State of Illinois
91st General Assembly
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Public Act 91-0782

SB807 Enrolled                                 LRB9106074MWmb

    AN ACT in relation to health facilities.

    Be it  enacted  by  the  People  of  the  State  of  Illinois,
represented in the General Assembly:

    Section 5.  The Open Meetings Act is amended by  changing
Section 1.02 as follows:

    (5 ILCS 120/1.02) (from Ch. 102, par. 41.02)
    Sec. 1.02.  For the purposes of this Act:
    "Meeting"  means  any gathering of a majority of a quorum
of the members commissioners of a public body  held  for  the
purpose of discussing public business.
    "Public   body"   includes  all  legislative,  executive,
administrative or advisory bodies  of  the  State,  counties,
townships,   cities,  villages,  incorporated  towns,  school
districts  and  all  other  municipal  corporations,  boards,
bureaus, committees or commissions of  this  State,  and  any
subsidiary  bodies  of any of the foregoing including but not
limited to committees and subcommittees which  are  supported
in  whole  or  in  part  by  tax revenue, or which expend tax
revenue,  except  the  General  Assembly  and  committees  or
commissions thereof.  "Public body" includes  tourism  boards
and  convention  or  civic  center boards located in counties
that are contiguous to the Mississippi River with populations
of more than 250,000 but less than  300,000.   "Public  body"
includes the Health Facilities Planning Board.  "Public body"
does  not include a child death review team established under
the Child Death Review Team  Act  or  an  ethics  commission,
ethics  officer,  or ultimate jurisdictional authority acting
under the State Gift Ban Act as provided  by  Section  80  of
that Act.
(Source:  P.A.  90-517,  eff.  8-22-97;  90-737, eff. 1-1-99;
revised 11-8-99.)
    Section 10.   The  State  Gift  Ban  Act  is  amended  by
changing Section 5 as follows:

    (5 ILCS 425/5)
    Sec. 5.  Definitions.  As used in this Act:
    "Commission"  means  an ethics commission created by this
Act.
    "Employee"   means   all   full-time,   part-time,    and
contractual  employees,  appointed and elected officials, and
directors of a governmental entity.
    "Gift"  means  any  gratuity,  discount,   entertainment,
hospitality,   loan,   forbearance,   or  other  tangible  or
intangible item having  monetary  value  including,  but  not
limited  to, cash, food and drink, and honoraria for speaking
engagements  related  to  or   attributable   to   government
employment  or  the official position of an employee, member,
officer, or judge.
    "Governmental   entity"   means   each   office,   board,
commission,  agency,  department,   authority,   institution,
university,  body politic and corporate, administrative unit,
and corporate outgrowth of the  executive,  legislative,  and
judicial branches of State government, whether created by the
Illinois  Constitution,  by or in accordance with statute, or
by executive order of the  Governor.   "Governmental  entity"
includes the Health Facilities Planning Board.
    "Judge"  means judges and associate judges of the Supreme
Court, Appellate Courts, and Circuit Courts.
    "Member" means a member of the General Assembly.
    "Officer" means a State constitutional officer.
    "Political  organization"  means  a   party,   committee,
association,  fund,  or  other  organization  (whether or not
incorporated)  organized  and  operated  primarily  for   the
purpose  of directly or indirectly accepting contributions or
making expenditures, or both, for the function of influencing
or  attempting  to  influence  the   selection,   nomination,
election,  or  appointment  of any individual to any federal,
state, or local  public  office  or  office  in  a  political
organization,    or   the   election   of   Presidential   or
Vice-Presidential electors, whether or  not the individual or
electors are selected, nominated, elected, or appointed.  The
term includes the  making  of  expenditures  relating  to  an
office  described in the preceding sentence that, if incurred
by the individual, would be allowable as a federal income tax
deduction for trade or business expenses.
    "Prohibited source" means any person or entity who:
         (1)  is seeking official action (i) by  the  member,
    officer,  or judge or (ii) in the case of an employee, by
    the  employee  or  by   the   member,   officer,   judge,
    governmental  entity,  or  other  employee  directing the
    employee;
         (2)  does business or seeks to do business (i)  with
    the  member, officer,  or judge or (ii) in the case of an
    employee, with the employee or with the member,  officer,
    judge,  governmental  entity, or other employee directing
    the employee;
         (3)   conducts  activities  regulated  (i)  by   the
    member,  officer,  or  judge  or  (ii)  in the case of an
    employee, by the employee  or  by  the  member,  officer,
    judge,  governmental  entity, or other employee directing
    the employee;
         (4)   has  interests  that  may   be   substantially
    affected  by  the  performance  or non-performance of the
    official duties of  the  member,  officer,  employee,  or
    judge; or
         (5)  is registered or required to be registered with
    the  Secretary  of  State under the Lobbyist Registration
    Act.
    "Ultimate jurisdictional authority" means the following:
         (1)  For  members,   partisan   staff,   and   their
    secretaries,    the   appropriate   legislative   leader:
    President of the Senate, Minority Leader of  the  Senate,
    Speaker  of  the  House  of  Representatives, or Minority
    Leader of the House of Representatives.
         (2)  For State employees who are professional  staff
    or  employees  of  the  Senate and not covered under item
    (1), the Senate Operations Commission.
         (3)  For State employees who are professional  staff
    or  employees  of  the  House  of Representatives and not
    covered under item (1),  the  Speaker  of  the  House  of
    Representatives.
         (4)  For  State  employees  who are employees of the
    legislative  support   services   agencies,   the   Joint
    Committee on Legislative Support Services.
         (5)  For  judges,  the  Chief Justice of the Supreme
    Court.
         (6)  For State employees of the judicial branch, the
    Administrative Office of the Illinois Courts.
         (7)  For State  employees  of  an  executive  branch
    constitutional  officer, the appropriate executive branch
    constitutional officer.
         (8)  For State employees not under the  jurisdiction
    of  paragraph  (1),  (2), (3), (4), (5), (6), or (7), the
    Governor.
         (9)  For officers, the General Assembly.
(Source: P.A. 90-737, eff. 1-1-99.)

