(1) Each private correctional facility within the state of Montana must be licensed by the department. The facility's current license must be prominently displayed in the general administration area of the facility.

(2) The department shall issue a one-year private prison license to any private correctional facility that has fulfilled the requirements of law, these rules, and the private prison siting and construction standards contained in ARM Title 20, chapter 27, subchapter 1.

(3) The department shall renew the license annually on the expiration date of the previous year's license if the facility continues to meet the requirements of law and these rules.

(4) The department shall issue a provisional license for up to six months to any license applicant which:

(a) has met all applicable requirements for fire, life safety and health standards; and

(b) has agreed in writing to comply fully with all requirements established by these rules within the time period covered by the provisional license.

(5) The department may renew a provisional license if the license applicant shows good cause for failure to comply fully with all of the requirements within the time period covered by the prior provisional license. The total time period covered by the initial provisional license and renewals may not exceed one year.