Full Text of SB0033 100th General Assembly
SB0033sam001 100TH GENERAL ASSEMBLY | Sen. Michael E. Hastings Filed: 2/15/2018
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| 1 | | AMENDMENT TO SENATE BILL 33
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 33 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Health Facilities Planning Act is | 5 | | amended by changing Sections 5 and 12.2 and by adding Section | 6 | | 12.25 as follows:
| 7 | | (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
| 8 | | (Text of Section before amendment by P.A. 100-518 )
| 9 | | (Section scheduled to be repealed on December 31, 2019)
| 10 | | Sec. 5. Construction, modification, or establishment of | 11 | | health care facilities or acquisition of major medical | 12 | | equipment; permits or exemptions. No person shall construct, | 13 | | modify or establish a
health care facility or acquire major | 14 | | medical equipment without first
obtaining a permit or exemption | 15 | | from the State
Board. The State Board shall not delegate to the | 16 | | staff of
the State Board or any other person or entity the |
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| 1 | | authority to grant
permits or exemptions whenever the staff or | 2 | | other person or
entity would be required to exercise any | 3 | | discretion affecting the decision
to grant a permit or | 4 | | exemption. The State Board may, by rule, delegate authority to | 5 | | the Chairman to grant permits or exemptions when applications | 6 | | meet all of the State Board's review criteria and are | 7 | | unopposed.
| 8 | | A permit or exemption shall be obtained prior to the | 9 | | acquisition
of major medical equipment or to the construction | 10 | | or modification of a
health care facility which:
| 11 | | (a) requires a total capital expenditure in excess of | 12 | | the capital
expenditure
minimum; or
| 13 | | (b) substantially changes the scope or changes the | 14 | | functional operation
of the facility; or
| 15 | | (c) changes the bed capacity of a health care facility | 16 | | by increasing the
total number of beds or by distributing | 17 | | beds among
various categories of service or by relocating | 18 | | beds from one physical facility
or site to another by more | 19 | | than 20 beds or more than 10% of total bed
capacity as | 20 | | defined by the
State Board, whichever is less, over a 2 | 21 | | year period.
| 22 | | A permit shall be valid only for the defined construction | 23 | | or modifications,
site, amount and person named in the | 24 | | application for such permit and
shall not be transferable or | 25 | | assignable. A permit shall be valid until such
time as the | 26 | | project has been completed,
provided that the project
commences |
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| 1 | | and proceeds to completion with due diligence by the completion | 2 | | date or extension date approved by the Board. | 3 | | A permit holder must do the following: (i) submit the final | 4 | | completion and cost report for the project within 90 days after | 5 | | the approved project completion date or extension date and (ii) | 6 | | submit annual progress reports no earlier than 30 days before | 7 | | and no later than 30 days after each anniversary date of the | 8 | | Board's approval of the permit until the project is completed. | 9 | | To maintain a valid permit and to monitor progress toward | 10 | | project commencement and completion, routine post-permit | 11 | | reports shall be limited to annual progress reports and the | 12 | | final completion and cost report. Annual progress reports shall | 13 | | include information regarding the committed funds expended | 14 | | toward the approved project. If the project is not completed in | 15 | | one year, then, by the second annual report, the permit holder | 16 | | shall expend 33% or more of the total project cost or shall | 17 | | make a commitment to expend 33% or more of the total project | 18 | | cost by signed contracts or other legal means, and the report | 19 | | shall contain information regarding those expenditures or | 20 | | commitments. If the project is to be completed in one year, | 21 | | then the first annual report shall contain the expenditure | 22 | | commitment information for the total project cost. The State | 23 | | Board may extend the expenditure commitment period after | 24 | | considering a permit holder's showing of good cause and request | 25 | | for additional time to complete the project. | 26 | | The Certificate of Need process required under this Act is |
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| 1 | | designed to restrain rising health care costs by preventing | 2 | | unnecessary construction or modification of health care | 3 | | facilities. The Board must assure that the establishment, | 4 | | construction, or modification of a health care facility or the | 5 | | acquisition of major medical equipment is consistent with the | 6 | | public interest and that the proposed project is consistent | 7 | | with the orderly and economic development or acquisition of | 8 | | those facilities and equipment and is in accord with the | 9 | | standards, criteria, or plans of need adopted and approved by | 10 | | the Board. Board decisions regarding the construction of health | 11 | | care facilities must consider capacity, quality, value, and | 12 | | equity. Projects may deviate from the costs, fees, and expenses | 13 | | provided in their project cost information for the project's | 14 | | cost components, provided that the final total project cost | 15 | | does not exceed the approved permit amount. Project alterations | 16 | | shall not increase the total approved permit amount by more | 17 | | than the limit set forth under the Board's rules. | 18 | | Major construction
projects, for the purposes of this Act, | 19 | | shall include but are not limited
to: projects for the | 20 | | construction of new buildings; additions to existing
| 21 | | facilities; modernization projects
whose cost is in excess of | 22 | | $1,000,000 or 10% of the facilities' operating
revenue, | 23 | | whichever is less; and such other projects as the State Board | 24 | | shall
define and prescribe pursuant to this Act.
