Full Text of HB3504 99th General Assembly
HB3504enr 99TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Health Facilities Planning Act is | 5 | | amended by changing Sections 6 and 8.5 as follows:
| 6 | | (20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
| 7 | | (Section scheduled to be repealed on December 31, 2019)
| 8 | | Sec. 6. Application for permit or exemption; exemption | 9 | | regulations.
| 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
| 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.
| 18 | | (b) The State Board shall establish by regulation the | 19 | | procedures and
requirements
regarding issuance of exemptions.
| 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 , discontinuation of a |
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| 1 | | category of service, and discontinuation of a health care | 2 | | facility, other than a health care facility maintained by the | 3 | | State or any agency or department thereof or a nursing home | 4 | | maintained by a county . For a change of
ownership of a health | 5 | | care
facility between related persons , the State Board shall | 6 | | provide by rule for an
expedited
process for obtaining an | 7 | | exemption in accordance with Section 8.5 of this Act . In | 8 | | connection with a change of ownership, the State Board may | 9 | | approve the transfer of an existing permit without regard to | 10 | | whether the permit to be transferred has yet been obligated, | 11 | | except for permits establishing a new facility or a new | 12 | | category of service.
| 13 | | (c) All applications shall be signed by the applicant and | 14 | | shall be
verified by any 2 officers thereof.
| 15 | | (c-5) Any written review or findings of the Board staff or | 16 | | any other reviewing organization under Section 8 concerning an | 17 | | application for a permit must be made available to the public | 18 | | at least 14 calendar days before the meeting of the State Board | 19 | | at which the review or findings are considered. The applicant | 20 | | and members of the public may submit, to the State Board, | 21 | | written responses regarding the facts set forth in the review | 22 | | or findings of the Board staff or reviewing organization. | 23 | | Members of the public shall have until 10 days before the | 24 | | meeting of the State Board to submit any written response | 25 | | concerning the Board staff's written review or findings. The | 26 | | Board staff may revise any findings to address corrections of |
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| 1 | | factual errors cited in the public response. At the meeting, | 2 | | the State Board may, in its discretion, permit the submission | 3 | | of other additional written materials.
| 4 | | (d) Upon receipt of an application for a permit, the State | 5 | | Board shall
approve and authorize the issuance of a permit if | 6 | | it finds (1) that the
applicant is fit, willing, and able to | 7 | | provide a proper standard of
health care service for the | 8 | | community with particular regard to the
qualification, | 9 | | background and character of the applicant, (2) that
economic | 10 | | feasibility is demonstrated in terms of effect on the existing
| 11 | | and projected operating budget of the applicant and of the | 12 | | health care
facility; in terms of the applicant's ability to | 13 | | establish and operate
such facility in accordance with | 14 | | licensure regulations promulgated under
pertinent state laws; | 15 | | and in terms of the projected impact on the total
health care | 16 | | expenditures in the facility and community, (3) that
safeguards | 17 | | are provided which assure that the establishment,
construction | 18 | | or modification of the health care facility or acquisition
of | 19 | | major medical equipment is consistent
with the public interest, | 20 | | and (4) that the proposed project is consistent
with the | 21 | | orderly and economic
development of such facilities and | 22 | | equipment and is in accord with standards,
criteria, or plans | 23 | | of need adopted and approved pursuant to the
provisions of | 24 | | Section 12 of this Act.
| 25 | | (Source: P.A. 96-31, eff. 6-30-09; 97-1115, eff. 8-27-12.)
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| 1 | | (20 ILCS 3960/8.5) | 2 | | (Section scheduled to be repealed on December 31, 2019) | 3 | | Sec. 8.5. Certificate of exemption for change of ownership | 4 | | of a health care facility; discontinuation of a health care | 5 | | facility or category of service; public notice and public | 6 | | hearing. | 7 | | (a) Upon a finding that an application for a change of | 8 | | ownership is complete, the State Board shall publish a legal | 9 | | notice on one day 3 consecutive days in a newspaper of general | 10 | | circulation in the area or community to be affected and afford | 11 | | the public an opportunity to request a hearing. If the | 12 | | application is for a facility located in a Metropolitan | 13 | | Statistical Area, an additional legal notice shall be published | 14 | | in a newspaper of limited circulation, if one exists, in the | 15 | | area in which the facility is located. If the newspaper of | 16 | | limited circulation is published on a daily basis, the | 17 | | additional legal notice shall be published on one day 3 | 18 | | consecutive days . The applicant shall pay the cost incurred by | 19 | | the Board in publishing the change of ownership notice in | 20 | | newspapers as required under this subsection. The legal notice | 21 | | shall also be posted on the Health Facilities and Services | 22 | | Review Board's web site and sent to the State Representative | 23 | | and State Senator of the district in which the health care | 24 | | facility is located. An application for change of ownership of | 25 | | a hospital shall not be deemed complete without a signed | 26 | | certification that for a period of 2 years after the change of |
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| 1 | | ownership transaction is effective, the hospital will not adopt | 2 | | a charity care policy that is
