Bill Text: IL HB3813 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Health Facilities Planning Act. Restores the provisions that were amended by Public Act 101-83 to the form in which they existed before their amendment by Public Act 101-83. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB3813 Detail]

Download: Illinois-2023-HB3813-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3813 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED:
20 ILCS 3960/6 from Ch. 111 1/2, par. 1156
20 ILCS 3960/8.5
20 ILCS 3960/12 from Ch. 111 1/2, par. 1162
20 ILCS 3960/12.2
20 ILCS 3960/8.7 rep.
Amends the Illinois Health Facilities Planning Act. Restores the provisions that were amended by Public Act 101-83 to the form in which they existed before their amendment by Public Act 101-83. Effective immediately.
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A BILL FOR
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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, 8.5, 12, and 12.2 as follows:
(20 ILCS 3960/6) (from Ch. 111 1/2, par. 1156)
(Section scheduled to be repealed on December 31, 2029)
Sec. 6. Application for permit or exemption; exemption
regulations.
(a) An application for a permit or exemption shall be made
to the State Board upon forms provided by the State Board. This
application shall contain such information as the State Board
deems necessary. The State Board shall not require an
applicant to file a Letter of Intent before an application is
filed. Such application shall include affirmative evidence on
which the State Board or Chairman may make its decision on the
approval or denial of the permit or exemption.
(b) The State Board shall establish by regulation the
procedures and requirements regarding issuance of exemptions.
An exemption shall be approved when information required by
the Board by rule is submitted. Projects eligible for an
exemption, rather than a permit, include, but are not limited
to, change of ownership of a health care facility,

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discontinuation of a category of service, and discontinuation
of a health care facility and discontinuation of a category of
service, other than a health care facility maintained by the
State or any agency or department thereof or a nursing home
maintained by a county. The Board may accept an application
for an exemption for the discontinuation of a category of
service at a health care facility only once in a 6-month period
following (1) the previous application for exemption at the
same health care facility or (2) the final decision of the
Board regarding the discontinuation of a category of service
at the same health care facility, whichever occurs later. A
discontinuation of a category of service shall otherwise
require an application for a permit if an application for an
exemption has already been accepted within the 6-month period.
For a change of ownership among related persons of a health
care facility, the State Board shall provide by rule for an
expedited process for obtaining an exemption in accordance
with Section 8.5 of this Act. For the purposes of this Section,
"change of ownership among related persons" means a
transaction in which the parties to the transaction are under
common control or ownership before and after the transaction
is complete.
(c) All applications shall be signed by the applicant and
shall be verified by any 2 officers thereof.
(c-5) Any written review or findings of the Board staff
set forth in the State Board Staff Report concerning an

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application for a permit must be made available to the public
and the applicant at least 14 calendar days before the meeting
of the State Board at which the review or findings are
considered. The applicant and members of the public may
submit, to the State Board, written responses regarding the
facts set forth in the review or findings of the Board staff.
Members of the public and the applicant shall have until 10
days before the meeting of the State Board to submit any
written response concerning the Board staff's written review
or findings. The Board staff may revise any findings to
address corrections of factual errors cited in the public
response. At the meeting, the State Board may, in its
discretion, permit the submission of other additional written
materials.
(d) Upon receipt of an application for a permit, the State
Board shall approve and authorize the issuance of a permit if
it finds (1) that the applicant is fit, willing, and able to
provide a proper standard of health care service for the
community with particular regard to the qualification,
background and character of the applicant, (2) that economic
feasibility is demonstrated in terms of effect on the existing
and projected operating budget of the applicant and of the
health care facility; in terms of the applicant's ability to
establish and operate such facility in accordance with
licensure regulations promulgated under pertinent state laws;
and in terms of the projected impact on the total health care

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expenditures in the facility and community, (3) that
safeguards are provided that assure that the establishment,
construction or modification of the health care facility or
acquisition of major medical equipment is consistent with the
public interest, and (4) that the proposed project is
consistent with the orderly and economic development of such
facilities and equipment and is in accord with standards,
criteria, or plans of need adopted and approved pursuant to
the provisions of Section 12 of this Act.
(Source: P.A. 100-518, eff. 6-1-18; 100-681, eff. 8-3-18;
101-83, eff. 7-15-19.)
(20 ILCS 3960/8.5)
(Section scheduled to be repealed on December 31, 2029)
Sec. 8.5. Certificate of exemption for change of ownership
of a health care facility; discontinuation of a health care
facility or category of service; public notice and public
hearing.
(a) Upon a finding that an application for a change of
ownership is complete, the State Board shall publish a legal
notice on 3 consecutive days one day in a newspaper of general
circulation in the area or community to be affected and afford
the public an opportunity to request a hearing. If the
application is for a facility located in a Metropolitan
Statistical Area, an additional legal notice shall be
published in a newspaper of limited circulation, if one

