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91_SB0807ham009
LRB9106074MWgcam20
1 AMENDMENT TO SENATE BILL 807
2 AMENDMENT NO. . Amend Senate Bill 807, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT in relation to health facilities."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Open Meetings Act is amended by changing
8 Section 1.02 as follows:
9 (5 ILCS 120/1.02) (from Ch. 102, par. 41.02)
10 Sec. 1.02. For the purposes of this Act:
11 "Meeting" means any gathering of a majority of a quorum
12 of the members commissioners of a public body held for the
13 purpose of discussing public business.
14 "Public body" includes all legislative, executive,
15 administrative or advisory bodies of the State, counties,
16 townships, cities, villages, incorporated towns, school
17 districts and all other municipal corporations, boards,
18 bureaus, committees or commissions of this State, and any
19 subsidiary bodies of any of the foregoing including but not
20 limited to committees and subcommittees which are supported
21 in whole or in part by tax revenue, or which expend tax
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1 revenue, except the General Assembly and committees or
2 commissions thereof. "Public body" includes tourism boards
3 and convention or civic center boards located in counties
4 that are contiguous to the Mississippi River with populations
5 of more than 250,000 but less than 300,000. "Public body"
6 includes the Health Facilities Planning Board. "Public body"
7 does not include a child death review team established under
8 the Child Death Review Team Act or an ethics commission,
9 ethics officer, or ultimate jurisdictional authority acting
10 under the State Gift Ban Act as provided by Section 80 of
11 that Act.
12 (Source: P.A. 90-517, eff. 8-22-97; 90-737, eff. 1-1-99;
13 revised 11-8-99.)
14 Section 10. The State Gift Ban Act is amended by
15 changing Section 5 as follows:
16 (5 ILCS 425/5)
17 Sec. 5. Definitions. As used in this Act:
18 "Commission" means an ethics commission created by this
19 Act.
20 "Employee" means all full-time, part-time, and
21 contractual employees, appointed and elected officials, and
22 directors of a governmental entity.
23 "Gift" means any gratuity, discount, entertainment,
24 hospitality, loan, forbearance, or other tangible or
25 intangible item having monetary value including, but not
26 limited to, cash, food and drink, and honoraria for speaking
27 engagements related to or attributable to government
28 employment or the official position of an employee, member,
29 officer, or judge.
30 "Governmental entity" means each office, board,
31 commission, agency, department, authority, institution,
32 university, body politic and corporate, administrative unit,
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1 and corporate outgrowth of the executive, legislative, and
2 judicial branches of State government, whether created by the
3 Illinois Constitution, by or in accordance with statute, or
4 by executive order of the Governor. "Governmental entity"
5 includes the Health Facilities Planning Board.
6 "Judge" means judges and associate judges of the Supreme
7 Court, Appellate Courts, and Circuit Courts.
8 "Member" means a member of the General Assembly.
9 "Officer" means a State constitutional officer.
10 "Political organization" means a party, committee,
11 association, fund, or other organization (whether or not
12 incorporated) organized and operated primarily for the
13 purpose of directly or indirectly accepting contributions or
14 making expenditures, or both, for the function of influencing
15 or attempting to influence the selection, nomination,
16 election, or appointment of any individual to any federal,
17 state, or local public office or office in a political
18 organization, or the election of Presidential or
19 Vice-Presidential electors, whether or not the individual or
20 electors are selected, nominated, elected, or appointed. The
21 term includes the making of expenditures relating to an
22 office described in the preceding sentence that, if incurred
23 by the individual, would be allowable as a federal income tax
24 deduction for trade or business expenses.
25 "Prohibited source" means any person or entity who:
26 (1) is seeking official action (i) by the member,
27 officer, or judge or (ii) in the case of an employee, by
28 the employee or by the member, officer, judge,
29 governmental entity, or other employee directing the
30 employee;
31 (2) does business or seeks to do business (i) with
32 the member, officer, or judge or (ii) in the case of an
33 employee, with the employee or with the member, officer,
34 judge, governmental entity, or other employee directing
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1 the employee;
2 (3) conducts activities regulated (i) by the
3 member, officer, or judge or (ii) in the case of an
4 employee, by the employee or by the member, officer,
5 judge, governmental entity, or other employee directing
6 the employee;
7 (4) has interests that may be substantially
8 affected by the performance or non-performance of the
9 official duties of the member, officer, employee, or
10 judge; or
11 (5) is registered or required to be registered with
12 the Secretary of State under the Lobbyist Registration
13 Act.
14 "Ultimate jurisdictional authority" means the following:
15 (1) For members, partisan staff, and their
16 secretaries, the appropriate legislative leader:
17 President of the Senate, Minority Leader of the Senate,
18 Speaker of the House of Representatives, or Minority
19 Leader of the House of Representatives.
20 (2) For State employees who are professional staff
21 or employees of the Senate and not covered under item
22 (1), the Senate Operations Commission.
23 (3) For State employees who are professional staff
24 or employees of the House of Representatives and not
25 covered under item (1), the Speaker of the House of
26 Representatives.
27 (4) For State employees who are employees of the
28 legislative support services agencies, the Joint
29 Committee on Legislative Support Services.
30 (5) For judges, the Chief Justice of the Supreme
31 Court.
32 (6) For State employees of the judicial branch, the
33 Administrative Office of the Illinois Courts.
34 (7) For State employees of an executive branch
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1 constitutional officer, the appropriate executive branch
2 constitutional officer.
