Assembly Bill No. 402–Assemblymen Sherer, Knecht, Brown, Collins, Conklin, Geddes, Hettrick, Koivisto and Marvel

 

March 17, 2003

____________

 

Referred to Committee on Health and Human Services

 

SUMMARY—Revises requirements concerning approval of
certain construction on behalf of health facility. (BDR 40‑816)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to health care; revising the requirements concerning the approval by the Director of the Department of Human Resources of certain construction projects on behalf of a health facility; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 439A.100 is hereby amended to read as

1-2  follows:

1-3  439A.100  1.  Except as otherwise provided in this section, in

1-4  a county whose population is less than 100,000, no person may

1-5  undertake any proposed expenditure for new construction by or on

1-6  behalf of a health facility in excess of the greater of $2,000,000 or

1-7  such an amount as the Department may specify by regulation, which

1-8  under generally accepted accounting principles consistently applied

1-9  is a capital expenditure, without first applying for and obtaining the

1-10  written approval of the Director. The Health Division of the

1-11  Department of Human Resources shall not issue a new license or

1-12  alter an existing license for such a project unless the Director has

1-13  issued such an approval.

1-14      2.  The provisions of subsection 1 do not apply to:

2-1  (a) Any capital expenditure for:

2-2       (1) The acquisition of land;

2-3       (2) The construction of a facility for parking;

2-4       (3) The maintenance of a health facility;

2-5       (4) The renovation of a health facility to comply with

2-6  standards for safety, licensure, certification or accreditation;

2-7       (5) The installation of a system to conserve energy;

2-8       (6) The installation of a system for data processing or

2-9  communication; or

2-10          (7) Any other project which, in the opinion of the Director,

2-11  does not relate directly to the provision of any health service; or

2-12      (b) Any project for the development of a health facility that has

2-13  received legislative approval and authorization.

2-14      (c) A project for the construction of a hospital in an

2-15  unincorporated town if:

2-16          (1) The population of the unincorporated town is more than

2-17  24,000;

2-18          (2) No other hospital exists in the town;

2-19          (3) No other hospital has been approved for construction or

2-20  qualified for an exemption from approval for construction in the

2-21  town pursuant to this section; and

2-22          (4) The unincorporated town is at least a 45-minute drive

2-23  from the nearest center for the treatment of trauma that is licensed

2-24  by the Health Division of the Department.

2-25  Upon determining that a project satisfies the requirements for an

2-26  exemption pursuant to this subsection, the Director shall issue a

2-27  certificate which states that the project is exempt from the

2-28  requirements of this section.

2-29      3.  In reviewing an application for approval, the Director shall:

2-30      (a) Comparatively assess applications for similar projects

2-31  affecting the same geographic area; and

2-32      (b) Base his decision on criteria established by the Director by

2-33  regulation. The criteria must include:

2-34          (1) The need for and the appropriateness of the project in the

2-35  area to be served;

2-36          (2) The financial feasibility of the project;

2-37          (3) The effect of the project on the cost of health care; and

2-38          (4) The extent to which the project is consistent with the

2-39  purposes set forth in NRS 439A.020 and the priorities set forth in

2-40  NRS 439A.081.

2-41      4.  The Department may by regulation require additional

2-42  approval for a proposed change to a project which has previously

2-43  been approved if the proposal would result in a change in the

2-44  location of the project or a substantial increase in the cost of the

2-45  project.

3-1  5.  The decision of the Director is a final decision for the

3-2  purposes of judicial review.

3-3  6.  As used in this section, “hospital” has the meaning

3-4  ascribed to it in NRS 449.012.

3-5  Sec. 2.  1.  The Director of the Department of Human

3-6  Resources shall issue a certificate of exemption for any project for

3-7  which an application for approval has been filed pursuant to NRS

3-8  439A.100 that is pending on July 1, 2003, if the application is

3-9  exempt from the requirement of approval pursuant to the

3-10  amendatory provisions of this act.

3-11      2.  The amendatory provisions of this act that require the

3-12  approval pursuant to NRS 439A.100 of a project that was previously

3-13  exempt apply to projects for which construction begins on or after

3-14  July 1, 2003, unless a health facility had entered into a binding

3-15  contract for the construction before July 1, 2003.

3-16      Sec. 3.  This act becomes effective on July 1, 2003.

 

3-17  H