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91_SB0807sam001
LRB9106074MWgcam01
1 AMENDMENT TO SENATE BILL 807
2 AMENDMENT NO. . Amend Senate Bill 807 by replacing
3 the title with the following:
4 "AN ACT concerning health facility planning."; 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, 5, 6, and 12 and by
10 adding Sections 4.1 and 19.5 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.
30 No federally owned facility shall be subject to the
31 provisions of this Act, nor facilities used solely for
32 healing by prayer or spiritual means.
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1 No facility licensed under the Supportive Residences
2 Licensing Act shall be subject to the provisions of this Act.
3 A facility designated as a supportive living facility
4 that is in good standing with the demonstration project
5 established under Section 5-5.01a of the Illinois Public Aid
6 Code shall not be subject to the provisions of this Act.
7 This Act does not apply to facilities granted waivers
8 under Section 3-102.2 of the Nursing Home Care Act. However,
9 if a demonstration project under that Act applies for a
10 certificate of need to convert to a nursing facility, it
11 shall meet the licensure and certificate of need requirements
12 in effect as of the date of application.
13 With the exception of those health care facilities
14 specifically included in this Section, nothing in this Act
15 shall be intended to include facilities operated as a part of
16 the practice of a physician or other licensed health care
17 professional, whether practicing in his individual capacity
18 or within the legal structure of any partnership, medical or
19 professional corporation, or unincorporated medical or
20 professional group. Further, this Act shall not apply to
21 physicians or other licensed health care professional's
22 practices where such practices are carried out in a portion
23 of a health care facility under contract with such health
24 care facility by a physician or by other licensed health care
25 professionals, whether practicing in his individual capacity
26 or within the legal structure of any partnership, medical or
27 professional corporation, or unincorporated medical or
28 professional groups. This Act shall apply to construction or
29 modification and to establishment by such health care
30 facility of such contracted portion which is subject to
31 facility licensing requirements, irrespective of the party
32 responsible for such action or attendant financial
33 obligation.
34 "Person" means any one or more natural persons, legal
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1 entities, governmental bodies other than federal, or any
2 combination thereof.
3 "Consumer" means any person other than a person (a) whose
4 major occupation currently involves or whose official
5 capacity within the last 12 months has involved the
6 providing, administering or financing of any type of health
7 care facility, (b) who is engaged in health research or the
8 teaching of health, (c) who has a material financial interest
9 in any activity which involves the providing, administering
10 or financing of any type of health care facility, or (d) who
11 is or ever has been a member of the immediate family of the
12 person defined by (a), (b), or (c).
13 "State Board" means the Health Facilities Planning Board.
14 "Construction or modification" means the establishment,
15 erection, building, alteration, reconstruction,
16 modernization, improvement, extension, discontinuation,
17 change of ownership, of or by a health care facility, or the
18 purchase or acquisition by or through a health care facility
19 of equipment or service for diagnostic or therapeutic
20 purposes or for facility administration or operation, or any
21 capital expenditure made by or on behalf of a health care
22 facility which exceeds the capital expenditure minimum.
23 "Establish" means the construction of a health care
24 facility or the replacement of an existing facility on
25 another site.
26 "Change of ownership of a health care facility" means a
27 change in the person who has ownership or control of a health
28 care facility's physical plant and capital assets. The
29 following types of transactions indicate a change in
30 ownership: sale, transfer, acquisition, lease, change of
31 sponsorship, or other means of transferring control.
32 "Related person" means any person who (i) is at least 50%
33 owned, either directly or indirectly, by either the health
34 care facility or a person owning, either directly or
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1 indirectly, at least 50% of the health care facility or (ii)
2 owns, either directly or indirectly, at least 50% of the
3 health care facility.
4 "Major medical equipment" means medical equipment which
5 is used for the provision of medical and other health
6 services and which costs in excess of the capital expenditure
7 minimum, except that such term does not include medical
8 equipment acquired by or on behalf of a clinical laboratory
9 to provide clinical laboratory services if the clinical
10 laboratory is independent of a physician's office and a
11 hospital and it has been determined under Title XVIII of the
12 Social Security Act to meet the requirements of paragraphs
13 (10) and (11) of Section 1861(s) of such Act. In determining
14 whether medical equipment has a value in excess of the
15 capital expenditure minimum, the value of studies, surveys,
16 designs, plans, working drawings, specifications, and other
17 activities essential to the acquisition of such equipment
18 shall be included.
19 "Capital Expenditure" means an expenditure: (A) made by
20 or on behalf of a health care facility (as such a facility is
21 defined in this Act); and (B) which under generally accepted
22 accounting principles is not properly chargeable as an
23 expense of operation and maintenance, or is made to obtain by
24 lease or comparable arrangement any facility or part thereof
25 or any equipment for a facility or part; and which exceeds
26 the capital expenditure minimum.
