An Act
ENROLLED HOUSE
BILL NO. 3867 By: Boatman of the House
and
Hall of the Senate
An Act relating to psychiatric and chemical
dependency service; amending 63 O.S. 2021, Section 1-
880.6, which relates to psychiatric and chemical
dependency service requirements; creating exception;
and providing an effective da te.
SUBJECT: Psychiatric and chemical dependency service
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 1-880.6, is
amended to read as follows:
Section 1-880.6 A. Every entity desiring to establish a new
psychiatric or chemical dependency service or to acquire, lease or
expand an existing service whether through construction or
conversion of facili ties, shall make application to the State
Department of Health for a certificate of need in such form and
accompanied by such information, including a complete list of
stockholders, partners, and owners, and any other in formation, as
the Board shall prescr ibe.
B. The provisions of the Psy chiatric and Chemical Dependency
Facility Certificate of Need Act shall not apply to any hos pital as
defined by Section 1 -710 of this title licensed by the State
Department of Health on or before December 31, 1990, which has:
1. Construction cost overruns or capital expenditures for
completion of originally approved beds or completion of previou sly
constructed and shelled space arising out of and based only upon the ENR. H. B. NO. 3867 Page 2
original certificate of need issued by the Commissioner for said
construction, when such co nstruction costs or capital expe nditures
do not or will not increase the approved number of beds, allow
conversion of bed use shall not be deemed new construction or
increase pricing str ucture for treatment or services; o r
2. Negotiated a contract with an agency of this state, the
federal government or a Native American nation duly recognized by
the federal government that specifies the number of beds and their
uses. A hospital provided for by paragraph 2 of this subsection
shall be exempt from the certif icate of need required by the
Psychiatric and Chemical Dependency Facility Certificate of Ne ed Act
for the purposes specified in the contract. This exemption shall
not apply to Medicare or Medicaid contracts or contracts for
inpatient services for childre n or adolescents.
C. The provisions of the Psychiatric and Chemical Dependency
Facility Certificate of Need Act shall not apply to a facility
constructed or operated by the Univers ity Hospitals Authority or
University Hospitals Trust, or by a nonprofit entity which has
entered into a joint operating agreement with the University
Hospitals Trust or a subsidiary of such an entity.
D. The Commissioner of Health is authorized to grant a
certificate of need if the entity applying for th e certificate has
filed a notice on a form prescribed by the State Department of
Health which shall include, but not be limited to:
1. The name and location of the entity;
2. The name and address of each pers on having an ownership
interest in the entit y;
3. The nature of the a cquisition, expansion, additi on or
conversion, whether by sale, lease or o ther arrangement;
4. The parties to the sale, lease or other arrangement;
5. The size of the acquisition, expa nsion, addition or
conversion;
6. The approximate cost of the acquisi tion, expansion, addition
or conversion; and
7. The projected date of com pletion. ENR. H. B. NO. 3867 Page 3
D. E. The Commissioner of Health shall be notified, on a form
prescribed by the State Department of He alth, of the following:
1. Any decrease in the number of beds of a ho spital, facility
or hospital unit; and
2. Any change in the designation for a continuum of care in
psychiatric or chemical dependency treatment.
E. F. Psychiatric and chemical dependen cy service for which a
certificate of need is required shall include:
1. Any capital investment or lease of Five Hundred Thousand
Dollars ($500,000.00) or more, including predevelopment activities
such as arrangements and commitments for financing, archit ectural
designs, plans, working dr awings, specifications and site
acquisition; provided, that this dollar limit shall not apply to a
change in bed capacity;
2. Acquisition of a facility by purchase, lease, donation or
through transfer of stock or corporat e merger. If the Department
finds that a proposed acquisition is cons istent with the criteria
and standards for review of such projects, then the Dep artment shall
issue a certificate of need. If the Department finds that the
proposed acquisition is not c onsistent with the criteria, the
project will be referred to the Commi ssioner of Health for final
determination. The Department 's determination to ap prove the
proposed acquisition or to refer it to the Commissioner shall be
made no later than fifteen (15) days following the day the
application is determined to be complete a nd review ready, or the
proposed acquisition shall be automatically approved. P roposed
acquisitions shall be reviewed against standards adopted by the
Department which relate only to th e acquirer's capability to operat e
a facility; or
3. Inpatient psychi atric and chemical dependency services for
persons under eighteen (18) years of age offered or provided by a
hospital or other health care facility, including but not limited to
any conversion of existing beds, any inc rease in bed capacity and
any new beds for the purpose of offering or providing said services,
regardless of any capit al or other costs of the project.
a. The State Board of Health shall provide by rule for
the temporary emergency use of beds ordinarily u sed ENR. H. B. NO. 3867 Page 4
for adult patients as psychiatric o r chemical
dependency beds for children or adolescents.
b. Any application to es tablish or operate inpatient
psychiatric or drug or alcohol treatment services for
persons under eighteen (18) years of age shall includ e
the establishment, operation and maint enance of a
community-based service program or a day treatment
program, as those terms are defined by Section 1101 of
Title 10 1-1-105 of Title 10A of the Oklahoma
Statutes, as an integr al part of the total project.
F. G. Promptly upon receipt of any such application, the
Department shall examine and transmit the application to reviewers
it may select to determine whether the application is complete.
Once the Department has determined t hat the application is comple te,
it shall notify affected parties and other reviewing bodies and
cause a thorough investigation to be made of the need for and
appropriateness of such expanded psychiatric or chemical dependency
service. The investigation m ade pursuant to an applicatio n for a
certificate of need shall include the following:
1. The adequacy of psychiatric and chemical dependency services
in relation to an optimal target ratio of psychiatric or chemical
dependency beds to the population;
2. The availability of service s which may serve as alternatives
or substitutes;
3. The adequacy of financia l resources for the new or expanded
services and for the continued operation thereof;
4. The availability of sufficient manpower to properly staff
and operate the proposed new or expanded service; and
5. Any other matter which the Department deems approp riate.
G. H. Each application for a certificate of need applied for
pursuant to the provisions of this section except for those
applications filed by state agencies shall be accompanied by an
application fee in an amount established by the Department.
SECTION 2. This act shall become effective November 1, 2022.
ENR. H. B. NO. 3867 Page 5
Passed the House of Representatives the 15th day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the 25th day of April, 2022.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Okla homa
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________