North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S370 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 370
	3	+	S D
	4	+	SENATE BILL DRS45104-MG-90
	5	+
5	6
6	7
7	8		Short Title: Repeal Certificate of Need Laws. (Public)
8	9		Sponsors: Senators Sawrey, Galey, and Jarvis (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 24, 2025~~
11		-	~~S370 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45104 -MG-90
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT REPEALING NORTH CAROLINA 'S CERTIFICATE OF NEED LAWS. 2
14	15		The General Assembly of North Carolina enacts: 3
15	16		SECTION 1.(a) G.S. 6-19.1(a) reads as rewritten: 4
16	17		"(a) In any civil action, other than an adjudication for the purpose of establishing or fixing 5
17	18		a rate, or a disciplinary action by a licensing board, brought by the State or brought by a party 6
18	19		who is contesting State action pursuant to G.S. 150B-43 or any other appropriate provisions of 7
19	20		law, unless the prevailing party is the State, the court may, in its discretion, allow the prevailing 8
20	21		party to recover reasonable attorney's fees, including attorney's fees applicable to the 9
21	22		administrative review portion of the case, in contested cases arising under Article 3 of Chapter 10
22	23		150B, to be taxed as court costs against the appropriate agency if: 11
23	24		(1) The court finds that the agency acted without substantial justification in 12
24	25		pressing its claim against the party; and 13
25	26		(2) The court finds that there are no special circumstances that would make the 14
26	27		award of attorney's fees unjust. The party shall petition for the attorney's fees 15
27	28		within 30 days following final disposition of the case. The petition shall be 16
28	29		supported by an affidavit setting forth the basis for the request. 17
29	30		Nothing in this section shall be deemed to authorize the assessment of attorney's fees for the 18
30	31		administrative review portion of the case in contested cases arising under Article 9 of Chapter 19
31	32		131E of the General Statutes. 20
32	33		Nothing in this section grants permission to bring an action against an agency otherwise 21
33	34		immune from suit or gives a right to bring an action to a party who otherwise lacks standing to 22
34	35		bring the action. 23
35	36		Any attorney's fees assessed against an agency under this section shall be charged against the 24
36	37		operating expenses of the agency and shall not be reimbursed from any other source." 25
37	38		SECTION 1.(b) Subsection (a) of this section applies to contested cases arising on 26
38	39		or after January 1, 2026. 27
39	40		SECTION 2.(a) G.S. 7A-29(a) reads as rewritten: 28
40	41		"(a) From any final order or decision of the North Carolina Utilities Commission not 29
41	42		governed by subsection (b) of this section, the Department of Health and Human Services under 30
42	43		G.S. 131E-188(b), the North Carolina Industrial Commission, the North Carolina State Bar under 31
43	44		G.S. 84-28, the Property Tax Commission under G.S. 105-290 and G.S. 105-342, the 32
44	45		Commissioner of Insurance under G.S. 58-2-80, the State Board of Elections under 33
45	46		G.S. 163-127.6, the Office of Administrative Hearings under G.S. 126-34.02, or the Secretary of 34
46	47		Environmental Quality under G.S. 104E-6.2 or G.S. 130A-293, appeal as of right lies directly to 35
47		-	the Court of Appeals." 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 370-First Edition
	48	+	the Court of Appeals." 36
	49	+	FILED SENATE
	50	+	Mar 20, 2025
	51	+	S.B. 370
	52	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	53	+	Page 2 DRS45104-MG-90
49	54		SECTION 2.(b) Subsection (a) of this section applies to appeals arising on or after 1
50	55		January 1, 2026. 2
51	56		SECTION 3. G.S. 58-50-61(a) reads as rewritten: 3
52	57		"(a) Definitions. – As used in this section, in G.S. 58-50-62, and in Part 4 of this Article, 4
53	58		the term: 5
54	59		… 6
55	60		(7a) "Health care facility" means a hospital; long-term care hospital; psychiatric 7
56	61		facility; rehabilitation facility; nursing home facility; adult care home; kidney 8
57	62		disease treatment center, including freestanding hemodialysis units; 9
58	63		intermediate care facility for individuals with intellectual disabilities; home 10
59	64		health agency office; chemical dependency treatment facility; diagnostic 11
60	65		center; hospice office, hospice inpatient facility, or hospice residential care 12
