(1) The department, through written notice to the applicant or licensee, shall deny, revoke, or restrict a license upon finding that:

(a) the applicant, licensee, or member of the applicant's or licensee's household has a conviction for a serious crime, such as but not limited to homicide, sexual intercourse without consent, sexual assault, aggravated assault, assault on a minor, assault on an officer, assault with a weapon, kidnapping, aggravated kidnapping, prostitution, robbery, or burglary;

(b) the applicant, licensee, or member of the applicant's or licensee's household has a conviction for a crime pertaining to children or families, including but not limited to child abuse or neglect, incest, child sexual abuse, ritual abuse of a minor, felony partner or family member assault, child pornography, child prostitution, internet crimes involving children, felony endangering the welfare of a child, felony unlawful transactions with children, or aggravated interference with parent-child contact; or

(c) the applicant, licensee, or member of the applicant's or licensee's household has within the previous five years had a felony conviction for a drug related offense, including but not limited to use, distribution, or possession of controlled substances, criminal possession of precursors to dangerous drugs, criminal manufacture of dangerous drugs, criminal possession of imitation dangerous drugs with the purpose to distribute, criminal possession, manufacture or delivery of drug paraphernalia, or driving under the influence of alcohol or other drugs; or

(d) the applicant, licensee, or member of the applicant's or licensee's household has been convicted of abuse, sexual abuse, neglect, or exploitation of an elderly person or a person with a developmental disability.

(2) The department, through written notice to the applicant or licensee, may deny, suspend, restrict, or revoke a license upon a finding that:

(a) the applicant, licensee, or member of the licensee's household has a conviction for misdemeanor partner/family member assault, misdemeanor endangering the welfare of a child, misdemeanor unlawful transaction with children, or a crime involving an abuse of the public trust;

(b) the foster home is not in compliance with fire safety standards;

(c) the foster home or foster parents are not in compliance with any other licensing requirements;

(d) the foster parent has made any material misrepresentations to the department, either negligent or intentional, including an omission of information the foster parent is obligated to disclose to the department, regarding any aspect of the foster home;

(e) the foster parent has failed to use the foster care payments for the support of the foster child;

(f) the foster parent has been named as the perpetrator in a substantiated report of abuse or neglect;

(g) the foster parent failed to report an incident of suspected abuse or neglect of any child to the department as required by 41-3-201 , MCA, within 24 hours of receiving information pertaining to the incident;

(h) the results of a psychological or medical examination provide reasonable grounds for the department to believe that the foster parent is not an appropriate caretaker for a child; or

(i) the foster parents or anyone living in the foster home may pose any risk or threat to the safety or welfare of a child placed in the foster home.

(3) The foster home has failed to protect the health, welfare, or safety of a child or the foster home presents a threat to the health, welfare, or safety of a child.

(4) A foster care license may be suspended, restricted, or revoked at the discretion of a department regional administrator if the licensee's child is placed in foster care.