(a)

1. (1) No Level II assisted living facility may be established, conducted, or maintained in Arkansas without first obtaining a long-term care facility license as required by:

   1. (A) Arkansas Code § 20-10-201 et seq.;
   2. (B) The Arkansas Assisted Living Act, Arkansas Code § 20-10-1701 et seq.; and
   3. (C) This part.

2. (2) All licenses issued hereunder, and the beds stated on the license, are nontransferable:

   1. (A) From one (1) owner or proprietor to another; or
   2. (B) From one (1) site or location to another.
3. (3) No Level II assisted living facility may operate with more beds than is stated in the license, and no Level II assisted living facility may accept more residents than the number of beds stated on the license.
4. (4) No license shall be issued without proof of a valid, current permit of approval issued by the Health Services Permit Commission or Health Services Permit Agency.

(b)

1. (1) The grant of a license for a facility as a Level II assisted living facility shall also be a grant of licensure as a Level I assisted living facility.

2. (2)

   1. (A) However, separate licenses shall be issued for each, and shall reflect the number of beds for each as indicated on the application.
   2. (B) Specifically, the issuance of a Level II assisted living facility license shall be a grant of authority to the facility to operate with the stated bed capacity set out in the assisted living facility Level II license for the housing or delivery of services to individuals who are medically eligible for nursing home level of care or who receive services through the Medicaid 1915(c) Home and Community-Based Services Waiver for assisted living.
3. (3) The issuance of a Level I assisted living facility license shall be a grant of authority to the facility to operate with the stated bed capacity set out in the Level I assisted living facility license for the housing or delivery of services to those individuals who are not medically eligible for nursing home level of care or who do not receive services through the Medicaid 1915(c) Home and Community-Based Services Waiver for assisted living.
4. (4) The initial licenses together shall reflect the total number of beds as set forth in the permit of approval.
5. (5) Subsequent licenses issued to the same owner will state the number of beds for which the facility has been authorized by the Health Services Permit Commission or the Health Services Permit Agency at the time of the issuance of the subsequent license, and which are designated for the respective Level I and Level II licenses.
6. (6) Licenses issued as a result of a change of ownership shall state the number of beds for which the facility was licensed on the date of sale of the facility or the date of the sale of ownership of the facility.

(c)

1. (1) When a facility is licensed as a Level II assisted living facility, the facility shall maintain physically distinct parts or wings to house individuals that receive or are medically eligible for the nursing home level of care separate and apart from those individuals who do not receive, or are not medically eligible for, the nursing home level of care.
2. (2) Common areas must meet all requirements for a Level II facility.

3. (3) However, Level II units may house Level I-level of care residents under the following conditions:

   1. (A) Any and all individuals residing in a Level II unit shall be counted as a Level II resident for purposes of determining staff for the Level II unit;
   2. (B) No individual meeting the criteria for Level II level of care may reside or be housed in a Level I unit or Level I bed; and
   3. (C) Common areas must meet all requirements for a Level II facility.
4. (4) Staffing within the Level II parts or wings of the facility must meet the requirements for Level II assisted living facilities at all times, independent of the staffing requirements for the Level I parts or wings of the facility, and regardless of whether the Level II parts or wings house individuals who do not receive, or are not eligible for, nursing home level of care.