KRS 216B.086: Revocation of certificate of need -- Hearings -- Prohibition against ex

parte contacts.

(1) The cabinet may revoke a certificate of need, or portion thereof, for failure of the

holder of the certificate to implement the project in accordan ce with timetables and

standards for implementation established by administrative regulation of the

cabinet; however, for projects involving long -term care beds, the cabinet may

revoke any certificate granted which is not implemented within twenty -four (24 )

months or within any six (6) month reporting interval during which there is not

satisfactory progress in meeting the project timetable and shall revoke any

certificate granted which is not implemented within thirty -six (36) months except

for those projec ts specified as an exception pursuant to Executive Order 96 -129 in

which case those projects shall be implemented according to the intervals and

timetable set forth in this section, as of the effective date of Medicaid funding in the

biennial budget for th ose projects. The administrative regulation for projects

involving long-term care beds shall be based on project completion in twenty -four

(24) months and shall specify criteria for measuring implementation of project

objectives at six (6) month reporting intervals. If, at any six (6) month reporting

period, the certificate holder is able to show good cause as to why a project failed to

meet its timetables, an extension of six (6) months may be granted to meet that

particular timetable. The burden of proof shall be on the certificate holder. An

extension may be granted beyond a total of thirty -six (36) months, only if the

applicant requests that the cabinet grant an additional six (6) month extension

beyond the initial thirty -six (36) month completion period and shows good cause.

For purposes of this section, there shall be deemed to be "good cause" if the project

can be completed within the additional six (6) month period. In no case shall an

extension be granted beyond a total of forty -two (42) months. The holder of the

certificate of need shall file with the cabinet the name and business address of all

owners, investors, and stockholders in the project whose ownership interest is

greater than ten percent (10%). All reports submitted by the certificate holde r under

this subsection shall be considered a public record in accordance with the Kentucky

Open Records Law, KRS 61.870 to 61.884.

(2) The cabinet shall give notice to the holder of the certificate of its initial decision to

revoke the certificate of need or portion thereof. The cabinet's initial decision to

revoke a certificate of need or portion thereof shall become final after thirty (30)

days unless a hearing is requested. The secretary shall give notice to the holder of

the certificate of a decision w hich has become final under the provisions of this

subsection.

(3) The holder of the certificate of need to be revoked may request in writing a public

hearing in respect to an initial decision by the cabinet to revoke a certificate of need

within thirty (30) days of the date of notice of the initial decision. Failure to request

a hearing shall constitute a waiver of any right to reconsideration or judicial appeal

of a final cabinet decision to revoke a certificate of need.

(4) The hearing shall be before a person designated by the Office of Administrative

Hearings within the Department of Law to be the hearing officer. The hearing shall

be no later than thirty (30) days after the request for the hearing is filed.

(5) If a hearing is requested, the Office of Administrative Hearings within the

Department of Law shall set a date, time, and place for a public hearing.

Reasonable notice of the hearing shall be given to all affected persons in

accordance with administrative regulations promulgated by the cabinet.

(6) At the hearing, any party to the proceedings shall have the right to be represented

by counsel and to present oral or written arguments and evidence relevant to the

revocation of the certificate of need and may conduct reasonable cross -examination

under oath of persons who testify. A full and complete record shall be maintained

of the hearing, and all testimony shall be recorded but not be transcribed unless the

cabinet's final decision is appealed pursuant to this chapter.

(7) After the issuance of an i nitial decision to revoke a certificate of need and before a

final decision is made, no person shall have ex parte contacts with employees of the

cabinet regarding the revocation. If an ex parte contact occurs, it shall be promptly

made a part of the record.

(8) If a hearing is requested after notice of the cabinet's initial decision to revoke a

certificate of need, the Office of Administrative Hearings within the Department of

Law shall make a final decision within thirty (30) days after the hearing. Any f inal

decision revoking a certificate of need shall be made by the hearing officer in

writing. The cabinet shall notify the parties to the proceedings of the final decision.

(9) Any final decision to revoke a certificate of need shall be based solely on the record

established with regard to the revocation.

(10) Except as provided in subsection (3) of this section, reconsideration pursuant to

KRS 216B.090 or judicial appeal pursuant to KRS 216B.115 shall be available with

regard to a final decision of the cabinet to revoke a certificate of need.