Senate committee substitute makes the following changes to the 2nd edition.

Changes the act's long title to AN ACT TO AMEND PENALTIES AND REMEDIES FOR FACILITIES LICENSED TO CARE FOR THE MENTALLY ILL, DEVELOPMENTALLY DISABLED, OR SUBSTANCE ABUSERS AND FOR ADULT CARE HOME FACILITIES; AND TO REMOVE THE SUNSET FOR PILOT PROGRAM TO STUDY THE USE OF ELECTRONIC SUPERVISION DEVICES IN CERTAIN FACILITIES.

Changes the short title.

Deletes all provisions of the previous edition and now provides as follows.

Section 1

Amends GS 122C-24.1, which sets out the penalties and remedies for facilities licensed to care for the mentally ill, developmentally disabled, or substance abusers, as follows.

Amends subsection (a), concerning the classification of violations and penalties assessed according to the nature of the violation of Article 2 (Licensure of Facilities for the Mentally Ill, the Developmentally Disabled, and Substance Abusers) or Article 3 (Clients' Rights and Advance Instruction) of GS Chapter 122C or applicable State or federal laws and regulations, as specified, by eliminating subdivision (1b), which defined Past Corrected Type A1 or Type A2 Violation and set out factors for the Department of Health and Human Services (Department) to consider in determining whether to assess a penalty.

Adds new subdivision (1c) to define substantial risk, as it is used in the statute, to mean the risk of an outcome that is substantially certain to materialize if immediate action is not taken.

Adds new subdivision (2a) to establish that a Type A1, Type A2, or Type B violation, as defined in subsection (a), cannot include a violation by a facility of the regulations, standards, and requirements set forth in Article 2 or 3 of GS Chapter 122C or applicable State or federal laws and regulations governing the licensure or certification of a facility if five criteria are met: (1) the violation was discovered by the facility; (2) the Department determines that the violation was abated immediately; (3) the violation was corrected prior to inspection by the Department; (4) the Department determines that reasonable preventative measures were in place prior to the violation; and (5) the Department determines that subsequent to the violation, the facility implemented corrective measures to achieve and maintain compliance.

Amends subsection (i) to provide that, in lieu of assessing all or some of the administrative penalty, the Secretary of the Department may order a facility to provide staff training, or consider the approval of training completed by the facility after the violation, if four criteria are met (previously, may order a facility to provide staff training if the training meets three specified criteria). Provides that (1) the training must be determined by the Department to be specific to the violation (previously, did not specify as determined by the Department), (2) the training must be approved by the Department, (3) the training must be taught by someone approved by the Department, and (4) the facility has corrected the violation and continues to remain in compliance with the regulation (previously, there was not a fourth requirement to require the facility to have corrected the violation and remain in compliance). Makes technical changes to subsection (i).

Section 2

Amends GS 131D-34, which sets out the penalties and remedies for facilities licensed to care for adult home care residents, as follows.

Amends subsection (a), concerning the classification of violations and penalties assessed according to the nature of the violation of the requirements of GS Chapter 131D-21 (the Declaration of residents' rights) or applicable State or federal laws and regulations, as specified, by eliminating subdivision (1b), concerning provisions on past corrected Type A1 or Type A2 violations, identical to those eliminated by the act in subdivision (1b) of GS 122C-24.1(a).

Adds new subdivision (1c) to define substantial risk, as it is used in the statute, to mean the risk of an outcome that is substantially certian to materialize if immediate action is not taken (identical to new subdivision (1c) of GS 122C-24.1(a), as enacted by the act).

Adds new subdivision (2a), to establish that a Type A1, Type A2, or Type B violation, as defined in subsection (a), cannot include a violation by a facility of the regulations, standards, and requirements set forth in GS 131D-21 or applicable State or federal laws and regulations governing the licensure or certification of a facility if five criteria are met, which are identical to the five criteria of new subdivision (2a) of GS 122C-24.1(a), described above.

Amends subsection (c1), which requires the Department to document the findings of facts supporting a penalty determination in a written record by eliminating the penalty review committee from the affected parties to which the Department is required to make the written record available (conforming change to the elimination of subsection (h), discussed below).

Amends subsection (f) to provide that any penalty imposed by the Department under the statute must commence on the date of the letter of notification of the penalty amount (previously, on the date the violation was identified).

Amends subsection (g1) to make identical changes as those made to GS 122C-24.1(i), allowing the Secretary of the Department to order a facility to provide staff training, or consider the approval of training completed by the facility after the violation, if four criteria, identical to those specified in GS 122C-24.1(i), are met, in lieu of assessing all or some administrative penalty.

Eliminates subsection (h), which directed the Secretary of the Department to establish a penalty review committee within the Department that was to review administrative penalties assessed pursuant to the statute and GS 131E-129, as specified.

Repeals SL 2015-264, Section 91.4(b), which provides a sunset provision of June 30, 2016, to Section 91.4(a) of SL 2015-264, which (1) continued and extended the pilot program established by the Department, Division of Health Service Regulation, to study the use of electronic supervision devices as an alternative means of supervision during sleeping hours at facilities for children and adolescents who have a primary diagnosis of mental illness and/or emotional disturbance and (2) waived the requirement of 10A NCAC 27G.1704, which establishes the minimum staffing requirements for residential treatment facilities for children and adolescents, with the Division reserving the right to rescind the waiver in certain circumstances, as specified.