Md. Code Regs. 10.07.14.61 - Criminal Penalties
A. Operating Without a License.
(1) A person may not knowingly and willfully operate, maintain, or own an assisted living program without a license.
(2) A person who violates §A(1) of this regulation is guilty of a felony and on conviction is subject to:
(a) For a first offense, a fine not exceeding $10,000, imprisonment not exceeding 5 years, or both; and
(b) For a subsequent offense, a fine not exceeding $20,000, imprisonment not exceeding 5 years, or both.
(3) If the Department finds a credible allegation that an assisted living program is operating without a license, the Department, or the Office of Health Care Quality, shall investigate whether residents in the assisted living program have been subjected to neglect, abuse, or financial exploitation.
(4) On receipt of a credible allegation, or after an investigation that results in a finding that residents in an unlicensed assisted living program have been subjected to neglect, abuse, or financial exploitation, the person operating the unlicensed program shall be subject to immediate prosecution under §A(2) of this regulation.
(5) If the person operating an unlicensed assisted living program fails or refuses to cooperate fully in an investigation by the Department, or the Office of Health Care Quality, conducted under §A(3) of this regulation, the person operating the unlicensed assisted living program shall be subject to immediate prosecution under §A(2) of this regulation.
(6) If the Department finds, after an investigation conducted under §A(3) of this regulation, that there is no reason to believe that residents in the assisted living program operating without a license have been subject to financial exploitation, neglect, or abuse:
(a) The Department shall provide written notice to the unlicensed assisted living program that the program shall come into compliance with licensure requirements within 30 days after receipt of the written notification; and
(b) The person operating the program may not be subject to prosecution under §A(2) of this regulation if the person:
(i) Has promptly and in good faith submitted a complete application to the Department for an assisted living program license;
(ii) Is awaiting a decision from the Department regarding the application; and
(iii) Has not been denied an assisted living program license on a prior occasion.
(7) In recommending the amount of the criminal penalty under §A(2) of this regulation, the State shall consider factors including the nature, number, and seriousness of the violations.
(8) The Department, the Attorney General, a State's Attorney, or a local health officer may petition a circuit court for injunctive relief against the operation of an assisted living program operating without a license.
(9) A violation of §A(1) of this regulation shall be a violation of the Consumer Protection Act.
B. Advertisement and Representation of an Assisted Living Program.
(1) A person may not advertise, represent, or imply to the public that an assisted living program is authorized to provide a service that the program is not licensed, certified, or otherwise authorized by the Department to provide when the license, certificate, or authorization is required under this subtitle.
(2) A person may not advertise an assisted living program in a misleading or fraudulent manner.
(3) A person who violates §B(1) of this regulation is subject to a civil money penalty imposed by the Secretary not exceeding $10,000 for each offense.
(4) In setting the amount of a civil money penalty on the program under §B(1) of this regulation, the Secretary shall consider factors including the nature, number, and seriousness of the violations and the ability of the assisted living program to pay the penalty.
C. Referral to an Assisted Living Program Operating Without a License.
(1) A person may not willfully and knowingly refer another person to an assisted living program that is operating without a license.
(2) A person who violates §C(1) of this regulation is subject to the following civil penalties:
(a) For a first offense, a civil penalty not exceeding $1,000;
(b) For a second offense, a civil penalty not exceeding $2,000; or
(c) For a third or subsequent offense, a civil penalty not exceeding $3,000.
(3) The Secretary shall remit all civil penalties collected under this regulation to the Office of Health Care Quality for the purposes of carrying out the provisions of Health-General Article, §19-1813, Annotated Code of Maryland.
Notes
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A. The Department shall establish a health care quality account in the Department for assisted living programs.
B. The health care quality account shall be funded by civil money penalties paid by assisted living programs.
C. The Department shall use funds from the health care quality account to improve the quality of care in assisted living programs.
D. Expenditure of funds may include, but is not limited to, the following:
(1) Funding for the establishment and operation of a demonstration project;
(2) A grant award;
(3) Relocation of residents in crisis situations;
(4) Provision of educational programs to assisted living programs, the Office of Health Care Quality, other government, professional, or advocacy agencies, and consumers; and
(5) Any other purpose that will directly improve quality of care.
E. Suggestions for the use of funds may be submitted to the Department from:
(1) Members of the public;
(2) Advocacy organizations;
(3) Government agencies;
(4) Professional organizations including trade associations;
(5) Assisted living programs; and
(6) Assisted living associations.
F. Decision on Expenditure of Funds.
(1) The Department , in its sole discretion, shall decide how to spend funds from the health care quality account.
(2) The Department 's decision to spend funds or not to spend funds for a specific project or purpose is not a contested case as defined in State Government Article, § 10-202(d), Annotated Code of Maryland, and therefore may not be appealed.