[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR160.402]



[Page 715]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           AND HUMAN SERVICES

 

PART 160_GENERAL ADMINISTRATIVE REQUIREMENTS--Table of Contents

 

              Subpart D_Imposition of Civil Money Penalties

 

Sec.  160.402  Basis for a civil money penalty.



    (a) General rule. Subject to Sec.  160.410, the Secretary will 

impose a civil money penalty upon a covered entity if the Secretary 

determines that the covered entity has violated an administrative 

simplification provision.

    (b) Violation by more than one covered entity. (1) Except as 

provided in paragraph (b)(2) of this section, if the Secretary 

determines that more than one covered entity was responsible for a 

violation, the Secretary will impose a civil money penalty against each 

such covered entity.

    (2) A covered entity that is a member of an affiliated covered 

entity, in accordance with Sec.  164.105(b) of this subchapter, is 

jointly and severally liable for a civil money penalty for a violation 

of part 164 of this subchapter based on an act or omission of the 

affiliated covered entity, unless it is established that another member 

of the affiliated covered entity was responsible for the violation.

    (c) Violation attributed to a covered entity. A covered entity is 

liable, in accordance with the federal common law of agency, for a civil 

money penalty for a violation based on the act or omission of any agent 

of the covered entity, including a workforce member, acting within the 

scope of the agency, unless--

    (1) The agent is a business associate of the covered entity;

    (2) The covered entity has complied, with respect to such business 

associate, with the applicable requirements of Sec. Sec.  164.308(b) and 

164.502(e) of this subchapter; and

    (3) The covered entity did not--

    (i) Know of a pattern of activity or practice of the business 

associate, and

    (ii) Fail to act as required by Sec. Sec.  164.314(a)(1)(ii) and 

164.504(e)(1)(ii) of this subchapter, as applicable.