3 (8) For State employees not under the jurisdiction
4 of paragraph (1), (2), (3), (4), (5), (6), or (7), the
5 Governor.
6 (9) For officers, the General Assembly.
7 (Source: P.A. 90-737, eff. 1-1-99.)
8 Section 15. The Illinois Health Facilities Planning Act
9 is amended by changing Sections 3, 4, and 5 and by adding
10 Sections 4.1, 4.2, 5.2, 5.3, 19.5, and 19.6 as follows:
11 (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
12 (Text of Section before amendment by P.A. 91-656)
13 Sec. 3. As used in this Act:
14 "Health care facilities" means and includes the following
15 facilities and organizations:
16 1. An ambulatory surgical treatment center required
17 to be licensed pursuant to the Ambulatory Surgical
18 Treatment Center Act;
19 2. An institution, place, building, or agency
20 required to be licensed pursuant to the Hospital
21 Licensing Act;
22 3. Any institution required to be licensed pursuant
23 to the Nursing Home Care Act;
24 4. Hospitals, nursing homes, ambulatory surgical
25 treatment centers, or kidney disease treatment centers
26 maintained by the State or any department or agency
27 thereof; and
28 5. Kidney disease treatment centers, including a
29 free-standing hemodialysis unit; and.
30 6. An institution, place, building, or room used
31 for the performance of outpatient surgical procedures
32 that is leased, owned, or operated by or on behalf of an
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1 out-of-state facility.
2 No federally owned facility shall be subject to the
3 provisions of this Act, nor facilities used solely for
4 healing by prayer or spiritual means.
5 No facility licensed under the Supportive Residences
6 Licensing Act shall be subject to the provisions of this Act.
7 A facility designated as a supportive living facility
8 that is in good standing with the demonstration project
9 established under Section 5-5.01a of the Illinois Public Aid
10 Code shall not be subject to the provisions of this Act.
11 This Act does not apply to facilities granted waivers
12 under Section 3-102.2 of the Nursing Home Care Act. However,
13 if a demonstration project under that Act applies for a
14 certificate of need to convert to a nursing facility, it
15 shall meet the licensure and certificate of need requirements
16 in effect as of the date of application.
17 With the exception of those health care facilities
18 specifically included in this Section, nothing in this Act
19 shall be intended to include facilities operated as a part of
20 the practice of a physician or other licensed health care
21 professional, whether practicing in his individual capacity
22 or within the legal structure of any partnership, medical or
23 professional corporation, or unincorporated medical or
24 professional group. Further, this Act shall not apply to
25 physicians or other licensed health care professional's
26 practices where such practices are carried out in a portion
27 of a health care facility under contract with such health
28 care facility by a physician or by other licensed health care
29 professionals, whether practicing in his individual capacity
30 or within the legal structure of any partnership, medical or
31 professional corporation, or unincorporated medical or
32 professional groups. This Act shall apply to construction or
33 modification and to establishment by such health care
34 facility of such contracted portion which is subject to
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1 facility licensing requirements, irrespective of the party
2 responsible for such action or attendant financial
3 obligation.
4 "Person" means any one or more natural persons, legal
5 entities, governmental bodies other than federal, or any
6 combination thereof.
7 "Consumer" means any person other than a person (a) whose
8 major occupation currently involves or whose official
9 capacity within the last 12 months has involved the
10 providing, administering or financing of any type of health
11 care facility, (b) who is engaged in health research or the
12 teaching of health, (c) who has a material financial interest
13 in any activity which involves the providing, administering
14 or financing of any type of health care facility, or (d) who
15 is or ever has been a member of the immediate family of the
16 person defined by (a), (b), or (c).
17 "State Board" means the Health Facilities Planning Board.
18 "Construction or modification" means the establishment,
19 erection, building, alteration, reconstruction,
20 modernization, improvement, extension, discontinuation,
21 change of ownership, of or by a health care facility, or the
22 purchase or acquisition by or through a health care facility
23 of equipment or service for diagnostic or therapeutic
24 purposes or for facility administration or operation, or any
25 capital expenditure made by or on behalf of a health care
26 facility which exceeds the capital expenditure minimum;
27 however, any capital expenditure made by or on behalf of a
28 health care facility for the construction or modification of
29 a facility licensed under the Assisted Living and Shared
30 Housing Act shall be excluded from any obligations under this
31 Act.
32 "Establish" means the construction of a health care
33 facility or the replacement of an existing facility on
34 another site.
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1 "Major medical equipment" means medical equipment which
2 is used for the provision of medical and other health
3 services and which costs in excess of the capital expenditure
4 minimum, except that such term does not include medical
5 equipment acquired by or on behalf of a clinical laboratory
6 to provide clinical laboratory services if the clinical
7 laboratory is independent of a physician's office and a
8 hospital and it has been determined under Title XVIII of the
9 Social Security Act to meet the requirements of paragraphs
10 (10) and (11) of Section 1861(s) of such Act. In determining
11 whether medical equipment has a value in excess of the
12 capital expenditure minimum, the value of studies, surveys,
13 designs, plans, working drawings, specifications, and other
14 activities essential to the acquisition of such equipment
15 shall be included.
