Full Text of SB0998 94th General Assembly
SB0998eng 94TH GENERAL ASSEMBLY
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| AN ACT concerning health.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Health Facilities Planning Act is | 5 |
| amended by changing Sections 3, 5, and 19.6 as follows:
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| (20 ILCS 3960/3) (from Ch. 111 1/2, par. 1153)
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| (Section scheduled to be repealed on July 1, 2006)
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| Sec. 3. Definitions. As used in this Act:
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| "Health care facilities" means and includes
the following | 10 |
| facilities and organizations:
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| 1. An ambulatory surgical treatment center required to | 12 |
| be licensed
pursuant to the Ambulatory Surgical Treatment | 13 |
| Center Act;
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| 2. An institution, place, building, or agency required | 15 |
| to be licensed
pursuant to the Hospital Licensing Act;
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| 3. Skilled and intermediate long term care facilities | 17 |
| licensed under the
Nursing
Home Care Act;
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| 3. Skilled and intermediate long term care facilities | 19 |
| licensed under the
Nursing
Home Care Act;
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| 4. Hospitals, nursing homes, ambulatory surgical | 21 |
| treatment centers, or
kidney disease treatment centers
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| maintained by the State or any department or agency | 23 |
| thereof;
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| 5. Kidney disease treatment centers, including a | 25 |
| free-standing
hemodialysis unit required to be licensed | 26 |
| under the End Stage Renal Disease Facility Act; and
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| 6. An institution, place, building, or room used for | 28 |
| the performance of
outpatient surgical procedures that is | 29 |
| leased, owned, or operated by or on
behalf of an | 30 |
| out-of-state facility.
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| No federally owned facility shall be subject to the | 32 |
| provisions of this
Act, nor facilities used solely for healing |
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| by prayer or spiritual means.
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| No facility licensed under the Supportive Residences | 3 |
| Licensing Act or the
Assisted Living and Shared Housing Act
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| shall be subject to the provisions of this Act.
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| A facility designated as a supportive living facility that | 6 |
| is in good
standing with the demonstration project established | 7 |
| under Section 5-5.01a of
the Illinois Public Aid Code shall not | 8 |
| be subject to the provisions of this
Act.
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| This Act does not apply to facilities granted waivers under | 10 |
| Section 3-102.2
of the Nursing Home Care Act. However, if a | 11 |
| demonstration project under that
Act applies for a certificate
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| of need to convert to a nursing facility, it shall meet the | 13 |
| licensure and
certificate of need requirements in effect as of | 14 |
| the date of application. | 15 |
| This Act does not apply to a dialysis facility that | 16 |
| provides only dialysis training, support, and related services | 17 |
| to individuals with end stage renal disease who have elected to | 18 |
| receive home dialysis. This Act does not apply to a dialysis | 19 |
| unit located in a licensed nursing home that offers or provides | 20 |
| dialysis-related services to residents with end stage renal | 21 |
| disease who have elected to receive home dialysis within the | 22 |
| nursing home. The Board, however, may require these dialysis | 23 |
| facilities and licensed nursing homes to report statistical | 24 |
| information on a quarterly basis to the Board to be used by the | 25 |
| Board to conduct analyses on the need for proposed kidney | 26 |
| disease treatment centers.
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| This Act shall not apply to the closure of an entity or a | 28 |
| portion of an
entity licensed under the Nursing Home Care Act | 29 |
| that elects to convert, in
whole or in part, to an assisted | 30 |
| living or shared housing establishment
licensed under the | 31 |
| Assisted Living and Shared Housing Act.
