1.    Basic care beds may not be added to the state‘s licensed bed capacity during the period between August 1, 2023, and July 31, 2025, except if:

a.    A nursing facility converts nursing facility beds to basic care; b.    An entity licenses bed capacity transferred as basic care bed capacity under section 23-16-01.1; c.    An entity demonstrates to the department that basic care services are not readily available within a designated area of the state or that existing basic care beds within a fifty-mile [80.47-kilometer] radius have been occupied at ninety percent or more for the previous twelve months. In determining whether basic care services will be readily available if an additional license is issued, preference may be given to an entity that agrees to any participation program established by the department for individuals eligible for services under the medical assistance program under title XIX of the Social Security Act [42 U.S.C. § 1396 et seq.]; or

d.    The department grant approval of new basic care beds to an entity. The approved entity shall license the beds within forty-eight months from the date of approval.

2.    Transfers of basic care beds from one basic care facility to another entity is permitted.

Transferred basic care beds must become licensed within seventy-two months of transfer. The entity receiving the transferred beds or any new facility may seek to participate in the basic care assistance program. If the entity can demonstrate that individuals can be cared for at a more independent level and that this service will delay entry into the nursing facility, the entity may be approved for basic care assistance funds.

3.    If an Indian tribe acquires basic care beds, the tribal facility must meet state licensing requirements for those beds within seventy-two months of acquisition. A tribal facility may seek to participate in the basic care assistance program. Basic care assistance payments may only be made to a tribal facility that agrees to participate and adhere to all federal and state requirements of the basic care assistance program including participation, screening, ratesetting, and licensing requirements.