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§ 131D-2.4. Licensure of adult care homes for aged and disabled individuals; impact of prior violations on licensure; compliance history review; license renewal.

§ 131D‑2.4.  Licensureof adult care homes for aged and disabled individuals; impact of priorviolations on licensure; compliance history review; license renewal.

(a)        Licensure. – Exceptfor those facilities exempt under G.S. 131D‑2.3, the Department of Healthand Human Services shall inspect and license all adult care homes. TheDepartment shall issue a license for a facility not currently licensed as anadult care home for a period of six months. If the licensee demonstratessubstantial compliance with Articles 1 and 3 of this Chapter and rules adoptedthereunder, the Department shall issue a license for the balance of thecalendar year.

(b)        Compliance HistoryReview. – Prior to issuing a new license or renewing an existing license, theDepartment shall conduct a compliance history review of the facility and itsprincipals and affiliates. The Department may refuse to license a facility whenthe compliance history review shows a pattern of noncompliance with State lawby the facility or its principals or affiliates, or otherwise demonstratesdisregard for the health, safety, and welfare of residents in current or pastfacilities. The Department shall require compliance history information andmake its determination according to rules adopted by the Medical CareCommission.

(c)        Prior Violations. –No new license shall be issued for any adult care home to an applicant forlicensure who:

(1)        Was the owner,principal, or affiliate of a licensable facility under this Chapter, Chapter122C, or Article 7 of Chapter 110 of the General Statutes that had its licenserevoked until one full year after the date of revocation;

(2)        Is the owner,principal, or affiliate of an adult care home that was assessed a penalty for aType A or Type B violation until the earlier of one year from the date thepenalty was assessed or until the home has substantially complied with thecorrection plan established pursuant to G.S. 131D‑34 and substantialcompliance has been certified by the Department;

(3)        Is the owner,principal, or affiliate of an adult care home that had its license summarilysuspended or downgraded to provisional status as a result of Type A or Type Bviolations until six months from the date of reinstatement of the license,restoration from provisional to full licensure, or termination of theprovisional license, as applicable; or

(4)        Is the owner,principal, or affiliate of a licensable facility that had its license summarilysuspended or downgraded to provisional status as a result of violations underthis Article or Chapter 122C of the General Statutes or had its licensesummarily suspended or denied under Article 7 of Chapter 110 of the GeneralStatutes until six months from the date of the reinstatement of the license,restoration from provisional to full licensure, or termination of theprovisional license, as applicable.

An applicant for new licensuremay appeal a denial of certification of substantial compliance undersubdivision (2) of this subsection by filing with the Department a request forreview by the Secretary within 10 days of the date of denial of thecertification. Within 10 days of receipt of the request for review, theSecretary shall issue to the applicant a written determination that eitherdenies certification of substantial compliance or certifies substantialcompliance. The decision of the Secretary is final.

(d)        License Renewals. –License renewals shall be valid for one year from the date of renewal unlessrevoked earlier by the Secretary for failure to comply with any part of thissection or any rules adopted hereunder. Licenses shall be renewed annually uponfiling and the Department's approval of the renewal application. The Departmentshall not renew a license if outstanding fees, fines, and penalties imposed bythe State against the home have not been paid. Fines and penalties for which anappeal is pending are exempt from consideration. The renewal application shallcontain all necessary and reasonable information that the Department mayrequire.

(e)        In order for anadult care home to maintain its license, it shall not hinder or interfere withthe proper performance of duty of a lawfully appointed community advisorycommittee, as defined by G.S. 131D‑31 and G.S. 131D‑32.

(f)         The Departmentshall not issue a new license for a change of ownership of an adult care homeif outstanding fees, fines, and penalties imposed by the State against the homehave not been paid. Fines and penalties for which an appeal is pending areexempt from consideration.  (2009‑462, s. 1(e).)

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