Bill Text: IL HB3133 | 2015-2016 | 99th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Health Facilities Planning Act. Removes a provision requiring the State Board to prescribe and provide the forms upon which the State Board Staff Report shall be made. Provides that the State Board shall provide its rationale when voting on an item before it at a meeting in order to comply with the Code of Civil Procedure. Requires the transcript of the meeting to be incorporated into the Board's final decision. Provides that the State Board may require in-kind services instead of or in combination with the imposition of a fine. Limits this authorization to cases where the non-compliant individual or entity has waived the right to an administrative hearing or opportunity to appear before the Board. Provides that fines shall continue to accrue until the date that the matter is referred by the State Board to the Board's legal counsel. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2015-07-23 - Public Act . . . . . . . . . 99-0114 [HB3133 Detail]

Download: Illinois-2015-HB3133-Engrossed.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Health Facilities Planning Act is
amended by changing Sections 6.2, 12, and 14.1 as follows:
(20 ILCS 3960/6.2)
(Section scheduled to be repealed on December 31, 2019)
Sec. 6.2. Review of permits; State Board Staff Reports.
Upon receipt of an application for a permit to establish,
construct, or modify a health care facility, the State Board
staff shall notify the applicant in writing within 10 working
days either that the application is or is not complete. If the
application is complete, the State Board staff shall notify the
applicant of the beginning of the review process. If the
application is not complete, the Board staff shall explain
within the 10-day period why the application is incomplete.
The State Board staff shall afford a reasonable amount of
time as established by the State Board, but not to exceed 120
days, for the review of the application. The 120-day period
begins on the day the application is found to be substantially
complete, as that term is defined by the State Board. During
the 120-day period, the applicant may request an extension. An
applicant may modify the application at any time before a final

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administrative decision has been made on the application.
The State Board shall prescribe and provide the forms upon
which the State Board Staff Report shall be made. The State
Board staff shall submit its State Board Staff Report to the
State Board for its decision-making regarding approval or
denial of the permit.
When an application for a permit is initially reviewed by
State Board staff, as provided in this Section, the State Board
shall, upon request by the applicant or an interested person,
afford an opportunity for a public hearing within a reasonable
amount of time after receipt of the complete application, but
not to exceed 90 days after receipt of the complete
application. Notice of the hearing shall be made promptly, not
less than 10 days before the hearing, by certified mail to the
applicant and, not less than 10 days before the hearing, by
publication in a newspaper of general circulation in the area
or community to be affected. The hearing shall be held in the
area or community in which the proposed project is to be
located and shall be for the purpose of allowing the applicant
and any interested person to present public testimony
concerning the approval, denial, renewal, or revocation of the
permit. All interested persons attending the hearing shall be
given a reasonable opportunity to present their views or
arguments in writing or orally, and a record of all of the
testimony shall accompany any findings of the State Board
staff. The State Board shall adopt reasonable rules and

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regulations governing the procedure and conduct of the
hearings.
(Source: P.A. 97-1115, eff. 8-27-12; 98-1086, eff. 8-26-14.)
(20 ILCS 3960/12) (from Ch. 111 1/2, par. 1162)
(Section scheduled to be repealed on December 31, 2019)
Sec. 12. Powers and duties of State Board. For purposes of
this Act, the State Board shall exercise the following powers
and duties:
(1) Prescribe rules, regulations, standards, criteria,
procedures or reviews which may vary according to the purpose
for which a particular review is being conducted or the type of
project reviewed and which are required to carry out the
provisions and purposes of this Act. Policies and procedures of
the State Board shall take into consideration the priorities
and needs of medically underserved areas and other health care
services identified through the comprehensive health planning
process, giving special consideration to the impact of projects
on access to safety net services.
(2) Adopt procedures for public notice and hearing on all
proposed rules, regulations, standards, criteria, and plans
required to carry out the provisions of this Act.
(3) (Blank).
(4) Develop criteria and standards for health care
facilities planning, conduct statewide inventories of health
care facilities, maintain an updated inventory on the Board's

