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91_SB0807eng SB807 Engrossed LRB9106074MWmb 1 AN ACT concerning health facility planning. 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 Engrossed -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 Engrossed -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 Engrossed -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, 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 Engrossed -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; and 16 5. Kidney disease treatment centers, including a 17 free-standing hemodialysis unit. 18 No federally owned facility shall be subject to the 19 provisions of this Act, nor facilities used solely for 20 healing by prayer or spiritual means. 21 No facility licensed under the Supportive Residences 22 Licensing Act shall be subject to the provisions of this Act. 23 A facility designated as a supportive living facility 24 that is in good standing with the demonstration project 25 established under Section 5-5.01a of the Illinois Public Aid 26 Code shall not be subject to the provisions of this Act. 27 This Act does not apply to facilities granted waivers 28 under Section 3-102.2 of the Nursing Home Care Act. However, 29 if a demonstration project under that Act applies for a 30 certificate of need to convert to a nursing facility, it 31 shall meet the licensure and certificate of need requirements 32 in effect as of the date of application. 33 With the exception of those health care facilities 34 specifically included in this Section, nothing in this Act SB807 Engrossed -6- LRB9106074MWmb 1 shall be intended to include facilities operated as a part of 2 the practice of a physician or other licensed health care 3 professional, whether practicing in his individual capacity 4 or within the legal structure of any partnership, medical or 5 professional corporation, or unincorporated medical or 6 professional group. Further, this Act shall not apply to 7 physicians or other licensed health care professional's 8 practices where such practices are carried out in a portion 9 of a health care facility under contract with such health 10 care facility by a physician or by other licensed health care 11 professionals, whether practicing in his individual capacity 12 or within the legal structure of any partnership, medical or 13 professional corporation, or unincorporated medical or 14 professional groups. This Act shall apply to construction or 15 modification and to establishment by such health care 16 facility of such contracted portion which is subject to 17 facility licensing requirements, irrespective of the party 18 responsible for such action or attendant financial 19 obligation. 20 "Person" means any one or more natural persons, legal 21 entities, governmental bodies other than federal, or any 22 combination thereof. 23 "Consumer" means any person other than a person (a) whose 24 major occupation currently involves or whose official 25 capacity within the last 12 months has involved the 26 providing, administering or financing of any type of health 27 care facility, (b) who is engaged in health research or the 28 teaching of health, (c) who has a material financial interest 29 in any activity which involves the providing, administering 30 or financing of any type of health care facility, or (d) who 31 is or ever has been a member of the immediate family of the 32 person defined by (a), (b), or (c). 33 "State Board" means the Health Facilities Planning Board. 34 "Construction or modification" means the establishment, SB807 Engrossed -7- LRB9106074MWmb 1 erection, building, alteration, reconstruction, 2 modernization, improvement, extension, discontinuation, 3 change of ownership, of or by a health care facility, or the 4 purchase or acquisition by or through a health care facility 5 of equipment or service for diagnostic or therapeutic 6 purposes or for facility administration or operation, or any 7 capital expenditure made by or on behalf of a health care 8 facility which exceeds the capital expenditure minimum. 9 "Establish" means the construction of a health care 10 facility or the replacement of an existing facility on 11 another site. 12 "Major medical equipment" means medical equipment which 13 is used for the provision of medical and other health 14 services and which costs in excess of the capital expenditure 15 minimum, except that such term does not include medical 16 equipment acquired by or on behalf of a clinical laboratory 17 to provide clinical laboratory services if the clinical 18 laboratory is independent of a physician's office and a 19 hospital and it has been determined under Title XVIII of the 20 Social Security Act to meet the requirements of paragraphs 21 (10) and (11) of Section 1861(s) of such Act. In determining 22 whether medical equipment has a value in excess of the 23 capital expenditure minimum, the value of studies, surveys, 24 designs, plans, working drawings, specifications, and other 25 activities essential to the acquisition of such equipment 26 shall be included. 