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exists, in the area in which the facility is located. If the
newspaper of limited circulation is published on a daily
basis, the additional legal notice shall be published on 3
consecutive days one day. The applicant shall pay the cost
incurred by the Board in publishing the change of ownership
notice in newspapers as required under this subsection. The
legal notice shall also be posted on the Health Facilities and
Services Review Board's web site and sent to the State
Representative and State Senator of the district in which the
health care facility is located. An application for change of
ownership of a hospital shall not be deemed complete without a
signed certification that for a period of 2 years after the
change of ownership transaction is effective, the hospital
will not adopt a charity care policy that is more restrictive
than the policy in effect during the year prior to the
transaction. An application for a change of ownership need not
contain signed transaction documents so long as it includes
the following key terms of the transaction: names and
background of the parties; structure of the transaction; the
person who will be the licensed or certified entity after the
transaction; the ownership or membership interests in such
licensed or certified entity both prior to and after the
transaction; fair market value of assets to be transferred;
and the purchase price or other form of consideration to be
provided for those assets. The issuance of the certificate of
exemption shall be contingent upon the applicant submitting a

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statement to the Board within 90 days after the closing date of
the transaction, or such longer period as provided by the
Board, certifying that the change of ownership has been
completed in accordance with the key terms contained in the
application. If such key terms of the transaction change, a
new application shall be required.
Where a change of ownership is among related persons, and
there are no other changes being proposed at the health care
facility that would otherwise require a permit or exemption
under this Act, the applicant shall submit an application
consisting of a standard notice in a form set forth by the
Board briefly explaining the reasons for the proposed change
of ownership. Once such an application is submitted to the
Board and reviewed by the Board staff, the Board Chair shall
take action on an application for an exemption for a change of
ownership among related persons within 45 days after the
application has been deemed complete, provided the application
meets the applicable standards under this Section. If the
Board Chair has a conflict of interest or for other good cause,
the Chair may request review by the Board. Notwithstanding any
other provision of this Act, for purposes of this Section, a
change of ownership among related persons means a transaction
where the parties to the transaction are under common control
or ownership before and after the transaction is completed.
Nothing in this Act shall be construed as authorizing the
Board to impose any conditions, obligations, or limitations,

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other than those required by this Section, with respect to the
issuance of an exemption for a change of ownership, including,
but not limited to, the time period before which a subsequent
change of ownership of the health care facility could be
sought, or the commitment to continue to offer for a specified
time period any services currently offered by the health care
facility.
(a-3) (Blank). Upon a finding that an application to close
a health care facility is complete, the State Board shall
publish a legal notice on 3 consecutive days in a newspaper of
general circulation in the area or community to be affected
and afford the public an opportunity to request a hearing. If
the application is for a facility located in a Metropolitan
Statistical Area, an additional legal notice shall be
published in a newspaper of limited circulation, if one
exists, in the area in which the facility is located. If the
newspaper of limited circulation is published on a daily
basis, the additional legal notice shall be published on 3
consecutive days. The legal notice shall also be posted on the
Health Facilities and Services Review Board's web site and
sent to the State Representative and State Senator of the
district in which the health care facility is located. In
addition, the health care facility shall provide notice of
closure to the local media that the health care facility would
routinely notify about facility events. No later than 90 days
after a discontinuation of a health facility, the applicant

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must submit a statement to the State Board certifying that the
discontinuation is complete.
(a-5) Upon a finding that an application to discontinue a
category of service is complete and provides the requested
information, as specified by the State Board, an exemption
shall be issued. No later than 30 days after the issuance of
the exemption, the health care facility must give written
notice of the discontinuation of the category of service to
the State Senator and State Representative serving the
legislative district in which the health care facility is
located. No later than 90 days after a discontinuation of a
category of service, the applicant must submit a statement to
the State Board certifying that the discontinuation is
complete.
(b) If a public hearing is requested, it shall be held at
least 15 days but no more than 30 days after the date of
publication of the legal notice in the community in which the
facility is located. The hearing shall be held in the affected
area or community in a place of reasonable size and
accessibility and a full and complete written transcript of
the proceedings shall be made. All interested persons
attending the hearing shall be given a reasonable opportunity
to present their positions in writing or orally. The applicant
shall provide a summary or describe the proposed change of
ownership of the proposal for distribution at the public
hearing.

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(c) For the purposes of this Section "newspaper of limited
circulation" means a newspaper intended to serve a particular
or defined population of a specific geographic area within a
Metropolitan Statistical Area such as a municipality, town,
village, township, or community area, but does not include
publications of professional and trade associations.
(d) The changes made to this Section by this amendatory
Act of the 101st General Assembly shall apply to all
applications submitted after the effective date of this
amendatory Act of the 101st General Assembly.
(Source: P.A. 100-201, eff. 8-18-17; 101-83, eff. 7-15-19.)
(20 ILCS 3960/12) (from Ch. 111 1/2, par. 1162)
(Section scheduled to be repealed on December 31, 2029)
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, giving special consideration to the
impact of projects on access to safety net services.

