New_jersey Statute | Act | Code |Title 26 Health And Vital Statistics| US Code - US Statute

26:2H-7d. Certain health care equipment exempt. 18. Notwithstanding the provisions of P.L.1971, c.136 (C.26:2H-1 et seq.) to the contrary, health care equipment which involves new technology that is not identified in N.J.A.C.8:33 et seq., shall not be subject to certificate of need requirements and may be initiated in the State in accordance with the requirements of this section. a. The new technology shall be directly related to a health care service for which the provider is already licensed and has obtained a certificate of need, when required. b. The provider shall notify the Commissioner of Health and Senior Services about the intent to initiate the new technology at least 60 days prior to the date the provider will begin use of the technology. c. The new technology shall have pre-market approval from the federal Food and Drug Administration. d. The provider shall use the new technology in accordance with guidelines approved by the Joint Commission on Accreditation of Health Care Organizations until such time as the Department of Health and Senior Services has adopted licensing standards for the new technology. The provider shall be required to comply with the department@s licensing standards for the new technology upon adoption of the standards. e. The provider shall agree to submit to the department appropriate patient information and other data concerning use of the new technology to assist the department in establishing licensing standards. The provider shall submit the information and other data on a quarterly basis until such time as licensing standards are adopted for the new technology. f. The commissioner may suspend a provider@s use of the new technology if he determines that the provider is not in compliance with the requirements of this section. L.1998,c.43,s.18. 26:2H-7.1. Exemption; land acquired prior to effective date of act Any nonprofit entity chartered by the State of New Jersey as a nonprofit corporation pursuant to Title 15 of the Revised Statutes, which had been so chartered and had acquired land for the purpose of constructing a hospital prior to the effective date of the act to which this act is a supplement, and when the land so acquired by such nonprofit corporation is located within a municipality that has provided an appropriation for the construction of a health care facility as authorized by P.L.1954, c. 266 (C. 44:5-10.2), then the proposed hospital of such nonprofit corporation shall be exempt from the requirement of section 7 of P.L.1971, c. 136 (C. 26:2H-7) relating to a certificate of need. L.1978, c. 107, s. 1, eff. Aug. 22, 1978. 26:2H-7.2. Exemption from certificate of need Notwithstanding the provisions of section 7 of P.L.1971, c. 136 (C. 26:2H-7) to the contrary, a nursing home which proposes to increase the total number of licensed beds contained therein by not more than 10 beds or 10% of its licensed bed capacity, whichever is less, within a period of five years is exempt from the requirement of obtaining a certificate of need if the nursing home is in compliance with all State regulations governing its operations. L. 1987,c.322. 26:2H-7.3 Nursing homes exempt from certificate of need requirement. 1. a. Notwithstanding the provisions of section 7 of P.L.1971, c.136 (C.26:2H-7) to the contrary, a nursing home which is affiliated with a well established religious body or denomination and reserves at least 65% of its licensed bed capacity for patients who are members of that religious body or denomination is exempt from the requirement of obtaining a certificate of need if the nursing home is in compliance with all State regulations governing its licensure. b. A nursing home which is exempt from the certificate of need requirement pursuant to subsection a. of this section shall be required to meet the Statewide average for the percentage of beds that are to be reserved for patients who are eligible for medical assistance pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.). L.1993,c.140. 26:2H-7.4. Findings, declarations 1. The Legislature finds and declares that it is in the public interest for the State to facilitate the development of an effective and efficient spectrum of quality health care services; and that the conversion of existing hospital bed capacity to a less intensive and more appropriate level of care for post-acute care patients in order to create subacute care units will ensure an optimal quality of care, promote continuity of care and avoid the duplication of existing health care facility bed capacity through costly new construction. L.1996,c.102,s.1. 26:2H-7.5. Definitions regarding subacute care units 2. As used in this act: ~Commissioner~ means the Commissioner of Health. ~Hospital~ means an acute care general hospital licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.). ~Subacute care~ means a comprehensive in-patient program for patients who have had an acute illness, injury or exacerbation of a disease process, have a determined course of treatment prescribed, and do not require intensive diagnostic or intensive invasive procedures, but the patient@s condition requires physician direction, intensive nursing care, frequent recurrent patient assessment and review of the clinical course and treatment plan for a period of time, significant use of ancillary medical services and an interdisciplinary approach using professional teams of physicians, nurses and other relevant professional disciplines to deliver complex clinical interventions. ~Subacute care unit~ means a unit located within a hospital which provides utilizes licensed long-term care beds to provide subacute care for patients. L.1996,c.102,s.2. 