more restrictive than the policy | 3 | | in effect during the year prior to the transaction. An | 4 | | application for a change of ownership need not contain signed | 5 | | transaction documents so long as it includes the following key | 6 | | terms of the transaction: names and background of the parties; | 7 | | structure of the transaction; the person who will be the | 8 | | licensed or certified entity after the transaction; the | 9 | | ownership or membership interests in such licensed or certified | 10 | | entity both prior to and after the transaction; fair market | 11 | | value of assets to be transferred; and the purchase price or | 12 | | other form of consideration to be provided for those assets. | 13 | | The issuance of the certificate of exemption shall be | 14 | | contingent upon the applicant submitting a statement to the | 15 | | Board within 90 days after the closing date of the transaction, | 16 | | or such longer period as provided by the Board, certifying that | 17 | | the change of ownership has been completed in accordance with | 18 | | the key terms contained in the application. If such key terms | 19 | | of the transaction change, a new application shall be required. | 20 | | Where a change of ownership is among related persons, and | 21 | | there are no other changes being proposed at the health care | 22 | | facility that would otherwise require a permit or exemption | 23 | | under this Act, the applicant shall submit an application | 24 | | consisting of a standard notice in a form set forth by the | 25 | | Board briefly explaining the reasons for the proposed change of | 26 | | ownership. Once such an application is submitted to the Board |
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| 1 | | and reviewed by the Board staff, the Board Chair shall take | 2 | | action on an application for an exemption for a change of | 3 | | ownership among related persons within 45 days after the | 4 | | application has been deemed complete, provided the application | 5 | | meets the applicable standards under this Section. If the Board | 6 | | Chair has a conflict of interest or for other good cause, the | 7 | | Chair may request review by the Board. Notwithstanding any | 8 | | other provision of this Act, for purposes of this Section, a | 9 | | change of ownership among related persons means a transaction | 10 | | where the parties to the transaction are under common control | 11 | | or ownership before and after the transaction is completed. | 12 | | Nothing in this Act shall be construed as authorizing the | 13 | | Board to impose any conditions, obligations, or limitations, | 14 | | other than those required by this Section, with respect to the | 15 | | issuance of an exemption for a change of ownership, including, | 16 | | but not limited to, the time period before which a subsequent | 17 | | change of ownership of the health care facility could be | 18 | | sought, or the commitment to continue to offer for a specified | 19 | | time period any services currently offered by the health care | 20 | | facility. | 21 | | (a-3) Upon a finding that an application to close a health | 22 | | care facility is complete, the State Board shall publish a | 23 | | legal notice on 3 consecutive days in a newspaper of general | 24 | | circulation in the area or community to be affected and afford | 25 | | the public an opportunity to request a hearing. If the | 26 | | application is for a facility located in a Metropolitan |
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| 1 | | Statistical Area, an additional legal notice shall be published | 2 | | in a newspaper of limited circulation, if one exists, in the | 3 | | area in which the facility is located. If the newspaper of | 4 | | limited circulation is published on a daily basis, the | 5 | | additional legal notice shall be published on 3 consecutive | 6 | | days. The legal notice shall also be posted on the Health | 7 | | Facilities and Services Review Board's web site and sent to the | 8 | | State Representative and State Senator of the district in which | 9 | | the health care facility is located. | 10 | | (a-5) Upon a finding that an application to discontinue a | 11 | | category of service is complete and provides the requested | 12 | | information, as specified by the State Board, an exemption | 13 | | shall be issued. No later than 30 days after the issuance of | 14 | | the exemption, the health care facility must give written | 15 | | notice of the discontinuation of the category of service to the | 16 | | State Senator and State Representative serving the legislative | 17 | | district in which the health care facility is located. | 18 | | For the purposes of this subsection, "newspaper of limited | 19 | | circulation" means a newspaper intended to serve a particular | 20 | | or defined population of a specific geographic area within a | 21 | | Metropolitan Statistical Area such as a municipality, town, | 22 | | village, township, or community area, but does not include | 23 | | publications of professional and trade associations.
| 24 | | (b) If a public hearing is requested, it shall be held at | 25 | | least 15 days but no more than 30 days after the date of | 26 | | publication of the legal notice in the community in which the |
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| 1 | | facility is located. The hearing shall be held in a place of | 2 | | reasonable size and accessibility and a full and complete | 3 | | written transcript of the proceedings shall be made. The | 4 | | applicant shall provide a summary of the proposal proposed | 5 | | change of ownership for distribution at the public hearing.
| 6 | | (c) For the purposes of this Section "newspaper of limited | 7 | | circulation" means a newspaper intended to serve a particular | 8 | | or defined population of a specific geographic area within a | 9 | | Metropolitan Statistical Area such as a municipality, town, | 10 | | village, township, or community area, but does not include | 11 | | publications of professional and trade associations. | 12 | | (Source: P.A. 98-1086, eff. 8-26-14.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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