Public Act 101-0083
 
SB1739 EnrolledLRB101 09796 RJF 54897 b

    AN ACT concerning State government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Health Facilities Planning Act is
amended by changing Sections 6, 8.5, 12, and 12.2 and by adding
Section 8.7 as follows:
 
    (20 ILCS 3960/6)  (from Ch. 111 1/2, par. 1156)
    (Section scheduled to be repealed on December 31, 2029)
    Sec. 6. Application for permit or exemption; exemption
regulations.
    (a) An application for a permit or exemption shall be made
to the State Board upon forms provided by the State Board. This
application shall contain such information as the State Board
deems necessary. The State Board shall not require an applicant
to file a Letter of Intent before an application is filed. Such
application shall include affirmative evidence on which the
State Board or Chairman may make its decision on the approval
or denial of the permit or exemption.
    (b) The State Board shall establish by regulation the
procedures and requirements regarding issuance of exemptions.
An exemption shall be approved when information required by the
Board by rule is submitted. Projects eligible for an exemption,
rather than a permit, include, but are not limited to, change
of ownership of a health care facility and discontinuation of a
category of service , discontinuation of a category of service,
and discontinuation of a health care facility, other than a
health care facility maintained by the State or any agency or
department thereof or a nursing home maintained by a county.
The Board may accept an application for an exemption for the
discontinuation of a category of service at a health care
facility only once in a 6-month period following (1) the
previous application for exemption at the same health care
facility or (2) the final decision of the Board regarding the
discontinuation of a category of service at the same health
care facility, whichever occurs later. A discontinuation of a
category of service shall otherwise require an application for
a permit if an application for an exemption has already been
accepted within the 6-month period. For a change of ownership
among related persons of a health care facility, the State
Board shall provide by rule for an expedited process for
obtaining an exemption in accordance with Section 8.5 of this
Act. For the purposes of this Section, "change of ownership
among related persons" means a transaction in which the parties
to the transaction are under common control or ownership before
and after the transaction is complete.
    (c) All applications shall be signed by the applicant and
shall be verified by any 2 officers thereof.
    (c-5) Any written review or findings of the Board staff set
forth in the State Board Staff Report concerning an application
for a permit must be made available to the public and the
applicant at least 14 calendar days before the meeting of the
State Board at which the review or findings are considered. The
applicant and members of the public may submit, to the State
Board, written responses regarding the facts set forth in the
review or findings of the Board staff. Members of the public
and the applicant shall have until 10 days before the meeting
of the State Board to submit any written response concerning
the Board staff's written review or findings. The Board staff
may revise any findings to address corrections of factual
errors cited in the public response. At the meeting, the State
Board may, in its discretion, permit the submission of other
additional written materials.
    (d) Upon receipt of an application for a permit, the State
Board shall approve and authorize the issuance of a permit if
it finds (1) that the applicant is fit, willing, and able to
provide a proper standard of health care service for the
community with particular regard to the qualification,
background and character of the applicant, (2) that economic
feasibility is demonstrated in terms of effect on the existing
and projected operating budget of the applicant and of the
health care facility; in terms of the applicant's ability to
establish and operate such facility in accordance with
licensure regulations promulgated under pertinent state laws;
and in terms of the projected impact on the total health care
expenditures in the facility and community, (3) that safeguards
are provided that assure that the establishment, construction
or modification of the health care facility or acquisition of
major medical equipment is consistent with the public interest,
and (4) that the proposed project is consistent with the
orderly and economic development of such facilities and
equipment and is in accord with standards, criteria, or plans
of need adopted and approved pursuant to the provisions of
Section 12 of this Act.
(Source: P.A. 99-154, eff. 7-28-15; 100-518, eff. 6-1-18;
100-681, eff. 8-3-18.)
 
    (20 ILCS 3960/8.5)
    (Section scheduled to be repealed on December 31, 2029)
    Sec. 8.5. Certificate of exemption for change of ownership
of a health care facility; discontinuation of a health care
facility or category of service; public notice and public
hearing.