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| With the exception of those health care facilities | 33 |
| specifically
included in this Section, nothing in this Act | 34 |
| shall be intended to
include facilities operated as a part of | 35 |
| the practice of a physician or
other licensed health care | 36 |
| professional, whether practicing in his
individual capacity or |
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| within the legal structure of any partnership,
medical or | 2 |
| professional corporation, or unincorporated medical or
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| professional group. Further, this Act shall not apply to | 4 |
| physicians or
other licensed health care professional's | 5 |
| practices where such practices
are carried out in a portion of | 6 |
| a health care facility under contract
with such health care | 7 |
| facility by a physician or by other licensed
health care | 8 |
| professionals, whether practicing in his individual capacity
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| or within the legal structure of any partnership, medical or
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| professional corporation, or unincorporated medical or | 11 |
| professional
groups. This Act shall apply to construction or
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| modification and to establishment by such health care facility | 13 |
| of such
contracted portion which is subject to facility | 14 |
| licensing requirements,
irrespective of the party responsible | 15 |
| for such action or attendant
financial obligation.
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| "Person" means any one or more natural persons, legal | 17 |
| entities,
governmental bodies other than federal, or any | 18 |
| combination thereof.
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| "Consumer" means any person other than a person (a) whose | 20 |
| major
occupation currently involves or whose official capacity | 21 |
| within the last
12 months has involved the providing, | 22 |
| administering or financing of any
type of health care facility, | 23 |
| (b) who is engaged in health research or
the teaching of | 24 |
| health, (c) who has a material financial interest in any
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| activity which involves the providing, administering or | 26 |
| financing of any
type of health care facility, or (d) who is or | 27 |
| ever has been a member of
the immediate family of the person | 28 |
| defined by (a), (b), or (c).
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| "State Board" means the Health Facilities Planning Board.
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| "Construction or modification" means the establishment, | 31 |
| erection,
building, alteration, reconstruction, modernization, | 32 |
| improvement,
extension, discontinuation, change of ownership, | 33 |
| of or by a health care
facility, or the purchase or acquisition | 34 |
| by or through a health care facility
of
equipment or service | 35 |
| for diagnostic or therapeutic purposes or for
facility | 36 |
| administration or operation, or any capital expenditure made by
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| or on behalf of a health care facility which
exceeds the | 2 |
| capital expenditure minimum; however, any capital expenditure
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| made by or on behalf of a health care facility for (i) the | 4 |
| construction or
modification of a facility licensed under the | 5 |
| Assisted Living and Shared
Housing Act or (ii) a conversion | 6 |
| project undertaken in accordance with Section 30 of the Older | 7 |
| Adult Services Act shall be excluded from any obligations under | 8 |
| this Act.
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| "Establish" means the construction of a health care | 10 |
| facility or the
replacement of an existing facility on another | 11 |
| site.
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| "Major medical equipment" means medical equipment which is | 13 |
| used for the
provision of medical and other health services and | 14 |
| which costs in excess
of the capital expenditure minimum, | 15 |
| except that such term does not include
medical equipment | 16 |
| acquired
by or on behalf of a clinical laboratory to provide | 17 |
| clinical laboratory
services if the clinical laboratory is | 18 |
| independent of a physician's office
and a hospital and it has | 19 |
| been determined under Title XVIII of the Social
Security Act to | 20 |
| meet the requirements of paragraphs (10) and (11) of Section
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| 1861(s) of such Act. In determining whether medical equipment | 22 |
| has a value
in excess of the capital expenditure minimum, the | 23 |
| value of studies, surveys,
designs, plans, working drawings, | 24 |
| specifications, and other activities
essential to the | 25 |
| acquisition of such equipment shall be included.
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| "Capital Expenditure" means an expenditure: (A) made by or | 27 |
| on behalf of
a health care facility (as such a facility is | 28 |
| defined in this Act); and
(B) which under generally accepted | 29 |
| accounting principles is not properly
chargeable as an expense | 30 |
| of operation and maintenance, or is made to obtain
by lease or | 31 |
| comparable arrangement any facility or part thereof or any
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| equipment for a facility or part; and which exceeds the capital | 33 |
| expenditure
minimum.
