Authorizes an adult family home to provide services to up to eight adults upon approval from the department of social and health services.

Requires an applicant requesting to increase bed capacity to seven or eight beds to successfully demonstrate the following to the department: (1) Financial solvency and management experience for the home under its ownership;

(2) The ability to meet other relevant safety, health, and operating standards pertaining to the operation of an eight-bed home, including the ability to meet the needs of all current and prospective residents; and

(3) How to mitigate the potential impact of vehicular traffic related to the operation of the home.

Requires the department to charge a nonrefundable fee to the licensee who is requesting to increase bed capacity at an adult family home to seven or eight beds, or in the event of a change in ownership of the adult family home.