26:2H-7.6 Requirements for subacute care unit. 3. a. A hospital which proposes to utilize a portion of its licensed bed capacity for the purpose of establishing a subacute care unit shall be subject to the following requirements: (1) the subacute care unit@s beds shall be licensed by the Department of Health and Senior Services as long-term care beds and shall meet all applicable State licensing and federal certification requirements, including the physical requirements for skilled nursing beds under the federal Medicare program established pursuant to Pub.L.89-97 (42 U.S.C.s.1395 et seq.), with reasonable waiver provisions as determined by the commissioner or the federal Health Care Financing Administration, as appropriate; (2) the maximum length of stay in the unit shall not exceed eight days; (3) the unit shall be certified to participate in the Medicare program as a skilled nursing facility; (4) the unit shall be comprised of not more than 7% of the hospital@s licensed medical-surgical bed capacity or 12 beds, whichever is greater; (5) the hospital@s licensed medical-surgical bed capacity shall be reduced, by the commissioner, by the number of beds used to establish a subacute care unit under the provisions of this section. Long-term care beds in a hospital@s subacute care unit shall not be transferred to, or combined with, a subacute care unit in another hospital. Bed limitations for a hospital shall include both conversions of existing acute care beds and any purchases or other acquisitions or rentals of beds to be used by a hospital for the provision of subacute care under this act; (6) (Deleted by amendment, P.L.1998, c.43). (7) the hospital shall be subject to the fee for the filing of an application for a license for long-term care beds and any renewal thereof as established by the Department of Health and Senior Services pursuant to section 12 of P.L.1971, c.136 (C.26:2H-12). b. Subacute care shall not be covered by the Medicaid program established pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.). The long-term care beds in a subacute care unit shall not be included in long-term care bed inventories for certificate of need review purposes. L.1996,c.102,s.3; amended 1998, c.43, s.8. 26:2H-7.7. Patient diagnostic categories; inpatient rehabilitation criteria; admission to subacute care, requirements 4. a. The determination of whether a hospital subacute care unit or a skilled nursing or comprehensive rehabilitation hospital or other type of facility is the preferred non-acute care placement for a patient shall be based on clinical considerations and the preference of the patient and his family; except that, as a condition of licensure of a hospital subacute care unit, clinically stable patients who are being treated in the diagnostic categories listed in paragraph (1) of this subsection and who meet the criteria for inpatient rehabilitation hospital care listed in paragraph (2) of this subsection, except as may be recommended by the comprehensive rehabilitation hospital or acute care hospital that has licensed comprehensive rehabilitation beds pursuant to subsection b. of this section, shall not be placed in a hospital subacute care unit. (1) Diagnostic categories include patients with: strokes, congenital anomalies, major multiple trauma, polyarthritis including rheumatoid arthritis, neurological disorders including multiple sclerosis, motor neuron diseases, polyneuropathy, muscular dystrophy and Parkinson@s disease, brain injury including traumatic or non-traumatic, spinal cord injury, amputations, joint replacements, fracture of the femur including hip fracture and burns. (2) Criteria for inpatient rehabilitation hospital care include patients who meet or require all of the following: (a) close medical supervision by a physician with specialized training or experience in rehabilitation; (b) 24-hour rehabilitation nursing; (c) a relatively intense level of rehabilitation services; (d) a multi-disciplinary team approach to the delivery of the program; (e) a coordinated program of care; (f) significant practical improvement is expected in a reasonable period of time; and (g) realistic goals of self-care or independence in activities of daily living. b. An acute care hospital shall forward information on clinically stable patients to a licensed comprehensive rehabilitation hospital or an acute care hospital that has licensed comprehensive rehabilitation beds. The licensed comprehensive rehabilitation hospital or the acute care hospital that has licensed comprehensive rehabilitation beds shall then make a recommendation, signed by a physician with specialized training or experience in rehabilitation, regarding placement within 24-hours of receipt of the information from the acute care hospital and which, together with the concurring or alternate recommendation from a case manager at the acute care hospital, shall be forwarded to the patient@s attending physician. c. A patient in a skilled nursing home who is admitted to and discharged from an acute care hospital shall not be admitted to the hospital@s subacute care unit unless the skilled nursing home is unable to readmit the patient within 24 hours after notification by the acute care hospital that the patient is ready for readmission to the skilled nursing home. If a patient is admitted to the hospital@s subacute care unit because that patient could not be readmitted to the skilled nursing home, the patient shall be discharged to the skilled nursing facility of origin as soon as the home agrees to accept the patient. d. In addition to the reports required in section 5 of P.L.1996, c.102 (C.26:2H-7.8), an acute care hospital with a subacute care unit shall file an annual report with the Department of Health demonstrating compliance with the provisions of this section. The report shall include information on the number of patients who were admitted to the hospital@s subacute care unit when the admission was contrary to the recommendation of a physician with specialized training or experience in rehabilitation, provided however, that the recommendation of the physician was for immediate placement of the patient, that is, within 24-hours, in a licensed comprehensive rehabilitation hospital or an acute care hospital that has licensed comprehensive rehabilitation beds. The report also shall include information on the number of patients admitted to the hospital@s subacute care unit pursuant to subsection c. of this section because the patient could not be readmitted to a skilled nursing home. e. The commissioner shall develop a procedure to assess an acute care hospital with a hospital subacute care unit@s compliance with the provisions of this section and section 3 of this act. f. Failure to comply with the provisions of this section or section 3 of this act may result in the suspension or revocation of a hospital subacute care license. g. If an acute care hospital which has a subacute care unit plans to transfer a patient from the hospital to the subacute care unit, the hospital shall discharge the patient from the hospital and admit the patient to the subacute care unit. Each admission to a subacute care unit shall be subject to a $35 health care quality fee to be paid to the Department of Health, the revenues from which shall be deposited in a dedicated fund to be established by the commissioner, and designated as the ~Health Care Quality Monitoring Fund.