§ 131E-190. Enforcement and sanctions.
§ 131E‑190. Enforcement and sanctions.
(a) Only those new institutional health services which are foundby the Department to be needed as provided in this Article and grantedcertificates of need shall be offered or developed within the State.
(b) No formal commitments made for financing, construction, oracquisition regarding the offering or development of a new institutional healthservice shall be made by any person unless a certificate of need for suchservice or activities has been granted.
(c) Repealed by Session Laws 1993, c. 7, s. 11.
(d) If any person proceeds to offer or develop a newinstitutional health service without having first obtained a certificate ofneed for such services, the penalty for such violation of this Article andrules hereunder may include the withholding of federal and State funds underTitles V, XVIII, and XIX of the Social Security Act for reimbursement ofcapital and operating expenses related to the provision of the newinstitutional health service.
(e) The Department may revoke or suspend the license of anyperson who proceeds to offer or develop a new institutional health servicewithout having first obtained a certificate of need for such services.
(f) The Department may assess a civil penalty of not more thantwenty thousand dollars ($20,000) against any person who knowingly offers ordevelops any new institutional health service within the meaning of thisArticle without a certificate of need issued under this Article and the rulespertaining thereto, or in violation of the terms or conditions of such acertificate, whenever it determines a violation has occurred and each time theservice is provided in violation of this provision. In determining the amountof the penalty the Department shall consider the degree and extent of harmcaused by the violation and the cost of rectifying the damage. A person who isassessed a penalty shall be notified of the penalty by registered or certifiedmail. The notice shall state the reasons for the penalty. If a person fails topay a penalty, the Department shall refer the matter to the Attorney Generalfor collection. For the purpose of this subsection, the word "person"shall not include an individual in his capacity as an officer, director, oremployee of a person as otherwise defined in this Article.
The clear proceeds of penalties provided for in this subsection shallbe remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S.115C‑457.2.
(g) No agency of the State or any of its political subdivisionsmay appropriate or grant funds or financially assist in any way a person,applicant, or facility which is or whose project is in violation of thisArticle.
(h) If any person proceeds to offer or develop a newinstitutional health service without having first obtained a certificate ofneed for such services, the Secretary of Health and Human Services or anyperson aggrieved, as defined by G.S. 150B‑2(6), may bring a civil actionfor injunctive relief, temporary or permanent, against the person offering,developing or operating any new institutional health service. The action may bebrought in the superior court of any county in which the health servicefacility is located or in the superior court of Wake County.
(i) If the Department determines that the recipient of a certificateof need, or its successor, is operating a service which materially differs fromthe representations made in its application for that certificate of need, theDepartment may bring an action in Wake County Superior Court or the superiorcourt of any county in which the certificate of need is to be utilized forinjunctive relief, temporary or permanent, requiring the recipient, or itssuccessor, to materially comply with the representations in its application.The Department may also bring an action in Wake County Superior Court or thesuperior court of any county in which the certificate of need is to be utilizedto enforce the provisions of this subsection and G.S. 131E‑181(b) and therules adopted in accordance with this subsection and G.S. 131E‑181(b). (1977, 2nd Sess., c. 1182, s. 2; 1981, c. 651, s. 13;1983, c. 775, s. 1; 1985 (Reg. Sess., 1986), c. 968, s. 2; 1987, c. 511, s. 1;1991, c. 692, s. 9; 1993, c. 7, s. 11; 1997‑443, s. 11A.118(a); 1998‑215,s. 80.)