§ 58-67-165. Penalties and enforcement.
§ 58‑67‑165. Penalties and enforcement.
(a) The Commissionermay, in addition to or in lieu of suspending or revoking a license under G.S.58‑67‑140, proceed under G.S. 58‑2‑70, provided thatthe health maintenance organization has a reasonable time within which toremedy the defect in its operations that gave rise to the procedure under G.S.58‑2‑70.
(b) Any person whoviolates this Article or any other provision of this Chapter that expresslyapplies to health maintenance organizations shall be guilty of a Class 1misdemeanor.
(c) (1) Ifthe Commissioner shall for any reason have cause to believe that any violationof this Article or any other provision of this Chapter that expressly appliesto health maintenance organizations has occurred or is threatened, theCommissioner may give notice to the health maintenance organization and to therepresentatives or other persons who appear to be involved in such suspectedviolation to arrange a conference with the alleged violators or theirauthorized representatives for the purpose of attempting to ascertain the factsrelating to such suspected violation, and, in the event it appears that anyviolation has occurred or is threatened, to arrive at an adequate and effectivemeans of correcting or preventing such violation.
(2) Proceedings underthis subsection shall not be governed by any formal procedural requirements,and may be conducted in such manner as the Commissioner may deem appropriateunder the circumstances.
(d) (1) TheCommissioner may issue an order directing a health maintenance organization ora representative of a health maintenance organization to cease and desist fromengaging in any act or practice in violation of the provisions of this Articleor any other provision of this Chapter that expressly applies to healthmaintenance organizations.
(2) Within 30 days afterservice of the cease and desist order, the respondent may request a hearing onthe question of whether acts or practices have occurred that are in violationof this Article or any other provision of this Chapter that expressly appliesto health maintenance organizations. The hearing shall be conducted underArticle 3A of Chapter 150B of the General Statutes, and judicial review shallbe available as provided by Article 4 of Chapter 150B of the General Statutes.
(e) In the case of anyviolation of the provisions of this Article or any other provision of thisChapter that expressly applies to health maintenance organizations, if theCommissioner elects not to issue a cease and desist order, or in the event ofnoncompliance with a cease and desist order issued under subsection (d) of thissection, the Commissioner may institute a proceeding to obtain injunctiverelief, or seeking other appropriate relief, in the Superior Court of WakeCounty. (1977,c. 580, s. 1; 1979, c. 876, s. 1; 1985, c. 666, s. 52; 1987, c. 827, s. 1;1993, c. 539, s. 470; 1994, Ex. Sess., c. 24, s. 14(c); 2001‑5, s. 1.)