1. (1) When an application for an initial license to operate a behavioral health entity pursuant to section 27-50-503 has been denied by the BHA, the BHA shall notify the applicant in writing of the denial by mailing a notice to the applicant at the address shown on the application. Any applicant aggrieved by a denial may pursue a review as provided in article 4 of title 24, and the BHA shall follow the provisions and procedures specified in article 4 of title 24.

2. (2)

   1. (a) The BHA may suspend, revoke, or refuse to renew the license of any behavioral health entity that is out of compliance with the requirements of this part 5 or the rules promulgated pursuant to this part 5. Suspension, revocation, or refusal must not occur until after a hearing and in compliance with the provisions and procedures specified in article 4 of title 24; except that the BHA may summarily suspend a behavioral health entity's license before a hearing in accordance with section 24-4-104 (4)(a).
   2. (b) After conducting a hearing in accordance with article 4 of title 24, the BHA may revoke or refuse to renew a behavioral health entity's license if the owner, manager, or administrator of the behavioral health entity has been convicted of a felony or misdemeanor involving conduct that the BHA determines could pose a risk to the health, safety, or welfare of the behavioral health entity's consumers.

3. (3) The BHA may impose intermediate restrictions or conditions on a behavioral health entity that may include at least one of the following:

   1. (a) Retaining a consultant to address corrective measures;
   2. (b) Monitoring by the BHA for a specific period;
   3. (c) Providing additional training to employees, owners, or operators of the behavioral health entity;
   4. (d) Complying with a directed written plan to correct the violation; or

   5. (e)

      1. (I) Paying a civil fine not to exceed two thousand dollars in a calendar year.
      2. (II) The assessment of civil fines shall follow the procedures set forth in section 26.5-5-323.
4. (4) If the BHA assesses a civil fine pursuant to subsection (3)(e) of this section, the BHA shall transmit the money to the state treasurer, who shall credit the money to the general fund.

Source: L. 2022: Entire article added, (HB 22-1278), ch. 222, p. 1476, § 1, effective July 1. L. 2023: (2) amended, (HB 23-1236), ch. 206, p. 1060, § 29, effective May 16.