(1) The licensing agency may deny or refuse to renew a license for any of the reasons set forth in subsection (3) of this section.

(2) Before the licensing agency may deny or refuse to renew a license, the county or contractor operating the juvenile detention facility is entitled to a hearing before the director of the licensing agency in order to show cause why the license should not be denied or should be renewed.

(3) The licensing agency may suspend, revoke, or restrict the license of any juvenile detention center upon one or more of the following grounds:

(a) Fraud, misrepresentation or concealment of material facts;

(b) Violation of any of the provisions of Sections 43-21-901 through 43-21-915 or any of the regulations governing the licensing and regulation of juvenile detention facilities promulgated by the licensing agency;

(c) Any conduct, or failure to act that is found or determined by the licensing agency to threaten the health and safety of children at the facility;

(d) Failure of a juvenile detention facility to conduct background checks as required under Section 43-21-907.

(e) Information that is received by the licensing agency as a result of the criminal records background check and the child abuse registry check on all facility administrators and facility staff under Section 43-21-907.

(4) The licensing agency shall develop rules and regulations related to the development and implementation of corrective action plans to address violations at facilities before a revocation, suspension, or restriction of the facility’s license.

(5) Before the licensing agency may suspend, revoke or restrict the license of a facility, the county or contractor affected by that decision is entitled to a hearing before the director of the licensing agency in which it may show cause why the license should not be suspended, revoked, or restricted.

(6) A juvenile detention facility that disagrees with or is aggrieved by the licensing agency in regard to the denial, refusal to renew, or the suspension, revocation, or restriction of the license for the juvenile detention facility may appeal to the chancery court of the county in which the facility is located. The appeal shall be filed no later than thirty (30) days after the licensee receives written notice of the final administrative action by the licensing agency.