| 25 | | The acquisition by any person of major medical equipment | 26 | | that will not
be owned by or located in a health care facility |
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| 1 | | and that will not be used
to provide services to inpatients of | 2 | | a health care facility shall be exempt
from review provided | 3 | | that a notice is filed in accordance with exemption
| 4 | | requirements.
| 5 | | Notwithstanding any other provision of this Act, no permit | 6 | | or exemption is
required for the construction or modification | 7 | | of a non-clinical service area
of a health care facility.
| 8 | | Notwithstanding any such advisory opinion issued by State | 9 | | Board staff prior to this amendatory Act of the 100th General | 10 | | Assembly, the State Board shall not grant, delegate, authorize, | 11 | | or otherwise permit the staff of the State Board the power to | 12 | | issue advisory opinions stating that it is the opinion of staff | 13 | | that a change of ownership is not reviewable by the State | 14 | | Board, nor shall the State Board or the staff of the State | 15 | | Board use any other mechanism to avoid the review of the change | 16 | | of ownership of a health care facility. This provision of this | 17 | | amendatory Act of the 100th General Assembly is declaratory of | 18 | | existing law. | 19 | | (Source: P.A. 97-1115, eff. 8-27-12; 98-414, eff. 1-1-14.)
| 20 | | (Text of Section after amendment by P.A. 100-518 )
| 21 | | (Section scheduled to be repealed on December 31, 2019)
| 22 | | Sec. 5. Construction, modification, or establishment of | 23 | | health care facilities or acquisition of major medical | 24 | | equipment; permits or exemptions. No person shall construct, | 25 | | modify or establish a
health care facility or acquire major |
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| 1 | | medical equipment without first
obtaining a permit or exemption | 2 | | from the State
Board. The State Board shall not delegate to the | 3 | | staff of
the State Board or any other person or entity the | 4 | | authority to grant
permits or exemptions whenever the staff or | 5 | | other person or
entity would be required to exercise any | 6 | | discretion affecting the decision
to grant a permit or | 7 | | exemption. The State Board may, by rule, delegate authority to | 8 | | the Chairman to grant permits or exemptions when applications | 9 | | meet all of the State Board's review criteria and are | 10 | | unopposed.
| 11 | | A permit or exemption shall be obtained prior to the | 12 | | acquisition
of major medical equipment or to the construction | 13 | | or modification of a
health care facility which:
| 14 | | (a) requires a total capital expenditure in excess of | 15 | | the capital
expenditure
minimum; or
| 16 | | (b) substantially changes the scope or changes the | 17 | | functional operation
of the facility; or
| 18 | | (c) changes the bed capacity of a health care facility | 19 | | by increasing the
total number of beds or by distributing | 20 | | beds among
various categories of service or by relocating | 21 | | beds from one physical facility
or site to another by more | 22 | | than 20 beds or more than 10% of total bed
capacity as | 23 | | defined by the
State Board, whichever is less, over a 2 | 24 | | year period.