    (a) Upon a finding that an application for a change of
ownership is complete, the State Board shall publish a legal
notice on 3 consecutive days one day in a newspaper of general
circulation in the area or community to be affected and afford
the public an opportunity to request a hearing. If the
application is for a facility located in a Metropolitan
Statistical Area, an additional legal notice shall be published
in a newspaper of limited circulation, if one exists, in the
area in which the facility is located. If the newspaper of
limited circulation is published on a daily basis, the
additional legal notice shall be published on 3 consecutive
days one day. The applicant shall pay the cost incurred by the
Board in publishing the change of ownership notice in
newspapers as required under this subsection. The legal notice
shall also be posted on the Health Facilities and Services
Review Board's web site and sent to the State Representative
and State Senator of the district in which the health care
facility is located. An application for change of ownership of
a hospital shall not be deemed complete without a signed
certification that for a period of 2 years after the change of
ownership transaction is effective, the hospital will not adopt
a charity care policy that is more restrictive than the policy
in effect during the year prior to the transaction. An
application for a change of ownership need not contain signed
transaction documents so long as it includes the following key
terms of the transaction: names and background of the parties;
structure of the transaction; the person who will be the
licensed or certified entity after the transaction; the
ownership or membership interests in such licensed or certified
entity both prior to and after the transaction; fair market
value of assets to be transferred; and the purchase price or
other form of consideration to be provided for those assets.
The issuance of the certificate of exemption shall be
contingent upon the applicant submitting a statement to the
Board within 90 days after the closing date of the transaction,
or such longer period as provided by the Board, certifying that
the change of ownership has been completed in accordance with
the key terms contained in the application. If such key terms
of the transaction change, a new application shall be required.
    Where a change of ownership is among related persons, and
there are no other changes being proposed at the health care
facility that would otherwise require a permit or exemption
under this Act, the applicant shall submit an application
consisting of a standard notice in a form set forth by the
Board briefly explaining the reasons for the proposed change of
ownership. Once such an application is submitted to the Board
and reviewed by the Board staff, the Board Chair shall take
action on an application for an exemption for a change of
ownership among related persons within 45 days after the
application has been deemed complete, provided the application
meets the applicable standards under this Section. If the Board
Chair has a conflict of interest or for other good cause, the
Chair may request review by the Board. Notwithstanding any
other provision of this Act, for purposes of this Section, a
change of ownership among related persons means a transaction
where the parties to the transaction are under common control
or ownership before and after the transaction is completed.
    Nothing in this Act shall be construed as authorizing the
Board to impose any conditions, obligations, or limitations,
other than those required by this Section, with respect to the
issuance of an exemption for a change of ownership, including,
but not limited to, the time period before which a subsequent
change of ownership of the health care facility could be
sought, or the commitment to continue to offer for a specified
time period any services currently offered by the health care
facility.
    (a-3) (Blank). Upon a finding that an application to close
a health care facility is complete, the State Board shall
publish a legal notice on 3 consecutive days in a newspaper of
general circulation in the area or community to be affected and
afford the public an opportunity to request a hearing. If the
application is for a facility located in a Metropolitan
Statistical Area, an additional legal notice shall be published
in a newspaper of limited circulation, if one exists, in the
area in which the facility is located. If the newspaper of
limited circulation is published on a daily basis, the
additional legal notice shall be published on 3 consecutive
days. The legal notice shall also be posted on the Health
Facilities and Services Review Board's web site and sent to the
State Representative and State Senator of the district in which
the health care facility is located. In addition, the health
care facility shall provide notice of closure to the local
media that the health care facility would routinely notify
about facility events. No later than 90 days after a
discontinuation of a health facility, the applicant must submit
a statement to the State Board certifying that the
discontinuation is complete.
    (a-5) Upon a finding that an application to discontinue a
category of service is complete and provides the requested
information, as specified by the State Board, an exemption
shall be issued. No later than 30 days after the issuance of
the exemption, the health care facility must give written
notice of the discontinuation of the category of service to the
State Senator and State Representative serving the legislative
district in which the health care facility is located. No later
than 90 days after a discontinuation of a category of service,
the applicant must submit a statement to the State Board
certifying that the discontinuation is complete.