61	66		facility; or ambulatory surgical facility. 13
62	67		(8) "Health care provider" means any person who is licensed, registered, or 14
63	68		certified under Chapter 90 of the General Statutes or the laws of another state 15
64	69		to provide health care services in the ordinary care of business or practice or 16
65	70		a profession or in an approved education or training program; a health care 17
66	71		facility as defined in G.S. 131E-176(9b) this section or the laws of another 18
67	72		state to operate as a health care facility; or a pharmacy. 19
68	73		…." 20
69	74		SECTION 4. G.S. 58-55-35(a) reads as rewritten: 21
70	75		"(a) Whenever long-term care insurance provides coverage for the facilities, services, or 22
71	76		physical or mental conditions listed below, unless otherwise defined in the policy and certificate, 23
72	77		and approved by the Commissioner, the facilities, services, or conditions have the following 24
73	78		definitions: 25
74	79		… 26
75	80		(10) Hospice. – As defined in G.S. 131E-176(13a).Any coordinated program of 27
76	81		home care with provision for inpatient care for terminally ill patients and their 28
77	82		families. This care is provided by a medically directed interdisciplinary team 29
78	83		directly or through an agreement under the direction of an identifiable hospice 30
79	84		administration. A hospice program of care provides palliative and supportive 31
80	85		medical and other health services to meet the physical, psychological, social, 32
81	86		spiritual, and special needs of patients and their families, which are 33
82	87		experienced during the final stages of terminal illness and during dying and 34
83	88		bereavement. 35
84	89		(11) Intermediate care facility for individuals with intellectual disabilities. – As 36
85	90		defined in G.S. 131E-176(14a).Facilities licensed pursuant to Article 2 of 37
86	91		Chapter 122C of the General Statutes for the purpose of providing health and 38
87	92		habilitative services based on the developmental model and principles of 39
88	93		normalization for individuals with intellectual disabilities, autism, cerebral 40
89	94		palsy, epilepsy, or related conditions. 41
90	95		…." 42
91	96		SECTION 5. G.S. 90-21.82A(a) reads as rewritten: 43
92	97		"(a) The following definitions apply in this section: 44
93	98		(1) Abortion clinic. – As defined in G.S. 131E-153.1. 45
94	99		(2) Ambulatory surgical facility. – As defined in G.S. 131E-176.A facility 46
95	100		licensed under Part 4 of Article 6 of Chapter 131E of the General Statutes. 47
96	101		(3) Hospital. – As defined in G.S. 131E-176.A facility licensed under Article 5 of 48
97	102		Chapter 131E of the General Statutes." 49
98	103		SECTION 6. G.S. 90-414.4(a1)(1) reads as rewritten: 50 General Assembly Of North Carolina Session 2025
99		-	~~Senate Bill 370-First Edition~~ Page 3
	104	+	DRS45104-MG-90 Page 3
100	105		"(1) The following providers of Medicaid services licensed to operate in the State 1
101	106		that have an electronic health record system shall begin submitting, at a 2
102	107		minimum, demographic and clinical data by June 1, 2018: 3
103	108		a. Hospitals as defined in G.S. 131E-176(13).Hospitals, defined for the 4
104	109		purposes of this section as public or private institutions which are 5
105	110		primarily engaged in providing to inpatients, by or under supervision 6
106	111		of physicians, diagnostic services and therapeutic services for medical 7
107	112		diagnosis, treatment, and care of injured, disabled, or sick persons, or 8
108	113		rehabilitation services for the rehabilitation of injured, disabled, or 9
109	114		sick persons. The term includes all facilities licensed pursuant to 10
110	115		G.S. 131E-77, except long-term care hospitals. 11
111	116		b. Physicians licensed to practice under Article 1 of Chapter 90 of the 12
112	117		General Statutes, except for licensed physicians whose primary area 13
113	118		of practice is psychiatry. 14
114	119		c. Physician assistants as defined in 21 NCAC 32S.0201.21 NCAC 32S 15
115	120		.0201. 16
116	121		d. Nurse practitioners as defined in 21 NCAC 36.0801.21 NCAC 36 17
117	122		.0801." 18
118	123		SECTION 7. G.S. 90-414.4(b)(1) reads as rewritten: 19
119	124		"(1) Each hospital, as defined in G.S. 131E-176(13) that has an electronic health 20
120	125		record system.hospital." 21
121	126		SECTION 8. G.S. 113A-12(3)e. reads as rewritten: 22
122	127		"e. A health care facility financed pursuant to Article 1 of Chapter 131A 23
