US Laws, Codes, Statutes & Cases

Chapter 443 — Home Health Agencies; Residential Facilities; Hospice Programs

 

2007 EDITION

 

HOME HEALTH; RESIDENTIAL FACILITIES; HOSPICES

 

PUBLIC HEALTH AND SAFETY

 

HOME HEALTH AGENCIES

 

443.005     Definitions for ORS 443.005 to 443.095

 

443.015     License required; renewal, transferability of license

 

443.025     Hospitals exempt from certain requirements if standards are met

 

443.035     License fees; renewal; disposition of funds

 

443.045     Denial, suspension and revocation of licenses

 

443.055     Governing body of home health agencies

 

443.065     General requirements for home health agencies

 

443.075     Services and supplies prescribed by physician or nurse practitioner

 

443.085     Rules

 

443.090     Exemption from in-home care agency licensing requirements

 

443.095     Applicability of laws to domestic service

 

DOMICILIARY CARE FACILITIES

 

443.205     Definitions for ORS 443.215 and 443.225

 

443.215     Policy

 

443.225     Location and capacity of domiciliary care facilities

 

IN-HOME CARE AGENCIES

 

443.305     Definitions for ORS 443.305 to 443.350

 

443.315     License required; application; rules; fees

 

443.325     Grounds for denial, suspension or revocation of license; penalties

 

443.327     Injunctive relief; attorney fees and costs; notice to clients

 

443.340     Rules

 

443.345     Disposition of moneys

 

443.350     Applicability

 

RESIDENTIAL FACILITIES AND HOMES

 

443.400     Definitions for ORS 443.400 to 443.455

 

443.405     Exclusions from definition of “residential facility”

 

443.410     License required

 

443.415     License applications; fee; investigations; grounds for issuance and denial of license

 

443.420     Qualifications for license

 

443.422     Siting of licensed residential facilities

 

443.425     License term; contents; renewal; fee

 

443.430     Transferability of license; disposition of license fees

 

443.435     Inspection of facilities

 

443.437     Choice of prescription and nonprescription drugs and supplies

 

443.440     Revocation and suspension of licenses; procedure

 

443.445     Persons admissible at facilities and homes; transfer of persons requiring certain treatment; operation of facilities by persons relying on spiritual means for healing

 

443.450     Rules

 

443.452     Waiver procedure

 

443.455     Civil penalties; rules

 

443.460     Exemptions

 

REGISTERED RESIDENTIAL FACILITIES

 

443.480     Definitions for ORS 443.480 to 443.500

 

443.485     Registration required; fee; rules; civil penalty; grounds for suspension or revocation of registration

 

443.490     Waiver of registration

 

443.495     Exemptions

 

443.500     Investigation of registered facilities; access to facilities

 

ADULT FOSTER HOMES

 

443.705     Definitions for ORS 443.705 to 443.825

 

443.715     Exclusions from definition of “adult foster home”

 

443.720     Findings of Legislative Assembly

 

443.725     License required; on-site provider required; exception; rules

 

443.730     Information regarding substitute caregivers required; standards; educational requirements; rules

 

443.733     Collective bargaining

 

443.735     Issuance of license; fee; standards; renewal; burden of proof; rules

 

443.738     Educational standards for providers, managers and caregivers; rules; exception; duties of providers

 

443.739     Rights of residents

 

443.740     Information on licensed adult foster homes; availability; content

 

443.742     Annual continuing education requirements; rules

 

443.745     Denial, suspension or revocation; conditional license; review

 

443.755     Entry and inspection of homes; access to residents; inspection report; fire inspection

 

443.760     Application of single family dwelling code requirements to home; rules; evacuation requirement; lease rate

 

443.765     Complaint procedure; retaliation prohibited; notice of rates and rules; liability for complaints

 

443.767     Investigation of complaint; rules

 

443.775     Rules; level of care; exception to limit on residents with nursing care needs; reports on exceptions; provider duties; enforcement; civil penalties

 

443.780     Exemption where county has licensing and inspection program

 

443.785     Admission of Medicaid recipients

 

443.790     Authority of director to impose civil penalty; factors to be considered; rules

 

443.795     Civil penalty; notice; hearing

 

443.815     Judicial review of penalties

 

443.825     Disposition of penalties recovered

 

DEVELOPMENTAL DISABILITY CHILD FOSTER HOMES

 

443.830     Definitions for ORS 443.830 and 443.835

 

