Public Act 097-1115
 
SB2934 EnrolledLRB097 18443 PJG 63670 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Health Facilities Planning Act is
amended by changing Sections 4, 5, 6, 10, 12, 12.5, and 14.1
and adding Sections 6.2 and 19.5.1 as follows:
 
    (20 ILCS 3960/4)  (from Ch. 111 1/2, par. 1154)
    (Section scheduled to be repealed on December 31, 2019)
    Sec. 4. Health Facilities and Services Review Board;
membership; appointment; term; compensation; quorum.
Notwithstanding any other provision in this Section, members of
the State Board holding office on the day before the effective
date of this amendatory Act of the 96th General Assembly shall
retain their authority.
    (a) There is created the Health Facilities and Services
Review Board, which shall perform the functions described in
this Act. The Department shall provide operational support to
the Board, including the provision of office space, supplies,
and clerical, financial, and accounting services. The Board may
contract with experts related to specific health services or
facilities and create technical advisory panels to assist in
the development of criteria, standards, and procedures used in
the evaluation of applications for permit and exemption.
    (b) Beginning March 1, 2010, the State Board shall consist
of 9 voting members. All members shall be residents of Illinois
and at least 4 shall reside outside the Chicago Metropolitan
Statistical Area. Consideration shall be given to potential
appointees who reflect the ethnic and cultural diversity of the
State. Neither Board members nor Board staff shall be convicted
felons or have pled guilty to a felony.
    Each member shall have a reasonable knowledge of the
practice, procedures and principles of the health care delivery
system in Illinois, including at least 5 members who shall be
knowledgeable about health care delivery systems, health
systems planning, finance, or the management of health care
facilities currently regulated under the Act. One member shall
be a representative of a non-profit health care consumer
advocacy organization. A spouse, parent, sibling, or child
Spouses or other members of the immediate family of a the Board
member cannot be an employee, agent, or under contract with
services or facilities subject to the Act. Prior to appointment
and in the course of service on the Board, members of the Board
shall disclose the employment or other financial interest of
any other relative of the member, if known, in service or
facilities subject to the Act. Members of the Board shall
declare any conflict of interest that may exist with respect to
the status of those relatives and recuse themselves from voting
on any issue for which a conflict of interest is declared. No
person shall be appointed or continue to serve as a member of
the State Board who is, or whose spouse, parent, sibling, or
child is, a member of the Board of Directors of, has a
financial interest in, or has a business relationship with a
health care facility.
    Notwithstanding any provision of this Section to the
contrary, the term of office of each member of the State Board
serving on the day before the effective date of this amendatory
Act of the 96th General Assembly is abolished on the date upon
which members of the 9-member Board, as established by this
amendatory Act of the 96th General Assembly, have been
appointed and can begin to take action as a Board. Members of
the State Board serving on the day before the effective date of
this amendatory Act of the 96th General Assembly may be
reappointed to the 9-member Board. Prior to March 1, 2010, the
Health Facilities Planning Board shall establish a plan to
transition its powers and duties to the Health Facilities and
Services Review Board.
    (c) The State Board shall be appointed by the Governor,
with the advice and consent of the Senate. Not more than 5 of
the appointments shall be of the same political party at the
time of the appointment.
    The Secretary of Human Services, the Director of Healthcare
and Family Services, and the Director of Public Health, or
their designated representatives, shall serve as ex-officio,
non-voting members of the State Board.
    (d) Of those 9 members initially appointed by the Governor
following the effective date of this amendatory Act of the 96th
General Assembly, 3 shall serve for terms expiring July 1,
2011, 3 shall serve for terms expiring July 1, 2012, and 3
shall serve for terms expiring July 1, 2013. Thereafter, each
appointed member shall hold office for a term of 3 years,
provided that any member appointed to fill a vacancy occurring
prior to the expiration of the term for which his or her
predecessor was appointed shall be appointed for the remainder
of such term and the term of office of each successor shall
commence on July 1 of the year in which his predecessor's term
expires. Each member appointed after the effective date of this
amendatory Act of the 96th General Assembly shall hold office
until his or her successor is appointed and qualified. The
Governor may reappoint a member for additional terms, but no
member shall serve more than 3 terms, subject to review and
re-approval every 3 years.