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web site reflecting the most recent bed and service changes and
updated need determinations when new census data become
available or new need formulae are adopted, and develop health
care facility plans which shall be utilized in the review of
applications for permit under this Act. Such health facility
plans shall be coordinated by the Board with pertinent State
Plans. Inventories pursuant to this Section of skilled or
intermediate care facilities licensed under the Nursing Home
Care Act, skilled or intermediate care facilities licensed
under the ID/DD Community Care Act, facilities licensed under
the Specialized Mental Health Rehabilitation Act, or nursing
homes licensed under the Hospital Licensing Act shall be
conducted on an annual basis no later than July 1 of each year
and shall include among the information requested a list of all
services provided by a facility to its residents and to the
community at large and differentiate between active and
inactive beds.
In developing health care facility plans, the State Board
shall consider, but shall not be limited to, the following:
(a) The size, composition and growth of the population
of the area to be served;
(b) The number of existing and planned facilities
offering similar programs;
(c) The extent of utilization of existing facilities;
(d) The availability of facilities which may serve as
alternatives or substitutes;

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(e) The availability of personnel necessary to the
operation of the facility;
(f) Multi-institutional planning and the establishment
of multi-institutional systems where feasible;
(g) The financial and economic feasibility of proposed
construction or modification; and
(h) In the case of health care facilities established
by a religious body or denomination, the needs of the
members of such religious body or denomination may be
considered to be public need.
The health care facility plans which are developed and
adopted in accordance with this Section shall form the basis
for the plan of the State to deal most effectively with
statewide health needs in regard to health care facilities.
(5) Coordinate with the Center for Comprehensive Health
Planning and other state agencies having responsibilities
affecting health care facilities, including those of licensure
and cost reporting. Beginning no later than January 1, 2013,
the Department of Public Health shall produce a written annual
report to the Governor and the General Assembly regarding the
development of the Center for Comprehensive Health Planning.
The Chairman of the State Board and the State Board
Administrator shall also receive a copy of the annual report.
(6) Solicit, accept, hold and administer on behalf of the
State any grants or bequests of money, securities or property
for use by the State Board or Center for Comprehensive Health

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Planning in the administration of this Act; and enter into
contracts consistent with the appropriations for purposes
enumerated in this Act.
(7) The State Board shall prescribe procedures for review,
standards, and criteria which shall be utilized to make
periodic reviews and determinations of the appropriateness of
any existing health services being rendered by health care
facilities subject to the Act. The State Board shall consider
recommendations of the Board in making its determinations.
(8) Prescribe, in consultation with the Center for
Comprehensive Health Planning, rules, regulations, standards,
and criteria for the conduct of an expeditious review of
applications for permits for projects of construction or
modification of a health care facility, which projects are
classified as emergency, substantive, or non-substantive in
nature.
Six months after June 30, 2009 (the effective date of
Public Act 96-31), substantive projects shall include no more
than the following:
(a) Projects to construct (1) a new or replacement
facility located on a new site or (2) a replacement
facility located on the same site as the original facility
and the cost of the replacement facility exceeds the
capital expenditure minimum, which shall be reviewed by the
Board within 120 days;
(b) Projects proposing a (1) new service within an

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existing healthcare facility or (2) discontinuation of a
service within an existing healthcare facility, which
shall be reviewed by the Board within 60 days; or
(c) Projects proposing a change in the bed capacity of
a health care facility by an increase in the total number
of beds or by a redistribution of beds among various
categories of service or by a relocation of beds from one
physical facility or site to another by more than 20 beds
or more than 10% of total bed capacity, as defined by the
State Board, whichever is less, over a 2-year period.
The Chairman may approve applications for exemption that
meet the criteria set forth in rules or refer them to the full
Board. The Chairman may approve any unopposed application that
meets all of the review criteria or refer them to the full
Board.
Such rules shall not abridge the right of the Center for
Comprehensive Health Planning to make recommendations on the
classification and approval of projects, nor shall such rules
prevent the conduct of a public hearing upon the timely request
of an interested party. Such reviews shall not exceed 60 days
from the date the application is declared to be complete.
(9) Prescribe rules, regulations, standards, and criteria
pertaining to the granting of permits for construction and
modifications which are emergent in nature and must be
undertaken immediately to prevent or correct structural
deficiencies or hazardous conditions that may harm or injure

