Bill Text: IL SB1836 | 2021-2022 | 102nd General Assembly | Enrolled
Bill Title: Amends the Nurse Agency Licensing Act. Defines "long-term basis" and "temporary basis". Provides that nurses or certified nurse aides employed, assigned, or referred to a health care facility by a nurse agency may only be terminated by the nurse agency for cause. Provides that nurse agencies are prohibited from entering into covenants not to compete with a nurse or a certified nurse aide if the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis or the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis. Provides that a covenant not to compete entered into on or after July 1, 2022 between a nurse agency and a nurse or a certified nurse aide is illegal and void if (i) the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis or (ii) the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a temporary basis. In any contract on a temporary basis with any nurse, certified nurse aide, or health care facility, prohibits a nurse agency from requiring the payment of liquidated damages, conversion fees, employment fees, buy-out fees, placement fees, or other compensation if the nurse or certified nurse aide is hired as a permanent employee of a health care facility. Provides that beginning on the effective date of the amendatory Act and ending on December 31, 2027, a nurse agency may enter into a covenant not to compete with a nurse or a certified nurse aide if the nurse is employed, assigned, or referred by a nurse agency to a health care facility on a long-term basis or the certified nurse aide is employed, assigned, or referred by a nurse agency to a health care facility on a long-term basis. Provides that if a covenant not to compete that was entered into on or before December 31, 2027 expires on or after January 1, 2028, the covenant not to compete shall remain in effect until its expiration date. Provides that to be enforceable, the term of a covenant not to compete entered into must be concurrent with the term of initial employment, assignment, or referral of the nurse or certified nurse aide to a health care facility. Provides that a contract on a long-term basis between any nurse, certified nurse aide, or health care facility and a nurse agency may provide for the payment of actual damages, conversion of fees, employment fees, buy-out fees, placement fees, or other reasonable expenses resulting from a violation of the contract that occurred during the initial employment, assignment, or referral term. Provides that provisions concerning contracts between nurse agencies and health care facilities do not apply to contracts on a long-term basis between a nurse agency and a health care facility providing for the employment, assignment, or referral of nurses or certified nurse aides to the health care facility. Effective immediately.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Enrolled - Dead) 2023-01-10 - Passed Both Houses [SB1836 Detail]
Download: Illinois-2021-SB1836-Enrolled.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Nurse Agency Licensing Act is amended by | ||||||
5 | changing Sections 3, 13, 14, and 14.3 as follows:
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6 | (225 ILCS 510/3) (from Ch. 111, par. 953)
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7 | Sec. 3. Definitions. As used in this Act:
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8 | "Certified nurse aide" means an individual certified as | ||||||
9 | defined in
Section 3-206 of the Nursing Home Care Act, Section | ||||||
10 | 3-206 of the ID/DD Community Care Act, or Section 3-206 of the | ||||||
11 | MC/DD Act, as now or hereafter amended.
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12 | "Covenant not to compete" means an agreement between a | ||||||
13 | nurse agency and an employee that restricts the employee from | ||||||
14 | performing: | ||||||
15 | (1) any work for another employer for a specified | ||||||
16 | period of time; | ||||||
17 | (2) any work in a specified geographic area; or | ||||||
18 | (3) any work for another employer that is similar to | ||||||
19 | the work the employee performs for the employer that is a | ||||||
20 | party to the agreement. | ||||||
21 | "Department" means the Department of Labor.
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22 | "Director" means the Director of Labor.
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23 | "Employee" means a nurse or a certified nurse aide. |
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1 | "Health care facility" is defined as in Section 3 of the | ||||||
2 | Illinois
Health Facilities Planning Act, as now or hereafter | ||||||
3 | amended. "Health care facility" also includes any facility | ||||||
4 | licensed, certified, or approved by any State agency and | ||||||
5 | subject to regulation under the Assisted Living and Shared | ||||||
6 | Housing Act or the Illinois Public Aid Code.
