(1) An applicant against whom child abuse or neglect has been substantiated may be denied a foster care license unless an exception is granted by the department after careful review of extenuating circumstances that justify the issuance of a restricted license.

(2) An applicant whose child has been in foster care may be denied a foster care license unless the department grants an exception because the circumstances that led to the provision of services and placement no longer exist. This does not include an applicant whose children were in foster care prior to being placed with the applicant for adoption.

(3) An applicant may not be newly licensed as a youth foster home if any one of the following has occurred within 12 months of the application unless an exception is granted by the appropriate resource family specialist supervisor:

(a) a death of a spouse or a child in the applicant's family;

(b) a marital separation or divorce of the applicants;

(c) an adoption of a child who has not been living with the applicants for at least one year;

(d) the birth of a child to the applicants; or

(e) loss of employment by an applicant.

(4) If any event described in (3)(a) through (3)(e) occurs in a licensed foster home, the foster parents shall notify the licensing worker within 48 hours as required by ARM 37.51.602 and the licensing worker will reevaluate the home within 30 days to determine whether to recommend a change in the licensing status of the home.

(5)  The department shall review the circumstances and the foster parents' ability to maintain safety and well-being for all children in the home when a foster home exceeds more than six children in the home.