27 For the purpose of this paragraph, the cost of any
28 studies, surveys, designs, plans, working drawings,
29 specifications, and other activities essential to the
30 acquisition, improvement, expansion, or replacement of any
31 plant or equipment with respect to which an expenditure is
32 made shall be included in determining if such expenditure
33 exceeds the capital expenditures minimum. Donations of
34 equipment or facilities to a health care facility which if
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1 acquired directly by such facility would be subject to review
2 under this Act shall be considered capital expenditures, and
3 a transfer of equipment or facilities for less than fair
4 market value shall be considered a capital expenditure for
5 purposes of this Act if a transfer of the equipment or
6 facilities at fair market value would be subject to review.
7 "Capital expenditure minimum" means $7,000,000 $1,000,000
8 for major medical equipment and $2,000,000 for all clinical
9 other capital expenditures, both of which shall be annually
10 adjusted to reflect the increase in construction costs due to
11 inflation.
12 "Non-clinical service area" means an area that is not
13 directly related to the diagnosis, treatment, or
14 rehabilitation of persons receiving services from the health
15 care facility. "Non-clinical service areas" include, but are
16 not limited to, chapels; gift shops; news stands and other
17 retail space; tunnels, walkways, and elevators; computer
18 systems; telephone systems; projects to comply with life
19 safety codes; educational facilities; student housing;
20 residential units and apartments; restaurants, cafeterias,
21 snack bars, and all other non-patient dining areas;
22 administration and volunteer offices; modernization of
23 structural components (such as roof replacement and masonry
24 work); boiler repair or replacement; vehicle maintenance and
25 storage facilities; parking facilities; mechanical systems
26 for heating, ventilation, and air conditioning; loading
27 docks; and repair or replacement of carpeting, tile, wall
28 coverings, window coverings or treatments, or furniture.
29 "Areawide" means a major area of the State delineated on
30 a geographic, demographic, and functional basis for health
31 planning and for health service and having within it one or
32 more local areas for health planning and health service. The
33 term "region", as contrasted with the term "subregion", and
34 the word "area" may be used synonymously with the term
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1 "areawide".
2 "Local" means a subarea of a delineated major area that
3 on a geographic, demographic, and functional basis may be
4 considered to be part of such major area. The term
5 "subregion" may be used synonymously with the term "local".
6 "Areawide health planning organization" or "Comprehensive
7 health planning organization" means the health systems agency
8 designated by the Secretary, Department of Health and Human
9 Services or any successor agency.
10 "Local health planning organization" means those local
11 health planning organizations that are designated as such by
12 the areawide health planning organization of the appropriate
13 area.
14 "Physician" means a person licensed to practice in
15 accordance with the Medical Practice Act of 1987, as amended.
16 "Licensed health care professional" means a person
17 licensed to practice a health profession under pertinent
18 licensing statutes of the State of Illinois.
19 "Director" means the Director of the Illinois Department
20 of Public Health.
21 "Agency" means the Illinois Department of Public Health.
22 "Comprehensive health planning" means health planning
23 concerned with the total population and all health and
24 associated problems that affect the well-being of people and
25 that encompasses health services, health manpower, and health
26 facilities; and the coordination among these and with those
27 social, economic, and environmental factors that affect
28 health.
29 "Alternative health care model" means a facility or
30 program authorized under the Alternative Health Care Delivery
31 Act.
32 (Source: P.A. 89-499, eff. 6-28-96; 89-530, eff. 7-19-96;
33 90-14, eff. 7-1-97.)
34 (Text of Section after amendment by P.A. 91-656)
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1 Sec. 3. As used in this Act:
2 "Health care facilities" means and includes the following
3 facilities and organizations:
4 1. An ambulatory surgical treatment center required
5 to be licensed pursuant to the Ambulatory Surgical
6 Treatment Center Act;
7 2. An institution, place, building, or agency
8 required to be licensed pursuant to the Hospital
9 Licensing Act;
10 3. Skilled and intermediate long term care
11 facilities licensed under the Nursing Home Care Act;
12 4. Hospitals, nursing homes, ambulatory surgical
13 treatment centers, or kidney disease treatment centers
14 maintained by the State or any department or agency
15 thereof; and
16 5. Kidney disease treatment centers, including a
17 free-standing hemodialysis unit.
18 No federally owned facility shall be subject to the
19 provisions of this Act, nor facilities used solely for
20 healing by prayer or spiritual means.
21 No facility licensed under the Supportive Residences
22 Licensing Act or the Assisted Living and Shared Housing Act
23 shall be subject to the provisions of this Act.
24 A facility designated as a supportive living facility
25 that is in good standing with the demonstration project
26 established under Section 5-5.01a of the Illinois Public Aid
27 Code shall not be subject to the provisions of this Act.
28 This Act does not apply to facilities granted waivers
29 under Section 3-102.2 of the Nursing Home Care Act. However,
30 if a demonstration project under that Act applies for a
31 certificate of need to convert to a nursing facility, it
32 shall meet the licensure and certificate of need requirements
33 in effect as of the date of application.
