(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.

(2) 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.

(3) All physical residential facilities used for residents must meet applicable requirements of the State Fire Marshal.

(4) 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.

(5) 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.

(6) 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.

(7)(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. [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]