00                             HOUSE BILL NO. 345                                                                          
01 "An Act amending the certificate of need requirements to exclude expenditures for                                       
02 diagnostic imaging equipment in certain circumstances."                                                                 
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 18.07.031(a) is amended to read:                                                                   
05            (a)  Except as provided in (c), (d), and (f) [(c) AND (d)] of this section, a                            
06       person may not make an expenditure of $1,000,000 or more for any of the following                                 
07       unless authorized under the terms of a certificate of need issued by the department:                              
08                 (1)  construction of a health care facility;                                                            
09                 (2)  alteration of the bed capacity of a health care facility; or                                       
10                 (3)  addition of a category of health services provided by a health care                                
11       facility.                                                                                                         
12    * Sec. 2. AS 18.07.031(e) is amended to read:                                                                      
13            (e)  In                                                                                                      
14                 (1)  (a) of this section, "expenditure" includes the purchase of property                           
01       occupied by or the equipment required for the health care facility and the net present                            
02       value of a lease for space occupied by or the equipment required for the health care                              
03       facility; "expenditure" does not include costs associated with routine maintenance and                            
04       replacement of equipment at an existing health care facility;                                                 
05                 (2)  (f) of this section, "critical access hospital" refers to a facility                           
06       designated as a critical access hospital by the department by regulatory authority                            
07       exercised under AS 18.05 or AS 18.20.                                                                         
08    * Sec. 3. AS 18.07.031 is amended by adding a new subsection to read:                                              
09            (f)  Notwithstanding the limitations in (a) of this section, a person may make                               
10       an expenditure of $1,000,000 or more for diagnostic imaging equipment without                                     
11       authorization under the terms of a certificate of need issued by the department if the                            
12       equipment is used in a health care facility that                                                                  
13                 (1)  is located in a                                                                                    
14                      (A)  borough with a population of 60,000 or more; and                                              
15                      (B)  a city that does not have a facility designated by the                                        
16            department as a critical access hospital; and                                                                
17                 (2)  has at least a 50 percent ownership by one or more physicians                                      
18       licensed in the state who are qualified to interpret, and actually interpret, diagnostic                          
19       images produced by the equipment in the facility.                                                                 
20    * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to                          
21 read:                                                                                                                   
22       APPLICABILITY. Sections 1 - 3 of this Act apply to health care facilities in existence                            
23 or proposed on or after the effective date of this Act. A decision of the Department of Health                          
24 and Social Services made before the effective date of this Act denying or granting a certificate                        
25 of need that was applied for or issued for a health care facility described in AS 18.07.031(f),                         
26 added by sec. 3 of this Act, shall be void and unnecessary. A pending application for a                                 
27 certificate of need for a health care facility described in AS 18.07.031(f), added by sec. 3 of                         
28 this Act, shall be returned to the applicant.