34 This Act shall not apply to the closure of an entity or a
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1 portion of an entity licensed under the Nursing Home Care Act
2 that elects to convert, in whole or in part, to an assisted
3 living or shared housing establishment licensed under the
4 Assisted Living and Shared Housing Establishment Act.
5 With the exception of those health care facilities
6 specifically included in this Section, nothing in this Act
7 shall be intended to include facilities operated as a part of
8 the practice of a physician or other licensed health care
9 professional, whether practicing in his individual capacity
10 or within the legal structure of any partnership, medical or
11 professional corporation, or unincorporated medical or
12 professional group. Further, this Act shall not apply to
13 physicians or other licensed health care professional's
14 practices where such practices are carried out in a portion
15 of a health care facility under contract with such health
16 care facility by a physician or by other licensed health care
17 professionals, whether practicing in his individual capacity
18 or within the legal structure of any partnership, medical or
19 professional corporation, or unincorporated medical or
20 professional groups. This Act shall apply to construction or
21 modification and to establishment by such health care
22 facility of such contracted portion which is subject to
23 facility licensing requirements, irrespective of the party
24 responsible for such action or attendant financial
25 obligation.
26 "Person" means any one or more natural persons, legal
27 entities, governmental bodies other than federal, or any
28 combination thereof.
29 "Consumer" means any person other than a person (a) whose
30 major occupation currently involves or whose official
31 capacity within the last 12 months has involved the
32 providing, administering or financing of any type of health
33 care facility, (b) who is engaged in health research or the
34 teaching of health, (c) who has a material financial interest
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1 in any activity which involves the providing, administering
2 or financing of any type of health care facility, or (d) who
3 is or ever has been a member of the immediate family of the
4 person defined by (a), (b), or (c).
5 "State Board" means the Health Facilities Planning Board.
6 "Construction or modification" means the establishment,
7 erection, building, alteration, reconstruction,
8 modernization, improvement, extension, discontinuation,
9 change of ownership, of or by a health care facility, or the
10 purchase or acquisition by or through a health care facility
11 of equipment or service for diagnostic or therapeutic
12 purposes or for facility administration or operation, or any
13 capital expenditure made by or on behalf of a health care
14 facility which exceeds the capital expenditure minimum.
15 "Establish" means the construction of a health care
16 facility or the replacement of an existing facility on
17 another site.
18 "Change of ownership of a health care facility" means a
19 change in the person who has ownership or control of a health
20 care facility's physical plant and capital assets. The
21 following types of transactions indicate a change in
22 ownership: sale, transfer, acquisition, lease, change of
23 sponsorship, or other means of transferring control.
24 "Related person" means any person who (i) is at least 50%
25 owned, either directly or indirectly, by either the health
26 care facility or a person owning, either directly or
27 indirectly, at least 50% of the health care facility or (ii)
28 owns, either directly or indirectly, at least 50% of the
29 health care facility.
30 "Major medical equipment" means medical equipment which
31 is used for the provision of medical and other health
32 services and which costs in excess of the capital expenditure
33 minimum, except that such term does not include medical
34 equipment acquired by or on behalf of a clinical laboratory
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1 to provide clinical laboratory services if the clinical
2 laboratory is independent of a physician's office and a
3 hospital and it has been determined under Title XVIII of the
4 Social Security Act to meet the requirements of paragraphs
5 (10) and (11) of Section 1861(s) of such Act. In determining
6 whether medical equipment has a value in excess of the
7 capital expenditure minimum, the value of studies, surveys,
8 designs, plans, working drawings, specifications, and other
9 activities essential to the acquisition of such equipment
10 shall be included.
11 "Capital Expenditure" means an expenditure: (A) made by
12 or on behalf of a health care facility (as such a facility is
13 defined in this Act); and (B) which under generally accepted
14 accounting principles is not properly chargeable as an
15 expense of operation and maintenance, or is made to obtain by
16 lease or comparable arrangement any facility or part thereof
17 or any equipment for a facility or part; and which exceeds
18 the capital expenditure minimum.
19 For the purpose of this paragraph, the cost of any
20 studies, surveys, designs, plans, working drawings,
21 specifications, and other activities essential to the
22 acquisition, improvement, expansion, or replacement of any
23 plant or equipment with respect to which an expenditure is
24 made shall be included in determining if such expenditure
25 exceeds the capital expenditures minimum. Donations of
26 equipment or facilities to a health care facility which if
27 acquired directly by such facility would be subject to review
28 under this Act shall be considered capital expenditures, and
29 a transfer of equipment or facilities for less than fair
30 market value shall be considered a capital expenditure for
31 purposes of this Act if a transfer of the equipment or
32 facilities at fair market value would be subject to review.
33 "Capital expenditure minimum" means $7,000,000 $1,000,000
34 for major medical equipment and $2,000,000 for all clinical
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1 other capital expenditures, both of which shall be annually
2 adjusted to reflect the increase in construction costs due to
3 inflation.
