It is enacted by the General Assembly as follows
SECTION 1. Section 23-17-44 of the General Laws in Chapter 23-17 entitled "Licensing of Health Care Facilities" is hereby amended to read as follows:
  23-17-44.  Moratorium on new initial nursing facility licensed           
beds and on increases to the licensed capacity of existing nursing              
facility licenses. --    (1) The licensing agency shall issue no new             
initial licenses for nursing facilities prior to  {DEL January 1, 1998  DEL}             
{ADD  July 1, 1999  ADD} ; provided, however, that: (a) any person holding a             
previously issued and valid certificate of need as of the date of               
passage of this section shall be permitted to effect such prior                
certificate from the licensing agency consistent with such other                
statutory and regulatory provisions which may further apply; (b) any            
person holding a nursing facility license may undertake activities to           
construct and operate a replacement nursing facility with the same or           
lower bed capacity as is presently licensed provided that such                  
replacement facility may only be licensed upon the otherwise                    
unconditional cessation of operation of the previously licensed                 
nursing facility; and (c) any certificate of need application under             
active review before the state agency as of January 10, 1996 which              
application seeks approval of a proposal to establish a new nursing             
facility or seeks to increase the licensed bed capacity of an existing          
nursing facility shall continue to be reviewed under all the statutory          
and regulatory requirements in effect at the time such application was          
accepted for review by the state agency.                                        
(2) The licensing agency shall not increase the licensed bed               
capacity of any existing licensed nursing facility, including any               
nursing facility approved for change in ownership pursuant to section           
23-17-14 herein, except for the greater of ten (10) beds or ten                 
percent (10%) of the facility's licensed capacity prior to  {DEL January            
1, 1998  DEL}  {ADD  July 1, 1999  ADD} ; provided, however, that any person holding          
a previously issued and valid certificate of need as of the date of             
passage of this section or who shall subsequently be granted a                  
certificate of need pursuant to subsection (1) above shall be                   
permitted to effect such prior certificate from the licensing agency            
consistent with such other statutory and regulatory provisions which            
may further apply.                                                              
SECTION 2. This act shall take effect upon passage.