~ L.1996,c.102,s.4. 26:2H-7.8. Licensure requirements; quarterly reports 5. a. A subacute care unit shall be subject only to existing State long-term care facility licensure requirements and federal regulations governing Medicare participation. b. A hospital that has or converts beds for subacute care shall file with the Department of Health quarterly reports showing each patient admitted to the subacute care unit during the quarter by diagnosis, the patient@s length of stay in the unit, and any other information required by the department by regulation. L.1996,c.102,s.5. 26:2H-7.9 Certificate of Need Study Commission. 17. There is established a 15-member Certificate of Need Study Commission. The members shall include: the Commissioners of Health and Senior Services and Human Services who shall serve ex officio; the Chairman of the Senate Health Committee and the Chairman of the General Assembly Health Committee; and 11 public members. The public members shall be appointed as follows: two persons to be appointed by the President of the Senate, who shall not be of the same political party, one of whom is a State licensed health care professional and one of whom is a representative of a State licensed health care facility; two persons to be appointed by the Speaker of the General Assembly, who shall not be of the same political party, one of whom is a State licensed health care professional and one of whom is a representative of a State licensed health care facility; and two State licensed health care professionals, three representatives of a State licensed health care facility, one health economist and one consumer of health care services who is knowledgeable about health care financing issues and who is a resident of this State, to be appointed by the Governor. Vacancies in the membership of the commission shall be filled in the same manner provided for the original appointments. a. The Commissioner of Health and Senior Services shall serve as chairman of the commission. The commission shall select a vice-chairman from among the members. The commission shall organize as soon as practicable following the appointment of its members. The commission shall be entitled to call to its assistance and avail itself of the services of the employees of any State, county or municipal department, board, bureau, commission or agency as it may require and as may be available to it for its purposes. The Department of Health and Senior Services shall provide staff support for the commission. b. The commission shall conduct a comprehensive study to examine the impact that elimination of certificate of need requirements would have on each of the following health care services and facilities: nursing homes; home health agencies; assisted living residences and programs; comprehensive personal care homes; psychiatric beds; comprehensive rehabilitation services; trauma services; transfer of ownership of an existing general acute care hospital; new general acute care hospitals; special hospitals; children@s hospitals; organ banks; cardiac surgery and cardiac catheterization; mobile intensive care units; organ and bone marrow transplantation, including stem cell; burn centers; specialized perinatal and pediatric services, including maternal and child health consortia, pediatric intensive care and neonatal intermediate and intensive care; and any other health care services and facilities subject to certificate of need requirements that are not scheduled for exemption pursuant to sections 19 of P.L.1992, c.160 (C.26:2H-7a) and 16 of P.L.1998, c.43 (C.26:2H-7c). The commission shall assess the impact that deregulation of the services or facilities will have on: (1) urban hospitals; (2) access to care by residents in the State; (3) quality of care; (4) services that are delivered Statewide or on a regional basis; and (5) the State General Fund, including programs such as Medicaid. The commission shall make recommendations about which health care services or facilities, if any, should continue to be subject to certificate of need requirements or another type of State regulation, and which services or facilities should be exempt from such State regulation. c. Within 20 months of the effective date of P.L.1998, c.43, the commission shall report its findings and recommendations to the Governor and the Senate and General Assembly Health Committees. d. The commission shall expire upon the submission of its report. L.1998,c.43,s.17. 26:2H-7.10 Short title. 1. This act shall be known and may be cited as the ~Community Health Care Assets Protection Act.~ L.2000,c.143,s.1. 26:2H-7.11 Additional requirements for nonprofit hospitals relative to acquisitions; exemptions; procedures. 