Illinois General Assembly - Full Text of SB0040
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Full Text of SB0040  97th General Assembly




State of Illinois
2011 and 2012


Introduced 1/27/2011, by Sen. Susan Garrett


20 ILCS 3960/4  from Ch. 111 1/2, par. 1154
20 ILCS 3960/5  from Ch. 111 1/2, par. 1155
20 ILCS 3960/6  from Ch. 111 1/2, par. 1156
20 ILCS 3960/6.2 new
20 ILCS 3960/12  from Ch. 111 1/2, par. 1162
20 ILCS 3960/14.1

    Amends the Illinois Health Facilities Planning Act. Sets forth the requirements for the review of a permit application to establish, construct, or modify a health care facility. Provides that the Health Facilities and Services Review Board shall afford an opportunity for a public hearing concerning a permit application. Sets forth the requirements for post-permit reports. Extends the deadline for the Health Facilities and Services Review Board to establish certain rules concerning long-term care to September 30, 2011. Provides that a permit holder who fails to comply with certain post-permit and reporting requirements 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. Makes other changes.

LRB097 05313 RLJ 45368 b






SB0040LRB097 05313 RLJ 45368 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 4, 5, 6, 12, and 14.1 and adding
6Section 6.2 and as follows:
7    (20 ILCS 3960/4)  (from Ch. 111 1/2, par. 1154)
8    (Section scheduled to be repealed on December 31, 2019)
9    Sec. 4. Health Facilities and Services Review Board;
10membership; appointment; term; compensation; quorum.
11Notwithstanding any other provision in this Section, members of
12the State Board holding office on the day before the effective
13date of this amendatory Act of the 96th General Assembly shall
14retain their authority.
15    (a) There is created the Health Facilities and Services
16Review Board, which shall perform the functions described in
17this Act. The Department shall provide operational support to
18the Board, including the provision of office space, supplies,
19and clerical, financial, and accounting services. The Board may
20contract with experts related to specific health services or
21facilities and create technical advisory panels to assist in
22the development of criteria, standards, and procedures used in
23the evaluation of applications for permit and exemption.



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1    (b) Beginning March 1, 2010, the State Board shall consist
2of 9 voting members. All members shall be residents of Illinois
3and at least 4 shall reside outside the Chicago Metropolitan
4Statistical Area. Consideration shall be given to potential
5appointees who reflect the ethnic and cultural diversity of the
6State. Neither Board members nor Board staff shall be convicted
7felons or have pled guilty to a felony.
8    Each member shall have a reasonable knowledge of the
9practice, procedures and principles of the health care delivery
10system in Illinois, including at least 5 members who shall be
11knowledgeable about health care delivery systems, health
12systems planning, finance, or the management of health care
13facilities currently regulated under the Act. One member shall
14be a representative of a non-profit health care consumer
15advocacy organization. A spouse, parent, sibling, or child
16Spouses or other members of the immediate family of a the Board
17member cannot be an employee, agent, or under contract with
18services or facilities subject to the Act. Prior to appointment
19and in the course of service on the Board, members of the Board
20shall disclose the employment or other financial interest of
21any other relative of the member, if known, in service or
22facilities subject to the Act. Members of the Board shall
23declare any conflict of interest that may exist with respect to
24the status of those relatives and recuse themselves from voting
25on any issue for which a conflict of interest is declared. No
26person shall be appointed or continue to serve as a member of



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1the State Board who is, or whose spouse, parent, sibling, or
2child is, a member of the Board of Directors of, has a
3financial interest in, or has a business relationship with a
4health care facility.
5    Notwithstanding any provision of this Section to the
6contrary, the term of office of each member of the State Board
7serving on the day before the effective date of this amendatory
8Act of the 96th General Assembly is abolished on the date upon
9which members of the 9-member Board, as established by this
10amendatory Act of the 96th General Assembly, have been
11appointed and can begin to take action as a Board. Members of
12the State Board serving on the day before the effective date of
13this amendatory Act of the 96th General Assembly may be
14reappointed to the 9-member Board. Prior to March 1, 2010, the
15Health Facilities Planning Board shall establish a plan to
16transition its powers and duties to the Health Facilities and
17Services Review Board.
18    (c) The State Board shall be appointed by the Governor,
19with the advice and consent of the Senate. Not more than 5 of
20the appointments shall be of the same political party at the
21time of the appointment.
22    The Secretary of Human Services, the Director of Healthcare
23and Family Services, and the Director of Public Health, or
24their designated representatives, shall serve as ex-officio,
25non-voting members of the State Board.
26    (d) Of those 9 members initially appointed by the Governor



