SF 3098

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to human services; clarifying exclusions from 
  1.3             department of human services licensure, background 
  1.4             study requirements, due process, training, and license 
  1.5             delegations; amending fair hearing requirements; 
  1.6             clarifying a provision related to errors when 
  1.7             providing therapeutic conduct to a vulnerable adult; 
  1.8             making technical changes to continuing care programs; 
  1.9             repealing references to the continuing education 
  1.10            infectious disease requirement for licensed 
  1.11            acupuncturists; expanding the definition of project 
  1.12            construction costs and of eligible nursing home; 
  1.13            clarifying implementation deadlines for reimbursement 
  1.14            classifications; clarifying medical assistance covered 
  1.15            services; amending Minnesota Statutes 2000, sections 
  1.16            147B.02, subdivision 9; 245A.02, by adding 
  1.17            subdivisions; 245A.04, by adding a subdivision; 
  1.18            256B.0625, by adding a subdivision; 256B.0915, 
  1.19            subdivisions 4, 6, by adding a subdivision; 256B.431, 
  1.20            subdivisions 14, 30; 256B.5012, subdivision 2; 
  1.21            626.557, subdivision 3a; Minnesota Statutes 2001 
  1.22            Supplement, sections 144A.071, subdivision 1a; 
  1.23            144A.36, subdivision 1; 245A.03, subdivision 2; 
  1.24            245A.04, subdivisions 3, 3a, 3b; 245A.07, subdivisions 
  1.25            2a, 3; 245A.144; 245A.16, subdivision 1; 256.045, 
  1.26            subdivisions 3b, 4; 256B.0913, subdivisions 4, 5, 8, 
  1.27            10, 12, 14; 256B.0915, subdivision 5; 256B.431, 
  1.28            subdivisions 2e, 33; 256B.437, subdivision 3; 
  1.29            256B.438, subdivision 1; 256B.76; 626.556, subdivision 
  1.30            10i; 626.557, subdivision 9d; proposing coding for new 
  1.31            law in Minnesota Statutes, chapter 245A; repealing 
  1.32            Minnesota Statutes 2000, section 147B.01, subdivisions 
  1.33            8, 15; Minnesota Statutes 2001 Supplement, section 
  1.34            256B.0621, subdivision 1. 
  1.35  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.36     Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.37  144A.071, subdivision 1a, is amended to read: 
  1.38     Subd. 1a.  [DEFINITIONS.] For purposes of sections 144A.071 
  1.39  to 144A.073, the following terms have the meanings given them: 
  1.40     (a) "Attached fixtures" has the meaning given in Minnesota 
  2.1   Rules, part 9549.0020, subpart 6. 
  2.2      (b) "Buildings" has the meaning given in Minnesota Rules, 
  2.3   part 9549.0020, subpart 7. 
  2.4      (c) "Capital assets" has the meaning given in section 
  2.5   256B.421, subdivision 16. 
  2.6      (d) "Commenced construction" means that all of the 
  2.7   following conditions were met:  the final working drawings and 
  2.8   specifications were approved by the commissioner of health; the 
  2.9   construction contracts were let; a timely construction schedule 
  2.10  was developed, stipulating dates for beginning, achieving 
  2.11  various stages, and completing construction; and all zoning and 
  2.12  building permits were applied for. 
  2.13     (e) "Completion date" means the date on which a certificate 
  2.14  of occupancy is issued for a construction project, or if a 
  2.15  certificate of occupancy is not required, the date on which the 
  2.16  construction project is available for facility use. 
  2.17     (f) "Construction" means any erection, building, 
  2.18  alteration, reconstruction, modernization, or improvement 
  2.19  necessary to comply with the nursing home licensure rules. 
  2.20     (g) "Construction project" means: 
  2.21     (1) a capital asset addition to, or replacement of a 
  2.22  nursing home or certified boarding care home that results in new 
  2.23  space or the remodeling of or renovations to existing facility 
  2.24  space; 
  2.25     (2) the remodeling or renovation of existing facility space 
  2.26  the use of which is modified as a result of the project 
  2.27  described in clause (1).  This existing space and the project 
  2.28  described in clause (1) must be used for the functions as 
  2.29  designated on the construction plans on completion of the 
  2.30  project described in clause (1) for a period of not less than 24 
  2.31  months; or 
  2.32     (3) capital asset additions or replacements that are 
  2.33  completed within 12 months before or after the completion date 
  2.34  of the project described in clause (1). 