2. In addition to the requirements of P.L.1971, c.136 (C.26:2H-1 et seq.) concerning certificate of need and licensure requirements, a nonprofit hospital licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) shall satisfy the requirements of this act before applying to the Superior Court of New Jersey for approval prior to entering into a transaction that results in the acquisition of the hospital as defined in this act. The proposed acquisition shall be subject to the prior review of the Attorney General, in consultation with the Commissioner of Health and Senior Services, pursuant to the provisions of this section. The Attorney General shall review the application in furtherance of his common law responsibilities as protector, supervisor and enforcer of charitable trusts and charitable corporations. For the purposes of sections 2 and 3 of this act, ~acquisition~ means the purchase, lease, exchange, conversion, restructuring, merger, division, consolidation, transfer of control or other disposition of a substantial amount of assets or operations, whether through a single transaction or series of transactions, with one or more persons or entities. This act shall not apply to a nonprofit hospital if the proposed acquisition is in the usual and regular course of its activities and the Attorney General has given the nonprofit hospital a written waiver as to the proposed acquisition. As used in this section, a proposed acquisition is not in the usual and regular course of a nonprofit hospital@s activities if it effects a fundamental corporate change that involves transfer of ownership or control of charitable assets or a change of the nonprofit hospital@s mission or purpose. a. (1) Within five working days of submitting an application pursuant to this section, the nonprofit hospital shall publish a notice of the proposed acquisition, in a form approved by the Attorney General, in a newspaper of general circulation in the service area of the hospital once per week for three weeks. The notice shall state the names of the parties to the agreement, describe the contents of the application to the Attorney General and state the date by which a person may submit written comments about the application to the Attorney General. (2) Within 30 days after receipt of an initial application, the Attorney General shall advise the applicant in writing whether the application is complete, and, if not, shall specify what additional information is required. (3) The Attorney General shall, upon receipt of the information requested, notify the applicant in writing of the date of completion of the application. b. Within 90 days of the date of completion of the application, the Attorney General, in consultation with the Commissioner of Health and Senior Services, shall review the application and support the proposed acquisition, with or without any specific modifications, or, if he finds that it is not in the public interest, oppose the proposed acquisition. The Attorney General or commissioner may, for good cause, extend the time for review of an application submitted pursuant to this section. The proposed acquisition shall not be considered to be in the public interest unless the Attorney General determines that appropriate steps have been taken to safeguard the value of the charitable assets of the hospital and to ensure that any proceeds from the proposed acquisition are irrevocably dedicated for appropriate charitable health care purposes; and the Commissioner of Health and Senior Services determines that the proposed transaction is not likely to result in the deterioration of the quality, availability or accessibility of health care services in the affected communities. c. In determining whether the acquisition meets the criteria of subsection b. of this section, the Attorney General shall consider: (1) Whether the acquisition is permitted under the ~New Jersey Nonprofit Corporation Act,~ Title 15A of the New Jersey Statutes, and other applicable State statutes governing nonprofit entities, trusts or charities; (2) Whether the nonprofit hospital exercised due diligence in deciding to effectuate the acquisition, selecting the other party to the acquisition and negotiating the terms and conditions of the acquisition; (3) The procedures used by the nonprofit hospital in making its decision, including whether appropriate expert assistance was used; (4) Whether conflict of interest was disclosed, including, but not limited to, conflicts of interest related to board members of, executives of and experts retained by the nonprofit hospital, purchaser or other parties to the acquisition; (5) Whether any management contract under the acquisition is for reasonable fair value; (6) Whether the acquisition proceeds will be used for appropriate charitable health care purposes consistent with the nonprofit hospital@s original purpose or for the support and promotion of health care and whether the proceeds will be controlled as charitable funds independently of the purchaser or parties to the acquisition; and (7) Any other criteria the Attorney General establishes by regulation to determine whether the proposed acquisition is in the public interest. d. In determining whether an acquisition by any person or entity other than a corporation organized in this State for charitable purposes under Title 15A of the New Jersey Statutes meets the criteria of subsection b. of this section, the Attorney General shall consider, in addition to the criteria set forth in subsection c., the following criteria: (1) Whether the nonprofit hospital will receive full and fair market value for its assets. The Attorney General may employ, at the nonprofit hospital@s expense, reasonably necessary expert assistance in making this determination; (2) Whether charitable funds are placed at unreasonable risk, if the acquisition is financed in part by the nonprofit hospital; (3) Whether a right of first refusal has been retained to repurchase the assets by a successor nonprofit corporation or foundation if, following the acquisition, the hospital is subsequently sold to, acquired by or merged with another entity; (4) Whether the nonprofit hospital established appropriate criteria in deciding to pursue a conversion in relation to carrying out its mission and purposes; (5) Whether the nonprofit hospital considered the proposed conversion as the only alternative or as the best alternative in carrying out its mission and purposes; (6) Whether the nonprofit hospital exercised due care in assigning a value to the existing hospital and its charitable assets in proceeding to negotiate the proposed conversion; (7) Whether officers, directors, board members or senior management will receive future contracts in existing, new, or affiliated hospitals or foundations; and (8) Any other criteria the Attorney General establishes by regulation to determine whether a proposed acquisition by any person or entity other than