State of Illinois
Public Acts
91st General Assembly
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.


Address of this page: http://www.state.il.us/auditor/PA 91-0782.htm
Last modified: August 9, 2000 tb