(a) Child Welfare Agency Review Board duties.

1. (1) The Child Welfare Agency Review Board shall issue all licenses to child welfare agencies upon a majority vote of members present during each properly called board meeting at which a quorum is present.
2. (2) The Child Welfare Agency Review Board shall have the power to deny an application to operate a child welfare agency or to revoke or suspend a previously issued license to operate a child welfare agency.
3. (3) The Child Welfare Agency Review Board may also issue letters of reprimand or caution to a child welfare agency.
4. (4) The Department of Human Services may petition the Child Welfare Agency Review Board to deny, suspend, or revoke the regulated facility’s license on the basis of any adverse action imposed by the department.
5. (5) Any revocation of a license, suspension of a license, or denial of application for a license shall be effective when made.

(b) Department duties (Placement and Residential Licensing Unit). For psychiatric residential treatment facilities, the department, through the Placement and Residential Licensing Unit, is authorized to impose the following adverse actions:

1. (1) Issue letters of reprimand or caution;
2. (2) Require a corrective action plan;

3. (3) Impose civil penalties of up to two thousand five hundred dollars ($2,500) per violation, with each day of noncompliance and each client injured as a result of noncompliance constituting a separate violation:

   1. (A) If any person upon whom the department has levied a civil penalty fails to pay the civil penalty within sixty (60) days of the decision of the department to impose the penalty, the amount of the fine:

(i) Shall be considered to be a debt owed to the State of Arkansas; and

1. (ii) May be collected by civil action; and

   1. (B) Civil penalties collected under this section may be expended only for the purpose of providing technical assistance and training to regulated facilities;
2. (4) The department may petition the Child Welfare Agency Review Board to deny, suspend, or revoke the regulated facility’s license on the basis of any adverse action imposed by the department; and

3. (5) For a regulated facility licensed under Arkansas Code § 20-9-201 et seq., the department may petition the State Board of Health to deny, suspend, or revoke the regulated facility’s license on the basis of any adverse action imposed by the department under this section.

   1. (c) Provisional.
4. (1) Provisional status is issued to a newly licensed agency for a one-year period, to give the agency time to demonstrate substantial compliance with minimum licensing standards.

5. (2) At the discretion of the Child Welfare Agency Review Board, a provisional license may be issued for up to one (1) additional year.

   1. (d) Probationary.
6. (1) Probationary status is issued to an agency that has not maintained compliance with minimum licensing standards, but the Child Welfare Agency Review Board believes that compliance can be restored and subsequently maintained.
7. (2) This license may be issued for up to one (1) year at the discretion of the Child Welfare Agency Review Board.

(e) Regular.

1. (1) Regular status is issued either to:

   1. (A) A previously licensed agency that continues to meet all minimum licensing standards; or
   2. (B) An agency that meets all essential standards and has a favorable compliance history, which predicts full compliance with all standards within a reasonable time.
2. (2) A regular license shall remain open and effective until closed at the request of the agency or Child Welfare Agency Review Board action.

(f) Suspended.

1. (1) The Child Welfare Agency Review Board may act to suspend a license when an agency has failed to maintain compliance with minimum licensing standards, but the violations do not warrant revocation.
2. (2) A license may not be suspended for longer than one (1) year at a time.
3. (3) The Child Welfare Agency Review Board may issue a probationary or regular license when compliance is restored.

(h) Revoked.

1. (1) The Child Welfare Agency Review Board may act to revoke a license when an agency has failed to maintain compliance with minimum licensing standards.
2. (2) The agency may not apply for a new license for at least one (1) year from the date of revocation.