# Title 25 — Mental and Physical Illness or Disability

## Chapter 25-16 — Residential Care and Services for the Developmentally Disabled

### § 25-16-01. Definitions.

In this chapter unless the context or subject matter otherwise requires:
1. "Department" means the department of health and human services.
2. "Developmental disability" has the same meaning as in section 25-01.2-01.
3. "Group home" means any community residential facility housing more than three
individuals with a developmental disability.
4. "Host home" means a community-based family home environment providing services
to no more than two individuals with a developmental disability who require
out-of-home placement to facilitate delivery of intensive care and support.
5. "Provider agency" means an entity providing services to individuals with
developmental disabilities and licensed by the department to provide services.
### § 25-16-02. License required.

The operator of a provider agency for individuals with a developmental disability shall
secure annually from the department a license as required by rules adopted under this chapter.
### § 25-16-03. Requirements for license.

The department shall issue a license for the operation of an agency providing services to
individuals with a developmental disability upon a showing that:
1. The premises to be used are safe, sanitary, and properly equipped to provide good
care;
2. The persons in charge of the provider agency, including their assistants, are qualified
by training and experience to carry on efficiently the duties required of them;
3. The health, safety, and well-being of individuals receiving services are protected;
4. A variety of meaningful activities, treatment, educational opportunities, and physical
facilities are available;
5. Appropriate arrangements are made for a medical and psychological examination of
each individual; and
6. The provider is in compliance with rules adopted by the department under this chapter.
### § 25-16-03.1. Conviction not bar to licensure - Exceptions.

Conviction of an offense does not disqualify a person from licensure under this chapter
unless the department determines that the offense has a direct bearing upon a person's ability
to serve the public as an owner or operator of a provider agency, or that, following conviction of
any offense, the person is not sufficiently rehabilitated under section 12.1-33-02.1.
### § 25-16-03.2. Corrective actions.

1. If the department finds the provider agency is not in compliance with this chapter or
the rules adopted by the department, the department may notify the provider agency of
required corrective actions.
2. The provider agency shall submit a corrective action plan addressing the corrective
actions.
3. If the provider agency fails to comply with the corrective action plan by the date certain
for correction, the department may:
a. Issue a restricted license; or
b. Revoke the license.
### § 25-16-04. Inspection and report by department.

The department may inspect the facilities, premises, and records of the applicant or the
provider agency to determine whether the provider agency is in compliance with the rules of the
department, to facilitate verification of the information submitted with an application for
licensure, to investigate complaints, and to evaluate the implementation of a plan of correction.

### § 25-16-05. Content of license.

The license issued under the provisions of this chapter must specify:
1. The name of the provider agency.
2. The premises to which the license is applicable.
3. The occupancy or service limitations.
4. The date of expiration of the license.
### § 25-16-06. Department to prescribe forms - Rules.

The department may prescribe forms for the registration and record of an eligible individual
and may adopt reasonable rules necessary to carry out the purposes of this chapter.
### § 25-16-07. Confidential records.

Except as otherwise authorized by law, an agent of the department or the superintendent of
the life skills and transition center or the provider agency, their agents, or employees may not
disclose the contents of an eligible individual's records, nor of the reports received from those
records, except:
1. In a judicial proceeding when ordered by the presiding judge;
2. To a law enforcement official for a law enforcement purpose or any other legally
constituted boards or agencies serving the interests of the eligible individuals for
treatment, payment, or health care operations, to arrange, facilitate, or coordinate
service to any such person;
3. To the parents or legal guardians of the eligible individual;
4. To a physician to aid in the treatment of an individual within the fourth degree of
consanguinity of a deceased eligible individual, if the disclosure is limited to genetic
health information that has a direct bearing on the health of the relative, the relative's
child, or the relative's decision to have a child; or
5. To an individual who is within the fourth degree of consanguinity of a deceased eligible
individual, if the disclosure is limited to information about an eligible individual needed
to establish a family's genealogy.
### § 25-16-08. Revocation of license.

The department may revoke a license of a provider agency upon a proper showing that:
1. Any of the conditions set forth in section 25-16-03 as requirements for the issuance of
the license no longer exists;
2. The license was issued upon fraudulent or untrue representations;
3. The owner or operator has violated any of the rules of the department; or
4. The owner or operator of the provider agency has been guilty of an offense
determined by the department to have a direct bearing upon a person's ability to serve
the public as an owner or operator, or the department determines, following conviction
of an offense, that the person is not sufficiently rehabilitated under section
12.1-33-02.1.
### § 25-16-09. Hearing on denial or revocation of license.

Before any application for a license is denied or before the revocation of such license by the
department, written charges as to the reasons for the revocation or denial must be served upon
the applicant or provider agency, who has a right to a hearing before the department, if a
hearing is requested within ten days after service of written charges.
### § 25-16-10. Purchase of services.

Repealed by S.L. 2003, ch. 231, § 2.
### § 25-16-10.1. Maximum annual return on investment.

Repealed by S.L. 2003, ch. 231, § 3.

### § 25-16-11. Funds of state department of human services for purchasing residential

care, custody, treatment, and education for developmentally disabled persons.
Repealed by S.L. 2001, ch. 259, § 1.
### § 25-16-12. Efforts to obtain private and governmental grants.

The department and the provider agency may exert all possible efforts to obtain grants, both
private and governmental, for the care, custody, treatment, training, and education of individuals
with a developmental disability.
### § 25-16-13. Expenses chargeable against eligible individual, eligible individual's estate,

or responsible relatives.
This chapter does not relieve the responsibility of the eligible individual, the eligible
individual's estate, or responsible relatives of the expenses for care and treatment as provided
in chapter 25-04 or 50-06.3. The provisions of chapter 25-04 or 50-06.3 applicable to the
expenses of care and treatment of patients apply to this chapter.
### § 25-16-14. Group homes for individuals with developmental disabilities - Zoning.

Notwithstanding the provisions in chapter 11-33, 40-47, or 58-03, or any other provisions
authorizing any political subdivision to establish or enforce zoning regulations, a licensed group
home serving six or fewer individuals with a developmental disability must be considered a
permitted use in a single-family or equivalent least-density residential zone, and a licensed
group home serving eight or fewer individuals with a developmental disability must be
considered a permitted use in any area zoned for residential use of greater density than single-
family use.
### § 25-16-15. Depreciation recapture on the sale of fixed assets.

Repealed by S.L. 2003, ch. 231, § 2.
### § 25-16-16. Owner compensation for services provided.

Repealed by S.L. 2003, ch. 231, § 3.
### § 25-16-17. Purchase of services - Host home program.

1. The department may purchase residential care, custody, treatment, training, and
education services for individuals with developmental disabilities from a provider
agency or a Medicaid-enrolled provider, from funds appropriated for that purpose.
2. The department may establish a host home program to provide out-of-home
placement habilitation and support services for Medicaid-eligible individuals with
developmental disabilities.
### § 25-16-18. Federal requirements - Supremacy.

If any provision of this chapter is determined by the United States government to be in
conflict with existing or future requirements of the United States government so as to limit or
preclude federal financial participation in medical assistance, the department shall comply with
the federal requirements to the extent necessary to obtain federal financial participation and
shall not comply with the provisions of this chapter if necessary to avoid a loss of federal
financial participation.