| 25 | | A permit shall be valid only for the defined construction | 26 | | or modifications,
site, amount and person named in the |
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| 1 | | application for such permit and
shall not be transferable or | 2 | | assignable. A permit shall be valid until such
time as the | 3 | | project has been completed,
provided that the project
commences | 4 | | and proceeds to completion with due diligence by the completion | 5 | | date or extension date approved by the Board. | 6 | | A permit holder must do the following: (i) submit the final | 7 | | completion and cost report for the project within 90 days after | 8 | | the approved project completion date or extension date and (ii) | 9 | | submit annual progress reports no earlier than 30 days before | 10 | | and no later than 30 days after each anniversary date of the | 11 | | Board's approval of the permit until the project is completed. | 12 | | To maintain a valid permit and to monitor progress toward | 13 | | project commencement and completion, routine post-permit | 14 | | reports shall be limited to annual progress reports and the | 15 | | final completion and cost report. Annual progress reports shall | 16 | | include information regarding the committed funds expended | 17 | | toward the approved project. For projects to be completed in 12 | 18 | | months or less, the permit holder shall report financial | 19 | | commitment in the final completion and cost report. For | 20 | | projects to be completed between 12 to 24 months, the permit | 21 | | holder shall report financial commitment in the first annual | 22 | | report. For projects to be completed in more than 24 months, | 23 | | the permit holder shall report financial commitment in the | 24 | | second annual progress report. The report shall contain | 25 | | information regarding financial commitment expenditures or | 26 | | commitments. The State Board may extend the financial |
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| 1 | | commitment period after considering a permit holder's showing | 2 | | of good cause and request for additional time to complete the | 3 | | project. | 4 | | The Certificate of Need process required under this Act is | 5 | | designed to restrain rising health care costs by preventing | 6 | | unnecessary construction or modification of health care | 7 | | facilities. The Board must assure that the establishment, | 8 | | construction, or modification of a health care facility or the | 9 | | acquisition of major medical equipment is consistent with the | 10 | | public interest and that the proposed project is consistent | 11 | | with the orderly and economic development or acquisition of | 12 | | those facilities and equipment and is in accord with the | 13 | | standards, criteria, or plans of need adopted and approved by | 14 | | the Board. Board decisions regarding the construction of health | 15 | | care facilities must consider capacity, quality, value, and | 16 | | equity. Projects may deviate from the costs, fees, and expenses | 17 | | provided in their project cost information for the project's | 18 | | cost components, provided that the final total project cost | 19 | | does not exceed the approved permit amount. Project alterations | 20 | | shall not increase the total approved permit amount by more | 21 | | than the limit set forth under the Board's rules. | 22 | | Major construction
projects, for the purposes of this Act, | 23 | | shall include but are not limited
to: projects for the | 24 | | construction of new buildings; additions to existing
| 25 | | facilities; modernization projects
whose cost is in excess of | 26 | | $1,000,000 or 10% of the facilities' operating
revenue, |
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| 1 | | whichever is less; and such other projects as the State Board | 2 | | shall
define and prescribe pursuant to this Act.
| 3 | | The acquisition by any person of major medical equipment | 4 | | that will not
be owned by or located in a health care facility | 5 | | and that will not be used
to provide services to inpatients of | 6 | | a health care facility shall be exempt
from review provided | 7 | | that a notice is filed in accordance with exemption
| 8 | | requirements.
| 9 | | Notwithstanding any other provision of this Act, no permit | 10 | | or exemption is
required for the construction or modification | 11 | | of a non-clinical service area
of a health care facility.
| 12 | | Notwithstanding any such advisory opinion issued by State | 13 | | Board staff prior to this amendatory Act of the 100th General | 14 | | Assembly, the State Board shall not grant, delegate, authorize, | 15 | | or otherwise permit the staff of the State Board the power to | 16 | | issue advisory opinions stating that it is the opinion of staff | 17 | | that a change of ownership is not reviewable by the State | 18 | | Board, nor shall the State Board or the staff of the State | 19 | | Board use any other mechanism to avoid the review of the change | 20 | | of ownership of a health care facility. This provision of this | 21 | | amendatory Act of the 100th General Assembly is declaratory of | 22 | | existing law. | 23 | | (Source: P.A. 100-518, eff. 6-1-18.)
| 24 | | (20 ILCS 3960/12.2)
| 25 | | (Section scheduled to be repealed on December 31, 2019)
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| 1 | | Sec. 12.2. Powers of the State Board staff. | 2 | | (a) For purposes of this Act,
the staff shall exercise the | 3 | | following powers and duties:
| 4 | | (1) Review applications for permits and exemptions in | 5 | | accordance with the
standards, criteria, and plans of need | 6 | | established by the State Board under
this Act and certify | 7 | | its finding to the State Board.
| 8 | | (1.5) Post the following on the Board's web site: | 9 | | relevant (i)
rules,
(ii)
standards, (iii)
criteria, (iv) | 10 | | State norms, (v) references used by Board staff in making
| 11 | | determinations about whether application criteria are met, | 12 | | and (vi) notices of
project-related filings, including | 13 | | notice of public comments related to the
application.
| 14 | | (2) Charge and collect an amount determined by the | 15 | | State Board and the staff to be
reasonable fees for the | 16 | | processing of applications by the State Board.
