GONZÁLEZ, J.
¶ 1 Under Washington law, Department of Health approval is required for certain types of hospital ownership changes. We are asked today whether the department exceeded its authority when it, by rule, significantly expanded the types of ownership changes that require department approval. Finding that it did, we affirm.
¶ 2 The Washington Legislature enacted the certificate of need program in 1979 to "promote, maintain, and assure the health of all citizens in the state, provide accessible health services, health manpower, health facilities, and other resources while controlling increases in costs." RCW 70.38.015(1). Under this program, those seeking to enter the health care market have long been required to establish there is a need for their services. See Univ. of Wash. Med. Ctr. v. Dep't of Health, 164 Wn.2d 95, 100, 187 P.3d 243 (2008). The department administers the certificate of need program and is authorized to adopt rules to implement the certificate of need statute. RCW 70.38.105(1), .135(3)(c).
¶ 3 In 1984, the legislature adopted RCW 70.38.105(4)(b), which, in its current form, provides that certificate of need review is also triggered by
The terms "sale," "purchase," and "lease" are not defined in the statute.
¶ 4 To assist parties in determining whether a certificate of need is required for a transaction, parties may "submit a written request to the certificate of need program requesting a formal determination of applicability of the certificate of need requirements to the action." WAC 246-310-050(1). The department's responses to those requests are "binding upon the department" for that transaction. WAC 246-310-050(5). Since 1984, the department often ruled that a certificate of need is required for only "sale, purchase, or lease" transactions, not other forms of changes of control. In one such ruling, the department stated certificate of need
Clerk's Papers at 87. The department's interpretation of "sale, purchase, or lease," however, has not been uniform: the department issued several binding opinions that concluded "sale, purchase, or lease" did not extend to other forms of change of control, but the department also reviewed six hospital related mergers through the certificate of need process between 1979 and 1989.
¶ 5 On June 28, 2013, Governor Inslee, noting that the certificate of need process "has not kept current with the changes in the health care delivery system," directed the department to
Admin. Record (AR) at 1. The department initiated rule making on July 3, 2013. The department proposed an expansive rule defining "sale, purchase, or lease" of part or all of any existing hospital as "any transaction in which the control, either directly or indirectly, of part or all of any existing hospital changes to a different person including, but not limited to, by contract, affiliation, corporate membership restructuring, or any other transaction." Id. at 154 (underline omitted) (now codified at WAC 246-310-010(54)) (hereinafter New Rule). The department received over 1,000 comments on its proposal. In its response to the comments, the department explained that certificate of need review should be performed in relation to hospital transactions "regardless of the terms used in the transactional documents." Id. at 1188. After considering the comments, the department adopted the New Rule as proposed.
¶ 6 The Washington State Hospital Association (the Association) is a not-for-profit corporation that advocates for its members on issues that affect health care. Its members include 98 Washington hospitals, The Association challenged the New Rule in Thurston County Superior Court, arguing, among other things, that the department exceeded its statutory authority in promulgating the New Rule. The trial court found that the department exceeded its statutory authority in promulgating the New Rule and invalidated it on that basis without reaching the Association's other arguments. The department appealed directly to this court. We granted review. Order Granting Review, Wash. State Hosp. Ass'n v. Dep't of Health, No. 90486-3 (Dec. 3, 2014).
¶ 7 Our review is de novo because "[i]n reviewing administrative action, this court sits in the same position as the superior court." Tapper v. Emp't Sec. Dep't, 122 Wn.2d 397, 402, 858 P.2d 494 (1993) (citing Macey v. Dep't of Emp't Sec., 110 Wn.2d 308, 312, 752 P.2d 372 (1988)). We also review questions of statutory interpretation de novo. State v. Wentz, 149 Wn.2d 342, 346, 68 P.3d 282 (2003) (citing City of Pasco v. Pub. Emp't Relations Comm'n, 119 Wn.2d 504, 507, 833 P.2d 381 (1992)).
¶ 8 An agency's rules are presumed valid. St. Francis Extended Health Care v. Dep't of Soc. & Health Servs., 115 Wn.2d 690, 702, 801 P.2d 212 (1990). The Association bears the burden of proving that the New Rule is invalid. RCW 34.05.570(1)(a). The court may declare the New Rule invalid "only if it finds that: The rule violates constitutional provisions; the rule exceeds the statutory authority of the agency; the rule was adopted without compliance with statutory
¶ 9 We conclude the New Rule is invalid because it interprets terms in RCW 70.38.105(4)(b) in a manner that is too broad to be consistent with the statute. As we have recently summarized,
Swinomish Indian Tribal Cmty. v. Dep't of Ecology, 178 Wn.2d 571, 580-81, 311 P.3d 6 (2013) (alterations in original). The overriding purpose of the certificate of need program is to "`promote, maintain, and assure the health of all citizens in the state, [and] provide accessible health services, health manpower, [and] health facilities.'" Overlake Hosp. Ass'n v. Dep't of Health, 170 Wn.2d 43, 55, 239 P.3d 1095 (2010) (second alteration in original) (quoting RCW 70.38.015(1)). We acknowledge that the New Rule may further the purpose of the certificate of need program and that broad dictionary definitions of "sale" and "purchase"
¶ 10 We hold that the department exceeded its statutory authority in promulgating the New Rule and the New Rule is consequentially invalid. Accordingly, we affirm.
WE CONCUR: MADSEN, C.J., JOHNSON, FAIRHURST, OWENS, STEPHENS, WIGGINS, McCLOUD, and YU, JJ.