                                 CODE OF VIRGINIA

APPLICATION OF ARTICLE (§ 32.1-102.11)

A. Every project of an existing or proposed medical care facility described in
subsection A of &#xA7; 32.1-102.1:3 shall be subject to all provisions of this
article unless, with respect to such project, the owner or operator of an
existing medical care facility or the developer of a proposed medical care
facility (i) has, by February 1, 1992, purchased or leased equipment subject to
registration pursuant to former &#xA7; 32.1-102.3:4, (ii) has, by February 1,
1992, initiated construction requiring a capital expenditure exceeding one
million dollars, or (iii) has made or contracted to make or otherwise legally
obligated to make, during the three years ending February 1, 1992, preliminary
expenditures of $350,000 or more for a formal plan of construction of the
specific project, including expenditures for site acquisition, designs,
preliminary or working drawings, construction documents, or other items
essential to the construction of the specific project.
			Any project exempted pursuant to subdivisions (ii) and (iii) of this
subsection shall be limited to such construction, services, and equipment as
specifically identified in the formal plan of construction which shall have
existed and been formally committed to by February 1, 1992. Further, the
equipment to be exempted pursuant to subdivisions (ii) and (iii) shall be
limited to the number of units and any types of medical equipment, in the case
of medical equipment intended to provide any services included in subdivision B
6 of &#xA7; 32.1-102.1:3, as are specifically identified in such plan and, in
the case of all other equipment, such equipment as is appropriate for the
construction and services included in such plan.
			None of the exemptions provided in this subsection shall be applicable to
projects which required a certificate of public need pursuant to this article on
January 1, 1992.

B. Any medical care facility or entity claiming to meet one of the conditions
set forth in subsection A of this section shall file a completed application for
an exemption from the provisions of this article with the Commissioner by August
1, 1992. Forms for such application shall be made available by the Commissioner
no later than April 1, 1992. The Commissioner may deny an exemption if the
application is not complete on August 1, 1992, and the medical care facility or
entity has not filed a completed application within forty-five days after notice
of deficiency in the filing of the completed application. After receiving a
completed application, the Commissioner shall determine whether the project has
met one of the criteria for an exemption and is, therefore, exempt or has not
met any of the criteria for an exemption and is, therefore, subject to all
provisions of this article and shall notify the medical care facility or entity
of his determination within sixty days of the date of filing of the completed
application. If it is determined that an exemption exists for only a portion of
a project, the Commissioner may approve an exemption for that portion and any
appeal may be limited to the part of the decision with which the appellant
disagrees without affecting the remainder of the decision. The
Commissioner&#8217;s determination shall be made in accordance with the
provisions of the Administrative Process Act (&#xA7; 2.2-4000 et seq.), except
that parties to the case shall include only those parties specified in &#xA7;
32.1-102.6.

C. For the purposes of this section:
			&#8220;Formal plan of construction&#8221; means documentary evidence
indicating that the facility, the owner or operator of the facility, or the
developer of a proposed facility was formally committed to the project by
February 1, 1992, and describing the specific project in sufficient detail to
reasonably define and confirm the scope of the project including estimated cost,
intended location, any clinical health services to be involved and any types of
equipment to be purchased. Such documentary evidence shall include designs,
preliminary or working drawings, construction documents or other documents which
have been used to explicitly define and confirm the scope of the project for the
purposes of seeking architectural or construction plans or capital to the extent
that such capital was committed or agreed to be provided for such project prior
to February 1, 1992.
			&#8220;Initiated construction&#8221; means an owner or operator of an
existing facility or the developer of a proposed facility can present evidence
for a specific project that (i) a construction contract has been executed; (ii)
if applicable, short-term financing has been completed; (iii) if applicable, a
commitment for long-term financing has been obtained; and (iv) if the project is
for construction of a new facility or expansion of an existing facility,
predevelopment site work and building foundations have been completed.
			&#8220;Leased&#8221; means that the owner or operator of an existing medical
care facility or the developer of a proposed facility has a legally binding
commitment to lease the equipment pursuant to an agreement providing for fixed,
periodic payments commencing no later than June 30, 1992, including a
lease-purchase agreement in which the owner or operator of the facility or
developer has an option to purchase the equipment for less than fair market
value upon conclusion of the lease or an installment sale agreement with fixed
periodic payments commencing no later than June 30, 1992.
			&#8220;Purchased&#8221; means that the equipment has been acquired by the
owner or operator of an existing medical care facility or the developer of a
proposed medical care facility, or the owner or operator of the facility or the
developer can present evidence of a legal obligation to acquire the equipment in
the form of an executed contract or appropriately signed order or requisition
and payment has been made in full by June 30, 1992.

HISTORY: 1982, c. 388; 1986, c. 615; 1992, c. 612; 2020, c. 1271.