443.835     Certificate required; rules

 

HOSPICE PROGRAMS

 

443.850     Definitions for ORS 443.850 to 443.870

 

443.860     Certification or accreditation required; exception

 

443.865     Enforcement; rules; civil penalties

 

443.870     Hospice program registry

 

PROPERTY OF RESIDENTS

 

443.880     Responsibilities of residential facility regarding property of resident

 

443.881     Transfer of property; undue influence

 

ALZHEIMER’S DISEASE

 

443.885     Registration of certain facilities

 

443.886     Special indorsement required; standards; fees; rules

 

MISCELLANEOUS

 

443.888     Exemption from ad valorem property taxation for certain facilities; certification

 

PENALTIES

 

443.991     Penalties

 

HOME HEALTH AGENCIES

 

      443.005 Definitions for ORS 443.005 to 443.095. As used in ORS 443.005 to 443.095:

      (1) “Department” means the Department of Human Services.

      (2) “Home health agency” means a public or private agency providing coordinated home health services on a home visiting basis. “Home health agency” does not include:

      (a) Any visiting nurse service or home health service conducted by and for those who rely upon spiritual means through prayer alone for healing in accordance with the tenets and practices of a recognized church or religious denomination.

      (b) Those home health services offered by county health departments outside, and in addition to, programs formally designated and funded as home health agencies.

      (3) “Home health services” means items and services furnished to an individual by a home health agency, or by others under arrangements with such agency, on a visiting basis, in a place of temporary or permanent residence used as the individual’s home for the purpose of maintaining that individual at home. [1977 c.738 §1; 1979 c.209 §1; 1981 c.415 §1; 2003 c.57 §1]

 

      443.010 [Amended by 1963 c.164 §1; repealed by 1969 c.641 §19]

 

      443.015 License required; renewal, transferability of license. No public or private agency or person shall establish, conduct or maintain a home health agency or organization providing home health services for compensation, or hold itself out to the public as a home health agency or organization, without first obtaining a license therefor from the Department of Human Services. The license shall be renewable annually and is not transferable. [1977 c.738 §2; 2003 c.14 §259]

 

      443.020 [Amended by 1957 c.697 §4; 1961 c.316 §10; 1967 c.89 §6; repealed by 1969 c.641 §19]

 

      443.025 Hospitals exempt from certain requirements if standards are met. Any hospital licensed under ORS 441.015 may provide home health services without paying a separate licensing fee and without maintaining a separate governing body and administrative staff so long as the services provided meet the requirements of ORS 443.005 to 443.095. [1977 c.738 §7; 1995 c.449 §3]

 

      443.030 [Repealed by 1969 c.641 §19]

 

      443.035 License fees; renewal; disposition of funds. (1) The Department of Human Services may grant a license to a home health agency for a calendar year, may annually renew a license and may allow for a change of ownership, upon payment of a fee as follows:

      (a) For a new home health agency:

      (A) $1,000; and

      (B) An additional $1,000 for each subunit of a parent home health agency.

      (b) For renewal of a license:

      (A) $600; and

      (B) An additional $600 for each subunit of a parent home health agency.

      (c) For a change of ownership at a time other than the annual renewal date:

      (A) $500; and

      (B) An additional $500 for each subunit of a parent home health agency.

      (2) Notwithstanding subsection (1)(c) of this section, the fee for a change in ownership shall be $100 if a change in ownership does not involve:

      (a) The majority owner or partner; or

      (b) The administrator operating the agency.

      (3) All fees received pursuant to subsection (1) of this section shall be paid over to the State Treasurer and credited to the Public Health Account. Such moneys are appropriated continuously to the Department of Human Services for the administration of ORS 443.005 to 443.095. [1977 c.738 §8; 1995 c.449 §4; 2005 c.22 §302; 2007 c.71 §131]

 

      443.040 [Repealed by 1969 c.641 §19]

 

      443.045 Denial, suspension and revocation of licenses. (1) The Department of Human Services may deny, suspend or revoke the license of any home health agency for failure to comply with ORS 443.005 to 443.095 or with the rules of the department as authorized by ORS 443.085.

