The Department of Human Services or the Office of Medicaid Inspector General, with respect to Arkansas Medicaid programs, may exclude participants for any of the following acts or omissions that are of a character regarded by the Secretary of the Department of Human Services or the office to be so serious as to justify exclusion:

1. (1) Any true or substantiated final finding of abuse, neglect, or other maltreatment on the part of the provider under the:

   1. (A) Child Maltreatment Act, Arkansas Code § 12-18-101 et seq.; or
   2. (B) Adult and Long-Term Care Facility Resident Maltreatment Act, Arkansas Code § 12-12-1701 et seq.;

2. (2) Refusal or knowing failure, without good cause, to comply:

   1. (A) With applicable requirements, including requirements contained or incorporated in statutes, rules, contracts, or purchase orders; or
   2. (B) Within the time provided in the contract or grant;
3. (3) Failure to perform or unsatisfactory performance, provided that the failure to perform or unsatisfactory performance beyond the control of the contractor or grantee shall not be considered to be a basis for exclusion;
4. (4) Failure to post any surety bond or to provide similar guarantees acceptable to the department required under any contract or grant;
5. (5) Substitution of commodities or services without prior written approval of the department;

6. (6) Failure to cure nonconforming commodities or services within the lesser of:

   1. (A) A reasonable time; or
   2. (B) The time specified in the contract or in a corrective action plan;

7. (7) Refusal to accept a contract or grant awarded in accordance with the:

   1. (A) Request for proposal; or
   2. (B) Invitation for bid;

8. (8) Making material misrepresentations or failing to make representations or disclosures when:

   1. (A) Required; or
   2. (B) A reasonable person would naturally have been expected to affirm or deny the existence of a material fact;
9. (9) Collusion or collaboration with any bidder, proposer, or applicant in the submission of any proposal, bid, or grant application for the purpose of lessening or reducing competition;
10. (10) Failure to submit to or to supply an audit as required by federal or state law or rule;

11. (11) Failure or refusal, after request by the department or the office, to supply records related to the:

    1. (A) Contract;
    2. (B) Proposal;
    3. (C) Bid; or
    4. (D) Application;
12. (12) Any act or omission that causes or materially contributes to placement of a lien upon the assets of the state;
13. (13) Conviction related to the use of illegal drugs, controlled substances, or other drug-related offenses when the offense is a misdemeanor;
14. (14) Any physical abuse, sexual abuse, or neglect when the offense is a misdemeanor;
15. (15) Submitting, without good cause, a bill or claim for payment exceeding the amount to which the participant is entitled;
16. (16) Failure to make repayment arrangements acceptable to the department to repay any funds owed the department, or failure to strictly adhere to the terms of any agreed-to repayment arrangements;
17. (17) Failure to comply with professional standards of care or conduct applicable to the service provided;
18. (18) Failure to comply with standards or requirements relating to any license, permit, certification, other publicly granted authority, or accreditation needed to provide any service funded in whole or in part with public funds;
19. (19) Failure to fully and accurately make any disclosures required by contract, federal or state law or rule;
20. (20) Transaction of business in knowing contravention of an exclusion imposed under this part; or
21. (21) Child pornography, when the offense is a misdemeanor.