16 "Capital Expenditure" means an expenditure: (A) made by
17 or on behalf of a health care facility (as such a facility is
18 defined in this Act); and (B) which under generally accepted
19 accounting principles is not properly chargeable as an
20 expense of operation and maintenance, or is made to obtain by
21 lease or comparable arrangement any facility or part thereof
22 or any equipment for a facility or part; and which exceeds
23 the capital expenditure minimum.
24 For the purpose of this paragraph, the cost of any
25 studies, surveys, designs, plans, working drawings,
26 specifications, and other activities essential to the
27 acquisition, improvement, expansion, or replacement of any
28 plant or equipment with respect to which an expenditure is
29 made shall be included in determining if such expenditure
30 exceeds the capital expenditures minimum. Donations of
31 equipment or facilities to a health care facility which if
32 acquired directly by such facility would be subject to review
33 under this Act shall be considered capital expenditures, and
34 a transfer of equipment or facilities for less than fair
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1 market value shall be considered a capital expenditure for
2 purposes of this Act if a transfer of the equipment or
3 facilities at fair market value would be subject to review.
4 "Capital expenditure minimum" means $6,000,000, which
5 shall be annually adjusted to reflect the increase in
6 construction costs due to inflation, $1,000,000 for major
7 medical equipment and $2,000,000 for all other capital
8 expenditures; provided, however, that when a capital
9 expenditure is for the construction or modification of a
10 health and fitness center, "capital expenditure minimum"
11 means the capital expenditure minimum for all other capital
12 expenditures in effect on March 1, 2000, which shall be
13 annually adjusted to reflect the increase in construction
14 costs due to inflation, both of which shall be annually
15 adjusted to reflect the increase in construction costs due to
16 inflation.
17 "Non-clinical service area" means an area (i) for the
18 benefit of the patients, visitors, staff, or employees of a
19 health care facility and (ii) not directly related to the
20 diagnosis, treatment, or rehabilitation of persons receiving
21 services from the health care facility. "Non-clinical
22 service areas" include, but are not limited to, chapels; gift
23 shops; news stands; computer systems; tunnels, walkways, and
24 elevators; telephone systems; projects to comply with life
25 safety codes; educational facilities; student housing;
26 patient, employee, staff, and visitor dining areas;
27 administration and volunteer offices; modernization of
28 structural components (such as roof replacement and masonry
29 work); boiler repair or replacement; vehicle maintenance and
30 storage facilities; parking facilities; mechanical systems
31 for heating, ventilation, and air conditioning; loading
32 docks; and repair or replacement of carpeting, tile, wall
33 coverings, window coverings or treatments, or furniture.
34 Solely for the purpose of this definition, "non-clinical
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1 service area" does not include health and fitness centers.
2 "Areawide" means a major area of the State delineated on
3 a geographic, demographic, and functional basis for health
4 planning and for health service and having within it one or
5 more local areas for health planning and health service. The
6 term "region", as contrasted with the term "subregion", and
7 the word "area" may be used synonymously with the term
8 "areawide".
9 "Local" means a subarea of a delineated major area that
10 on a geographic, demographic, and functional basis may be
11 considered to be part of such major area. The term
12 "subregion" may be used synonymously with the term "local".
13 "Areawide health planning organization" or "Comprehensive
14 health planning organization" means the health systems agency
15 designated by the Secretary, Department of Health and Human
16 Services or any successor agency.
17 "Local health planning organization" means those local
18 health planning organizations that are designated as such by
19 the areawide health planning organization of the appropriate
20 area.
21 "Physician" means a person licensed to practice in
22 accordance with the Medical Practice Act of 1987, as amended.
23 "Licensed health care professional" means a person
24 licensed to practice a health profession under pertinent
25 licensing statutes of the State of Illinois.
26 "Director" means the Director of the Illinois Department
27 of Public Health.
28 "Agency" means the Illinois Department of Public Health.
29 "Comprehensive health planning" means health planning
30 concerned with the total population and all health and
31 associated problems that affect the well-being of people and
32 that encompasses health services, health manpower, and health
33 facilities; and the coordination among these and with those
34 social, economic, and environmental factors that affect
-11- LRB9106074MWgcam20
1 health.
2 "Alternative health care model" means a facility or
3 program authorized under the Alternative Health Care Delivery
4 Act.
5 "Out-of-state facility" means a person that is both (i)
6 licensed as a hospital or as an ambulatory surgery center
7 under the laws of another State or that qualifies as a
8 hospital or an ambulatory surgery center under regulations
9 adopted pursuant to the Social Security Act and (ii) not
10 licensed under the Ambulatory Surgical Treatment Center Act,
11 the Hospital Licensing Act, or the Nursing Home Care Act.
12 Affiliates of out-of-state facilities shall be considered
13 out-of-state facilities. Affiliates of Illinois licensed
14 health care facilities 100% owned by an Illinois licensed
15 health care facility, its parent, or Illinois physicians
16 licensed to practice medicine in all its branches shall not
17 be considered out-of-state facilities. Nothing in this
18 definition shall be construed to include an office or any
19 part of an office of a physician licensed to practice
20 medicine in all its branches in Illinois that is not required
21 to be licensed under the Ambulatory Surgical Treatment Center
22 Act.
23 (Source: P.A. 89-499, eff. 6-28-96; 89-530, eff. 7-19-96;
24 90-14, eff. 7-1-97.)