  2.35     (h) "New licensed" or "new certified beds" means: 
  2.36     (1) newly constructed beds in a facility or the 
  3.1   construction of a new facility that would increase the total 
  3.2   number of licensed nursing home beds or certified boarding care 
  3.3   or nursing home beds in the state; or 
  3.4      (2) newly licensed nursing home beds or newly certified 
  3.5   boarding care or nursing home beds that result from remodeling 
  3.6   of the facility that involves relocation of beds but does not 
  3.7   result in an increase in the total number of beds, except when 
  3.8   the project involves the upgrade of boarding care beds to 
  3.9   nursing home beds, as defined in section 144A.073, subdivision 
  3.10  1.  "Remodeling" includes any of the type of conversion, 
  3.11  renovation, replacement, or upgrading projects as defined in 
  3.12  section 144A.073, subdivision 1. 
  3.13     (i) "Project construction costs" means the cost of the 
  3.14  facility capital asset additions, replacements, renovations, or 
  3.15  remodeling projects, construction site preparation costs, and 
  3.16  related soft costs.  Project construction costs include the cost 
  3.17  of any remodeling or renovation of existing facility space which 
  3.18  is modified as a result of the construction project.  Project 
  3.19  construction costs also includes the cost of new technology 
  3.20  implemented as part of the construction project.  Project 
  3.21  construction costs also include the cost of new technology 
  3.22  implemented as part of the construction project and depreciable 
  3.23  equipment directly identified to the project.  Any new 
  3.24  technology and depreciable equipment included in the project 
  3.25  construction costs shall, at the written election of the 
  3.26  facility, be included in the facility's appraised value for 
  3.27  purposes of Minnesota Rules, part 9549.0020, subpart 5, and debt 
  3.28  incurred for its purchase shall be included as allowable debt 
  3.29  for purposes of Minnesota Rules, part 9549.0060, subpart 5, 
  3.30  items A and C.  Any new technology and depreciable equipment 
  3.31  included in the project construction costs that the facility 
  3.32  elects not to include in its appraised value and allowable debt 
  3.33  shall be treated as provided in section 256B.431, subdivision 
  3.34  17, paragraph (b).  Written election under this paragraph must 
  3.35  be included in the facility's request for the rate change 
  3.36  related to the project, and this election may not be changed. 
  4.1      (j) "Technology" means information systems or devices that 
  4.2   make documentation, charting, and staff time more efficient or 
  4.3   encourage and allow for care through alternative settings 
  4.4   including, but not limited to, touch screens, monitors, 
  4.5   hand-helds, swipe cards, motion detectors, pagers, telemedicine, 
  4.6   medication dispensers, and equipment to monitor vital signs and 
  4.7   self-injections, and to observe skin and other conditions. 
  4.8      Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  4.9   144A.36, subdivision 1, is amended to read: 
  4.10     Subdivision 1.  [DEFINITIONS.] "Eligible nursing home" 
  4.11  means any nursing home licensed under sections 144A.01 to 
  4.12  144A.155 and or any boarding care facility, certified by the 
  4.13  appropriate authority under United States Code, title 42, 
  4.14  sections 1396-1396p, to participate as a vendor in the medical 
  4.15  assistance program established under chapter 256B. 
  4.16     Sec. 3.  Minnesota Statutes 2000, section 147B.02, 
  4.17  subdivision 9, is amended to read: 
  4.18     Subd. 9.  [RENEWAL.] (a) To renew a license an applicant 
  4.19  must: 
  4.20     (1) annually, or as determined by the board, complete a 
  4.21  renewal application on a form provided by the board; 
  4.22     (2) submit the renewal fee; 
  4.23     (3) provide evidence annually of one hour of continuing 
  4.24  education in the subject of infection control, including blood 
  4.25  borne pathogen diseases; 
  4.26     (4) provide documentation of current and active NCCAOM 
  4.27  certification; or 
  4.28     (5) (4) if licensed under subdivision 5 or 6, meet the same 
  4.29  NCCAOM professional development activity requirements as those 
  4.30  licensed under subdivision 7. 
  4.31     (b) An applicant shall submit any additional information 
  4.32  requested by the board to clarify information presented in the 
  4.33  renewal application.  The information must be submitted within 
  4.34  30 days after the board's request, or the renewal request is 
  4.35  nullified. 
