Illinois General Assembly - Full Text of HB5387
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Full Text of HB5387  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/31/2022, by Rep. Maurice A. West, II


20 ILCS 3960/6  from Ch. 111 1/2, par. 1156
20 ILCS 3960/8.5
20 ILCS 3960/12  from Ch. 111 1/2, par. 1162
20 ILCS 3960/12.2
20 ILCS 3960/8.7 rep.

    Amends the Illinois Health Facilities Planning Act. Restores the provisions that were amended by Public Act 101-83 to the form in which they existed before their amendment by Public Act 101-83. Effective immediately.

LRB102 25092 RJF 34352 b





HB5387LRB102 25092 RJF 34352 b

1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Health Facilities Planning Act is
5amended by changing Sections 6, 8.5, 12, and 12.2 as follows:
6    (20 ILCS 3960/6)  (from Ch. 111 1/2, par. 1156)
7    (Section scheduled to be repealed on December 31, 2029)
8    Sec. 6. Application for permit or exemption; exemption
10    (a) An application for a permit or exemption shall be made
11to the State Board upon forms provided by the State Board. This
12application shall contain such information as the State Board
13deems necessary. The State Board shall not require an
14applicant to file a Letter of Intent before an application is
15filed. Such application shall include affirmative evidence on
16which the State Board or Chairman may make its decision on the
17approval or denial of the permit or exemption.
18    (b) The State Board shall establish by regulation the
19procedures and requirements regarding issuance of exemptions.
20An exemption shall be approved when information required by
21the Board by rule is submitted. Projects eligible for an
22exemption, rather than a permit, include, but are not limited
23to, change of ownership of a health care facility and



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1discontinuation of a category of service , discontinuation of
2a category of service, and discontinuation of a health care
3facility, other than a health care facility maintained by the
4State or any agency or department thereof or a nursing home
5maintained by a county. The Board may accept an application
6for an exemption for the discontinuation of a category of
7service at a health care facility only once in a 6-month period
8following (1) the previous application for exemption at the
9same health care facility or (2) the final decision of the
10Board regarding the discontinuation of a category of service
11at the same health care facility, whichever occurs later. A
12discontinuation of a category of service shall otherwise
13require an application for a permit if an application for an
14exemption has already been accepted within the 6-month period.
15For a change of ownership among related persons of a health
16care facility, the State Board shall provide by rule for an
17expedited process for obtaining an exemption in accordance
18with Section 8.5 of this Act. For the purposes of this Section,
19"change of ownership among related persons" means a
20transaction in which the parties to the transaction are under
21common control or ownership before and after the transaction
22is complete.
23    (c) All applications shall be signed by the applicant and
24shall be verified by any 2 officers thereof.
25    (c-5) Any written review or findings of the Board staff
26set forth in the State Board Staff Report concerning an



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1application for a permit must be made available to the public
2and the applicant at least 14 calendar days before the meeting
3of the State Board at which the review or findings are
4considered. The applicant and members of the public may
5submit, to the State Board, written responses regarding the
6facts set forth in the review or findings of the Board staff.
7Members of the public and the applicant shall have until 10
8days before the meeting of the State Board to submit any
9written response concerning the Board staff's written review
10or findings. The Board staff may revise any findings to
11address corrections of factual errors cited in the public
12response. At the meeting, the State Board may, in its
13discretion, permit the submission of other additional written
15    (d) Upon receipt of an application for a permit, the State
16Board shall approve and authorize the issuance of a permit if
17it finds (1) that the applicant is fit, willing, and able to
18provide a proper standard of health care service for the
19community with particular regard to the qualification,
20background and character of the applicant, (2) that economic
21feasibility is demonstrated in terms of effect on the existing
22and projected operating budget of the applicant and of the
23health care facility; in terms of the applicant's ability to
24establish and operate such facility in accordance with
25licensure regulations promulgated under pertinent state laws;
26and in terms of the projected impact on the total health care