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7 | "Licensee" means any nurse nursing agency which is | ||||||
8 | properly licensed under
this Act. | ||||||
9 | "Long-term basis" means the placement of a nurse or a | ||||||
10 | certified nurse aide at a health care facility for an initial | ||||||
11 | employment, assignment, or referral term of more than 24 | ||||||
12 | continuous months by a nurse agency that incurs the following | ||||||
13 | expenses to place the nurse or certified nurse aide at the | ||||||
14 | health care facility: (i) educational material expenses, if | ||||||
15 | required; (ii) expenses for credentialing, licensure, or | ||||||
16 | certification; or (iii) expenses for airline travel, lodging, | ||||||
17 | meals, and ground transportation provided to a nurse or | ||||||
18 | certified nurse aide. "Long-term basis" does not include the | ||||||
19 | placement of a nurse or a certified nurse aide at a health care | ||||||
20 | facility for an initial employment, assignment, or referral | ||||||
21 | term of an undefined duration.
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22 | "Nurse" means a registered nurse, a licensed practical | ||||||
23 | nurse, an advanced practice registered nurse, or any | ||||||
24 | individual licensed under the Nurse Practice Act.
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25 | "Nurse agency" means any individual, firm, corporation,
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26 | partnership , or other legal entity that employs, assigns , or |
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1 | refers nurses
or certified nurse aides to a health care | ||||||
2 | facility for a
fee. The term "nurse agency" includes nurses | ||||||
3 | registries. The term "nurse
agency" does not include services | ||||||
4 | provided by home
health agencies licensed and operated under | ||||||
5 | the Home Health, Home Services, and Home Nursing Agency
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6 | Licensing Act or a licensed or certified
individual who | ||||||
7 | provides his or her own services as a regular employee of a
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8 | health care facility, nor does it apply to a health care | ||||||
9 | facility's
organizing nonsalaried employees to provide | ||||||
10 | services only in that
facility.
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11 | "Temporary basis" means an initial employment, assignment, | ||||||
12 | or referral term of an undefined duration or a duration of 24 | ||||||
13 | continuous months or less exclusive of any extension. | ||||||
14 | (Source: P.A. 102-946, eff. 7-1-22.)
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15 | (225 ILCS 510/13) (from Ch. 111, par. 963)
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16 | Sec. 13. Application for employment.
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17 | (a) Every nurse agency shall cause
each applicant for | ||||||
18 | employment, assignment, or referral, as a nurse to
complete an | ||||||
19 | application form including the following information:
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20 | (1) name and address of the applicant;
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21 | (2) whether or not such applicant is a nurse currently | ||||||
22 | licensed by the
Department of Financial and Professional | ||||||
23 | Regulation;
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24 | (3) if so licensed, the number and date of such | ||||||
25 | license; and
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1 | (4) references and dates and places of previous | ||||||
2 | employment.
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3 | Prior to employing, assigning, or referring a nurse, the | ||||||
4 | agency shall
contact the Department of Financial and | ||||||
5 | Professional Regulation to determine whether the
nurse's | ||||||
6 | license is valid and in good standing. Written verification | ||||||
7 | shall
be sent by the Department of Financial and Professional | ||||||
8 | Regulation within 20 working
days. At least biennially | ||||||
9 | thereafter, the nurse agency shall contact the
Department of | ||||||
10 | Financial and Professional Regulation to verify this | ||||||
11 | information in
writing. The nurse agency shall review the | ||||||
12 | disciplinary report published
by the Department of Financial | ||||||
13 | and Professional Regulation on a monthly basis to
determine | ||||||
14 | whether the nurse's license is valid and in good standing.
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15 | (b) Every nurse agency shall cause each applicant for | ||||||
16 | employment,
assignment, or referral, as a certified nurse aide | ||||||
17 | to complete an
application form including the following | ||||||
18 | information:
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19 | (1) name and address of the applicant;
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20 | (2) whether or not the nurse aide is registered as | ||||||
21 | having completed a
certified course as approved by the | ||||||
22 | Department of Public Health; and
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23 | (3) references and dates and places of previous | ||||||
24 | employment.