  4.36     Sec. 4.  Minnesota Statutes 2000, section 245A.02, is 
  5.1   amended by adding a subdivision to read: 
  5.2      Subd. 2a.  [ADULT DAY CARE.] "Adult day care" means a 
  5.3   program operating less than 24 hours per day that provides 
  5.4   functionally impaired adults with an individualized and 
  5.5   coordinated set of services including health services, social 
  5.6   services, and nutritional services that are directed at 
  5.7   maintaining or improving the participants' capabilities for 
  5.8   self-care.  Adult day care does not include programs where 
  5.9   adults gather or congregate primarily for purposes of 
  5.10  socialization, education, supervision, caregiver respite, 
  5.11  religious expression, exercise, or nutritious meals. 
  5.12     Sec. 5.  Minnesota Statutes 2000, section 245A.02, is 
  5.13  amended by adding a subdivision to read: 
  5.14     Subd. 2b.  [ANNUAL OR ANNUALLY.] "Annual" or "annually" 
  5.15  means prior to or within the same month of the subsequent 
  5.16  calendar year. 
  5.17     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  5.18  245A.03, subdivision 2, is amended to read: 
  5.19     Subd. 2.  [EXCLUSION FROM LICENSURE.] (a) This chapter does 
  5.20  not apply to: 
  5.21     (1) residential or nonresidential programs that are 
  5.22  provided to a person by an individual who is related unless the 
  5.23  residential program is a child foster care placement made by a 
  5.24  local social services agency or a licensed child-placing agency, 
  5.25  except as provided in subdivision 2a; 
  5.26     (2) nonresidential programs that are provided by an 
  5.27  unrelated individual to persons from a single related family; 
  5.28     (3) residential or nonresidential programs that are 
  5.29  provided to adults who do not abuse chemicals or who do not have 
  5.30  a chemical dependency, a mental illness, mental retardation or a 
  5.31  related condition, a functional impairment, or a physical 
  5.32  handicap; 
  5.33     (4) sheltered workshops or work activity programs that are 
  5.34  certified by the commissioner of economic security; 
  5.35     (5) programs for children enrolled in kindergarten to the 
  5.36  12th grade and prekindergarten special education in a school as 
  6.1   defined in section 120A.22, subdivision 4, and programs serving 
  6.2   children in combined special education and regular 
  6.3   prekindergarten programs that are operated or assisted by the 
  6.4   commissioner of children, families, and learning; 
  6.5      (6) nonresidential programs primarily for children that 
  6.6   provide care or supervision, without charge for ten or fewer 
  6.7   days a year, and for periods of less than three hours a day 
  6.8   while the child's parent or legal guardian is in the same 
  6.9   building as the nonresidential program or present within another 
  6.10  building that is directly contiguous to the building in which 
  6.11  the nonresidential program is located; 
  6.12     (7) nursing homes or hospitals licensed by the commissioner 
  6.13  of health except as specified under section 245A.02; 
  6.14     (8) board and lodge facilities licensed by the commissioner 
  6.15  of health that provide services for five or more persons whose 
  6.16  primary diagnosis is mental illness who have refused an 
  6.17  appropriate residential program offered by a county agency.  
  6.18  This exclusion expires on July 1, 1990; 
  6.19     (9) homes providing programs for persons placed there by a 
  6.20  licensed agency for legal adoption, unless the adoption is not 
  6.21  completed within two years; 
  6.22     (10) programs licensed by the commissioner of corrections; 
  6.23     (11) recreation programs for children or adults that 
  6.24  operate for fewer than 40 calendar days in a calendar year or 
  6.25  programs operated by a park and recreation board of a city of 
  6.26  the first class whose primary purpose is to provide social and 
  6.27  recreational activities to school age children, provided the 
  6.28  program is approved by the park and recreation board; 
  6.29     (12) programs operated by a school as defined in section 
  6.30  120A.22, subdivision 4, whose primary purpose is to provide 
  6.31  child care to school-age children, provided the program is 
  6.32  approved by the district's school board; 
  6.33     (13) Head Start nonresidential programs which operate for 
  6.34  less than 31 days in each calendar year; 
  6.35     (14) noncertified boarding care homes unless they provide 
  6.36  services for five or more persons whose primary diagnosis is 
  7.1   mental illness or mental retardation; 
  7.2      (15) nonresidential programs for nonhandicapped children 
  7.3   provided for a cumulative total of less than 30 days in any 
  7.4   12-month period; 
  7.5      (16) residential programs for persons with mental illness, 
  7.6   that are located in hospitals, until the commissioner adopts 
