2. a. In addition to the Department’s licensing authority, the department may assess and collect penalties against authorized providers or licensed providers for violating the provisions of N.J.A.C.10:44A-1.1 et seq., or this act or rules and regulations promulgated pursuant to this act. In determining the amount of the penalties assessed under this section, the department shall consider: whether the provider has had a history or pattern of repeated violations; the provider’s compliance with investigations and plans of correction; and whether the provider has taken adequate action to prevent future incidents.
b. Any person, firm, partnership, corporation, or association operating a residential setting without a license when a license is required or operating a day habilitation program without a certification, shall be:
(1) issued a written warning, for the first offense;
(2) subject to a penalty of not more than $10,000 for the second offense; and
(3) subject to a penalty of not more than $10,000 for the third and any subsequent offenses; in addition, the division may suspend payments to authorized providers for services provided in the unlicensed residential setting.
c. Any licensed provider that has been granted a second consecutive provisional license for the same licensed location shall be subjected to a penalty of not more than $10,000.
d. Any authorized provider or licensed provider who employs or fails to remove from employment a person who has been placed on the Central Registry of Offenders Against Individuals with Developmental Disabilities, established pursuant section 5 of P.L.2010, c.5 (C.30:6D-77), or included on the child abuse registry, established pursuant to section 4 of P.L.1971, c.437 (C.9:6-8.11), shall be subject to a penalty of not more than $10,000.
e. Any authorized provider or licensed provider who fails to conduct an initial or biannual criminal history record background check required pursuant to the provisions of section 2 of P.L.1999, c.358 (C.30:6D-64) shall be:
(1) required to implement a corrective action plan, as determined by the department, for the first offense;
(2) prohibited from accepting transfers and admissions until the provider meets the requirements of section 2 of P.L.1999, c.358 (C.30:6D-64), for the second offense; and
(3) subject to a penalty of not more than $10,000 per criminal history record background that is not completed for the third offense and any subsequent offenses.
f. Any authorized provider or licensed provider who fails to meet the requirements of drug testing for controlled dangerous substances in accordance with the provisions of section 5 of P.L.2017, c.238 (C.30:6D-9.5) shall be:
(1) required to implement a corrective action plan as determined by the department, for the first offense;
(2) prohibited from accepting transfers and admissions until the requirements of section 5 of P.L.2017, c.238 (C.30:6D-9.5) are met, for the second offense; and
(3) subject to a penalty of not more than $10,000 as provided for by regulation, for the third and any subsequent offenses.
g. Any authorized provider or licensed provider who receives a substantiated finding from the Office of Investigations in the Department of Human Services of a violation outlined in this subsection shall be subject to a penalty of not more than $25,000 per offense:
(1) administrative neglect that results in a moderate or major injury;
(2) abuse with a moderate injury;
(3) abuse with a major injury;
(4) neglect with a moderate injury;
(5) neglect with a major injury; or
(6) exploitation.
h. Any authorized provider or licensed provider, who fails to conduct an internal investigation of an allegation of abuse, neglect, or exploitation of an individual with a developmental disability and submit a complete report to the department within 180 days of the date of the alleged incident, shall be subject to a penalty of not more than $10,000 for each internal investigation the authorized provider or licensed provider fails to conduct. A report submitted in compliance with this subsection shall, at a minimum:
(1) be completed by an impartial person who is not directly involved in the incident being investigated;
(2) include interviews and interview summaries of all victims, perpetrators, witnesses, and collateral contacts;
(3) include a summary of physical and documentary evidence;
(4) include findings for each allegation, victim, and perpetrator;
(5) include a justification for each finding;
(6) include evidence that guardian notification was made at the onset of the investigation;
(7) include evidence that guardian notification was made at the completion of the investigation, which evidence shall include copies of written communication to the guardian providing the outcome of the investigation, including all findings, summaries, and actions taken; and
(8) document the completion of the investigation.
i. Any authorized provider or licensed provider, who fails to submit a plan of correction that addresses all cited violations and concerns to the department upon the completion of an investigation closed by the Office of Investigations in the Department of Human Services, shall be subject to a penalty of not more than $10,000.
j. Any authorized provider or licensed provider who demonstrates chronic noncompliance with health, safety, or quality requirements over an extended period of time and across multiple locations or programs may be assigned a Quality Management Team by the department and may be subject to a penalty of not more than $5,000 every three months until the Quality Management Team determines that the provider has demonstrated improvement in the metrics or actions.
k. Any authorized provider or licensed provider subject to penalties or termination of authorization pursuant to this act shall have the right to appeal such action.
l. Nothing in this act shall be construed to prevent the department from imposing a negative licensing action as defined in N.J.A.C.10:44A-1.8 et seq.
m. The division shall have the authority to terminate division authorization of an authorized provider for noncompliance with any provision of this act or any other division requirements and policies.
n. Nothing in this section is intended to supplant the department’s authority to take licensing action.