123	128		of the General Statutes or receiving a certificate of need under Article 24
124	129		9 of Chapter 131E of the General Statutes." 25
125	130		SECTION 9. G.S. 122C-23.1(e) reads as rewritten: 26
126	131		"(e) As used in this section, "residential treatment facility" means a "residential facility" 27
127	132		as defined in and licensed under this Chapter, but not subject to Certificate of Need requirements 28
128	133		under Article 9 of Chapter 131E of the General Statutes.Chapter." 29
129	134		SECTION 10. G.S. 131D-2.4(a) reads as rewritten: 30
130	135		"(a) Licensure. – Except for those facilities exempt under G.S. 131D-2.3, the Department 31
131	136		of Health and Human Services shall inspect and license all adult care homes. The Department 32
132	137		shall issue a license for a facility not currently licensed as an adult care home for a period of six 33
133	138		months. If the licensee demonstrates substantial compliance with Articles 1 and 3 of this Chapter 34
134	139		and rules adopted thereunder, the Department shall issue a license for the balance of the calendar 35
135	140		year. A facility not currently licensed as an adult care home that was licensed as an adult care 36
136	141		home within the preceding 12 months is considered an existing health service facility for the 37
137	142		purposes of G.S. 131E-184(a)(8)." 38
138	143		SECTION 11. G.S. 131E-13(a)(1) reads as rewritten: 39
139	144		"(1) The corporation shall continue to provide the same or similar clinical hospital 40
140	145		services to its patients in medical-surgery, obstetrics, pediatrics, outpatient 41
141	146		and emergency treatment, including emergency services for the indigent, that 42
142	147		the hospital facility provided prior to the lease, sale, or conveyance. These 43
143	148		services may be terminated only as prescribed by Certificate of Need Law 44
144	149		prescribed in Article 9 of Chapter 131E of the General Statutes, or, if 45
145	150		Certificate of Need Law is inapplicable, by review procedure designed to 46
146	151		guarantee public participation pursuant to rules adopted by the Secretary of 47
147	152		the Department of Health and Human Services." 48
148	153		SECTION 12. G.S. 131E-84(a1) reads as rewritten: 49
149	154		"(a1) In the event of a declaration of a state of emergency by the Governor in accordance 50
150	155		with Article 1A of Chapter 166A of the General Statutes, a declaration of a national emergency 51 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~Senate Bill 370-First Edition~~
	156	+	Page 4 DRS45104-MG-90
152	157		by the President of the United States, a declaration of a public health emergency by the Secretary 1
153	158		of the United States Department of Health and Human Services; or to the extent necessary to 2
154	159		allow for consistency with any temporary waiver or modification issued by the Secretary of the 3
155	160		United States Department of Health and Human Services or the Centers for Medicare and 4
156	161		Medicaid Services under section 1135 or 1812(f) of the Social Security Act; or when the Division 5
157	162		of Health Service Regulation determines the existence of an emergency that poses a risk to the 6
158	163		health or safety of patients, the Division of Health Service Regulation may do either or both of 7
159	164		the following: 8
160	165		(1) Temporarily temporarily waive any rules of the Commission pertaining to 9
161	166		hospitals. 10
162	167		(2) Notwithstanding G.S. 131E-183, allow a hospital to temporarily increase its 11
163	168		bed capacity." 12
164	169		SECTION 13. G.S. 131E-136(4) reads as rewritten: 13
165	170		"(4) "Home health agency" means a home care agency which is certified to receive 14
166	171		Medicare and Medicaid reimbursement for providing nursing care, therapy, 15
167	172		medical social services, and home health aide services on a part-time, 16
168	173		intermittent basis as set out in G.S. 131E-176(12), and is thereby also subject 17
169	174		to Article 9 of Chapter 131E.basis." 18
170	175		SECTION 14. The following laws are repealed: 19
171	176		(1) Article 9 of Chapter 131E of the General Statutes. 20
172	177		(2) G.S. 130A-45.02(i). 21
173	178		(3) G.S. 131E-78.3(c). 22
174	179		(4) G.S. 131E-146(3), as enacted by Section 3.2(b) of S.L. 2023-7. 23
175	180		(5) G.S. 131E-147.5, as enacted by Section 3.2(c) of S.L. 2023-7. 24
176	181		(6) G.S. 143B-1292. 25
177	182		(7) G.S. 150B-2(8a)k. 26
178	183		(8) G.S. 150B-21.1(a)(6). 27
179	184		SECTION 15. This act becomes effective January 1, 2026. 28