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1expenditures in the facility and community, (3) that
2safeguards are provided that assure that the establishment,
3construction or modification of the health care facility or
4acquisition of major medical equipment is consistent with the
5public interest, and (4) that the proposed project is
6consistent with the orderly and economic development of such
7facilities and equipment and is in accord with standards,
8criteria, or plans of need adopted and approved pursuant to
9the provisions of Section 12 of this Act.
10(Source: P.A. 100-518, eff. 6-1-18; 100-681, eff. 8-3-18;
11101-83, eff. 7-15-19.)
12    (20 ILCS 3960/8.5)
13    (Section scheduled to be repealed on December 31, 2029)
14    Sec. 8.5. Certificate of exemption for change of ownership
15of a health care facility; discontinuation of a health care
16facility or category of service; public notice and public
18    (a) Upon a finding that an application for a change of
19ownership is complete, the State Board shall publish a legal
20notice on 3 consecutive days one day in a newspaper of general
21circulation in the area or community to be affected and afford
22the public an opportunity to request a hearing. If the
23application is for a facility located in a Metropolitan
24Statistical Area, an additional legal notice shall be
25published in a newspaper of limited circulation, if one



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



HB5387- 6 -LRB102 25092 RJF 34352 b

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



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



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1must submit a statement to the State Board certifying that the
2discontinuation is complete.
3    (a-5) Upon a finding that an application to discontinue a
4category of service is complete and provides the requested
5information, as specified by the State Board, an exemption
6shall be issued. No later than 30 days after the issuance of
7the exemption, the health care facility must give written
8notice of the discontinuation of the category of service to
9the State Senator and State Representative serving the
10legislative district in which the health care facility is
11located. No later than 90 days after a discontinuation of a
12category of service, the applicant must submit a statement to
13the State Board certifying that the discontinuation is
15    (b) If a public hearing is requested, it shall be held at
16least 15 days but no more than 30 days after the date of
17publication of the legal notice in the community in which the
18facility is located. The hearing shall be held in the affected
19area or community in a place of reasonable size and
20accessibility and a full and complete written transcript of
21the proceedings shall be made. All interested persons
22attending the hearing shall be given a reasonable opportunity
23to present their positions in writing or orally. The applicant
24shall provide a summary or describe the proposed change of
25ownership of the proposal for distribution at the public



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1    (c) For the purposes of this Section "newspaper of limited
2circulation" means a newspaper intended to serve a particular
3or defined population of a specific geographic area within a
4Metropolitan Statistical Area such as a municipality, town,
5village, township, or community area, but does not include
6publications of professional and trade associations.
7    (d) The changes made to this Section by this amendatory
8Act of the 101st General Assembly shall apply to all
9applications submitted after the effective date of this
10amendatory Act of the 101st General Assembly.
11(Source: P.A. 100-201, eff. 8-18-17; 101-83, eff. 7-15-19.)
12    (20 ILCS 3960/12)  (from Ch. 111 1/2, par. 1162)
13    (Section scheduled to be repealed on December 31, 2029)
14    Sec. 12. Powers and duties of State Board. For purposes of
15this Act, the State Board shall exercise the following powers
16and duties:
17    (1) Prescribe rules, regulations, standards, criteria,
18procedures or reviews which may vary according to the purpose
19for which a particular review is being conducted or the type of
20project reviewed and which are required to carry out the
21provisions and purposes of this Act. Policies and procedures
22of the State Board shall take into consideration the
23priorities and needs of medically underserved areas and other
24health care services, giving special consideration to the
25impact of projects on access to safety net services.



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1    (2) Adopt procedures for public notice and hearing on all
2proposed rules, regulations, standards, criteria, and plans
3required to carry out the provisions of this Act.
4    (3) (Blank).
5    (4) Develop criteria and standards for health care
6facilities planning, conduct statewide inventories of health
7care facilities, maintain an updated inventory on the Board's
8web site reflecting the most recent bed and service changes
9and updated need determinations when new census data become
10available or new need formulae are adopted, and develop health
11care facility plans which shall be utilized in the review of
12applications for permit under this Act. Such health facility
13plans shall be coordinated by the Board with pertinent State
14Plans. Inventories pursuant to this Section of skilled or
15intermediate care facilities licensed under the Nursing Home
16Care Act, skilled or intermediate care facilities licensed
17under the ID/DD Community Care Act, skilled or intermediate
18care facilities licensed under the MC/DD Act, facilities
19licensed under the Specialized Mental Health Rehabilitation
20Act of 2013, or nursing homes licensed under the Hospital
21Licensing Act shall be conducted on an annual basis no later
22than July 1 of each year and shall include among the
23information requested a list of all services provided by a
24facility to its residents and to the community at large and
25differentiate between active and inactive beds.
26    In developing health care facility plans, the State Board