    (e) State Board members, while serving on business of the
State Board, shall receive actual and necessary travel and
subsistence expenses while so serving away from their places of
residence. Until March 1, 2010, a member of the State Board who
experiences a significant financial hardship due to the loss of
income on days of attendance at meetings or while otherwise
engaged in the business of the State Board may be paid a
hardship allowance, as determined by and subject to the
approval of the Governor's Travel Control Board.
    (f) The Governor shall designate one of the members to
serve as the Chairman of the Board, who shall be a person with
expertise in health care delivery system planning, finance or
management of health care facilities that are regulated under
the Act. The Chairman shall annually review Board member
performance and shall report the attendance record of each
Board member to the General Assembly.
    (g) The State Board, through the Chairman, shall prepare a
separate and distinct budget approved by the General Assembly
and shall hire and supervise its own professional staff
responsible for carrying out the responsibilities of the Board.
    (h) The State Board shall meet at least every 45 days, or
as often as the Chairman of the State Board deems necessary, or
upon the request of a majority of the members.
    (i) Five members of the State Board shall constitute a
quorum. The affirmative vote of 5 of the members of the State
Board shall be necessary for any action requiring a vote to be
taken by the State Board. A vacancy in the membership of the
State Board shall not impair the right of a quorum to exercise
all the rights and perform all the duties of the State Board as
provided by this Act.
    (j) A State Board member shall disqualify himself or
herself from the consideration of any application for a permit
or exemption in which the State Board member or the State Board
member's spouse, parent, sibling, or child: (i) has an economic
interest in the matter; or (ii) is employed by, serves as a
consultant for, or is a member of the governing board of the
applicant or a party opposing the application.
    (k) The Chairman, Board members, and Board staff must
comply with the Illinois Governmental Ethics Act.
(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.)
 
    (20 ILCS 3960/5)  (from Ch. 111 1/2, par. 1155)
    (Section scheduled to be repealed on December 31, 2019)
    Sec. 5. Construction, modification, or establishment of
health care facilities or acquisition of major medical
equipment; permits or exemptions. No person shall construct,
modify or establish a health care facility or acquire major
medical equipment without first obtaining a permit or exemption
from the State Board. The State Board shall not delegate to the
staff of the State Board or any other person or entity the
authority to grant permits or exemptions whenever the staff or
other person or entity would be required to exercise any
discretion affecting the decision to grant a permit or
exemption. The State Board may, by rule, delegate authority to
the Chairman to grant permits or exemptions when applications
meet all of the State Board's review criteria and are
unopposed.
    A permit or exemption shall be obtained prior to the
acquisition of major medical equipment or to the construction
or modification of a health care facility which:
        (a) requires a total capital expenditure in excess of
    the capital expenditure minimum; or
        (b) substantially changes the scope or changes the
    functional operation of the facility; or
        (c) changes the bed capacity of a health care facility
    by increasing the total number of beds or by distributing
    beds among various categories of service or by relocating
    beds from one physical facility or site to another by more
    than 20 beds or more than 10% of total bed capacity as
    defined by the State Board, whichever is less, over a 2
    year period.
    A permit shall be valid only for the defined construction
or modifications, site, amount and person named in the
application for such permit and shall not be transferable or
assignable. A permit shall be valid until such time as the
project has been completed, provided that (a) obligation of the
project occurs within 12 months following issuance of the
permit except for major construction projects such obligation
must occur within 18 months following issuance of the permit;
and (b) the project commences and proceeds to completion with
due diligence by the completion date or extension date approved
by the Board.
    A permit holder must do the following: (i) submit the final
completion and cost report for the project within 90 days after
the approved project completion date or extension date and (ii)
submit annual progress reports no earlier than 30 days before
and no later than 30 days after each anniversary date of the
Board's approval of the permit until the project is completed.
To maintain a valid permit and to monitor progress toward
project commencement and completion, routine post-permit
reports shall be limited to annual progress reports and the
final completion and cost report. Annual progress reports shall
include information regarding the committed funds expended
toward the approved project. If the project is not completed in
one year, then, by the second annual report, the permit holder
shall expend 33% or more of the total project cost or shall
make a commitment to expend 33% or more of the total project
cost by signed contracts or other legal means, and the report
shall contain information regarding those expenditures or
commitments. If the project is to be completed in one year,
then the first annual report shall contain the expenditure
commitment information for the total project cost. The State
Board may extend the expenditure commitment period after
considering a permit holder's showing of good cause and request
for additional time to complete the project.
