(a) The department shall establish by regulation civil history standards for denial of issuance or renewal of a license or certification for an individual or for an entity if the individual who is applying for a license, license renewal, certification, or certification renewal is

(1) a biological or adoptive parent, guardian, custodian, or Indian custodian of a child who is or was the subject of a child-in-need-of-aid petition under AS 47.10 and the individual had custody of the child at the time the child was the subject of a petition; or

(2) the subject of a finding or circumstance described in AS 47.05.330(a).

(b) If an individual is the subject of a petition or finding or circumstance described in (a) of this section, or a substantially similar provision in another jurisdiction, the individual may not own an entity or be an officer, director, partner, member, employee, or principal of the business organization that owns an entity. In addition, an entity may not

(1) allow that individual to operate the entity;

(2) hire or retain that individual at the entity as an employee, independent contractor, or unsupervised volunteer of the entity;

(3) allow that individual to reside in the entity, unless that individual receives services from the entity or is in the custody of the state; or

(4) allow that individual to be present in the entity if the individual would have regular contact with individuals who receive services from the entity, unless that individual is a family member of or visitor of an individual who receives services from the entity.

(c) An entity or an individual shall provide to the department a release of information authorization for a civil history check under this section for each individual who is not a recipient of services from the entity, who is not in the custody of the department, and, after the entity applies for or has been issued a license, license renewal, certification, or certification renewal by the department,

(1) who intends to become an owner of the entity, or an officer, director, partner, member, or principal of the business organization that owns the entity;

(2) whom the entity intends to hire or retain as the operator of the entity's business;

(3) whom the entity intends to hire or retain as an employee, independent contractor, or unsupervised volunteer of the entity; or

(4) who will be present in the entity or at the places of operation of the entity, and would have regular contact with individuals who receive services from the entity, but who is not a family member of or visitor of an individual who receives services from the entity.

(d) For purposes of this section, in place of nonissuance or nonrenewal of a license or certification, an entity or individual that is not required to be licensed or certified by the department or a person wishing to become an entity or individual that is not required to be licensed or certified by the department is instead ineligible to receive a payment, in whole or in part, from the department to provide for the health, safety, and welfare of persons who are served by the programs administered by the department if the entity or individual is in violation of this section or would be in violation of this section based on information received by the department as part of an application, approval, or selection process.

(e) The department shall by regulation identify other governmental agencies or political subdivisions of the state that can request information that is required under this section for a similar purpose.

(f) The provisions of this section do not apply if the department grants an exception from the requirements of (a) or (b) of this section under a regulation adopted by the department or if the department grants a variance under AS 47.05.360.

(g) A person is presumed to be acting in good faith and is immune from civil and criminal liability if the person

(1) makes a report of medical assistance fraud, abuse, neglect, or exploitation;

(2) submits information to a civil history database identified under AS 47.05.330; or

(3) fails to hire or retain an employee or unsupervised volunteer because the employee or unsupervised volunteer is included in a civil history database identified under AS 47.05.330.

(h) The department shall by regulation establish standards for the consideration and use by the department, an entity, or an individual of the civil history of an individual obtained under this section.