99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB3133

Introduced , by Rep. William Davis

SYNOPSIS AS INTRODUCED:

`20 ILCS 3960/6.2`
`20 ILCS 3960/12`	`from Ch. 111 1/2, par. 1162`
`20 ILCS 3960/14.1`

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.

LRB099 09158 JLK 29356 b

A BILL FOR

HB3133

LRB099 09158 JLK 29356 b

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 6.2, 12, and 14.1 as follows:

6 (20 ILCS 3960/6.2)

7 (Section scheduled to be repealed on December 31, 2019)

8 Sec. 6.2. Review of permits; State Board Staff Reports.

9 Upon receipt of an application for a permit to establish,

10 construct, or modify a health care facility, the State Board

11 staff shall notify the applicant in writing within 10 working

12 days either that the application is or is not complete. If the

13 application is complete, the State Board staff shall notify the

14 applicant of the beginning of the review process. If the

15 application is not complete, the Board staff shall explain

16 within the 10-day period why the application is incomplete.

17 The State Board staff shall afford a reasonable amount of

18 time as established by the State Board, but not to exceed 120

19 days, for the review of the application. The 120-day period

20 begins on the day the application is found to be substantially

21 complete, as that term is defined by the State Board. During

22 the 120-day period, the applicant may request an extension. An

23 applicant may modify the application at any time before a final

HB3133

- 2 -

LRB099 09158 JLK 29356 b

1 administrative decision has been made on the application.

2 ~~The State Board shall prescribe and provide the forms upon~~

3 ~~which the State Board Staff Report shall be made.~~ The State

4 Board staff shall submit its State Board Staff Report to the

5 State Board for its decision-making regarding approval or

6 denial of the permit.

7 When an application for a permit is initially reviewed by

8 State Board staff, as provided in this Section, the State Board

9 shall, upon request by the applicant or an interested person,

10 afford an opportunity for a public hearing within a reasonable

11 amount of time after receipt of the complete application, but

12 not to exceed 90 days after receipt of the complete

13 application. Notice of the hearing shall be made promptly, not

14 less than 10 days before the hearing, by certified mail to the

15 applicant and, not less than 10 days before the hearing, by

16 publication in a newspaper of general circulation in the area

17 or community to be affected. The hearing shall be held in the

18 area or community in which the proposed project is to be

19 located and shall be for the purpose of allowing the applicant

20 and any interested person to present public testimony

21 concerning the approval, denial, renewal, or revocation of the

22 permit. All interested persons attending the hearing shall be

23 given a reasonable opportunity to present their views or

24 arguments in writing or orally, and a record of all of the

25 testimony shall accompany any findings of the State Board

26 staff. The State Board shall adopt reasonable rules and

HB3133

- 3 -

LRB099 09158 JLK 29356 b

1 regulations governing the procedure and conduct of the

2 hearings.

3 (Source: P.A. 97-1115, eff. 8-27-12; 98-1086, eff. 8-26-14.)

4 (20 ILCS 3960/12) (from Ch. 111 1/2, par. 1162)

5 (Section scheduled to be repealed on December 31, 2019)

6 Sec. 12. Powers and duties of State Board. For purposes of

7 this Act, the State Board shall exercise the following powers

8 and duties:

9 (1) Prescribe rules, regulations, standards, criteria,

10 procedures or reviews which may vary according to the purpose

11 for which a particular review is being conducted or the type of

12 project reviewed and which are required to carry out the

13 provisions and purposes of this Act. Policies and procedures of

14 the State Board shall take into consideration the priorities

15 and needs of medically underserved areas and other health care

16 services identified through the comprehensive health planning

17 process, giving special consideration to the impact of projects

18 on access to safety net services.

19 (2) Adopt procedures for public notice and hearing on all

20 proposed rules, regulations, standards, criteria, and plans

21 required to carry out the provisions of this Act.

22 (3) (Blank).

23 (4) Develop criteria and standards for health care

24 facilities planning, conduct statewide inventories of health

25 care facilities, maintain an updated inventory on the Board's

HB3133

- 4 -

LRB099 09158 JLK 29356 b

1 web site reflecting the most recent bed and service changes and

2 updated need determinations when new census data become

3 available or new need formulae are adopted, and develop health

4 care facility plans which shall be utilized in the review of

5 applications for permit under this Act. Such health facility

6 plans shall be coordinated by the Board with pertinent State

7 Plans. Inventories pursuant to this Section of skilled or

8 intermediate care facilities licensed under the Nursing Home

9 Care Act, skilled or intermediate care facilities licensed

10 under the ID/DD Community Care Act, facilities licensed under

11 the Specialized Mental Health Rehabilitation Act, or nursing

12 homes licensed under the Hospital Licensing Act shall be

13 conducted on an annual basis no later than July 1 of each year

14 and shall include among the information requested a list of all

15 services provided by a facility to its residents and to the

16 community at large and differentiate between active and

17 inactive beds.

