Illinois General Assembly - Full Text of Public Act 093-0041
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Public Act 093-0041


 

Public Act 93-0041 of the 93rd General Assembly


Public Act 93-0041

SB1332 Enrolled                      LRB093 09788 AMC 10033 b

    AN ACT concerning health facilities.

    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 3, 4, 5.3, 6, 10, 12, 12.2, 13,
and 19.6 and by adding Section 12.3 as follows:

    (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
    (Section scheduled to be repealed on July 1, 2003)
    Sec. 3.  Definitions.  As used in this Act:
    "Health care facilities" means and includes the following
facilities and organizations:
         1.  An ambulatory surgical treatment center required
    to  be  licensed  pursuant  to  the  Ambulatory  Surgical
    Treatment Center Act;
         2.  An  institution,  place,  building,  or   agency
    required   to   be  licensed  pursuant  to  the  Hospital
    Licensing Act;
         3.  Skilled  and   intermediate   long   term   care
    facilities licensed under the Nursing Home Care Act;
         3.  Skilled   and   intermediate   long   term  care
    facilities licensed under the Nursing Home Care Act;
         4.  Hospitals, nursing  homes,  ambulatory  surgical
    treatment  centers,  or  kidney disease treatment centers
    maintained by the  State  or  any  department  or  agency
    thereof;
         5.  Kidney  disease  treatment  centers, including a
    free-standing hemodialysis unit; and
         6.  An institution, place, building,  or  room  used
    for  the  performance  of  outpatient surgical procedures
    that is leased, owned, or operated by or on behalf of  an
    out-of-state facility.
    No  federally  owned  facility  shall  be  subject to the
provisions of  this  Act,  nor  facilities  used  solely  for
healing by prayer or spiritual means.
    No  facility  licensed  under  the  Supportive Residences
Licensing Act or the Assisted Living and Shared  Housing  Act
shall be subject to the provisions of this Act.
    A  facility  designated  as  a supportive living facility
that is in  good  standing  with  the  demonstration  project
established  under Section 5-5.01a of the Illinois Public Aid
Code shall not be subject to the provisions of this Act.
    This Act does not apply  to  facilities  granted  waivers
under Section 3-102.2 of the Nursing Home Care Act.  However,
if  a  demonstration  project  under  that  Act applies for a
certificate of need to convert  to  a  nursing  facility,  it
shall meet the licensure and certificate of need requirements
in effect as of the date of application.
    This Act shall not apply to the closure of an entity or a
portion of an entity licensed under the Nursing Home Care Act
that  elects  to convert, in whole or in part, to an assisted
living or shared housing  establishment  licensed  under  the
Assisted Living and Shared Housing Establishment Act.
    With  the  exception  of  those  health  care  facilities
specifically  included  in  this Section, nothing in this Act
shall be intended to include facilities operated as a part of
the practice of a physician or  other  licensed  health  care
professional,  whether  practicing in his individual capacity
or within the legal structure of any partnership, medical  or
professional   corporation,   or  unincorporated  medical  or
professional group. Further, this  Act  shall  not  apply  to
physicians  or  other  licensed  health  care  professional's
practices  where  such practices are carried out in a portion
of a health care facility under  contract  with  such  health
care facility by a physician or by other licensed health care
professionals,  whether practicing in his individual capacity
or within the legal structure of any partnership, medical  or
professional   corporation,   or  unincorporated  medical  or
professional groups.  This Act shall apply to construction or
modification  and  to  establishment  by  such  health   care
facility  of  such  contracted  portion  which  is subject to
facility licensing requirements, irrespective  of  the  party
responsible   for   such   action   or   attendant  financial
obligation.
    "Person" means any one or  more  natural  persons,  legal
entities,  governmental  bodies  other  than  federal, or any
combination thereof.
    "Consumer" means any person other than a person (a) whose
major  occupation  currently  involves  or   whose   official
capacity   within   the  last  12  months  has  involved  the
providing, administering or financing of any type  of  health
care  facility,  (b) who is engaged in health research or the
teaching of health, (c) who has a material financial interest
in any activity which involves the  providing,  administering
or  financing of any type of health care facility, or (d) who
is or ever has been a member of the immediate family  of  the
person defined by (a), (b), or (c).
    "State Board" means the Health Facilities Planning Board.
    "Construction  or  modification" means the establishment,
erection,     building,      alteration,      reconstruction,
modernization,   improvement,   extension,   discontinuation,
change  of ownership, of or by a health care facility, or the
purchase or acquisition by or through a health care  facility
of   equipment  or  service  for  diagnostic  or  therapeutic
purposes or for facility administration or operation, or  any
capital  expenditure  made  by  or on behalf of a health care
facility  which  exceeds  the  capital  expenditure  minimum;
however, any capital expenditure made by or on  behalf  of  a
health  care facility for the construction or modification of
a facility licensed under  the  Assisted  Living  and  Shared
Housing Act shall be excluded from any obligations under this
Act.
    "Establish"  means  the  construction  of  a  health care
facility or  the  replacement  of  an  existing  facility  on
another site.
    "Major  medical  equipment" means medical equipment which
is used  for  the  provision  of  medical  and  other  health
services and which costs in excess of the capital expenditure
minimum,  except  that  such  term  does  not include medical
equipment acquired by or on behalf of a  clinical  laboratory
to  provide  clinical  laboratory  services  if  the clinical
laboratory is independent  of  a  physician's  office  and  a
hospital  and it has been determined under Title XVIII of the
Social Security Act to meet the  requirements  of  paragraphs
(10) and (11) of Section 1861(s) of such Act.  In determining
whether  medical  equipment  has  a  value  in  excess of the
capital expenditure minimum, the value of  studies,  surveys,
designs,  plans,  working drawings, specifications, and other
activities essential to the  acquisition  of  such  equipment
shall be included.