27 "Capital Expenditure" means an expenditure: (A) made by 28 or on behalf of a health care facility (as such a facility is 29 defined in this Act); and (B) which under generally accepted 30 accounting principles is not properly chargeable as an 31 expense of operation and maintenance, or is made to obtain by 32 lease or comparable arrangement any facility or part thereof 33 or any equipment for a facility or part; and which exceeds 34 the capital expenditure minimum. SB807 Engrossed -8- LRB9106074MWmb 1 For the purpose of this paragraph, the cost of any 2 studies, surveys, designs, plans, working drawings, 3 specifications, and other activities essential to the 4 acquisition, improvement, expansion, or replacement of any 5 plant or equipment with respect to which an expenditure is 6 made shall be included in determining if such expenditure 7 exceeds the capital expenditures minimum. Donations of 8 equipment or facilities to a health care facility which if 9 acquired directly by such facility would be subject to review 10 under this Act shall be considered capital expenditures, and 11 a transfer of equipment or facilities for less than fair 12 market value shall be considered a capital expenditure for 13 purposes of this Act if a transfer of the equipment or 14 facilities at fair market value would be subject to review. 15 "Capital expenditure minimum" means $7,000,000$1,000,00016 for major medical equipment and$2,000,000 forall clinical 17othercapital expenditures,both ofwhich shall be annually 18 adjusted to reflect the increase in construction costs due to 19 inflation. 20 "Non-clinical service area" means an area for the benefit 21 of patients, visitors, staff, or employees of the health care 22 facility that is not directly related to the diagnosis, 23 treatment, or rehabilitation of persons receiving services 24 from the health care facility. "Non-clinical service areas" 25 include, but are not limited to, chapels; gift shops; news 26 stands; tunnels, walkways, and elevators; computer systems; 27 telephone systems; projects to comply with life safety codes; 28 educational facilities; student housing; patient, employee, 29 staff, and visitor dining areas; administration and volunteer 30 offices; modernization of structural components (such as roof 31 replacement and masonry work); boiler repair or replacement; 32 vehicle maintenance and storage facilities; parking 33 facilities; mechanical systems for heating, ventilation, and 34 air conditioning; loading docks; and repair or replacement of SB807 Engrossed -9- LRB9106074MWmb 1 carpeting, tile, wall coverings, window coverings or 2 treatments, or furniture. 3 "Areawide" means a major area of the State delineated on 4 a geographic, demographic, and functional basis for health 5 planning and for health service and having within it one or 6 more local areas for health planning and health service. The 7 term "region", as contrasted with the term "subregion", and 8 the word "area" may be used synonymously with the term 9 "areawide". 10 "Local" means a subarea of a delineated major area that 11 on a geographic, demographic, and functional basis may be 12 considered to be part of such major area. The term 13 "subregion" may be used synonymously with the term "local". 14 "Areawide health planning organization" or "Comprehensive 15 health planning organization" means the health systems agency 16 designated by the Secretary, Department of Health and Human 17 Services or any successor agency. 18 "Local health planning organization" means those local 19 health planning organizations that are designated as such by 20 the areawide health planning organization of the appropriate 21 area. 22 "Physician" means a person licensed to practice in 23 accordance with the Medical Practice Act of 1987, as amended. 24 "Licensed health care professional" means a person 25 licensed to practice a health profession under pertinent 26 licensing statutes of the State of Illinois. 27 "Director" means the Director of the Illinois Department 28 of Public Health. 29 "Agency" means the Illinois Department of Public Health. 30 "Comprehensive health planning" means health planning 31 concerned with the total population and all health and 32 associated problems that affect the well-being of people and 33 that encompasses health services, health manpower, and health 34 facilities; and the coordination among these and with those SB807 Engrossed -10- LRB9106074MWmb 1 social, economic, and environmental factors that affect 2 health. 3 "Alternative health care model" means a facility or 4 program authorized under the Alternative Health Care Delivery 5 Act. 6 (Source: P.A. 89-499, eff. 6-28-96; 89-530, eff. 7-19-96; 7 90-14, eff. 7-1-97.) 