(1) The department may place conditions upon the license of a laboratory under the following circumstances:

(a) the laboratory reports results of an analysis of PE samples that are outside acceptable limits or it fails to report results of a PE sample analysis for any analyte that the laboratory is approved to analyze. In this case:

(i) the laboratory's license is conditional only in regard to the laboratory's approval to conduct analyses of the particular analyte involved;

(ii) the conditional status remains in effect until the next available PE results are reported to the department, at which time:

(A) the conditions will be removed if acceptable PE results are reported to the department; or

(B) approval to conduct the analysis in question will be revoked if unacceptable PE results are reported to the department.

(b) the laboratory notifies the department, after the fact, of changes in personnel, equipment or procedures that have a material effect on the analyses of analytes for which it is approved. In this case, conditional approval will remain in effect until:

(i) the department has re-evaluated the laboratory; and

(ii) those analyses affected by the changes are conducted on PE samples and the results are evaluated by the department, at which time the conditions may be removed if the analyses meet the standards of these rules or approval to do those tests may be revoked if the standards are not met.