    (b) If a public hearing is requested, it shall be held at
least 15 days but no more than 30 days after the date of
publication of the legal notice in the community in which the
facility is located. The hearing shall be held in the affected
area or community in a place of reasonable size and
accessibility and a full and complete written transcript of the
proceedings shall be made. All interested persons attending the
hearing shall be given a reasonable opportunity to present
their positions in writing or orally. The applicant shall
provide a summary or describe the proposed change of ownership
of the proposal for distribution at the public hearing.
    (c) For the purposes of this Section "newspaper of limited
circulation" means a newspaper intended to serve a particular
or defined population of a specific geographic area within a
Metropolitan Statistical Area such as a municipality, town,
village, township, or community area, but does not include
publications of professional and trade associations.
    (d) The changes made to this Section by this amendatory Act
of the 101st General Assembly shall apply to all applications
submitted after the effective date of this amendatory Act of
the 101st General Assembly.
(Source: P.A. 99-154, eff. 7-28-15; 99-527, eff. 1-1-17;
99-551, eff. 7-15-16; 100-201, eff. 8-18-17.)
 
    (20 ILCS 3960/8.7 new)
    Sec. 8.7. Application for permit for discontinuation of a
health care facility or category of service; public notice and
public hearing.
    (a) Upon a finding that an application to close a health
care facility or discontinue a category of service is complete,
the State Board shall publish a legal notice on 3 consecutive
days in a newspaper of general circulation in the area or
community to be affected and afford the public an opportunity
to request a hearing. If the application is for a facility
located in a Metropolitan Statistical Area, an additional legal
notice shall be published in a newspaper of limited
circulation, if one exists, in the area in which the facility
is located. If the newspaper of limited circulation is
published on a daily basis, the additional legal notice shall
be published on 3 consecutive days. The legal notice shall also
be posted on the Health Facilities and Services Review Board's
website and sent to the State Representative and State Senator
of the district in which the health care facility is located.
In addition, the health care facility shall provide notice of
closure to the local media that the health care facility would
routinely notify about facility events.
    (b) No later than 30 days after issuance of a permit to
close a health care facility or discontinue a category of
service, the permit holder shall give written notice of the
closure or discontinuation to the State Senator and State
Representative serving the legislative district in which the
health care facility is located.
    (c) If there is a pending lawsuit that challenges an
application to discontinue a health care facility that either
names the Board as a party or alleges fraud in the filing of
the application, the Board may defer action on the application
for up to 6 months after the date of the initial deferral of
the application.
    (d) The changes made to this Section by this amendatory Act
of the 101st General Assembly shall apply to all applications
submitted after the effective date of this amendatory Act of
the 101st General Assembly.
 
    (20 ILCS 3960/12)  (from Ch. 111 1/2, par. 1162)
    (Section scheduled to be repealed on December 31, 2029)
    Sec. 12. Powers and duties of State Board. For purposes of
this Act, the State Board shall exercise the following powers
and duties:
    (1) Prescribe rules, regulations, standards, criteria,
procedures or reviews which may vary according to the purpose
for which a particular review is being conducted or the type of
project reviewed and which are required to carry out the
provisions and purposes of this Act. Policies and procedures of
the State Board shall take into consideration the priorities
and needs of medically underserved areas and other health care
services, giving special consideration to the impact of
projects on access to safety net services.
    (2) Adopt procedures for public notice and hearing on all
proposed rules, regulations, standards, criteria, and plans
required to carry out the provisions of this Act.
    (3) (Blank).
