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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3504 Introduced , by Rep. Robyn Gabel SYNOPSIS AS INTRODUCED: |
| 20 ILCS 3960/6 | from Ch. 111 1/2, par. 1156 | 20 ILCS 3960/8.5 | |
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Amends the Illinois Health Facilities Planning Act. Makes changes concerning: (i) the permit and exemption process for changes of ownership among related persons; (ii) an application to close a health care facility; and (iii) an application to discontinue a category of service. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | HB3504 | | LRB099 09189 JLK 31640 b |
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1 | | AN ACT concerning State government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Health Facilities Planning Act is |
5 | | amended by changing Sections 6 and 8.5 as follows:
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6 | | (20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
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7 | | (Section scheduled to be repealed on December 31, 2019)
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8 | | Sec. 6. Application for permit or exemption; exemption |
9 | | regulations.
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10 | | (a) An application for a permit or exemption shall be made |
11 | | to
the State Board upon forms provided by the State Board. This |
12 | | application
shall contain such information
as the State Board |
13 | | deems necessary. The State Board shall not require an applicant |
14 | | to file a Letter of Intent before an application is filed. Such
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15 | | application shall include affirmative evidence on which the |
16 | | State
Board or Chairman may make its decision on the approval |
17 | | or denial of the permit or
exemption.
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18 | | (b) The State Board shall establish by regulation the |
19 | | procedures and
requirements
regarding issuance of exemptions.
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20 | | An exemption shall be approved when information required by the |
21 | | Board by rule
is submitted. Projects
eligible for an exemption, |
22 | | rather than a permit, include, but are not limited
to,
change |
23 | | of ownership of a health care facility and discontinuation of a |
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1 | | health care facility or category of service . For a change of
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2 | | ownership of a health care
facility between related persons , |
3 | | the State Board shall provide by rule for an
expedited
process |
4 | | for obtaining an exemption in accordance with Section 8.5 of |
5 | | this Act . In connection with a change of ownership, the State |
6 | | Board may approve the transfer of an existing permit without |
7 | | regard to whether the permit to be transferred has yet been |
8 | | obligated, except for permits establishing a new facility or a |
9 | | new category of service.
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10 | | (c) All applications shall be signed by the applicant and |
11 | | shall be
verified by any 2 officers thereof.
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12 | | (c-5) Any written review or findings of the Board staff or |
13 | | any other reviewing organization under Section 8 concerning an |
14 | | application for a permit must be made available to the public |
15 | | at least 14 calendar days before the meeting of the State Board |
16 | | at which the review or findings are considered. The applicant |
17 | | and members of the public may submit, to the State Board, |
18 | | written responses regarding the facts set forth in the review |
19 | | or findings of the Board staff or reviewing organization. |
20 | | Members of the public shall have until 10 days before the |
21 | | meeting of the State Board to submit any written response |
22 | | concerning the Board staff's written review or findings. The |
23 | | Board staff may revise any findings to address corrections of |
24 | | factual errors cited in the public response. At the meeting, |
25 | | the State Board may, in its discretion, permit the submission |
26 | | of other additional written materials.
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1 | | (d) Upon receipt of an application for a permit, the State |
2 | | Board shall
approve and authorize the issuance of a permit if |
3 | | it finds (1) that the
applicant is fit, willing, and able to |
4 | | provide a proper standard of
health care service for the |
5 | | community with particular regard to the
qualification, |
6 | | background and character of the applicant, (2) that
economic |
7 | | feasibility is demonstrated in terms of effect on the existing
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8 | | and projected operating budget of the applicant and of the |
9 | | health care
facility; in terms of the applicant's ability to |
10 | | establish and operate
such facility in accordance with |
11 | | licensure regulations promulgated under
pertinent state laws; |
12 | | and in terms of the projected impact on the total
health care |
13 | | expenditures in the facility and community, (3) that
safeguards |
14 | | are provided which assure that the establishment,
construction |
15 | | or modification of the health care facility or acquisition
of |
16 | | major medical equipment is consistent
with the public interest, |
17 | | and (4) that the proposed project is consistent
with the |
18 | | orderly and economic
development of such facilities and |
19 | | equipment and is in accord with standards,
criteria, or plans |
20 | | of need adopted and approved pursuant to the
provisions of |
21 | | Section 12 of this Act.
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22 | | (Source: P.A. 96-31, eff. 6-30-09; 97-1115, eff. 8-27-12.)