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1following the effective date of this amendatory Act of the 96th
2General Assembly, 3 shall serve for terms expiring July 1,
32011, 3 shall serve for terms expiring July 1, 2012, and 3
4shall serve for terms expiring July 1, 2013. Thereafter, each
5appointed member shall hold office for a term of 3 years,
6provided that any member appointed to fill a vacancy occurring
7prior to the expiration of the term for which his or her
8predecessor was appointed shall be appointed for the remainder
9of such term and the term of office of each successor shall
10commence on July 1 of the year in which his predecessor's term
11expires. Each member appointed after the effective date of this
12amendatory Act of the 96th General Assembly shall hold office
13until his or her successor is appointed and qualified. The
14Governor may reappoint a member for additional terms, but no
15member shall serve more than 3 terms, subject to review and
16re-approval every 3 years.
17    (e) State Board members, while serving on business of the
18State Board, shall receive actual and necessary travel and
19subsistence expenses while so serving away from their places of
20residence. Until March 1, 2010, a member of the State Board who
21experiences a significant financial hardship due to the loss of
22income on days of attendance at meetings or while otherwise
23engaged in the business of the State Board may be paid a
24hardship allowance, as determined by and subject to the
25approval of the Governor's Travel Control Board.
26    (f) The Governor shall designate one of the members to



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1serve as the Chairman of the Board, who shall be a person with
2expertise in health care delivery system planning, finance or
3management of health care facilities that are regulated under
4the Act. The Chairman shall annually review Board member
5performance and shall report the attendance record of each
6Board member to the General Assembly.
7    (g) The State Board, through the Chairman, shall prepare a
8separate and distinct budget approved by the General Assembly
9and shall hire and supervise its own professional staff
10responsible for carrying out the responsibilities of the Board.
11    (h) The State Board shall meet at least every 45 days, or
12as often as the Chairman of the State Board deems necessary, or
13upon the request of a majority of the members.
14    (i) Five members of the State Board shall constitute a
15quorum. The affirmative vote of 5 of the members of the State
16Board shall be necessary for any action requiring a vote to be
17taken by the State Board. A vacancy in the membership of the
18State Board shall not impair the right of a quorum to exercise
19all the rights and perform all the duties of the State Board as
20provided by this Act.
21    (j) A State Board member shall disqualify himself or
22herself from the consideration of any application for a permit
23or exemption in which the State Board member or the State Board
24member's spouse, parent, sibling, or child: (i) has an economic
25interest in the matter; or (ii) is employed by, serves as a
26consultant for, or is a member of the governing board of the



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1applicant or a party opposing the application.
2    (k) The Chairman, Board members, and Board staff must
3comply with the Illinois Governmental Ethics Act.
4(Source: P.A. 95-331, eff. 8-21-07; 96-31, eff. 6-30-09.)
5    (20 ILCS 3960/5)  (from Ch. 111 1/2, par. 1155)
6    (Section scheduled to be repealed on December 31, 2019)
7    Sec. 5. Construction, modification, or establishment of
8health care facilities or acquisition of major medical
9equipment; permits or exemptions. No person shall construct,
10modify or establish a health care facility or acquire major
11medical equipment without first obtaining a permit or exemption
12from the State Board. The State Board shall not delegate to the
13staff of the State Board or any other person or entity the
14authority to grant permits or exemptions whenever the staff or
15other person or entity would be required to exercise any
16discretion affecting the decision to grant a permit or
17exemption. The State Board may, by rule, delegate authority to
18the Chairman to grant permits or exemptions when applications
19meet all of the State Board's review criteria and are
21    A permit or exemption shall be obtained prior to the
22acquisition of major medical equipment or to the construction
23or modification of a health care facility which:
24        (a) requires a total capital expenditure in excess of
25    the capital expenditure minimum; or