      (2) License denials, suspensions and revocations, adoption of rules and judicial review thereof shall be in accordance with ORS chapter 183. [1977 c.738 §9]

 

      443.050 [Repealed by 1969 c.641 §19]

 

      443.055 Governing body of home health agencies. A home health agency shall have an organized governing body, or, if a subdivision of a public or private agency or a multifunction organization, a clearly defined local body having responsibility for the conduct of the home health agency. Where the governing body is functionally remote from the operation of the home health agency, the Department of Human Services may approve the designation of an appropriate part of the organization as the governing body. [1977 c.738 §3]

 

      443.060 [Amended by 1963 c.164 §2; repealed by 1969 c.641 §19]

 

      443.065 General requirements for home health agencies. The home health agency shall:

      (1) Be primarily engaged in providing skilled nursing services and at least one other service delineated in ORS 443.075 (2) and (3);

      (2) Have policies established by professional personnel associated with the agency or organization, including one or more physicians and one or more registered nurses, at least two of whom are neither owners nor employees of the agency, and two consumers, to govern the services that it provides;

      (3) Require supervision of services that it provides under subsection (1) of this section by a physician, nurse practitioner or registered nurse, preferably a public health nurse;

      (4) Maintain clinical, financial and professional records on all patients; and

      (5) Have an overall plan and budget in effect. [1977 c.738 §4; 1981 c.415 §2; 2001 c.346 §1]

 

      443.075 Services and supplies prescribed by physician or nurse practitioner. The following services and supplies may be prescribed by a physician or a nurse practitioner in accordance with a plan of treatment which must be established and periodically reviewed by the physician or nurse practitioner:

      (1) Home nursing care provided by or under the supervision of a registered nurse;

      (2) Physical, occupational or speech therapy, medical social services or other therapeutic services;

      (3) Home health aide services; and

      (4) Medical supplies, other than drugs and biologicals, and the use of medical appliances. [1977 c.738 §5; 1981 c.415 §3; 2001 c.346 §2]

 

      443.085 Rules. The Department of Human Services shall adopt rules relating to the home health agencies licensed under ORS 443.005 to 443.095, governing:

      (1) The qualifications of professional and ancillary personnel in order to adequately furnish home health services;

      (2) Standards for the organization and quality of patient care;

      (3) Procedures for maintaining records; and

      (4) Provision for contractual arrangements for professional and ancillary health services. [1977 c.738 §6; 2005 c.22 §303]

 

      443.090 Exemption from in-home care agency licensing requirements. Notwithstanding ORS 443.305 to 443.350, a home health agency licensed under ORS 443.015 that provides personal care services that are necessary to assist an individual in meeting the individual’s daily needs, but do not include curative or rehabilitative services, is not required to be licensed as an in-home care agency under ORS 443.315. [2003 c.57 §3]

 

      443.095 Applicability of laws to domestic service. No provision of ORS 443.005 to 443.095 shall be construed to prevent repair or domestic services by any person. [1977 c.738 §10; 2005 c.22 §304]

 

DOMICILIARY CARE FACILITIES

 

      443.205 Definitions for ORS 443.215 and 443.225. As used in ORS 443.215 and 443.225, “domiciliary care facilities” means facilities providing residential care to adults, including adult foster homes, group care facilities or residential treatment, training or care facilities, established, contracted for or operated by the Department of Human Services. [1977 c.779 §3; formerly 184.870; 1987 c.320 §234; 2001 c.900 §181; 2007 c.21 §4]

      443.210 [1953 c.659 §1; 1965 c.230 §1; 1973 c.285 §8; repealed by 1977 c.717 §23]

 

      443.215 Policy. (1) The Legislative Assembly recognizes the importance of providing a high quality of domiciliary care facilities throughout the State of Oregon.

      (2) It is the intent of ORS 443.205 to 443.225 to distribute domiciliary care facility capacity on the basis of population and the regional origin of institutionalized persons. [1977 c.779 §1; formerly 184.875]

 

      443.220 [1953 c.659 §2; 1971 c.650 §21; 1973 c.285 §9; repealed by 1977 c.717 §23]

 

      443.225 Location and capacity of domiciliary care facilities. (1) Except as otherwise provided by subsections (3) and (4) of this section, the capacity of all domiciliary care facilities must be located throughout the state based on the relationship of the population of the county in which the additional capacity is proposed to be located to the number of persons originating from the county determined to be in need of domiciliary care by the Department of Human Services. However, nothing in this subsection is intended to prevent the placement of a person who is or was not a resident of the county in a domiciliary care facility in the county.

