North Carolina SB 370: Repeal Certificate of Need Laws.

Status: Passed 1st Reading (as of 2025-04-28)

State: North Carolina · Session: 2025 · Bill: SB 370

Subjects: CERTIFICATES OF NEED; CLINICS; DHHS; HEALTH SERVICES; HOSPITALS; PUBLIC; PUBLIC HEALTH; MEDICAL EQUIPMENT

Sponsors: Galey, Sawrey, Brinson, Britt, Ford, Hanig, Hise, Jarvis, Sanderson, Settle

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 370

Short Title: Repeal Certificate of Need Laws. (Public)
Sponsors: Senators Sawrey, Galey, and Jarvis (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 24, 2025
*S370-v-1*
A BILL TO BE ENTITLED 1
AN ACT REPEALING NORTH CAROLINA'S CERTIFICATE OF NEED LAWS. 2
The General Assembly of North Carolina enacts: 3
SECTION 1.(a) G.S. 6-19.1(a) reads as rewritten: 4
"(a) In any civil action, other than an adjudication for the purpose of establishing or fixing 5
a rate, or a disciplinary action by a licensing board, brought by the State or brought by a party 6
who is contesting State action pursuant to G.S. 150B-43 or any other appropriate provisions of 7
law, unless the prevailing party is the State, the court may, in its discretion, allow the prevailing 8
party to recover reasonable attorney's fees, including attorney's fees applicable to the 9
administrative review portion of the case, in contested cases arising under Article 3 of Chapter 10
150B, to be taxed as court costs against the appropriate agency if: 11
(1) The court finds that the agency acted without substantial justification in 12
pressing its claim against the party; and 13
(2) The court finds that there are no special circumstances that would make the 14
award of attorney's fees unjust. The party shall petition for the attorney's fees 15
within 30 days following final disposition of the case. The petition shall be 16
supported by an affidavit setting forth the basis for the request. 17
Nothing in this section shall be deemed to authorize the assessment of attorney's fees for the 18
administrative review portion of the case in contested cases arising under Article 9 of Chapter 19
131E of the General Statutes. 20
Nothing in this section grants permission to bring an action against an agency otherwise 21
immune from suit or gives a right to bring an action to a party who otherwise lacks standing to 22
bring the action. 23
Any attorney's fees assessed against an agency under this section shall be charged against the 24
operating expenses of the agency and shall not be reimbursed from any other source." 25
SECTION 1.(b) Subsection (a) of this section applies to contested cases arising on 26
or after January 1, 2026. 27
SECTION 2.(a) G.S. 7A-29(a) reads as rewritten: 28
"(a) From any final order or decision of the North Carolina Utilities Commission not 29
governed by subsection (b) of this section, the Department of Health and Human Services under 30
G.S. 131E-188(b), the North Carolina Industrial Commission, the North Carolina State Bar under 31
G.S. 84-28, the Property Tax Commission under G.S. 105-290 and G.S. 105-342, the 32
Commissioner of Insurance under G.S. 58-2-80, the State Board of Elections under 33
G.S. 163-127.6, the Office of Administrative Hearings under G.S. 126-34.02, or the Secretary of 34
Environmental Quality under G.S. 104E-6.2 or G.S. 130A-293, appeal as of right lies directly to 35
the Court of Appeals." 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 370-First Edition
SECTION 2.(b) Subsection (a) of this section applies to appeals arising on or after 1
January 1, 2026. 2
SECTION 3. G.S. 58-50-61(a) reads as rewritten: 3
"(a) Definitions. – As used in this section, in G.S. 58-50-62, and in Part 4 of this Article, 4
the term: 5
... 6
(7a) "Health care facility" means a hospital; long-term care hospital; psychiatric 7
facility; rehabilitation facility; nursing home facility; adult care home; kidney 8
disease treatment center, including freestanding hemodialysis units; 9
intermediate care facility for individuals with intellectual disabilities; home 10
health agency office; chemical dependency treatment facility; diagnostic 11
center; hospice office, hospice inpatient facility, or hospice residential care 12
facility; or ambulatory surgical facility. 13
(8) "Health care provider" means any person who is licensed, registered, or 14
certified under Chapter 90 of the General Statutes or the laws of another state 15
to provide health care services in the ordinary care of business or practice or 16
a profession or in an approved education or training program; a health care 17
facility as defined in G.S. 131E-176(9b) this section or the laws of another 18
state to operate as a health care facility; or a pharmacy. 19
...." 20
SECTION 4. G.S. 58-55-35(a) reads as rewritten: 21
"(a) Whenever long-term care insurance provides coverage for the facilities, services, or 22
physical or mental conditions listed below, unless otherwise defined in the policy and certificate, 23
and approved by the Commissioner, the facilities, services, or conditions have the following 24
definitions: 25
... 26
(10) Hospice. – As defined in G.S. 131E-176(13a).Any coordinated program of 27
home care with provision for inpatient care for terminally ill patients and their 28
families. This care is provided by a medically directed interdisciplinary team 29
direct

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