    The Certificate of Need process required under this Act is
designed to restrain rising health care costs by preventing
unnecessary construction or modification of health care
facilities. The Board must assure that the establishment,
construction, or modification of a health care facility or the
acquisition of major medical equipment is consistent with the
public interest and that the proposed project is consistent
with the orderly and economic development or acquisition of
those facilities and equipment and is in accord with the
standards, criteria, or plans of need adopted and approved by
the Board. Board decisions regarding the construction of health
care facilities must consider capacity, quality, value, and
equity. Projects may deviate from the costs, fees, and expenses
provided in their project cost information for the project's
cost components, provided that the final total project cost
does not exceed the approved permit amount. Project alterations
shall not increase the total approved permit amount by more
than the limit set forth under the Board's rules.
    Major construction projects, for the purposes of this Act,
shall include but are not limited to: projects for the
construction of new buildings; additions to existing
facilities; modernization projects whose cost is in excess of
$1,000,000 or 10% of the facilities' operating revenue,
whichever is less; and such other projects as the State Board
shall define and prescribe pursuant to this Act.
    The State Board may extend the obligation period upon a
showing of good cause by the permit holder. Permits for
projects that have not been obligated within the prescribed
obligation period shall expire on the last day of that period.
    The acquisition by any person of major medical equipment
that will not be owned by or located in a health care facility
and that will not be used to provide services to inpatients of
a health care facility shall be exempt from review provided
that a notice is filed in accordance with exemption
requirements.
    Notwithstanding any other provision of this Act, no permit
or exemption is required for the construction or modification
of a non-clinical service area of a health care facility.
(Source: P.A. 96-31, eff. 6-30-09.)
 
    (20 ILCS 3960/6)  (from Ch. 111 1/2, par. 1156)
    (Section scheduled to be repealed on December 31, 2019)
    Sec. 6. Application for permit or exemption; exemption
regulations.
    (a) An application for a permit or exemption shall be made
to the State Board upon forms provided by the State Board. This
application shall contain such information as the State Board
deems necessary. The State Board shall not require an applicant
to file a Letter of Intent before an application is filed. Such
application shall include affirmative evidence on which the
State Board or Chairman may make its decision on the approval
or denial of the permit or exemption.
    (b) The State Board shall establish by regulation the
procedures and requirements regarding issuance of exemptions.
An exemption shall be approved when information required by the
Board by rule is submitted. Projects eligible for an exemption,
rather than a permit, include, but are not limited to, change
of ownership of a health care facility. For a change of
ownership of a health care facility between related persons,
the State Board shall provide by rule for an expedited process
for obtaining an exemption. In connection with a change of
ownership, the State Board may approve the transfer of an
existing permit without regard to whether the permit to be
transferred has yet been obligated, except for permits
establishing a new facility or a new category of service.
    (c) All applications shall be signed by the applicant and
shall be verified by any 2 officers thereof.
    (c-5) Any written review or findings of the Board staff or
any other reviewing organization under Section 8 concerning an
application for a permit must be made available to the public
at least 14 calendar days before the meeting of the State Board
at which the review or findings are considered. The applicant
and members of the public may submit, to the State Board,
written responses regarding the facts set forth in the review
or findings of the Board staff or reviewing organization.
Members of the public shall have until 10 days before the
meeting of the State Board to submit any written response
concerning the Board staff's written review or findings at
least 10 days before the meeting of the State Board. The Board
staff may revise any findings to address corrections of factual
errors cited in the public response. At the meeting, the State
Board may, in its discretion, permit the submission of other
additional written materials.
    (d) Upon receipt of an application for a permit, the State
Board shall approve and authorize the issuance of a permit if
it finds (1) that the applicant is fit, willing, and able to
provide a proper standard of health care service for the
community with particular regard to the qualification,
background and character of the applicant, (2) that economic
feasibility is demonstrated in terms of effect on the existing
and projected operating budget of the applicant and of the
health care facility; in terms of the applicant's ability to
establish and operate such facility in accordance with
licensure regulations promulgated under pertinent state laws;
and in terms of the projected impact on the total health care
expenditures in the facility and community, (3) that safeguards
are provided which assure that the establishment, construction
or modification of the health care facility or acquisition of
major medical equipment is consistent with the public interest,
and (4) that the proposed project is consistent with the
orderly and economic development of such facilities and
equipment and is in accord with standards, criteria, or plans
of need adopted and approved pursuant to the provisions of
Section 12 of this Act.