  7.7   appropriate rules; 
  7.8      (17) the religious instruction of school-age children; 
  7.9   Sabbath or Sunday schools; or the congregate care of children by 
  7.10  a church, congregation, or religious society during the period 
  7.11  used by the church, congregation, or religious society for its 
  7.12  regular worship; 
  7.13     (18) camps licensed by the commissioner of health under 
  7.14  Minnesota Rules, chapter 4630; 
  7.15     (19) mental health outpatient services for adults with 
  7.16  mental illness or children with emotional disturbance; 
  7.17     (20) residential programs serving school-age children whose 
  7.18  sole purpose is cultural or educational exchange, until the 
  7.19  commissioner adopts appropriate rules; 
  7.20     (21) unrelated individuals who provide out-of-home respite 
  7.21  care services to persons with mental retardation or related 
  7.22  conditions from a single related family for no more than 90 days 
  7.23  in a 12-month period and the respite care services are for the 
  7.24  temporary relief of the person's family or legal representative; 
  7.25     (22) respite care services provided as a home and 
  7.26  community-based service to a person with mental retardation or a 
  7.27  related condition, in the person's primary residence; 
  7.28     (23) community support services programs as defined in 
  7.29  section 245.462, subdivision 6, and family community support 
  7.30  services as defined in section 245.4871, subdivision 17; 
  7.31     (24) the placement of a child by a birth parent or legal 
  7.32  guardian in a preadoptive home for purposes of adoption as 
  7.33  authorized by section 259.47; 
  7.34     (25) settings registered under chapter 144D which provide 
  7.35  home care services licensed by the commissioner of health to 
  7.36  fewer than seven adults; or 
  8.1      (26) consumer-directed community support service funded 
  8.2   under the Medicaid waiver for persons with mental retardation 
  8.3   and related conditions when the individual who provided the 
  8.4   service is:  
  8.5      (i) the same individual who is the direct payee of these 
  8.6   specific waiver funds or paid by a fiscal agent, fiscal 
  8.7   intermediary, or employer of record; and 
  8.8      (ii) not otherwise under the control of a residential or 
  8.9   nonresidential program that is required to be licensed under 
  8.10  this chapter when providing the service. 
  8.11     (b) For purposes of paragraph (a), clause (6), a building 
  8.12  is directly contiguous to a building in which a nonresidential 
  8.13  program is located if it shares a common wall with the building 
  8.14  in which the nonresidential program is located or is attached to 
  8.15  that building by skyway, tunnel, atrium, or common roof. 
  8.16     (c) Nothing in this chapter shall be construed to require 
  8.17  licensure for any services provided and funded according to an 
  8.18  approved federal waiver plan where licensure is specifically 
  8.19  identified as not being a condition for the services and funding.
  8.20     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  8.21  245A.04, subdivision 3, is amended to read: 
  8.22     Subd. 3.  [BACKGROUND STUDY OF THE APPLICANT; DEFINITIONS.] 
  8.23  (a) Individuals and organizations that are required in statute 
  8.24  to initiate background studies under this section shall comply 
  8.25  with the following requirements: 
  8.26     (1) Applicants for licensure, license holders, and other 
  8.27  entities as provided in this section must submit completed 
  8.28  background study forms to the commissioner before individuals 
  8.29  specified in paragraph (c), clauses (1) to (4), (6), and (7), 
  8.30  begin positions allowing direct contact in any licensed program. 
  8.31     (2) Applicants and license holders under the jurisdiction 
  8.32  of other state agencies who are required in other statutory 
  8.33  sections to initiate background studies under this section must 
  8.34  submit completed background study forms to the commissioner 
  8.35  prior to the background study subject beginning in a position 
  8.36  allowing direct contact in the licensed program, or where 
  9.1   applicable, prior to being employed. 
  9.2      (3) Organizations required to initiate background studies 
  9.3   under section 256B.0627 for individuals described in paragraph 
  9.4   (c), clause (5), must submit a completed background study form 
  9.5   to the commissioner before those individuals begin a position 
  9.6   allowing direct contact with persons served by the 
  9.7   organization.  The commissioner shall recover the cost of these 
  9.8   background studies through a fee of no more than $12 per study 
  9.9   charged to the organization responsible for submitting the 
  9.10  background study form.  The fees collected under this paragraph 
  9.11  are appropriated to the commissioner for the purpose of 
  9.12  conducting background studies.  