4 "Non-clinical service area" means an area that is not
5 directly related to the diagnosis, treatment, or
6 rehabilitation of persons receiving services from the health
7 care facility. "Non-clinical service areas" include, but are
8 not limited to, chapels; gift shops; news stands and other
9 retail space; tunnels, walkways, and elevators; computer
10 systems; telephone systems; projects to comply with life
11 safety codes; educational facilities; student housing;
12 residential units and apartments; restaurants, cafeterias,
13 snack bars, and all other non-patient dining areas;
14 administration and volunteer offices; modernization of
15 structural components (such as roof replacement and masonry
16 work); boiler repair or replacement; vehicle maintenance and
17 storage facilities; parking facilities; mechanical systems
18 for heating, ventilation, and air conditioning; loading
19 docks; and repair or replacement of carpeting, tile, wall
20 coverings, window coverings or treatments, or furniture.
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
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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 (Source: P.A. 90-14, eff. 7-1-97; 91-656, eff. 1-1-01.)
25 (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
26 Sec. 4. There is created the Health Facilities Planning
27 Board, which shall perform such functions as hereinafter
28 described in this Act.
29 The State Board shall consist of 15 voting members,
30 including: 8 consumer members; one member representing the
31 commercial health insurance industry in Illinois; one member
32 representing proprietary hospitals in Illinois; one member
33 who is actively engaged in the field of hospital management;
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1 one member who is a professional nurse registered in
2 Illinois; one member who is a physician in active private
3 practice licensed in Illinois to practice medicine in all of
4 its branches; one member who is actively engaged in the field
5 of skilled nursing or intermediate care facility management;
6 and one member who is actively engaged in the administration
7 of an ambulatory surgical treatment center licensed under the
8 Ambulatory Surgical Treatment Center Act.
9 The State Board shall be appointed by the Governor, with
10 the advice and consent of the Senate. In making the
11 appointments, the Governor shall give consideration to
12 recommendations made by (1) the professional organizations
13 concerned with hospital management for the hospital
14 management appointment, (2) professional organizations
15 concerned with long term care facility management for the
16 long term care facility management appointment, (3)
17 professional medical organizations for the physician
18 appointment, (4) professional nursing organizations for the
19 nurse appointment, and (5) professional organizations
20 concerned with ambulatory surgical treatment centers for the
21 ambulatory surgical treatment center appointment, and shall
22 appoint as consumer members individuals familiar with
23 community health needs but whose interest in the operation,
24 construction or utilization of health care facilities are
25 derived from factors other than those related to his
26 profession, business, or economic gain, and who represent, so
27 far as possible, different geographic areas of the State. Not
28 more than 8 of the appointments shall be of the same
29 political party.
30 The Secretary of Human Services, the Director of Public
31 Aid, and the Director of Public Health, or their designated
32 representatives, shall serve as ex-officio, non-voting
33 members of the State Board.
34 Of those appointed by the Governor as voting members,
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1 each member shall hold office for a term of 3 years:
2 provided, that any member appointed to fill a vacancy
3 occurring prior to the expiration of the term for which his
4 predecessor was appointed shall be appointed for the
5 remainder of such term and the term of office of each
6 successor shall commence on July 1 of the year in which his
7 predecessor's term expires. In making original appointments
8 to the State Board, the Governor shall appoint 5 members for
9 a term of one year, 5 for a term of 2 years, and 3 for a term
10 of 3 years, and each of these terms of office shall commence
11 on July 1, 1974. The initial term of office for the members
12 appointed under this amendatory Act of 1996 shall begin on
13 July 1, 1996 and shall last for 2 years, and each subsequent
14 appointment shall be for a term of 3 years. Each member
15 shall hold office until his successor is appointed and
16 qualified.
17 Notwithstanding any other provision of this Section, and
18 except for non-voting ex officio members, beginning on
19 January 1, 2001, no person may be appointed to or serve as a
20 member of the State Board if that person has served 3 or more
21 consecutive terms.
22 State Board members, while serving on business of the
23 State Board, shall receive actual and necessary travel and
24 subsistence expenses while so serving away from their places
25 of residence. In addition, while serving on business of the
26 State Board, each member shall receive compensation of $150
27 per day, except that such compensation shall not exceed
28 $7,500 in any one year for any member.
29 The State Board shall provide for its own organization
30 and procedures, including the selection of a Chairman and
31 such other officers as deemed necessary. The Director, with
32 concurrence of the State Board, shall name as full-time
33 Executive Secretary of the State Board, a person qualified in
34 health care facility planning and in administration. The
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1 Agency shall provide administrative and staff support for the
2 State Board. The State Board shall advise the Director of
3 its budgetary and staff needs and consult with the Director
4 on annual budget preparation.
5 The State Board shall meet at least once each quarter, or
6 as often as the Chairman of the State Board deems necessary,
7 or upon the request of a majority of the members.
8 Eight members of the State Board shall constitute a
9 quorum. The affirmative vote of 8 of the members of the
10 State Board shall be necessary for any action requiring a
11 vote to be taken by the State Board. A vacancy in the
12 membership of the State Board shall not impair the right of a
13 quorum to exercise all the rights and perform all the duties
14 of the State Board as provided by this Act.