    Section 15.  The Illinois Health Facilities Planning  Act
is  amended  by  changing  Sections 3, 4, and 5 and by adding
Sections 4.1, 4.2, 5.2, 5.3, 19.5, and 19.6 as follows:

    (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
    (Text of Section before amendment by P.A. 91-656)
    Sec. 3.  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.  Any institution required to be licensed pursuant
    to 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; and
         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 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.
    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,  $1,000,000  for  major
medical  equipment  and  $2,000,000  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,  both  of  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.
(Source: P.A. 89-499, eff.  6-28-96;  89-530,  eff.  7-19-96;
90-14, eff. 7-1-97.)

    (Text of Section after amendment by P.A. 91-656)
    Sec. 3.  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; and
         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,  $1,000,000  for  major
medical  equipment  and  $2,000,000  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,  both  of  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.
(Source: P.A. 90-14, eff. 7-1-97; 91-656, eff. 1-1-01.)

    (20 ILCS 3960/4) (from Ch. 111 1/2, par. 1154)
    Sec.  4.  There is created the Health Facilities Planning
Board, which shall  perform  such  functions  as  hereinafter
described in this Act.
    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 proprietary 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  8  of  the  appointments  shall  be  of  the  same
political party.
    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 appointed by the  Governor  as  voting  members,
each  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.  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 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.
    Eight members of  the  State  Board  shall  constitute  a
quorum.    The  affirmative  vote  of 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.
(Source: P.A. 89-674, eff. 8-14-96; 90-14, eff. 7-1-97.)

    (20 ILCS 3960/4.1 new)
    Sec. 4.1. Ethics laws.
    (a)  All  State  Board  meetings  are subject to the Open
Meetings Act.
    (b) The State Board is subject to the State Gift Ban Act.

