Alexander Rand Alzheimer's Center v. Ohio Certificate of Need Review Board

594 N.E.2d 119, 72 Ohio App. 3d 161, 1991 Ohio App. LEXIS 153
CourtOhio Court of Appeals
DecidedJanuary 15, 1991
DocketNo. 90AP-744.
StatusPublished
Cited by1 cases

This text of 594 N.E.2d 119 (Alexander Rand Alzheimer's Center v. Ohio Certificate of Need Review Board) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander Rand Alzheimer's Center v. Ohio Certificate of Need Review Board, 594 N.E.2d 119, 72 Ohio App. 3d 161, 1991 Ohio App. LEXIS 153 (Ohio Ct. App. 1991).

Opinion

Hooper, Judge.

On June 16, 1986, the Alexander Rand Alzheimer’s Center (appellant) filed with the Ohio Department of Health (“ODH”) a certificate of need (“CON”) project application to construct a one-hundred bed nursing home facility in Stark County, Ohio. This application was filed pursuant to Am.Sub.S.B. No. 256, effective June 7, 1986.

On July 9, 1986, ODH requested additional information to enable it to declare the application complete.

In the meantime, Am.H.B. No. 301 was enacted and became effective September 28, 1987. Section 1 of Am.H.B. No. 301 amended Section 3 of Am.Sub.S.B. No. 256, and Section 2 of Am.H.B. No. 301 repealed the existing Section 3 of Am.Sub.S.B. No. 256.

On October 19,1988, appellant responded with the information requested by ODH on July 9, 1986. On August 29, 1988, ODH requested additional information and this information was furnished January 10, 1989.

*163 On January 25,1989, ODH declared the application complete, evaluating the application under the criteria established under Am.H.B. No. 301 effective at the time the application was declared complete.

Appellant, pursuant to R.C. 3702.58, timely filed its appeal and a hearing was conducted with the hearing examiner filing a written report of findings of fact and conclusions of law and recommendations to be taken by the Certificate of Need Review Board (“board”). The board, pursuant to R.C. 3702.-58(D), took no action and the decision of the Director of Health was considered final. It is from that decision that appellant has perfected its appeal to this court pursuant to R.C. 3702.58(E).

Part (A) of assignment of error number one asserts the following:

“The CON Review Board order adopts ODH’s erroneous interpretation of the effect of Am.H.B. 301 on Am.Sub.S.B. 256, which interpretation is incorrect, contrary to law and constitutes a retroactive application of law in violation of both the United States and Ohio Constitutions.”

Appellant premises this assignment of error on what it perceives to be a retroactive application of the criteria of Am.H.B. No. 301 to its CON application contra to the mandates of R.C. 1.48 and Section 28, Article II, Ohio Constitution, which prohibit the enactment of retroactive laws. Appellant’s argument in support of this theory must necessarily turn on its assertion that the filing date of the application and the fact that the application was pending at the time that Am.Sub.S.B. No. 256 was controlling should be dispositive of the application.

The appellant urges that in applying for a CON under Am.Sub.S.B. No. 256, the appellant relied upon its understanding that the ODH would continue to use the special review criteria contained in Am.Sub.S.B. No. 256 to evaluate its application, and that ODH’s application of Am.H.B. No. 301 without notifying appellant of its intention to do so was a retroactive application of that law.

It appears that appellant’s position is that the policy of ODH, at an earlier date, was to permit applications to pend indefinitely. While this procedure was subsequently modified by a rule limiting the period, appellant argues that what was the law in existence at the time of filing the application should govern regardless of when the application was declared complete since no cut-off date existed for declaring an application complete.

This court does not agree. Section 3(B), Am.Sub.S.B. No. 256, reads as follows:

*164 “The procedure for determining applications to be approved pursuant to this section shall be based upon the original date such application was declared complete * * (Emphasis added.)

Section 3(C), Am.Sub.S.B. No. 256 as amended, was unchanged and still provided that the procedure for determining applications to be approved was determined by the original date the application was declared complete. The appellant cannot be heard to say that it was unaware of this criterion for determining approval of the application since it was the original criterion under Am.Sub.S.B. No. 256 and unchanged by Am.H.B. No. 301.

However, the fact that Am.H.B. No. 301 became effective in September 1987 (and it is presumed that appellant is aware of the legislative changes that affect the CON applications) deprives appellant of any basis to rely upon the prior statute which was repealed. Since Section 3 of Am.Sub.S.B. No. 256 no longer existed after September 28, 1987, any reliance by appellant upon that section would be misplaced.

The parties have agreed that if Am.Sub.S.B. No. 256 controls the evaluation of appellant’s application, then the decision of the ODH must be reversed. Conversely, if Am.H.B. No. 301 controls, said order must be affirmed.

This court finds that the controlling element in this case is the statutory requirement of the date that the application was declared complete. That date, January 25,1989, fell within the special criteria required by Am.H.B. No. 301 and, admittedly, appellant’s application was deficient in two significant aspects of complying with that statute and the ODH necessarily was required to deny the application.

Both appellant and appellee cite Anderson v. Blum (1981), 80 A.D.2d 674, 436 N.Y.S.2d 378, in support of their respective positions. As correctly stated by appellant, “ * * * the very reason that the court arrived at this result [permitting the use of the criteria contained in the new statute] was that the use of the new review criteria was part of an articulated and published law, accessible to all. * * * ” (Emphasis added.) That is precisely the status of this case. Am.H.B. No. 301 was enacted and became effective sixteen months prior to the determination by ODH that appellant’s application was complete. There was no application of policy on the part of the ODH which would contravene the existing statute. Regardless of the policy followed by ODH, it must conform to law and the existing law at that time was contained in Am.H.B. No. 301 and, if appellant’s application did not meet that criterion, it must necessarily fail.

Part (A) of assignment of error number one is overruled.

Part (B) of assignment of error number one states:

*165 “The provisions of R.C. § 3702.58(D) which permit the CON Review Board to adopt the decision of the director of health without approving, disapproving or modifying the hearing examiner’s report violates the United States and Ohio Constitutions and deprives appellant of its procedural due process rights.”

Appellant claims that R.C. 3702.58(D) and, more particularly, the provision that “ * * * if a majority of the members of the board, after due consideration and deliberation, fails to approve or disapprove the decision of the hearing examiner * * *, the decision or ruling of the director of health shall be considered as the final decision or order of the board * * violate appellant’s constitutional rights. As correctly stated by appellee, the issue presented by this assignment of error is a pure question of law and not dependent upon any factfinding of the appellee board.

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Bluebook (online)
594 N.E.2d 119, 72 Ohio App. 3d 161, 1991 Ohio App. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-rand-alzheimers-center-v-ohio-certificate-of-need-review-board-ohioctapp-1991.