00                             HOUSE BILL NO. 287                                                                          
01 "An Act amending the certificate of need requirements to apply only to health care                                      
02 facilities and nursing homes located in a borough with a population of not more than                                    
03 25,000, in the unorganized borough, or in a community with a critical access hospital."                                 
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  AS 18.07.031(a) is amended to read:                                                                  
06            (a)  Except as provided in (c) and (d) of this section, a person may not make an                             
07       expenditure of $1,000,000 or more for any of the following in a borough with a                                
08       population of not more than 25,000, in the unorganized borough, or in a                                       
09       community in which a facility has been designated by the department as a critical                             
10       access hospital, unless authorized under the terms of a certificate of need issued by                         
11       the department:                                                                                                   
12                 (1)  construction of a health care facility;                                                            
13                 (2)  alteration of the bed capacity of a health care facility; or                                       
14                 (3)  addition of a category of health services provided by a health care                                
01       facility.                                                                                                         
02    * Sec. 2.  AS 18.07.031(b) is amended to read:                                                                     
03            (b)  Notwithstanding the expenditure threshold in (a) of this section, a person                              
04       may not convert a building or part of a building to a nursing home that requires                                  
05       licensure under AS 18.20.020 located in a borough with a population of not more                               
06       than 25,000, in the unorganized borough, or in a community in which a facility                                
07       has been designated as a critical access hospital unless authorized under the terms                           
08       of a certificate of need issued by the department.                                                                
09    * Sec. 3.  AS 18.07.031 is amended by adding a new subsection to read:                                             
10            (f)  In this section, reference to the department's designation of a facility as a                           
11       critical access hospital means action taken by regulatory authority exercised under                               
12       AS 18.05 or AS 18.20 by which a facility eligible for designation as a critical access                            
13       hospital has been so identified.                                                                                  
14    * Sec. 4.  The uncodified law of the State of Alaska is amended by adding a new section to                         
15 read:                                                                                                                   
16       APPLICABILITY.  Sections 1 - 3 of this Act apply to health care facilities and                                    
17 nursing homes in existence or proposed on or after the effective date of this Act.  A decision                          
18 of the Department of Health and Social Services denying or granting a certificate of need that                          
19 has been applied for or issued for a health care facility or nursing home located in an area of                         
20 the state other than in a borough with a population of not more than 25,000, the unorganized                            
21 borough, or a community in which a facility has been designated as a critical access hospital                           
22 before the effective date of this Act shall be void and unnecessary.  A pending application for                         
23 a certificate of need for a health care facility or nursing home located in an area of the state                        
24 other than in a borough with a population of not more than 25,000, the unorganized borough,                             
25 or a community in which a facility has been designated as a critical access hospital before the                         
26 effective date of this Act shall be returned to the applicant.