25 (Text of Section after amendment by P.A. 91-656)
26 Sec. 3. As used in this Act:
27 "Health care facilities" means and includes the following
28 facilities and organizations:
29 1. An ambulatory surgical treatment center required
30 to be licensed pursuant to the Ambulatory Surgical
31 Treatment Center Act;
32 2. An institution, place, building, or agency
33 required to be licensed pursuant to the Hospital
34 Licensing Act;
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1 3. Skilled and intermediate long term care
2 facilities licensed under the Nursing Home Care Act;
3 3. Skilled and intermediate long term care
4 facilities licensed under the Nursing Home Care Act;
5 4. Hospitals, nursing homes, ambulatory surgical
6 treatment centers, or kidney disease treatment centers
7 maintained by the State or any department or agency
8 thereof; and
9 5. Kidney disease treatment centers, including a
10 free-standing hemodialysis unit; and.
11 6. An institution, place, building, or room used
12 for the performance of outpatient surgical procedures
13 that is leased, owned, or operated by or on behalf of an
14 out-of-state facility.
15 No federally owned facility shall be subject to the
16 provisions of this Act, nor facilities used solely for
17 healing by prayer or spiritual means.
18 No facility licensed under the Supportive Residences
19 Licensing Act or the Assisted Living and Shared Housing Act
20 shall be subject to the provisions of this Act.
21 A facility designated as a supportive living facility
22 that is in good standing with the demonstration project
23 established under Section 5-5.01a of the Illinois Public Aid
24 Code shall not be subject to the provisions of this Act.
25 This Act does not apply to facilities granted waivers
26 under Section 3-102.2 of the Nursing Home Care Act. However,
27 if a demonstration project under that Act applies for a
28 certificate of need to convert to a nursing facility, it
29 shall meet the licensure and certificate of need requirements
30 in effect as of the date of application.
31 This Act shall not apply to the closure of an entity or a
32 portion of an entity licensed under the Nursing Home Care Act
33 that elects to convert, in whole or in part, to an assisted
34 living or shared housing establishment licensed under the
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1 Assisted Living and Shared Housing Establishment Act.
2 With the exception of those health care facilities
3 specifically included in this Section, nothing in this Act
4 shall be intended to include facilities operated as a part of
5 the practice of a physician or other licensed health care
6 professional, whether practicing in his individual capacity
7 or within the legal structure of any partnership, medical or
8 professional corporation, or unincorporated medical or
9 professional group. Further, this Act shall not apply to
10 physicians or other licensed health care professional's
11 practices where such practices are carried out in a portion
12 of a health care facility under contract with such health
13 care facility by a physician or by other licensed health care
14 professionals, whether practicing in his individual capacity
15 or within the legal structure of any partnership, medical or
16 professional corporation, or unincorporated medical or
17 professional groups. This Act shall apply to construction or
18 modification and to establishment by such health care
19 facility of such contracted portion which is subject to
20 facility licensing requirements, irrespective of the party
21 responsible for such action or attendant financial
22 obligation.
23 "Person" means any one or more natural persons, legal
24 entities, governmental bodies other than federal, or any
25 combination thereof.
26 "Consumer" means any person other than a person (a) whose
27 major occupation currently involves or whose official
28 capacity within the last 12 months has involved the
29 providing, administering or financing of any type of health
30 care facility, (b) who is engaged in health research or the
31 teaching of health, (c) who has a material financial interest
32 in any activity which involves the providing, administering
33 or financing of any type of health care facility, or (d) who
34 is or ever has been a member of the immediate family of the
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1 person defined by (a), (b), or (c).
2 "State Board" means the Health Facilities Planning Board.
3 "Construction or modification" means the establishment,
4 erection, building, alteration, reconstruction,
5 modernization, improvement, extension, discontinuation,
6 change of ownership, of or by a health care facility, or the
7 purchase or acquisition by or through a health care facility
8 of equipment or service for diagnostic or therapeutic
9 purposes or for facility administration or operation, or any
10 capital expenditure made by or on behalf of a health care
11 facility which exceeds the capital expenditure minimum;
12 however, any capital expenditure made by or on behalf of a
13 health care facility for the construction or modification of
14 a facility licensed under the Assisted Living and Shared
15 Housing Act shall be excluded from any obligations under this
16 Act.
17 "Establish" means the construction of a health care
18 facility or the replacement of an existing facility on
19 another site.
20 "Major medical equipment" means medical equipment which
21 is used for the provision of medical and other health
22 services and which costs in excess of the capital expenditure
23 minimum, except that such term does not include medical
24 equipment acquired by or on behalf of a clinical laboratory
25 to provide clinical laboratory services if the clinical
26 laboratory is independent of a physician's office and a
27 hospital and it has been determined under Title XVIII of the
28 Social Security Act to meet the requirements of paragraphs
29 (10) and (11) of Section 1861(s) of such Act. In determining
30 whether medical equipment has a value in excess of the
31 capital expenditure minimum, the value of studies, surveys,
32 designs, plans, working drawings, specifications, and other
33 activities essential to the acquisition of such equipment
34 shall be included.