a corporation organized in this State for charitable purposes under Title 15A of the New Jersey Statutes is in the public interest. e. In his review of the proposed acquisition, the Attorney General may assess the entity proposing to acquire the nonprofit hospital for reasonable costs related to the review, as determined by the Attorney General to be necessary. Reasonable costs may include expert review of the acquisition and a process for educating the public about the acquisition and obtaining public input. f. The Attorney General and the Commissioner of Health and Senior Services shall, during the course of the review pursuant to this section, hold at least one public hearing in which any person may file written comments and exhibits or appear and make a statement. The public hearing may, if the Attorney General and commissioner so agree, be conducted jointly. The commissioner may satisfy the requirements of this subsection by conducting a public hearing in conjunction with the certificate of need review process pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.). The Attorney General or the commissioner may subpoena additional information or witnesses, including, but not limited to, information about any transaction that is collateral to the proposed acquisition and any related documents, require and administer oaths, require sworn statements, take depositions and use related discovery procedures for purposes of the hearing and at any time prior to completing the review of the proposed acquisition. The Attorney General shall make the information received pursuant to this section, and the Department of Health and Senior Services shall make any information in its records relating to the proposed acquisition, available for inspection at no cost to the public. The public hearing shall be held no later than 60 days after the date that an application from a nonprofit hospital is deemed complete by the Attorney General. Public notice of the hearing shall be provided at least two weeks in advance of the date of the hearing. g. In a proposed acquisition subject to review under subsection d. of this section, the Attorney General, after consultation with the principal parties to the transaction, shall make a determination as to the amount of assets which the nonprofit hospital shall set aside as a charitable obligation, based on the full and fair market value of the hospital at the time of the proposed acquisition as determined by the Attorney General. h. Upon execution of a proposed acquisition subject to review under subsection d. of this section, the amount determined by the Attorney General to be set aside as a charitable obligation shall be placed in a nonprofit charitable trust or one or more existing or newly established tax-exempt charitable organizations operating pursuant to 26 U.S.C. s. 501(c)(3). The charitable mission and grant-making functions of any charitable entity that receives assets pursuant to subsection g. of this section shall be dedicated to serving the health care needs of the community historically served by the predecessor nonprofit hospital. Any charitable entity that receives assets pursuant to subsection g. of this section, the directors, officers and trustees of any such charitable entity, and the assets of any such charitable entity, including any stock involved in the acquisition, shall be independent of any influence or control by the acquiring entity, its directors, officers, trustees, subsidiaries or affiliates. (1) The governance of the charitable trust that results from the acquisition or of any newly established charitable organization that is to receive charitable assets pursuant to subsection g. of this section shall be subject to review and approval by the Attorney General. The governance of any existing charitable organization that is to receive charitable assets pursuant to subsection g. of this section shall be subject to review by the Attorney General. The governance of the charitable trust or the charitable organization shall be broadly based, and neither the trust or organization nor any officer, director or senior manager of the trust or organization shall be affiliated with the acquiring entity and no officer, director or senior manager of the trust or organization shall be a full-time employee of State government. No officer, director or senior manager of the trust or organization shall have been a director, officer, agent, trustee or employee of the nonprofit hospital during the three years immediately preceding the effective date of the acquisition, unless that person can demonstrate to the satisfaction of the Attorney General that the person@s assumption of the position of officer, director or senior manager of the trust or organization would not constitute a breach of fiduciary duty or other conflict of interest. (2) The governing body of the charitable trust or organization shall establish or demonstrate that it has in place, as the case may be, a mechanism to avoid conflicts of interest and to prohibit grants that benefit the board of directors and management of the acquiring entity or its affiliates or subsidiaries. (3) The governing body of the charitable trust or organization shall provide the Attorney General with an annual report which shall include an audited financial statement and a detailed description of its grant-making and other charitable activities related to its use of the charitable assets received pursuant to this act. The annual report shall be made available to the public at both the Attorney General@s office and the office of the charitable trust or organization. Nothing contained in this act shall affect the obligations of an entity possessing endowment funds under P.L.1975, c.26 (C.15:18-15 et seq.). i. (1) The entity acquiring the nonprofit hospital, if determined to be necessary by the Commissioner of Health and Senior Services, shall provide funds, in an amount determined by the Commissioner of Health and Senior Services, for the hiring by the Department of Health and Senior Services of an independent health care access monitor to monitor and report quarterly to the Department of Health and Senior Services on community health care access