15 (Source: P.A. 89-674, eff. 8-14-96; 90-14, eff. 7-1-97.)
16 (20 ILCS 3960/4.1 new)
17 Sec. 4.1. Ethics laws.
18 (a) All State Board meetings are subject to the Open
19 Meetings Act.
20 (b) The State Board is subject to the State Gift Ban Act.
21 (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
22 Sec. 5. After effective dates set by the State Board,
23 no person shall construct, modify or establish a health care
24 facility or acquire major medical equipment without first
25 obtaining a permit or exemption from the State Board. The
26 State Board shall not delegate to the Executive Secretary of
27 the State Board or any other person or entity the authority
28 to grant permits or exemptions whenever the Executive
29 Secretary or other person or entity would be required to
30 exercise any discretion affecting the decision to grant a
31 permit or exemption. The State Board shall set effective
32 dates applicable to all or to each classification or category
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1 of health care facilities and applicable to all or each type
2 of transaction for which a permit is required. Varying
3 effective dates may be set, providing the date or dates so
4 set shall apply uniformly statewide.
5 Notwithstanding any effective dates established by this
6 Act or by the State Board, no person shall be required to
7 obtain a permit for any purpose under this Act until the
8 State health facilities plan referred to in paragraph (4) of
9 Section 12 of this Act has been approved and adopted by the
10 State Board subsequent to public hearings having been held
11 thereon.
12 A permit or exemption shall be obtained prior to the
13 acquisition of major medical equipment or to the construction
14 or modification of a health care facility which:
15 (a) requires a total capital expenditure in excess
16 of the capital expenditure minimum; or
17 (b) substantially changes the scope or changes the
18 functional operation of the facility; or
19 (c) changes the bed capacity of a health care
20 facility by increasing the total number of beds or by
21 distributing beds among various categories of service or
22 by relocating beds from one physical facility or site to
23 another by more than 10 beds or more than 10% of total
24 bed capacity of beds used for a single licensure category
25 as defined by the State Board, whichever is less, over a
26 2 year period.
27 A permit shall be valid only for the defined construction
28 or modifications, site, amount and person named in the
29 application for such permit and shall not be transferable or
30 assignable, except for permits or exemptions for projects
31 that are pending when the holder of the permit or exemption
32 undergoes a change of ownership. A permit shall be valid
33 until such time as the project has been completed, provided
34 that (a) obligation of the project occurs within 12 months
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1 following issuance of the permit except for major
2 construction projects such obligation must occur within 18
3 months following issuance of the permit; and (b) the project
4 commences and proceeds to completion with due diligence.
5 Major construction projects, for the purposes of this Act,
6 shall include but are not limited to: projects for the
7 construction of new buildings; additions to existing
8 facilities; modernization projects whose cost is in excess of
9 $1,000,000 or 10% of the facilities' operating revenue,
10 whichever is less; and such other projects as the State Board
11 shall define and prescribe pursuant to this Act. The State
12 Board may extend the obligation period upon a showing of good
13 cause by the permit holder. Permits for projects that have
14 not been obligated within the prescribed obligation period
15 shall expire on the last day of that period.
16 Persons who otherwise would be required to obtain a
17 permit shall be exempt from such requirement if the State
18 Board finds that with respect to establishing a new facility
19 or construction of new buildings or additions or
20 modifications to an existing facility, final plans and
21 specifications for such work have prior to October 1, 1974,
22 been submitted to and approved by the Department of Public
23 Health in accordance with the requirements of applicable
24 laws. Such exemptions shall be null and void after December
25 31, 1979 unless binding construction contracts were signed
26 prior to December 1, 1979 and unless construction has
27 commenced prior to December 31, 1979. Such exemptions shall
28 be valid until such time as the project has been completed
29 provided that the project proceeds to completion with due
30 diligence.
31 The acquisition by any person of major medical equipment
32 that will not be owned by or located in a health care
33 facility and that will not be used to provide services to
34 inpatients of a health care facility shall be exempt from
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1 review provided that a notice is filed in accordance with
2 exemption requirements.
3 Notwithstanding any other provision of this Act, no
4 permit or exemption is required for the construction or
5 modification of a non-clinical service area of a health care
6 facility.
7 Notwithstanding any other provision of this Act, no
8 permit or exemption is required for the replacement of a
9 health care facility that was granted a permit or exemption
10 when the facility was initially constructed.
11 (Source: P.A. 88-18.)
12 (20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
13 Sec. 6. (a) An application for a permit or exemption
14 shall be made to the State Board upon forms provided by the
15 State Board. This application shall contain such information
16 as the State Board deems necessary. Such application shall
17 include affirmative evidence on which the Director may make
18 the findings required under this Section and upon which the
19 State Board may make its decision on the approval or denial
20 of the permit or exemption.
21 (b) The State Board shall establish by regulation the
22 procedures and requirements regarding issuance of exemptions.