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| For the purpose of this paragraph, the cost of any studies, | 35 |
| surveys, designs,
plans, working drawings, specifications, and | 36 |
| other activities essential
to the acquisition, improvement, |
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| expansion, or replacement of any plant
or equipment with | 2 |
| respect to which an expenditure is made shall be included
in | 3 |
| determining if such expenditure exceeds the capital | 4 |
| expenditures minimum.
Donations of equipment
or facilities to a | 5 |
| health care facility which if acquired directly by such
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| facility would be subject to review under this Act shall be | 7 |
| considered capital
expenditures, and a transfer of equipment or | 8 |
| facilities for less than fair
market value shall be considered | 9 |
| a capital expenditure for purposes of this
Act if a transfer of | 10 |
| the equipment or facilities at fair market value would
be | 11 |
| subject to review.
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| "Capital expenditure minimum" means
$6,000,000, which | 13 |
| shall be annually
adjusted to reflect the increase in | 14 |
| construction costs due to inflation, for major medical | 15 |
| equipment and for all other
capital expenditures; provided, | 16 |
| however, that when a capital expenditure is
for the | 17 |
| construction or modification of a health and fitness center, | 18 |
| "capital
expenditure minimum" means the capital expenditure | 19 |
| minimum for all other
capital expenditures in effect on March | 20 |
| 1, 2000, which shall be annually
adjusted to reflect the | 21 |
| increase in construction costs due to inflation.
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| "Non-clinical service area" means an area (i) for the | 23 |
| benefit of the
patients, visitors, staff, or employees of a | 24 |
| health care facility and (ii) not
directly related to the | 25 |
| diagnosis, treatment, or rehabilitation of persons
receiving | 26 |
| services from the health care facility. "Non-clinical service | 27 |
| areas"
include, but are not limited to, chapels; gift shops; | 28 |
| news stands; computer
systems; tunnels, walkways, and | 29 |
| elevators; telephone systems; projects to
comply with life | 30 |
| safety codes; educational facilities; auditoriums; student | 31 |
| housing;
patient, employee, staff, and visitor dining areas; | 32 |
| administration and
volunteer offices; modernization of | 33 |
| structural components (such as roof
replacement and masonry | 34 |
| work); boiler repair or replacement; vehicle
maintenance and | 35 |
| storage facilities; parking facilities; mechanical systems for
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| heating, ventilation, and air conditioning; loading docks; and |
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| repair or
replacement of carpeting, tile, wall coverings, | 2 |
| window coverings or treatments,
or furniture. Solely for the | 3 |
| purpose of this definition, "non-clinical service
area" does | 4 |
| not include health and fitness centers.
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| "Areawide" means a major area of the State delineated on a
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| geographic, demographic, and functional basis for health | 7 |
| planning and
for health service and having within it one or | 8 |
| more local areas for
health planning and health service. The | 9 |
| term "region", as contrasted
with the term "subregion", and the | 10 |
| word "area" may be used synonymously
with the term "areawide".
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| "Local" means a subarea of a delineated major area that on | 12 |
| a
geographic, demographic, and functional basis may be | 13 |
| considered to be
part of such major area. The term "subregion" | 14 |
| may be used synonymously
with the term "local".
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| "Areawide health planning organization" or "Comprehensive | 16 |
| health
planning organization" means the health systems agency | 17 |
| designated by the
Secretary, Department of Health and Human | 18 |
| Services or any successor agency.
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| "Local health planning organization" means those local | 20 |
| health
planning organizations that are designated as such by | 21 |
| the areawide
health planning organization of the appropriate | 22 |
| area.
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| "Physician" means a person licensed to practice in | 24 |
| accordance with
the Medical Practice Act of 1987, as amended.
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| "Licensed health care professional" means a person | 26 |
| licensed to
practice a health profession under pertinent | 27 |
| licensing statutes of the
State of Illinois.
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| "Director" means the Director of the Illinois Department of | 29 |
| Public Health.