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25 | Prior to employing, assigning, or referring a certified | ||||||
26 | nurse aide, the agency shall review the information provided |
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1 | on the Health Care Worker Registry to verify that the | ||||||
2 | certification is valid. Prior to employing, assigning, or | ||||||
3 | referring a certified nurse aide to a position at a health care | ||||||
4 | employer or long-term facility as defined in the Health Care | ||||||
5 | Worker Background Check Act, the nurse agency shall review the | ||||||
6 | information provided on the Health Care Worker Registry to | ||||||
7 | verify that the certified nurse aide is not ineligible for the | ||||||
8 | position pursuant to Section 25 of the Health Care Worker | ||||||
9 | Background Check Act.
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10 | (c) Every nurse agency shall check at least 2 recent | ||||||
11 | references and the
dates of employment provided by the | ||||||
12 | applicant, unless the applicant has not
had 2 previous | ||||||
13 | employers.
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14 | (d) Knowingly employing, assigning, or referring to a | ||||||
15 | health care facility a nurse or certified nurse aide with an | ||||||
16 | illegally or fraudulently obtained or issued diploma, | ||||||
17 | registration, license, certificate, or background study | ||||||
18 | constitutes negligent hiring by a nurse agency and is a | ||||||
19 | violation of this Act. | ||||||
20 | (e) Nurses or certified nurses aides employed, assigned, | ||||||
21 | or referred to
a health care facility by a nurse agency shall | ||||||
22 | be deemed to be employees of
the nurse agency while working for | ||||||
23 | the nurse agency or on nurse agency
employment, assignment , or | ||||||
24 | referral and may only be terminated by the nurse agency for | ||||||
25 | cause .
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26 | (Source: P.A. 102-946, eff. 7-1-22; revised 8-22-22.)
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1 | (225 ILCS 510/14) (from Ch. 111, par. 964)
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2 | Sec. 14. Minimum Standards. | ||||||
3 | (a) The Department, by rule, shall
establish minimum | ||||||
4 | standards for the operation of nurse agencies. Those
standards | ||||||
5 | shall include, but are not limited to: | ||||||
6 | (1) the maintenance of written
policies and | ||||||
7 | procedures; | ||||||
8 | (2) the maintenance and submission to the Department | ||||||
9 | of copies of all contracts between the nurse agency and | ||||||
10 | health care facility to which it assigns or refers nurses | ||||||
11 | or certified nurse aides and copies of all invoices to | ||||||
12 | health care facilities personnel. Executed contracts must | ||||||
13 | be sent to the Department within 5 business days of their | ||||||
14 | effective date; and | ||||||
15 | (3) the development of personnel policies for nurses | ||||||
16 | or certified nurse aides employed, assigned, or referred | ||||||
17 | to health care facilities, including a personal interview, | ||||||
18 | a reference check, an annual
evaluation of each employee | ||||||
19 | (which may be based in part upon information provided by
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20 | health care facilities utilizing nurse agency personnel) , | ||||||
21 | and periodic
health examinations. Executed contracts must | ||||||
22 | be sent to the Department within 5 business days of their | ||||||
23 | effective date and are not subject to disclosure under the | ||||||
24 | Freedom of Information Act. | ||||||
25 | No less than 100% of the nurse or certified nurse aide |
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1 | hourly rate shall be paid to the nurse or certified nurse | ||||||
2 | aide employee.
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3 | (b) Each nurse agency shall have a nurse serving as a | ||||||
4 | manager or
supervisor of all nurses and certified nurses | ||||||
5 | aides.
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6 | (c) Each nurse agency shall
ensure that its employees meet | ||||||
7 | the minimum
licensing, training, continuing education, and | ||||||
8 | orientation standards for
which those employees
are licensed | ||||||
9 | or certified.
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10 | (d) A nurse agency shall not employ, assign, or refer for | ||||||
11 | use in an Illinois
health care facility a nurse or certified | ||||||
12 | nurse aide unless certified or
licensed under applicable | ||||||
13 | provisions of State and federal law or regulations.
