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(l) The Department of Family and Community Services may issue or renew a foster home license under AS 47.32 or provide payments under AS 47.14.100(b) or (d) to an entity, individual service provider, or person if the applicant or a person who resides in the home is barred from licensure or payment under (c), (i)(2), or (i)(3) of this section and (1) a person in the home is an adult family member or family friend of a child in the custody or supervision of the state under AS 47.10; (2) the Department of Family and Community Services finds that placing the child with the entity, individual service provider, or person is in the best interests of the child; and (3) the conduct that is the basis of the finding under (c), (i)(2), or (i)(3) of this section occurred at least 10 years before the date the Department of Family and Community Services receives the application for licensure or renewal or makes a payment to the entity, individual service provider, or person. (m) In this section, (1) “adult family member” has the meaning given in AS 47.10.990; (2) “child care facility” has the meaning given in AS 47.25.095; (3) “foster home” has the meaning given in AS 47.32.900; (4) “residential child care facility” has the meaning given in AS 47.32.900; (5) “supervised access” means that a supervisor maintains a prudent level of awareness of the whereabouts of the individual for whom supervised access is required to ensure the protection of recipients of services. Sec. 47.05.320. Criminal history use standards. The Department of Health and the Department of Family and Community Services shall by regulation establish standards for the consideration and use by that department, an entity, or an individual service provider of the criminal history of an individual obtained under AS 47.05.310. Sec. 47.05.325. Civil history; civil history check; compliance. (a) The Department of Health and the Department of Family and Community Services shall establish by regulation civil history standards for denial of issuance or renewal of a license or certification for an individual or for an entity within that department's licensing or certification authority if the individual who is applying for a license, license renewal, certification, or certification renewal is (1) a biological or adoptive parent, guardian, custodian, or Indian custodian of a child who is or was the subject of a child-in-need-of-aid petition under AS 47.10 and the individual had custody of the child at the time the child was the subject of a petition; or (2) the subject of a finding or circumstance described in AS 47.05.330(a). (b) If an individual is the subject of a petition or finding or circumstance described in (a) of this section, or a substantially similar provision in another jurisdiction, the individual may not own an entity or be an officer, director, partner, member, employee, or principal of the business organization that owns an entity. In addition, an entity may not (1) allow that individual to operate the entity;