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1        (b) substantially changes the scope or changes the
2    functional operation of the facility; or
3        (c) changes the bed capacity of a health care facility
4    by increasing the total number of beds or by distributing
5    beds among various categories of service or by relocating
6    beds from one physical facility or site to another by more
7    than 20 beds or more than 10% of total bed capacity as
8    defined by the State Board, whichever is less, over a 2
9    year period.
10    A permit shall be valid only for the defined construction
11or modifications, site, amount and person named in the
12application for such permit and shall not be transferable or
13assignable. A permit shall be valid until such time as the
14project has been completed, provided that (a) obligation of the
15project occurs within 12 months following issuance of the
16permit except for major construction projects such obligation
17must occur within 18 months following issuance of the permit;
18and (b) the project commences and proceeds to completion with
19due diligence by the completion date or extension date approved
20by the Board.
21    A permit holder must do the following: (i) submit the final
22completion and cost report for the project within 90 days after
23the approved project completion date or extension date and (ii)
24submit annual progress reports no earlier than 30 days before
25and no later than 30 days after each anniversary date of the
26Board's approval of the permit until the project is completed.



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1To monitor progress toward project commencement and
2completion, routine post-permit reports shall be limited to
3annual progress reports and the final completion and cost
5    The Certificate of Need process required under this Act is
6designed to restrain rising health care costs by preventing
7unnecessary construction or modification of health care
8facilities. The Board must assure that the establishment,
9construction, or modification of a health care facility or the
10acquisition of major medical equipment is consistent with the
11public interest and that the proposed project is consistent
12with the orderly and economic development or acquisition of
13those facilities and equipment and is in accord with the
14standards, criteria, or plans of need adopted and approved by
15the Board. Board decisions regarding the construction of health
16care facilities must consider capacity, quality, value, and
17equity. Projects may deviate from the costs, fees, and expenses
18provided in their project cost information for the project's
19cost components, provided that the final total project cost
20does not exceed the approved permit amount.
21    Major construction projects, for the purposes of this Act,
22shall include but are not limited to: projects for the
23construction of new buildings; additions to existing
24facilities; modernization projects whose cost is in excess of
25$1,000,000 or 10% of the facilities' operating revenue,
26whichever is less; and such other projects as the State Board



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1shall define and prescribe pursuant to this Act.
2    The State Board may extend the obligation period upon a
3showing of good cause by the permit holder. Permits for
4projects that have not been obligated within the prescribed
5obligation period shall expire on the last day of that period.
6    The acquisition by any person of major medical equipment
7that will not be owned by or located in a health care facility
8and that will not be used to provide services to inpatients of
9a health care facility shall be exempt from review provided
10that a notice is filed in accordance with exemption
12    Notwithstanding any other provision of this Act, no permit
13or exemption is required for the construction or modification
14of a non-clinical service area of a health care facility.
15(Source: P.A. 96-31, eff. 6-30-09.)
16    (20 ILCS 3960/6)  (from Ch. 111 1/2, par. 1156)
17    (Section scheduled to be repealed on December 31, 2019)
18    Sec. 6. Application for permit or exemption; exemption
20    (a) An application for a permit or exemption shall be made
21to the State Board upon forms provided by the State Board. This
22application shall contain such information as the State Board
23deems necessary. The State Board shall not require an applicant
24to file a Letter of Intent before an application is filed. Such
25application shall include affirmative evidence on which the