Each | ||||||
14 | certified nurse aide shall comply with all pertinent
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15 | regulations of the Illinois Department of Public Health | ||||||
16 | relating to the
health and other qualifications of personnel | ||||||
17 | employed in health care facilities.
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18 | (e) The Department may adopt rules to monitor the usage of | ||||||
19 | nurse agency services to
determine their impact.
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20 | (f) Nurse agencies are prohibited from recruiting | ||||||
21 | potential employees on the premises of a health care facility | ||||||
22 | or requiring, as a condition of
employment, assignment, or | ||||||
23 | referral, that their employees
recruit new employees for the | ||||||
24 | nurse agency from
among the permanent employees of the health | ||||||
25 | care facility to which the
nurse agency employees have been | ||||||
26 | employed,
assigned, or referred,
and the health care facility |
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1 | to which such employees are employed, assigned,
or referred is | ||||||
2 | prohibited from requiring, as a condition of employment,
that | ||||||
3 | their employees recruit new employees from these nurse agency
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4 | employees. Violation of this provision is a business offense.
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5 | (g) Nurse agencies are prohibited from entering into | ||||||
6 | covenants not to compete with nurses and certified nurse aides | ||||||
7 | if the nurse is employed, assigned, or referred by a nurse | ||||||
8 | agency to a health care facility on a temporary basis or the | ||||||
9 | certified nurse aide is employed, assigned, or referred by a | ||||||
10 | nurse agency to a health care facility on a temporary basis . A | ||||||
11 | covenant not to compete entered into on or after July 1, 2022 | ||||||
12 | ( the effective date of Public Act 102-946) this amendatory Act | ||||||
13 | of the 102nd General Assembly between a nurse agency and a | ||||||
14 | nurse or a certified nurse aide is illegal and void if (i) the | ||||||
15 | nurse is employed, assigned, or referred by a nurse agency to a | ||||||
16 | health care facility on a temporary basis or (ii) the | ||||||
17 | certified nurse aide is employed, assigned, or referred by a | ||||||
18 | nurse agency to a health care facility on a temporary basis is | ||||||
19 | illegal and void . In The nursing agency shall not, in any | ||||||
20 | contract on a temporary basis with any nurse, certified nurse | ||||||
21 | aide, employee or health care facility, a nurse agency is | ||||||
22 | prohibited from requiring require the payment of liquidated | ||||||
23 | damages, conversion fees, employment fees, buy-out fees, | ||||||
24 | placement fees, or other compensation if the nurse or | ||||||
25 | certified nurse aide employee is hired as a permanent employee | ||||||
26 | of a health care facility. |
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1 | (g-5) Beginning on the effective date of this amendatory | ||||||
2 | Act of the 102nd General Assembly and ending on December 31, | ||||||
3 | 2027, a nurse agency may enter into a covenant not to compete | ||||||
4 | with a nurse or a certified nurse aide if (i) the nurse is | ||||||
5 | employed, assigned, or referred by a nurse agency to a health | ||||||
6 | care facility on a long-term basis or (ii) the certified nurse | ||||||
7 | aide is employed, assigned, or referred by a nurse agency to a | ||||||
8 | health care facility on a long-term basis. However, if a | ||||||
9 | covenant not to compete that was entered into on or before | ||||||
10 | December 31, 2027 expires on or after January 1, 2028, the | ||||||
11 | covenant not to compete shall remain in effect until its | ||||||
12 | expiration date. To be enforceable, the term of a covenant not | ||||||
13 | to compete entered into under this subsection must be | ||||||
14 | concurrent with the term of the initial employment, | ||||||
15 | assignment, or referral of the nurse or certified nurse aide | ||||||
16 | to a health care facility. A contract on a long-term basis | ||||||
17 | between any nurse, certified nurse aide, or health care | ||||||
18 | facility and a nurse agency may provide for the payment of | ||||||
19 | actual damages, conversion fees, employment fees, buy-out | ||||||
20 | fees, placement fees, or other reasonable expenses resulting | ||||||
21 | from a violation of the contract that occurred during the | ||||||