18 In developing health care facility plans, the State Board

19 shall consider, but shall not be limited to, the following:

20 (a) The size, composition and growth of the population

21 of the area to be served;

22 (b) The number of existing and planned facilities

23 offering similar programs;

24 (c) The extent of utilization of existing facilities;

25 (d) The availability of facilities which may serve as

26 alternatives or substitutes;

HB3133

- 5 -

LRB099 09158 JLK 29356 b

1 (e) The availability of personnel necessary to the

2 operation of the facility;

3 (f) Multi-institutional planning and the establishment

4 of multi-institutional systems where feasible;

5 (g) The financial and economic feasibility of proposed

6 construction or modification; and

7 (h) In the case of health care facilities established

8 by a religious body or denomination, the needs of the

9 members of such religious body or denomination may be

10 considered to be public need.

11 The health care facility plans which are developed and

12 adopted in accordance with this Section shall form the basis

13 for the plan of the State to deal most effectively with

14 statewide health needs in regard to health care facilities.

15 (5) Coordinate with the Center for Comprehensive Health

16 Planning and other state agencies having responsibilities

17 affecting health care facilities, including those of licensure

18 and cost reporting. Beginning no later than January 1, 2013,

19 the Department of Public Health shall produce a written annual

20 report to the Governor and the General Assembly regarding the

21 development of the Center for Comprehensive Health Planning.

22 The Chairman of the State Board and the State Board

23 Administrator shall also receive a copy of the annual report.

24 (6) Solicit, accept, hold and administer on behalf of the

25 State any grants or bequests of money, securities or property

26 for use by the State Board or Center for Comprehensive Health

HB3133

- 6 -

LRB099 09158 JLK 29356 b

1 Planning in the administration of this Act; and enter into

2 contracts consistent with the appropriations for purposes

3 enumerated in this Act.

4 (7) The State Board shall prescribe procedures for review,

5 standards, and criteria which shall be utilized to make

6 periodic reviews and determinations of the appropriateness of

7 any existing health services being rendered by health care

8 facilities subject to the Act. The State Board shall consider

9 recommendations of the Board in making its determinations.

10 (8) Prescribe, in consultation with the Center for

11 Comprehensive Health Planning, rules, regulations, standards,

12 and criteria for the conduct of an expeditious review of

13 applications for permits for projects of construction or

14 modification of a health care facility, which projects are

15 classified as emergency, substantive, or non-substantive in

16 nature.

17 Six months after June 30, 2009 (the effective date of

18 Public Act 96-31), substantive projects shall include no more

19 than the following:

20 (a) Projects to construct (1) a new or replacement

21 facility located on a new site or (2) a replacement

22 facility located on the same site as the original facility

23 and the cost of the replacement facility exceeds the

24 capital expenditure minimum, which shall be reviewed by the

25 Board within 120 days;

26 (b) Projects proposing a (1) new service within an

HB3133

- 7 -

LRB099 09158 JLK 29356 b

1 existing healthcare facility or (2) discontinuation of a

2 service within an existing healthcare facility, which

3 shall be reviewed by the Board within 60 days; or

4 (c) Projects proposing a change in the bed capacity of

5 a health care facility by an increase in the total number

6 of beds or by a redistribution of beds among various

7 categories of service or by a relocation of beds from one

8 physical facility or site to another by more than 20 beds

9 or more than 10% of total bed capacity, as defined by the

10 State Board, whichever is less, over a 2-year period.

11 The Chairman may approve applications for exemption that

12 meet the criteria set forth in rules or refer them to the full

13 Board. The Chairman may approve any unopposed application that

14 meets all of the review criteria or refer them to the full

15 Board.

16 Such rules shall not abridge the right of the Center for

17 Comprehensive Health Planning to make recommendations on the

18 classification and approval of projects, nor shall such rules

19 prevent the conduct of a public hearing upon the timely request

20 of an interested party. Such reviews shall not exceed 60 days

21 from the date the application is declared to be complete.

22 (9) Prescribe rules, regulations, standards, and criteria

23 pertaining to the granting of permits for construction and

24 modifications which are emergent in nature and must be

25 undertaken immediately to prevent or correct structural

26 deficiencies or hazardous conditions that may harm or injure

HB3133

- 8 -

LRB099 09158 JLK 29356 b

1 persons using the facility, as defined in the rules and

2 regulations of the State Board. This procedure is exempt from

3 public hearing requirements of this Act.

