Section 11-186-4 - Total capital expenditure(a) For purposes of computing the amount of the total capital expenditure: (1) The total cost f all items to be obligated for or purchased within a twelve month period for a program, service, plan, or project, regardless of whether or not the cost of any individual item is in excess of the expenditure minimum, is included in the computation; (2) The cost of equipment which is not used for diagnosis or treatment, and which does not exceed the expenditure minimum for a single item or for a system, such as office equipment, usual business equipment, and office and waiting room furniture, is exempt from the computation;(3) The cost of normal inventories of supplies such as glassware, chemicals, drugs, linens, and paper, is exempt from the computation;(4) In the case of the acquisition of equipment or capital items, the cost of installation and the cost of initial training and instruction attendants to the use of the equipment or capital items are included in the computation; and(5) In the case of the acquisition of equipment or capital items, the operating costs beyond the cost of installation and the cost of initial training and instruction attendant to the use of the equipment or capital items are exempt from the computation. (b) An obligation for a capital expenditure shall be deemed to have been incurred by or on behalf of a health care facility or health maintenance organization: (1) When an enforceable contract is entered into by the facility or organization or by a person proposing the capital expenditure on behalf of the facility or organization for the construction, acquisition, lease, or financing of a capital asset; or(2) Upon the formal internal commitment of fund by the facility or organization for a force account expenditure which constitutes a capital expenditure; or(3) In the case of donated property, the date on which the gift vested.(c) Studies, surveys, plans, schematic designs, and preliminary designs for a project shall not require a certificate of need unless or until their total cost for the project exceeds the expenditure minimum for capital expenditures.(d) Final designs or working drawings, regardless of cost, shall require a certificate of need if the facility being designed may result in a total capital expenditure in excess of the expenditure minimum for capital expenditures.(e) If a single project or the substantial equivalent of a single project is divided into separate components, so that the project or any component does not require a total capital expenditure in excess of the expenditure minimum, the agency may combine the components for purposes of computing the amount of the total capital expenditure and may treat the combined components as a single project. [Eff. FEB 09, 1981] (Auth: HRS Sec. 323D-62) (Imp: HRS Sec. 323D-43)