a hearing 26 officer shall not engage in ex parte communication, after an 27 application for a permit is received, in connection with the 28 substance of any application for a permit with any person or 29 party or the representative of any party. 30 (b) A State Board member or employee may communicate 31 with other members or employees and any State Board member or 32 hearing officer may have the aid and advice of one or more SB807 Enrolled -21- LRB9106074MWmb 1 personal assistants. 2 (c) An ex parte communication received by the State 3 Board, any State Board member, employee, or a hearing officer 4 shall be made a part of the record of the pending matter, 5 including all written communications, all written responses 6 to the communications, and a memorandum stating the substance 7 of all oral communications and all responses made and the 8 identity of each person from whom the ex parte communication 9 was received. 10 (d) "Ex parte communication" means a communication 11 between a person who is not a State Board member or employee 12 and State Board member or employee that reflects on the 13 substance of a pending State Board proceeding and that takes 14 place outside the record of the proceeding. Communications 15 regarding matters of procedure and practice, such as the 16 format of pleading, number of copies required, manner of 17 service, and status of proceedings, are not considered ex 18 parte communications. Technical assistance with respect to 19 an application, not intended to influence any decision on the 20 application, may be provided by employees to the applicant. 21 Any assistance shall be documented in writing by the 22 applicant and employees within 10 business days after the 23 assistance is provided. 24 (e) For purposes of this Section, "employee" means a 25 person the State Board or the Agency employs on a full-time, 26 part-time, contract, or intern basis. 27 (f) The State Board, State Board member, or hearing 28 examiner presiding over the proceeding, in the event of a 29 violation of this Section, must take whatever action is 30 necessary to ensure that the violation does not prejudice any 31 party or adversely affect the fairness of the proceedings. 32 (g) Nothing in this Section shall be construed to 33 prevent the State Board or any member of the State Board from 34 consulting with the attorney for the State Board. SB807 Enrolled -22- LRB9106074MWmb 1 (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155) 2 Sec. 5. After effective dates set by the State Board, 3 no person shall construct, modify or establish a health care 4 facility or acquire major medical equipment without first 5 obtaining a permit or exemption from the State Board. The 6 State Board shall not delegate to the Executive Secretary of 7 the State Board or any other person or entity the authority 8 to grant permits or exemptions whenever the Executive 9 Secretary or other person or entity would be required to 10 exercise any discretion affecting the decision to grant a 11 permit or exemption. The State Board shall set effective 12 dates applicable to all or to each classification or category 13 of health care facilities and applicable to all or each type 14 of transaction for which a permit is required. Varying 15 effective dates may be set, providing the date or dates so 16 set shall apply uniformly statewide. 17 Notwithstanding any effective dates established by this 18 Act or by the State Board, no person shall be required to 19 obtain a permit for any purpose under this Act until the 20 State health facilities plan referred to in paragraph (4) of 21 Section 12 of this Act has been approved and adopted by the 22 State Board subsequent to public hearings having been held 23 thereon. 24 A permit or exemption shall be obtained prior to the 25 acquisition of major medical equipment or to the construction 26 or modification of a health care facility which: 27 (a) requires a total capital expenditure in excess 28 of the capital expenditure minimum; or 29 (b) substantially changes the scope or changes the 30 functional operation of the facility; or 31 (c) changes the bed capacity of a health care 32 facility by increasing the total number of beds or by 33 distributing beds among various categories of service or 34 by relocating beds from one physical facility or site to SB807 Enrolled -23- LRB9106074MWmb 1 another by more than 10 beds or more than 10% of total 2 bed capacity as defined by the State Board, whichever is 3 less, over a 2 year period. 