(Source: P.A. 95-237, eff. 1-1-08; 96-31, eff. 6-30-09.)
 
    (20 ILCS 3960/6.2 new)
    Sec. 6.2. Review of permits. Upon receipt of an application
for a permit to establish, construct, or modify a health care
facility, the State Board staff shall notify the applicant in
writing within 10 working days either that the application is
or is not complete. If the application is complete, the State
Board staff shall notify the applicant of the beginning of the
review process. If the application is not complete, the Board
staff shall explain within the 10-day period why the
application is incomplete.
    The State Board staff shall afford a reasonable amount of
time as established by the State Board, but not to exceed 120
days, for the review of the application. The 120-day period
begins on the day the application is found to be substantially
complete, as that term is defined by the State Board. During
the 120-day period, the applicant may request an extension. An
applicant may modify the application at any time before a final
administrative decision has been made on the application. The
State Board shall prescribe and provide the forms upon which
the review and findings of the State Board staff shall be made.
The State Board staff shall submit its review and findings to
the State Board for its approval or denial of the permit.
    When an application for a permit is initially reviewed by
State Board staff, as provided in this Section, the State Board
shall, upon request by the applicant or an interested person,
afford an opportunity for a public hearing within a reasonable
amount of time after receipt of the complete application, but
not to exceed 90 days after receipt of the complete
application. Notice of the hearing shall be made promptly, not
less than 10 days before the hearing, by certified mail to the
applicant and, not less than 10 days before the hearing, by
publication in a newspaper of general circulation in the area
or community to be affected. The hearing shall be held in the
area or community in which the proposed project is to be
located and shall be for the purpose of allowing the applicant
and any interested person to present public testimony
concerning the approval, denial, renewal, or revocation of the
permit. All interested persons attending the hearing shall be
given a reasonable opportunity to present their views or
arguments in writing or orally, and a record of all of the
testimony shall accompany any findings of the State Board
staff. The State Board shall adopt reasonable rules and
regulations governing the procedure and conduct of the
hearings.
 
    (20 ILCS 3960/10)  (from Ch. 111 1/2, par. 1160)
    (Section scheduled to be repealed on December 31, 2019)
    Sec. 10. Presenting information relevant to the approval of
a permit or certificate or in opposition to the denial of the
application; notice of outcome and review proceedings. When a
motion by the State Board, to approve an application for a
permit or a certificate of recognition, fails to pass, or when
a motion to deny an application for a permit or a certificate
of recognition is passed, the applicant or the holder of the
permit, as the case may be, and such other parties as the State
Board permits, will be given an opportunity to appear before
the State Board and present such information as may be relevant
to the approval of a permit or certificate or in opposition to
the denial of the application.
    Subsequent to an appearance by the applicant before the
State Board or default of such opportunity to appear, a motion
by the State Board to approve an application for a permit or a
certificate of recognition which fails to pass or a motion to
deny an application for a permit or a certificate of
recognition which passes shall be considered denial of the
application for a permit or certificate of recognition, as the
case may be. Such action of denial or an action by the State
Board to revoke a permit or a certificate of recognition shall
be communicated to the applicant or holder of the permit or
certificate of recognition. Such person or organization shall
be afforded an opportunity for a hearing before an
administrative law judge a hearing officer, who is appointed by
the Chairman of the State Board Director. A written notice of a
request for such hearing shall be served upon the Chairman of
the State Board within 30 days following notification of the
decision of the State Board. The State Board shall schedule a
hearing, and the Director shall appoint a hearing officer
within 30 days thereafter. The administrative law judge hearing
officer shall take actions necessary to ensure that the hearing
is completed within a reasonable period of time, but not to
exceed 120 90 days, except for delays or continuances agreed to
by the person requesting the hearing. Following its
consideration of the report of the hearing, or upon default of
the party to the hearing, the State Board shall make its final
determination, specifying its findings and conclusions within
90 45 days of receiving the written report of the hearing. A
copy of such determination shall be sent by certified mail or
served personally upon the party.
    A full and complete record shall be kept of all
proceedings, including the notice of hearing, complaint, and
all other documents in the nature of pleadings, written motions
filed in the proceedings, and the report and orders of the
State Board or hearing officer. All testimony shall be reported
but need not be transcribed unless the decision is appealed in
accordance with the Administrative Review Law, as now or
hereafter amended. A copy or copies of the transcript may be
obtained by any interested party on payment of the cost of
preparing such copy or copies.
