Connecticut Hospital Ass'n v. Commission on Hospitals & Health Care

509 A.2d 1050, 200 Conn. 133, 1986 Conn. LEXIS 845
CourtSupreme Court of Connecticut
DecidedJune 3, 1986
Docket12653
StatusPublished
Cited by75 cases

This text of 509 A.2d 1050 (Connecticut Hospital Ass'n v. Commission on Hospitals & Health Care) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connecticut Hospital Ass'n v. Commission on Hospitals & Health Care, 509 A.2d 1050, 200 Conn. 133, 1986 Conn. LEXIS 845 (Colo. 1986).

Opinion

Callahan, J.

The plaintiffs, thirty-four hospitals in Connecticut1 (hereinafter hospitals), have appealed from a judgment of the Superior Court rendered in favor of the defendant commission on hospitals and health care (hereinafter commission). The hospitals claim that the trial court erred: (1) by applying improper standards in its review of the declaratory ruling issued by the commission; and (2) by failing to reverse the declaratory ruling of the commission and to hold that the commission has no authority to regulate capital expenditures that are under the statutory threshold dollar amounts set forth in General Statutes § 19a-155. We find no error.

On September 23, 1982, the hospitals filed with the commission a petition for a declaratory ruling on three questions pursuant to General Statutes (Rev. to 1981) § 4-176,2 a statement in support of the petition and an [135]*135appendix. The commission voted to consider the petition and held a hearing on December 15,1982, at which the hospitals presented evidence and testimony in support of the requested ruling. Subsequent to that hearing, the enactment of Public Acts 1983, No. 83-215 (now General Statutes §§ 19a-154 and 19a-155), effective on May 26,1983, caused the first two questions raised by the hospitals in the petition to become moot. The only issue raised by the request for a declaratory ruling which has not become moot and the only issue we will consider involves the extent of the commission’s jurisdiction over capital expenditures. On that issue, the hospitals sought the following declaratory ruling: "[A] capital expenditures budget submitted to the Commission in accordance with the provisions of Section 19-73o (a) [now Section 19a-156 (a)] does not prevent a hospital desiring to undertake additional capital expenditures (not in its capital expenditures budget and not exceeding the minimum jurisdictional dollar amounts set forth in Section 19~73m [now Section 19a-155]), from freely undertaking such additional capital expenditures without Commission review or approval unless they are undertaken in conjunction with new services or functions subject to Commission approval under Section 19-731 [now Section 19a-154] of the Connecticut General Statutes.” The commission issued its declaratory ruling on September 13, 1983, in which it rejected the hospitals’ requested ruling and held that commission approval is required for any capital expenditures, as defined in the regulations, which are not in the approved capital budget, regardless of whether or not the amount of such expenditure falls below the threshold of General Statutes § 19a-155. The hospitals appealed this decision. On November 27, [136]*1361984, the trial court, Mack, J., issued a memorandum of decision affirming the commission’s declaratory ruling.

The question at issue arises out of the language contained in General Statutes §§ 19a-1563 and 19a-155.4 [137]*137General Statutes § 19a-155 provides in relevant part: “(a) . . . [A]ny health care facility or institution . . . proposing a capital expenditure exceeding six hundred thousand dollars, or the acquisition of major medical equipment having a cost exceeding four hundred thou[138]*138sand dollars, including the leasing of equipment or a facility, which expenditure was not included in a budget approved under section 19a-156, shall submit a request for approval of such expenditure to the commission . . . . ” General Statutes § 19a-156 provides in relevant part: “(a) Every hospital . . . shall submit annually to the commission its proposed operating and [139]*139capital expenditures budget for its next fiscal year .... The commission shall review such proposed budget and may, with the consent of the facility or institution, informally discuss such budget with representatives of the facility or institution. The commission shall notify the facility or institution of its approval, denial or modification of such budget not later than forty-five days before such proposed adoption date. . . . [T]he commission shall order the institution to adopt a budget which the commission deems acceptable for the coming fiscal period. . . . (c) In the event of unforeseen and material changes in circumstances during any fiscal year, any hospital or health care facility or institution which has submitted a budget to the commission pursuant to the provisions of this section may submit a proposed revised budget to said commission pursuant to regulations adopted by the commission.”

“There are clear indications in the Uniform Administrative Procedure Act (UAPA); General Statutes §§ 4-166—4-189; that the legislature intended that the administrators issue declaratory rulings based on their interpretations of statutes.” Connecticut Life & Health Ins. Guaranty Assn. v. Jackson, 173 Conn. 352, 356, 377 A.2d 1099 (1977). The commission therefore was correct in giving its interpretation of whether General Statutes §§ 19a-155 and 19a-156 provide that additional capital expenditures which are not in the capital expenditures budget and which do not exceed the threshold amounts under § 19a-155 can be freely undertaken without review or approval by the commission.

We first address whether the Superior Court applied the proper standards in its review of the declaratory ruling issued by the commission. General Statutes § 4-183 (g) allows judicial modification of a decision of an administrative agency “if substantial rights of the appellant have been prejudiced because the adminis[140]*140trative findings, inferences, conclusions, or decisions are: (1) In violation of constitutional or statutory provisions; (2) in excess of the statutory authority of the agency; (3) made upon unlawful procedure; (4) affected by other error of law; (5) clearly erroneous in view of the reliable, probative, and substantial evidence on the whole record; or (6) arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.” The trial court appears to have focused its analysis on whether the commission’s declaratory ruling interpreting the statutes was clearly erroneous in view of the reliable, probative and substantial evidence on the whole record. We do not believe that review of the declaratory ruling should have been so limited. “Although the factual and discretionary determinations of administrative agencies are to be given considerable weight by the courts; see General Statutes § 4-183 (g); Board of Aldermen v. Bridgeport Community Antennae Television Co., 168 Conn. 294, 298-99, 362 A.2d 529 (1975); Westport v. Norwalk, 167 Conn. 151, 355 A.2d 25 (1974); 2 Am. Jur. 2d, Administrative Law §§ 645, 675; it is for the courts, and not for administrative agencies, to expound and apply governing principles of law. N.L.R.B. v. Brown, 380 U.S. 278, 291, 85 S. Ct. 980, 13 L. Ed. 2d 839 (1965); International Brotherhood of Electrical Workers v. N.L.R.B., 487 F.2d 1143, 1170-71 (D.C. Cir. 1973), aff’d sub nom. Florida Power & Light Co. v.

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Bluebook (online)
509 A.2d 1050, 200 Conn. 133, 1986 Conn. LEXIS 845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connecticut-hospital-assn-v-commission-on-hospitals-health-care-conn-1986.