4 (10) Prescribe rules, regulations, standards and criteria

5 for the conduct of an expeditious review, not exceeding 60

6 days, of applications for permits for projects to construct or

7 modify health care facilities which are needed for the care and

8 treatment of persons who have acquired immunodeficiency

9 syndrome (AIDS) or related conditions.

10 (10.5) Provide its rationale when voting on an item before

11 it at a State Board meeting in order to comply with subsection

12 (b) of Section 3-108 of the Code of Civil Procedure. The

13 transcript of the meeting shall be incorporated into the

14 Board's final decision.

15 (11) Issue written decisions upon request of the applicant

16 or an adversely affected party to the Board. Requests for a

17 written decision shall be made within 15 days after the Board

18 meeting in which a final decision has been made. A "final

19 decision" for purposes of this Act is the decision to approve

20 or deny an application, or take other actions permitted under

21 this Act, at the time and date of the meeting that such action

22 is scheduled by the Board. State Board members shall provide

23 their rationale when voting on an item before the State Board

24 at a State Board meeting in order to comply with subsection (b)

25 of Section 3-108 of the Administrative Review Law of the Code

26 of Civil Procedure. The transcript of the State Board meeting

HB3133

- 9 -

LRB099 09158 JLK 29356 b

1 shall be incorporated into the Board's final decision. The

2 staff of the Board shall prepare a written copy of the final

3 decision and the Board shall approve a final copy for inclusion

4 in the formal record. The Board shall consider, for approval,

5 the written draft of the final decision no later than the next

6 scheduled Board meeting. The written decision shall identify

7 the applicable criteria and factors listed in this Act and the

8 Board's regulations that were taken into consideration by the

9 Board when coming to a final decision. If the Board denies or

10 fails to approve an application for permit or exemption, the

11 Board shall include in the final decision a detailed

12 explanation as to why the application was denied and identify

13 what specific criteria or standards the applicant did not

14 fulfill.

15 (12) Require at least one of its members to participate in

16 any public hearing, after the appointment of a majority of the

17 members to the Board.

18 (13) Provide a mechanism for the public to comment on, and

19 request changes to, draft rules and standards.

20 (14) Implement public information campaigns to regularly

21 inform the general public about the opportunity for public

22 hearings and public hearing procedures.

23 (15) Establish a separate set of rules and guidelines for

24 long-term care that recognizes that nursing homes are a

25 different business line and service model from other regulated

26 facilities. An open and transparent process shall be developed

HB3133

- 10 -

LRB099 09158 JLK 29356 b

1 that considers the following: how skilled nursing fits in the

2 continuum of care with other care providers, modernization of

3 nursing homes, establishment of more private rooms,

4 development of alternative services, and current trends in

5 long-term care services. The Chairman of the Board shall

6 appoint a permanent Health Services Review Board Long-term Care

7 Facility Advisory Subcommittee that shall develop and

8 recommend to the Board the rules to be established by the Board

9 under this paragraph (15). The Subcommittee shall also provide

10 continuous review and commentary on policies and procedures

11 relative to long-term care and the review of related projects.

12 In consultation with other experts from the health field of

13 long-term care, the Board and the Subcommittee shall study new

14 approaches to the current bed need formula and Health Service

15 Area boundaries to encourage flexibility and innovation in

16 design models reflective of the changing long-term care

17 marketplace and consumer preferences. The Subcommittee shall

18 evaluate, and make recommendations to the State Board

19 regarding, the buying, selling, and exchange of beds between

20 long-term care facilities within a specified geographic area or

21 drive time. The Board shall file the proposed related

22 administrative rules for the separate rules and guidelines for

23 long-term care required by this paragraph (15) by no later than

24 September 30, 2011. The Subcommittee shall be provided a

25 reasonable and timely opportunity to review and comment on any

26 review, revision, or updating of the criteria, standards,

HB3133

- 11 -

LRB099 09158 JLK 29356 b

1 procedures, and rules used to evaluate project applications as

2 provided under Section 12.3 of this Act.

3 (16) Prescribe the format of ~~and provide forms pertaining~~

4 ~~to~~ the State Board Staff Report. A State Board Staff Report

5 shall pertain to applications that include, but are not limited

6 to, applications for permit or exemption, applications for

7 permit renewal, applications for extension of the obligation

8 period, applications requesting a declaratory ruling, or

9 applications under the Health Care Worker Self-Referral ~~Self~~

10 ~~Referral~~ Act. State Board Staff Reports shall compare

11 applications to the relevant review criteria under the Board's

12 rules.

