Grounds for denial or revocation of license or termination of contract: Investigation; financial review.

1. The licensing authority must conduct an investigation whenever it has reason to believe that there are grounds: (a) To refuse to issue or renew a license to operate a foster care agency; or (b) To revoke a license to operate a foster care agency or to terminate a contract with a foster care agency. 2. The licensing authority may require an independent financial review of a foster care agency if the financial management of the foster care agency is being investigated and may affect the health, safety or well-being of the children in a foster home with which the foster care agency has entered into a contract. The report of any such financial review must be provided to the licensing authority.