4 A permit shall be valid only for the defined construction 5 or modifications, site, amount and person named in the 6 application for such permit and shall not be transferable or 7 assignable. A permit shall be valid until such time as the 8 project has been completed, provided that (a) obligation of 9 the project occurs within 12 months following issuance of the 10 permit except for major construction projects such obligation 11 must occur within 18 months following issuance of the permit; 12 and (b) the project commences and proceeds to completion with 13 due diligence. Major construction projects, for the purposes 14 of this Act, shall include but are not limited to: projects 15 for the construction of new buildings; additions to existing 16 facilities; modernization projects whose cost is in excess of 17 $1,000,000 or 10% of the facilities' operating revenue, 18 whichever is less; and such other projects as the State Board 19 shall define and prescribe pursuant to this Act. The State 20 Board may extend the obligation period upon a showing of good 21 cause by the permit holder. Permits for projects that have 22 not been obligated within the prescribed obligation period 23 shall expire on the last day of that period. 24 Persons who otherwise would be required to obtain a 25 permit shall be exempt from such requirement if the State 26 Board finds that with respect to establishing a new facility 27 or construction of new buildings or additions or 28 modifications to an existing facility, final plans and 29 specifications for such work have prior to October 1, 1974, 30 been submitted to and approved by the Department of Public 31 Health in accordance with the requirements of applicable 32 laws. Such exemptions shall be null and void after December 33 31, 1979 unless binding construction contracts were signed 34 prior to December 1, 1979 and unless construction has SB807 Enrolled -24- LRB9106074MWmb 1 commenced prior to December 31, 1979. Such exemptions shall 2 be valid until such time as the project has been completed 3 provided that the project proceeds to completion with due 4 diligence. 5 The acquisition by any person of major medical equipment 6 that will not be owned by or located in a health care 7 facility and that will not be used to provide services to 8 inpatients of a health care facility shall be exempt from 9 review provided that a notice is filed in accordance with 10 exemption requirements. 11 Notwithstanding any other provision of this Act, no 12 permit or exemption is required for the construction or 13 modification of a non-clinical service area of a health care 14 facility. 15 (Source: P.A. 88-18.) 16 (20 ILCS 3960/5.2 new) 17 Sec. 5.2. After the effective date of this amendatory 18 Act of the 91st General Assembly, no person shall establish, 19 construct, or modify an institution, place, building, or room 20 used for the performance of outpatient surgical procedures 21 that is leased, owned, or operated by or on behalf of an 22 out-of-state facility without first obtaining a permit from 23 the State Board. 24 (20 ILCS 3960/5.3 new) 25 Sec. 5.3. In addition to the State Board's authority to 26 require reports, the State Board shall require each health 27 care facility to submit an annual report of all capital 28 expenditures in excess of $200,000 (which shall be annually 29 adjusted to reflect the increase in construction costs due to 30 inflation) made by the health care facility during the most 31 recent year. This annual report shall consist of a brief 32 description of the capital expenditure, the amount and method SB807 Enrolled -25- LRB9106074MWmb 1 of financing the capital expenditure, the certificate of need 2 project number if the project was reviewed, and the total 3 amount of capital expenditures obligated for the year. 4 (20 ILCS 3960/19.5 new) 5 Sec. 19.5. Audit. Upon the effective date of this 6 amendatory Act of the 91st General Assembly, the Auditor 7 General must commence an audit of the State Board to 8 determine: 9 (1) whether the State Board can demonstrate that the 10 certificate of need process is successful in controlling 11 health care costs, allowing public access to necessary 12 health services, and guaranteeing the availability of 13 quality health care to the general public; 14 (2) whether the State Board is following its adopted 15 rules and procedures; 16 (3) whether the State Board is consistent in 17 awarding and denying certificates of need; and 18 (4) whether the State Board's annual reports reflect 19 a cost savings to the State. 20 The Auditor General must report on the results of the 21 audit to the General Assembly. 