(1) If there is a preponderance of evidence that sexual intercourse or sexual contact between a JR contractor and a JR youth occurred, the secretary must inform the contractor that the individual employee is disqualified from employment with a contractor in any position with access to JR youth.

(2) A contract with a contractor who has had an employee who has been disqualified for employment based on a preponderance of evidence that they had sexual intercourse or sexual contact with a JR youth, must not be renewed until the secretary determines that significant progress has been made by the contractor to reduce the likelihood that any of its employees or subcontractors have sexual intercourse or sexual contact with a JR youth.