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(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
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, skilled or intermediate
care facilities licensed under the MC/DD Act, facilities
licensed under the Specialized Mental Health Rehabilitation
Act of 2013, 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

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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;
(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 other state agencies having
responsibilities affecting health care facilities, including
those of licensure and cost reporting.
(6) Solicit, accept, hold and administer on behalf of the

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State any grants or bequests of money, securities or property
for use by the State Board in the administration of this Act;
and enter into contracts consistent with the appropriations
for purposes enumerated in this Act.
(7) (Blank).
(8) Prescribe 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.
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
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

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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 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
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.

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(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. 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 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) (Blank).

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(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
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.
The Subcommittee shall make recommendations to the Board no
later than January 1, 2016 and every January thereafter
pursuant to the Subcommittee's responsibility for the
continuous review and commentary on policies and procedures
relative to long-term care. In consultation with other experts
from the health field of long-term care, the Board and the

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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
and submit its recommendations to the Chairman of the Board no
later than January 1, 2017. 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.
The Chairman of the Board shall appoint voting members of
the Subcommittee, who shall serve for a period of 3 years, with
one-third of the terms expiring each January, to be determined
by lot. Appointees shall include, but not be limited to,
recommendations from each of the 3 statewide long-term care
associations, with an equal number to be appointed from each.
Compliance with this provision shall be through the
appointment and reappointment process. All appointees serving
as of April 1, 2015 shall serve to the end of their term as

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determined by lot or until the appointee voluntarily resigns,
whichever is earlier.
One representative from the Department of Public Health,
the Department of Healthcare and Family Services, the
Department on Aging, and the Department of Human Services may
each serve as an ex-officio non-voting member of the
Subcommittee. The Chairman of the Board shall select a
Subcommittee Chair, who shall serve for a period of 3 years.
(16) Prescribe the format of 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 financial commitment period, applications
requesting a declaratory ruling, or applications under the
Health Care Worker Self-Referral Act. State Board Staff
Reports shall compare applications to the relevant review
criteria under the Board's rules.
(17) 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

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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) 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).
(18) Elect a Vice Chairman to preside over State Board
meetings and otherwise act in place of the Chairman when the
Chairman is unavailable.
(Source: P.A. 100-518, eff. 6-1-18; 100-681, eff. 8-3-18;
101-83, eff. 7-15-19.)
(20 ILCS 3960/12.2)
(Section scheduled to be repealed on December 31, 2029)
Sec. 12.2. Powers of the State Board staff. For purposes

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of this Act, the staff shall exercise the following powers and
duties:
(1) Review applications for permits and exemptions in
accordance with the standards, criteria, and plans of need
established by the State Board under this Act and certify
its finding to the State Board.
(1.5) Post the following on the Board's web site:
relevant (i) rules, (ii) standards, (iii) criteria, (iv)
State norms, (v) references used by Board staff in making
determinations about whether application criteria are met,
and (vi) notices of project-related filings, including
notice of public comments related to the application.
(2) Charge and collect an amount determined by the
State Board and the staff to be reasonable fees for the
processing of applications by the State Board. The State
Board shall set the amounts by rule. Application fees for
continuing care retirement communities, and other health
care models that include regulated and unregulated
components, shall apply only to those components subject
to regulation under this Act. All fees and fines collected
under the provisions of this Act shall be deposited into
the Illinois Health Facilities Planning Fund to be used
for the expenses of administering this Act.
(2.1) Publish the following reports on the State Board
website:
(A) An annual accounting, aggregated by category

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and with names of parties redacted, of fees, fines,
and other revenue collected as well as expenses
incurred, in the administration of this Act.
(B) An annual report, with names of the parties
redacted, that summarizes all settlement agreements
entered into with the State Board that resolve an
alleged instance of noncompliance with State Board
requirements under this Act.
(C) (Blank).
(D) Board reports showing the degree to which an
application conforms to the review standards, a
summation of relevant public testimony, and any
additional information that staff wants to
communicate.
(3) Coordinate with other State agencies having
responsibilities affecting health care facilities,
including licensure and cost reporting agencies.
(4) Issue advisory opinions upon request. Staff
advisory opinions do not constitute determinations by the
State Board. Determinations by the State Board are made
through the declaratory ruling process.
(Source: P.A. 100-681, eff. 8-3-18; 101-83, eff. 7-15-19.)
(20 ILCS 3960/8.7 rep.)
Section 10. The Illinois Health Facilities Planning Act is
amended by repealing Section 8.7.

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