| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Appropriations Committee | |
2ESSB 5905
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Concerning certificate of capital authorization.
Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Franklin, Pflug, Keiser, Tom, Zarelli, Marr and Carrell).
Brief Summary of Second Engrossed Substitute Bill |
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Hearing Date:
Staff: Carma Matti (786-7140).
Background:
In order to receive Medicaid funding for construction costs above $2 million, a skilled nursing
facility needs a certificate of capital authorization (CCA) from the Department of Social and
Health Services (DSHS). An approved CCA allows the investment and depreciation associated
with the nursing home's capital project to be included in their Medicaid reimbursement rate. In
order to obtain a CCA, the nursing facility must:
Completed applications are reviewed and approved on a first-come, first-serve basis. Projects
not approved in one appropriation period have priority in the subsequent period. The DSHS has
the authority to give priority to a project that is necessitated by an emergency situation as
determined by DSHS rules.
Since 2006, the total dollar amount of capital authorizations as set in the biennial appropriations
act has been $16 million per fiscal year. Prior to 2006, this amount was $32 million per year.
Summary of Bill:
Certificates of capital authorizations (CCA) are based on priority rather than first-come, first-serve. Applications for renovations or replacement of existing facilities are given priority over
applications for new facilities. Priority for existing facilities is based on the greatest length of
time since the building's last major renovation or construction. New facilities receive last
priority and will be treated on a first-come, first-serve basis against other new facilities. The
DSHS has authority to give first priority to projects that are necessitated by an emergency
situation defined as construction or renovation needed as soon as possible to:
1) Retain a facilities license or certification.
2) Protect the health or safety of the facility's residents.
3) Avoid closure.
The DSHS is authorized to establish rules regarding the prioritization for processing CCAs, and
the time period during which applications for CCAs will be accepted and for which
authorizations will remain valid.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.