    (4) Develop criteria and standards for health care
facilities planning, conduct statewide inventories of health
care facilities, maintain an updated inventory on the Board's
web site reflecting the most recent bed and service changes and
updated need determinations when new census data become
available or new need formulae are adopted, and develop health
care facility plans which shall be utilized in the review of
applications for permit under this Act. Such health facility
plans shall be coordinated by the Board with pertinent State
Plans. Inventories pursuant to this Section of skilled or
intermediate care facilities licensed under the Nursing Home
Care Act, skilled or intermediate care facilities licensed
under the ID/DD Community Care Act, skilled or intermediate
care facilities licensed under the MC/DD Act, facilities
licensed under the Specialized Mental Health Rehabilitation
Act of 2013, or nursing homes licensed under the Hospital
Licensing Act shall be conducted on an annual basis no later
than July 1 of each year and shall include among the
information requested a list of all services provided by a
facility to its residents and to the community at large and
differentiate between active and inactive beds.
    In developing health care facility plans, the State Board
shall consider, but shall not be limited to, the following:
        (a) The size, composition and growth of the population
    of the area to be served;
        (b) The number of existing and planned facilities
    offering similar programs;
        (c) The extent of utilization of existing facilities;
        (d) The availability of facilities which may serve as
    alternatives or substitutes;
        (e) The availability of personnel necessary to the
    operation of the facility;
        (f) Multi-institutional planning and the establishment
    of multi-institutional systems where feasible;
        (g) The financial and economic feasibility of proposed
    construction or modification; and
        (h) In the case of health care facilities established
    by a religious body or denomination, the needs of the
    members of such religious body or denomination may be
    considered to be public need.
    The health care facility plans which are developed and
adopted in accordance with this Section shall form the basis
for the plan of the State to deal most effectively with
statewide health needs in regard to health care facilities.
    (5) Coordinate with other state agencies having
responsibilities affecting health care facilities, including
those of licensure and cost reporting.
    (6) Solicit, accept, hold and administer on behalf of the
State any grants or bequests of money, securities or property
for use by the State Board in the administration of this Act;
and enter into contracts consistent with the appropriations for
purposes enumerated in this Act.
    (7) (Blank).
    (8) Prescribe rules, regulations, standards, and criteria
for the conduct of an expeditious review of applications for
permits for projects of construction or modification of a
health care facility, which projects are classified as
emergency, substantive, or non-substantive in nature.
    Substantive projects shall include no more than the
following:
        (a) Projects to construct (1) a new or replacement
    facility located on a new site or (2) a replacement
    facility located on the same site as the original facility
    and the cost of the replacement facility exceeds the
    capital expenditure minimum, which shall be reviewed by the
    Board within 120 days;
        (b) Projects proposing a (1) new service within an
    existing healthcare facility or (2) discontinuation of a
    service within an existing healthcare facility, which
    shall be reviewed by the Board within 60 days; or
        (c) Projects proposing a change in the bed capacity of
    a health care facility by an increase in the total number
    of beds or by a redistribution of beds among various
    categories of service or by a relocation of beds from one
    physical facility or site to another by more than 20 beds
    or more than 10% of total bed capacity, as defined by the
    State Board, whichever is less, over a 2-year period.
    The Chairman may approve applications for exemption that
meet the criteria set forth in rules or refer them to the full
Board. The Chairman may approve any unopposed application that
meets all of the review criteria or refer them to the full
Board.
    Such rules shall not prevent the conduct of a public
hearing upon the timely request of an interested party. Such
reviews shall not exceed 60 days from the date the application
is declared to be complete.
    (9) Prescribe rules, regulations, standards, and criteria
pertaining to the granting of permits for construction and
modifications which are emergent in nature and must be
undertaken immediately to prevent or correct structural
deficiencies or hazardous conditions that may harm or injure
persons using the facility, as defined in the rules and
regulations of the State Board. This procedure is exempt from
public hearing requirements of this Act.
    (10) Prescribe rules, regulations, standards and criteria
for the conduct of an expeditious review, not exceeding 60
days, of applications for permits for projects to construct or
modify health care facilities which are needed for the care and
treatment of persons who have acquired immunodeficiency
syndrome (AIDS) or related conditions.