      (2) When a county is too sparsely populated to produce a meaningful ratio of county population to population in need, or a county is lacking necessary support services, the population of two or more counties may be combined. The area of the combined counties may be considered a county for purposes of subsection (1) of this section.

      (3) The computation required by subsection (1) of this section does not require reduction in any domiciliary care facility capacity existing on October 4, 1977.

      (4) Subject to the appropriate licensing requirements, the governing body of a county may authorize a domiciliary care facility located in the county to exceed the capacity limit imposed by subsection (1) of this section upon:

      (a) Request of an individual or organization operating or proposing to operate a domiciliary care facility;

      (b) Consultation with an advisory committee appointed by the governing body and consisting of persons who are particularly interested in the type of domiciliary care facility contemplated; and

      (c) Finding of good cause following notice and public hearing. [1977 c.779 §2; 1979 c.235 §1; formerly 184.880; 2007 c.71 §132]

 

      443.230 [1953 c.659 §3; 1973 c.285 §10; repealed by 1977 c.717 §23]

 

      443.240 [1953 c.659 §§4,5; 1973 c.285 §11; repealed by 1977 c.717 §23]

 

      443.250 [1953 c.659 §6; 1961 c.316 §11; 1967 c.89 §7; 1973 c.285 §12; repealed by 1977 c.717 §23]

 

      443.260 [1953 c.659 §7; 1961 c.316 §12; 1967 c.89 §8; 1973 c.285 §13; repealed by 1977 c.717 §23]

 

      443.270 [1953 c.659 §8; repealed by 1973 c.285 §19]

 

      443.280 [1953 c.659 §9; 1973 c.285 §14; repealed by 1977 c.717 §23]

 

      443.290 [1953 c.659 §10; 1973 c.285 §15; repealed by 1977 c.717 §23]

 

      443.300 [1953 c.659 §11; 1973 c.285 §16; repealed by 1977 c.717 §23]

 

IN-HOME CARE AGENCIES

 

      443.305 Definitions for ORS 443.305 to 443.350. As used in ORS 443.305 to 443.350:

      (1) “In-home care agency” means an agency primarily engaged in providing in-home care services for compensation to an individual in that individual’s place of residence. “In-home care agency” does not include a home health agency as defined in ORS 443.005.

      (2) “In-home care services” means personal care services furnished by an in-home care agency, or an individual under an arrangement or contract with an in-home care agency, that are necessary to assist an individual in meeting the individual’s daily needs, but does not include curative or rehabilitative services.

      (3) “Subunit” means an in-home care agency that provides services for a parent agency in a geographic area different from that of the parent agency and generally exceeding one hour of travel time from the location of the parent agency. [1999 c.1034 §1]

 

      Note: 443.305 to 443.350 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 443 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      443.310 [1953 c.659 §12; 1973 c.285 §17; repealed by 1977 c.717 §23]

 

      443.315 License required; application; rules; fees. (1) A person may not operate or maintain an in-home care agency or purport to operate or maintain an in-home care agency without obtaining a license from the Department of Human Services.

      (2) The department shall establish requirements and qualifications for licensure under this section by rule. The department shall issue a license to an applicant that has the necessary qualifications and meets all requirements established by rule, including the payment of required fees. An in-home care agency shall be required to maintain administrative and professional oversight to ensure the quality of services provided.

      (3) Application for a license required under subsection (1) of this section shall be made in the form and manner required by the department by rule and shall be accompanied by any required fees.

      (4) A license may be granted, or may be renewed annually, upon payment of a fee as follows:

      (a) For the initial licensure of an in-home care agency:

      (A) $1,500; and

      (B) An additional $750 for each subunit.

      (b) For renewal of a license:

      (A) $750; and

      (B) An additional $750 for each subunit.

      (c) For a change of ownership at a time other than the annual renewal date:

      (A) $350; and

      (B) An additional $350 for each subunit.

      (5) A license issued under this section is valid for one year. A license may be renewed by payment of the required renewal fee and by demonstration of compliance with requirements for renewal established by rule.

      (6) A license issued under this section is not transferable.

      (7) The department shall conduct an on-site inspection of each in-home care agency prior to services being rendered and once every three years thereafter as a requirement for licensing. [1999 c.1034 §2; 2005 c.22 §305; 2007 c.897 §1]

 

      Note: See note under 443.305.