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persons using the facility, as defined in the rules and
regulations of the State Board. This procedure is exempt from
public hearing requirements of this Act.
(10) Prescribe rules, regulations, standards and criteria
for the conduct of an expeditious review, not exceeding 60
days, of applications for permits for projects to construct or
modify health care facilities which are needed for the care and
treatment of persons who have acquired immunodeficiency
syndrome (AIDS) or related conditions.
(10.5) Provide its rationale when voting on an item before
it at a State Board meeting in order to comply with subsection
(b) of Section 3-108 of the Code of Civil Procedure.
(11) Issue written decisions upon request of the applicant
or an adversely affected party to the Board. Requests for a
written decision shall be made within 15 days after the Board
meeting in which a final decision has been made. A "final
decision" for purposes of this Act is the decision to approve
or deny an application, or take other actions permitted under
this Act, at the time and date of the meeting that such action
is scheduled by the Board. State Board members shall provide
their rationale when voting on an item before the State Board
at a State Board meeting in order to comply with subsection (b)
of Section 3-108 of the Administrative Review Law of the Code
of Civil Procedure. The transcript of the State Board meeting
shall be incorporated into the Board's final decision. The
staff of the Board shall prepare a written copy of the final

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decision and the Board shall approve a final copy for inclusion
in the formal record. The Board shall consider, for approval,
the written draft of the final decision no later than the next
scheduled Board meeting. The written decision shall identify
the applicable criteria and factors listed in this Act and the
Board's regulations that were taken into consideration by the
Board when coming to a final decision. If the Board denies or
fails to approve an application for permit or exemption, the
Board shall include in the final decision a detailed
explanation as to why the application was denied and identify
what specific criteria or standards the applicant did not
fulfill.
(12) Require at least one of its members to participate in
any public hearing, after the appointment of a majority of the
members to the Board.
(13) Provide a mechanism for the public to comment on, and
request changes to, draft rules and standards.
(14) Implement public information campaigns to regularly
inform the general public about the opportunity for public
hearings and public hearing procedures.
(15) Establish a separate set of rules and guidelines for
long-term care that recognizes that nursing homes are a
different business line and service model from other regulated
facilities. An open and transparent process shall be developed
that considers the following: how skilled nursing fits in the
continuum of care with other care providers, modernization of

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nursing homes, establishment of more private rooms,
development of alternative services, and current trends in
long-term care services. The Chairman of the Board shall
appoint a permanent Health Services Review Board Long-term Care
Facility Advisory Subcommittee that shall develop and
recommend to the Board the rules to be established by the Board
under this paragraph (15). The Subcommittee shall also provide
continuous review and commentary on policies and procedures
relative to long-term care and the review of related projects.
In consultation with other experts from the health field of
long-term care, the Board and the Subcommittee shall study new
approaches to the current bed need formula and Health Service
Area boundaries to encourage flexibility and innovation in
design models reflective of the changing long-term care
marketplace and consumer preferences. The Subcommittee shall
evaluate, and make recommendations to the State Board
regarding, the buying, selling, and exchange of beds between
long-term care facilities within a specified geographic area or
drive time. The Board shall file the proposed related
administrative rules for the separate rules and guidelines for
long-term care required by this paragraph (15) by no later than
September 30, 2011. The Subcommittee shall be provided a
reasonable and timely opportunity to review and comment on any
review, revision, or updating of the criteria, standards,
procedures, and rules used to evaluate project applications as
provided under Section 12.3 of this Act.

