ORS 443.735: Issuance of license; fee; standards; renewal; burden of proof; rules.

(1) As used in this section, “substantial compliance” means a level of compliance with state law and with rules of the licensing agency such that any identified deficiencies pose a risk of no more than negligible harm to the health or safety of residents. (2)(a) Applications for a license to maintain and operate an adult foster home shall be made on forms provided by the licensing agency and shall include the home’s proposed policies and procedures regarding staff and administrator training, service planning, medication administration, food preparation and distribution, safety, emergency response, succession planning and facility closure. (b) Each application submitted to the Department of Human Services for an adult foster home serving individuals with intellectual or developmental disabilities shall be accompanied by a fee prescribed by the department under ORS 427.021. (c) Each application submitted to the department for an adult foster home serving older adults or individuals with physical disabilities shall be accompanied by a fee prescribed by the department by rule. (d) Each application submitted to the Oregon Health Authority shall be accompanied by a fee of $20 per bed requested for licensing. (3) Upon receipt of an application and fee, the licensing agency shall conduct an investigation, including an in-person site inspection. (4) The licensing agency shall issue an initial license only if: (a) The applicant and adult foster home are in compliance with ORS 443.002 and 443.705 to 443.825 and the rules of the licensing agency; (b) The licensing agency has completed an inspection under this section of the adult foster home; (c) The licensing agency has reviewed and approved the adult foster home’s proposed policies and procedures submitted under subsection (2) of this section; (d) The licensing agency has completed a criminal records check under ORS 181A.195 on the applicant and any person, other than a resident, 16 years of age or older who will be residing in the adult foster home. The criminal records check shall be conducted in accordance with rules adopted under ORS 181A.195; (e) The licensing agency has determined that the registry maintained under ORS 441.678 contains no finding that the applicant or any nursing assistant employed by the applicant has been responsible for abuse; and (f) The applicant has demonstrated to the licensing agency the financial ability and resources necessary to operate the adult foster home. The licensing agency shall adopt rules as the agency deems appropriate that establish the financial standards an applicant must meet to qualify for issuance of a license and that protect financial information from public disclosure. The demonstration of financial ability under this paragraph shall include, but need not be limited to, providing the licensing agency with a list of any unsatisfied judgments, pending litigation and unpaid taxes and notifying the agency regarding whether the applicant is in bankruptcy. If the applicant is unable to demonstrate the financial ability and resources required by this paragraph, the licensing agency may require the applicant to furnish a financial guarantee as a condition of initial licensure. (5) The licensing agency shall renew a license under this section only if: (a) The applicant and the adult foster home are in substantial compliance with ORS 443.002, 443.012 and 443.705 to 443.825 and the rules of the licensing agency; (b) The licensing agency has completed an inspection under ORS 443.755 of the adult foster home; (c) The licensing agency has completed a criminal records check under ORS 181A.195 on the applicant and any person, other than a resident, 16 years of age or older who will be residing in the adult foster home. The criminal records check under this paragraph shall be conducted in accordance with rules adopted under ORS 181A.195; and (d) The licensing agency has determined that the registry maintained under ORS 441.678 contains no finding that the applicant or any nursing assistant employed by the applicant has been responsible for abuse. (6)(a) In seeking an initial license and renewal of a license when an adult foster home has been licensed for less than 24 months, the burden of proof shall be upon the provider and the adult foster home to establish compliance with ORS 443.705 to 443.825 and the rules of the licensing agency. (b) In proceedings for renewal of a license when an adult foster home has been licensed for at least 24 continuous months, the burden of proof shall be upon the licensing agency to establish noncompliance with ORS 443.705 to 443.825 and the rules of the agency. (7)(a) Persons who have been convicted of one or more crimes that, as determined by rules of the licensing agency, are substantially related to the qualifications, functions or duties of a provider, substitute caregiver or other household member of an adult foster home shall be prohibited from operating, working in or residing in an adult foster home. (b) The licensing agency shall adopt rules that distinguish the criminal convictions and types of abuse that permanently prohibit a person from operating, working in or living in an adult foster home from the convictions and types of abuse that do not permanently prohibit the person from operating, working in or living in an adult foster home. (c) A provider may not hire, retain in employment or allow to live in an adult foster home, other than as a resident, any person who the provider knows has been convicted of a disqualifying crime or has been found responsible for a disqualifying type of abuse. (8) Except as provided in subsection (9) of this section, a license under ORS 443.725 is effective for one year from the date of issue or renewal unless sooner revoked. (9)(a) For adult foster homes licensed by the Department of Human Services, the department may extend the duration of a license to two years if the department determines that the home has been in substantial compliance with ORS 443.002 and 443.705 to 443.825 and the rules of the licensing agency for three consecutive years. (b) If the duration of an adult foster home’s license has been extended to two years under this subsection, the home shall remain on a two-year renewal cycle, unless the department determines that the home is no longer in substantial compliance, at which time the department may return the home to a one-year renewal cycle. (10) Each license shall state the name of the resident manager of the adult foster home, the names of all providers who own the adult foster home, the address of the premises to which the license applies, the maximum number of residents and the classification of the adult foster home. If, during the period covered by the license, a resident manager changes, the provider must within 15 days request modification of the license. The request must be accompanied by a fee of $10. (11) No license under ORS 443.725 is transferable or applicable to any location, persons operating the adult foster home or the person owning the adult foster home other than that indicated on the application for licensing. (12) The licensing agency shall not issue a license to operate an additional adult foster home to a provider unless the provider has demonstrated the qualifications and capacity to operate the provider’s existing licensed adult foster homes and has demonstrated the ability to provide to the residents of those adult foster homes care that is adequate and substantially free from abuse and neglect. (13)(a) All moneys collected under ORS 443.725 to 443.780 from adult foster homes that are licensed to serve persons with mental, emotional or behavioral disturbances or alcohol or drug dependence shall be deposited in a special account in the General Fund, and are appropriated continuously for payment of expenses incurred by the Oregon Health Authority. (b) All moneys collected under ORS 443.725 to 443.780 from adult foster homes licensed to serve persons who are elderly or have physical disabilities shall be deposited in the Quality Care Fund established in ORS 443.001. (14) Notwithstanding any other provision of this section or ORS 443.725 or 443.738, the licensing agency may issue a 60-day provisional license to a qualified person if the agency determines that an emergency situation exists after being notified that the licensed provider of an adult foster home is no longer overseeing operation of the adult foster home. [1983 c.629 §4; 1985 c.663 §4; 1991 c.960 §5; 1995 c.180 §2; 1995 c.667 §10; 1999 c.205 §1; 2001 c.900 §189; 2005 c.730 §24; 2009 c.418 §4; 2009 c.595 §791f; 2009 c.828 §§20,89a; 2017 c.707 §6; 2019 c.592 §7; 2023 c.206 §4; 2025 c.619 §10 ]