    (20 ILCS 3960/4.2 new)
    Sec. 4.2.  Ex parte communications.
    (a)  Except in the disposition of matters  that  agencies
are  authorized  by  law  to entertain or dispose of on an ex
parte basis including, but not limited to  rule  making,  the
State  Board,  any State Board member, employee, or a hearing
officer shall not engage in ex parte communication, after  an
application  for a permit is received, in connection with the
substance of any application for a permit with any person  or
party or the representative of any party.
    (b)  A  State  Board  member  or employee may communicate
with other members or employees and any State Board member or
hearing officer may have the aid and advice of  one  or  more
personal assistants.
    (c)  An  ex  parte  communication  received  by the State
Board, any State Board member, employee, or a hearing officer
shall be made a part of the record  of  the  pending  matter,
including  all  written communications, all written responses
to the communications, and a memorandum stating the substance
of all oral communications and all  responses  made  and  the
identity  of each person from whom the ex parte communication
was received.
    (d)  "Ex  parte  communication"  means  a   communication
between  a person who is not a State Board member or employee
and State Board member  or  employee  that  reflects  on  the
substance  of a pending State Board proceeding and that takes
place outside the record of the  proceeding.   Communications
regarding  matters  of  procedure  and  practice, such as the
format of pleading, number  of  copies  required,  manner  of
service,  and  status  of  proceedings, are not considered ex
parte communications.  Technical assistance with  respect  to
an application, not intended to influence any decision on the
application,  may  be provided by employees to the applicant.
Any   assistance  shall  be  documented  in  writing  by  the
applicant and employees within 10  business  days  after  the
assistance is provided.
    (e)  For  purposes  of  this  Section, "employee" means a
person the State Board or the Agency employs on a  full-time,
part-time, contract, or intern basis.
    (f)  The  State  Board,  State  Board  member, or hearing
examiner presiding over the proceeding, in  the  event  of  a
violation  of  this  Section,  must  take  whatever action is
necessary to ensure that the violation does not prejudice any
party or adversely affect the fairness of the proceedings.
    (g)  Nothing  in  this  Section  shall  be  construed  to
prevent the State Board or any member of the State Board from
consulting with the attorney for the State Board.
    (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
    Sec. 5.  After effective dates set by  the  State  Board,
no  person shall construct, modify or establish a health care
facility or acquire major  medical  equipment  without  first
obtaining  a  permit  or  exemption from the State Board. The
State Board shall not delegate to the Executive Secretary  of
the  State  Board or any other person or entity the authority
to  grant  permits  or  exemptions  whenever  the   Executive
Secretary  or  other  person  or  entity would be required to
exercise any discretion affecting the  decision  to  grant  a
permit  or  exemption.   The  State Board shall set effective
dates applicable to all or to each classification or category
of health care facilities and applicable to all or each  type
of  transaction  for  which  a  permit  is  required. Varying
effective dates may be set, providing the date  or  dates  so
set shall apply uniformly statewide.
    Notwithstanding  any  effective dates established by this
Act or by the State Board, no person  shall  be  required  to
obtain  a  permit  for  any  purpose under this Act until the
State health facilities plan referred to in paragraph (4)  of
Section  12  of this Act has been approved and adopted by the
State Board subsequent to public hearings  having  been  held
thereon.
    A  permit  or  exemption  shall  be obtained prior to the
acquisition of major medical equipment or to the construction
or modification of a health care facility which:
         (a)  requires a total capital expenditure in  excess
    of the capital expenditure minimum; or
         (b)  substantially  changes the scope or changes the
    functional operation of the facility; or
         (c)  changes the  bed  capacity  of  a  health  care
    facility  by  increasing  the  total number of beds or by
    distributing beds among various categories of service  or
    by  relocating beds from one physical facility or site to
    another by more than 10 beds or more than  10%  of  total
    bed  capacity as defined by the State Board, whichever is
    less, over a 2 year period.
    A permit shall be valid only for the defined construction
or modifications,  site,  amount  and  person  named  in  the
application  for such permit and shall not be transferable or
assignable. A permit shall be valid until such  time  as  the
project  has  been completed, provided that (a) obligation of
the project occurs within 12 months following issuance of the
permit except for major construction projects such obligation
must occur within 18 months following issuance of the permit;
and (b) the project commences and proceeds to completion with
due diligence. Major construction projects, for the  purposes
of  this  Act, shall include but are not limited to: projects
for the construction of new buildings; additions to  existing
facilities; modernization projects whose cost is in excess of
$1,000,000  or  10%  of  the  facilities'  operating revenue,
whichever is less; and such other projects as the State Board
shall define and prescribe pursuant to this  Act.  The  State
Board may extend the obligation period upon a showing of good
cause  by  the permit holder.  Permits for projects that have
not been obligated within the  prescribed  obligation  period
shall expire on the last day of that period.
    Persons  who  otherwise  would  be  required  to obtain a
permit shall be exempt from such  requirement  if  the  State
Board  finds that with respect to establishing a new facility
or  construction   of   new   buildings   or   additions   or
modifications  to  an  existing  facility,  final  plans  and
specifications  for  such work have prior to October 1, 1974,
been submitted to and approved by the  Department  of  Public
Health  in  accordance  with  the  requirements of applicable
laws.  Such exemptions shall be null and void after  December
31,  1979  unless  binding construction contracts were signed
prior  to  December  1,  1979  and  unless  construction  has
commenced prior to December 31, 1979.  Such exemptions  shall
be  valid  until  such time as the project has been completed
provided that the project proceeds  to  completion  with  due
diligence.
    The  acquisition by any person of major medical equipment
that will not be  owned  by  or  located  in  a  health  care
facility  and  that  will  not be used to provide services to
inpatients of a health care facility  shall  be  exempt  from
review  provided  that  a  notice is filed in accordance with
exemption requirements.
    Notwithstanding any  other  provision  of  this  Act,  no
permit  or  exemption  is  required  for  the construction or
modification of a non-clinical service area of a health  care
facility.
(Source: P.A. 88-18.)

    (20 ILCS 3960/5.2 new)
    Sec.  5.2.   After  the effective date of this amendatory
Act of the 91st General Assembly, no person shall  establish,
construct, or modify 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  without first obtaining a permit from
the State Board.

    (20 ILCS 3960/5.3 new)
    Sec. 5.3.  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.