22 This Section is repealed when the Auditor General files 23 his or her report with the General Assembly. 24 (20 ILCS 3960/19.6 new) 25 Sec. 19.6. Repeal. This Act is repealed on July 1, 26 2003. 27 Section 20. The Illinois State Auditing Act is amended 28 by changing Section 3-1 as follows: 29 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1) 30 Sec. 3-1. Jurisdiction of Auditor General. The Auditor SB807 Enrolled -26- LRB9106074MWmb 1 General has jurisdiction over all State agencies to make post 2 audits and investigations authorized by or under this Act or 3 the Constitution. 4 The Auditor General has jurisdiction over local 5 government agencies and private agencies only: 6 (a) to make such post audits authorized by or under 7 this Act as are necessary and incidental to a post audit 8 of a State agency or of a program administered by a State 9 agency involving public funds of the State, but this 10 jurisdiction does not include any authority to review 11 local governmental agencies in the obligation, receipt, 12 expenditure or use of public funds of the State that are 13 granted without limitation or condition imposed by law, 14 other than the general limitation that such funds be used 15 for public purposes; 16 (b) to make investigations authorized by or under 17 this Act or the Constitution; and 18 (c) to make audits of the records of local 19 government agencies to verify actual costs of 20 state-mandated programs when directed to do so by the 21 Legislative Audit Commission at the request of the State 22 Board of Appeals under the State Mandates Act. 23 In addition to the foregoing, the Auditor General may 24 conduct an audit of the Metropolitan Pier and Exposition 25 Authority, the Regional Transportation Authority, the 26 Suburban Bus Division, the Commuter Rail Division and the 27 Chicago Transit Authority and any other subsidized carrier 28 when authorized by the Legislative Audit Commission. Such 29 audit may be a financial, management or program audit, or any 30 combination thereof. 31 The audit shall determine whether they are operating in 32 accordance with all applicable laws and regulations. Subject 33 to the limitations of this Act, the Legislative Audit 34 Commission may by resolution specify additional SB807 Enrolled -27- LRB9106074MWmb 1 determinations to be included in the scope of the audit. 2 The Auditor General may also conduct an audit, when 3 authorized by the Legislative Audit Commission, of any 4 hospital which receives 10% or more of its gross revenues 5 from payments from the State of Illinois, Department of 6 Public Aid, Medical Assistance Program. 7 The Auditor General is authorized to conduct financial 8 and compliance audits of the Illinois Distance Learning 9 Foundation and the Illinois Conservation Foundation. 10 As soon as practical after the effective date of this 11 amendatory Act of 1995, the Auditor General shall conduct a 12 compliance and management audit of the City of Chicago and 13 any other entity with regard to the operation of Chicago 14 O'Hare International Airport, Chicago Midway Airport and 15 Merrill C. Meigs Field. The audit shall include, but not be 16 limited to, an examination of revenues, expenses, and 17 transfers of funds; purchasing and contracting policies and 18 practices; staffing levels; and hiring practices and 19 procedures. When completed, the audit required by this 20 paragraph shall be distributed in accordance with Section 21 3-14. 22 The Auditor General shall conduct a financial and 23 compliance and program audit of distributions from the 24 Municipal Economic Development Fund during the immediately 25 preceding calendar year pursuant to Section 8-403.1 of the 26 Public Utilities Act at no cost to the city, village, or 27 incorporated town that received the distributions. 28 The Auditor General must conduct an audit of the Health 29 Facilities Planning Board pursuant to Section 19.5 of the 30 Illinois Health Facilities Planning Act. 31 (Source: P.A. 89-386, eff. 8-18-95; 90-813, eff. 1-29-99.) 32 Section 95. No acceleration or delay. Where this Act 33 makes changes in a statute that is represented in this Act by SB807 Enrolled -28- LRB9106074MWmb 1 text that is not yet or no longer in effect (for example, a 2 Section represented by multiple versions), the use of that 3 text does not accelerate or delay the taking effect of (i) 4 the changes made by this Act or (ii) provisions derived from 5 any other Public Act. 6 Section 99. Effective date. This Act takes effect upon 7 becoming law.