by the entity, including levels of uncompensated care for indigent persons provided by the entity. The funding shall be provided for three years after the date of the acquisition. The entity acquiring the hospital shall provide the monitor with appropriate access to the entity@s records in order to enable the monitor to fulfill this function. To prevent the duplication of any information already reported by the entity, the monitor shall, to the extent possible, utilize data already provided by the entity to the Department of Health and Senior Services. No personal identifiers shall be attached to any of the records obtained by the monitor, and all such records shall be subject to the privacy and confidentiality provisions of medical records provided by law. (2) Following the monitoring period, or in the event that no monitoring period is established, if the Commissioner of Health and Senior Services receives information indicating that the acquiring entity is not fulfilling its commitment to the affected service area pursuant to this act and determines that the information is true, he shall order the acquiring entity to comply with a corrective action plan. The commissioner shall retain oversight of the acquiring entity@s obligations under the corrective action plan for as long as necessary to ensure compliance with this act. j. The trustees and senior managers of the nonprofit hospital are prohibited from investing in the acquiring entity for a period of three years following the acquisition. k. No director, officer, agent, trustee or employee of the nonprofit hospital shall benefit directly or indirectly from the acquisition, including the receipt of any compensation directly related to the proposed acquisition. l. Upon completion by the Attorney General of the review of the application required by this act, the nonprofit hospital shall apply to the Superior Court for approval of the proposed acquisition. In that proceeding, the Attorney General shall advise the court as to whether he supports or opposes the proposed acquisition, with or without any specific modifications, and the basis for that position. Any person who filed a written comment or exhibit or appeared and made a statement in the public hearing held by the Attorney General pursuant to subsection f. of this section shall be considered a party to the proceeding, including consumers or community groups representing the citizens of the State. m. Notwithstanding the provisions of subsections a. and f. of this section to the contrary, in the event that the Attorney General or the Commissioner of Health and Senior Services determines that a proposed acquisition should be considered on an expedited basis in order to preserve the quality of health care provided to the community, the Attorney General and the commissioner may combine the public notice about the acquisition with the notice for a public hearing as required in subsections a. and f., respectively, and may reduce the period of time required for notice, as necessary. In considering a proposed acquisition on an expedited basis, the Attorney General and commissioner may agree to reduce the period of time for review of a completed application to less than 90 days. n. The Attorney General, in consultation with the Commissioner of Health and Senior Services, shall adopt regulations pursuant to the ~Administrative Procedure Act,~ P.L.1968, c.410, (C.52:14B-1 et seq.) to carry out the purposes of this act. L.2000,c.143,s.2. 26:2H-7.12 Exemption. 3. A hospital owned and operated by a county is exempt from the provisions of this act. L.2000,c.143,s.3. 26:2H-7.13 Applicability of act. 4. The provisions of this act shall apply to any proposed acquisition of a nonprofit hospital that is initiated after the effective date of this act. L.2000,c.143,s.4. 26:2H-7.14 Construction of act. 5. Nothing in this act shall be construed to limit the existing authority of the Attorney General, the Commissioner of Health and Senior Services or any other government official or entity or the court to review, approve or disapprove conditions related to an acquisition, transaction or disposition under current law. L.2000,c.143,s.5. 26:2H-7.15 Definitions relative to assisted living. 1. As used in this act: ~Assisted living~ means a coordinated array of supportive personal and health services, available 24 hours per day, which promote resident self-direction and participation in decisions that emphasize independence, individuality, privacy, dignity and homelike surroundings to residents who have been assessed to need these services, including residents who require formal long-term care. ~Assisted living program~ means the provision of or arrangement for meals and assisted living services, when needed, to the residents of publicly subsidized housing, which because of any federal, State or local housing laws, rules, regulation or requirements cannot become licensed as an assisted living residence. ~Assisted living residence~ means a facility licensed by the Department of Health and Senior Services to provide apartment-style housing and congregate dining and to assure that assisted living services are available when needed, for four or more adult persons unrelated to the proprietor. Apartment units shall offer, at a minimum, one unfurnished room, a private bathroom, a kitchenette and a lockable door on the unit entrance. ~Commissioner~ means the Commissioner of Health and Senior Services. L.2002,c.25,s.1. 26:2H-7.16 Evaluation of applicant prior to approval of certificate of need. 2. Prior to approval of a certificate of need pursuant to section 7 of P.L.1971, c.136 (C.26:2H-7) for an assisted living residence or program, the commissioner shall evaluate the background of an applicant for a certificate of need to ensure, at a minimum, that the applicant is: a. of good moral character; b. economically capable of constructing or expanding, as appropriate, and maintaining an assisted living residence or program, as applicable; c. capable of successfully providing assisted living services that meet or surpass the licensing standards for assisted living residences or programs, as applicable, as set by the commissioner; d. capable of demonstrating an acceptable track record, if appropriate, of the applicant@s past and current compliance with State licensure requirements, applicable federal requirements and State certificate of need requirements pursuant to section 7 of P.L.1971, c.136 (C.26:2H-7); and e. capable of demonstrating an acceptable track record of the applicant@s past and current compliance with State licensure or applicable federal or State requirements for, and the financial success of, any health care-related or other business activity that involves construction, operation or management of the activity. L.2002,c.25,s.2. 