    "Capital  Expenditure" means an expenditure:  (A) made by
or on behalf of a health care facility (as such a facility is
defined in this Act); and (B) which under generally  accepted
accounting  principles  is  not  properly  chargeable  as  an
expense of operation and maintenance, or is made to obtain by
lease  or comparable arrangement any facility or part thereof
or any equipment for a facility or part;  and  which  exceeds
the capital expenditure minimum.
    For  the  purpose  of  this  paragraph,  the  cost of any
studies,   surveys,   designs,   plans,   working   drawings,
specifications,  and  other  activities  essential   to   the
acquisition,  improvement,  expansion,  or replacement of any
plant or equipment with respect to which  an  expenditure  is
made  shall  be  included  in determining if such expenditure
exceeds  the  capital  expenditures  minimum.  Donations   of
equipment  or  facilities  to a health care facility which if
acquired directly by such facility would be subject to review
under this Act shall be considered capital expenditures,  and
a  transfer  of  equipment  or  facilities for less than fair
market value shall be considered a  capital  expenditure  for
purposes  of  this  Act  if  a  transfer  of the equipment or
facilities at fair market value would be subject to review.
    "Capital expenditure  minimum"  means  $6,000,000,  which
shall  be  annually  adjusted  to  reflect  the  increase  in
construction  costs  due  to  inflation,  for  major  medical
equipment  and  for all other capital expenditures; provided,
however,  that  when  a  capital  expenditure  is   for   the
construction  or modification of a health and fitness center,
"capital expenditure minimum" means the  capital  expenditure
minimum for all other capital expenditures in effect on March
1,  2000,  which  shall  be  annually adjusted to reflect the
increase in construction costs due to inflation.
    "Non-clinical service area" means an  area  (i)  for  the
benefit  of  the patients, visitors, staff, or employees of a
health care facility and (ii) not  directly  related  to  the
diagnosis,  treatment, or rehabilitation of persons receiving
services  from  the  health  care  facility.    "Non-clinical
service areas" include, but are not limited to, chapels; gift
shops;  news stands; computer systems; tunnels, walkways, and
elevators; telephone systems; projects to  comply  with  life
safety   codes;   educational  facilities;  student  housing;
patient,  employee,  staff,   and   visitor   dining   areas;
administration   and   volunteer  offices;  modernization  of
structural components (such as roof replacement  and  masonry
work);  boiler repair or replacement; vehicle maintenance and
storage facilities; parking  facilities;  mechanical  systems
for  heating,  ventilation,  and  air  conditioning;  loading
docks;  and  repair  or  replacement of carpeting, tile, wall
coverings, window  coverings  or  treatments,  or  furniture.
Solely  for  the  purpose  of  this definition, "non-clinical
service area" does not include health and fitness centers.
    "Areawide" means a major area of the State delineated  on
a  geographic,  demographic,  and functional basis for health
planning and for health service and having within it  one  or
more local areas for health planning and health service.  The
term  "region",  as contrasted with the term "subregion", and
the word "area"  may  be  used  synonymously  with  the  term
"areawide".
    "Local"  means  a subarea of a delineated major area that
on a geographic, demographic, and  functional  basis  may  be
considered   to  be  part  of  such  major  area.   The  term
"subregion" may be used synonymously with the term "local".
    "Areawide health planning organization" or "Comprehensive
health planning organization" means the health systems agency
designated by the Secretary, Department of Health  and  Human
Services or any successor agency.
    "Local  health  planning  organization" means those local
health planning organizations that are designated as such  by
the  areawide health planning organization of the appropriate
area.
    "Physician"  means  a  person  licensed  to  practice  in
accordance with the Medical Practice Act of 1987, as amended.
    "Licensed  health  care  professional"  means  a   person
licensed  to  practice  a  health  profession under pertinent
licensing statutes of the State of Illinois.
    "Director" means the  Director of the Illinois Department
of Public Health.
    "Agency" means the Illinois Department of Public Health.
    "Comprehensive health  planning"  means  health  planning
concerned  with  the  total  population  and  all  health and
associated problems that affect the well-being of people  and
that encompasses health services, health manpower, and health
facilities;  and  the coordination among these and with those
social,  economic,  and  environmental  factors  that  affect
health.
    "Alternative health  care  model"  means  a  facility  or
program authorized under the Alternative Health Care Delivery
Act.
    "Out-of-state  facility"  means a person that is both (i)
licensed as a hospital or as  an  ambulatory  surgery  center
under  the  laws  of  another  state  or  that qualifies as a
hospital or an ambulatory surgery  center  under  regulations
adopted  pursuant  to  the  Social  Security Act and (ii) not
licensed under the Ambulatory Surgical Treatment Center  Act,
the  Hospital  Licensing  Act,  or the Nursing Home Care Act.
Affiliates of out-of-state  facilities  shall  be  considered
out-of-state  facilities.   Affiliates  of  Illinois licensed
health care facilities 100% owned  by  an  Illinois  licensed
health  care  facility,  its  parent,  or Illinois physicians
licensed to practice medicine in all its branches  shall  not
be  considered  out-of-state  facilities.   Nothing  in  this
definition  shall  be  construed  to include an office or any
part of  an  office  of  a  physician  licensed  to  practice
medicine in all its branches in Illinois that is not required
to be licensed under the Ambulatory Surgical Treatment Center
Act.
    "Change  of  ownership of a health care facility" means a
change in the person who has ownership or control of a health
care facility's physical plant and capital assets.  A  change
in  ownership  is  indicated  by  the following transactions:
sale, transfer, acquisition, lease, change of sponsorship, or
other means of transferring control.
    "Related person" means any person that: (i) is  at  least
50%  owned, directly or indirectly, by either the health care
facility or a person owning, directly or indirectly, at least
50% of the health care facility; or (ii)  owns,  directly  or
indirectly, at least 50% of the health care facility.
(Source: P.A.   90-14,  eff.  7-1-97;  91-656,  eff.  1-1-01;
91-782, eff. 6-9-00; revised 11-6-02.)

