Florida Regulations 59C-1.018: Termination of Certificate of Need
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(1) Validity Period of Certificate of Need. A Certificate of Need shall terminate 18 months from the date of issuance unless the holder meets the applicable conditions for an extension set forth in Florida Statutes § 408.040(2), and this rule.
(2) Undertaking a Project Authorized by a Certificate of Need. A Certificate of Need will terminate after the 18-month time frame set forth in subsection (1) unless the applicant meets one of the minimum requirements described below:
(a) Certificates of Need for New Construction or Renovation Projects.
1. A holder of a Certificate of Need with a project for new construction must, by the date of termination of the Certificate of Need, be deemed to have commenced continuous construction as defined in Florida Statutes § 408.032(4) For purposes of compliance, site preparation must be completed as defined below:
a. Completion of site preparation activities which include clearing of land, removal of soil, placement and compacting of fill dirt, and grading and leveling of the site for that portion of the site which will contain the foundation;
b. Foundation permit;
c. Completion of footprint of the certificated portion of the building, unless the contractor is building a hospital using the fast-track method of construction and the agreement between the contractor and the Certificate of Need holder provides for the use of that method; and,
d. Foundation forming with placement of concrete and steel which will become an integral part of the final facility to be constructed.
2. A holder of a Certificate of Need for renovation of an existing structure must, by the date of termination of the Certificate of Need, be deemed to have commenced construction. This is established by completing site preparation which is defined as having a demolition permit or building permit, having an executed owner or contractor agreement, and demonstrating proof of the commencement of demolition.
3. The Agency staff or a designated representative shall make an unannounced visit to each project site on the termination date of the Certificate of Need. The visit shall result in photographs of the site and a written report. The Certificate of Need holder may submit information for evaluation to the staff of the Agency or the designated representative on the day of the site visit. On or before 14 calendar days of receipt of the information, staff designated by the Agency shall evaluate the information and make a determination of whether or not the project has commenced construction.
a. If deemed to have commenced construction, continuous construction must be maintained. For purposes of monitoring compliance, “”continuous construction”” refers to work performed under the authority of an architect to whom the contractor is responsible and which advances the project towards completion in accordance with the project timetable and standard, acceptable construction procedures. Any return to site preparation as defined in sub-subparagraphs 59C-1.018(2)(a)1.a.-d., F.A.C., without approval, as provided in paragraphs 59C-1.021(2)(a) and (b), F.A.C., of the Agency is strictly prohibited and is deemed not to be continuous construction.
b. If deemed not to have commenced construction, the holder of the Certificate of Need shall be notified, in writing, of the determination and the right to a hearing under Florida Statutes § 120.57, by the director or his or her designee from the Agency. The Certificate of Need shall terminate by operation of law.
(b) Certificates of Need for Non-construction Projects.
1. A holder of a Certificate of Need for a non-construction project including Hospice, bed conversions and establishment of new health services, or a substantial change in such services, must provide proof of having made an enforceable capital expenditure greater than 10% percent of the total project cost, or have received appropriate licensure and certification by the date of termination of the Certificate of Need.
2. A holder of a Certificate of Need who undertook a project authorizing the offering of a new service for which there is neither construction nor enforceable capital expenditure must provide utilization data to the Agency within 30 calendar days after the termination date of the Certificate of Need. The data must demonstrate that the service became operational on or before the termination date of the Certificate of Need.
(3) Extension of Validity Period.
(a) Extensions of up to 60 calendar days per each request may be requested by a Certificate of Need holder who is approaching the end of the 18-month validity period. The holder must submit a written request to the Agency for approval at least 15 calendar days before the Certificate of Need terminates. The filing of a request does not extend the validity period of a Certificate of Need. Failure to timely file is a waiver of the right to request an extension. This request for an extension must demonstrate that good faith commencement of the project is being delayed by litigation or by governmental action or inaction with respect to regulations or permitting which precludes commencement on the project. The request must provide the Agency a detailed explanation of the problem and a plan of action to be undertaken by the holder to resolve the problem within the time frame requested.
1. Land zoning issues will be considered for extension of the Certificate of Need validity period beyond the 18 months, if the Certificate of Need holder can demonstrate that action has been initiated to obtain proper zoning for the proposed site for the facility, and that such action was timely with respect to the requirements for obtaining proper zoning.
2. Untimely filing of submission of plans and requests for local and state permits, based on the processing time required by the state and local governments for such plans and permits, will not be considered as justification for an extension beyond the 18-month period.
(b) Where the holder of a valid Certificate of Need is precluded from commencement of the project due to litigation, including appeal, or if the holder’s Certificate of Need is the subject of an appeal of a final order approving the issuance of the Certificate of Need, an extension of the validity period shall be granted for the actual amount of time of the validity period which is equivalent to the period of litigation, including appeal. The holder of a Certificate of Need shall submit a request for an extension to the Agency, in writing, not later than 15 calendar days prior to the termination date.
(c) Upon written request from the holder of a Certificate of Need received at least 15 days prior to the termination date of the Certificate of Need, and upon submission of a transfer application by the proposed transferee, the Agency will extend the validity period of the proposed transferred Certificate of Need for a period of 60 days to ensure that the Certificate of Need remains valid throughout the Agency’s timetable for review of the transfer application. Only one such request for a 60 day extension will be granted under the provisions of this subsection.