26:2H-7.17 Issuance of assisted living administrator certification; criminal history record check. 3. a. The commissioner shall not issue an assisted living administrator certification, except on a conditional basis as provided for in subsection d. of section 4 of this act, unless the commissioner first determines, consistent with the requirements of this act, that no criminal history record information exists on file in the Federal Bureau of Investigation, Identification Division, or in the State Bureau of Identification in the Division of State Police in the Department of Law and Public Safety, which would disqualify that person from being certified. b. An assisted living administrator certified by the department prior to the effective date of this act, upon whom a criminal history record background check has not been conducted pursuant to this act, shall be required to undergo that criminal history record background check as a condition of renewal of certification following the effective date of this act. c. An assisted living administrator, who is a licensed nursing home administrator and has undergone a criminal history record background check as a result of having obtained a nursing home administrator@s license, shall not be required to undergo a criminal history record background check pursuant to this act. d. A person shall be disqualified from certification if that person@s criminal history record background check reveals a record of conviction of any of the following crimes and offenses: (1) In New Jersey, any crime or disorderly persons offense: (a) involving danger to the person, meaning those crimes and disorderly persons offenses set forth in N.J.S.2C:11-1 et seq., N.J.S.2C:12-1 et seq., N.J.S.2C:13-1 et seq., N.J.S.2C:14-1 et seq. or N.J.S.2C:15-1 et seq.; or (b) against the family, children or incompetents, meaning those crimes and disorderly persons offenses set forth in N.J.S.2C:24-1 et seq.; or (c) involving theft as set forth in chapter 20 of Title 2C of the New Jersey Statutes; or (d) involving any controlled dangerous substance or controlled substance analog as set forth in chapter 35 of Title 2C of the New Jersey Statutes except paragraph (4) of subsection a. of N.J.S.2C:35-10. (2) In any other state or jurisdiction, of conduct which, if committed in New Jersey, would constitute any of the crimes or disorderly persons offenses described in paragraph (1) of this subsection. e. Notwithstanding the provisions of subsection a. of this section, no person shall be disqualified from certification on the basis of any conviction disclosed by a criminal history record background check performed pursuant to this act if the person has affirmatively demonstrated to the commissioner clear and convincing evidence of the person@s rehabilitation. In determining whether a person has affirmatively demonstrated rehabilitation, the following factors shall be considered: (1) the nature and responsibility of the position which the convicted person would hold, has held or currently holds, as the case may be; (2) the nature and seriousness of the offense; (3) the circumstances under which the offense occurred; (4) the date of the offense; (5) the age of the person when the offense was committed; (6) whether the offense was an isolated or repeated incident; (7) any social conditions which may have contributed to the offense; and (8) any evidence of rehabilitation, including good conduct in prison or in the community, counseling or psychiatric treatment received, acquisition of additional academic or vocational schooling, successful participation in correctional work-release programs, or the recommendation of those who have had the person under their supervision. f. If a person subject to the provisions of this act refuses to consent to, or cooperate in, the securing of a criminal history record background check, the commissioner shall, as applicable: (1) not issue an assisted living administrator certification and shall notify the applicant, and the applicant@s employer, if the applicant is conditionally employed as provided in subsection d. of section 4 of this act or the applicant@s prospective employer, if known, of that denial; or (2) revoke the person@s current assisted living administrator certification and notify the person, and the person@s employer, if known, of that revocation. L.2002,c.25,s.3. 26:2H-7.18 Information provided for criminal history record background check; procedure. 4. a. An applicant for certification or a certified assisted living administrator, who is required to undergo a criminal history record background check pursuant to section 3 of this act, shall submit to the commissioner that individual@s name, address and fingerprints taken on standard fingerprint cards by a State or municipal law enforcement agency. The commissioner is authorized to exchange fingerprint data with and receive criminal history record information from the Federal Bureau of Investigation and the Division of State Police in the Department of Law and Public Safety for use in making the determinations required by this act. b. Upon receipt of the criminal history record information for a person from the Federal Bureau of Investigation or the Division of State Police, the commissioner shall immediately notify, in writing, the applicant, and the applicant@s employer, if the applicant is conditionally employed as provided in subsection d. of this section, or the applicant@s prospective employer, if known, or a certified assisted living administrator who is required to undergo a criminal history record background check pursuant to