A. The department shall establish fees for initial licensure and license renewal of a sober living home and a fee for the late payment of licensing fees that includes a grace period. The department shall deposit, pursuant to sections 35-146 and 35-147, ninety percent of the fees collected pursuant to this section in the health services licensing fund established by section 36-414 and ten percent of the fees collected pursuant to this section in the state general fund.
B. On a determination by the director that there is reasonable cause to believe a sober living home is not adhering to the requirements of this article or the rules adopted pursuant to this article, the director and any duly designated employee or agent of the director may enter on and into the premises of any sober living home that is licensed or required to be licensed pursuant to this article at any reasonable time for the purpose of determining the state of compliance with this article, the rules adopted pursuant to this article and local fire ordinances or rules. Any application for licensure or license renewal under this article constitutes permission for and complete acquiescence in any entry or inspection of the premises during the pendency of the license application or license renewal and, if licensed, during the term of the license.
C. Except as provided in section 36-2064, The department or its third-party contractor shall conduct a physical, on-site inspection of a sober living home to verify compliance with the requirements of this article and the rules adopted pursuant to this article at the following times:
1. Before issuing an initial license or approving any proposed change in the maximum number of residents or any construction of or modification to a sober living home. Applicants are not allowed to self-attest to compliance in lieu of this inspection.
2. At least annually for each sober living home.
3. On a determination by the director that there is reasonable cause to believe that a sober living home is not adhering to the requirements of this article or the rules adopted pursuant to this article.
4. On notification by a sober living home pursuant to subsection K of this section that the sober living home believes it is in substantial compliance with this article and the rules adopted pursuant to this article.
D. After receiving a complaint that identifies an alleged violation of this article or the rules adopted pursuant to this article, the department or its third-party contractor shall investigate the sober living home that is the subject of the complaint and shall conduct a physical inspection if requested by local law enforcement or if the director determines that there is reasonable cause to believe the sober living home is not adhering to the requirements of this article or the rules adopted pursuant to this article.
E. If an investigation or inspection of a sober living home reveals that a person has violated this article or the rules adopted pursuant to this article, the director may impose a civil penalty of not more than $1,000 for each violation, which may be assessed for each resident or person who the department determines was impacted by the violation. A person operating a sober living home in this state that has failed to obtain or maintain licensure of the sober living home shall pay an additional civil penalty of up to $1,000 for each violation. Each day that a violation occurs constitutes a separate violation. The director may issue a notice that includes the proposed amount of the civil penalty assessment. If a person requests a hearing to appeal an assessment, the director shall not take further action to enforce and collect the assessment until the hearing process is complete. The director shall impose a civil penalty only for those days for which the violation has been documented by the department.
F. In determining the amount of the civil penalty pursuant to subsection E of this section, the department shall consider all of the following:
1. Repeated violations of statutes or rules.
2. Patterns of noncompliance.
3. Types of violations.
4. The severity of violations.
5. The potential for and occurrences of actual harm, including to the sober living home's staff or residents.
6. Threats to health and safety, including to the sober living home's staff or residents.
7. The number of persons affected by the violations.
8. The number of violations.
9. The size of the facility.
10. The length of time that the violations have been occurring.
G. If a licensed or unlicensed sober living home has a business relationship with a person or entity that is found to be engaging in fraudulent, abusive or misleading health care-related practices, the sober living home is subject to civil penalties pursuant to this section, including license suspension or revocation. Each day a violation occurs constitutes a separate violation.
H. Subject to title 41, chapter 6, article 10, except as provided in subsection J of this section, the director may deny, revoke or suspend a sober living home license if any owner, officer, agent or employee of the sober living home does any of the following:
1. Violates this article or the rules adopted pursuant to this article.
2. Commits a felony under the laws of any state or of the United States arising out of or in connection with the operation of a sober living home. The record of conviction or a copy of the record certified by the clerk of the court or by the judge who sentenced the person is conclusive evidence of conviction.
3. Knowingly aids, allows or abets the submission of false or inaccurate information required by this article or the rules adopted pursuant to this article.
4. Violates the requirements for licensure of the sober living home pursuant to this article.
I. If a licensee or any owner, officer, agent or employee of a sober living home refuses to allow the department or its employee or agent to inspect the sober living home's premises, that action shall be deemed reasonable cause to believe that a substantial violation of subsection H, paragraph 1 of this section exists.
J. If the director reasonably believes that a violation of subsection H of this section has occurred and that the life or safety of the sober living home's residents or staff or the public is immediately threatened or affected, on written notice to the owner or agent of the sober living home, the director may order one or more of the following intermediate sanctions until the sober living home is in substantial compliance with this article and the rules adopted pursuant to this article:
1. The immediate restriction of the acceptance and reacceptance of residents to the sober living home.
2. The selected transfer of residents out of the sober living home.
3. The reduction of the sober living home's capacity.
4. The termination of any specific service, policy, procedure or practice of the sober living home.
K. A sober living home that is sanctioned pursuant to subsection J of this section shall notify the department in writing when the sober living home believes it is in substantial compliance with this article and the rules adopted pursuant to this article. On receipt of this notification the department shall conduct an inspection. If the department determines that the sober living home is in substantial compliance, the director shall immediately rescind the sanction or sanctions. If the department determines that the sober living home is not in substantial compliance, the sanction or sanctions shall remain in effect. At least fourteen days after the date of the inspection, the sober living home may again notify the department that the sober living home is in substantial compliance and the department shall conduct another inspection. If the department determines on the repeat inspection that the sober living home is still not in substantial compliance, the sanction or sanctions shall remain in effect. The sober living home may notify the department of substantial compliance not sooner than thirty days after the date of the last inspection. The sober living home shall make all notifications of substantial compliance by certified mail. The department shall conduct all inspections required by this subsection within fourteen days after receiving a notification of substantial compliance. If the department does not conduct an inspection within this time period, the sanction or sanctions have no further effect.
L. A licensee that is subject to an intermediate sanction ordered by the director pursuant to subsection J of this section may request a hearing to review the director's action. The licensee shall make this request in writing with the office of administrative hearings within ten days after receiving notice of the director's action. The office of administrative hearings shall conduct an administrative hearing within seven business days after the notice of appeal has been filed.
M. In addition to any other remedies prescribed in this article, the director may issue a cease and desist order against a sober living home that does not hold a current or valid license or that exceeds the scope of activities or services authorized by a license issued pursuant to this article. The attorney general or a county attorney may bring an action for an injunction to restrain the violation or to enjoin the future operation or maintenance of the sober living home until the sober living home complies with this article or the rules adopted pursuant to this article. Before issuing a cease and desist order or bringing an action for an injunction pursuant to this section, the department may issue to the owner or agent of the licensed or unlicensed sober living home a certified letter that states the factual basis for the department's belief that the sober living home is operating in violation of this article or the rules adopted pursuant to this article. The department may include in the certified letter a description of the enforcement options available to the department if the violation or violations continue.
N. If a political subdivision of this state requests an update from the department on the status of the investigation of a complaint filed by the political subdivision relating to a sober living home, the department shall notify the political subdivision of the status within five business days after the request. If requested by the political subdivision, the department shall provide to the political subdivision the findings of its investigation, including copies of investigative reports without personal identifying information of the sober living home residents.
O. The department may contract with a third party to assist the department with licensure, investigations and inspections, except that the department shall not contract with any owner, operator, administrator, accrediting body or association of sober living homes. Third-party contractors shall be paid from the health services licensing fund established by section 36-414.