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1State Board or Chairman may make its decision on the approval
2or denial of the permit or exemption.
3    (b) The State Board shall establish by regulation the
4procedures and requirements regarding issuance of exemptions.
5An exemption shall be approved when information required by the
6Board by rule is submitted. Projects eligible for an exemption,
7rather than a permit, include, but are not limited to, change
8of ownership of a health care facility. For a change of
9ownership of a health care facility between related persons,
10the State Board shall provide by rule for an expedited process
11for obtaining an exemption. In connection with a change of
12ownership, the State Board may approve the transfer of an
13existing permit without regard to whether the permit to be
14transferred has yet been obligated, except for permits
15establishing a new facility or a new category of service.
16    (c) All applications shall be signed by the applicant and
17shall be verified by any 2 officers thereof.
18    (c-5) Any written review or findings of the Board staff or
19any other reviewing organization under Section 8 concerning an
20application for a permit must be made available to the public
21at least 14 calendar days before the meeting of the State Board
22at which the review or findings are considered. The applicant
23and members of the public may submit, to the State Board,
24written responses regarding the facts set forth in the review
25or findings of the Board staff or reviewing organization.
26Members of the public shall have until 10 days before the



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1meeting of the State Board to submit any written response
2concerning the Board staff's written review or findings at
3least 10 days before the meeting of the State Board. The Board
4staff may revise any findings to address corrections of factual
5errors cited in the public response. At the meeting, the State
6Board may, in its discretion, permit the submission of other
7additional written materials.
8    (d) Upon receipt of an application for a permit, the State
9Board shall approve and authorize the issuance of a permit if
10it finds (1) that the applicant is fit, willing, and able to
11provide a proper standard of health care service for the
12community with particular regard to the qualification,
13background and character of the applicant, (2) that economic
14feasibility is demonstrated in terms of effect on the existing
15and projected operating budget of the applicant and of the
16health care facility; in terms of the applicant's ability to
17establish and operate such facility in accordance with
18licensure regulations promulgated under pertinent state laws;
19and in terms of the projected impact on the total health care
20expenditures in the facility and community, (3) that safeguards
21are provided which assure that the establishment, construction
22or modification of the health care facility or acquisition of
23major medical equipment is consistent with the public interest,
24and (4) that the proposed project is consistent with the
25orderly and economic development of such facilities and
26equipment and is in accord with standards, criteria, or plans



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1of need adopted and approved pursuant to the provisions of
2Section 12 of this Act.
3(Source: P.A. 95-237, eff. 1-1-08; 96-31, eff. 6-30-09.)
4    (20 ILCS 3960/6.2 new)
5    Sec. 6.2. Review of permits. Upon receipt of an application
6for a permit to establish, construct, or modify a health care
7facility, the State Board staff shall notify the applicant in
8writing within 10 working days either that the application is
9or is not complete. If the application is complete, the State
10Board staff shall notify the applicant of the beginning of the
11review process. If the application is not complete, the Board
12staff shall explain within the 10-day period why the
13application is incomplete.
14    The State Board staff shall afford a reasonable amount of
15time as established by the State Board, but not to exceed 120
16days, for the review of the application. The 120-day period
17begins on the day the application is found to be substantially
18complete, as that term is defined by the State Board. During
19the 120-day period, the applicant may request an extension. An
20applicant may modify the application at any time before a final
21administrative decision has been made on the application. The
22State Board shall prescribe and provide the forms upon which
23the review and findings of the State Board staff shall be made.
24The State Board staff shall submit its review and findings to
25the State Board for its approval or denial of the permit.



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1    When an application for a permit is initially reviewed by
2State Board staff, as provided in this Section, the State Board
3shall afford an opportunity for a public hearing within a
4reasonable amount of time after receipt of the complete
5application, but not to exceed 90 days after receipt of the
6complete application. Notice of the hearing shall be made
7promptly by certified mail to the applicant and, within 10 days
8before the hearing, by publication in a newspaper of general
9circulation in the area or community to be affected. The
10hearing shall be held in the area or community in which the
11proposed project is to be located, and shall be for the purpose
12of allowing the applicant and any interested person to present
13public testimony concerning the approval, denial, renewal, or
14revocation of the permit. All interested persons attending the
15hearing shall be given a reasonable opportunity to present
16their views or arguments in writing or orally, and a record of
17all of the testimony shall accompany any findings of the State
18Board staff. The State Board shall adopt reasonable rules and
19regulations governing the procedure and conduct of the
21    (20 ILCS 3960/12)  (from Ch. 111 1/2, par. 1162)
22    (Section scheduled to be repealed on December 31, 2019)
23    Sec. 12. Powers and duties of State Board. For purposes of
24this Act, the State Board shall exercise the following powers
25and duties:



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1    (1) Prescribe rules, regulations, standards, criteria,
2procedures or reviews which may vary according to the purpose
3for which a particular review is being conducted or the type of
4project reviewed and which are required to carry out the
5provisions and purposes of this Act. Policies and procedures of
6the State Board shall take into consideration the priorities
7and needs of medically underserved areas and other health care
8services identified through the comprehensive health planning
9process, giving special consideration to the impact of projects
10on access to safety net services.
11    (2) Adopt procedures for public notice and hearing on all
12proposed rules, regulations, standards, criteria, and plans
13required to carry out the provisions of this Act.
14    (3) (Blank).
15    (4) Develop criteria and standards for health care
16facilities planning, conduct statewide inventories of health
17care facilities, maintain an updated inventory on the Board's
18web site reflecting the most recent bed and service changes and
19updated need determinations when new census data become
20available or new need formulae are adopted, and develop health
21care facility plans which shall be utilized in the review of
22applications for permit under this Act. Such health facility
23plans shall be coordinated by the Board with pertinent State
24Plans. Inventories pursuant to this Section of skilled or
25intermediate care facilities licensed under the Nursing Home
26Care Act, skilled or intermediate care facilities licensed



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1under the MR/DD Community Care Act, or nursing homes licensed
2under the Hospital Licensing Act shall be conducted on an
3annual basis no later than July 1 of each year and shall
4include among the information requested a list of all services
5provided by a facility to its residents and to the community at
6large and differentiate between active and inactive beds.
7    In developing health care facility plans, the State Board
8shall consider, but shall not be limited to, the following:
9        (a) The size, composition and growth of the population
10    of the area to be served;
11        (b) The number of existing and planned facilities
12    offering similar programs;
13        (c) The extent of utilization of existing facilities;
14        (d) The availability of facilities which may serve as
15    alternatives or substitutes;
16        (e) The availability of personnel necessary to the
17    operation of the facility;
18        (f) Multi-institutional planning and the establishment
19    of multi-institutional systems where feasible;
20        (g) The financial and economic feasibility of proposed
21    construction or modification; and
22        (h) In the case of health care facilities established
23    by a religious body or denomination, the needs of the
24    members of such religious body or denomination may be
25    considered to be public need.
26    The health care facility plans which are developed and



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1adopted in accordance with this Section shall form the basis
2for the plan of the State to deal most effectively with
3statewide health needs in regard to health care facilities.
4    (5) Coordinate with the Center for Comprehensive Health
5Planning and other state agencies having responsibilities
6affecting health care facilities, including those of licensure
7and cost reporting.
8    (6) Solicit, accept, hold and administer on behalf of the
9State any grants or bequests of money, securities or property
10for use by the State Board or Center for Comprehensive Health
11Planning in the administration of this Act; and enter into
12contracts consistent with the appropriations for purposes
13enumerated in this Act.
14    (7) The State Board shall prescribe procedures for review,
15standards, and criteria which shall be utilized to make
16periodic reviews and determinations of the appropriateness of
17any existing health services being rendered by health care
18facilities subject to the Act. The State Board shall consider
19recommendations of the Board in making its determinations.
20    (8) Prescribe, in consultation with the Center for
21Comprehensive Health Planning, rules, regulations, standards,
22and criteria for the conduct of an expeditious review of
23applications for permits for projects of construction or
24modification of a health care facility, which projects are
25classified as emergency, substantive, or non-substantive in



