RELATING TO AMENDING SECTION 323D-54, HAWAII REVISED STATUTES, TO EXEMPT THE DEPARTMENT OF HEALTH FROM CERTIFICATE OF NEED REQUIREMENTS.

HB1104

HOUSE OF REPRESENTATIVES

H.B. NO.

1104

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO AMENDING SECTION 323D-54, HAWAII REVISED
STATUTES, TO EXEMPT THE DEPARTMENT OF HEALTH FROM CERTIFICATE OF NEED
REQUIREMENTS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
Section
323D-54, Hawaii Revised Statutes, is amended
to read as
follows:

����
"
�323D-54
�
Exemptions from certificate of need requirements.
�
Nothing in this part or rules with respect to
the requirement for certificates of need applies to:

����
(1)
�
Offices
of physicians, dentists, or other practitioners of the healing arts in private practice
as distinguished from organized ambulatory health care facilities, except in any
case of purchase or acquisition of equipment attendant to the delivery of health
care service and the instruction or supervision for any private office or clinic
involving a total expenditure in excess of the expenditure minimum;

����
(2)
�
Laboratories, as defined in section 321-11(12),
except in any case of purchase or acquisition of equipment attendant to the delivery
of health care service and the instruction or supervision for any laboratory involving
a total expenditure in excess of the expenditure minimum;

����
(3)
�
Dispensaries and first aid stations located within
business or industrial establishments and maintained solely for the use of employees;
provided [
such
]
those
facilities do not regularly provide inpatient
or resident beds for patients or employees on a daily twenty-four-hour basis;

����
(4)
�
Dispensaries or infirmaries in correctional or
educational facilities;

����
(5)
�
Dwelling establishments, such as hotels, motels,
and rooming or boarding houses that do not regularly provide health care facilities
or health care services;

����
(6)
�
Any home or institution conducted only for those
who, pursuant to the teachings, faith, or belief of any group, depend for healing
upon prayer or other spiritual means;

����
(7)
�
Dental clinics;

����
(8
)
�
Nonpatient areas of care facilities such as parking
garages and administrative offices;

����
(9
)
�
Bed changes that involve ten per cent or ten beds
of existing licensed bed types, whichever is less, of a facility's total existing
licensed beds within a two-year period;

���
(10)
�
Projects that are wholly dedicated to meeting the
State's obligations under court orders, including consent decrees, that have already
determined that need for the projects exists;

���
(11)
�
Replacement of existing equipment with its modern-day
equivalent;

���
(12)
�
Primary care clinics under the expenditure thresholds
referenced in section 323D-2;

���
(13)
�
Equipment and services related to that equipment,
that are primarily invented and used for research purposes as opposed to usual and
customary diagnostic and therapeutic care;

���
(14)
�
Capital expenditures that are required:

���������
(A)
�
To
eliminate or prevent
imminent safety hazards as defined by federal, state, or county fire, building,
or life safety codes or regulations;

���������
(B)
�
To
comply with state licensure standards;

���������
(C)
�
To comply with accreditation standards, compliance
with which is required to receive reimbursements under Title XVIII of the Social
Security Act or payments under a state plan for medical assistance approved under
Title XIX of [
such
]
that
Act;

���
(15)
�
Extended care adult residential care homes and
assisted living facilities; [
or
]

���
(16)
�
Other facilities or services that the agency through
the statewide council chooses to exempt, by rules pursuant to section 323D-62[
.
]
;
or

���
(17)
�
Health care facilities operated or services
provided by the department of health.
"

����
SECTION
2.
�
Statutory material to be repealed is
bracketed

and stricken.
�
New statutory material is underscored.

����
SECTION 3.
�

This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

DOH; SHPDA; Certificate of Need; Exemption

Description:

Amends section 323D-54, HRS, to exempt the Department of
Health from the State Health Planning and Development Agency
'
s certificate of need
requirements.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.