Rulemaking Authority Florida Statutes § 408.034(8), 408.15(8) FS. Law Implemented 408.040(2) FS. History-New 11-24-86, Amended 7-25-89, Formerly 10-5.018, Amended 10-8-97, 12-12-00.
Terms Used In Florida Regulations 59C-1.018
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
(a) Certificates of Need for New Construction or Renovation Projects.
1. A holder of a Certificate of Need with a project for new construction must, by the date of termination of the Certificate of Need, be deemed to have commenced continuous construction as defined in Florida Statutes § 408.032(4) For purposes of compliance, site preparation must be completed as defined below:
a. Completion of site preparation activities which include clearing of land, removal of soil, placement and compacting of fill dirt, and grading and leveling of the site for that portion of the site which will contain the foundation;
b. Foundation permit;
c. Completion of footprint of the certificated portion of the building, unless the contractor is building a hospital using the fast-track method of construction and the agreement between the contractor and the Certificate of Need holder provides for the use of that method; and,
d. Foundation forming with placement of concrete and steel which will become an integral part of the final facility to be constructed.
2. A holder of a Certificate of Need for renovation of an existing structure must, by the date of termination of the Certificate of Need, be deemed to have commenced construction. This is established by completing site preparation which is defined as having a demolition permit or building permit, having an executed owner or contractor agreement, and demonstrating proof of the commencement of demolition.
3. The Agency staff or a designated representative shall make an unannounced visit to each project site on the termination date of the Certificate of Need. The visit shall result in photographs of the site and a written report. The Certificate of Need holder may submit information for evaluation to the staff of the Agency or the designated representative on the day of the site visit. On or before 14 calendar days of receipt of the information, staff designated by the Agency shall evaluate the information and make a determination of whether or not the project has commenced construction.
a. If deemed to have commenced construction, continuous construction must be maintained. For purposes of monitoring compliance, “”continuous construction”” refers to work performed under the authority of an architect to whom the contractor is responsible and which advances the project towards completion in accordance with the project timetable and standard, acceptable construction procedures. Any return to site preparation as defined in sub-subparagraphs 59C-1.018(2)(a)1.a.-d., F.A.C., without approval, as provided in paragraphs 59C-1.021(2)(a) and (b), F.A.C., of the Agency is strictly prohibited and is deemed not to be continuous construction.
b. If deemed not to have commenced construction, the holder of the Certificate of Need shall be notified, in writing, of the determination and the right to a hearing under Florida Statutes § 120.57, by the director or his or her designee from the Agency. The Certificate of Need shall terminate by operation of law.
(b) Certificates of Need for Non-construction Projects.
1. A holder of a Certificate of Need for a non-construction project including Hospice, bed conversions and establishment of new health services, or a substantial change in such services, must provide proof of having made an enforceable capital expenditure greater than 10% percent of the total project cost, or have received appropriate licensure and certification by the date of termination of the Certificate of Need.
2. A holder of a Certificate of Need who undertook a project authorizing the offering of a new service for which there is neither construction nor enforceable capital expenditure must provide utilization data to the Agency within 30 calendar days after the termination date of the Certificate of Need. The data must demonstrate that the service became operational on or before the termination date of the Certificate of Need.
(3) Extension of Validity Period.
(a) Extensions of up to 60 calendar days per each request may be requested by a Certificate of Need holder who is approaching the end of the 18-month validity period. The holder must submit a written request to the Agency for approval at least 15 calendar days before the Certificate of Need terminates. The filing of a request does not extend the validity period of a Certificate of Need. Failure to timely file is a waiver of the right to request an extension. This request for an extension must demonstrate that good faith commencement of the project is being delayed by litigation or by governmental action or inaction with respect to regulations or permitting which precludes commencement on the project. The request must provide the Agency a detailed explanation of the problem and a plan of action to be undertaken by the holder to resolve the problem within the time frame requested.
1. Land zoning issues will be considered for extension of the Certificate of Need validity period beyond the 18 months, if the Certificate of Need holder can demonstrate that action has been initiated to obtain proper zoning for the proposed site for the facility, and that such action was timely with respect to the requirements for obtaining proper zoning.
2. Untimely filing of submission of plans and requests for local and state permits, based on the processing time required by the state and local governments for such plans and permits, will not be considered as justification for an extension beyond the 18-month period.
(b) Where the holder of a valid Certificate of Need is precluded from commencement of the project due to litigation, including appeal, or if the holder’s Certificate of Need is the subject of an appeal of a final order approving the issuance of the Certificate of Need, an extension of the validity period shall be granted for the actual amount of time of the validity period which is equivalent to the period of litigation, including appeal. The holder of a Certificate of Need shall submit a request for an extension to the Agency, in writing, not later than 15 calendar days prior to the termination date.
(c) Upon written request from the holder of a Certificate of Need received at least 15 days prior to the termination date of the Certificate of Need, and upon submission of a transfer application by the proposed transferee, the Agency will extend the validity period of the proposed transferred Certificate of Need for a period of 60 days to ensure that the Certificate of Need remains valid throughout the Agency’s timetable for review of the transfer application. Only one such request for a 60 day extension will be granted under the provisions of this subsection.
Rulemaking Authority Florida Statutes § 408.034(8), 408.15(8) FS. Law Implemented 408.040(2) FS. History-New 11-24-86, Amended 7-25-89, Formerly 10-5.018, Amended 10-8-97, 12-12-00.