  9.13     Upon receipt of the background study forms from the 
  9.14  entities in clauses (1) to (3), the commissioner shall complete 
  9.15  the background study as specified under this section and provide 
  9.16  notices required in subdivision 3a.  Unless otherwise specified, 
  9.17  the subject of a background study may have direct contact with 
  9.18  persons served by a program after the background study form is 
  9.19  mailed or submitted to the commissioner pending notification of 
  9.20  the study results under subdivision 3a.  A county agency may 
  9.21  accept a background study completed by the commissioner under 
  9.22  this section in place of the background study required under 
  9.23  section 245A.16, subdivision 3, in programs with joint licensure 
  9.24  as home and community-based services and adult foster care for 
  9.25  people with developmental disabilities when the license holder 
  9.26  does not reside in the foster care residence and the subject of 
  9.27  the study has been continuously affiliated with the license 
  9.28  holder since the date of the commissioner's study. 
  9.29     (b) The definitions in this paragraph apply only to 
  9.30  subdivisions 3 to 3e. 
  9.31     (1) "Background study" means the review of records 
  9.32  conducted by the commissioner to determine whether a subject is 
  9.33  disqualified from direct contact with persons served by a 
  9.34  program, and where specifically provided in statutes, whether a 
  9.35  subject is disqualified from having access to persons served by 
  9.36  a program. 
 10.1      (2) "Continuous, direct supervision" means an individual is 
 10.2   within sight or hearing of the supervising person to the extent 
 10.3   that supervising person is capable at all times of intervening 
 10.4   to protect the health and safety of the persons served by the 
 10.5   program. 
 10.6      (3) "Contractor" means any person, regardless of employer, 
 10.7   who is providing program services for hire under the control of 
 10.8   the provider. 
 10.9      (4) "Direct contact" means providing face-to-face care, 
 10.10  training, supervision, counseling, consultation, or medication 
 10.11  assistance to persons served by the program. 
 10.12     (5) "Reasonable cause" means information or circumstances 
 10.13  exist which provide the commissioner with articulable suspicion 
 10.14  that further pertinent information may exist concerning a 
 10.15  subject.  The commissioner has reasonable cause when, but not 
 10.16  limited to, the commissioner has received a report from the 
 10.17  subject, the license holder, or a third party indicating that 
 10.18  the subject has a history that would disqualify the person or 
 10.19  that may pose a risk to the health or safety of persons 
 10.20  receiving services. 
 10.21     (6) "Subject of a background study" means an individual on 
 10.22  whom a background study is required or completed. 
 10.23     (c) The applicant, license holder, registrant under section 
 10.24  144A.71, subdivision 1, bureau of criminal apprehension, 
 10.25  commissioner of health, and county agencies, after written 
 10.26  notice to the individual who is the subject of the study, shall 
 10.27  help with the study by giving the commissioner criminal 
 10.28  conviction data and reports about the maltreatment of adults 
 10.29  substantiated under section 626.557 and the maltreatment of 
 10.30  minors in licensed programs substantiated under section 
 10.31  626.556.  If a background study is initiated by an applicant or 
 10.32  license holder and the applicant or license holder receives 
 10.33  information about the possible criminal or maltreatment history 
 10.34  of an individual who is the subject of the background study, the 
 10.35  applicant or license holder must immediately provide the 
 10.36  information to the commissioner.  The individuals to be studied 
 11.1   shall include: 
 11.2      (1) the applicant; 
 11.3      (2) persons age 13 and over living in the household where 
 11.4   the licensed program will be provided; 
 11.5      (3) current employees or contractors of the applicant who 
 11.6   will have direct contact with persons served by the facility, 
 11.7   agency, or program; 
 11.8      (4) volunteers or student volunteers who have direct 
 11.9   contact with persons served by the program to provide program 
 11.10  services, if the contact is not directly supervised by the 
 11.11  individuals under the continuous, direct supervision by an 
 11.12  individual listed in clause (1) or (3); 
 11.13     (5) any person required under section 256B.0627 to have a 
 11.14  background study completed under this section; 
 11.15     (6) persons ages 10 to 12 living in the household where the 
 11.16  licensed services will be provided when the commissioner has 
 11.17  reasonable cause; and 
 11.18     (7) persons who, without providing direct contact services 
 11.19  at a licensed program, may have unsupervised access to children 
 11.20  or vulnerable adults receiving services from the program 
 11.21  licensed to provide family child care for children, foster care 
 11.22  for children in the provider's own home, or foster care or day 
 11.23  care services for adults in the provider's own home when the 
 11.24  commissioner has reasonable cause. 