13 (17) ~~(16)~~ Establish a separate set of rules and guidelines

14 for facilities licensed under the Specialized Mental Health

15 Rehabilitation Act of 2013. An application for the

16 re-establishment of a facility in connection with the

17 relocation of the facility shall not be granted unless the

18 applicant has a contractual relationship with at least one

19 hospital to provide emergency and inpatient mental health

20 services required by facility consumers, and at least one

21 community mental health agency to provide oversight and

22 assistance to facility consumers while living in the facility,

23 and appropriate services, including case management, to assist

24 them to prepare for discharge and reside stably in the

25 community thereafter. No new facilities licensed under the

26 Specialized Mental Health Rehabilitation Act of 2013 shall be

HB3133

- 12 -

LRB099 09158 JLK 29356 b

1 established after June 16, 2014 (the effective date of Public

2 Act 98-651) ~~this amendatory Act of the 98th General Assembly~~

3 except in connection with the relocation of an existing

4 facility to a new location. An application for a new location

5 shall not be approved unless there are adequate community

6 services accessible to the consumers within a reasonable

7 distance, or by use of public transportation, so as to

8 facilitate the goal of achieving maximum individual self-care

9 and independence. At no time shall the total number of

10 authorized beds under this Act in facilities licensed under the

11 Specialized Mental Health Rehabilitation Act of 2013 exceed the

12 number of authorized beds on June 16, 2014 (the effective date

13 of Public Act 98-651) ~~this amendatory Act of the 98th General~~

14 ~~Assembly~~.

15 (Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,

16 eff. 7-13-12; 97-1045, eff. 8-21-13; 97-1115, eff. 8-27-12;

17 98-414, eff. 1-1-14; 98-463, eff. 8-16-13; 98-651, eff.

18 6-16-14; 98-1086, eff. 8-26-14; revised 10-1-14.)

19 (20 ILCS 3960/14.1)

20 Sec. 14.1. Denial of permit; other sanctions.

21 (a) The State Board may deny an application for a permit or

22 may revoke or take other action as permitted by this Act with

23 regard to a permit as the State Board deems appropriate,

24 including the imposition of fines as set forth in this Section,

25 for any one or a combination of the following:

HB3133

- 13 -

LRB099 09158 JLK 29356 b

1 (1) The acquisition of major medical equipment without

2 a permit or in violation of the terms of a permit.

3 (2) The establishment, construction, or modification

4 of a health care facility without a permit or in violation

5 of the terms of a permit.

6 (3) The violation of any provision of this Act or any

7 rule adopted under this Act.

8 (4) The failure, by any person subject to this Act, to

9 provide information requested by the State Board or Agency

10 within 30 days after a formal written request for the

11 information.

12 (5) The failure to pay any fine imposed under this

13 Section within 30 days of its imposition.

14 (a-5) For facilities licensed under the ID/DD Community

15 Care Act, no permit shall be denied on the basis of prior

16 operator history, other than for actions specified under item

17 (2), (4), or (5) of Section 3-117 of the ID/DD Community Care

18 Act. For facilities licensed under the Specialized Mental

19 Health Rehabilitation Act, no permit shall be denied on the

20 basis of prior operator history, other than for actions

21 specified under item (2), (4), or (5) of Section 3-117 of the

22 Specialized Mental Health Rehabilitation Act. For facilities

23 licensed under the Nursing Home Care Act, no permit shall be

24 denied on the basis of prior operator history, other than for:

25 (i) actions specified under item (2), (3), (4), (5), or (6) of

26 Section 3-117 of the Nursing Home Care Act; (ii) actions

HB3133

- 14 -

LRB099 09158 JLK 29356 b

1 specified under item (a)(6) of Section 3-119 of the Nursing

2 Home Care Act; or (iii) actions within the preceding 5 years

3 constituting a substantial and repeated failure to comply with

4 the Nursing Home Care Act or the rules and regulations adopted

5 by the Department under that Act. The State Board shall not

6 deny a permit on account of any action described in this

7 subsection (a-5) without also considering all such actions in

8 the light of all relevant information available to the State

9 Board, including whether the permit is sought to substantially

10 comply with a mandatory or voluntary plan of correction

11 associated with any action described in this subsection (a-5).

12 (b) Persons shall be subject to fines as follows:

13 (1) A permit holder who fails to comply with the

14 requirements of maintaining a valid permit shall be fined

15 an amount not to exceed 1% of the approved permit amount

16 plus an additional 1% of the approved permit amount for

17 each 30-day period, or fraction thereof, that the violation

18 continues.