 

      443.320 [1953 c.659 §13; repealed by 1971 c.734 §21]

 

      443.325 Grounds for denial, suspension or revocation of license; penalties. The Department of Human Services may impose a civil penalty in the manner provided in ORS 183.745 and deny, suspend or revoke the license of any in-home care agency licensed under ORS 443.315 for failure to comply with ORS 443.305 to 443.350 or with rules adopted thereunder. A failure to comply with ORS 443.305 to 443.350 includes, but is not limited to:

      (1) Failure to provide a written disclosure statement to the client or the client’s representative prior to in-home care services being rendered;

      (2) Failure to provide the contracted in-home care services; or

      (3) Failure to correct deficiencies identified during a department inspection. [1999 c.1034 §3; 2007 c.897 §2]

 

      Note: See note under 443.305.

 

      443.327 Injunctive relief; attorney fees and costs; notice to clients. (1) Notwithstanding the existence and pursuit of any other remedy, the Department of Human Services may, in the manner provided by law, maintain an action in the name of the state for injunction or other process against any person to restrain or prevent the establishment, conduct, management or operation of an in-home care agency without a license. The department may recover attorney fees and court costs for any such action.

      (2) If an in-home care agency is found to be operating without a valid license, the in-home care agency must provide notice to its clients in a manner and period of time set forth by the department. [2007 c.897 §4]

 

      Note: See note under 443.305.

 

      443.330 [1953 c.659 §15; 1973 c.285 §18; repealed by 1977 c.717 §23]

 

      443.335 [1971 c.734 §60; repealed by 1977 c.717 §23]

 

      443.340 Rules. The Department of Human Services shall adopt administrative rules necessary for the implementation and administration of ORS 443.305 to 443.350. These rules shall include, but are not limited to, a requirement that an in-home care agency must conduct criminal background checks on all individuals employed by or contracting with the agency as in-home caregivers. [1999 c.1034 §4; 2001 c.900 §182]

 

      Note: See note under 443.305.

 

      443.345 Disposition of moneys. All moneys received pursuant to ORS 443.315, 443.325 and 443.327 shall be deposited in the State Treasury and credited to an account designated by the Department of Human Services. Such moneys are continuously appropriated to the department for the administration of ORS 443.305 to 443.350. [1999 c.1034 §5; 2007 c.897 §5]

 

      Note: See note under 443.305.

 

      443.350 Applicability. The provisions of ORS 443.305 to 443.350 do not apply to organizations licensed, registered or certified under ORS 101.030, 410.495, 443.410, 443.485, 443.725, 443.860 or 443.886. [1999 c.1034 §6]

 

      Note: See note under 443.305.

 

RESIDENTIAL FACILITIES AND HOMES

 

      443.400 Definitions for ORS 443.400 to 443.455. As used in ORS 443.400 to 443.455 and 443.991 (2), unless the context requires otherwise:

      (1) “Department” means the Department of Human Services.

      (2) “Director” means the Director of Human Services.

      (3) “Resident” means any individual residing in a facility who receives residential care, treatment or training. For purposes of ORS 443.400 to 443.455, an individual is not considered to be a resident if the individual is related by blood or marriage within the fourth degree as determined by civil law to the person licensed to operate or maintain the facility.

      (4) “Residential care” means services such as supervision; protection; assistance while bathing, dressing, grooming or eating; management of money; transportation; recreation; and the providing of room and board.

      (5) “Residential care facility” means a facility that provides, for six or more socially dependent individuals or individuals with physical disabilities, residential care in one or more buildings on contiguous properties.

      (6) “Residential facility” means a residential care facility, residential training facility, residential treatment facility, residential training home or residential treatment home.

      (7) “Residential training facility” means a facility that provides, for six or more individuals with mental retardation or other developmental disabilities, residential care and training in one or more buildings on contiguous properties.

      (8) “Residential training home” means a facility that provides, for five or fewer individuals with mental retardation or other developmental disabilities, residential care and training in one or more buildings on contiguous properties, when so certified and funded by the department.

      (9) “Residential treatment facility” means a facility that provides, for six or more individuals with mental, emotional or behavioral disturbances or alcohol or drug dependence, residential care and treatment in one or more buildings on contiguous properties.

      (10) “Residential treatment home” means a facility that provides for five or fewer individuals with mental, emotional or behavioral disturbances or alcohol or drug dependence, residential care and treatment in one or more buildings on contiguous properties.

