FILED SENATE
Apr 1, 2021
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 462
SESSION 2021 PRINCIPAL CLERK
S D
SENATE BILL DRS15143-MG-65A
Short Title: CON/Threshold Amds. & Certificate Expirations. (Public)
Sponsors: Senators Krawiec, Perry, and Burgin (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT AMENDING CERTIFICATE OF NEED LAWS TO EXPAND ACCESS AND
3 LOWER COSTS.
4 The General Assembly of North Carolina enacts:
5 SECTION 1. G.S. 131E-176 reads as rewritten:
6 "§ 131E-176. Definitions.
7 As used in this Article, unless the context clearly requires otherwise, the following terms
8 have the meanings specified:
9 …
10 (7a) "Diagnostic center" means a freestanding facility, program, or provider,
11 including but not limited to, physicians' offices, clinical laboratories,
12 radiology centers, and mobile diagnostic programs, in which the total cost of
13 all the medical diagnostic equipment utilized by the facility which cost ten
14 thousand dollars ($10,000) or more exceeds five hundred thousand dollars
15 ($500,000). one million five hundred thousand dollars ($1,500,000). In
16 determining whether the medical diagnostic equipment in a diagnostic center
17 costs more than five hundred thousand dollars ($500,000), one million five
18 hundred thousand dollars ($1,500,000), the costs of the equipment, studies,
19 surveys, designs, plans, working drawings, specifications, construction,
20 installation, and other activities essential to acquiring and making operational
21 the equipment shall be included. The capital expenditure for the equipment
22 shall be deemed to be the fair market value of the equipment or the cost of the
23 equipment, whichever is greater. Beginning September 30, 2022, and on
24 September 30 each year thereafter, the cost threshold amount in this
25 subdivision shall be adjusted using the Medical Care Index component of the
26 Consumer Price Index published by the U.S. Department of Labor for the
27 12-month period preceding the previous September 1.
28 …
29 (14o) "Major medical equipment" means a single unit or single system of
30 components with related functions which is used to provide medical and other
31 health services and which costs more than seven hundred fifty thousand
32 dollars ($750,000). two million dollars ($2,000,000). In determining whether
33 the major medical equipment costs more than seven hundred fifty thousand
34 dollars ($750,000), two million dollars ($2,000,000), the costs of the
35 equipment, studies, surveys, designs, plans, working drawings, specifications,
36 construction, installation, and other activities essential to acquiring and
*DRS15143-MG-65A*
 General Assembly Of North Carolina Session 2021
1 making operational the major medical equipment shall be included. The
2 capital expenditure for the equipment shall be deemed to be the fair market
3 value of the equipment or the cost of the equipment, whichever is greater.
4 Major medical equipment does not include replacement equipment as defined
5 in this section. Beginning September 30, 2022, and on September 30 each year
6 thereafter, the cost threshold amount in this subdivision shall be adjusted using
7 the Medical Care Index component of the Consumer Price Index published by
8 the U.S. Department of Labor for the 12-month period preceding the previous
9 September 1.
10 …
11 (16) "New institutional health services" means any of the following:
12 …
13 b. Except as otherwise provided in G.S. 131E-184(e), the obligation by
14 any person of a capital expenditure exceeding two four million dollars
15 ($2,000,000) ($4,000,000) to develop or expand a health service or a
16 health service facility, or which relates to the provision of a health
17 service. The cost of any studies, surveys, designs, plans, working
18 drawings, specifications, and other activities, including staff effort and
19 consulting and other services, essential to the acquisition,
20 improvement, expansion, or replacement of any plant or equipment
21 with respect to which an expenditure is made shall be included in
22 determining if the expenditure exceeds two four million dollars
23 ($2,000,000).($4,000,000). Beginning September 30, 2022, and on
24 September 30 each year thereafter, the amount in this sub-subdivision
25 shall be adjusted using the Medical Care Index component of the
26 Consumer Price Index published by the U.S. Department of Labor for
27 the 12-month period preceding the previous September 1.
28 …."
29 SECTION 2. G.S. 131E-189 is amended by adding a new subsection to read:
30 "(d) Notwithstanding any other provision of this section, a certificate of need issued by
31 the Department for the construction of a health service facility expires if the holder of the
32 certificate of need fails to initiate construction of the project authorized by the certificate of need
33 within the following time frames:
34 (1) For a project that costs over fifty million dollars ($50,000,000), the holder of
35 the certificate of need shall initiate construction of the project authorized by
36 the certificate of need within four years after the date the Department's
37 decision to approve the certificate of need for that project becomes final.
38 (2) For a project that costs fifty million dollars ($50,000,000) or less, the holder
39 of the certificate of need shall initiate construction of the project authorized
40 by the certificate of need within two years after the date the Department's
41 decision to approve the certificate of need for that project becomes final."
42 SECTION 3. If any part of this act is declared unconstitutional or invalid by the
43 courts, it does not affect the validity of this act as a whole or any part other than the part declared
44 to be unconstitutional or invalid.
45 SECTION 4. Section 3 of this act is effective when it becomes law. The remainder
46 of this act becomes effective October 1, 2021.
Page 2 DRS15143-MG-65A


Statutes affected:
Filed: 131E-176, 131E-189
Edition 1: 131E-176, 131E-189
Edition 2: 131E-176, 131E-189
Edition 3: 131E-176, 131E-189
Ratified: 131E-176, 131E-189
SL 2021-129: 131E-176, 131E-189