 11.25     (d) According to paragraph (c), clauses (2) and (6), the 
 11.26  commissioner shall review records from the juvenile courts.  For 
 11.27  persons under paragraph (c), clauses (1), (3), (4), (5), and 
 11.28  (7), who are ages 13 to 17, the commissioner shall review 
 11.29  records from the juvenile courts when the commissioner has 
 11.30  reasonable cause.  The juvenile courts shall help with the study 
 11.31  by giving the commissioner existing juvenile court records on 
 11.32  individuals described in paragraph (c), clauses (2), (6), and 
 11.33  (7), relating to delinquency proceedings held within either the 
 11.34  five years immediately preceding the background study or the 
 11.35  five years immediately preceding the individual's 18th birthday, 
 11.36  whichever time period is longer.  The commissioner shall destroy 
 12.1   juvenile records obtained pursuant to this subdivision when the 
 12.2   subject of the records reaches age 23. 
 12.3      (e) Beginning August 1, 2001, the commissioner shall 
 12.4   conduct all background studies required under this chapter and 
 12.5   initiated by supplemental nursing services agencies registered 
 12.6   under section 144A.71, subdivision 1.  Studies for the agencies 
 12.7   must be initiated annually by each agency.  The commissioner 
 12.8   shall conduct the background studies according to this chapter.  
 12.9   The commissioner shall recover the cost of the background 
 12.10  studies through a fee of no more than $8 per study, charged to 
 12.11  the supplemental nursing services agency.  The fees collected 
 12.12  under this paragraph are appropriated to the commissioner for 
 12.13  the purpose of conducting background studies. 
 12.14     (f) For purposes of this section, a finding that a 
 12.15  delinquency petition is proven in juvenile court shall be 
 12.16  considered a conviction in state district court. 
 12.17     (g) A study of an individual in paragraph (c), clauses (1) 
 12.18  to (7), shall be conducted at least upon application for initial 
 12.19  license for all license types or registration under section 
 12.20  144A.71, subdivision 1, and at reapplication for a license or 
 12.21  registration for family child care, child foster care, and adult 
 12.22  foster care.  The commissioner is not required to conduct a 
 12.23  study of an individual at the time of reapplication for a 
 12.24  license or if the individual has been continuously affiliated 
 12.25  with a foster care provider licensed by the commissioner of 
 12.26  human services and registered under chapter 144D, other than a 
 12.27  family day care or foster care license, if:  (i) a study of the 
 12.28  individual was conducted either at the time of initial licensure 
 12.29  or when the individual became affiliated with the license 
 12.30  holder; (ii) the individual has been continuously affiliated 
 12.31  with the license holder since the last study was conducted; and 
 12.32  (iii) the procedure described in paragraph (j) has been 
 12.33  implemented and was in effect continuously since the last study 
 12.34  was conducted.  For the purposes of this section, a physician 
 12.35  licensed under chapter 147 is considered to be continuously 
 12.36  affiliated upon the license holder's receipt from the 
 13.1   commissioner of health or human services of the physician's 
 13.2   background study results.  For individuals who are required to 
 13.3   have background studies under paragraph (c) and who have been 
 13.4   continuously affiliated with a foster care provider that is 
 13.5   licensed in more than one county, criminal conviction data may 
 13.6   be shared among those counties in which the foster care programs 
 13.7   are licensed.  A county agency's receipt of criminal conviction 
 13.8   data from another county agency shall meet the criminal data 
 13.9   background study requirements of this section. 
 13.10     (h) The commissioner may also conduct studies on 
 13.11  individuals specified in paragraph (c), clauses (3) and (4), 
 13.12  when the studies are initiated by: 
 13.13     (i) personnel pool agencies; 
 13.14     (ii) temporary personnel agencies; 
 13.15     (iii) educational programs that train persons by providing 
 13.16  direct contact services in licensed programs; and 
 13.17     (iv) professional services agencies that are not licensed 
 13.18  and which contract with licensed programs to provide direct 
 13.19  contact services or individuals who provide direct contact 
 13.20  services. 