    (10.5) Provide its rationale when voting on an item before
it at a State Board meeting in order to comply with subsection
(b) of Section 3-108 of the Code of Civil Procedure.
    (11) Issue written decisions upon request of the applicant
or an adversely affected party to the Board. Requests for a
written decision shall be made within 15 days after the Board
meeting in which a final decision has been made. A "final
decision" for purposes of this Act is the decision to approve
or deny an application, or take other actions permitted under
this Act, at the time and date of the meeting that such action
is scheduled by the Board. The transcript of the State Board
meeting shall be incorporated into the Board's final decision.
The staff of the Board shall prepare a written copy of the
final decision and the Board shall approve a final copy for
inclusion in the formal record. The Board shall consider, for
approval, the written draft of the final decision no later than
the next scheduled Board meeting. The written decision shall
identify the applicable criteria and factors listed in this Act
and the Board's regulations that were taken into consideration
by the Board when coming to a final decision. If the Board
denies or fails to approve an application for permit or
exemption, the Board shall include in the final decision a
detailed explanation as to why the application was denied and
identify what specific criteria or standards the applicant did
not fulfill.
    (12) (Blank).
    (13) Provide a mechanism for the public to comment on, and
request changes to, draft rules and standards.
    (14) Implement public information campaigns to regularly
inform the general public about the opportunity for public
hearings and public hearing procedures.
    (15) Establish a separate set of rules and guidelines for
long-term care that recognizes that nursing homes are a
different business line and service model from other regulated
facilities. An open and transparent process shall be developed
that considers the following: how skilled nursing fits in the
continuum of care with other care providers, modernization of
nursing homes, establishment of more private rooms,
development of alternative services, and current trends in
long-term care services. The Chairman of the Board shall
appoint a permanent Health Services Review Board Long-term Care
Facility Advisory Subcommittee that shall develop and
recommend to the Board the rules to be established by the Board
under this paragraph (15). The Subcommittee shall also provide
continuous review and commentary on policies and procedures
relative to long-term care and the review of related projects.
The Subcommittee shall make recommendations to the Board no
later than January 1, 2016 and every January thereafter
pursuant to the Subcommittee's responsibility for the
continuous review and commentary on policies and procedures
relative to long-term care. In consultation with other experts
from the health field of long-term care, the Board and the
Subcommittee shall study new approaches to the current bed need
formula and Health Service Area boundaries to encourage
flexibility and innovation in design models reflective of the
changing long-term care marketplace and consumer preferences
and submit its recommendations to the Chairman of the Board no
later than January 1, 2017. The Subcommittee shall evaluate,
and make recommendations to the State Board regarding, the
buying, selling, and exchange of beds between long-term care
facilities within a specified geographic area or drive time.
The Board shall file the proposed related administrative rules
for the separate rules and guidelines for long-term care
required by this paragraph (15) by no later than September 30,
2011. The Subcommittee shall be provided a reasonable and
timely opportunity to review and comment on any review,
revision, or updating of the criteria, standards, procedures,
and rules used to evaluate project applications as provided
under Section 12.3 of this Act.
    The Chairman of the Board shall appoint voting members of
the Subcommittee, who shall serve for a period of 3 years, with
one-third of the terms expiring each January, to be determined
by lot. Appointees shall include, but not be limited to,
recommendations from each of the 3 statewide long-term care
associations, with an equal number to be appointed from each.
Compliance with this provision shall be through the appointment
and reappointment process. All appointees serving as of April
1, 2015 shall serve to the end of their term as determined by
lot or until the appointee voluntarily resigns, whichever is
earlier.
    One representative from the Department of Public Health,
the Department of Healthcare and Family Services, the
Department on Aging, and the Department of Human Services may
each serve as an ex-officio non-voting member of the
Subcommittee. The Chairman of the Board shall select a
Subcommittee Chair, who shall serve for a period of 3 years.
    (16) Prescribe the format of the State Board Staff Report.
