(A) For the
purposes of this rule, "holder" means the applicant to whom a certificate of
need was granted. In addition to compliance with validity requirements
established by any other rule of this chapter, to maintain the validity of a
certificate of need, the holder shall:
(1)
Obligate the capital expenditure, within the meaning of paragraph (A)(1)(a) of
this rule, within twenty-four months after the date of mailing of the notice
that the certificate was granted or, if the grant or denial of the certificate
is appealed under section
3702.60 of the Revised Code,
within twenty-four months after the issuance of an order granting the
certificate, which order is not subject to further appeal.
(a) For the purpose of this rule, "to
obligate" means:
(i) For a project that
primarily involves construction and is to be financed through external
borrowing of funds, to secure financial commitment for the stated purpose of
developing the project and commence construction that continues uninterrupted
except for interruptions or delays that are unavoidable due to reason's beyond
the person's control, including labor strikes, natural disasters, material
shortages, or comparable events.
(ii) For a project that primarily involves
construction and is to be financed internally, to receive formal approval from
the holder's board of directors or trustees, or other governing authority to
commit specified funds for the implementation of the project and commence
construction that continues uninterrupted except for unavoidable interruptions
or delay due to reason's beyond the person's control, including labor strikes,
natural disasters, material shortages, or comparable events
(iii) For a project that involves no capital
expenditure or only minor renovations to existing structures, to provide the
long-term care service by the means specified in the approved application for
the certificate.
(iv) For a project
that primarily involves leasing a building or space that requires only minor
renovations to the existing space, to execute a lease and provide the long-term
care service by the means specified in the approved application for the
certificate.
(v) For a project that
primarily involves leasing a building or space that has not been constructed or
requires substantial renovations to existing space, to commence construction
for the purpose of implementing the reviewable activity that continues
uninterrupted except for interruptions or delays that are unavoidable due to
reasons beyond the person's control, including labor strikes, natural
disasters, material shortages, or comparable events.
(b) For the purposes of this rule, "commence
construction" means:
(i) For a project
involving construction, the placement of any structural foundation element that
becomes an integral part of the structure. A structural foundation element
includes, but is not limited to, footings, piers, grade beams and
infrastructure items such as pilings and caissons. The acts of surveying,
staking, soil testing, demolition of existing structures, delivery of
materials, establishment or connection of utility services, elimination or
removal of a safety or sanitary hazard from the site and site preparation,
including site grading, site filling or clearing, are not considered
commencement of construction.
(ii)
For projects involving exclusively renovations to an existing structure, the
modification or removal of an integral part of the structure or portion
thereof. Such modification or removal includes, but is not limited to, the
modification or removal of walls and ceilings, large surface replastering,
major plumbing projects, and window replacement. Minor repair and maintenance
activities that minimally disrupt building components, such as minor electrical
or plumbing activities, are not considered commencement of
construction.
(c) For
the purpose of this rule, "provide the long-term care service" means, in the
case of a project that affects the number of long-term care beds at an existing
long-term care facility, to obtain a license or certification specifying the
appropriate bed capacity.
(d) The
twenty-four month period specified in paragraph (A)(1) of this rule shall not
be extended by any means, including the granting of a subsequent or replacement
certificate of need.
(2)
After obligating, maintain reasonable progress towards completion of the
project. Reasonable progress includes, but is not limited to:
(a) When the holder maintains uninterrupted
progress except for delays that are unavoidable due to reasons beyond the
holder's control; or
(b) When the
holder provides reasonable assurance that it will provide the longterm care
service specified in the approved application for the certificate by the
projected completion date approved by the director.
(3) Submit all documents required by
paragraph (B) of this rule for monitoring implementation of the reviewable
activity in a timely manner.
(4)
Not transfer the certificate, within the meaning of section
3702.523 of the Revised
Code.
(5) Conduct the reviewable
activity in substantial accordance with the approved application. A reviewable
activity shall not be determined to be not in substantial accordance with the
certificate of need solely because of either of the following:
(a) A decrease in bed capacity; or
(b) A change in the owner or operator of the
facility unless any of the circumstances specified in division (B) of section
3702.59 of the Revised Code
apply to the new owner or operator.
(6) Conduct the reviewable activity at the
site specified in the approved application.
(7) Not expend more than one hundred ten per
cent of the maximum capital expenditure stated in the certificate.
(a) A civil monetary penalty may be imposed
upon a holder if the more than one hundred ten per cent of the maximum capital
expenditure stated in the certificate is expended.
(b) The penalty imposed shall equal the
amount of the application fee paid for the approved certificate of need plus an
amount equal to the expenditure overrun above one hundred
ten per cent of the maximum capital
expenditure stated in the certificate multiplied by 0.015.
(c) The director shall notify the holder of
the certificate of need of the penalty proposed under this paragraph by
certified mail.
(d) The holder of
the certificate of need may appeal to the director in writing within thirty
days of the date the director mailed the notice of the penalty in accordance
with Chapter 119. of the Revised Code.
(e) The holder of the certificate of need may
choose to pay the penalty proposed under this paragraph within thirty days of
the date the director mailed the notice in lieu of an appeal.