(b)

1. (1) For each measure a skilled nursing facility fails to meet or exceed in a single rating period, the department may assess a sanction of five dollars ($5) for each Medi-Cal bed day within the rating period.
2. (2) For each measure a skilled nursing facility fails to meet or exceed, the department shall not assess an aggregate sanction that exceed one hundred fifty thousand dollars ($150,000) in a single rating period.

(f) The department may waive all or a portion of the sanction assessed under this section if a facility petitions for a waiver and the department determines, in its sole discretion, that the petitioning facility meets both of the following:

1. (1) The facility has demonstrated to the department’s satisfaction that sufficient corrective action has been taken to remediate the underlying deficiency.
2. (2) The facility has demonstrated to the department’s satisfaction that imposing the full amount of the sanction under this section has a high likelihood of creating an undue financial hardship for that facility or creates a significant difficulty in providing services to Medi-Cal beneficiaries.

(h)

1. (1) If a facility disputes any sanction made pursuant to this section, the facility shall, within 30 days of the facility’s receipt of the sanction assessment, submit a request for appeal to the department. The request shall include a detailed statement describing the reason for appeal and include all supporting documents the facility will present at the hearing.
2. (2) Within 30 days of the department’s receipt of the facility’s request for appeal, the department shall submit to the facility its responsive arguments and all supporting documents that the department will present at the hearing.

3. (3) The department shall hear a timely appeal and issue a decision as follows:

   1. (A) The hearing shall commence within 60 days from the date of receipt by the department of the facility’s timely request for appeal.
   2. (B) The department shall issue a decision within 120 days from the date of receipt by the department of the facility’s timely request for appeal.
   3. (C) The decision of the department’s hearing officer, when issued, shall be the final decision of the department.
4. (4) The appeals process set forth in this subdivision shall be exempt from Chapter 4.5 (commencing with Section 11400), and Chapter 5 (commencing with Section 11500), of Part 1 of Division 3 of Title 2 of the Government Code. The provisions of Sections 100171 and 131071 of the Health and Safety Code do not apply to appeals under this subdivision.
5. (5) If a hearing decision issued pursuant to subparagraph (C) of paragraph (3) of this subdivision is in favor of the department, the skilled nursing facility shall pay the sanctions to the department within 30 days of the facility’s receipt of the decision. The sanctions collected shall be deposited in accordance with subdivision (g).