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1shall consider, but shall not be limited to, the following:
2        (a) The size, composition and growth of the population
3    of the area to be served;
4        (b) The number of existing and planned facilities
5    offering similar programs;
6        (c) The extent of utilization of existing facilities;
7        (d) The availability of facilities which may serve as
8    alternatives or substitutes;
9        (e) The availability of personnel necessary to the
10    operation of the facility;
11        (f) Multi-institutional planning and the establishment
12    of multi-institutional systems where feasible;
13        (g) The financial and economic feasibility of proposed
14    construction or modification; and
15        (h) In the case of health care facilities established
16    by a religious body or denomination, the needs of the
17    members of such religious body or denomination may be
18    considered to be public need.
19    The health care facility plans which are developed and
20adopted in accordance with this Section shall form the basis
21for the plan of the State to deal most effectively with
22statewide health needs in regard to health care facilities.
23    (5) Coordinate with other state agencies having
24responsibilities affecting health care facilities, including
25those of licensure and cost reporting.
26    (6) Solicit, accept, hold and administer on behalf of the



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1State any grants or bequests of money, securities or property
2for use by the State Board in the administration of this Act;
3and enter into contracts consistent with the appropriations
4for purposes enumerated in this Act.
5    (7) (Blank).
6    (8) Prescribe rules, regulations, standards, and criteria
7for the conduct of an expeditious review of applications for
8permits for projects of construction or modification of a
9health care facility, which projects are classified as
10emergency, substantive, or non-substantive in nature.
11    Substantive projects shall include no more than the
13        (a) Projects to construct (1) a new or replacement
14    facility located on a new site or (2) a replacement
15    facility located on the same site as the original facility
16    and the cost of the replacement facility exceeds the
17    capital expenditure minimum, which shall be reviewed by
18    the Board within 120 days;
19        (b) Projects proposing a (1) new service within an
20    existing healthcare facility or (2) discontinuation of a
21    service within an existing healthcare facility, which
22    shall be reviewed by the Board within 60 days; or
23        (c) Projects proposing a change in the bed capacity of
24    a health care facility by an increase in the total number
25    of beds or by a redistribution of beds among various
26    categories of service or by a relocation of beds from one



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1    physical facility or site to another by more than 20 beds
2    or more than 10% of total bed capacity, as defined by the
3    State Board, whichever is less, over a 2-year period.
4    The Chairman may approve applications for exemption that
5meet the criteria set forth in rules or refer them to the full
6Board. The Chairman may approve any unopposed application that
7meets all of the review criteria or refer them to the full
9    Such rules shall not prevent the conduct of a public
10hearing upon the timely request of an interested party. Such
11reviews shall not exceed 60 days from the date the application
12is declared to be complete.
13    (9) Prescribe rules, regulations, standards, and criteria
14pertaining to the granting of permits for construction and
15modifications which are emergent in nature and must be
16undertaken immediately to prevent or correct structural
17deficiencies or hazardous conditions that may harm or injure
18persons using the facility, as defined in the rules and
19regulations of the State Board. This procedure is exempt from
20public hearing requirements of this Act.
21    (10) Prescribe rules, regulations, standards and criteria
22for the conduct of an expeditious review, not exceeding 60
23days, of applications for permits for projects to construct or
24modify health care facilities which are needed for the care
25and treatment of persons who have acquired immunodeficiency
26syndrome (AIDS) or related conditions.