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(16) Prescribe the format of and provide forms pertaining
to the State Board Staff Report. A State Board Staff Report
shall pertain to applications that include, but are not limited
to, applications for permit or exemption, applications for
permit renewal, applications for extension of the obligation
period, applications requesting a declaratory ruling, or
applications under the Health Care Worker Self-Referral Self
Referral Act. State Board Staff Reports shall compare
applications to the relevant review criteria under the Board's
rules.
(17) (16) Establish a separate set of rules and guidelines
for facilities licensed under the Specialized Mental Health
Rehabilitation Act of 2013. An application for the
re-establishment of a facility in connection with the
relocation of the facility shall not be granted unless the
applicant has a contractual relationship with at least one
hospital to provide emergency and inpatient mental health
services required by facility consumers, and at least one
community mental health agency to provide oversight and
assistance to facility consumers while living in the facility,
and appropriate services, including case management, to assist
them to prepare for discharge and reside stably in the
community thereafter. No new facilities licensed under the
Specialized Mental Health Rehabilitation Act of 2013 shall be
established after June 16, 2014 (the effective date of Public
Act 98-651) this amendatory Act of the 98th General Assembly

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except in connection with the relocation of an existing
facility to a new location. An application for a new location
shall not be approved unless there are adequate community
services accessible to the consumers within a reasonable
distance, or by use of public transportation, so as to
facilitate the goal of achieving maximum individual self-care
and independence. At no time shall the total number of
authorized beds under this Act in facilities licensed under the
Specialized Mental Health Rehabilitation Act of 2013 exceed the
number of authorized beds on June 16, 2014 (the effective date
of Public Act 98-651) this amendatory Act of the 98th General
Assembly.
(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,
eff. 7-13-12; 97-1045, eff. 8-21-13; 97-1115, eff. 8-27-12;
98-414, eff. 1-1-14; 98-463, eff. 8-16-13; 98-651, eff.
6-16-14; 98-1086, eff. 8-26-14; revised 10-1-14.)
(20 ILCS 3960/14.1)
Sec. 14.1. Denial of permit; other sanctions.
(a) The State Board may deny an application for a permit or
may revoke or take other action as permitted by this Act with
regard to a permit as the State Board deems appropriate,
including the imposition of fines as set forth in this Section,
for any one or a combination of the following:
(1) The acquisition of major medical equipment without
a permit or in violation of the terms of a permit.

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(2) The establishment, construction, or modification,
or change of ownership of a health care facility without a
permit or exemption or in violation of the terms of a
permit.
(3) The violation of any provision of this Act or any
rule adopted under this Act.
(4) The failure, by any person subject to this Act, to
provide information requested by the State Board or Agency
within 30 days after a formal written request for the
information.
(5) The failure to pay any fine imposed under this
Section within 30 days of its imposition.
(a-5) For facilities licensed under the ID/DD Community
Care Act, no permit shall be denied on the basis of prior
operator history, other than for actions specified under item
(2), (4), or (5) of Section 3-117 of the ID/DD Community Care
Act. For facilities licensed under the Specialized Mental
Health Rehabilitation Act, no permit shall be denied on the
basis of prior operator history, other than for actions
specified under item (2), (4), or (5) of Section 3-117 of the
Specialized Mental Health Rehabilitation Act. For facilities
licensed under the Nursing Home Care Act, no permit shall be
denied on the basis of prior operator history, other than for:
(i) actions specified under item (2), (3), (4), (5), or (6) of
Section 3-117 of the Nursing Home Care Act; (ii) actions
specified under item (a)(6) of Section 3-119 of the Nursing

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Home Care Act; or (iii) actions within the preceding 5 years
constituting a substantial and repeated failure to comply with
the Nursing Home Care Act or the rules and regulations adopted
by the Department under that Act. The State Board shall not
deny a permit on account of any action described in this
subsection (a-5) without also considering all such actions in
the light of all relevant information available to the State
Board, including whether the permit is sought to substantially
comply with a mandatory or voluntary plan of correction
associated with any action described in this subsection (a-5).
(b) Persons shall be subject to fines as follows:
(1) A permit holder who fails to comply with the
requirements of maintaining a valid permit shall be fined
an amount not to exceed 1% of the approved permit amount
plus an additional 1% of the approved permit amount for
each 30-day period, or fraction thereof, that the violation
continues.
(2) A permit holder who alters the scope of an approved
project or whose project costs exceed the allowable permit
amount without first obtaining approval from the State
Board shall be fined an amount not to exceed the sum of (i)
the lesser of $25,000 or 2% of the approved permit amount
and (ii) in those cases where the approved permit amount is
exceeded by more than $1,000,000, an additional $20,000 for
each $1,000,000, or fraction thereof, in excess of the
approved permit amount.