      (11) “Training” means the systematic, planned maintenance, development or enhancement of self-care skills, social skills or independent living skills, or the planned sequence of systematic interactions, activities or structured learning situations designed to meet each resident’s specified needs in the areas of physical, social, emotional and intellectual growth.

      (12) “Treatment” means a planned, individualized program of medical, psychological or rehabilitative procedures, experiences and activities designed to relieve or minimize mental, emotional, physical or other symptoms or social, educational or vocational disabilities resulting from or related to the mental or emotional disturbance, physical disability or alcohol or drug problem. [1977 c.717 §1; 1987 c.548 §1; 1989 c.224 §95; 1989 c.488 §1; 1991 c.801 §1; 2001 c.900 §183; 2005 c.22 §306; 2007 c.70 §245]

 

      443.405 Exclusions from definition of “residential facility.” For purposes of ORS 443.400 to 443.455 and 443.991 (2), “residential facility” does not include:

      (1) A residential school;

      (2) A state or local correctional facility, other than a local facility for persons enrolled in work release programs maintained under ORS 144.460;

      (3) A youth correction facility as defined in ORS 420.005;

      (4) A youth care center operated by a county juvenile department under administrative control of a juvenile court pursuant to ORS 420.855 to 420.885;

      (5) A juvenile detention facility as defined in ORS 419A.004;

      (6) A nursing home;

      (7) A hospital;

      (8) A place primarily engaged in recreational activities;

      (9) A foster home; or

      (10) A place providing care and treatment on less than a 24-hour basis. [1977 c.717 §2; 1983 c.510 §18; 1993 c.33 §350; 1999 c.316 §2; 2005 c.22 §307]

 

      443.410 License required. A license issued by the Department of Human Services is required in order to operate or maintain any residential facility for persons who have developmental, physical or psychiatric disabilities or are socially dependent or alcohol or drug dependent. In the case of a combination of residents, the category of licensure shall be determined by the Director of Human Services. [1977 c.717 §3; 1983 c.510 §19; 1989 c.224 §96; 1989 c.488 §2; 1991 c.801 §2; 2007 c.70 §246]

 

      443.415 License applications; fee; investigations; grounds for issuance and denial of license. (1) Applications for licensure to maintain and operate a residential facility shall be made to the Department of Human Services on forms provided for that purpose by the department. Each application shall be accompanied by a fee of $60 for facilities defined in ORS 443.400 (5), (7) and (9) and a fee of $30 for homes defined in ORS 443.400 (8) and (10). No fee is required of any governmentally operated residential facility.

      (2) Upon receipt of an application and fee, the department shall conduct an investigation. The department shall issue a license to any applicant for operation of a residential facility in compliance with ORS 443.400 to 443.455 and the rules of the director. Licensure may be denied when a residential facility is not in compliance with ORS 443.400 to 443.455 or the rules of the Director of Human Services. Licensure shall be denied if the State Fire Marshal or other authority has given notice of noncompliance of facilities defined in ORS 443.400 (5), (7) and (9) pursuant to ORS 479.220. [1977 c.717 §8; 1979 c.696 §16; 1987 c.548 §2; 2001 c.900 §184; 2005 c.22 §308]

 

      Note: Sections 1 and 2, chapter 981, Oregon Laws 2001, provide:

      Sec. 1. (1) Notwithstanding ORS 443.415, the Department of Human Services may issue a license only to an applicant for operation of a residential care facility as defined in ORS 443.400 who is in compliance with ORS 443.400 to 443.455 and the rules of the Director of Human Services if:

      (a) The type of residential care facility for which a license is sought is located in a service area that is underserved by facilities of that type;

      (b) The residential care facility is relocating within the service area and the applicant is seeking an increase in the number of living units or residents in the facility as specified in subsection (2) of this section;

      (c) The schematic plans or construction drawings for a new residential care facility were submitted to the department before August 16, 2001;

      (d) There is a change of ownership or management of the residential care facility and the applicant is seeking an increase in the number of living units or residents in the facility as specified in subsection (2) of this section; or

      (e) The residential care facility is applying for a license renewal under ORS 443.425 and the applicant is seeking an increase in the number of living units or residents in the facility as specified in subsection (2) of this section.

      (2) An applicant may seek an increase in the number of residents to be maintained in the residential care facility:

      (a) That is not greater than 10 percent of the maximum number of residents stated on the facility’s license at the time of application; or

      (b) Of 10 residents.

      (3) In calculating 10 percent of the maximum number of residents, the department shall round up to the nearest