§ 122C-23. Licensure.
§ 122C‑23. Licensure.
(a) No person shallestablish, maintain, or operate a licensable facility for the mentally ill,developmentally disabled, or substance abusers without a current license issuedby the Secretary.
(b) Each license isissued to the person only for the premises named in the application and shallnot be transferrable or assignable except with prior written approval of theSecretary.
(c) Any person whointends to establish, maintain, or operate a licensable facility shall apply tothe Secretary for a license. The Secretary shall prescribe by rule the contentsof the application forms.
(d) The Secretary shallissue a license if the Secretary finds that the person complies with thisArticle and the rules of the Commission and Secretary.
(e) Initial licensesissued under the authority of this section shall be valid for not more than 15months. Licenses shall be renewed annually thereafter and shall expire at theend of the calendar year. The expiration date of a license shall be specifiedon the license when issued. Renewal of a regular license is contingent uponreceipt of information required by the Secretary for renewal and continuedcompliance with this Article and the rules of the Commission and the Secretary.Licenses for facilities that have not served any clients during the previous 12months are not eligible for renewal.
The Secretary may issue aprovisional license for a period up to six months to a person obtaining theinitial license for a facility. The licensee must demonstrate substantialcompliance prior to being issued a full license.
A provisional license for aperiod not to exceed six months may be granted by the Secretary to a person whois temporarily unable to comply with a rule when the noncompliance does notpresent an immediate threat to the health and safety of the individuals in thelicensable facility. During this period the licensable facility shall correctthe noncompliance based on a plan submitted to and approved by the Secretary. Aprovisional license for an additional period of time to meet the noncompliancemay not be issued.
(e1) Except as providedin subsection (e2) of this section, the Secretary shall not enroll any newprovider for Medicaid Home or Community Based services or other Medicaidservices, as defined in 42 C.F.R. 440.90, 42 C.F.R. 440.130(d), and 42 C.F.R.440.180, or issue a license for a new facility or a new service to anyapplicant meeting any of the following criteria:
(1) The applicant wasthe owner, principal, or affiliate of a licensable facility under Chapter 122C,Chapter 131D, or Article 7 of Chapter 110 that had its license revoked until 60months after the date of the revocation.
(2) The applicant is theowner, principal, or affiliate of a licensable facility that was assessed apenalty for a Type A or Type B violation under Article 3 of this Chapter, orany combination thereof, and any one of the following conditions exist:
a. A single violationhas been assessed in the six months prior to the application.
b. Two violations havebeen assessed in the 18 months prior to the application and 18 months have notpassed from the date of the most recent violation.
c. Three violationshave been assessed in the 36 months prior to the application and 36 months havenot passed from the date of the most recent violation.
d. Four or moreviolations have been assessed in the 60 months prior to application and 60months have not passed from the date of the most recent violation.
(3) The applicant is theowner, principal, or affiliate of a licensable facility that had its licensesummarily suspended or downgraded to provisional status as a result ofviolations under G.S. 122C‑24.1(a) until 60 months after the date ofreinstatement or restoration of the license.
(4) The applicant is theowner, principal, or affiliate of a licensable facility that had its licensesummarily suspended or downgraded to provisional status as a result ofviolations under Article 1A of Chapter 131D until 60 months after the date ofreinstatement or restoration of the license.
(e2) The Secretary mayenroll a provider described in subsection (e1) of this section if any of thefollowing circumstances apply:
(1) The applicant is anarea program or county program providing services under G.S. 122C‑141,and there is no other provider of the service in the catchment area.
(2) The Secretary findsthat the area program or county program has shown good cause by clear andconvincing evidence why the enrollment should be allowed.
(e3) For purposes ofsubdivision (e1)(2), fines assessed prior to October 23, 2002, are notapplicable to this provision. However, licensure or enrollment shall be deniedif an applicant's history as a provider under Chapter 131D, Chapter 122C, orArticle 7 of Chapter 110 is such that the Secretary has concluded the applicantwill likely be unable to comply with licensing or enrollment statutes, rules,or regulations. In the event the Secretary denies licensure or enrollment underthis subsection, the reasons for the denial and appeal rights pursuant toArticle 3 of Chapter 150B shall be given to the provider in writing.
(f) Upon writtenapplication and in accordance with rules of the Commission, the Secretary mayfor good cause waive any of the rules implementing this Article, provided thoserules do not affect the health, safety, or welfare of the individuals withinthe licensable facility. Decisions made pursuant to this subsection may beappealed to the Commission for a hearing in accordance with Chapter 150B of theGeneral Statutes.
(g) The Secretary maysuspend the admission of any new clients to a facility licensed under thisArticle where the conditions of the facility are detrimental to the health orsafety of the clients. This suspension shall be for the period determined bythe Secretary and shall remain in effect until the Secretary is satisfied thatconditions or circumstances merit removal of the suspension. In suspendingadmissions under this subsection, the Secretary shall consider the followingfactors:
(1) The degree ofsanctions necessary to ensure compliance with this section and rules adopted toimplement this subsection, and
(2) The character anddegree of impact of the conditions at the facility on the health or safety ofits clients.
A facility may contest asuspension of admissions under this subsection in accordance with Chapter 150Bof the General Statutes. In contesting the suspension of admissions, thefacility must file a petition for a contested case within 20 days after theDepartment mails notice of suspension of admissions to the licensee.
(h) The Departmentshall charge facilities licensed under this Chapter a nonrefundable annual baselicense fee plus a nonrefundable annual per‑bed fee as follows:
Type of Facility Numberof Beds Base Fee Per‑Bed Fee
Facilities (non‑ICF/MR): 0beds $215.00 $0
1 to 6 beds $305.00 $0
More than 6 beds $475.00 $17.50
ICF/MR Only: 1to 6 beds $845.00 $0
More than 6 beds $800.00 $17.50
(i) (Applicable tosocial setting detoxification facilities licensed on and after August 7, 2003)A social setting detoxification facility or medical detoxification facilitysubject to licensure under this Chapter shall not deny admission or treatmentto an individual based solely on the individual's inability to pay. (1899, c. 1, s. 60; Rev., s.4600; C.S., s. 6219; 1945, c. 952, s. 41; 1957, c. 100, ss. 1, 4; 1963, c. 813,s. 1; c. 1166, s. 7; 1965, c. 1178, ss. 1‑3; 1969, c. 954; 1973, c. 476,ss. 133, 152; 1977, c. 679, s. 7; 1981, c. 51, s. 3; 1983, c. 718, ss. 1, 4;1985, c. 589, s. 2; 1985 (Reg. Sess., 1986), c. 863, s. 8; 1987, c. 345, ss. 3,4; 1989, c. 625, s. 6; 2000‑55, s. 3; 2002‑164, s. 4.1; 2003‑284,s. 34.8(a); 2003‑294, s. 2; 2003‑390, s. 3; 2005‑276, ss.41.2(h), 10.40A(d); 2006‑66, s. 10.23; 2009‑451, s. 10.76(f).)