-15- LRB9106074MWgcam20
1 "Capital Expenditure" means an expenditure: (A) made by
2 or on behalf of a health care facility (as such a facility is
3 defined in this Act); and (B) which under generally accepted
4 accounting principles is not properly chargeable as an
5 expense of operation and maintenance, or is made to obtain by
6 lease or comparable arrangement any facility or part thereof
7 or any equipment for a facility or part; and which exceeds
8 the capital expenditure minimum.
9 For the purpose of this paragraph, the cost of any
10 studies, surveys, designs, plans, working drawings,
11 specifications, and other activities essential to the
12 acquisition, improvement, expansion, or replacement of any
13 plant or equipment with respect to which an expenditure is
14 made shall be included in determining if such expenditure
15 exceeds the capital expenditures minimum. Donations of
16 equipment or facilities to a health care facility which if
17 acquired directly by such facility would be subject to review
18 under this Act shall be considered capital expenditures, and
19 a transfer of equipment or facilities for less than fair
20 market value shall be considered a capital expenditure for
21 purposes of this Act if a transfer of the equipment or
22 facilities at fair market value would be subject to review.
23 "Capital expenditure minimum" means $6,000,000, which
24 shall be annually adjusted to reflect the increase in
25 construction costs due to inflation, $1,000,000 for major
26 medical equipment and $2,000,000 for all other capital
27 expenditures; provided, however, that when a capital
28 expenditure is for the construction or modification of a
29 health and fitness center, "capital expenditure minimum"
30 means the capital expenditure minimum for all other capital
31 expenditures in effect on March 1, 2000, which shall be
32 annually adjusted to reflect the increase in construction
33 costs due to inflation, both of which shall be annually
34 adjusted to reflect the increase in construction costs due to
-16- LRB9106074MWgcam20
1 inflation.
2 "Non-clinical service area" means an area (i) for the
3 benefit of the patients, visitors, staff, or employees of a
4 health care facility and (ii) not directly related to the
5 diagnosis, treatment, or rehabilitation of persons receiving
6 services from the health care facility. "Non-clinical service
7 areas" include, but are not limited to, chapels; gift shops;
8 news stands; computer systems; tunnels, walkways, and
9 elevators; telephone systems; projects to comply with life
10 safety codes; educational facilities; student housing;
11 patient, employee, staff, and visitor dining areas;
12 administration and volunteer offices; modernization of
13 structural components (such as roof replacement and masonry
14 work); boiler repair or replacement; vehicle maintenance and
15 storage facilities; parking facilities; mechanical systems
16 for heating, ventilation, and air conditioning; loading
17 docks; and repair or replacement of carpeting, tile, wall
18 coverings, window coverings or treatments, or furniture.
19 Solely for the purpose of this definition, "non-clinical
20 service area" does not include health and fitness centers.
21 "Areawide" means a major area of the State delineated on
22 a geographic, demographic, and functional basis for health
23 planning and for health service and having within it one or
24 more local areas for health planning and health service. The
25 term "region", as contrasted with the term "subregion", and
26 the word "area" may be used synonymously with the term
27 "areawide".
28 "Local" means a subarea of a delineated major area that
29 on a geographic, demographic, and functional basis may be
30 considered to be part of such major area. The term
31 "subregion" may be used synonymously with the term "local".
32 "Areawide health planning organization" or "Comprehensive
33 health planning organization" means the health systems agency
34 designated by the Secretary, Department of Health and Human
-17- LRB9106074MWgcam20
1 Services or any successor agency.
2 "Local health planning organization" means those local
3 health planning organizations that are designated as such by
4 the areawide health planning organization of the appropriate
5 area.
6 "Physician" means a person licensed to practice in
7 accordance with the Medical Practice Act of 1987, as amended.
8 "Licensed health care professional" means a person
9 licensed to practice a health profession under pertinent
10 licensing statutes of the State of Illinois.
11 "Director" means the Director of the Illinois Department
12 of Public Health.
13 "Agency" means the Illinois Department of Public Health.
14 "Comprehensive health planning" means health planning
15 concerned with the total population and all health and
16 associated problems that affect the well-being of people and
17 that encompasses health services, health manpower, and health
18 facilities; and the coordination among these and with those
19 social, economic, and environmental factors that affect
20 health.
21 "Alternative health care model" means a facility or
22 program authorized under the Alternative Health Care Delivery
23 Act.
24 "Out-of-state facility" means a person that is both (i)
25 licensed as a hospital or as an ambulatory surgery center
26 under the laws of another State or that qualifies as a
27 hospital or an ambulatory surgery center under regulations
28 adopted pursuant to the Social Security Act and (ii) not
29 licensed under the Ambulatory Surgical Treatment Center Act,
30 the Hospital Licensing Act, or the Nursing Home Care Act.
31 Affiliates of out-of-state facilities shall be considered
32 out-of-state facilities. Affiliates of Illinois licensed
33 health care facilities 100% owned by an Illinois licensed
34 health care facility, its parent, or Illinois physicians
-18- LRB9106074MWgcam20
1 licensed to practice medicine in all its branches shall not
2 be considered out-of-state facilities. Nothing in this
3 definition shall be construed to include an office or any
4 part of an office of a physician licensed to practice
5 medicine in all its branches in Illinois that is not required
6 to be licensed under the Ambulatory Surgical Treatment Center
7 Act.
8 (Source: P.A. 90-14, eff. 7-1-97; 91-656, eff. 1-1-01.)