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| "Agency" means the Illinois Department of Public Health.
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| "Comprehensive health planning" means health planning | 32 |
| concerned with
the total population and all health and | 33 |
| associated problems that affect
the well-being of people and | 34 |
| that encompasses health services, health
manpower, and health | 35 |
| facilities; and the coordination among these and
with those | 36 |
| social, economic, and environmental factors that affect |
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| health.
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| "Alternative health care model" means a facility or program | 3 |
| authorized
under the Alternative Health Care Delivery Act.
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| "Out-of-state facility" means a person that is both (i) | 5 |
| licensed as a
hospital or as an ambulatory surgery center under | 6 |
| the laws of another state
or that
qualifies as a hospital or an | 7 |
| ambulatory surgery center under regulations
adopted pursuant | 8 |
| to the Social Security Act and (ii) not licensed under the
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| Ambulatory Surgical Treatment Center Act, the Hospital | 10 |
| Licensing Act, or the
Nursing Home Care Act. Affiliates of | 11 |
| out-of-state facilities shall be
considered out-of-state | 12 |
| facilities. Affiliates of Illinois licensed health
care | 13 |
| facilities 100% owned by an Illinois licensed health care | 14 |
| facility, its
parent, or Illinois physicians licensed to | 15 |
| practice medicine in all its
branches shall not be considered | 16 |
| out-of-state facilities. Nothing in
this definition shall be
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| construed to include an office or any part of an office of a | 18 |
| physician licensed
to practice medicine in all its branches in | 19 |
| Illinois that is not required to be
licensed under the | 20 |
| Ambulatory Surgical Treatment Center Act.
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| "Change of ownership of a health care facility" means a | 22 |
| change in the
person
who has ownership or
control of a health | 23 |
| care facility's physical plant and capital assets. A change
in | 24 |
| ownership is indicated by
the following transactions: sale, | 25 |
| transfer, acquisition, lease, change of
sponsorship, or other | 26 |
| means of
transferring control.
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| "Related person" means any person that: (i) is at least 50% | 28 |
| owned, directly
or indirectly, by
either the health care | 29 |
| facility or a person owning, directly or indirectly, at
least | 30 |
| 50% of the health
care facility; or (ii) owns, directly or | 31 |
| indirectly, at least 50% of the
health care facility.
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| "Charity care" means care provided by a health care | 33 |
| facility for which the provider does not expect to receive | 34 |
| payment from the patient or a third-party payer. | 35 |
| (Source: P.A. 93-41, eff. 6-27-03; 93-766, eff. 7-20-04; | 36 |
| 93-935, eff. 1-1-05; 93-1031, eff. 8-27-04; revised 10-25-04.)
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| (20 ILCS 3960/5) (from Ch. 111 1/2, par. 1155)
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| (Section scheduled to be repealed on July 1, 2006)
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| Sec. 5. After effective dates set by the State Board,
no | 4 |
| person shall construct, modify or establish a
health care | 5 |
| facility or acquire major medical equipment without first
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| obtaining a permit or exemption from the State
Board. The State | 7 |
| Board shall not delegate to the Executive Secretary of
the | 8 |
| State Board or any other person or entity the authority to | 9 |
| grant
permits or exemptions whenever the Executive Secretary or | 10 |
| other person or
entity would be required to exercise any | 11 |
| discretion affecting the decision
to grant a permit or | 12 |
| exemption. The State Board shall set effective
dates applicable | 13 |
| to all or to
each classification or category of health care | 14 |
| facilities and applicable
to all or each type of transaction | 15 |
| for which a permit is required.
Varying effective dates may be | 16 |
| set, providing the date or dates so set
shall apply uniformly | 17 |
| statewide.
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| Notwithstanding any effective dates established by this | 19 |
| Act or by the
State Board, no person shall be required to | 20 |
| obtain a permit for any
purpose under this Act until the State | 21 |
| health facilities plan referred
to in paragraph (4) of Section | 22 |
| 12 of this Act has been approved and
adopted by the State Board | 23 |
| subsequent to public hearings having been
held thereon.
