(a) The Office of Long-Term Care shall promulgate rules and regulations specifying classified violations in accordance with this section.

(b) The notice of violation issued to a long-term care facility by the Director of the Office of Long-Term Care shall be classified according to the nature of the violation and shall indicate the classification on the face of the notice as follows:

(1) Class A violations create a condition or occurrence relating to the operation and maintenance of a long-term care facility resulting in death or serious physical harm to a resident or creating a substantial probability that death or serious physical harm to a resident will result therefrom;

(2) Class B violations create a condition or occurrence relating to the operation and maintenance of a long-term care facility which directly threatens the health, safety, or welfare of a resident;

(3) Class C violations shall relate to administrative and reporting requirements that do not directly threaten the health, safety, or welfare of a resident; and

(4)

(A) Class D violations shall relate to the timely submission of statistical and financial reports to the office.

(B) The failure to timely submit a statistical or financial report shall be considered a separate Class D violation during any month or part of a month of noncompliance.

(C) In addition to any civil penalty which may be imposed, the director is authorized, after the first month of a Class D violation, to withhold any further reimbursement to the long-term care facility until the statistical and financial report is received by the office.