    (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
    (Section scheduled to be repealed on July 1, 2003)
    Sec. 4.  Health Facilities  Planning  Board;  membership;
appointment;  term;  compensation;  quorum.  There is created
the Health Facilities Planning Board, which shall perform the
such functions as hereinafter described in this Act.
    Notwithstanding any provision  of  this  Section  to  the
contrary,  the  term  of  office  of each member of the State
Board is abolished on the effective date of  this  amendatory
Act  of  the 93rd General Assembly, but all incumbent members
shall continue to exercise all of the powers and  be  subject
to  all of the duties of members of the State Board until all
new members of the 9-member State Board authorized under this
amendatory Act of the 93rd General Assembly are appointed and
take  office.  Beginning  on  the  effective  date  of   this
amendatory  Act of the 93rd General Assembly, the State Board
shall consist of 9 voting  members.  The  State  Board  shall
consist  of 15 voting members, including: 8 consumer members;
one  member  representing  the  commercial  health  insurance
industry in Illinois; one member  representing  hospitals  in
Illinois;  one member who is actively engaged in the field of
hospital management; one member who is a  professional  nurse
registered  in  Illinois;  one  member  who is a physician in
active private practice  licensed  in  Illinois  to  practice
medicine  in  all of its branches; one member who is actively
engaged in the field of skilled nursing or intermediate  care
facility  management;  and one member who is actively engaged
in the administration of  an  ambulatory  surgical  treatment
center  licensed  under  the  Ambulatory  Surgical  Treatment
Center Act.
    The  State Board shall be appointed by the Governor, with
the  advice  and  consent  of  the  Senate.  In  making   the
appointments,   the  Governor  shall  give  consideration  to
recommendations made by (1)  the  professional  organizations
concerned   with   hospital   management   for  the  hospital
management  appointment,   (2)   professional   organizations
concerned  with  long  term  care facility management for the
long  term  care   facility   management   appointment,   (3)
professional   medical   organizations   for   the  physician
appointment, (4) professional nursing organizations  for  the
nurse   appointment,   and   (5)  professional  organizations
concerned with ambulatory surgical treatment centers for  the
ambulatory  surgical  treatment center appointment, and shall
appoint  as  consumer  members  individuals   familiar   with
community  health  needs but whose interest in the operation,
construction or utilization of  health  care  facilities  are
derived   from  factors  other  than  those  related  to  his
profession, business, or economic gain, and who represent, so
far as possible, different geographic areas of the State. Not
more than 5 8 of  the  appointments  shall  be  of  the  same
political  party.  No  person  shall  be appointed as a State
Board member if that person has served, after  the  effective
date  of  this amendatory Act of the 93rd General Assembly, 2
3-year terms as a State Board member, except for  ex  officio
non-voting members.
    The  Secretary  of Human Services, the Director of Public
Aid, and the Director of Public Health, or  their  designated
representatives,   shall   serve  as  ex-officio,  non-voting
members of the State Board.
    Of those members  initially  appointed  by  the  Governor
under  this  amendatory  Act  of the 93rd General Assembly, 3
shall serve for terms expiring July 1, 2004,  3  shall  serve
for  terms expiring July 1, 2005, and 3 shall serve for terms
expiring July 1, 2006.  Thereafter, as voting  members,  each
appointed  member  shall  hold office for a term of 3 years,:
provided,  that  any  member  appointed  to  fill  a  vacancy
occurring prior to the expiration of the term for  which  his
predecessor   was   appointed  shall  be  appointed  for  the
remainder of such  term  and  the  term  of  office  of  each
successor  shall  commence on July 1 of the year in which his
predecessor's term expires. In making  original  appointments
to  the State Board, the Governor shall appoint 5 members for
a term of one year, 5 for a term of 2 years, and 3 for a term
of 3 years, and each of these terms of office shall  commence
on  July  1, 1974. The initial term of office for the members
appointed under this amendatory Act of 1996  shall  begin  on
July  1, 1996 and shall last for 2 years, and each subsequent
appointment shall be for a term of 3 years. Each member shall
hold office until his successor is appointed and qualified.
    State Board members, while serving  on  business  of  the
State  Board,  shall  receive actual and necessary travel and
subsistence expenses while so serving away from their  places
of  residence.  A member of the State Board who experiences a
significant financial hardship due to the loss of  income  on
days  of attendance at meetings or while otherwise engaged in
the business of the  State  Board  may  be  paid  a  hardship
allowance,  as  determined  by and subject to the approval of
the Governor's  Travel  Control  Board.  In  addition,  while
serving  on  business  of  the State Board, each member shall
receive compensation  of  $150  per  day,  except  that  such
compensation  shall not exceed $7,500 in any one year for any
member.
    The Governor shall designate one of the members to  serve
as  Chairman  and  The  State Board shall provide for its own
organization and procedures, including  the  selection  of  a
Chairman  and  such  other officers as deemed necessary.  The
Director, with concurrence of the State Board, shall name  as
full-time  Executive  Secretary  of the State Board, a person
qualified  in  health   care   facility   planning   and   in
administration.   The Agency shall provide administrative and
staff support for the State Board.   The  State  Board  shall
advise  the  Director  of  its  budgetary and staff needs and
consult with the Director on annual budget preparation.
    The State Board shall meet at least once each quarter, or
as often as the Chairman of the State Board deems  necessary,
or upon the request of a majority of the members.
    Five  Eight members of the State Board shall constitute a
quorum.  The affirmative vote of 5 8 of the  members  of  the
State  Board  shall  be  necessary for any action requiring a
vote to be taken  by  the  State  Board.  A  vacancy  in  the
membership of the State Board shall not impair the right of a
quorum  to exercise all the rights and perform all the duties
of the State Board as provided by this Act.
    A State Board member shall disqualify himself or  herself
from  the  consideration  of  any application for a permit or
exemption in which the State Board member or the State  Board
member's  spouse,  parent,  or  child:  (i)  has  an economic
interest in the matter; or (ii) is employed by, serves  as  a
consultant  for, or is a member of the governing board of the
applicant or a party opposing the application.
(Source: P.A. 90-14, eff. 7-1-97; 91-782, eff. 6-9-00.)