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1    (10.5) Provide its rationale when voting on an item before
2it at a State Board meeting in order to comply with subsection
3(b) of Section 3-108 of the Code of Civil Procedure.
4    (11) Issue written decisions upon request of the applicant
5or an adversely affected party to the Board. Requests for a
6written decision shall be made within 15 days after the Board
7meeting in which a final decision has been made. A "final
8decision" for purposes of this Act is the decision to approve
9or deny an application, or take other actions permitted under
10this Act, at the time and date of the meeting that such action
11is scheduled by the Board. The transcript of the State Board
12meeting shall be incorporated into the Board's final decision.
13The staff of the Board shall prepare a written copy of the
14final decision and the Board shall approve a final copy for
15inclusion in the formal record. The Board shall consider, for
16approval, the written draft of the final decision no later
17than the next scheduled Board meeting. The written decision
18shall identify the applicable criteria and factors listed in
19this Act and the Board's regulations that were taken into
20consideration by the Board when coming to a final decision. If
21the Board denies or fails to approve an application for permit
22or exemption, the Board shall include in the final decision a
23detailed explanation as to why the application was denied and
24identify what specific criteria or standards the applicant did
25not fulfill.
26    (12) (Blank).



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1    (13) Provide a mechanism for the public to comment on, and
2request changes to, draft rules and standards.
3    (14) Implement public information campaigns to regularly
4inform the general public about the opportunity for public
5hearings and public hearing procedures.
6    (15) Establish a separate set of rules and guidelines for
7long-term care that recognizes that nursing homes are a
8different business line and service model from other regulated
9facilities. An open and transparent process shall be developed
10that considers the following: how skilled nursing fits in the
11continuum of care with other care providers, modernization of
12nursing homes, establishment of more private rooms,
13development of alternative services, and current trends in
14long-term care services. The Chairman of the Board shall
15appoint a permanent Health Services Review Board Long-term
16Care Facility Advisory Subcommittee that shall develop and
17recommend to the Board the rules to be established by the Board
18under this paragraph (15). The Subcommittee shall also provide
19continuous review and commentary on policies and procedures
20relative to long-term care and the review of related projects.
21The Subcommittee shall make recommendations to the Board no
22later than January 1, 2016 and every January thereafter
23pursuant to the Subcommittee's responsibility for the
24continuous review and commentary on policies and procedures
25relative to long-term care. In consultation with other experts
26from the health field of long-term care, the Board and the



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1Subcommittee shall study new approaches to the current bed
2need formula and Health Service Area boundaries to encourage
3flexibility and innovation in design models reflective of the
4changing long-term care marketplace and consumer preferences
5and submit its recommendations to the Chairman of the Board no
6later than January 1, 2017. The Subcommittee shall evaluate,
7and make recommendations to the State Board regarding, the
8buying, selling, and exchange of beds between long-term care
9facilities within a specified geographic area or drive time.
10The Board shall file the proposed related administrative rules
11for the separate rules and guidelines for long-term care
12required by this paragraph (15) by no later than September 30,
132011. The Subcommittee shall be provided a reasonable and
14timely opportunity to review and comment on any review,
15revision, or updating of the criteria, standards, procedures,
16and rules used to evaluate project applications as provided
17under Section 12.3 of this Act.
18    The Chairman of the Board shall appoint voting members of
19the Subcommittee, who shall serve for a period of 3 years, with
20one-third of the terms expiring each January, to be determined
21by lot. Appointees shall include, but not be limited to,
22recommendations from each of the 3 statewide long-term care
23associations, with an equal number to be appointed from each.
24Compliance with this provision shall be through the
25appointment and reappointment process. All appointees serving
26as of April 1, 2015 shall serve to the end of their term as



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1determined by lot or until the appointee voluntarily resigns,
2whichever is earlier.
3    One representative from the Department of Public Health,
4the Department of Healthcare and Family Services, the
5Department on Aging, and the Department of Human Services may
6each serve as an ex-officio non-voting member of the
7Subcommittee. The Chairman of the Board shall select a
8Subcommittee Chair, who shall serve for a period of 3 years.
9    (16) Prescribe the format of the State Board Staff Report.
10A State Board Staff Report shall pertain to applications that
11include, but are not limited to, applications for permit or
12exemption, applications for permit renewal, applications for
13extension of the financial commitment period, applications
14requesting a declaratory ruling, or applications under the
15Health Care Worker Self-Referral Act. State Board Staff
16Reports shall compare applications to the relevant review
17criteria under the Board's rules.
18    (17) Establish a separate set of rules and guidelines for
19facilities licensed under the Specialized Mental Health
20Rehabilitation Act of 2013. An application for the
21re-establishment of a facility in connection with the
22relocation of the facility shall not be granted unless the
23applicant has a contractual relationship with at least one
24hospital to provide emergency and inpatient mental health
25services required by facility consumers, and at least one
26community mental health agency to provide oversight and