9 (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
10 Sec. 4. There is created the Health Facilities Planning
11 Board, which shall perform such functions as hereinafter
12 described in this Act.
13 The State Board shall consist of 15 voting members,
14 including: 8 consumer members; one member representing the
15 commercial health insurance industry in Illinois; one member
16 representing proprietary hospitals in Illinois; one member
17 who is actively engaged in the field of hospital management;
18 one member who is a professional nurse registered in
19 Illinois; one member who is a physician in active private
20 practice licensed in Illinois to practice medicine in all of
21 its branches; one member who is actively engaged in the field
22 of skilled nursing or intermediate care facility management;
23 and one member who is actively engaged in the administration
24 of an ambulatory surgical treatment center licensed under the
25 Ambulatory Surgical Treatment Center Act.
26 The State Board shall be appointed by the Governor, with
27 the advice and consent of the Senate. In making the
28 appointments, the Governor shall give consideration to
29 recommendations made by (1) the professional organizations
30 concerned with hospital management for the hospital
31 management appointment, (2) professional organizations
32 concerned with long term care facility management for the
33 long term care facility management appointment, (3)
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1 professional medical organizations for the physician
2 appointment, (4) professional nursing organizations for the
3 nurse appointment, and (5) professional organizations
4 concerned with ambulatory surgical treatment centers for the
5 ambulatory surgical treatment center appointment, and shall
6 appoint as consumer members individuals familiar with
7 community health needs but whose interest in the operation,
8 construction or utilization of health care facilities are
9 derived from factors other than those related to his
10 profession, business, or economic gain, and who represent, so
11 far as possible, different geographic areas of the State. Not
12 more than 8 of the appointments shall be of the same
13 political party.
14 The Secretary of Human Services, the Director of Public
15 Aid, and the Director of Public Health, or their designated
16 representatives, shall serve as ex-officio, non-voting
17 members of the State Board.
18 Of those appointed by the Governor as voting members,
19 each member shall hold office for a term of 3 years:
20 provided, that any member appointed to fill a vacancy
21 occurring prior to the expiration of the term for which his
22 predecessor was appointed shall be appointed for the
23 remainder of such term and the term of office of each
24 successor shall commence on July 1 of the year in which his
25 predecessor's term expires. In making original appointments
26 to the State Board, the Governor shall appoint 5 members for
27 a term of one year, 5 for a term of 2 years, and 3 for a term
28 of 3 years, and each of these terms of office shall commence
29 on July 1, 1974. The initial term of office for the members
30 appointed under this amendatory Act of 1996 shall begin on
31 July 1, 1996 and shall last for 2 years, and each subsequent
32 appointment shall be for a term of 3 years. Each member
33 shall hold office until his successor is appointed and
34 qualified.
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1 State Board members, while serving on business of the
2 State Board, shall receive actual and necessary travel and
3 subsistence expenses while so serving away from their places
4 of residence. In addition, while serving on business of the
5 State Board, each member shall receive compensation of $150
6 per day, except that such compensation shall not exceed
7 $7,500 in any one year for any member.
8 The State Board shall provide for its own organization
9 and procedures, including the selection of a Chairman and
10 such other officers as deemed necessary. The Director, with
11 concurrence of the State Board, shall name as full-time
12 Executive Secretary of the State Board, a person qualified in
13 health care facility planning and in administration. The
14 Agency shall provide administrative and staff support for the
15 State Board. The State Board shall advise the Director of
16 its budgetary and staff needs and consult with the Director
17 on annual budget preparation.
18 The State Board shall meet at least once each quarter, or
19 as often as the Chairman of the State Board deems necessary,
20 or upon the request of a majority of the members.
21 Eight members of the State Board shall constitute a
22 quorum. The affirmative vote of 8 of the members of the
23 State Board shall be necessary for any action requiring a
24 vote to be taken by the State Board. A vacancy in the
25 membership of the State Board shall not impair the right of a
26 quorum to exercise all the rights and perform all the duties
27 of the State Board as provided by this Act.
28 (Source: P.A. 89-674, eff. 8-14-96; 90-14, eff. 7-1-97.)
29 (20 ILCS 3960/4.1 new)
30 Sec. 4.1. Ethics laws.
31 (a) All State Board meetings are subject to the Open
32 Meetings Act.
33 (b) The State Board is subject to the State Gift Ban Act.
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1 (20 ILCS 3960/4.2 new)
2 Sec. 4.2. Ex parte communications.
3 (a) Except in the disposition of matters that agencies
4 are authorized by law to entertain or dispose of on an ex
5 parte basis including, but not limited to rule making, the
6 State Board, any State Board member, employee, or a hearing
7 officer shall not engage in ex parte communication, after an
8 application for a permit is received, in connection with the
9 substance of any application for a permit with any person or
10 party or the representative of any party.
11 (b) A State Board member or employee may communicate
12 with other members or employees and any State Board member or
13 hearing officer may have the aid and advice of one or more
14 personal assistants.
15 (c) An ex parte communication received by the State
16 Board, any State Board member, employee, or a hearing officer
17 shall be made a part of the record of the pending matter,
18 including all written communications, all written responses
19 to the communications, and a memorandum stating the substance
20 of all oral communications and all responses made and the
21 identity of each person from whom the ex parte communication
22 was received.
