(a) After receiving the application, the commission shall issue a license if, after inspection and investigation, it finds that the applicant and facility meet the requirements established under this chapter.
(b) The commission may issue a license only for:
(1) the premises and persons or governmental unit named in the application; and
(2) the maximum number of beds specified in the application.

(c) A license may not be transferred or assigned.
(d) A license is renewable on the third anniversary of issuance or renewal of the license after:
(1) an inspection;
(2) filing and approval of a renewal report; and
(3) payment of the renewal fee.
(e) The renewal report required under Subsection (d)(2) must be filed in accordance with rules adopted by the executive commissioner that specify the form of the report, the date it must be submitted, and the information it must contain.
(f) The commission may not issue a license for new beds or an expansion of an existing facility under this chapter unless the addition of new beds or the expansion is included in the plan approved by the commission in accordance with Section 533A.062.
(g) A license or renewal fee imposed under this chapter is an allowable cost for reimbursement under the state Medicaid program. An increase in the amount of a fee shall be reflected in reimbursement rates prospectively.
(h) The executive commissioner by rule shall:
(1) define specific, appropriate, and objective criteria on which the commission may deny an initial license application or license renewal or revoke a license; and
(2) adopt a system under which:
(A) licenses expire on staggered dates during each three-year period; and
(B) the commission prorates the license fee as appropriate if the expiration date of a license changes as a result of the system adopted under Paragraph (A).