(a) The Department of Human Services may deny a license if:

1. (1) The administrator, directors, management company, operator, or other management agent that the applicant will use to manage the facility has ever been convicted of a felony;
2. (2) A facility or facilities owned or operated by the applicant or applicants have been found, after final administrative decision, to have committed a Class A violation;
3. (3) A facility or facilities owned or operated by the administrator, directors, management company, operator, or other management agent that the applicant or applicants will use to manage the facility have been found, after final administrative decision, to have committed a Class A violation;
4. (4) The applicant or applicants have had a license revoked or suspended;
5. (5) The administrator, directors, management company, operator, or other management agent that the applicant or applicants will use to manage the facility have had a license revoked;
6. (6) The applicant or applicants have not demonstrated to the satisfaction of the department that any other facility owned, operated, or administered by the applicant or applicants is and has been in substantial compliance with the standards as set by applicable state and federal law; or
7. (7) The applicant or applicants have not demonstrated to the satisfaction of the department that any other facility owned, operated, or administered by the administrator, directors, management company, operator, or other management agent that the applicant or applicants will use to manage the facility is and has been in substantial compliance with the standards as set by applicable state and federal law.

(b)

1. (1) The department may consider the mitigation of compliance issues based on whether an applicant or applicants, including the administrator, directors, management company, operator, or other management agent that the applicant or applicants will use to manage the facility, fall under one (1) of the above denial criteria.
2. (2) This includes any long-term care facility which was not licensed at the time of application or any additional bed capacity of a licensed facility.