23 An exemption application shall be approved when the required
24 information is submitted. Projects eligible for an exemption
25 rather than a permit include, but are not limited to:
26 (1) changes of ownership of a health care facility;
27 and
28 (2) discontinuation of a category of service.
29 (c) An exemption for a change of ownership of a health
30 care facility between unrelated persons shall be approved
31 when the following information (or some lesser amount of
32 information determined by rule by the State Board) is
33 submitted:
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1 (1) the name and address of the person proposing to
2 acquire the facility;
3 (2) the name and location of the health care
4 facility to be acquired;
5 (3) a signed certification stating that the
6 categories of service and the number of beds in the
7 facility will not substantially change;
8 (4) documents that detail the conditions and terms
9 of any lease or purchase agreement;
10 (5) the most recent audited financial statements of
11 the applicant and a statement by the applicant specifying
12 the source of the funds that will be used to acquire the
13 facility;
14 (6) the anticipated acquisition price and the fair
15 market value of the facility being acquired;
16 (7) proof of the publication of the required legal
17 notice of the change of ownership;
18 (8) documentation from the Office of the Secretary
19 of State stating that the applicant is registered to
20 conduct business in Illinois and is in good standing;
21 (9) a certification stating that the acquisition or
22 purchase agreement has not yet been entered into or
23 executed or, if the acquisition or purchase agreement has
24 been executed, that it contains a clause stating that the
25 transaction is contingent upon the receipt of approval
26 from the State Board;
27 (10) certification stating that any projects for
28 which permits have been issued will be completed by the
29 applicant;
30 (11) if the change of ownership concerns a
31 government or not-for-profit facility or a proprietary
32 hospital, a certified copy of the transcript of the
33 required public hearing and copies of all exhibits,
34 documents, and other written materials presented at the
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1 hearing;
2 (12) if the change of ownership concerns a
3 government or not-for-profit facility or a proprietary
4 hospital, copies of the by-laws of the existing facility
5 and of the applicant; and
6 (13) if the change of ownership concerns a
7 government or not-for-profit facility or a proprietary
8 hospital, a written response addressing the review
9 criteria set forth in 77 Ill.Adm.Code 1110.240 in effect
10 on January 1, 2000. The response must be made available
11 for public inspection on the premises of the health care
12 facility at least 10 days before the public hearing
13 required under this Section.
14 (d) Any person requesting an exemption for a change of
15 ownership of a health care facility between unrelated persons
16 must publish a legal notice of the change in a newspaper of
17 general circulation in the community in which the facility is
18 located. The notice must provide the following information:
19 (1) the name and address of the facility for which
20 the exemption is sought;
21 (2) the name and address of the applicant requesting
22 the exemption;
23 (3) the nature of the transaction (such as purchase,
24 lease, or transfer of stock of the licensed entity);
25 (4) if the entity that will be assuming ownership of
26 the facility is a wholly owned subsidiary of a
27 corporation, the name and address of the parent
28 corporation;
29 (5) a statement that all categories of service and
30 beds provided will be maintained;
31 (6) if the change of ownership concerns a government
32 or not-for-profit facility or a proprietary hospital,
33 notice of the public hearing containing the information
34 required under subsection (e); and
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1 (7) the name, title, address, and phone number of a
2 person from whom interested parties may obtain
3 information concerning the proposed transaction.
4 (e) Any person requesting an exemption for a change of
5 ownership of a government or not-for-profit facility or
6 proprietary hospital between unrelated persons must conduct a
7 public hearing in the community in which the facility is
8 located. The hearing must be held in a place of reasonable
9 size and accessibility. A full and complete written
10 transcript of the proceeding must be made. The applicant
11 must include in the notice required under subsection (d) the
12 following information:
13 (1) a statement concerning the anticipated benefits
14 to the community of the proposed changes in ownership;
15 (2) a statement of the anticipated or potential cost
16 savings to the community and the facility, if any, that
17 will result from the change in ownership;
18 (3) a description of the mechanism that will be used
19 to assure quality control;
20 (4) a description of the applicant's organizational
21 structure, including a list of controlling or subsidiary
22 persons;
23 (5) a description of the selection process that the
24 acquiring entity will use in selecting the facility's
25 board of directors;
26 (6) a statement that the applicant has prepared a
27 written response addressing the review criteria contained
28 in 77 Ill.Adm.Code 1110.240 in effect on January 1, 2000
29 and a statement that the response is available for public
30 review on the premises of the health care facility;
31 (7) the location, time, and date of the hearing; and
32 (8) a statement that the hearing is an open public
33 meeting and that an opportunity to be heard will be given
34 to all persons wishing to present oral or written
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1 comments.
2 The public hearing must be held not less then 10 days and
3 not more than 30 days after the legal notice is published.