8 (Text of Section after amendment by P.A. 91-656) 9 Sec. 3. As used in this Act: 10 "Health care facilities" means and includes the following 11 facilities and organizations: 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 17 Licensing Act; 18 3. Skilled and intermediate long term care 19 facilities licensed under the Nursing Home Care Act; 20 4. Hospitals, nursing homes, ambulatory surgical 21 treatment centers, or kidney disease treatment centers 22 maintained by the State or any department or agency 23 thereof; and 24 5. Kidney disease treatment centers, including a 25 free-standing hemodialysis unit. 26 No federally owned facility shall be subject to the 27 provisions of this Act, nor facilities used solely for 28 healing by prayer or spiritual means. 29 No facility licensed under the Supportive Residences 30 Licensing Act or the Assisted Living and Shared Housing Act 31 shall be subject to the provisions of this Act. 32 A facility designated as a supportive living facility 33 that is in good standing with the demonstration project 34 established under Section 5-5.01a of the Illinois Public Aid SB807 Engrossed -11- LRB9106074MWmb 1 Code shall not be subject to the provisions of this Act. 2 This Act does not apply to facilities granted waivers 3 under Section 3-102.2 of the Nursing Home Care Act. However, 4 if a demonstration project under that Act applies for a 5 certificate of need to convert to a nursing facility, it 6 shall meet the licensure and certificate of need requirements 7 in effect as of the date of application. 8 This Act shall not apply to the closure of an entity or a 9 portion of an entity licensed under the Nursing Home Care Act 10 that elects to convert, in whole or in part, to an assisted 11 living or shared housing establishment licensed under the 12 Assisted Living and Shared Housing Establishment Act. 13 With the exception of those health care facilities 14 specifically included in this Section, nothing in this Act 15 shall be intended to include facilities operated as a part of 16 the practice of a physician or other licensed health care 17 professional, whether practicing in his individual capacity 18 or within the legal structure of any partnership, medical or 19 professional corporation, or unincorporated medical or 20 professional group. Further, this Act shall not apply to 21 physicians or other licensed health care professional's 22 practices where such practices are carried out in a portion 23 of a health care facility under contract with such health 24 care facility by a physician or by other licensed health care 25 professionals, whether practicing in his individual capacity 26 or within the legal structure of any partnership, medical or 27 professional corporation, or unincorporated medical or 28 professional groups. This Act shall apply to construction or 29 modification and to establishment by such health care 30 facility of such contracted portion which is subject to 31 facility licensing requirements, irrespective of the party 32 responsible for such action or attendant financial 33 obligation. 34 "Person" means any one or more natural persons, legal SB807 Engrossed -12- LRB9106074MWmb 1 entities, governmental bodies other than federal, or any 2 combination thereof. 3 "Consumer" means any person other than a person (a) whose 4 major occupation currently involves or whose official 5 capacity within the last 12 months has involved the 6 providing, administering or financing of any type of health 7 care facility, (b) who is engaged in health research or the 8 teaching of health, (c) who has a material financial interest 9 in any activity which involves the providing, administering 10 or financing of any type of health care facility, or (d) who 11 is or ever has been a member of the immediate family of the 12 person defined by (a), (b), or (c). 13 "State Board" means the Health Facilities Planning Board. 14 "Construction or modification" means the establishment, 15 erection, building, alteration, reconstruction, 16 modernization, improvement, extension, discontinuation, 17 change of ownership, of or by a health care facility, or the 18 purchase or acquisition by or through a health care facility 19 of equipment or service for diagnostic or therapeutic 20 purposes or for facility administration or operation, or any 21 capital expenditure made by or on behalf of a health care 22 facility which exceeds the capital expenditure minimum. 23 "Establish" means the construction of a health care 24 facility or the replacement of an existing facility on 25 another site. 26 "Major medical equipment" means medical equipment which 27 is used for the provision of medical and other health 28 services and which costs in excess of the capital expenditure 29 minimum, except that such term does not include medical 30 equipment acquired by or on behalf of a clinical laboratory 31 to provide clinical laboratory services if the clinical 32 laboratory is independent of a physician's office and a 33 hospital and it has been determined under Title XVIII of the 34 Social Security Act to meet the requirements of paragraphs SB807 Engrossed -13- LRB9106074MWmb 1 (10) and (11) of Section 1861(s) of such Act. In determining 2 whether medical equipment has a value in excess of the 3 capital expenditure minimum, the value of studies, surveys, 4 designs, plans, working drawings, specifications, and other 5 activities essential to the acquisition of such equipment 6 shall be included. 