Arkansas Code
Subchapter 2 - Office of Long-Term Care
§ 20-10-224. License required — Administration by Department of Human Services

(a) No long-term care facility or related institution shall be established, conducted, or maintained in this state without obtaining a license.
(b)
(1) By properly promulgating rules, the Department of Human Services may provide for the issuance of provisional long-term care facility licenses and long-term care facility licenses, including the licensure of facilities with specialized wings, units, or rooms for dementia residents, those suffering from Alzheimer's disease, and other related conditions.
(2) The licenses shall be effective on a state fiscal year basis and shall expire June 30 of each year, subject to revocation and to annual renewal.
(3)
(A) If issued, a provisional license shall be effective upon submission of the application for licensure to the Office of Long-Term Care.
(B) The provisional license shall remain in effect until the issuance of the long-term care facility license.

(c)
(1) Applicants for long-term care facility licensure shall file applications under oath with the office.
(2) Applications shall be signed by the administrator or the owner of the facility.
(3) Applications shall set forth the full name and address of the facility for which licensure is sought and additional information as the office may require, including affirmative evidence of ability to comply with standards, rules, and regulations as may be lawfully prescribed.

(d) No license shall be issued or renewed for any long-term care facility unless the applicant has included in the application the name and such other information required for licensure and disclosure. This requirement, as well as any other requirement determined appropriate by the department, shall be in accordance with the guidelines provided by the department.
(e)
(1) Whenever ownership of controlling interest in the operation of a facility is sold by the person or persons named in the license to any other person or persons, the buyer shall obtain a license to operate the facility. The buyer shall notify the department of the sale and apply for a license at least thirty (30) days before the completed sale.
(2) Except as provided by the Arkansas Long-Term Care Facility Receivership Law, § 20-10-901 et seq., the seller shall notify the department at least thirty (30) days before the completed sale. The seller shall remain responsible for the operation of the facility until such time as a license is issued to the buyer.
(3) The buyer shall be subject to any plan of correction submitted by the previous licensee and approved by the department.
(4) The seller shall remain liable for all penalties assessed against the facility which are imposed for violations or deficiencies occurring before sale of ownership or operational control.
(5) Before approval of the application for licensure of the buyer, the department shall consider and may deny a license based upon the following:
(A) Whether the administrator, officers, directors, or partners have ever been convicted of a felony;
(B) Whether, within twelve (12) months before the license application, any facility or facilities owned or operated by the applicant or applicants have been found, after final administrative decision, to have committed a Class A violation;
(C) Whether during the three (3) years before the application, the applicant or applicants have had a license revoked; or
(D) Whether the applicant or applicants have demonstrated to the satisfaction of the department that any other facility owned, operated, or administered by the applicant or applicants has been in substantial compliance with the standards as set by applicable state and federal law for the previous twelve-month period before application for licensure.

(6)
(A) Except as provided in subdivision (e)(6)(B) of this section, the buyer shall not be issued a license until the buyer provides the department with proof of payment by the buyer to the seller of a sum equal to the annual fee under subsection (i) of this section.
(B) The department shall process a renewal application before issuing a license to a buyer if:
(i) The buyer provides the department with proof of payment by the buyer to the seller of a sum equal to the annual fee under subsection (i) of this section;
(ii) The sale occurs between March 1 and July 1 of any year;
(iii) The seller applied for or received a renewal of the license; and
(iv) The seller paid the annual fee under subsection (i) of this section to the department.

(f)
(1) Before issuing a license, or approving the operation of any long-term care facility which was not licensed at the time of application or any additional bed capacity of a licensed facility, the department shall consider and may deny a license based upon the criteria established in subdivision (e)(5) of this section.
(2) This subsection is not intended to circumvent or alter the requirements set forth in § 20-8-101 et seq.

(g) Except for facilities operated by the State of Arkansas, each long-term care facility shall pay an annual licensure fee in the following amount:
(1) Residential care facilities shall pay an annual fee determined by multiplying five dollars ($5.00) by the total number of licensed resident beds;
(2) Adult day care and adult day healthcare facilities shall pay an annual fee determined by multiplying five dollars ($5.00) by the maximum number of persons the facility can serve; and
(3) All other long-term care facilities shall pay an annual fee determined by multiplying ten dollars ($10.00) by the total licensed resident beds or maximum licensed client population.

(h) Annual licensure fees shall be tendered with each application for a new long-term care facility license and with each long-term care facility license renewal application.
(i)
(1) Annual licensure fees are payable in one (1) sum.
(2) Fees for new licensure applications may be prorated by dividing the total fee by three hundred sixty-five (365) and multiplying the result by the number of days from the date the application is approved through June 30, inclusive.
(3) Applications for licensure renewal shall be delivered, or if mailed shall be postmarked, on or before March 1.

(j) Any fee not paid when due shall be delinquent and shall be subject to assessment of a ten-percent penalty.
(k) No license or licensure renewal shall be issued unless the annual licensure fee has been paid in full.
(l) Licenses shall be issued only for the premises and persons named in the application and shall not be transferable.
(m) All funds derived from fees collected pursuant to §§ 20-10-213 — 20-10-228 shall be deposited into the State Treasury and credited to the Division of Economic and Medical Services Administrative Fund to be used for the maintenance and operation of the long-term care facility licensure program.
(n) The department shall not require a license for an adult day care program that is excepted from the definition of long-term care facility under § 20-10-101.