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1    Six months after June 30, 2009 (the effective date of
2Public Act 96-31), substantive projects shall include no more
3than the following:
4        (a) Projects to construct (1) a new or replacement
5    facility located on a new site or (2) a replacement
6    facility located on the same site as the original facility
7    and the cost of the replacement facility exceeds the
8    capital expenditure minimum;
9        (b) Projects proposing a (1) new service or (2)
10    discontinuation of a service, which shall be reviewed by
11    the Board within 60 days; or
12        (c) Projects proposing a change in the bed capacity of
13    a health care facility by an increase in the total number
14    of beds or by a redistribution of beds among various
15    categories of service or by a relocation of beds from one
16    physical facility or site to another by more than 20 beds
17    or more than 10% of total bed capacity, as defined by the
18    State Board, whichever is less, over a 2-year period.
19    The Chairman may approve applications for exemption that
20meet the criteria set forth in rules or refer them to the full
21Board. The Chairman may approve any unopposed application that
22meets all of the review criteria or refer them to the full
24    Such rules shall not abridge the right of the Center for
25Comprehensive Health Planning to make recommendations on the
26classification and approval of projects, nor shall such rules



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1prevent the conduct of a public hearing upon the timely request
2of an interested party. Such reviews shall not exceed 60 days
3from the date the application is declared to be complete.
4    (9) Prescribe rules, regulations, standards, and criteria
5pertaining to the granting of permits for construction and
6modifications which are emergent in nature and must be
7undertaken immediately to prevent or correct structural
8deficiencies or hazardous conditions that may harm or injure
9persons using the facility, as defined in the rules and
10regulations of the State Board. This procedure is exempt from
11public hearing requirements of this Act.
12    (10) Prescribe rules, regulations, standards and criteria
13for the conduct of an expeditious review, not exceeding 60
14days, of applications for permits for projects to construct or
15modify health care facilities which are needed for the care and
16treatment of persons who have acquired immunodeficiency
17syndrome (AIDS) or related conditions.
18    (11) Issue written decisions upon request of the applicant
19or an adversely affected party to the Board within 30 days of
20the meeting in which a final decision has been made. A "final
21decision" for purposes of this Act is the decision to approve
22or deny an application, or take other actions permitted under
23this Act, at the time and date of the meeting that such action
24is scheduled by the Board. The staff of the State Board shall
25prepare a written copy of the final decision and the State
26Board shall approve a final copy for inclusion in the formal



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2    (12) Require at least one of its members to participate in
3any public hearing, after the appointment of a majority of the
4the 9 members to the Board.
5    (13) Provide a mechanism for the public to comment on, and
6request changes to, draft rules and standards.
7    (14) Implement public information campaigns to regularly
8inform the general public about the opportunity for public
9hearings and public hearing procedures.
10    (15) Establish a separate set of rules and guidelines for
11long-term care that recognizes that nursing homes are a
12different business line and service model from other regulated
13facilities. An open and transparent process shall be developed
14that considers the following: how skilled nursing fits in the
15continuum of care with other care providers, modernization of
16nursing homes, establishment of more private rooms,
17development of alternative services, and current trends in
18long-term care services. The Chairman of the Board shall
19appoint a permanent Health Services Review Board Long-term Care
20Facility Advisory Subcommittee that shall develop and
21recommend to the Board the rules to be established by the Board
22under this paragraph (15). The Subcommittee shall also provide
23continuous review and commentary on policies and procedures
24relative to long-term care and the review of related projects.
25In consultation with other experts from the health field of
26long-term care, the Board and the Subcommittee shall study new



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1approaches to the current bed need formula and Health Service
2Area boundaries to encourage flexibility and innovation in
3design models reflective of the changing long-term care
4marketplace and consumer preferences. The Board shall file the
5proposed related administrative rules for the separate rules
6and guidelines for long-term care required by this paragraph
7(15) by no later than September 30, 2011 1, 2010. The
8Subcommittee shall be provided a reasonable and timely
9opportunity to review and comment on any review, revision, or
10updating of the criteria, standards, procedures, and rules used
11to evaluate project applications as provided under Section 12.3
12of this Act prior to approval by the Board and promulgation of
13related rules.
14(Source: P.A. 96-31, eff. 6-30-09; 96-339, eff. 7-1-10;
1596-1000, eff. 7-2-10.)
16    (20 ILCS 3960/14.1)
17    Sec. 14.1. Denial of permit; other sanctions.
18    (a) The State Board may deny an application for a permit or
19may revoke or take other action as permitted by this Act with
20regard to a permit as the State Board deems appropriate,
21including the imposition of fines as set forth in this Section,
22for any one or a combination of the following:
23        (1) The acquisition of major medical equipment without
24    a permit or in violation of the terms of a permit.
25        (2) The establishment, construction, or modification