7 "Capital Expenditure" means an expenditure: (A) made by 8 or on behalf of a health care facility (as such a facility is 9 defined in this Act); and (B) which under generally accepted 10 accounting principles is not properly chargeable as an 11 expense of operation and maintenance, or is made to obtain by 12 lease or comparable arrangement any facility or part thereof 13 or any equipment for a facility or part; and which exceeds 14 the capital expenditure minimum. 15 For the purpose of this paragraph, the cost of any 16 studies, surveys, designs, plans, working drawings, 17 specifications, and other activities essential to the 18 acquisition, improvement, expansion, or replacement of any 19 plant or equipment with respect to which an expenditure is 20 made shall be included in determining if such expenditure 21 exceeds the capital expenditures minimum. Donations of 22 equipment or facilities to a health care facility which if 23 acquired directly by such facility would be subject to review 24 under this Act shall be considered capital expenditures, and 25 a transfer of equipment or facilities for less than fair 26 market value shall be considered a capital expenditure for 27 purposes of this Act if a transfer of the equipment or 28 facilities at fair market value would be subject to review. 29 "Capital expenditure minimum" means $7,000,000$1,000,00030 for major medical equipment and$2,000,000 forall clinical 31othercapital expenditures,both ofwhich shall be annually 32 adjusted to reflect the increase in construction costs due to 33 inflation. 34 "Non-clinical service area" means an area for the benefit SB807 Engrossed -14- LRB9106074MWmb 1 of patients, visitors, staff, or employees of the health care 2 facility that is not directly related to the diagnosis, 3 treatment, or rehabilitation of persons receiving services 4 from the health care facility. "Non-clinical service areas" 5 include, but are not limited to, chapels; gift shops; news 6 stands; tunnels, walkways, and elevators; computer systems; 7 telephone systems; projects to comply with life safety codes; 8 educational facilities; student housing; patient, employee, 9 staff, and visitor dining areas; administration and volunteer 10 offices; modernization of structural components (such as roof 11 replacement and masonry work); boiler repair or replacement; 12 vehicle maintenance and storage facilities; parking 13 facilities; mechanical systems for heating, ventilation, and 14 air conditioning; loading docks; and repair or replacement of 15 carpeting, tile, wall coverings, window coverings or 16 treatments, or furniture. 17 "Areawide" means a major area of the State delineated on 18 a geographic, demographic, and functional basis for health 19 planning and for health service and having within it one or 20 more local areas for health planning and health service. The 21 term "region", as contrasted with the term "subregion", and 22 the word "area" may be used synonymously with the term 23 "areawide". 24 "Local" means a subarea of a delineated major area that 25 on a geographic, demographic, and functional basis may be 26 considered to be part of such major area. The term 27 "subregion" may be used synonymously with the term "local". 28 "Areawide health planning organization" or "Comprehensive 29 health planning organization" means the health systems agency 30 designated by the Secretary, Department of Health and Human 31 Services or any successor agency. 32 "Local health planning organization" means those local 33 health planning organizations that are designated as such by 34 the areawide health planning organization of the appropriate SB807 Engrossed -15- LRB9106074MWmb 1 area. 2 "Physician" means a person licensed to practice in 3 accordance with the Medical Practice Act of 1987, as amended. 4 "Licensed health care professional" means a person 5 licensed to practice a health profession under pertinent 6 licensing statutes of the State of Illinois. 7 "Director" means the Director of the Illinois Department 8 of Public Health. 9 "Agency" means the Illinois Department of Public Health. 10 "Comprehensive health planning" means health planning 11 concerned with the total population and all health and 12 associated problems that affect the well-being of people and 13 that encompasses health services, health manpower, and health 14 facilities; and the coordination among these and with those 15 social, economic, and environmental factors that affect 16 health. 17 "Alternative health care model" means a facility or 18 program authorized under the Alternative Health Care Delivery 19 Act. 20 (Source: P.A. 90-14, eff. 7-1-97; 91-656, eff. 1-1-01.) 