WAC 246-310-500   Issuance, suspension, denial, revocation, and transfer of a certificate of need.  (1) The secretary's designee shall issue a certificate of need to the applicant.

     (a) The secretary's designee shall issue a certificate of need for:

     (i) The proposed project, or

     (ii) A separable portion of the proposed project.

     (b) When the certificate of need is issued for a separable portion of the proposed project, the secretary's designee shall provide written notice to the applicant stating the reasons for the department's action.

     (c) The secretary's designee shall issue a certificate of need only when the department finds that the project or the separable portion of the proposed project is consistent with the applicable criteria contained in chapter 246-310 WAC.

     (d) In issuing a certificate of need, the secretary's designee shall:

     (i) Specify the maximum capital expenditure which may be obligated under the certificate, and

     (ii) Prescribe the cost components to be included in determining the capital expenditure which may be obligated under such certificate.

     (2) The secretary's designee may issue a conditional certificate of need for a proposed project or a separable portion of the proposed project.

     (a) The conditions attached to a certificate of need must directly relate to the project being reviewed.

     (b) The conditions must directly relate to criteria contained in chapter 246-310 WAC.

     (3) The department shall apply the following provisions when suspending a certificate of need.

     (a) The secretary's designee may suspend a certificate of need for cause which shall include, but not be limited to:

     (i) Suspicion of fraud,

     (ii) Misrepresentation,

     (iii) False statements,

     (iv) Misleading statements,

     (v) Evasion or suppression of material fact in the application for a certificate of need or any of its supporting materials.

     (b) The secretary's designee shall issue an order which states the reason for any suspension of a certificate of need to the person to whom the certificate of need had been issued.

     (c) A suspension of a certificate of need shall not exceed one hundred twenty calendar days.

     (i) Prior to the expiration of the suspension the department shall:

     (A) Review the facts and circumstances relevant to the suspension;

     (B) Reinstate, amend, or revoke the certificate of need; and,

     (ii) Send written notice of its decision on a suspended certificate of need to the person to whom the certificate of need had been issued.

     (4) The secretary's designee shall send written notification of denial of a certificate of need to the applicant submitting the certificate of need application stating the reasons for the denial.

     (5) When a proposed project or separable portion of the proposed project is denied a certificate of need, the department shall not accept another certificate of need application for the same project or separable portion unless the department determines:

     (a) There is a substantial change in existing or proposed health facilities or services in the area to be served by the project; or

     (b) There is a substantial change in the need for the facilities or services of the type proposed in the area to be served by the project; or

     (c) One year has lapsed since the submission of the application for the certificate of need subject to regular review which was denied or the next scheduled concurrent review cycle permits the submission of applications.

     (6) The department shall apply the following provisions in the revocation of a certificate of need.

     (a) The secretary's designee may revoke a certificate of need for cause which shall include the following:

     (i) Fraud,

     (ii) Misrepresentation,

     (iii) False statements,

     (iv) Misleading statements, and

     (v) Evasion or suppression of material facts in the application of a certificate of need, or in any of its supporting materials.

     (b) When the secretary's designee revokes a certificate of need, the secretary's designee shall provide written notice of revocation to the person to whom the certificate of need was issued, including a statement of the reasons for such revocation.

     (7) The department shall apply the following procedures in transferring or assigning a certificate of need.

     (a) The department shall consider a request to transfer or assign a certificate of need valid only when:

     (i) The person to whom the certificate of need was originally issued, or personal representative, where the holder is deceased, submits to the department a written request that the certificate of need be transferred to another person and gives the full name and complete address of the other person; and

     (ii) The person to whom the current holder of the certificate of need wishes to transfer the certificate sends an application for such transfer on a form and in such a manner as prescribed and published by the department.

     (b) The department shall review applications for transfer or assignment of a certificate of need according to the:

     (i) Expedited review procedures in WAC 246-310-150; or

     (ii) Regular review procedures in WAC 246-310-160.

     (c) The secretary's designee shall base his or her decision to approve or deny an application to transfer or assign a certificate of need on:

     (i) The demonstrated ability of the person wishing to acquire the certificate of need to undertake, complete, and operate the project in accordance with the following review criteria:

     (A) WAC 246-310-220 (1) and (3), and

     (B) WAC 246-310-230 (1), (3), and (5).

     (ii) The continuing conformance of the project with all other applicable review criteria.

     (d) When the person submitting an application to transfer or assign a certificate of need proposes to modify the project description or the maximum capital expenditure, the department shall inform in writing such person that a new or amended certificate of need is required.

     (e) When the department denies an application for transfer or assignment of a certificate of need, the department shall inform in writing the person who submitted the application of the reasons for such denial.

     (f) The department shall not transfer or assign any certificate of need issued after February 1, 1988, except when:

     (i) Prior to completion of the project, death or divorce of one or more persons holding a certificate renders it impossible or impractical to complete the project in the absence of a transfer or assignment; or

     (ii) After commencement, a substantial portion of the project has been completed by the original holder of the certificate.

     (g) The department shall not transfer or assign a certificate of need under subsection (7)(f)(i) and (ii) of this section when the authorized project is to be relocated.

     (h) When the department transfers a certificate of need for a project which has not been commenced, the transferred certificate of need shall have a validity period of two years from the date of issue with the provision for one six-month extension if the holder can demonstrate to the satisfaction of the secretary's designee that substantial and continuing progress towards commencement has been made.



[Statutory Authority: Chapter 70.38 RCW. 96-24-052, § 246-310-500, filed 11/27/96, effective 12/28/96. Statutory Authority: RCW 70.38.135. 91-05-093 (Order 143), § 246-310-500, filed 2/20/91, effective 3/23/91. Statutory Authority: RCW 43.70.040. 91-02-049 (Order 121), recodified as § 246-310-500, filed 12/27/90, effective 1/31/91. Statutory Authority: RCW 70.38.115. 89-02-040 (Order 2745), § 248-19-440, filed 12/30/88. Statutory Authority: RCW 70.38.135. 86-06-030 (Order 2344), § 248-19-440, filed 2/28/86; 81-09-012 (Order 210), § 248-19-440, filed 4/9/81, effective 5/20/81. Statutory Authority: Chapter 70.38 RCW. 79-12-079 (Order 188), § 248-19-440, filed 11/30/79.]