The State | 17 | | Board shall set the amounts by rule. Application fees for | 18 | | continuing care retirement communities, and other health | 19 | | care models that include regulated and unregulated | 20 | | components, shall apply only to those components subject to | 21 | | regulation under this Act. All fees and fines
collected | 22 | | under the provisions of this Act shall be deposited
into | 23 | | the Illinois Health Facilities Planning Fund to be used for | 24 | | the
expenses of administering this Act.
| 25 | | (2.1) Publish the following reports on the State Board | 26 | | website: |
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| 1 | | (A) An annual accounting, aggregated by category | 2 | | and with names of parties redacted, of fees, fines, and | 3 | | other revenue collected as well as expenses incurred, | 4 | | in the administration of this Act. | 5 | | (B) An annual report, with names of the parties | 6 | | redacted, that summarizes all settlement agreements | 7 | | entered into with the State Board that resolve an | 8 | | alleged instance of noncompliance with State Board | 9 | | requirements under this Act. | 10 | | (C) A monthly report that includes the status of | 11 | | applications and recommendations regarding updates to | 12 | | the standard, criteria, or the health plan as | 13 | | appropriate. | 14 | | (D) Board reports showing the degree to which an | 15 | | application conforms to the review standards, a | 16 | | summation of relevant public testimony, and any | 17 | | additional information that staff wants to | 18 | | communicate. | 19 | | (3) Coordinate with other State agencies having | 20 | | responsibilities
affecting
health care facilities, | 21 | | including licensure and cost reporting agencies.
| 22 | | (b) For the purposes of this Act, the State Board staff | 23 | | shall not have the power or duty to issue any advisory opinions | 24 | | stating that any change of ownership is not reviewable by the | 25 | | Board. The provisions of this subsection (b) are declaratory of | 26 | | existing law. |
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| 1 | | (Source: P.A. 98-1086, eff. 8-26-14; 99-527, eff. 1-1-17 .)
| 2 | | (20 ILCS 3960/12.25 new) | 3 | | Sec. 12.25. Review of State Board staff advisory opinions. | 4 | | (a) Within 150 days after this amendatory Act of the 100th | 5 | | General Assembly, the State Board shall review each staff | 6 | | advisory opinion issued since 2006 that is related to whether a | 7 | | permit or exemption is required for change of ownership or | 8 | | control. As part of that review, the State Board shall notify | 9 | | each attorney that has requested a staff advisory opinion, and | 10 | | the health care facility for which the staff advisory opinion | 11 | | was requested, that the health care facility may be operating | 12 | | in violation of this Act because it may have engaged in a | 13 | | change of ownership without a permit or exemption. The State | 14 | | Board shall also inform each such health care facility that | 15 | | this Act authorizes the Board to impose the fine described in | 16 | | paragraph (4) of subsection (a) of Section 14.1 of this Act, | 17 | | and that Section 13.1 of this Act prohibits the facility from | 18 | | applying for licensure. | 19 | | (b) Within 150 days after this amendatory Act of the 100th | 20 | | General Assembly, the State Board shall, by rule, establish an | 21 | | expedited schedule for review of any permit or exemption | 22 | | application filed by a health care facility identified and | 23 | | notified under subsection (a). | 24 | | (c) Within 150 days after this amendatory Act of the 100th | 25 | | General Assembly, the State Board shall, by rule, establish a |
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| 1 | | schedule for reviewing and determining whether a fine | 2 | | authorized under paragraph (4) of subsection (a) of Section | 3 | | 14.1 of this Act is to be imposed on each health care facility | 4 | | identified and notified under subsection (a). | 5 | | (d) Within 150 days after this amendatory Act of the 100th | 6 | | General Assembly, the State Board shall notify the Department | 7 | | of Public Health for each health care facility identified and | 8 | | notified under subsection (a) that such health care facility | 9 | | may be ineligible for licensure. The Department of Public | 10 | | Health shall not terminate the license of any health care | 11 | | facility identified and notified under subsection (a) that: (1) | 12 | | obtains a permit or exemption for a change of ownership; and | 13 | | (2) pays the fine levied under subsection (c). | 14 | | Section 95. No acceleration or delay. Where this Act makes | 15 | | changes in a statute that is represented in this Act by text | 16 | | that is not yet or no longer in effect (for example, a Section | 17 | | represented by multiple versions), the use of that text does | 18 | | not accelerate or delay the taking effect of (i) the changes | 19 | | made by this Act or (ii) provisions derived from any other | 20 | | Public Act.
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.".
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