    (20 ILCS 3960/5.3)
    (Section scheduled to be repealed on July 1, 2003)
    Sec. 5.3.  Annual report  of  capital  expenditures.   In
addition  to  the State Board's authority to require reports,
the State Board shall require each health  care  facility  to
submit an annual report of all capital expenditures in excess
of  $200,000 (which shall be annually adjusted to reflect the
increase in construction costs due to inflation) made by  the
health  care  facility  during  the  most  recent year.  This
annual report shall consist of a  brief  description  of  the
capital  expenditure,  the amount and method of financing the
capital expenditure, the certificate of need  project  number
if  the project was reviewed, and the total amount of capital
expenditures obligated for the year.    Data  collected  from
health  care  facilities  pursuant  to this Section shall not
duplicate or overlap other data collected by  the  Department
and  must  be  collected  as  part of the Department's Annual
Questionnaires or supplements for health care facilities that
report these data.
(Source: P.A. 91-782, eff. 6-9-00.)

    (20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
    (Section scheduled to be repealed on July 1, 2003)
    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.  Such  application  shall
include  affirmative  evidence on which the Director may make
the findings required under this Section and upon  which  the
State  Board  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. For a
change of ownership of a health care facility between related
persons, the  State  Board  shall  provide  by  rule  for  an
expedited process for obtaining an exemption.
    (c)  All  applications  shall  be signed by the applicant
and shall be verified by any 2 officers thereof.
    (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 which 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. 88-18.)

    (20 ILCS 3960/10) (from Ch. 111 1/2, par. 1160)
    (Section scheduled to be repealed on July 1, 2003)
    Sec. 10.  Presenting information relevant to the approval
of a permit or certificate or in opposition to the denial  of
the  application;  notice  of outcome and review proceedings.
When a motion by the State Board, to approve  an  application
for  a permit or a certificate of recognition, fails to pass,
or when a motion to deny an application for  a  permit  or  a
certificate  of  recognition  is passed, the applicant or the
holder of the permit, as the case  may  be,  and  such  other
parties  as  the  State  Board  permits,  will  be  given  an
opportunity to appear before the State Board and present such
information as may be relevant to the approval of a permit or
certificate   or   in   opposition   to  the  denial  of  the
application.
    Subsequent to an appearance by the applicant  before  the
State  Board  or  default  of  such  opportunity to appear, a
motion by the State Board to approve  an  application  for  a
permit or a certificate of recognition which fails to pass or
a motion to deny an application for a permit or a certificate
of  recognition    which passes shall be considered denial of
the application for a permit or certificate  of  recognition,
as  the  case  may be.  Such action of denial or an action by
the State Board to  revoke  a  permit  or  a  certificate  of
recognition  shall be communicated to the applicant or holder
of the permit or certificate of recognition.  Such person  or
organization  shall  be afforded an opportunity for a hearing
before a hearing officer, who is appointed  by  the  Director
State  Board.  A written notice of a request for such hearing
shall be served upon the Chairman of the State  Board  within
30  days  following notification of the decision of the State
Board.  The State Board shall schedule  a  hearing,  and  the
Director  Chairman  shall appoint a hearing officer within 30
days thereafter.  The  hearing  officer  shall  take  actions
necessary  to  ensure  that the hearing is completed within a
reasonable period of time, but not to exceed 90 days,  except
for delays or continuances agreed to by the person requesting
the  hearing.    Following its consideration of the report of
the hearing, or upon default of the party to the hearing, the
State Board shall make its  final  determination,  specifying
its  findings and conclusions within 45 days of receiving the
written report of the hearing.  A copy of such  determination
shall be sent by certified mail or served personally upon the
party.
    A   full  and  complete  record  shall  be  kept  of  all
proceedings, including the notice of hearing, complaint,  and
all  other  documents  in  the  nature  of pleadings, written
motions filed in the proceedings, and the report  and  orders
of the State Board or hearing officer. All testimony shall be
reported  but  need not be transcribed unless the decision is
appealed in accordance with the Administrative Review Law, as
now or hereafter amended.  A copy or copies of the transcript
may be obtained by any interested party  on  payment  of  the
cost of preparing such copy or copies.
    The  State Board or hearing officer shall upon its own or
his  motion, or on the written request of any  party  to  the
proceeding who has, in the State Board's or hearing officer's
opinion,  demonstrated  the  relevancy of such request to the
outcome of the proceedings,  issue  subpoenas  requiring  the
attendance  and  the  giving  of  testimony by witnesses, and
subpoenas duces tecum  requiring  the  production  of  books,
papers,  records,  or  memoranda.  The  fees of witnesses for
attendance and travel shall  be  the  same  as  the  fees  of
witnesses before the circuit court of this State.
    When  the  witness  is  subpoenaed at the instance of the
State Board, or its hearing officer, such fees shall be  paid
in  the same manner as other expenses of the Agency, and when
the witness is subpoenaed at the instance of any other  party
to  any  such  proceeding  the State Board may, in accordance
with the rules of  the  Agency,  require  that  the  cost  of
service  of  the subpoena or subpoena duces tecum and the fee
of the witness be borne by the party at  whose  instance  the
witness  is  summoned.  In  such case, the State Board in its
discretion, may require a deposit to cover the cost  of  such
service  and witness fees. A subpoena or subpoena duces tecum
so issued shall be served in the same manner  as  a  subpoena
issued out of a court.
    Any  circuit  court of this State upon the application of
the State Board or upon the application of any other party to
the proceeding, may, in its discretion, compel the attendance
of witnesses, the production of books,  papers,  records,  or
memoranda  and  the  giving  of  testimony  before  it or its
hearing officer conducting  an  investigation  or  holding  a
hearing   authorized  by  this  Act,  by  an  attachment  for
contempt, or otherwise, in the same manner as  production  of
evidence may be compelled before the court.
(Source: P.A. 88-18; 89-276, eff. 8-10-96.)