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23 | | (20 ILCS 3960/8.5) |
24 | | (Section scheduled to be repealed on December 31, 2019) |
25 | | Sec. 8.5. Certificate of exemption for change of ownership |
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1 | | of a health care facility; discontinuation of a health care |
2 | | facility or category of service; public notice and public |
3 | | hearing. |
4 | | (a) Upon a finding that an application for a change of |
5 | | ownership is complete, the State Board shall publish a legal |
6 | | notice on 3 consecutive days in a newspaper of general |
7 | | circulation in the area or community to be affected and afford |
8 | | the public an opportunity to request a hearing. If the |
9 | | application is for a facility located in a Metropolitan |
10 | | Statistical Area, an additional legal notice shall be published |
11 | | in a newspaper of limited circulation, if one exists, in the |
12 | | area in which the facility is located. If the newspaper of |
13 | | limited circulation is published on a daily basis, the |
14 | | additional legal notice shall be published on 3 consecutive |
15 | | days. The legal notice shall also be posted on the Health |
16 | | Facilities and Services Review Board's web site and sent to the |
17 | | State Representative and State Senator of the district in which |
18 | | the health care facility is located. An application for change |
19 | | of ownership of a hospital shall not be deemed complete without |
20 | | a signed certification that for a period of 2 years after the |
21 | | change of ownership transaction is effective, the hospital will |
22 | | not adopt a charity care policy that is
more restrictive than |
23 | | the policy in effect during the year prior to the transaction. |
24 | | An application for a change of ownership shall be acceptable if |
25 | | it is based on a Letter of Intent to complete the transaction. |
26 | | For a change of ownership, the Board may, by rule, require |
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1 | | submission of transaction documents to verify pertinent |
2 | | information relative to the change of ownership, including, but |
3 | | not limited to: information for the existing facility; |
4 | | outstanding permits; the name of the applicant; the name of the |
5 | | legal entity that will be the licensee or operating entity; the |
6 | | building or site owner; transaction type; application fee; |
7 | | funding type and source; anticipated acquisition price; fair |
8 | | market value of the facility; date of the proposed transaction; |
9 | | narrative description; background of applicant; financial |
10 | | statements; contact person; and certification. For purposes of |
11 | | this Section, "transaction documents" include a Letter of |
12 | | Intent to enter into the proposed change of ownership. If a |
13 | | Letter of Intent is proffered, then the issuance of the |
14 | | certificate of exemption shall be contingent upon the applicant |
15 | | submitting a statement to the Board within 90 days after the |
16 | | closing date of the transaction, or such longer period as |
17 | | provided by the Board, certifying that the change of ownership |
18 | | to the proposed buyer has, in fact, been completed. |
19 | | Where a change of ownership is among related persons, and |
20 | | there are no other changes being proposed at the health care |
21 | | facility that would otherwise require a permit or exemption |
22 | | under this Act, the applicant shall submit an application |
23 | | consisting of a standard notice in a form set forth by the |
24 | | Board briefly explaining the reasons for the proposed change of |
25 | | ownership. Once such an application is submitted to the Board |
26 | | and reviewed by the Board staff, the Board Chair shall sign an |
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1 | | exemption letter within 15 business days of receipt of the |
2 | | application if the proposed change of ownership is consistent |
3 | | with the requirements of this Section. If the Board Chair has a |
4 | | conflict of interest, the Chair may request review by the |
5 | | Board. Notwithstanding any other provision of this Act, for |
6 | | purposes of this Section, a change of ownership among related |
7 | | persons means a transaction where the parties to the |
8 | | transaction are under common control or ownership before and |
9 | | after the transaction is completed. |
10 | | Nothing in this Act shall be construed as authorizing the |
11 | | Board to impose any conditions, obligations, or limitations, |
12 | | other than those required by this Section, with respect to the |
13 | | issuance of an exemption for a change of ownership, including, |
14 | | but not limited to, the time period before which a subsequent |
15 | | change of ownership of the health care facility could be |
16 | | sought, or the commitment to continue to offer for a specified |
17 | | time period any services currently offered by the health care |
18 | | facility. |
19 | | (a-3) Upon a finding that an application to close a health |
20 | | care facility is complete, the State Board shall publish a |
21 | | legal notice on 3 consecutive days in a newspaper of general |
22 | | circulation in the area or community to be affected and afford |
23 | | the public an opportunity to request a hearing. If the |
24 | | application is for a facility located in a Metropolitan |
25 | | Statistical Area, an additional legal notice shall be published |
26 | | in a newspaper of limited circulation, if one exists, in the |
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1 | | area in which the facility is located. If the newspaper of |
2 | | limited circulation is published on a daily basis, the |
3 | | additional legal notice shall be published on 3 consecutive |
4 | | days. The legal notice shall also be posted on the Health |
5 | | Facilities and Services Review Board's web site and sent to the |
6 | | State Representative and State Senator of the district in which |
7 | | the health care facility is located. |
8 | | (a-5) Upon a finding that an application to discontinue a |
9 | | category of service is complete and provides the requested |
10 | | information, as specified by the State Board, an exemption |
11 | | shall be issued. No later than 30 days after the issuance of |
12 | | the exemption, the health care facility must give written |
13 | | notice of the discontinuation of the category of service to the |
14 | | State Senator and State Representative serving the legislative |
15 | | district in which the health care facility is located. |
16 | | For the purposes of this subsection, "newspaper of limited |
17 | | circulation" means a newspaper intended to serve a particular |
18 | | or defined population of a specific geographic area within a |
19 | | Metropolitan Statistical Area such as a municipality, town, |
20 | | village, township, or community area, but does not include |
21 | | publications of professional and trade associations.
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22 | | (b) If a public hearing is requested, it shall be held at |
23 | | least 15 days but no more than 30 days after the date of |
24 | | publication of the legal notice in the community in which the |
25 | | facility is located. The hearing shall be held in a place of |
26 | | reasonable size and accessibility and a full and complete |
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1 | | written transcript of the proceedings shall be made. The |
2 | | applicant shall provide a summary of the proposal proposed |
3 | | change of ownership for distribution at the public hearing.
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4 | | (c) For the purposes of this Section "newspaper of limited |
5 | | circulation" means a newspaper intended to serve a particular |
6 | | or defined population of a specific geographic area within a |
7 | | Metropolitan Statistical Area such as a municipality, town, |
8 | | village, township, or community area, but does not include |
9 | | publications of professional and trade associations. |
10 | | (Source: P.A. 98-1086, eff. 8-26-14.)
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11 | | Section 99. Effective date. This Act takes effect upon |
12 | | becoming law.
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