section 3 of this act and that person@s employer, as applicable, of the person@s qualification or disqualification for certification under this act. If the person is disqualified, the conviction or convictions which constitute the basis for the disqualification shall be identified in the notice to the person, but shall not be identified in the notice to the person@s employer or prospective employer. c. The person who is the subject of the background check shall have 30 days from the date of the written notice of disqualification to petition the commissioner for a hearing on the accuracy of the person@s criminal history record information or to establish the person@s rehabilitation under subsection e. of section 3 of this act. The commissioner shall notify the person@s employer or prospective employer of the person@s petition for a hearing within five days following the receipt of the petition from the person. Upon the issuance of a final decision upon a petition to the commissioner pursuant to this subsection, the commissioner shall notify the person and the person@s employer or prospective employer as to whether the person remains disqualified from certification under this act. d. (1) An applicant for certification may be issued conditional certification and may be employed as an assisted living administrator conditionally for a period not to exceed 60 days, pending completion of a criminal history record background check required under this act by the Division of State Police based upon an examination of its own files, in accordance with section 7 of P.L.2002, c.25 (C.53:1-20.9c), and for an additional period not to exceed 60 days pending completion of a criminal history record background check by federal authorities as arranged for by the Division of State Police pursuant to section 7 of P.L.2002, c.25 (C.53:1-20.9c), if the person submits to the commissioner a sworn statement attesting that the person has not been convicted of any crime or disorderly persons offense as described in section 3 of this act. A person who submits a false sworn statement shall be disqualified from certification, and shall not have an opportunity to establish rehabilitation pursuant to subsection e. of section 3 of this act. (2) A conditionally employed person or an employed certified assisted living administrator, who disputes the accuracy of the criminal history record information and who files a petition requesting a hearing pursuant to subsection c. of this section, may remain employed until the commissioner rules on the person@s petition but, pending the commissioner@s ruling, the person shall not have unsupervised contact with residents at the assisted living residence or program. e. (1) A licensed assisted living residence or program, as applicable, that has received an application from or conditionally employs an applicant for assisted living administrator or employs a certified assisted living administrator, and: (a) receives notice from the commissioner that the applicant or certified assisted living administrator has been determined by the commissioner to be disqualified from certification as an assisted living administrator pursuant to this act; or (b) terminates its employment of a conditionally employed applicant for assisted living administrator or a certified assisted living administrator because the person was disqualified from employment at the assisted living residence or program on the basis of a conviction of a crime or disorderly persons offense as described in section 3 of this act after commencing employment at the assisted living residence or program; shall be immune from liability for disclosing that disqualification or termination in good faith to another licensed health care facility or other entity that is qualified by statute or regulation to employ the person as a certified administrator. (2) A licensed health care facility or other entity which discloses information pursuant to paragraph (1) of this subsection shall be presumed to be acting in good faith unless it is shown by clear and convincing evidence that the health care facility or other entity acted with actual malice toward the person who is the subject of the information. f. (1) An assisted living residence or program, as applicable, upon receiving notice from the commissioner that a person employed by it as an assisted living administrator, including a conditionally employed person, has been convicted of a crime or disorderly persons offense as described in section 3 of this act after commencing employment at the assisted living residence or program, shall: (a) immediately terminate the person@s employment as an assisted living administrator; and (b) report information about the termination to the commissioner in a manner prescribed by the commissioner, who shall thereupon deem the person to be disqualified from certification as an assisted living administrator, subject to the provisions of subsection c. of this section. (2) An assisted living residence or program shall be immune from liability for any actions taken in good faith pursuant to paragraph (1) of this subsection and shall be presumed to be acting in good faith unless it is shown by clear and convincing evidence that the assisted living residence or program acted with actual malice toward the employee. L.2002,c.25,s.4. 26:2H-7.19 Applicant to assume cost of criminal history record background check. 5. The applicant for certification as an assisted living administrator or a certified assisted living administrator, as the case may be, shall assume the cost of the criminal history record background check conducted pursuant to this act. L.2002,c.25,s.5. 26:2H-7.20 Fine for false sworn statement. 6. A person submitting a false sworn statement pursuant to section 4 of this act shall be subject to a fine of not more than $1,000, which may be assessed by the commissioner. L.2002,c.25,s.6. 26:2H-7.21 Rules, regulations. 8. The Commissioner of Health and Senior Services, pursuant to the ~Administrative Procedure Act,~ P.L.1968, c.410 (C.52:14B-1 et seq.) shall adopt rules and regulations to effectuate the purposes of this act. L.2002,c.25,s.8.

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