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1    of a health care facility without a permit or in violation
2    of the terms of a permit.
3        (3) The violation of any provision of this Act or any
4    rule adopted under this Act.
5        (4) The failure, by any person subject to this Act, to
6    provide information requested by the State Board or Agency
7    within 30 days after a formal written request for the
8    information.
9        (5) The failure to pay any fine imposed under this
10    Section within 30 days of its imposition.
11    (a-5) For facilities licensed under the MR/DD Community
12Care Act, no permit shall be denied on the basis of prior
13operator history, other than for actions specified under item
14(2), (4), or (5) of Section 3-117 of the MR/DD Community Care
15Act. For facilities licensed under the Nursing Home Care Act,
16no permit shall be denied on the basis of prior operator
17history, other than for: (i) actions specified under item (2),
18(3), (4), (5), or (6) of Section 3-117 of the Nursing Home Care
19Act; (ii) actions specified under item (a)(6) of Section 3-119
20of the Nursing Home Care Act; or (iii) actions within the
21preceding 5 years constituting a substantial and repeated
22failure to comply with the Nursing Home Care Act or the rules
23and regulations adopted by the Department under that Act. The
24State Board shall not deny a permit on account of any action
25described in this subsection (a-5) without also considering all
26such actions in the light of all relevant information available



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



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1    post-permit requirements are met and the post-permit
2    reports are received by the State Board or (ii) the matter
3    is referred by the State Board to the State Board's legal
4    counsel. The accrued fine is not waived by the permit
5    holder submitting the required information and reports
6    after the expiration of the required timeframes set forth
7    in Section 5.
8        (3) A person who acquires major medical equipment or
9    who establishes a category of service without first
10    obtaining a permit or exemption, as the case may be, shall
11    be fined an amount not to exceed $10,000 for each such
12    acquisition or category of service established plus an
13    additional $10,000 for each 30-day period, or fraction
14    thereof, that the violation continues.
15        (4) A person who constructs, modifies, or establishes a
16    health care facility without first obtaining a permit shall
17    be fined an amount not to exceed $25,000 plus an additional
18    $25,000 for each 30-day period, or fraction thereof, that
19    the violation continues.
20        (5) A person who discontinues a health care facility or
21    a category of service without first obtaining a permit
22    shall be fined an amount not to exceed $10,000 plus an
23    additional $10,000 for each 30-day period, or fraction
24    thereof, that the violation continues. For purposes of this
25    subparagraph (5), facilities licensed under the Nursing
26    Home Care Act or the MR/DD Community Care Act, with the



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1    exceptions of facilities operated by a county or Illinois
2    Veterans Homes, are exempt from this permit requirement.
3    However, facilities licensed under the Nursing Home Care
4    Act or the MR/DD Community Care Act must comply with
5    Section 3-423 of the Nursing Home Care Act or Section 3-423
6    of the MR/DD Community Care Act and must provide the Board
7    with 30-days' written notice of its intent to close.
8        (6) A person subject to this Act who fails to provide
9    information requested by the State Board or Agency within
10    30 days of a formal written request shall be fined an
11    amount not to exceed $1,000 plus an additional $1,000 for
12    each 30-day period, or fraction thereof, that the
13    information is not received by the State Board or Agency.
14    (c) Before imposing any fine authorized under this Section,
15the State Board shall afford the person or permit holder, as
16the case may be, an appearance before the State Board and an
17opportunity for a hearing before a hearing officer appointed by
18the State Board. The hearing shall be conducted in accordance
19with Section 10.
20    (d) All fines collected under this Act shall be transmitted
21to the State Treasurer, who shall deposit them into the
22Illinois Health Facilities Planning Fund.
23(Source: P.A. 95-543, eff. 8-28-07; 96-339, eff. 7-1-10;
2496-1372, eff. 7-29-10.)