    (20 ILCS 3960/12) (from Ch. 111 1/2, par. 1162)
    (Section scheduled to be repealed on July 1, 2003)
    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.
    (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)  Prescribe  criteria  for  recognition  for  areawide
health planning organizations, including, but not limited to,
standards  for  evaluating the scientific bases for judgments
on need and procedure for making these determinations.
    (4)  Develop  criteria  and  standards  for  health  care
facilities planning, conduct statewide inventories of  health
care   facilities,  maintain  an  updated  inventory  on  the
Department'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 Agency with  the  health  care  facility  plans  areawide
health  planning organizations and with other pertinent State
Plans.
    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 or recognized areawide
health planning organizations in the administration  of  this
Act;   and   enter   into   contracts   consistent  with  the
appropriations for purposes enumerated in this Act.
    (7)  The State Board  shall  prescribe,  in  consultation
with  the  recognized areawide health planning organizations,
procedures for review, standards, and criteria which shall be
utilized to make periodic areawide reviews and determinations
of the appropriateness of any existing health services  being
rendered  by  health care facilities subject to the Act.  The
State Board shall consider recommendations  of  the  areawide
health  planning  organization  and  the Agency in making its
determinations.
    (8)  Prescribe,  in  consultation  with  the   recognized
areawide  health  planning organizations, 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 non-substantive in nature.  Such rules shall not
abridge the right of areawide health  planning  organizations
to make recommendations on the classification and approval of
projects,  nor  shall  such  rules  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 by the Agency.
    (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.
(Source: P.A. 88-18; 89-276, eff. 8-10-95.)

    (20 ILCS 3960/12.2)
    (Section scheduled to be repealed on July 1, 2003)
    Sec.  12.2.  Powers  of the Agency.  For purposes of this
Act, the Agency  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 Department's web site:
relevant (i) rules,  (ii)  standards,  (iii)  criteria,  (iv)
State  norms,  (v)  references used by Agency 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   to   be   reasonable   fees  for  the  processing  of
applications  by  the  State  Board,  the  Agency,  and   the
appropriate recognized areawide health planning organization.
The  State Board shall set the amounts by rule.  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.
    (3)  Coordinate  with   other   State   agencies   having
responsibilities  affecting health care facilities, including
those of licensure and cost reporting.
(Source: P.A. 89-276, eff. 8-10-95; 90-14, eff. 7-1-97.)

    (20 ILCS 3960/12.3 new)
    (Section scheduled to be repealed on July 1, 2003)
    Sec. 12.3.  Revision of criteria, standards,  and  rules.
Before  December  31,  2004,  the  State  Board shall review,
revise, and promulgate the  criteria,  standards,  and  rules
used  to  evaluate  applications  for  permit.  To the extent
practicable, the criteria,  standards,  and  rules  shall  be
based on objective criteria. In particular, the review of the
criteria, standards, and rules shall consider:
         (1)  Whether  the  criteria  and  standards  reflect
    current industry standards and anticipated trends.
         (2)  Whether  the  criteria  and  standards  can  be
    reduced or eliminated.
         (3)  Whether criteria and standards can be developed
    to  authorize  the  construction  of unfinished space for
    future use when the ultimate need for such space  can  be
    reasonably projected.
         (4)  Whether  the  criteria  and standards take into
    account issues related to population growth and  changing
    demographics in a community.
         (5)  Whether  facility-defined  service and planning
    areas should be recognized.