    The State Board or hearing officer shall upon its own or
his motion, or on the written request of any party to the
proceeding who has, in the State Board's or hearing officer's
opinion, demonstrated the relevancy of such request to the
outcome of the proceedings, issue subpoenas requiring the
attendance and the giving of testimony by witnesses, and
subpoenas duces tecum requiring the production of books,
papers, records, or memoranda. The fees of witnesses for
attendance and travel shall be the same as the fees of
witnesses before the circuit court of this State.
    When the witness is subpoenaed at the instance of the State
Board, or its hearing officer, such fees shall be paid in the
same manner as other expenses of the Agency, and when the
witness is subpoenaed at the instance of any other party to any
such proceeding the State Board may, in accordance with the
rules of the Agency, require that the cost of service of the
subpoena or subpoena duces tecum and the fee of the witness be
borne by the party at whose instance the witness is summoned.
In such case, the State Board in its discretion, may require a
deposit to cover the cost of such service and witness fees. A
subpoena or subpoena duces tecum so issued shall be served in
the same manner as a subpoena issued out of a court.
    Any circuit court of this State upon the application of the
State Board or upon the application of any other party to the
proceeding, may, in its discretion, compel the attendance of
witnesses, the production of books, papers, records, or
memoranda and the giving of testimony before it or its hearing
officer conducting an investigation or holding a hearing
authorized by this Act, by an attachment for contempt, or
otherwise, in the same manner as production of evidence may be
compelled before the court.
(Source: P.A. 93-41, eff. 6-27-03.)
 
    (20 ILCS 3960/12)  (from Ch. 111 1/2, par. 1162)
    (Section scheduled to be repealed on December 31, 2019)
    Sec. 12. Powers and duties of State Board. For purposes of
this Act, the State Board shall exercise the following powers
and duties:
    (1) Prescribe rules, regulations, standards, criteria,
procedures or reviews which may vary according to the purpose
for which a particular review is being conducted or the type of
project reviewed and which are required to carry out the
provisions and purposes of this Act. Policies and procedures of
the State Board shall take into consideration the priorities
and needs of medically underserved areas and other health care
services identified through the comprehensive health planning
process, giving special consideration to the impact of projects
on access to safety net services.
    (2) Adopt procedures for public notice and hearing on all
proposed rules, regulations, standards, criteria, and plans
required to carry out the provisions of this Act.
    (3) (Blank).
    (4) Develop criteria and standards for health care
facilities planning, conduct statewide inventories of health
care facilities, maintain an updated inventory on the Board's
web site reflecting the most recent bed and service changes and
updated need determinations when new census data become
available or new need formulae are adopted, and develop health
care facility plans which shall be utilized in the review of
applications for permit under this Act. Such health facility
plans shall be coordinated by the Board with pertinent State
Plans. Inventories pursuant to this Section of skilled or
intermediate care facilities licensed under the Nursing Home
Care Act, skilled or intermediate care facilities licensed
under the ID/DD Community Care Act, facilities licensed under
the Specialized Mental Health Rehabilitation Act, or nursing
homes licensed under the Hospital Licensing Act shall be
conducted on an annual basis no later than July 1 of each year
and shall include among the information requested a list of all
services provided by a facility to its residents and to the
community at large and differentiate between active and
inactive beds.
    In developing health care facility plans, the State Board
shall consider, but shall not be limited to, the following:
        (a) The size, composition and growth of the population
    of the area to be served;
        (b) The number of existing and planned facilities
    offering similar programs;
        (c) The extent of utilization of existing facilities;
        (d) The availability of facilities which may serve as
    alternatives or substitutes;
        (e) The availability of personnel necessary to the
    operation of the facility;
        (f) Multi-institutional planning and the establishment
    of multi-institutional systems where feasible;
        (g) The financial and economic feasibility of proposed
    construction or modification; and
        (h) In the case of health care facilities established
    by a religious body or denomination, the needs of the
    members of such religious body or denomination may be
    considered to be public need.
    The health care facility plans which are developed and
adopted in accordance with this Section shall form the basis
for the plan of the State to deal most effectively with
statewide health needs in regard to health care facilities.
    (5) Coordinate with the Center for Comprehensive Health
Planning and other state agencies having responsibilities
affecting health care facilities, including those of licensure
and cost reporting. Beginning no later than January 1, 2013,
the Department of Public Health shall produce a written annual
report to the Governor and the General Assembly regarding the
development of the Center for Comprehensive Health Planning.