    (20 ILCS 3960/19.5 new)
    Sec.  19.5.  Audit.   Upon  the  effective  date  of this
amendatory Act of the  91st  General  Assembly,  the  Auditor
General  must  commence  an  audit  of  the  State  Board  to
determine:
         (1) whether the State Board can demonstrate that the
    certificate  of need process is successful in controlling
    health care costs, allowing public  access  to  necessary
    health  services,  and  guaranteeing  the availability of
    quality health care to the general public;
         (2) whether the State Board is following its adopted
    rules and procedures;
         (3)  whether  the  State  Board  is  consistent   in
    awarding and denying certificates of need; and
         (4) whether the State Board's annual reports reflect
    a cost savings to the State.
    The  Auditor  General  must  report on the results of the
audit to the General Assembly.
    This Section is repealed when the Auditor  General  files
his or her report with the General Assembly.

    (20 ILCS 3960/19.6 new)
    Sec.  19.6.  Repeal.   This  Act  is  repealed on July 1,
2003.

    Section 20.  The Illinois State Auditing Act  is  amended
by changing Section 3-1 as follows:

    (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
    Sec.  3-1.  Jurisdiction  of Auditor General. The Auditor
General has jurisdiction over all State agencies to make post
audits and investigations authorized by or under this Act  or
the Constitution.
    The   Auditor   General   has   jurisdiction  over  local
government agencies and private agencies only:
         (a)  to make such post audits authorized by or under
    this Act as are necessary and incidental to a post  audit
    of a State agency or of a program administered by a State
    agency  involving  public  funds  of  the State, but this
    jurisdiction does not include  any  authority  to  review
    local  governmental  agencies in the obligation, receipt,
    expenditure or use of public funds of the State that  are
    granted  without  limitation or condition imposed by law,
    other than the general limitation that such funds be used
    for public purposes;
         (b)  to make investigations authorized by  or  under
    this Act or the Constitution; and
         (c)  to   make   audits  of  the  records  of  local
    government   agencies   to   verify   actual   costs   of
    state-mandated programs when directed to  do  so  by  the
    Legislative  Audit Commission at the request of the State
    Board of Appeals under the State Mandates Act.
    In addition to the foregoing,  the  Auditor  General  may
conduct  an  audit  of  the  Metropolitan Pier and Exposition
Authority,  the  Regional   Transportation   Authority,   the
Suburban  Bus  Division,  the  Commuter Rail Division and the
Chicago Transit Authority and any  other  subsidized  carrier
when  authorized  by  the Legislative Audit Commission.  Such
audit may be a financial, management or program audit, or any
combination thereof.
    The audit shall determine whether they are  operating  in
accordance  with all applicable laws and regulations. Subject
to  the  limitations  of  this  Act,  the  Legislative  Audit
Commission   may    by    resolution    specify    additional
determinations to be included in the scope of the audit.
    The  Auditor  General  may  also  conduct  an audit, when
authorized  by  the  Legislative  Audit  Commission,  of  any
hospital which receives 10% or more  of  its  gross  revenues
from  payments  from  the  State  of  Illinois, Department of
Public Aid, Medical Assistance Program.
    The Auditor General is authorized  to  conduct  financial
and  compliance  audits  of  the  Illinois  Distance Learning
Foundation and the Illinois Conservation Foundation.
    As soon as practical after the  effective  date  of  this
amendatory  Act  of 1995, the Auditor General shall conduct a
compliance and management audit of the City  of  Chicago  and
any  other  entity  with  regard  to the operation of Chicago
O'Hare International  Airport,  Chicago  Midway  Airport  and
Merrill  C.  Meigs Field. The audit shall include, but not be
limited  to,  an  examination  of  revenues,  expenses,   and
transfers  of  funds; purchasing and contracting policies and
practices;  staffing  levels;  and   hiring   practices   and
procedures.  When  completed,  the  audit  required  by  this
paragraph  shall  be  distributed  in accordance with Section
3-14.
    The  Auditor  General  shall  conduct  a  financial   and
compliance  and  program  audit  of  distributions  from  the
Municipal  Economic  Development  Fund during the immediately
preceding calendar year pursuant to Section  8-403.1  of  the
Public  Utilities  Act  at  no  cost to the city, village, or
incorporated town that received the distributions.
    The Auditor General must conduct an audit of  the  Health
Facilities  Planning  Board  pursuant  to Section 19.5 of the
Illinois Health Facilities Planning Act.
(Source: P.A. 89-386, eff. 8-18-95; 90-813, eff. 1-29-99.)

    Section 95.  No acceleration or delay.   Where  this  Act
makes changes in a statute that is represented in this Act by
text  that  is not yet or no longer in effect (for example, a
Section represented by multiple versions), the  use  of  that
text  does  not  accelerate or delay the taking effect of (i)
the changes made by this Act or (ii) provisions derived  from
any other Public Act.

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

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