Okla. Stat. tit. 63, § 63-1-852

Requirements - Exemptions.

A. Every entity desiring to establish a new long-term care

facility, to expand an existing facility whether through

construction or conversion of facilities, or to acquire an existing

long-term care facility shall make application to the State

Department of Health for a certificate of need. The application for

a certificate of need shall be in such form as the State

Commissioner of Health shall prescribe.

B. A certificate of need shall be required for:

1. Any capital investment or lease of One Million Dollars

($1,000,000.00) or more, including predevelopment activities such as

arrangements and commitments for financing, architectural designs,

plans, working drawings, specifications, and site acquisition;

provided, that this dollar limit shall not apply to a change in bed

capacity;

2. Acquisition of the ownership or operation of a facility

whether by purchase, lease, donation, transfer of stock or interest,

management contract, corporate merger, assignment, or through

foreclosure; and

3. An increase in licensed beds, whether through establishment

of a new facility or expansion of an existing facility.

C. The Department within fifteen (15) days after receipt of an

application, shall issue an exemption from certificate of need

requirements upon written request and demonstration that applicable

exemption criteria have been met, for any of the following

activities:

1. An increase of no more than ten beds or ten percent (10%) of

the facility’s licensed beds, whichever is greater, per calendar

year if:

a. the total capital cost of the increase is less than

One Million Dollars ($1,000,000.00), and

Oklahoma Statutes - Title 63. Public Health and Safety Page 496

b. the facility’s occupancy rate averaged ninety-three

percent (93%) or more during the twelve (12) months

preceding the filing of the exemption request;

2. Construction of a long-term care facility to replace or

relocate all or part of the licensed bed capacity of an existing

facility if:

a. the project involves no increase in licensed beds;

b. the facility shall be constructed no farther than

three (3) miles for rural areas and seven and one-half

(7 1/2) miles for urban areas, as defined by the

Standard Metropolitan Statistical Area (SMSA), from

the facility it is replacing or relocating, and

c. a plan for the use of the facility to be replaced or

relocated is provided that ensures continuity of

services; and

3. A management agreement if:

a. the management entity discloses all persons with

controlling interest in the management entity and

discloses all experience in long-term care facility

management or operation in any state during the

preceding thirty-six (36) months,

b. the management entity and any person with controlling

interest if the management entity has less than

thirty-six (36) months experience in management or

operation of facilities, does not have a history of

noncompliance, and

c. the licensed entity remains responsible for facility

operation, financial performance, staffing and

delivery of resident services required under the

Nursing Home Care Act.

D. A certificate of need shall not be required for:

1. Any changes of ownership resulting from the operation of

law, including but not limited to divorce, probate, reversions and

bankruptcy if the transfer of interest is to any already existing

stockholder or person or entity listed on the license application

disclosure statement. This shall also include cancellations and

expirations of leases. Operational law ownership changes shall be

reported to the Department within five (5) working days of the

change;

2. Ownership changes for estate planning purposes, treasury

stock purchases, and transfers between existing owners and/or family

members; increases in the amount of common stock or partnership

interest for any individual who already owns fifty percent (50%) of
irations of leases. Operational law ownership changes shall be

reported to the Department within five (5) working days of the

change;

2. Ownership changes for estate planning purposes, treasury

stock purchases, and transfers between existing owners and/or family

members; increases in the amount of common stock or partnership

interest for any individual who already owns fifty percent (50%) of

the common stock or corporate entity involved or controls fifty

percent (50%) or more of the interest in the partnership involved;

and

Oklahoma Statutes - Title 63. Public Health and Safety Page 497

3. New purchases of common stock or partnership interest by any

legal entity if such new purchaser will own, in total, less than

fifty percent (50%) of the corporate entity involved or partnership

involved.