21 (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154) 22 Sec. 4. There is created the Health Facilities Planning 23 Board, which shall perform such functions as hereinafter 24 described in this Act. 25 The State Board shall consist of 15 voting members, 26 including: 8 consumer members; one member representing the 27 commercial health insurance industry in Illinois; one member 28 representingproprietaryhospitals in Illinois; one member 29 who is actively engaged in the field of hospital management; 30 one member who is a professional nurse registered in 31 Illinois; one member who is a physician in active private 32 practice licensed in Illinois to practice medicine in all of 33 its branches; one member who is actively engaged in the field SB807 Engrossed -16- LRB9106074MWmb 1 of skilled nursing or intermediate care facility management; 2 and one member who is actively engaged in the administration 3 of an ambulatory surgical treatment center licensed under the 4 Ambulatory Surgical Treatment Center Act. 5 The State Board shall be appointed by the Governor, with 6 the advice and consent of the Senate. In making the 7 appointments, the Governor shall give consideration to 8 recommendations made by (1) the professional organizations 9 concerned with hospital management for the hospital 10 management appointment, (2) professional organizations 11 concerned with long term care facility management for the 12 long term care facility management appointment, (3) 13 professional medical organizations for the physician 14 appointment, (4) professional nursing organizations for the 15 nurse appointment, and (5) professional organizations 16 concerned with ambulatory surgical treatment centers for the 17 ambulatory surgical treatment center appointment, and shall 18 appoint as consumer members individuals familiar with 19 community health needs but whose interest in the operation, 20 construction or utilization of health care facilities are 21 derived from factors other than those related to his 22 profession, business, or economic gain, and who represent, so 23 far as possible, different geographic areas of the State. Not 24 more than 8 of the appointments shall be of the same 25 political party. 26 The Secretary of Human Services, the Director of Public 27 Aid, and the Director of Public Health, or their designated 28 representatives, shall serve as ex-officio, non-voting 29 members of the State Board. 30 Of those appointed by the Governor as voting members, 31 each member shall hold office for a term of 3 years: 32 provided, that any member appointed to fill a vacancy 33 occurring prior to the expiration of the term for which his 34 predecessor was appointed shall be appointed for the SB807 Engrossed -17- LRB9106074MWmb 1 remainder of such term and the term of office of each 2 successor shall commence on July 1 of the year in which his 3 predecessor's term expires. In making original appointments 4 to the State Board, the Governor shall appoint 5 members for 5 a term of one year, 5 for a term of 2 years, and 3 for a term 6 of 3 years, and each of these terms of office shall commence 7 on July 1, 1974. The initial term of office for the members 8 appointed under this amendatory Act of 1996 shall begin on 9 July 1, 1996 and shall last for 2 years, and each subsequent 10 appointment shall be for a term of 3 years. Each member 11 shall hold office until his successor is appointed and 12 qualified. 13 State Board members, while serving on business of the 14 State Board, shall receive actual and necessary travel and 15 subsistence expenses while so serving away from their places 16 of residence. In addition, while serving on business of the 17 State Board, each member shall receive compensation of $150 18 per day, except that such compensation shall not exceed 19 $7,500 in any one year for any member. 20 The State Board shall provide for its own organization 21 and procedures, including the selection of a Chairman and 22 such other officers as deemed necessary. The Director, with 23 concurrence of the State Board, shall name as full-time 24 Executive Secretary of the State Board, a person qualified in 25 health care facility planning and in administration. The 26 Agency shall provide administrative and staff support for the 27 State Board. The State Board shall advise the Director of 28 its budgetary and staff needs and consult with the Director 29 on annual budget preparation. 30 The State Board shall meet at least once each quarter, or 31 as often as the Chairman of the State Board deems necessary, 32 or upon the request of a majority of the members. 33 Eight members of the State Board shall constitute a 34 quorum. The affirmative vote of 8 of the members of the SB807 Engrossed -18- LRB9106074MWmb 1 State Board shall be necessary for any action requiring a 2 vote to be taken by the State Board. A vacancy in the 3 membership of the State Board shall not impair the right of a 4 quorum to exercise all the rights and perform all the duties 5 of the State Board as provided by this Act. 6 (Source: P.A. 89-674, eff. 8-14-96; 90-14, eff. 7-1-97.) 