    (20 ILCS 3960/13) (from Ch. 111 1/2, par. 1163)
    (Section scheduled to be repealed on July 1, 2003)
    Sec. 13.  Investigation of applications for  permits  and
certificates  of  recognition.  The Agency or the State Board
shall make or cause to be made such investigations as  it  or
the  State  Board  deems  necessary  in  connection  with  an
application  for a permit or an application for a certificate
of recognition, or in  connection  with  a  determination  of
whether  or  not  construction or modification which has been
commenced is in accord with the permit issued  by  the  State
Board  or  whether  construction  or  modification  has  been
commenced  without  a permit having been obtained.  The State
Board  may  issue  subpoenas  duces   tecum   requiring   the
production  of  records  and  may  administer  oaths  to such
witnesses.
    Any circuit court of this State, upon the application  of
the  State Board or upon the application of any party to such
proceedings, may, in its discretion, compel the attendance of
witnesses, the  production  of  books,  papers,  records,  or
memoranda and the giving of testimony before the State Board,
by  a  proceeding  as for contempt, or otherwise, in the same
manner as production of evidence may be compelled before  the
court.
    The  State  Board  shall  require  all  health facilities
operating in this State to provide such reasonable reports at
such times and containing such information as is needed by it
to carry out the purposes and provisions of this Act.   Prior
to  collecting  information from health facilities, the State
Board shall make reasonable efforts through a public  process
to  consult  with  health  facilities  and  associations that
represent them to  determine  whether  data  and  information
requests   will  result  in  useful  information  for  health
planning, whether sufficient information  is  available  from
other  sources,  and  whether  data  requested  is  routinely
collected  by  health  facilities  and  is  available without
retrospective record review. Data  and  information  requests
shall  not  impose  undue  paperwork  burdens  on health care
facilities and personnel.  Health  facilities  not  complying
with   this  requirement  shall  be  reported  to  licensing,
accrediting, certifying, or  payment  agencies  as  being  in
violation  of  State  law.  Health  care facilities and other
parties at interest shall have reasonable access, under rules
established by the State Board, to all  planning  information
submitted in accord with this Act pertaining to their area.
(Source: P.A. 89-276, eff. 8-10-95.)

    (20 ILCS 3960/19.6)
    (Section scheduled to be repealed on July 1, 2003).
    Sec. 19.6.  Repeal.  This Act is repealed on July 1, 2008
2003.
(Source: P.A. 91-782, eff. 6-9-00.)

    Section  10.   The  Hospital  Licensing Act is amended by
changing Sections 8, 8.5, and 9.3 and adding Sections 9.4 and
9.5 as follows:

    (210 ILCS 85/8) (from Ch. 111 1/2, par. 149)
    Sec. 8. Facility plan review; fees.
    (a)  Before commencing construction of new facilities  or
specified  types  of  alteration  or additions to an existing
hospital involving major construction, as defined by rule  by
the Department, with an estimated cost greater than $100,000,
architectural  plans  and  specifications  therefor  shall be
submitted by the licensee to the Department  for  review  and
approval.  A  hospital  may submit architectural drawings and
specifications for other construction projects for Department
review according to subsection (b) that shall not be  subject
to  fees  under  subsection  (d).  The Department must give a
hospital that is planning to submit  a  construction  project
for   review   the  opportunity  to  discuss  its  plans  and
specifications  with  the  Department  before  the   hospital
formally  submits the plans and specifications for Department
review.  Review  of  drawings  and  specifications  shall  be
conducted by  an  employee  of  the  Department  meeting  the
qualifications  established  by  the  Department  of  Central
Management   Services   class   specifications  for  such  an
individual's position or by a  person  contracting  with  the
Department   who  meets  those  class  specifications.  Final
approval of the plans and specifications for compliance  with
design  and construction standards shall be obtained from the
Department  before   the   alteration,   addition,   or   new
construction is begun.
    (b)  The  Department shall inform an applicant in writing
within  10  working  days  after   receiving   drawings   and
specifications  and  the  required  fee,  if  any,  from  the
applicant  whether  the applicant's submission is complete or
incomplete.  Failure  to  provide  the  applicant  with  this
notice  within 10 working days shall result in the submission
being deemed complete for purposes of initiating  the  60-day
review  period  under  this  Section.   If  the submission is
incomplete, the Department shall inform the applicant of  the
deficiencies   with   the  submission  in  writing.   If  the
submission is complete and the required fee, if any, has been
paid, the Department shall approve or disapprove drawings and
specifications submitted to the Department no later  than  60
days  following  receipt by the Department.  The drawings and
specifications shall be of sufficient detail, as provided  by
Department  rule,  to  enable  the  Department  to  render  a
determination  of  compliance  with  design  and construction
standards under this Act.  If the Department finds  that  the
drawings  are  not  of  sufficient  detail for it to render a
determination of compliance, the plans shall be determined to
be incomplete and shall not be  considered  for  purposes  of
initiating  the  60  day  review  period.  If a submission of
drawings and specifications is incomplete, the applicant  may
submit  additional  information.   The  60-day  review period
shall not commence until the  Department  determines  that  a
submission  of drawings and specifications is complete or the
submission is deemed complete.  If  the  Department  has  not
approved  or  disapproved  the  drawings  and  specifications
within  60  days,  the  construction,  major  alteration,  or
addition  shall  be  deemed  approved.   If  the drawings and
specifications are disapproved, the Department shall state in
writing, with specificity, the reasons for  the  disapproval.
The  entity  submitting  the  drawings and specifications may
submit additional information  in  response  to  the  written
comments  from the Department or request a reconsideration of
the disapproval.  A final decision of approval or disapproval
shall be made within 45 days of the receipt of the additional
information  or  reconsideration  request.   If  denied,  the
Department shall state the specific reasons  for  the  denial
and  the  applicant  may  elect  to  seek  dispute resolution
pursuant to Section 25 of the  Illinois  Building  Commission
Act, which the Department must participate in.
    (c)  The  Department  shall  provide written approval for
occupancy pursuant to subsection (g) and shall  not  issue  a
violation  to  a  facility  as  a  result  of  a licensure or
complaint survey based upon the facility's physical structure
if:
         (1)  the Department reviewed and approved or  deemed
    approved  the  drawing  and specifications for compliance
    with design and construction standards;
         (2)  the construction, major alteration, or addition
    was built as submitted;
         (3)  the law or rules have not  been  amended  since
    the original approval; and
         (4)  the  conditions  at  the facility indicate that
    there is a reasonable degree of safety provided  for  the
    patients.
    (c-5)  The  Department  shall  not issue a violation to a
facility if  the  inspected  aspects  of  the  facility  were
previously   found   to  be  in  compliance  with  applicable
standards, the relevant law or rules have not  been  amended,
conditions  at  the facility reasonably protect the safety of
its patients, and alterations or new hazards  have  not  been
identified.
    (d)  The  Department  shall  charge the following fees in
connection with its reviews conducted before  June  30,  2004
under this Section:
         (1)  (Blank).
         (2)  (Blank).
         (3)  If  the  estimated  dollar  value  of the major
    construction is greater than $500,000, the fee  shall  be
    established  by  the  Department  pursuant  to rules that
    reflect the reasonable and direct cost of the  Department
    in  conducting  the  architectural reviews required under
    this Section. The estimated dollar  value  of  the  major
    construction  subject  to review under this Section shall
    be  annually  readjusted  to  reflect  the  increase   in
    construction costs due to inflation.
    The  fees provided in this subsection (d) shall not apply
to major construction  projects  involving  facility  changes
that  are  required  by  Department  rule  amendments  or  to
projects related to homeland security.
    The  fees  provided in this subsection (d) shall also not
apply to major construction projects if 51% or  more  of  the
estimated  cost  of  the  project  is  attributed  to capital
equipment.  For major construction projects where 51% or more
of the estimated cost of the project is attributed to capital
equipment, the Department shall by rule establish a fee  that
is reasonably related to the cost of reviewing the project.
    Disproportionate  share  hospitals  and  rural  hospitals
shall  only  pay  one-half  of  the  fees  required  in  this
subsection  (d). For the purposes of this subsection (d), (i)
"disproportionate share hospital" means a hospital  described
in  items (1) through (5) of subsection (b) of Section 5-5.02
of the Illinois Public Aid Code  and  (ii)  "rural  hospital"
means  a  hospital that is (A) located outside a metropolitan
statistical area or (B) located  15  miles  or  less  from  a
county that is outside a metropolitan statistical area and is
licensed  to perform medical/surgical or obstetrical services
and has a combined total bed capacity of 75 or fewer beds  in
these 2 service categories as of July 14, 1993, as determined
by the Department.
    The  Department  shall  not  commence  the  facility plan
review process under this Section until  the  applicable  fee
has been paid.
    (e)  All  fees  received  by  the  Department  under this
Section shall be deposited  into  the  Health  Facility  Plan
Review  Fund,  a  special fund created in the State treasury.
All fees paid by hospitals under subsection (d) shall be used
only to cover the direct and reasonable costs relating to the
Department's review of hospital projects under this  Section.
Moneys shall be appropriated from that Fund to the Department
only  to  pay  the  costs  of  conducting  reviews under this
Section. None of the  moneys  in  the  Health  Facility  Plan
Review  Fund  shall  be  used to reduce the amount of General
Revenue  Fund  moneys  appropriated  to  the  Department  for
facility plan reviews conducted pursuant to this Section.
    (f) (Blank).
    (g)  The Department shall conduct an  on-site  inspection
of  the  completed  project no later than 15 business 30 days
after notification from the applicant that  the  project  has
been   completed  and  all  certifications  required  by  the
Department have been received and accepted by the Department.
The Department may extend this deadline only if  a  federally
mandated  survey  time frame takes precedence. The Department
shall provide written approval for occupancy to the applicant
within 5 working days of the Department's  final  inspection,
provided   the   applicant   has   demonstrated   substantial
compliance  as  defined  by Department rule. Occupancy of new
major construction is prohibited until Department approval is
received, unless the Department has not acted within the time
frames provided in this subsection (g),  in  which  case  the
construction  shall  be  deemed approved.  Occupancy shall be
authorized  after  any  required  health  inspection  by  the
Department has been conducted.
    (h)  The Department shall establish, by rule, a procedure
to  conduct  interim  on-site  review  of  large  or  complex
construction projects.
    (i)  The  Department  shall  establish,   by   rule,   an
expedited  process  for  emergency  repairs or replacement of
like equipment.
    (j)  Nothing in this Section shall be construed to  apply
to  maintenance,  upkeep,  or renovation that does not affect
the structural integrity of the building, does not  add  beds
or  services  over  the  number  for  which  the  facility is
licensed, and provides a reasonable degree of safety for  the
patients.
(Source:  P.A.  91-712,  eff.  7-1-00;  92-563, eff. 6-24-02;
92-803, eff. 8-16-02; revised 9-19-02.)