E. All applicants for the issuance of a certificate of need, at

such time and in such manner as required by the Department, shall

file:

1. A disclosure statement with their applications unless the

applicant is a publicly held company required to file periodic

reports under the Securities and Exchange Act of 1934, or a wholly

owned subsidiary of a publicly held company. In such case, the

applicant shall not be required to submit a disclosure statement,

but shall submit the most recent annual and quarterly reports

required by the Securities and Exchange Commission, which provide

information regarding legal proceedings in which the applicant has

been involved;

2. Copies of residents council minutes and family council

minutes, if any, and the facility's written response to the

councils' requests or grievances, for the three (3) months prior to

the date of application, for each of the applicant's current

holdings in the State of Oklahoma; and

3. Such other relevant information required by the Department

pursuant to the Long-term Care Certificate of Need Act that relates

to the competency, reliability, or responsibility of the applicant

and affiliated persons.

F. An application for a certificate of need shall be signed

under oath by the applicant.

G. Promptly upon receipt of any such application, the

Department shall examine and transmit the application to reviewing

bodies selected by the Department to assist the Department in

determining whether the application is complete. Once the

Department has determined that the application is complete, it shall

notify the affected parties and other reviewing bodies and cause a

thorough investigation to be made of the need for and

appropriateness of the new or any long-term care service

acquisition, expansion, or establishment of a new facility.

H. Except as provided by Section 1-853.1 of this title, the

investigation made pursuant to an application for a certificate of

need shall include the following:

1. The adequacy of long-term care facilities in relation to an

optimal target ratio of long-term care beds per thousand persons

seventy-five (75) years of age or older in the state;

2. The availability of long-term care which may serve as

alternatives or substitutes;

3. The adequacy of financial resources for the acquisition,

expansion, or establishment of a new long-term care facility and for

the continued operation thereof;

Oklahoma Statutes - Title 63. Public Health and Safety Page 498

4. The availability of sufficient staff to properly operate the

proposed acquisition, expansion, or establishment of a new long-term

care facility;

5. The record of the applicant's current and prior ownership,

operation and management of similar facilities in this state and in

any other state. The investigation of such record shall include,

but not be limited to, inquiry to the State Long-Term Care Ombudsman

Office, the state Medicaid Fraud Control Unit, and the state

licensure and certification agency;

6. Review of minutes of family councils and residents councils,

and the facilities' responses, from each of the applicant's holdings

in Oklahoma; and
state and in

any other state. The investigation of such record shall include,

but not be limited to, inquiry to the State Long-Term Care Ombudsman

Office, the state Medicaid Fraud Control Unit, and the state

licensure and certification agency;

6. Review of minutes of family councils and residents councils,

and the facilities' responses, from each of the applicant's holdings

in Oklahoma; and

7. Any other matter which the Department deems appropriate.

I. Before making a final determination on an acquisition

application, the Commissioner shall cause paid public notices to be

published in a newspaper of general circulation near the facility

and in a newspaper of general circulation in the area where the

application is available for public inspection. A notice in a form

prescribed by the Department also shall be posted by the applicant

in a public area in each facility operated by the applicant in

Oklahoma, to inform residents and families of the applicant's

proposed action. The public notices shall offer participating

parties an opportunity to submit written comments.

J. The Commissioner's decision to approve or deny the proposed

acquisition, expansion, or establishment of a new facility shall be

made within forty-five (45) days following the deadline for

submitting written comments, or the proposed acquisition or

establishment shall be automatically approved, unless otherwise

prohibited pursuant to the provisions of the Long-term Care

Certificate of Need Act.

K. If the Commissioner finds that a proposed acquisition,

expansion, or establishment of a new facility is consistent with the

criteria and standards for review of such projects, and is otherwise

in compliance with the provision of the Long-term Care Certificate

of Need Act, then the Commissioner shall issue a certificate of

need. If the Commissioner finds that the proposed acquisition,

expansion, or establishment of a new facility is not consistent with

the criteria and standards, or is otherwise not in compliance with

the provisions of the Long-term Care Certificate of Need Act, the

Commissioner shall deny the certificate of need.