1. (1) The Division must deny, revoke, or refuse to renew a license where it finds any of the following:

   1. (a) There has been substantial non-compliance with these rules;
   2. (b) There is substantial non-compliance with local codes and ordinances or any other state or federal law or rule applicable to the health and safety of residents; or
   3. (c)  A background check conducted by ODHS determined the applicant or provider is not approved;
   4. (d) The provider allows a caregiver or any other person, excluding residents, who has been convicted of potentially disqualifying crimes and has been denied, or refused to cooperate with the Division, to reside or work in the program;
   5. (e) The applicant or provider falsely represents they have not been convicted of a crime; or
   6. (f) The Division has received notice from the Department of Revenue in accordance with ORS 305.385.

   7. (g) The applicant or provider has had a certificate or license to operate a foster home, or residential facility denied, suspended, revoked, or refused to be renewed in this or any other state within three years preceding the present action if the denial, suspension, revocation, or refusal to renew was due in any part to:

      1. (A) Abuse or neglect, creating a threat to the health, safety, or well-being of residents; or
      2. (B) Failure of the applicant or provider to possess the physical health, mental health, or good judgement deemed necessary by the Division;

   8. (h) The applicant or provider has had a certificate or license to operate a foster home, residential home or residential facility denied, suspended, revoked, or refusal to be renewed in this or any other state more than three years from the present action, the applicant or provider is required to demonstrate to the Division by clear and convincing evidence, the applicant or provider:

      1. (A) Does not pose a threat to resident; and

      2. (B) Posses the ability and fitness to operate a program in substantial compliance.

         1. (i) The applicant or provider is associated with a person whose license for a foster home, residential home or facility denied, suspended, revoked, or refused to be renewed due to:
      3. (A) Abuse or neglect, creating a threat to the health, safety, or well-being of residents; or
      4. (B) Failure to possess physical health, mental health, or good judgement within three years preceding the present action, unless the applicant or provider can demonstrate to the Division by clear and convincing evidence that the person does not pose a threat to the residents.

   9. (j) For purposes of this subsection, an applicant or provider is "associated with" a person as described above, if the applicant or provider:

      1. (A) Resides with the person;
      2. (B) Employs the person in the program;
      3. (C) Receives financial backing from the person for the benefit of the program;
      4. (D) Receives managerial assistance from the person for the benefit of the program;
      5. (E) Allows the person to have access to the setting; or
      6. (F) Rents or leases the setting from the person.
   10. (k) For purposes of this section only, "present action" means the date of the notice of denial, suspension, revocation, or refusal to renew.

2. (2)

   1. (a) When a license is denied, revoked, or not renewed, the provider may request a hearing in writing within 21 calendar days after the date the notice was personally served or mailed. If the provider fails to request a hearing in writing, or the request is not timely, the notice will become a final order of the Division by default:
   2. (b) In addition to, or in-lieu of, a contested case hearing, a provider may request an informal conference with the Division to discuss the administrative action. The informal conference does not diminish the provider’s right to a hearing. A request for informal conference does not delay, extend, or otherwise affect the 21 calendar days allowed to request a hearing.
3. (3) A license subject to revocation or non-renewal remains valid during the administrative hearing process even if the hearing and final order are not issued after the expiration date of the license.  If the provider desires to continue operating the program, should they prevail at hearing, a complete renewal application and fee, as applicable, must be submitted to the Division prior to the expiration of the current license.
4. (4) An applicant who voluntarily withdraws an application during a denial process may not submit an application for a license for one year from the date of the withdrawal.
5. (5) An applicant whose license has been revoked, non-renewed, or voluntarily surrendered during a revocation or non-renewal process may not submit an application for a license for one year from the date the action was final, or for a longer period if specified in the final order.

6. (6) The Division may deny, suspend, revoke, or refuse to renew a license if the applicant or provider:

   1. (a) Submits fraudulent, misleading or false information to the Division;
   2. (b) Has a history of or demonstrates financial insolvency, such as bankruptcy, foreclosure, eviction due to failure to pay rent, or termination of utility services due to failure to pay bills;
   3. (c) The Division has received written notice from the Oregon Department of Revenue in accordance with ORS 305.385;
   4. (d) Has threatened the health, safety, or well-being of any resident;
   5. (e) Has abused, neglected, or financially exploited a resident;
   6. (f) Has a medical or psychiatric problem, which interferes with the ability to provide care;
   7. (g) Refuses to allow access and inspection;
   8. (h) Fails to comply with a final order of the Division to correct a violation of the rules for which an administrative sanction has been imposed;
   9. (i) Fails to comply with a final order of the Division imposing an administrative sanction;
   10. (j) Fails to report knowledge of the illegal actions of or disclose the known criminal history of a provider, administrator, direct care staff, or volunteer of the program;
   11. (k) Interferes with a person who has made a good faith disclosure of information concerning the abuse or neglect of a resident receiving care and services in a licensed or certified facility;
   12. (l) Has previously been cited for the operation of an unlicensed program;
   13. (m) Has previously surrendered a license or certificate while under investigation or administrative sanction during the last three years; or
   14. (n) Fails to operate the program or any other facility in substantial compliance.

7. (7) The Division may immediately suspend a license for reason of abuse, neglect, or exploitation of a resident if:

   1. (a) The Division finds that the abuse, neglect, or exploitation causes an immediate threat to a resident; or
   2. (b) The provider fails to operate the program in substantial compliance with ORS 443.400 to 443.465 causing an immediate threat to the health, safety or well-being of a resident.
8. (8) The Division must suspend a license upon written notice from the Oregon Department of Revenue in accordance with ORS 305.385, and after notice to the provider and a hearing if requested. Prior to reinstating a license suspended in this manner, the Division must take into consideration the provider’s good standing with the Department of Revenue and the residents’ continuity of care.
9. (9) If a license is suspended, the Division may arrange for resident to move for their protection.

10. (10) If a license is suspended, the provider may request a hearing in writing within 90 calendar days after the date the notice was personally served or mailed:

    1. (a) If the provider fails to request a hearing in writing, or the request is not timely, the notice will become a final order of the Division by default; and
    2. (b) In addition to, or in-lieu of, a contested case hearing, a provider may request an informal conference with the Division to discuss administrative action. The informal conference does not diminish the provider’s right to a hearing. A request for informal conference does not delay, extend, or otherwise affect the 90 calendar days allowed to request a hearing.

Statutory/Other Authority

ORS 413.042 & 443.450

Statutes/Other Implemented

ORS 413.032, 443.400 - 443.465 & 443.991

History

BHS 13-2026, temporary amend filed 06/01/2026, effective 06/01/2026 through 11/25/2026
BHS 6-2026, amend filed 04/30/2026, effective 05/01/2026
BHS 5-2026, amend filed 04/30/2026, effective 06/01/2026
BHS 32-2025, temporary amend filed 12/30/2025, effective 01/01/2026 through 06/27/2026
BHS 4-2025, adopt filed 02/28/2025, effective 03/01/2025