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1assistance to facility consumers while living in the facility,
2and appropriate services, including case management, to assist
3them to prepare for discharge and reside stably in the
4community thereafter. No new facilities licensed under the
5Specialized Mental Health Rehabilitation Act of 2013 shall be
6established after June 16, 2014 (the effective date of Public
7Act 98-651) except in connection with the relocation of an
8existing facility to a new location. An application for a new
9location shall not be approved unless there are adequate
10community services accessible to the consumers within a
11reasonable distance, or by use of public transportation, so as
12to facilitate the goal of achieving maximum individual
13self-care and independence. At no time shall the total number
14of authorized beds under this Act in facilities licensed under
15the Specialized Mental Health Rehabilitation Act of 2013
16exceed the number of authorized beds on June 16, 2014 (the
17effective date of Public Act 98-651).
18    (18) Elect a Vice Chairman to preside over State Board
19meetings and otherwise act in place of the Chairman when the
20Chairman is unavailable.
21(Source: P.A. 100-518, eff. 6-1-18; 100-681, eff. 8-3-18;
22101-83, eff. 7-15-19.)
23    (20 ILCS 3960/12.2)
24    (Section scheduled to be repealed on December 31, 2029)
25    Sec. 12.2. Powers of the State Board staff. For purposes



HB5387- 19 -LRB102 25092 RJF 34352 b

1of this Act, the staff shall exercise the following powers and
3        (1) Review applications for permits and exemptions in
4    accordance with the standards, criteria, and plans of need
5    established by the State Board under this Act and certify
6    its finding to the State Board.
7        (1.5) Post the following on the Board's web site:
8    relevant (i) rules, (ii) standards, (iii) criteria, (iv)
9    State norms, (v) references used by Board staff in making
10    determinations about whether application criteria are met,
11    and (vi) notices of project-related filings, including
12    notice of public comments related to the application.
13        (2) Charge and collect an amount determined by the
14    State Board and the staff to be reasonable fees for the
15    processing of applications by the State Board. The State
16    Board shall set the amounts by rule. Application fees for
17    continuing care retirement communities, and other health
18    care models that include regulated and unregulated
19    components, shall apply only to those components subject
20    to regulation under this Act. All fees and fines collected
21    under the provisions of this Act shall be deposited into
22    the Illinois Health Facilities Planning Fund to be used
23    for the expenses of administering this Act.
24        (2.1) Publish the following reports on the State Board
25    website:
26            (A) An annual accounting, aggregated by category



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1        and with names of parties redacted, of fees, fines,
2        and other revenue collected as well as expenses
3        incurred, in the administration of this Act.
4            (B) An annual report, with names of the parties
5        redacted, that summarizes all settlement agreements
6        entered into with the State Board that resolve an
7        alleged instance of noncompliance with State Board
8        requirements under this Act.
9            (C) (Blank).
10            (D) Board reports showing the degree to which an
11        application conforms to the review standards, a
12        summation of relevant public testimony, and any
13        additional information that staff wants to
14        communicate.
15        (3) Coordinate with other State agencies having
16    responsibilities affecting health care facilities,
17    including licensure and cost reporting agencies.
18        (4) Issue advisory opinions upon request. Staff
19    advisory opinions do not constitute determinations by the
20    State Board. Determinations by the State Board are made
21    through the declaratory ruling process.
22(Source: P.A. 100-681, eff. 8-3-18; 101-83, eff. 7-15-19.)
23    (20 ILCS 3960/8.7 rep.)
24    Section 10. The Illinois Health Facilities Planning Act is
25amended by repealing Section 8.7.



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.