Under existing law, the Court of Civil Appeals has ruled that a certificate of need (CON) issued to a business entity not specified in the law for a health care facility or health maintenance organization, or issued for an institutional health service, is generally not transferable by sale, lease, or other transaction.
This bill would specify that the transfer of a certificate of need by lease issued to a limited liability company or other legal entity by lease, sale, or other transaction involving an existing health care facility, health maintenance organization, or institutional health service does not require a new or additional CON.
The bill would apply retroactively when an amendment to the CON law was enacted which had previously been interpreted as authorizing the transfers without a new CON.
Delivered to Governor at 4:17 p.m. on May 7, 2013
Assigned Act No. 2013-192.
Signature Requested
Enrolled
Passed Second House
Poole abstained from voting due to a conflict of interest
Motion to Read a Third Time and Pass adopted Roll Call 1102
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the House of Representatives committee on Health
Motion to Read a Third Time and Pass adopted Roll Call 166
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the Senate committee on Judiciary
Source: Alabama Legislature