7 (20 ILCS 3960/4.1 new) 8 Sec. 4.1. Ethics laws. 9 (a) All State Board meetings are subject to the Open 10 Meetings Act. 11 (b) The State Board is subject to the State Gift Ban Act. 12 (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155) 13 Sec. 5. After effective dates set by the State Board, 14 no person shall construct, modify or establish a health care 15 facility or acquire major medical equipment without first 16 obtaining a permit or exemption from the State Board. The 17 State Board shall not delegate to the Executive Secretary of 18 the State Board or any other person or entity the authority 19 to grant permits or exemptions whenever the Executive 20 Secretary or other person or entity would be required to 21 exercise any discretion affecting the decision to grant a 22 permit or exemption. The State Board shall set effective 23 dates applicable to all or to each classification or category 24 of health care facilities and applicable to all or each type 25 of transaction for which a permit is required. Varying 26 effective dates may be set, providing the date or dates so 27 set shall apply uniformly statewide. 28 Notwithstanding any effective dates established by this 29 Act or by the State Board, no person shall be required to 30 obtain a permit for any purpose under this Act until the 31 State health facilities plan referred to in paragraph (4) of 32 Section 12 of this Act has been approved and adopted by the SB807 Engrossed -19- LRB9106074MWmb 1 State Board subsequent to public hearings having been held 2 thereon. 3 A permit or exemption shall be obtained prior to the 4 acquisition of major medical equipment or to the construction 5 or modification of a health care facility which: 6 (a) requires a total capital expenditure in excess 7 of the capital expenditure minimum; or 8 (b) substantially changes the scope or changes the 9 functional operation of the facility; or 10 (c) changes the bed capacity of a health care 11 facility by increasing the total number of beds or by 12 distributing beds among various categories of service or 13 by relocating beds from one physical facility or site to 14 another by more than 10 beds or more than 10% of total 15 bed capacity as defined by the State Board, whichever is 16 less, over a 2 year period. 17 A permit shall be valid only for the defined construction 18 or modifications, site, amount and person named in the 19 application for such permit and shall not be transferable or 20 assignable. A permit shall be valid until such time as the 21 project has been completed, provided that (a) obligation of 22 the project occurs within 12 months following issuance of the 23 permit except for major construction projects such obligation 24 must occur within 18 months following issuance of the permit; 25 and (b) the project commences and proceeds to completion with 26 due diligence. Major construction projects, for the purposes 27 of this Act, shall include but are not limited to: projects 28 for the construction of new buildings; additions to existing 29 facilities; modernization projects whose cost is in excess of 30 $1,000,000 or 10% of the facilities' operating revenue, 31 whichever is less; and such other projects as the State Board 32 shall define and prescribe pursuant to this Act. The State 33 Board may extend the obligation period upon a showing of good 34 cause by the permit holder. Permits for projects that have SB807 Engrossed -20- LRB9106074MWmb 1 not been obligated within the prescribed obligation period 2 shall expire on the last day of that period. 3 Persons who otherwise would be required to obtain a 4 permit shall be exempt from such requirement if the State 5 Board finds that with respect to establishing a new facility 6 or construction of new buildings or additions or 7 modifications to an existing facility, final plans and 8 specifications for such work have prior to October 1, 1974, 9 been submitted to and approved by the Department of Public 10 Health in accordance with the requirements of applicable 11 laws. Such exemptions shall be null and void after December 12 31, 1979 unless binding construction contracts were signed 13 prior to December 1, 1979 and unless construction has 14 commenced prior to December 31, 1979. Such exemptions shall 15 be valid until such time as the project has been completed 16 provided that the project proceeds to completion with due 17 diligence. 18 The acquisition by any person of major medical equipment 19 that will not be owned by or located in a health care 20 facility and that will not be used to provide services to 21 inpatients of a health care facility shall be exempt from 22 review provided that a notice is filed in accordance with 23 exemption requirements. 24 Notwithstanding any other provision of this Act, no 25 permit or exemption is required for the construction or 26 modification of a non-clinical service area of a health care 27 facility. 28 (Source: P.A. 88-18.) 