A.(1) The Louisiana Department of Health, in accordance with the Administrative Procedure Act, shall establish a facility need review process for nursing facilities consistent with the regulations for licensure and for Title XIX of the Social Security Act.

            (2) The department shall promulgate rules and regulations in accordance with the Administrative Procedure Act to provide for facility need review. The rules and regulations shall include but not be limited to the following:

            (a) Criteria for review of nursing facility beds to determine if there is a need for additional beds.

            (b) Specific duties of the department to review proposals for new facilities and determine the need therefor.

            (c) Appropriate methodology for the collection of data necessary for the administration of the program.

            (d) Procedures to grant and revoke approvals.

            (e) Establishment of application fees.

            (f) Procedures for review of applications by the department.

            (g) Procedures to request a fair hearing from a determination made by the department.

            (h) Provisions for judicial review from the decision rendered after a fair hearing.

            (3) No new facility, service, or bed shall be licensed and certified to participate in the Title XIX program without the approval of the department based upon a determination of a need therefor in accordance with the provisions of this Section. Any person establishing, managing, or operating a new facility, service, or bed without the approval required by this Section shall be prohibited from participating in the Title XIX program.

            B.(1) There shall be a moratorium on nursing facilities and additional beds for nursing facilities which shall be in effect until July 1, 2027.

            (2) The moratorium provided for in Paragraph (1) of this Subsection shall not apply to the following:

            (a) Replacement of existing facilities, provided that there is no increase in existing nursing home beds at the replacement facility. However, a nursing home which has relocated as the result of an executive order or declaration of emergency or disaster issued in accordance with La. Rev. Stat. 29:724 shall not be allowed to permanently relocate such facility outside of the geographic area for which the original facility was licensed.

            (b) Replacement of nursing facility beds with adult residential care home beds, either through new construction or through renovation and conversion. Such replacement shall be subject to licensing rules and regulations and budget neutrality provisions promulgated by the Louisiana Department of Health.

            (c) A nursing facility located in a service area which has less than ninety-three percent occupancy that temporarily converts a number of licensed beds to an alternate use. The beds may be converted for alternate health care use until such time as the average annual occupancy in the service area exceeds ninety-three percent and an adjoining service area exceeds ninety-three percent based on the department’s LTC-2 Report or its successor and the facility is notified of the same. The facility shall then either relicense the beds as nursing home beds within one year of receipt of the notice from the department, or the beds will be deemed expired. Nothing in this Paragraph shall be construed to preclude nursing facilities from taking beds out of alternate use at any time and using them as licensed beds unless they are deemed expired.

            (d) Nursing home beds in alternate use.

            C.(1) Except as provided in Paragraphs (2), (3), and (4) of this Subsection, the Louisiana Department of Health shall suspend approval, certification, and enrollment of nursing facility beds which were previously approved to participate in the Title XIX program under a facility need review process, Section 1122 process, or any predecessor needs review process, unless the beds are certified and enrolled in the Title XIX program by December 31, 1997. The suspension shall be for the length of the moratorium imposed pursuant to Subsection B of this Section.

            (2) The suspension shall not apply to existing approvals for replacement of existing nursing facilities, or approvals which are under judicial review, on August 15, 1997. The suspension shall not apply to approvals for alternate use of previously approved beds.

            (3) In the case of previously approved but unbuilt nursing facilities or beds, the department shall not suspend approval, certification, and enrollment if construction has actually begun by June 30, 1998, and construction is completed and the facilities or beds are actually certified and enrolled in the Title XIX program by December 31, 1999. In such cases, the department shall suspend approval, certification, and enrollment of previously approved beds not certified and enrolled by December 31, 1999.

            (4) In the case of previously approved but unbuilt nursing facilities or beds, if construction has actually begun by June 30, 1998, and construction is not completed and the facilities or beds are not actually certified and enrolled in the Title XIX program by December 31, 1999, the secretary of the Louisiana Department of Health may authorize the certification and enrollment of the beds by December 31, 2001. However, the extension shall not be granted unless the secretary determines that construction has not been completed due to circumstances beyond the control of the applicant, a written request for an extension was made prior to December 31, 1999, and financing has been approved for the beds. These provisions shall only be applicable in the case of a facility, the primary purpose of which is to replace an existing facility, but also in so doing, enrolling additional beds.

            Acts 2022, No. 531, §1.