 13.21     (i) Studies on individuals in paragraph (h), items (i) to 
 13.22  (iv), must be initiated annually by these agencies, programs, 
 13.23  and individuals.  Except as provided in paragraph (a), clause 
 13.24  (3), no applicant, license holder, or individual who is the 
 13.25  subject of the study shall pay any fees required to conduct the 
 13.26  study. 
 13.27     (1) At the option of the licensed facility, rather than 
 13.28  initiating another background study on an individual required to 
 13.29  be studied who has indicated to the licensed facility that a 
 13.30  background study by the commissioner was previously completed, 
 13.31  the facility may make a request to the commissioner for 
 13.32  documentation of the individual's background study status, 
 13.33  provided that: 
 13.34     (i) the facility makes this request using a form provided 
 13.35  by the commissioner; 
 13.36     (ii) in making the request the facility informs the 
 14.1   commissioner that either: 
 14.2      (A) the individual has been continuously affiliated with a 
 14.3   licensed facility since the individual's previous background 
 14.4   study was completed, or since October 1, 1995, whichever is 
 14.5   shorter; or 
 14.6      (B) the individual is affiliated only with a personnel pool 
 14.7   agency, a temporary personnel agency, an educational program 
 14.8   that trains persons by providing direct contact services in 
 14.9   licensed programs, or a professional services agency that is not 
 14.10  licensed and which contracts with licensed programs to provide 
 14.11  direct contact services or individuals who provide direct 
 14.12  contact services; and 
 14.13     (iii) the facility provides notices to the individual as 
 14.14  required in paragraphs (a) to (j), and that the facility is 
 14.15  requesting written notification of the individual's background 
 14.16  study status from the commissioner.  
 14.17     (2) The commissioner shall respond to each request under 
 14.18  paragraph (1) with a written or electronic notice to the 
 14.19  facility and the study subject.  If the commissioner determines 
 14.20  that a background study is necessary, the study shall be 
 14.21  completed without further request from a licensed agency or 
 14.22  notifications to the study subject.  
 14.23     (3) When a background study is being initiated by a 
 14.24  licensed facility or a foster care provider that is also 
 14.25  registered under chapter 144D, a study subject affiliated with 
 14.26  multiple licensed facilities may attach to the background study 
 14.27  form a cover letter indicating the additional facilities' names, 
 14.28  addresses, and background study identification numbers.  When 
 14.29  the commissioner receives such notices, each facility identified 
 14.30  by the background study subject shall be notified of the study 
 14.31  results.  The background study notice sent to the subsequent 
 14.32  agencies shall satisfy those facilities' responsibilities for 
 14.33  initiating a background study on that individual. 
 14.34     (j) If an individual who is affiliated with a program or 
 14.35  facility regulated by the department of human services or 
 14.36  department of health or who is affiliated with any type of home 
 15.1   care agency or provider of personal care assistance services, is 
 15.2   convicted of a crime constituting a disqualification under 
 15.3   subdivision 3d, the probation officer or corrections agent shall 
 15.4   notify the commissioner of the conviction.  For the purpose of 
 15.5   this paragraph, "conviction" has the meaning given it in section 
 15.6   609.02, subdivision 5.  The commissioner, in consultation with 
 15.7   the commissioner of corrections, shall develop forms and 
 15.8   information necessary to implement this paragraph and shall 
 15.9   provide the forms and information to the commissioner of 
 15.10  corrections for distribution to local probation officers and 
 15.11  corrections agents.  The commissioner shall inform individuals 
 15.12  subject to a background study that criminal convictions for 
 15.13  disqualifying crimes will be reported to the commissioner by the 
 15.14  corrections system.  A probation officer, corrections agent, or 
 15.15  corrections agency is not civilly or criminally liable for 
 15.16  disclosing or failing to disclose the information required by 
 15.17  this paragraph.  Upon receipt of disqualifying information, the 
 15.18  commissioner shall provide the notifications required in 
 15.19  subdivision 3a, as appropriate to agencies on record as having 
 15.20  initiated a background study or making a request for 
 15.21  documentation of the background study status of the individual.  
 15.22  This paragraph does not apply to family day care and child 
 15.23  foster care programs. 