23 (d) "Ex parte communication" means a communication
24 between a person who is not a State Board member or employee
25 and State Board member or employee that reflects on the
26 substance of a pending State Board proceeding and that takes
27 place outside the record of the proceeding. Communications
28 regarding matters of procedure and practice, such as the
29 format of pleading, number of copies required, manner of
30 service, and status of proceedings, are not considered ex
31 parte communications. Technical assistance with respect to
32 an application, not intended to influence any decision on the
33 application, may be provided by employees to the applicant.
34 Any assistance shall be documented in writing by the
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1 applicant and employees within 10 business days after the
2 assistance is provided.
3 (e) For purposes of this Section, "employee" means a
4 person the State Board or the Agency employs on a full-time,
5 part-time, contract, or intern basis.
6 (f) The State Board, State Board member, or hearing
7 examiner presiding over the proceeding, in the event of a
8 violation of this Section, must take whatever action is
9 necessary to ensure that the violation does not prejudice any
10 party or adversely affect the fairness of the proceedings.
11 (g) Nothing in this Section shall be construed to
12 prevent the State Board or any member of the State Board from
13 consulting with the attorney for the State Board.
14 (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
15 Sec. 5. After effective dates set by the State Board,
16 no person shall construct, modify or establish a health care
17 facility or acquire major medical equipment without first
18 obtaining a permit or exemption from the State Board. The
19 State Board shall not delegate to the Executive Secretary of
20 the State Board or any other person or entity the authority
21 to grant permits or exemptions whenever the Executive
22 Secretary or other person or entity would be required to
23 exercise any discretion affecting the decision to grant a
24 permit or exemption. The State Board shall set effective
25 dates applicable to all or to each classification or category
26 of health care facilities and applicable to all or each type
27 of transaction for which a permit is required. Varying
28 effective dates may be set, providing the date or dates so
29 set shall apply uniformly statewide.
30 Notwithstanding any effective dates established by this
31 Act or by the State Board, no person shall be required to
32 obtain a permit for any purpose under this Act until the
33 State health facilities plan referred to in paragraph (4) of
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1 Section 12 of this Act has been approved and adopted by the
2 State Board subsequent to public hearings having been held
3 thereon.
4 A permit or exemption shall be obtained prior to the
5 acquisition of major medical equipment or to the construction
6 or modification of a health care facility which:
7 (a) requires a total capital expenditure in excess
8 of the capital expenditure minimum; or
9 (b) substantially changes the scope or changes the
10 functional operation of the facility; or
11 (c) changes the bed capacity of a health care
12 facility by increasing the total number of beds or by
13 distributing beds among various categories of service or
14 by relocating beds from one physical facility or site to
15 another by more than 10 beds or more than 10% of total
16 bed capacity as defined by the State Board, whichever is
17 less, over a 2 year period.
18 A permit shall be valid only for the defined construction
19 or modifications, site, amount and person named in the
20 application for such permit and shall not be transferable or
21 assignable. A permit shall be valid until such time as the
22 project has been completed, provided that (a) obligation of
23 the project occurs within 12 months following issuance of the
24 permit except for major construction projects such obligation
25 must occur within 18 months following issuance of the permit;
26 and (b) the project commences and proceeds to completion with
27 due diligence. Major construction projects, for the purposes
28 of this Act, shall include but are not limited to: projects
29 for the construction of new buildings; additions to existing
30 facilities; modernization projects whose cost is in excess of
31 $1,000,000 or 10% of the facilities' operating revenue,
32 whichever is less; and such other projects as the State Board
33 shall define and prescribe pursuant to this Act. The State
34 Board may extend the obligation period upon a showing of good
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1 cause by the permit holder. Permits for projects that have
2 not been obligated within the prescribed obligation period
3 shall expire on the last day of that period.
4 Persons who otherwise would be required to obtain a
5 permit shall be exempt from such requirement if the State
6 Board finds that with respect to establishing a new facility
7 or construction of new buildings or additions or
8 modifications to an existing facility, final plans and
9 specifications for such work have prior to October 1, 1974,
10 been submitted to and approved by the Department of Public
11 Health in accordance with the requirements of applicable
12 laws. Such exemptions shall be null and void after December
13 31, 1979 unless binding construction contracts were signed
14 prior to December 1, 1979 and unless construction has
15 commenced prior to December 31, 1979. Such exemptions shall
16 be valid until such time as the project has been completed
17 provided that the project proceeds to completion with due
18 diligence.
19 The acquisition by any person of major medical equipment
20 that will not be owned by or located in a health care
21 facility and that will not be used to provide services to
22 inpatients of a health care facility shall be exempt from
23 review provided that a notice is filed in accordance with
24 exemption requirements.
25 Notwithstanding any other provision of this Act, no
26 permit or exemption is required for the construction or
27 modification of a non-clinical service area of a health care
28 facility.
29 (Source: P.A. 88-18.)
30 (20 ILCS 3960/5.2 new)
31 Sec. 5.2. After the effective date of this amendatory
32 Act of the 91st General Assembly, no person shall establish,
33 construct, or modify an institution, place, building, or room
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1 used for the performance of outpatient surgical procedures
2 that is leased, owned, or operated by or on behalf of an
3 out-of-state facility without first obtaining a permit from
4 the State Board.
