House Bill 811

AN ACT TO AMEND SECTION 41-7-195, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE STATE DEPARTMENT OF HEALTH SHALL NOT EXTEND A CERTIFICATE OF NEED MORE THAN ONE TIME, AND THE MAXIMUM PERIOD OF TIME THAT A CERTIFICATE OF NEED SHALL BE VALID, INCLUDING ANY EXTENSION OF THE CERTIFICATE, SHALL BE EIGHTEEN MONTHS; TO PROVIDE THAT CERTIFICATES OF NEED FOR SKILLED NURSING FACILITIES, HOSPITALS, PSYCHIATRIC HOSPITALS, CHEMICAL DEPENDENCY HOSPITALS AND LONG-TERM CARE HOSPITALS SHALL BE ISSUED FOR A PERIOD OF NOT MORE THAN SIXTY MONTHS AS SPECIFIED BY THE STATE DEPARTMENT OF HEALTH, AND THE MAXIMUM PERIOD OF TIME THAT A CERTIFICATE OF NEED ISSUED FOR THOSE FACILITIES SHALL BE VALID, INCLUDING ANY EXTENSION OF THE CERTIFICATE, SHALL BE SIXTY-SIX MONTHS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 41-7-195, Mississippi Code of 1972, is amended as follows:

41-7-195. (1) A certificate of need shall be valid only for the defined scope, physical location and person named in the application. A certificate of need shall not be transferable or assignable nor shall a project or capital expenditure project be transferred from one person to another, except with the approval of the State Department of Health. A certificate of need shall be valid for the period of time specified in the certificate of need.

(2) Except as otherwise provided in subsection (5) of this section, a certificate of need shall be issued for a period of twelve (12) months, or any other lesser period as specified by the State Department of Health.

(3) The State Department of Health may define by regulation, not to exceed six (6) months, the time for which a certificate of need may be extended. The department shall not extend a certificate of need more than one (1) time.

(4) Except as otherwise provided in subsection (5) of this section, the maximum period of time that a certificate of need will be valid, including any extension of the certificate, is eighteen (18) months. If the department does not extend a certificate of need, the certificate shall expire twelve (12) months from the date of its issuance. If the department extends a certificate of need by six (6) months, the certificate shall expire eighteen (18) months from the date of its issuance.

(5) A certificate of need authorizing the construction or expansion of a skilled nursing facility, hospital, psychiatric hospital, chemical dependency hospital or long-term care hospital shall be issued for a period of not more than sixty (60) months as specified by the State Department of Health. The maximum period of time that a certificate of need issued under this subsection will be valid, including any extension of the certificate, is sixty-six (66) months. If the department does not extend a certificate of need, the certificate shall expire sixty (60) months from the date of its issuance, or any lesser period as specified in the certificate of need.

(6) If commencement of construction or other preparation is not substantially undertaken during a valid certificate of need period or the State Department of Health determines the applicant is not making a good faith effort to obligate the approved expenditure, the State Department of Health shall have the right to withdraw, revoke or rescind the certificate.

(7) The State Department of Health may approve or disapprove a proposal for a certificate of need as originally presented in final form, or it may approve a certificate of need by a modification, by reduction only, of the proposal provided the proponent agrees to the modification.

SECTION 2. The amendments made to Section 41-7-195 in Section 1 of this act shall apply only to certificates of need issued on or after July 1, 2010. Any certificate of need issued before July 1, 2010, shall be governed by the provisions of Section 41-7-195 as it existed on June 30, 2010.

SECTION 3. This act shall take effect and be in force from and after July 1, 2010.