29 (20 ILCS 3960/19.5 new) 30 Sec. 19.5. Audit. Upon the effective date of this 31 amendatory Act of the 91st General Assembly, the Auditor 32 General must commence an audit of the State Board to 33 determine: SB807 Engrossed -21- LRB9106074MWmb 1 (1) whether the State Board can demonstrate that the 2 certificate of need process is successful in controlling 3 health care costs, allowing public access to necessary 4 health services, and guaranteeing the availability of 5 quality health care to the general public; 6 (2) whether the State Board is following its adopted 7 rules and procedures; 8 (3) whether the State Board is consistent in 9 awarding and denying certificates of need; and 10 (4) whether the State Board's annual reports reflect 11 a cost savings to the State. 12 The Auditor General must report on the results of the 13 audit to the General Assembly upon completion. 14 This Section is repealed when the Auditor General files 15 his or her report with the General Assembly. 16 (20 ILCS 3960/19.6 new) 17 Sec. 19.6. Repeal. This Act is repealed on July 1, 18 2003. 19 Section 20. The Illinois State Auditing Act is amended 20 by changing Section 3-1 as follows: 21 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1) 22 Sec. 3-1. Jurisdiction of Auditor General. The Auditor 23 General has jurisdiction over all State agencies to make post 24 audits and investigations authorized by or under this Act or 25 the Constitution. 26 The Auditor General has jurisdiction over local 27 government agencies and private agencies only: 28 (a) to make such post audits authorized by or under 29 this Act as are necessary and incidental to a post audit 30 of a State agency or of a program administered by a State 31 agency involving public funds of the State, but this SB807 Engrossed -22- LRB9106074MWmb 1 jurisdiction does not include any authority to review 2 local governmental agencies in the obligation, receipt, 3 expenditure or use of public funds of the State that are 4 granted without limitation or condition imposed by law, 5 other than the general limitation that such funds be used 6 for public purposes; 7 (b) to make investigations authorized by or under 8 this Act or the Constitution; and 9 (c) to make audits of the records of local 10 government agencies to verify actual costs of 11 state-mandated programs when directed to do so by the 12 Legislative Audit Commission at the request of the State 13 Board of Appeals under the State Mandates Act. 14 In addition to the foregoing, the Auditor General may 15 conduct an audit of the Metropolitan Pier and Exposition 16 Authority, the Regional Transportation Authority, the 17 Suburban Bus Division, the Commuter Rail Division and the 18 Chicago Transit Authority and any other subsidized carrier 19 when authorized by the Legislative Audit Commission. Such 20 audit may be a financial, management or program audit, or any 21 combination thereof. 22 The audit shall determine whether they are operating in 23 accordance with all applicable laws and regulations. Subject 24 to the limitations of this Act, the Legislative Audit 25 Commission may by resolution specify additional 26 determinations to be included in the scope of the audit. 27 The Auditor General may also conduct an audit, when 28 authorized by the Legislative Audit Commission, of any 29 hospital which receives 10% or more of its gross revenues 30 from payments from the State of Illinois, Department of 31 Public Aid, Medical Assistance Program. 32 The Auditor General is authorized to conduct financial 33 and compliance audits of the Illinois Distance Learning 34 Foundation and the Illinois Conservation Foundation. SB807 Engrossed -23- LRB9106074MWmb 1 As soon as practical after the effective date of this 2 amendatory Act of 1995, the Auditor General shall conduct a 3 compliance and management audit of the City of Chicago and 4 any other entity with regard to the operation of Chicago 5 O'Hare International Airport, Chicago Midway Airport and 6 Merrill C. Meigs Field. The audit shall include, but not be 7 limited to, an examination of revenues, expenses, and 8 transfers of funds; purchasing and contracting policies and 9 practices; staffing levels; and hiring practices and 10 procedures. When completed, the audit required by this 11 paragraph shall be distributed in accordance with Section 12 3-14. 13 The Auditor General shall conduct a financial and 14 compliance and program audit of distributions from the 15 Municipal Economic Development Fund during the immediately 16 preceding calendar year pursuant to Section 8-403.1 of the 17 Public Utilities Act at no cost to the city, village, or 18 incorporated town that received the distributions. 19 The Auditor General must conduct an audit of the Health 20 Facilities Planning Board pursuant to Section 19.5 of the 21 Illinois Health Facilities Planning Act. 22 (Source: P.A. 89-386, eff. 8-18-95; 90-813, eff. 1-29-99.) 23 Section 95. No acceleration or delay. Where this Act 24 makes changes in a statute that is represented in this Act by 25 text that is not yet or no longer in effect (for example, a 26 Section represented by multiple versions), the use of that 27 text does not accelerate or delay the taking effect of (i) 28 the changes made by this Act or (ii) provisions derived from 29 any other Public Act. 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.