OAR 411-054-0016
New Applicant Qualifications

For the purpose of this rule, “applicant” means each entity, as defined in OAR 411-054-0005 (Definitions), who holds 10 percent or more incident of ownership in the applicant as described in OAR 411-054-0013 (Application for Initial Licensure and License Renewal)(1)(b). For those who serve the Medicaid population, “applicant” means each entity, as defined in OAR 411-054-0005 (Definitions), who holds 5 percent or more incident of ownership regardless of the individual’s effect on the operation of the facility. Applicants for licensure (excluding license renewal, but including all conversion facilities, changes of ownership, management, or operator) must meet the following criteria:
(1) BACKGROUND CHECK. Each applicant may not have convictions of any of the crimes listed in OAR 407-007-0275 (Convictions Under ORS 443.004 Resulting in Ineligibility for Aging and People with Disabilities Program and Developmental Disabilities Program SIs) and must complete a background check conducted by the Department in accordance with OAR 407-007-0200 (Purpose and Scope) to 407-007-0370 (Variances).
(2) PERFORMANCE HISTORY. The Department shall consider an applicant’s performance history, including repeat sanctions or rule violations, before issuing a license.
(a) Each applicant must be free of incident of ownership history in any facility in Oregon that provides or provided (at the time of ownership) care to children, elderly, ill, or individuals with disabilities that had its license or certification involuntarily suspended or voluntarily terminated during any state or federal sanction process during the past five years.
(b) Applicants must be free of incident of ownership history in any facility in any state that had its license or certification involuntarily suspended or voluntarily terminated during any state or federal sanction process during the past five years.
(c) Failure to provide accurate information or demonstrate required performance history may result in the Department’s denial of a license.
(3) FINANCIAL HISTORY. Each applicant must:
(a) Be free of incident of ownership history in any facility or business that failed to reimburse any state for Medicaid overpayments or civil penalties during the past five years.
(b) Be free of incident of ownership history in any facility or business that failed to compensate employees or pay worker’s compensation, food supplies, utilities, or other costs necessary for facility operation during the past five years.
(c) Submit proof of fiscal responsibility, including an auditor’s certified financial statement, and other verifiable documentary evidence of fiscal solvency documenting that the prospective licensee has sufficient resources to operate the facility for 60 days. Proof of fiscal responsibility must include liquid assets sufficient to operate the facility for 45 days. Anticipated Medicaid income is not considered “liquid assets,” but may be considered “financial resources.” Liquid assets may be demonstrated by:
(A) An unencumbered line of credit;
(B) A performance bond; or
(C) Any other method satisfactory to the Department.
(d) Provide a pro forma (revenues, expenditures, and resident days) by month for the first 12 months of operation of the facility and demonstrate the ability to cover any cash flow problems identified by the pro forma.
(4) EXPERIENCE. If an applicant does not have experience in the management of assisted living or residential care facilities in Oregon, the applicant must employ the services of a consultant or management company with experience in the provision of assisted living or residential care for a period of at least six months of operation. The consultant, and the terms and length of employment, are subject to the approval of the Department.
(a) Conversion Facilities: Unless the applicant has a history of managing an ALF or RCF, a contracted consultant with experience providing residential care must be retained by a CF for six months of operation.
(b) Intensive Intervention Communities: IIC applicants must have history of an unencumbered license from the Department or have operated a specialized living contract with the Department.

Source: Rule 411-054-0016 — New Applicant Qualifications, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=411-054-0016.

411‑054‑0000
Purpose 411‑054‑0005
Definitions 411‑054‑0010
Licensing Standard 411‑054‑0012
Requirements for New Construction or Initial Licensure 411‑054‑0013
Application for Initial Licensure and License Renewal 411‑054‑0016
New Applicant Qualifications 411‑054‑0019
Change of Ownership or Management 411‑054‑0025
Facility Administration 411‑054‑0026
Notice to Potential Residents 411‑054‑0027
Resident Rights and Protections 411‑054‑0028
Abuse Reporting and Investigation 411‑054‑0030
Resident Services 411‑054‑0034
Resident Move-In and Evaluation 411‑054‑0036
Service Plan — General 411‑054‑0038
Individually-Based Limitations 411‑054‑0040
Change of Condition and Monitoring 411‑054‑0045
Resident Health Services 411‑054‑0050
Infection Prevention and Control 411‑054‑0055
Medications and Treatments 411‑054‑0060
Restraints and Supportive Devices 411‑054‑0065
Administrator Qualifications and Requirements 411‑054‑0070
Staffing Requirements and Training 411‑054‑0080
Involuntary Move-out Criteria 411‑054‑0085
Refunds and Financial Management 411‑054‑0090
Fire and Life Safety 411‑054‑0093
Emergency and Disaster Planning 411‑054‑0100
Exceptions and Waivers 411‑054‑0105
Inspections and Investigations 411‑054‑0106
Regulatory Framework 411‑054‑0110
Conditions 411‑054‑0120
Civil Penalties 411‑054‑0130
Non-Renewal, Denial, Suspension or Revocation of License 411‑054‑0133
Temporary Manager 411‑054‑0135
Criminal Penalties 411‑054‑0140
Additional Authority 411‑054‑0200
Residential Care Facility Building Requirements 411‑054‑0300
Assisted Living Facility Building Requirements 411‑054‑0320
Quality Measurement Program and Council
Last Updated

Jun. 8, 2021

Rule 411-054-0016’s source at or​.us