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| A permit or exemption shall be obtained prior to the | 25 |
| acquisition
of major medical equipment or to the construction | 26 |
| or modification of a
health care facility which:
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| (a) requires a total capital expenditure in excess of | 28 |
| the capital
expenditure
minimum; or
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| (b) except for the establishment of swing-beds | 30 |
| authorized under Title XVIII of the federal Social Security | 31 |
| Act, substantially changes the scope or changes the | 32 |
| functional operation
of the facility; or
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| (c) changes the bed capacity of a health care facility | 34 |
| by increasing the
total number of beds or by distributing | 35 |
| beds among
various categories of service or by relocating |
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| beds from one physical facility
or site to another by more | 2 |
| than 20
10 beds or more than 10% of total bed
capacity as | 3 |
| defined by the
State Board, whichever is less, over a 2 | 4 |
| year period.
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| A permit shall be valid only for the defined construction | 6 |
| or modifications,
site, amount and person named in the | 7 |
| application for such permit and
shall not be transferable or | 8 |
| assignable. A permit shall be valid until such
time as the | 9 |
| project has been completed,
provided that (a) obligation of the | 10 |
| project occurs within 12 months following
issuance of the | 11 |
| permit except for major construction projects such obligation
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| must
occur within 18 months following issuance of the permit; | 13 |
| and (b) the project
commences and proceeds to completion with | 14 |
| due diligence. Major construction
projects, for the purposes of | 15 |
| this Act, shall include but are not limited
to: projects for | 16 |
| the construction of new buildings; additions to existing
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| facilities; modernization projects
whose cost is in excess of | 18 |
| $1,000,000 or 10% of the facilities' operating
revenue, | 19 |
| whichever is less; and such other projects as the State Board | 20 |
| shall
define and prescribe pursuant to this Act. The State | 21 |
| Board may extend the
obligation period upon a showing of good | 22 |
| cause by the permit holder. Permits
for projects that have not | 23 |
| been obligated within the prescribed obligation
period shall | 24 |
| expire on the last day of that period.
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| Persons who otherwise would be required to obtain a permit | 26 |
| shall be exempt
from such requirement if the State Board finds | 27 |
| that with respect to
establishing
a new facility or | 28 |
| construction of new buildings or additions or modifications
to | 29 |
| an existing facility, final plans and specifications for such | 30 |
| work have
prior to October 1, 1974, been submitted to and | 31 |
| approved by the Department
of Public Health in accordance with | 32 |
| the requirements of applicable laws.
Such exemptions shall be | 33 |
| null and void after December 31, 1979 unless binding
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| construction contracts were signed prior to December 1, 1979 | 35 |
| and unless
construction has commenced prior to December 31, | 36 |
| 1979. Such exemptions
shall be valid until such time as the |
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| project has been completed
provided that the project proceeds | 2 |
| to completion with due diligence.
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| The acquisition by any person of major medical equipment | 4 |
| that will not
be owned by or located in a health care facility | 5 |
| and that will not be used
to provide services to inpatients of | 6 |
| a health care facility shall be exempt
from review provided | 7 |
| that a notice is filed in accordance with exemption
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| requirements.
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| Notwithstanding any other provision of this Act, no permit | 10 |
| or exemption is
required for the construction or modification | 11 |
| of a non-clinical service area
of a health care facility.
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| (Source: P.A. 91-782, eff. 6-9-00 .)
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| (20 ILCS 3960/19.6)
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| (Section scheduled to be repealed on July 1, 2006)
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| Sec. 19.6. Repeal. This Act is repealed on July 1, 2011
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| 2006 .
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| (Source: P.A. 93-41, eff. 6-27-03; 93-889, eff. 8-9-04.)
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| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law. |
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