    (210 ILCS 85/8.5)
    Sec. 8.5. Waiver or alternative compliance of  compliance
with  rules  or standards for construction or physical plant.
Upon application by a hospital, the Department may  grant  or
renew  a  the waiver or alternative compliance methodology of
the hospital's compliance with  a  construction  or  physical
plant  rule  or  standard, including without limitation rules
and  standards  for  (i)  design   and   construction,   (ii)
engineering  and  maintenance  of  the  physical plant, site,
equipment,  and  systems   (heating,   cooling,   electrical,
ventilation,   plumbing,   water,   sewer,  and  solid  waste
disposal), and (iii) fire and safety, and (iv) other rules or
standards that may present  a  barrier  to  the  development,
adoption,  or  implementation  of  an  innovation designed to
improve patient care, for a period not to exceed the duration
of the current license or, in the case of an application  for
license  renewal,  the  duration  of  the renewal period. The
waiver may be conditioned upon  the  hospital  taking  action
prescribed  by  the  Department  as  a  measure equivalent to
compliance. In  determining  whether  to  grant  or  renew  a
waiver,  the Department shall consider the duration and basis
for any current waiver with  respect  to  the  same  rule  or
standard  and the validity and effect upon patient health and
safety of extending it on the same basis, the effect upon the
health and safety of patients, the quality of  patient  care,
the  hospital's  history  of  compliance  with  the rules and
standards of this Act, and the hospital's attempts to  comply
with  the  particular  rule  or  standard  in  question.  The
Department may provide, by rule, for the automatic renewal of
waivers    concerning    construction   or   physical   plant
requirements upon the renewal of a  license.  The  Department
shall  renew  waivers  relating  to  construction or physical
plant standards issued pursuant to this Section at  the  time
of the indicated reviews, unless it can show why such waivers
should not be extended for the following reasons:
         (1)  the   condition   of  the  physical  plant  has
    deteriorated or its use substantially changed so that the
    basis upon which the  waiver  was  issued  is  materially
    different; or
         (2)  the  hospital  is  renovated  or  substantially
    remodeled  in such a way as to permit compliance with the
    applicable  rules  and  standards   without   substantial
    increase in cost.
    A copy of each waiver application and each waiver granted
or renewed shall be on file with the Department and available
for public inspection.
    The  Department  shall advise hospitals of any applicable
federal waivers about which it is aware  and  for  which  the
hospital may apply.
    In  the event that the Department does not grant or renew
a waiver of a rule or standard, the  Department  must  notify
the  hospital  in  writing detailing the specific reasons for
not granting or renewing the waiver and must discuss possible
options, if any, the hospital could take to have  the  waiver
approved.
    This  Section  shall  apply  to  both  new  and  existing
construction.
(Source: P.A. 92-803, eff. 8-16-02.)

    (210 ILCS 85/9.3)
    Sec.  9.3.  Informal  dispute resolution.  The Department
must offer an opportunity  for  informal  dispute  resolution
concerning  the  application  of  building  codes for new and
existing  construction  and  related  Department  rules   and
standards  before the advisory committee under subsection (b)
of Section 2310-560 of the Department of Public Health Powers
and Duties Law of the Civil Administrative Code of  Illinois.
Participants  in  this  process  must include representatives
from the Department, representatives  of  the  hospital,  and
additional representatives deemed appropriate by both parties
with  expertise  regarding the contested deficiencies and the
management of health care facilities.  If the Department does
not resolve disputed deficiencies after the informal  dispute
resolution  process,  the  Department  must provide a written
explanation to the hospital of why the deficiencies have  not
been removed from the statement of deficiencies.
(Source: P.A. 92-803, eff. 8-16-02.)

    (210 ILCS 85/9.4 new)
    Sec.  9.4.  Findings,  conclusions,  and  citations.  The
Department  must  consider any factual information offered by
the hospital during the survey, inspection, or investigation,
at daily status briefings, and in the exit briefing  required
under   Section   9.2   before   making  final  findings  and
conclusions  or  issuing  citations.  The   Department   must
document  receipt  of  such  information. The Department must
provide the hospital with written notice of its findings  and
conclusions  within  10  days  of  the exit briefing required
under Section 9.2. This notice  must  provide  the  following
information: (i) identification of all deficiencies and areas
of  noncompliance with applicable law; (ii) identification of
the applicable statutes, rules, codes, or standards that were
violated; and (iii) the factual basis for each deficiency  or
violation.

    (210 ILCS 85/9.5 new)
    Sec.  9.5.  Reviewer  quality improvement. The Department
must implement a reviewer performance improvement program for
hospital survey, inspection, and  investigation  staff.   The
Department  must  also,  on a quarterly basis, assess whether
its surveyors, inspectors, and investigators: (i)  apply  the
same  protocols  and  criteria  consistently to substantially
similar  situations;  (ii)   reach   similar   findings   and
conclusions  when reviewing substantially similar situations;
(iii) conduct surveys, inspections, or  investigations  in  a
professional  manner;  and (iv) comply with the provisions of
this Act.  The  Department  must  also  implement  continuing
education   programs   for  its  surveyors,  inspectors,  and
investigators pursuant to the  findings  of  the  performance
improvement program.

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

Effective Date: 6/27/2003