A State Board Staff Report shall pertain to applications that
include, but are not limited to, applications for permit or
exemption, applications for permit renewal, applications for
extension of the financial commitment period, applications
requesting a declaratory ruling, or applications under the
Health Care Worker Self-Referral Act. State Board Staff Reports
shall compare applications to the relevant review criteria
under the Board's rules.
    (17) Establish a separate set of rules and guidelines for
facilities licensed under the Specialized Mental Health
Rehabilitation Act of 2013. An application for the
re-establishment of a facility in connection with the
relocation of the facility shall not be granted unless the
applicant has a contractual relationship with at least one
hospital to provide emergency and inpatient mental health
services required by facility consumers, and at least one
community mental health agency to provide oversight and
assistance to facility consumers while living in the facility,
and appropriate services, including case management, to assist
them to prepare for discharge and reside stably in the
community thereafter. No new facilities licensed under the
Specialized Mental Health Rehabilitation Act of 2013 shall be
established after June 16, 2014 (the effective date of Public
Act 98-651) except in connection with the relocation of an
existing facility to a new location. An application for a new
location shall not be approved unless there are adequate
community services accessible to the consumers within a
reasonable distance, or by use of public transportation, so as
to facilitate the goal of achieving maximum individual
self-care and independence. At no time shall the total number
of authorized beds under this Act in facilities licensed under
the Specialized Mental Health Rehabilitation Act of 2013 exceed
the number of authorized beds on June 16, 2014 (the effective
date of Public Act 98-651).
    (18) Elect a Vice Chairman to preside over State Board
meetings and otherwise act in place of the Chairman when the
Chairman is unavailable.
(Source: P.A. 99-78, eff. 7-20-15; 99-114, eff. 7-23-15;
99-180, eff. 7-29-15; 99-277, eff. 8-5-15; 99-527, eff. 1-1-17;
99-642, eff. 7-28-16; 100-518, eff. 6-1-18; 100-681, eff.
8-3-18.)
 
    (20 ILCS 3960/12.2)
    (Section scheduled to be repealed on December 31, 2029)
    Sec. 12.2. Powers of the State Board staff. For purposes of
this Act, the staff shall exercise the following powers and
duties:
        (1) Review applications for permits and exemptions in
    accordance with the standards, criteria, and plans of need
    established by the State Board under this Act and certify
    its finding to the State Board.
        (1.5) Post the following on the Board's web site:
    relevant (i) rules, (ii) standards, (iii) criteria, (iv)
    State norms, (v) references used by Board staff in making
    determinations about whether application criteria are met,
    and (vi) notices of project-related filings, including
    notice of public comments related to the application.
        (2) Charge and collect an amount determined by the
    State Board and the staff to be reasonable fees for the
    processing of applications by the State Board. The State
    Board shall set the amounts by rule. Application fees for
    continuing care retirement communities, and other health
    care models that include regulated and unregulated
    components, shall apply only to those components subject to
    regulation under this Act. All fees and fines collected
    under the provisions of this Act shall be deposited into
    the Illinois Health Facilities Planning Fund to be used for
    the expenses of administering this Act.
        (2.1) Publish the following reports on the State Board
    website:
            (A) An annual accounting, aggregated by category
        and with names of parties redacted, of fees, fines, and
        other revenue collected as well as expenses incurred,
        in the administration of this Act.
            (B) An annual report, with names of the parties
        redacted, that summarizes all settlement agreements
        entered into with the State Board that resolve an
        alleged instance of noncompliance with State Board
        requirements under this Act.
            (C) (Blank).
            (D) Board reports showing the degree to which an
        application conforms to the review standards, a
        summation of relevant public testimony, and any
        additional information that staff wants to
        communicate.
        (3) Coordinate with other State agencies having
    responsibilities affecting health care facilities,
    including licensure and cost reporting agencies.
        (4) Issue advisory opinions upon request. Staff
    advisory opinions do not constitute determinations by the
    State Board. Determinations by the State Board are made
    through the declaratory ruling process.
(Source: P.A. 99-527, eff. 1-1-17; 100-681, eff. 8-3-18.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.