4 (f) An exemption for a change of ownership of a health
5 care facility between related persons shall be approved when
6 the following information (or some lesser amount of
7 information determined by rule by the State Board) is
8 submitted:
9 (1) the name and address of the person proposing to
10 acquire the facility;
11 (2) the name and location of the health care
12 facility to be acquired;
13 (3) a signed certification stating that the
14 categories of service and the number of beds in the
15 facility will not substantially change;
16 (4) documents that detail the conditions and terms
17 of any lease or purchase agreement;
18 (5) the most recent audited financial statements of
19 the applicant and a statement by the applicant specifying
20 the source of the funds that will be used to acquire the
21 facility;
22 (6) the anticipated acquisition price and the fair
23 market value of the facility being acquired;
24 (7) documentation from the Office of the Secretary
25 of State stating that the applicant is registered to
26 conduct business in Illinois and is in good standing; and
27 (8) a certification that the acquisition or purchase
28 agreement has not yet been entered into or executed or,
29 if the acquisition or purchase agreement has been
30 executed, that it contains a clause stating that the
31 transaction is contingent upon the receipt of approval
32 from the State Board.
33 (g) All applications shall be signed by the applicant
34 and shall be verified by any 2 officers thereof.
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1 (h) Upon receipt of an application for a permit, the
2 State Board shall approve and authorize the issuance of a
3 permit if it finds (1) that the applicant is fit, willing,
4 and able to provide a proper standard of health care service
5 for the community with particular regard to the
6 qualification, background and character of the applicant, (2)
7 that economic feasibility is demonstrated in terms of effect
8 on the existing and projected operating budget of the
9 applicant and of the health care facility; in terms of the
10 applicant's ability to establish and operate such facility in
11 accordance with licensure regulations promulgated under
12 pertinent state laws; and in terms of the projected impact on
13 the total health care expenditures in the facility and
14 community, (3) that safeguards are provided which assure that
15 the establishment, construction or modification of the health
16 care facility or acquisition of major medical equipment is
17 consistent with the public interest, and (4) that the
18 proposed project is consistent with the orderly and economic
19 development of such facilities and equipment and is in accord
20 with standards, criteria, or plans of need adopted and
21 approved pursuant to the provisions of Section 12 of this
22 Act.
23 (Source: P.A. 88-18.)
24 (20 ILCS 3960/12) (from Ch. 111 1/2, par. 1162)
25 Sec. 12. For purposes of this Act, the State Board shall
26 exercise the following powers and duties:
27 (1) Prescribe rules, regulations, standards, criteria,
28 procedures or reviews which may vary according to the purpose
29 for which a particular review is being conducted or the type
30 of project reviewed and which are required to carry out the
31 provisions and purposes of this Act.
32 (2) Adopt procedures for public notice and hearing on
33 all proposed rules, regulations, standards, criteria, and
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1 plans required to carry out the provisions of this Act.
2 (3) Prescribe criteria for recognition for areawide
3 health planning organizations, including, but not limited to,
4 standards for evaluating the scientific bases for judgments
5 on need and procedure for making these determinations.
6 (4) Develop criteria and standards for health care
7 facilities planning, conduct statewide inventories of health
8 care facilities, and develop health care facility plans which
9 shall be utilized in the review of applications for permit
10 under this Act. Such health facility plans shall be
11 coordinated by the Agency with the health care facility plans
12 areawide health planning organizations and with other
13 pertinent State Plans.
14 In developing health care facility plans, the State Board
15 shall consider, but shall not be limited to, the following:
16 (a) The size, composition and growth of the
17 population of the area to be served;
18 (b) The number of existing and planned facilities
19 offering similar programs;
20 (c) The extent of utilization of existing
21 facilities;
22 (d) The availability of facilities which may serve
23 as alternatives or substitutes;
24 (e) The availability of personnel necessary to the
25 operation of the facility;
26 (f) Multi-institutional planning and the
27 establishment of multi-institutional systems where
28 feasible;
29 (g) The financial and economic feasibility of
30 proposed construction or modification; and
31 (h) In the case of health care facilities
32 established by a religious body or denomination, the
33 needs of the members of such religious body or
34 denomination may be considered to be public need.
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1 The health care facility plans which are developed and
2 adopted in accordance with this Section shall form the basis
3 for the plan of the State to deal most effectively with
4 statewide health needs in regard to health care facilities.
5 (5) Coordinate with other state agencies having
6 responsibilities affecting health care facilities, including
7 those of licensure and cost reporting.
8 (6) Solicit, accept, hold and administer on behalf of
9 the State any grants or bequests of money, securities or
10 property for use by the State Board or recognized areawide
11 health planning organizations in the administration of this
12 Act; and enter into contracts consistent with the
13 appropriations for purposes enumerated in this Act.
14 (7) The State Board shall prescribe, in consultation
15 with the recognized areawide health planning organizations,
16 procedures for review, standards, and criteria which shall be
17 utilized to make periodic areawide reviews and determinations
18 of the appropriateness of any existing health services being
19 rendered by health care facilities subject to the Act. The
20 State Board shall consider recommendations of the areawide
21 health planning organization and the Agency in making its
22 determinations.