The Chairman of the State Board and the State Board
Administrator shall also receive a copy of the annual report.
    (6) Solicit, accept, hold and administer on behalf of the
State any grants or bequests of money, securities or property
for use by the State Board or Center for Comprehensive Health
Planning in the administration of this Act; and enter into
contracts consistent with the appropriations for purposes
enumerated in this Act.
    (7) The State Board shall prescribe procedures for review,
standards, and criteria which shall be utilized to make
periodic reviews and determinations of the appropriateness of
any existing health services being rendered by health care
facilities subject to the Act. The State Board shall consider
recommendations of the Board in making its determinations.
    (8) Prescribe, in consultation with the Center for
Comprehensive Health Planning, rules, regulations, standards,
and criteria for the conduct of an expeditious review of
applications for permits for projects of construction or
modification of a health care facility, which projects are
classified as emergency, substantive, or non-substantive in
nature.
    Six months after June 30, 2009 (the effective date of
Public Act 96-31), substantive projects shall include no more
than the following:
        (a) Projects to construct (1) a new or replacement
    facility located on a new site or (2) a replacement
    facility located on the same site as the original facility
    and the cost of the replacement facility exceeds the
    capital expenditure minimum, which shall be reviewed by the
    Board within 120 days;
        (b) Projects proposing a (1) new service within an
    existing healthcare facility or (2) discontinuation of a
    service within an existing healthcare facility, which
    shall be reviewed by the Board within 60 days; or
        (c) Projects proposing a change in the bed capacity of
    a health care facility by an increase in the total number
    of beds or by a redistribution of beds among various
    categories of service or by a relocation of beds from one
    physical facility or site to another by more than 20 beds
    or more than 10% of total bed capacity, as defined by the
    State Board, whichever is less, over a 2-year period.
    The Chairman may approve applications for exemption that
meet the criteria set forth in rules or refer them to the full
Board. The Chairman may approve any unopposed application that
meets all of the review criteria or refer them to the full
Board.
    Such rules shall not abridge the right of the Center for
Comprehensive Health Planning to make recommendations on the
classification and approval of projects, nor shall such rules
prevent the conduct of a public hearing upon the timely request
of an interested party. Such reviews shall not exceed 60 days
from the date the application is declared to be complete.
    (9) Prescribe rules, regulations, standards, and criteria
pertaining to the granting of permits for construction and
modifications which are emergent in nature and must be
undertaken immediately to prevent or correct structural
deficiencies or hazardous conditions that may harm or injure
persons using the facility, as defined in the rules and
regulations of the State Board. This procedure is exempt from
public hearing requirements of this Act.
    (10) Prescribe rules, regulations, standards and criteria
for the conduct of an expeditious review, not exceeding 60
days, of applications for permits for projects to construct or
modify health care facilities which are needed for the care and
treatment of persons who have acquired immunodeficiency
syndrome (AIDS) or related conditions.
    (11) Issue written decisions upon request of the applicant
or an adversely affected party to the Board within 30 days of
the meeting in which a final decision has been made. A "final
decision" for purposes of this Act is the decision to approve
or deny an application, or take other actions permitted under
this Act, at the time and date of the meeting that such action
is scheduled by the Board. The staff of the State Board shall
prepare a written copy of the final decision and the State
Board shall approve a final copy for inclusion in the formal
record. The written decision shall identify the applicable
criteria and factors listed in this Act and the Board's
regulations that were taken into consideration by the Board
when coming to a final decision. If the State Board denies or
fails to approve an application for permit or certificate, the
State Board shall include in the final decision a detailed
explanation as to why the application was denied and identify
what specific criteria or standards the applicant did not
fulfill.
    (12) Require at least one of its members to participate in
any public hearing, after the appointment of a majority of the
9 members to the Board.
    (13) Provide a mechanism for the public to comment on, and
request changes to, draft rules and standards.
    (14) Implement public information campaigns to regularly
inform the general public about the opportunity for public
hearings and public hearing procedures.