19 (2) A permit holder who alters the scope of an approved

20 project or whose project costs exceed the allowable permit

21 amount without first obtaining approval from the State

22 Board shall be fined an amount not to exceed the sum of (i)

23 the lesser of $25,000 or 2% of the approved permit amount

24 and (ii) in those cases where the approved permit amount is

25 exceeded by more than $1,000,000, an additional $20,000 for

26 each $1,000,000, or fraction thereof, in excess of the

HB3133

- 15 -

LRB099 09158 JLK 29356 b

1 approved permit amount.

2 (2.5) A permit holder who fails to comply with the

3 post-permit and reporting requirements set forth in

4 Section 5 shall be fined an amount not to exceed $10,000

5 plus an additional $10,000 for each 30-day period, or

6 fraction thereof, that the violation continues. This fine

7 shall continue to accrue until the date that (i) the

8 post-permit requirements are met and the post-permit

9 reports are received by the State Board or (ii) the matter

10 is referred by the State Board to the State Board's legal

11 counsel. The accrued fine is not waived by the permit

12 holder submitting the required information and reports.

13 Prior to any fine beginning to accrue, the Board shall

14 notify, in writing, a permit holder of the due date for the

15 post-permit and reporting requirements no later than 30

16 days before the due date for the requirements. This

17 paragraph (2.5) takes effect 6 months after August 27, 2012

18 (the effective date of Public Act 97-1115).

19 (3) A person who acquires major medical equipment or

20 who establishes a category of service without first

21 obtaining a permit or exemption, as the case may be, shall

22 be fined an amount not to exceed $10,000 for each such

23 acquisition or category of service established plus an

24 additional $10,000 for each 30-day period, or fraction

25 thereof, that the violation continues.

26 (4) A person who constructs, modifies, or establishes a

HB3133

- 16 -

LRB099 09158 JLK 29356 b

1 health care facility without first obtaining a permit shall

2 be fined an amount not to exceed $25,000 plus an additional

3 $25,000 for each 30-day period, or fraction thereof, that

4 the violation continues.

5 (5) A person who discontinues a health care facility or

6 a category of service without first obtaining a permit

7 shall be fined an amount not to exceed $10,000 plus an

8 additional $10,000 for each 30-day period, or fraction

9 thereof, that the violation continues. For purposes of this

10 subparagraph (5), facilities licensed under the Nursing

11 Home Care Act or the ID/DD Community Care Act, with the

12 exceptions of facilities operated by a county or Illinois

13 Veterans Homes, are exempt from this permit requirement.

14 However, facilities licensed under the Nursing Home Care

15 Act or the ID/DD Community Care Act must comply with

16 Section 3-423 of the Nursing Home Care Act or Section 3-423

17 of the ID/DD Community Care Act and must provide the Board

18 and the Department of Human Services with 30 days' written

19 notice of its intent to close. Facilities licensed under

20 the ID/DD Community Care Act also must provide the Board

21 and the Department of Human Services with 30 days' written

22 notice of its intent to reduce the number of beds for a

23 facility.

24 (6) A person subject to this Act who fails to provide

25 information requested by the State Board or Agency within

26 30 days of a formal written request shall be fined an

HB3133

- 17 -

LRB099 09158 JLK 29356 b

1 amount not to exceed $1,000 plus an additional $1,000 for

2 each 30-day period, or fraction thereof, that the

3 information is not received by the State Board or Agency.

4 (b-5) The State Board may require in-kind services instead

5 of or in combination with the imposition of a fine. This

6 authorization is limited to cases where the non-compliant

7 individual or entity has waived the right to an administrative

8 hearing or opportunity to appear before the Board regarding the

9 non-compliant matter.

10 (c) Before imposing any fine authorized under this Section,

11 the State Board shall afford the person or permit holder, as

12 the case may be, an appearance before the State Board and an

13 opportunity for a hearing before a hearing officer appointed by

14 the State Board. The hearing shall be conducted in accordance

15 with Section 10.

16 (d) All fines collected under this Act shall be transmitted

17 to the State Treasurer, who shall deposit them into the

18 Illinois Health Facilities Planning Fund.

19 (e) Fines imposed under this Section shall continue to

20 accrue until the date that the matter is referred by the State

21 Board to the State Board's legal counsel.

22 (Source: P.A. 97-38, eff. 6-28-11; 97-227, eff. 1-1-12; 97-813,

23 eff. 7-13-12; 97-980, eff. 8-17-12; 97-1115, eff. 8-27-12;

24 98-463, eff. 8-16-13.)

25 Section 99. Effective date. This Act takes effect upon

26 becoming law.