23 (8) Prescribe, in consultation with the recognized
24 areawide health planning organizations, rules, regulations,
25 standards, and criteria for the conduct of an expeditious
26 review of applications for permits for projects of
27 construction or modification of a health care facility, which
28 projects are non-substantive in nature. Such rules shall not
29 abridge the right of areawide health planning organizations
30 to make recommendations on the classification and approval of
31 projects, nor shall such rules prevent the conduct of a
32 public hearing upon the timely request of an interested
33 party. Such reviews shall not exceed 60 days from the date
34 the application is declared to be complete by the Agency.
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1 (9) Prescribe rules, regulations, standards, and
2 criteria pertaining to the granting of permits for
3 construction and modifications which are emergent in nature
4 and must be undertaken immediately to prevent or correct
5 structural deficiencies or hazardous conditions that may harm
6 or injure persons using the facility, as defined in the rules
7 and regulations of the State Board. This procedure is exempt
8 from public hearing requirements of this Act.
9 (10) Prescribe rules, regulations, standards and
10 criteria for the conduct of an expeditious review, not
11 exceeding 60 days, of applications for permits for projects
12 to construct or modify health care facilities which are
13 needed for the care and treatment of persons who have
14 acquired immunodeficiency syndrome (AIDS) or related
15 conditions.
16 Notwithstanding any other provision of law, not less than
17 30 days before submitting any rules or changes to any rule
18 for publication in the Illinois Register, the State Board
19 must submit copies of the proposed rules or changes to rules
20 to all affected parties. Upon receipt of the copies, the
21 affected parties may submit comments or objections to the
22 State Board. The State Board must consider all comments and
23 objections before submitting the proposed rules or changes to
24 rules for publication in the Illinois Register.
25 (Source: P.A. 88-18; 89-276, eff. 8-10-95.)
26 (20 ILCS 3960/19.5 new)
27 Sec. 19.5. Audit. The Auditor General must conduct a
28 study of the State Board to determine:
29 (1) whether the certificate of need process is
30 successful in controlling health care costs;
31 (2) whether the State Board is following its adopted
32 rules and procedures;
33 (3) whether the State Board is consistent in
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1 awarding and denying certificates of need; and
2 (4) whether the State Board's annual reports reflect
3 a cost savings to the State.
4 The Auditor General must report on the results of the
5 study to the General Assembly on or before January 1, 2002.
6 This Section is repealed when the Auditor General files
7 his or her report with the General Assembly.
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
32 Legislative Audit Commission at the request of the State
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1 Board of Appeals under the State Mandates Act.
2 In addition to the foregoing, the Auditor General may
3 conduct an audit of the Metropolitan Pier and Exposition
4 Authority, the Regional Transportation Authority, the
5 Suburban Bus Division, the Commuter Rail Division and the
6 Chicago Transit Authority and any other subsidized carrier
7 when authorized by the Legislative Audit Commission. Such
8 audit may be a financial, management or program audit, or any
9 combination thereof.
10 The audit shall determine whether they are operating in
11 accordance with all applicable laws and regulations. Subject
12 to the limitations of this Act, the Legislative Audit
13 Commission may by resolution specify additional
14 determinations to be included in the scope of the audit.
15 The Auditor General may also conduct an audit, when
16 authorized by the Legislative Audit Commission, of any
17 hospital which receives 10% or more of its gross revenues
18 from payments from the State of Illinois, Department of
19 Public Aid, Medical Assistance Program.
20 The Auditor General is authorized to conduct financial
21 and compliance audits of the Illinois Distance Learning
22 Foundation and the Illinois Conservation Foundation.
23 As soon as practical after the effective date of this
24 amendatory Act of 1995, the Auditor General shall conduct a
25 compliance and management audit of the City of Chicago and
26 any other entity with regard to the operation of Chicago
27 O'Hare International Airport, Chicago Midway Airport and
28 Merrill C. Meigs Field. The audit shall include, but not be
29 limited to, an examination of revenues, expenses, and
30 transfers of funds; purchasing and contracting policies and
31 practices; staffing levels; and hiring practices and
32 procedures. When completed, the audit required by this
33 paragraph shall be distributed in accordance with Section
34 3-14.
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1 The Auditor General shall conduct a financial and
2 compliance and program audit of distributions from the
3 Municipal Economic Development Fund during the immediately
4 preceding calendar year pursuant to Section 8-403.1 of the
5 Public Utilities Act at no cost to the city, village, or
6 incorporated town that received the distributions.
7 The Auditor General must conduct a study of the Health
8 Facilities Planning Board pursuant to Section 19.5 of the
9 Illinois Health Facilities Planning Act.
10 (Source: P.A. 89-386, eff. 8-18-95; 90-813, eff. 1-29-99.)
11 Section 95. No acceleration or delay. Where this Act
12 makes changes in a statute that is represented in this Act by
13 text that is not yet or no longer in effect (for example, a
14 Section represented by multiple versions), the use of that
15 text does not accelerate or delay the taking effect of (i)
16 the changes made by this Act or (ii) provisions derived from
17 any other Public Act.
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.".