3634.1 Violation of any of the following provisions shall be a Class 1 Infraction:

1. (a) Section 7(a) of the Health Services Planning Program Re-establishment Act of 1996 (Act), effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-406(a)) (offering or developing a new institutional health service or obligating a capital expenditure to obtain an asset to be located in the District without obtaining a Certificate of Need (CON) from the State Health Planning and Development Agency (SHPDA));
2. (b) Section 7(b) of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-406(b)) (failure of a person seeking to acquire control of an existing health care facility or any part thereof to apply for and be approved by SHPDA for a CON before making a capital expenditure to acquire the facility or part thereof);
3. (c) Section 7(c) of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-406(c)) (failure to notify the SHPDA of the intention to close or terminate the operation of a healthcare facility or health service no later than ninety (90) days prior to the proposed closing);
4. (d) Section 10(h) of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-409(h)) (failure to comply with conditions imposed by SHPDA upon the grant of a CON);
5. (e) Section 12(c) of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-411(c)) (selling or transferring effective control of a health care facility or health service with a certificate of need without the prior review and approval by SHPDA of a new CON);
6. (f) Section 16 of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-415) (obtaining a license, permit, and any other type of official approval by an agency or officer or employee of the District which is necessary for a particular health project prior to the issuance of a CON);
7. (g) Section 17(a) of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-416(a)) (proceeding with any project which requires a CON without first applying for and obtaining a CON); or
8. (h) 22-B DCMR § 4000.6 (changing the location of an approved service or facility outside of the same Advisory Neighborhood Commission (ANC))

before the project is implemented without the prior review and approval by SHPDA of a new CON).

3634.2 Violation of any of the following provisions shall be a Class 2 Infraction:

(a) Section 10(j) of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-409(j)) (beginning operation of the bed, health care facility, or health service approved in a CON before the SHPDA has conducted a review to determine compliance with the CON requirements);

(b) Section 12(d) of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-411(d)) (any transfer, assignment, or other disposition of 10% of the stock or voting rights thereunder of a corporation or other entity which is the operator of a health care facility, or any transfer, assignment, or other disposition of the stock or voting rights thereunder of the corporation which results in the ownership or control of more than 10% of the stock or voting rights thereunder of the corporation, by any person, when that corporation or entity holds a current CON, without the prior review and approval by SHPDA of a new CON);

(c) 22-B DCMR § 4000.2 (undertaking any activity for which a CON is required if the original term of the CON has expired and the person has not obtained an extension of the CON or the SHPDA Director has revoked the CON);

(d) 22-B DCMR § 4005.3 (failure of a CON holder to request the SHPDA Director's approval for a proposed change in the project budget that will result in an expenditure that is equal to or greater than one hundred and twenty-five per cent (125%) of the approved capital expenditure specified in the CON);

(e) 22-B DCMR § 4005.3 (commencing work on proposed changes to a project or portion thereof where the proposed changes would cause the capital expenditure for the proposed changes would equal or exceed twenty-five per cent (25%) of the maximum capital expenditure in the approved CON without review and approval of the revised capital expenditure by the SHPDA Director);

(f) 22-B DCMR § 4005.4 (failure of a CON holder to submit an application for a new CON when the proposed change in the project would cause an increase of the capital expenditure for the project in an amount that exceeds the proposed budget by fifty percent (50%) of the approved capital expenditure specified in the CON without review and approval of the revised capital expenditure by the SHPDA Director);

(g) 22-B DCMR § 4005.10 (failure of a CON holder to report to SHPDA each proposed change to the specifications in the approved CON);

(h) 22-B DCMR § 4005.15 (failure of a CON holder to report to SHPDA each proposed change to a completed project involving a capital expenditure when the change is proposed within two (2) years after the date the activity for which the expenditure was approved is undertaken);

(i) 22-B DCMR § 4006.6 (commencing operation of an approved project or phase of an approved project prior to the issuance by SHPDA of a Letter of Completion for the approved project or approved phase of a project); or

(j) 22-B DCMR § 4100.1 (failure to notify SHPDA in writing of the establishment of a new institutional health service solely for research).

3634.3 Violation of any of the following provisions shall be a Class 3 Infraction:

(a) Section 6(a) of the Act, effective April 9, 1997 (D.C. Law 11-191; D.C. Official Code § 44-405(a)) (failure to submit to SHPDA any required data related to the utilization, management, and financing of health services, including data on utilization of health services, cost of services, charges of services, patient demographic, characteristic information, and data related to the annual level of uncompensated care provided); or

(b) 22-B DCMR § 4008.1 (failure to make quarterly progress reports to SHPDA).

3634.4 Each day of a continuing violation shall constitute a separate offense.

SOURCE: Final Rulemaking published at 52 DCR 5045 (May 27, 2005); as amended by Final Rulemaking published at 69 DCR 015553 (December 30, 2022).