(a) In addition to any applicable recoupment or rate decrease pursuant to any other provision of the general statutes, a nursing home facility that receives a rate increase for wage enhancements for facility employees may also be assessed a civil penalty if the facility fails to use the rate increase for that purpose. The Department of Social Services may assess a civil penalty upon completion of a department audit conducted in accordance with the nursing home facility’s Medicaid provider enrollment agreements. The civil penalty assessed pursuant to this section shall not exceed an amount greater than fifty per cent of the total dollar amount of the rate increase received by the nursing home facility but not used for wage enhancements for facility employees.

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(b) The department, in its sole discretion, may enter into a recoupment schedule with a nursing home facility so as not to negatively impact patient care. Any nursing home facility subject to a civil penalty assessed in accordance with this section may request a rehearing pursuant to subsection (b) of section 17b-238. The provisions of this section shall apply to all rate increases for wage enhancements received by nursing home facilities pursuant to the provisions of section 323 of public act 21-2 of the June special session* prior to May 31, 2022.