22 | initial employment, assignment, or referral term. | ||||||
23 | (h) A nurse agency shall submit a report quarterly to the | ||||||
24 | Department for each health care entity with whom the agency | ||||||
25 | contracts that includes all of the following by provider type | ||||||
26 | and county in which the work was performed: |
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1 | (1) A list of the average amount charged to the health | ||||||
2 | care facility for each individual employee category. | ||||||
3 | (2) A list of the average amount paid by the agency to | ||||||
4 | employees in each individual employee category. | ||||||
5 | (3) A list of the average amount of labor-related | ||||||
6 | costs paid by the agency for each employee category, | ||||||
7 | including payroll taxes, workers' compensation insurance, | ||||||
8 | professional liability coverage, credentialing and | ||||||
9 | testing, and other employee related costs. | ||||||
10 | The Department shall publish by county in which the work | ||||||
11 | was performed the average amount charged to the health care | ||||||
12 | facilities by nurse agencies for each individual worker | ||||||
13 | category and the average amount paid by the agency to each | ||||||
14 | individual worker category. | ||||||
15 | (i) The Department shall publish on its website the | ||||||
16 | reports yearly by county. | ||||||
17 | (j) The Department of Labor shall compel production of the | ||||||
18 | maintained records, as required under this Section, by the | ||||||
19 | nurse agencies. | ||||||
20 | (Source: P.A. 102-946, eff. 7-1-22.)
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21 | (225 ILCS 510/14.3) | ||||||
22 | Sec. 14.3. Contracts between nurse agencies and health | ||||||
23 | care facilities. | ||||||
24 | (a) A contract entered into on or after the effective date | ||||||
25 | of this amendatory Act of the 102nd General Assembly between |
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1 | the nurse agency and health care facility must contain the | ||||||
2 | following provisions: | ||||||
3 | (1) A full disclosure of charges and compensation.
The | ||||||
4 | disclosure shall include a schedule of all hourly bill | ||||||
5 | rates per category of employee, a full description of | ||||||
6 | administrative charges, and a schedule of rates of all | ||||||
7 | compensation per category of employee, including, but not | ||||||
8 | limited to, hourly regular pay rate, shift differential, | ||||||
9 | weekend differential, hazard pay, charge nurse add-on, | ||||||
10 | overtime, holiday pay, and travel or mileage pay. | ||||||
11 | (2) A commitment that nurses or certified nurse aides | ||||||
12 | employed, assigned, or referred to a health care facility | ||||||
13 | by the nurse agency perform any and all duties called for | ||||||
14 | within the full scope of practice for which the nurse or | ||||||
15 | certified nurse aide is licensed or certified. | ||||||
16 | (3) No less than 100% of the nurse or certified nurse | ||||||
17 | aide hourly rate shall be paid to the nurse or certified | ||||||
18 | nurse aide employee. | ||||||
19 | (b) A party's failure to comply with the requirements of | ||||||
20 | subsection (a) shall be a defense to the enforcement of a | ||||||
21 | contract between a nurse agency and a health care facility. | ||||||
22 | Any health care facility or nurse agency aggrieved by a | ||||||
23 | violation of subsection (a) shall have a right of action in a | ||||||
24 | State court against the offending party. A prevailing party | ||||||
25 | may recover for each violation: | ||||||
26 | (1) liquidated damages of $1,500 or actual damages, |
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1 | whichever is greater; | ||||||
2 | (2) reasonable attorney's fees and costs, including | ||||||
3 | expert witness fees and other litigation expenses; and | ||||||
4 | (3) other relief, including an injunction, as the | ||||||
5 | court may deem appropriate.
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6 | (c) This Section does not apply to contracts on a | ||||||
7 | long-term basis between a nurse agency and a health care | ||||||
8 | facility providing for the employment, assignment, or referral | ||||||
9 | of nurses or certified nurse aides to the health care | ||||||
10 | facility. | ||||||
11 | (Source: P.A. 102-946, eff. 7-1-22.)
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12 | Section 99. Effective date. This Act takes effect upon | ||||||
13 | becoming law.
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