5 (20 ILCS 3960/5.3 new)
6 Sec. 5.3. In addition to the State Board's authority to
7 require reports, the State Board shall require each health
8 care facility to submit an annual report of all capital
9 expenditures in excess of $200,000 (which shall be annually
10 adjusted to reflect the increase in construction costs due to
11 inflation) made by the health care facility during the most
12 recent year. This annual report shall consist of a brief
13 description of the capital expenditure, the amount and method
14 of financing the capital expenditure, the certificate of need
15 project number if the project was reviewed, and the total
16 amount of capital expenditures obligated for the year.
17 (20 ILCS 3960/19.5 new)
18 Sec. 19.5. Audit. Upon the effective date of this
19 amendatory Act of the 91st General Assembly, the Auditor
20 General must commence an audit of the State Board to
21 determine:
22 (1) whether the State Board can demonstrate that the
23 certificate of need process is successful in controlling
24 health care costs, allowing public access to necessary
25 health services, and guaranteeing the availability of
26 quality health care to the general public;
27 (2) whether the State Board is following its adopted
28 rules and procedures;
29 (3) whether the State Board is consistent in
30 awarding and denying certificates of need; and
31 (4) whether the State Board's annual reports reflect
32 a cost savings to the State.
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1 The Auditor General must report on the results of the
2 audit to the General Assembly.
3 This Section is repealed when the Auditor General files
4 his or her report with the General Assembly.
5 (20 ILCS 3960/19.6 new)
6 Sec. 19.6. Repeal. This Act is repealed on July 1,
7 2003.
8 Section 20. The Illinois State Auditing Act is amended
9 by changing Section 3-1 as follows:
10 (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
11 Sec. 3-1. Jurisdiction of Auditor General. The Auditor
12 General has jurisdiction over all State agencies to make post
13 audits and investigations authorized by or under this Act or
14 the Constitution.
15 The Auditor General has jurisdiction over local
16 government agencies and private agencies only:
17 (a) to make such post audits authorized by or under
18 this Act as are necessary and incidental to a post audit
19 of a State agency or of a program administered by a State
20 agency involving public funds of the State, but this
21 jurisdiction does not include any authority to review
22 local governmental agencies in the obligation, receipt,
23 expenditure or use of public funds of the State that are
24 granted without limitation or condition imposed by law,
25 other than the general limitation that such funds be used
26 for public purposes;
27 (b) to make investigations authorized by or under
28 this Act or the Constitution; and
29 (c) to make audits of the records of local
30 government agencies to verify actual costs of
31 state-mandated programs when directed to do so by the
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1 Legislative Audit Commission at the request of the State
2 Board of Appeals under the State Mandates Act.
3 In addition to the foregoing, the Auditor General may
4 conduct an audit of the Metropolitan Pier and Exposition
5 Authority, the Regional Transportation Authority, the
6 Suburban Bus Division, the Commuter Rail Division and the
7 Chicago Transit Authority and any other subsidized carrier
8 when authorized by the Legislative Audit Commission. Such
9 audit may be a financial, management or program audit, or any
10 combination thereof.
11 The audit shall determine whether they are operating in
12 accordance with all applicable laws and regulations. Subject
13 to the limitations of this Act, the Legislative Audit
14 Commission may by resolution specify additional
15 determinations to be included in the scope of the audit.
16 The Auditor General may also conduct an audit, when
17 authorized by the Legislative Audit Commission, of any
18 hospital which receives 10% or more of its gross revenues
19 from payments from the State of Illinois, Department of
20 Public Aid, Medical Assistance Program.
21 The Auditor General is authorized to conduct financial
22 and compliance audits of the Illinois Distance Learning
23 Foundation and the Illinois Conservation Foundation.
24 As soon as practical after the effective date of this
25 amendatory Act of 1995, the Auditor General shall conduct a
26 compliance and management audit of the City of Chicago and
27 any other entity with regard to the operation of Chicago
28 O'Hare International Airport, Chicago Midway Airport and
29 Merrill C. Meigs Field. The audit shall include, but not be
30 limited to, an examination of revenues, expenses, and
31 transfers of funds; purchasing and contracting policies and
32 practices; staffing levels; and hiring practices and
33 procedures. When completed, the audit required by this
34 paragraph shall be distributed in accordance with Section
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1 3-14.
2 The Auditor General shall conduct a financial and
3 compliance and program audit of distributions from the
4 Municipal Economic Development Fund during the immediately
5 preceding calendar year pursuant to Section 8-403.1 of the
6 Public Utilities Act at no cost to the city, village, or
7 incorporated town that received the distributions.
8 The Auditor General must conduct an audit of the Health
9 Facilities Planning Board pursuant to Section 19.5 of the
10 Illinois Health Facilities Planning Act.
11 (Source: P.A. 89-386, eff. 8-18-95; 90-813, eff. 1-29-99.)
12 Section 95. No acceleration or delay. Where this Act
13 makes changes in a statute that is represented in this Act by
14 text that is not yet or no longer in effect (for example, a
15 Section represented by multiple versions), the use of that
16 text does not accelerate or delay the taking effect of (i)
17 the changes made by this Act or (ii) provisions derived from
18 any other Public Act.
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.".