    (15) Establish a separate set of rules and guidelines for
long-term care that recognizes that nursing homes are a
different business line and service model from other regulated
facilities. An open and transparent process shall be developed
that considers the following: how skilled nursing fits in the
continuum of care with other care providers, modernization of
nursing homes, establishment of more private rooms,
development of alternative services, and current trends in
long-term care services. The Chairman of the Board shall
appoint a permanent Health Services Review Board Long-term Care
Facility Advisory Subcommittee that shall develop and
recommend to the Board the rules to be established by the Board
under this paragraph (15). The Subcommittee shall also provide
continuous review and commentary on policies and procedures
relative to long-term care and the review of related projects.
In consultation with other experts from the health field of
long-term care, the Board and the Subcommittee shall study new
approaches to the current bed need formula and Health Service
Area boundaries to encourage flexibility and innovation in
design models reflective of the changing long-term care
marketplace and consumer preferences. The Board shall file the
proposed related administrative rules for the separate rules
and guidelines for long-term care required by this paragraph
(15) by no later than September 30, 2011 1, 2010. The
Subcommittee shall be provided a reasonable and timely
opportunity to review and comment on any review, revision, or
updating of the criteria, standards, procedures, and rules used
to evaluate project applications as provided under Section 12.3
of this Act prior to approval by the Board and promulgation of
related rules.
(Source: P.A. 96-31, eff. 6-30-09; 96-339, eff. 7-1-10;
96-1000, eff. 7-2-10; 97-38, eff. 6-28-11; 97-227, eff. 1-1-12;
revised 9-7-11.)
 
    (20 ILCS 3960/12.5)
    (Section scheduled to be repealed on December 31, 2019)
    Sec. 12.5. Update existing bed inventory and associated bed
need projections. While the Task Force on Health Planning
Reform will make long-term recommendations related to the
method and formula for calculating the bed inventory and
associated bed need projections, there is a current need for
the bed inventory to be updated prior to the issuance of the
recommendations of the Task Force. Therefore, the State Agency
shall immediately update the existing bed inventory and
associated bed need projections required by Sections 12 and
12.3 of this Act, using the most recently published historical
utilization data, 5-year 10-year population projections, and
an appropriate migration factor for the medical-surgical and
pediatric category of service which shall be no less than 50%.
The State Agency shall provide written documentation providing
the methodology and rationale used to determine the appropriate
migration factor.
(Source: P.A. 95-5, eff. 5-31-07.)
 
    (20 ILCS 3960/14.1)
    Sec. 14.1. Denial of permit; other sanctions.
    (a) The State Board may deny an application for a permit or
may revoke or take other action as permitted by this Act with
regard to a permit as the State Board deems appropriate,
including the imposition of fines as set forth in this Section,
for any one or a combination of the following:
        (1) The acquisition of major medical equipment without
    a permit or in violation of the terms of a permit.
        (2) The establishment, construction, or modification
    of a health care facility without a permit or in violation
    of the terms of a permit.
        (3) The violation of any provision of this Act or any
    rule adopted under this Act.
        (4) The failure, by any person subject to this Act, to
    provide information requested by the State Board or Agency
    within 30 days after a formal written request for the
    information.
        (5) The failure to pay any fine imposed under this
    Section within 30 days of its imposition.
    (a-5) For facilities licensed under the ID/DD Community
Care Act, no permit shall be denied on the basis of prior
operator history, other than for actions specified under item
(2), (4), or (5) of Section 3-117 of the ID/DD Community Care
Act. For facilities licensed under the Specialized Mental
Health Rehabilitation Act, no permit shall be denied on the
basis of prior operator history, other than for actions
specified under item (2), (4), or (5) of Section 3-117 of the
Specialized Mental Health Rehabilitation Act. For facilities
licensed under the Nursing Home Care Act, no permit shall be
denied on the basis of prior operator history, other than for:
(i) actions specified under item (2), (3), (4), (5), or (6) of
Section 3-117 of the Nursing Home Care Act; (ii) actions
specified under item (a)(6) of Section 3-119 of the Nursing
Home Care Act; or (iii) actions within the preceding 5 years
constituting a substantial and repeated failure to comply with
the Nursing Home Care Act or the rules and regulations adopted
by the Department under that Act. The State Board shall not
deny a permit on account of any action described in this
subsection (a-5) without also considering all such actions in
the light of all relevant information available to the State
Board, including whether the permit is sought to substantially
comply with a mandatory or voluntary plan of correction
associated with any action described in this subsection (a-5).
    (b) Persons shall be subject to fines as follows:
        (1) A permit holder who fails to comply with the
    requirements of maintaining a valid permit shall be fined
    an amount not to exceed 1% of the approved permit amount
    plus an additional 1% of the approved permit amount for
    each 30-day period, or fraction thereof, that the violation
    continues.