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(2.5) A permit holder who fails to comply with the
post-permit and reporting requirements set forth in
Section 5 shall be fined an amount not to exceed $10,000
plus an additional $10,000 for each 30-day period, or
fraction thereof, that the violation continues. This fine
shall continue to accrue until the date that (i) the
post-permit requirements are met and the post-permit
reports are received by the State Board or (ii) the matter
is referred by the State Board to the State Board's legal
counsel. The accrued fine is not waived by the permit
holder submitting the required information and reports.
Prior to any fine beginning to accrue, the Board shall
notify, in writing, a permit holder of the due date for the
post-permit and reporting requirements no later than 30
days before the due date for the requirements. This
paragraph (2.5) takes effect 6 months after August 27, 2012
(the effective date of Public Act 97-1115).
(3) A person who acquires major medical equipment or
who establishes a category of service without first
obtaining a permit or exemption, as the case may be, shall
be fined an amount not to exceed $10,000 for each such
acquisition or category of service established plus an
additional $10,000 for each 30-day period, or fraction
thereof, that the violation continues.
(4) A person who constructs, modifies, or establishes,
or changes ownership of a health care facility without

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first obtaining a permit or exemption shall be fined an
amount not to exceed $25,000 plus an additional $25,000 for
each 30-day period, or fraction thereof, that the violation
continues.
(5) A person who discontinues a health care facility or
a category of service without first obtaining a permit or
exemption shall be fined an amount not to exceed $10,000
plus an additional $10,000 for each 30-day period, or
fraction thereof, that the violation continues. For
purposes of this subparagraph (5), facilities licensed
under the Nursing Home Care Act or the ID/DD Community Care
Act, with the exceptions of facilities operated by a county
or Illinois Veterans Homes, are exempt from this permit
requirement. However, facilities licensed under the
Nursing Home Care Act or the ID/DD Community Care Act must
comply with Section 3-423 of the Nursing Home Care Act or
Section 3-423 of the ID/DD Community Care Act and must
provide the Board and the Department of Human Services with
30 days' written notice of its intent to close. Facilities
licensed under the ID/DD Community Care Act also must
provide the Board and the Department of Human Services with
30 days' written notice of its intent to reduce the number
of beds for a facility.
(6) A person subject to this Act who fails to provide
information requested by the State Board or Agency within
30 days of a formal written request shall be fined an

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amount not to exceed $1,000 plus an additional $1,000 for
each 30-day period, or fraction thereof, that the
information is not received by the State Board or Agency.
(b-5) The State Board may accept in-kind services instead
of or in combination with the imposition of a fine. This
authorization is limited to cases where the non-compliant
individual or entity has waived the right to an administrative
hearing or opportunity to appear before the Board regarding the
non-compliant matter.
(c) Before imposing any fine authorized under this Section,
the State Board shall afford the person or permit holder, as
the case may be, an appearance before the State Board and an
opportunity for a hearing before a hearing officer appointed by
the State Board. The hearing shall be conducted in accordance
with Section 10. Requests for an appearance before the State
Board must be made within 30 days after receiving notice that a
fine will be imposed.
(d) All fines collected under this Act shall be transmitted
to the State Treasurer, who shall deposit them into the
Illinois Health Facilities Planning Fund.
(e) Fines imposed under this Section shall continue to
accrue until: (i) the date that the matter is referred by the
State Board to the Board's legal counsel; or (ii) the date that
the health care facility becomes compliant with the Act,
whichever is earlier.
(Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,

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eff. 7-13-12; 97-980, eff. 8-17-12; 97-1115, eff. 8-27-12;
98-463, eff. 8-16-13.)