ORS 443.420: Qualifications for license; rules.

(1) As used in this section, “substantial compliance” has the meaning given that term in ORS 443.436. (2) A person applying for a license under ORS 443.415 must, in the judgment of the director of the licensing agency, be a person: (a) Who demonstrates an understanding and acceptance of the rules governing residential facilities; (b) Mentally and physically capable of caring for such residents; and (c) Who employs or utilizes only individuals whose presence does not jeopardize the health, safety or welfare of residents. (3) A residential facility may not be operated or maintained in combination with a nursing home or hospital unless: (a) The residential facility is licensed, maintained and operated as a separate and distinct part; or (b) The residential facility is licensed as a conversion facility under ORS 443.431. (4) All physical residential facilities used for residents must meet applicable requirements of the State Fire Marshal. (5) As of the date of licensure, a residential facility must be in substantial compliance with applicable state and local laws, rules, codes, ordinances and permit requirements. (6) Prior to licensure, a residential facility that proposes to house persons under the age of 21 years shall submit written proof to the licensing agency demonstrating that the facility will: (a) Comply with ORS 336.575; and (b) Ensure that the children who reside at the residential facility receive appropriate educational services that are: (A) Comprehensive and age-appropriate; (B) In compliance with requirements of state and federal law; and (C) If applicable, in compliance with the individual education program of the child. (7) Prior to an initial licensure of a residential care facility, the licensing agency shall consider: (a) The license applicant’s history of regulatory compliance and operational experience; (b) The willingness of the license applicant to serve underserved populations; and (c) The willingness of the license applicant to contract with the licensing agency to provide services through the state medical assistance program. (8)(a) The licensing agency may not issue an initial license to a residential care facility if the facility has not conducted a market study that assesses the need for the services offered by the facility in the geographic area served by the facility. (b) This subsection does not apply to a conversion facility licensed under ORS 443.431. (9)(a) If an applicant for a license to operate a residential care facility does not have experience in the operation or management of a residential care facility in this state, the applicant shall, for a period of at least six months of operation, contract for the services of a consultant or management company with experience in the operation or management of a residential care facility in this state. (b) The Department of Human Services shall establish by rule the minimum qualifications for a consultant or management company under this subsection, including requirements that the consultant or management company: (A) Holds, or employs a person who holds, an active residential care facility administrator license issued under ORS 678.710 to 678.820 that is in good standing; (B) Within the last five years, has at least three years of demonstrated experience operating or managing a residential care facility in this state in a satisfactory manner; (C) Within the last five years, has at least three years of demonstrated experience operating or managing a residential care facility with a memory care endorsement under ORS 443.886, if the consultant or management company is consulting with a person applying for a license to operate a residential care facility with a memory care endorsement under ORS 443.886; and (D) Is not listed as an excluded provider on the comprehensive listing maintained by the United States Department of Health and Human Services’ Office of Inspector General of providers that are excluded from participation in federal health care programs. (c) The Department of Human Services shall establish by rule the tasks that a contracted consultant or management company under this subsection must complete, including, at a minimum: (A) Review of the residential care facility’s policies and procedures; (B) Review of the residential care facility’s quality improvement process; (C) Periodic on-site compliance audits; and (D) Preparation of monthly reports that the consultant or management company shall submit to the department for review. (d) The department may extend the duration of the period of consultation beyond six months if the department determines, from an on-site visit, a review of the required monthly reports or both, that the facility is not in substantial compliance with applicable state or federal laws, rules or regulations. (e) If a contract for the services of a consultant or management company under this subsection is terminated early, the license applicant and the consultant or management company shall notify the department within two business days. (10) Prior to the issuance of an initial license to a residential training facility or a residential training home, and upon an application for a renewal of a license of a residential training facility or a residential training home, the licensing agency shall consider the license applicant’s history of regulatory and safety compliance and operational experience in this state or any other jurisdiction as prescribed by rule by the licensing agency. [1977 c.717 §4; 1985 c.264 §3; 2008 c.18 §12; 2009 c.595 §781; 2011 c.105 §1; 2015 c.241 §1; 2017 c.679 §21; 2021 c.316 §3; 2025 c.619 §14]