        (2) A permit holder who alters the scope of an approved
    project or whose project costs exceed the allowable permit
    amount without first obtaining approval from the State
    Board shall be fined an amount not to exceed the sum of (i)
    the lesser of $25,000 or 2% of the approved permit amount
    and (ii) in those cases where the approved permit amount is
    exceeded by more than $1,000,000, an additional $20,000 for
    each $1,000,000, or fraction thereof, in excess of the
    approved permit amount.
        (2.5) A permit holder who fails to comply with the
    post-permit and reporting requirements set forth in
    Section 5 shall be fined an amount not to exceed $10,000
    plus an additional $10,000 for each 30-day period, or
    fraction thereof, that the violation continues. This fine
    shall continue to accrue until the date that (i) the
    post-permit requirements are met and the post-permit
    reports are received by the State Board or (ii) the matter
    is referred by the State Board to the State Board's legal
    counsel. The accrued fine is not waived by the permit
    holder submitting the required information and reports.
    Prior to any fine beginning to accrue, the Board shall
    notify, in writing, a permit holder of the due date for the
    post-permit and reporting requirements no later than 30
    days before the due date for the requirements. This
    paragraph (2.5) takes effect 6 months after the effective
    date of this amendatory Act of the 97th General Assembly.
        (3) A person who acquires major medical equipment or
    who establishes a category of service without first
    obtaining a permit or exemption, as the case may be, shall
    be fined an amount not to exceed $10,000 for each such
    acquisition or category of service established plus an
    additional $10,000 for each 30-day period, or fraction
    thereof, that the violation continues.
        (4) A person who constructs, modifies, or establishes a
    health care facility without first obtaining a permit shall
    be fined an amount not to exceed $25,000 plus an additional
    $25,000 for each 30-day period, or fraction thereof, that
    the violation continues.
        (5) A person who discontinues a health care facility or
    a category of service without first obtaining a permit
    shall be fined an amount not to exceed $10,000 plus an
    additional $10,000 for each 30-day period, or fraction
    thereof, that the violation continues. For purposes of this
    subparagraph (5), facilities licensed under the Nursing
    Home Care Act or the ID/DD Community Care Act, with the
    exceptions of facilities operated by a county or Illinois
    Veterans Homes, are exempt from this permit requirement.
    However, facilities licensed under the Nursing Home Care
    Act or the ID/DD Community Care Act must comply with
    Section 3-423 of the Nursing Home Care Act or Section 3-423
    of the ID/DD Community Care Act and must provide the Board
    with 30-days' written notice of its intent to close.
        (6) A person subject to this Act who fails to provide
    information requested by the State Board or Agency within
    30 days of a formal written request shall be fined an
    amount not to exceed $1,000 plus an additional $1,000 for
    each 30-day period, or fraction thereof, that the
    information is not received by the State Board or Agency.
    (c) Before imposing any fine authorized under this Section,
the State Board shall afford the person or permit holder, as
the case may be, an appearance before the State Board and an
opportunity for a hearing before a hearing officer appointed by
the State Board. The hearing shall be conducted in accordance
with Section 10.
    (d) All fines collected under this Act shall be transmitted
to the State Treasurer, who shall deposit them into the
Illinois Health Facilities Planning Fund.
(Source: P.A. 96-339, eff. 7-1-10; 96-1372, eff. 7-29-10;
97-38, eff. 6-28-11; 97-227, eff. 1-1-12; revised 9-7-11.)
 
    (20 ILCS 3960/19.5.1 new)
    Sec. 19.5.1. Applicability of changes made by this
amendatory Act of the 97th General Assembly. The changes to
this Act made by this amendatory Act of the 97th General
Assembly apply only to applications or modifications to permit
applications filed on or after the effective date of this
amendatory Act of the 97th General Assembly.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance
    20 ILCS 3960/4from Ch. 111 1/2, par. 1154
    20 ILCS 3960/5from Ch. 111 1/2, par. 1155
    20 ILCS 3960/6from Ch. 111 1/2, par. 1156
    20 ILCS 3960/6.2 new
    20 ILCS 3960/10from Ch. 111 1/2, par. 1160
    20 ILCS 3960/12from Ch. 111 1/2, par. 1162
    20 ILCS 3960/12.5
    20 ILCS 3960/14.1