72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2941
 
                           A-Engrossed
 
                         House Bill 2884
                  Ordered by the House April 29
            Including House Amendments dated April 29
 
Sponsored by Representative KRUSE
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
    { - Extends exemption from certificate of need process to
closed system long term care facilities built after ___ that
initiate new institutional health services and admit nonresident
patients. - }
   { +  Exempts long term care facilities from requirements for
certificate of need. + }
 
                        A BILL FOR AN ACT
Relating to exemption of certain facilities from certificate of
  need process; amending ORS 101.090, 408.380 and 442.315.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 101.090 is amended to read:
  101.090.  { + (1) + } A closed system long term care facility
shall be subject to the same requirements as all other long term
care facilities, as defined by ORS 442.015  { - , except that it
shall be exempt from the certificate of need process provided by
ORS 442.315 - } .
   { +  (2) + }   { - However, Any - }   { + A + } closed system
long term care facility
  { - which - }  { +  built after ___ that + } initiates
 { - under this exemption - } any new institutional health
services, as defined in ORS 442.015, and   { - which
subsequently - }   { + that + } accepts patients who are not
residents of the continuing care retirement community,
 { - shall become - }   { + is not + } subject to certificate of
need review for   { - such - }  { + the + } new institutional
health services at the time that nonresident patients begin to be
admitted.
  SECTION 2. ORS 442.315 is amended to read:
  442.315. (1) Any new hospital   { - or new skilled nursing or
intermediate care service or facility not excluded pursuant to
ORS 441.065 - }  shall obtain a certificate of need from the
 { - Health Division - }   { + Department of Human Services + }
prior to an offering or development.
  (2) The   { - division - }   { + department + } shall adopt
rules specifying criteria and procedures for making decisions as
to the need for such new services or facilities.
 
  (3)(a) An applicant for a certificate of need shall apply to
the   { - division - }   { + department + } on forms provided for
this purpose which forms shall be established by
 { - division - }   { + department + } rule.
  (b) An applicant shall pay a fee prescribed as provided in this
section. Subject to the approval of the Oregon Department of
Administrative Services, the   { - division - }
 { + Department + }  { + of Human Services + } shall prescribe
application fees, based on the complexity and scope of the
proposed project.
  (4) The   { - division - }   { + Department + }  { + of Human
Services + } shall be the decision-making authority for the
purpose of certificates of need.
  (5)(a) An applicant or any affected person who is dissatisfied
with the proposed decision of the   { - division - }  { +
department + } is entitled to an informal hearing in the course
of review and before a final decision is rendered.
  (b) Following a final decision being rendered by the
  { - division - }  { +  department + }, an applicant or any
affected person may request a reconsideration hearing pursuant to
ORS 183.310 to 183.550.
  (c) In any proceeding brought by an affected person or an
applicant challenging a   { - division - }   { + department + }
decision under this subsection, the   { - division - }
 { + department + } shall follow procedures consistent with the
provisions of ORS 183.310 to 183.550 relating to a contested
case.
  (6) Once a certificate of need has been issued, it may not be
revoked or rescinded unless it was acquired by fraud or deceit.
However, if the   { - division - }   { + department + } finds
that a person is offering or developing a project that is not
within the scope of the certificate of need, the
 { - division - }   { + department + } may limit the project as
specified in the issued certificate of need or reconsider the
application. A certificate of need is not transferable.
  (7) Nothing in this section applies to any hospital  { - ,
skilled nursing or intermediate care service or facility - }
that seeks to replace equipment with equipment of similar basic
technological function or an upgrade that improves the quality or
cost-effectiveness of the service provided. Any person acquiring
such replacement or upgrade shall file a letter of intent for the
project in accordance with the rules of the   { - division - }
 { + department + } if the price of the replacement equipment or
upgrade exceeds $1 million.
  (8) Except as required in subsection (1) of this section for a
new hospital   { - or new skilled nursing or intermediate care
service or facility - }  not operating as a Medicare swing bed
program, nothing in this section requires a rural hospital as
defined in ORS 442.470 (5)(a)(A) and (B) to obtain a certificate
of need.
  (9) Nothing in this section applies to basic health services,
but basic health services do not include:
  (a) Magnetic resonance imaging scanners;
  (b) Positron emission tomography scanners;
  (c) Cardiac catheterization equipment;
  (d) Megavoltage radiation therapy equipment;
  (e) Extracorporeal shock wave lithotriptors;
  (f) Neonatal intensive care;
  (g) Burn care;
  (h) Trauma care;
  (i) Inpatient psychiatric services;
  (j) Inpatient chemical dependency services;
  (k) Inpatient rehabilitation services;
  (L) Open heart surgery; or
  (m) Organ transplant services.
 
  (10) In addition to any other remedy provided by law, whenever
it appears that any person is engaged in, or is about to engage
in, any acts which constitute a violation of this section, or any
rule or order issued by the   { - division - }
 { + department + } under this section, the   { - division - }
 { + department + } may institute proceedings in the circuit
courts to enforce obedience to such statute, rule or order by
injunction or by other processes, mandatory or otherwise.
  (11) As used in this section, 'basic health services' means
health services offered in or through a hospital licensed under
ORS chapter 441, except   { - skilled nursing or intermediate
care nursing facilities or services and - }  those services
specified in subsection (9) of this section.
  SECTION 3. ORS 408.380 is amended to read:
  408.380. The Oregon Veterans' Home authorized by section 1,
chapter 591, Oregon Laws 1995, is subject to all state laws and
administrative rules and all federal laws and administrative
regulations to which long term care facilities operated by
nongovernmental entities are subject  { - , including the
requirement to obtain a certificate of need under ORS 442.315
from the office of the Director of Human Services - } . As used
in this section, ' long term care facility' has the meaning given
that term in ORS 442.015.
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