Sec. 10.24.01.15. Commission Approval Required Before Certain Actions

A. Approval of Architectural Plans. Architectural plans and specifications for a project that requires a Certificate of Need may not be approved by the agency responsible for their review under health facility licensure requirements until the project has been issued a Certificate of Need by the Commission.

B. Approval of State or Federal Grants, Loans, or Mortgage Insurance under Department-Administered Programs. Applications by owners or sponsors of projects requiring Commission approval, for federal or State grants, loans, or mortgage insurance under Department-administered programs for project construction, modernization, or equipment, may not be officially approved by the administering agency until the applicant and the administering agency have been formally notified of Certificate of Need approval or other action by the Commission.

C. Signing of Contracts Related to State Capital Improvement. State capital improvement projects for facilities administered by the Department, and requiring approval under the law and these regulations, may not have contracts signed for the development of architectural drawings, construction, or equipment until the Department's administering agency and the State agency responsible for the contracts have been formally notified of Certificate of Need approval or other action by the Commission.

D. Obligation of Capital Expenditure.

(1) A person may not incur an obligation for a capital expenditure that is subject to review under these regulations until the applicant receives a Certificate of Need or other approval required by the Commission.

(2) An obligation for capital expenditure is considered to be incurred by or on behalf of a health care facility when a contract, enforceable under State law, is entered into by or on behalf of the health care facility for the construction, acquisition, lease, or financing of a capital asset, or when a governing body of the health care facility takes formal action to commit its own funds for a construction project undertaken by the health care facility as its own contractor, or, in the case of donated property, on the date on which the gift is completed under applicable State law.

E. Obligation of Predevelopment Expenditures. An applicant proposing predevelopment expenditures requiring review under Regulation .02 of this chapter may not enter into a binding contract or other obligation for these activities until the applicant receives a Certificate of Need or other approval required by the Commission.

F. Binding Commitments for Financing. A binding arrangement or commitment for financing a project may not be entered into by an applicant until the applicant receives Certificate of Need approval for the project to be financed.