 15.24     (k) The individual who is the subject of the study must 
 15.25  provide the applicant or license holder with sufficient 
 15.26  information to ensure an accurate study including the 
 15.27  individual's first, middle, and last name and all other names by 
 15.28  which the individual has been known; home address, city, county, 
 15.29  and state of residence for the past five years; zip code; sex; 
 15.30  date of birth; and driver's license number or state 
 15.31  identification number.  The applicant or license holder shall 
 15.32  provide this information about an individual in paragraph (c), 
 15.33  clauses (1) to (7), on forms prescribed by the commissioner.  By 
 15.34  January 1, 2000, for background studies conducted by the 
 15.35  department of human services, the commissioner shall implement a 
 15.36  system for the electronic transmission of:  (1) background study 
 16.1   information to the commissioner; and (2) background study 
 16.2   results to the license holder.  The commissioner may request 
 16.3   additional information of the individual, which shall be 
 16.4   optional for the individual to provide, such as the individual's 
 16.5   social security number or race. 
 16.6      (l) For programs directly licensed by the commissioner, a 
 16.7   study must include information related to names of substantiated 
 16.8   perpetrators of maltreatment of vulnerable adults that has been 
 16.9   received by the commissioner as required under section 626.557, 
 16.10  subdivision 9c, paragraph (i), and the commissioner's records 
 16.11  relating to the maltreatment of minors in licensed programs, 
 16.12  information from juvenile courts as required in paragraph (c) 
 16.13  for persons listed in paragraph (c), clauses (2), (6), and (7), 
 16.14  and information from the bureau of criminal apprehension.  For 
 16.15  child foster care, adult foster care, and family day care homes, 
 16.16  the study must include information from the county agency's 
 16.17  record of substantiated maltreatment of adults, and the 
 16.18  maltreatment of minors, information from juvenile courts as 
 16.19  required in paragraph (c) for persons listed in paragraph (c), 
 16.20  clauses (2), (6), and (7), and information from the bureau of 
 16.21  criminal apprehension.  The commissioner may also review arrest 
 16.22  and investigative information from the bureau of criminal 
 16.23  apprehension, the commissioner of health, a county attorney, 
 16.24  county sheriff, county agency, local chief of police, other 
 16.25  states, the courts, or the Federal Bureau of Investigation if 
 16.26  the commissioner has reasonable cause to believe the information 
 16.27  is pertinent to the disqualification of an individual listed in 
 16.28  paragraph (c), clauses (1) to (7).  The commissioner is not 
 16.29  required to conduct more than one review of a subject's records 
 16.30  from the Federal Bureau of Investigation if a review of the 
 16.31  subject's criminal history with the Federal Bureau of 
 16.32  Investigation has already been completed by the commissioner and 
 16.33  there has been no break in the subject's affiliation with the 
 16.34  license holder who initiated the background study. 
 16.35     (m) When the commissioner has reasonable cause to believe 
 16.36  that further pertinent information may exist on the subject, the 
 17.1   subject shall provide a set of classifiable fingerprints 
 17.2   obtained from an authorized law enforcement agency.  For 
 17.3   purposes of requiring fingerprints, the commissioner shall be 
 17.4   considered to have reasonable cause under, but not limited to, 
 17.5   the following circumstances: 
 17.6      (1) information from the bureau of criminal apprehension 
 17.7   indicates that the subject is a multistate offender; 
 17.8      (2) information from the bureau of criminal apprehension 
 17.9   indicates that multistate offender status is undetermined; or 
 17.10     (3) the commissioner has received a report from the subject 
 17.11  or a third party indicating that the subject has a criminal 
 17.12  history in a jurisdiction other than Minnesota. 
 17.13     (n) The failure or refusal of an applicant, license holder, 
 17.14  or registrant under section 144A.71, subdivision 1, to cooperate 
 17.15  with the commissioner is reasonable cause to disqualify a 
 17.16  subject, deny a license application or immediately suspend, 
 17.17  suspend, or revoke a license or registration.  Failure or 
 17.18  refusal of an individual to cooperate with the study is just 
 17.19  cause for denying or terminating employment of the individual if 
 17.20  the individual's failure or refusal to cooperate could cause the 
 17.21  applicant's application to be denied or the license holder's 
 17.22  license to be immediately suspended, suspended, or revoked. 
 17.23     (o) The commissioner shall not consider an application to 
 17.24  be complete until all of the information required to be provided 
 17.25  under this subdivision has been received.  
 17.26     (p) No person in paragraph (c), clauses (1) to (7), who is 
 17.27  disqualified as a result of this section may be retained by the 
 17.28  agency in a position involving direct contact with persons 
 17.29  served by the program or in a position allowing and no person in 
 17.30  paragraph (c), clauses (2), (6), and (7), or as provided 
 17.31  elsewhere in statute who is disqualified as a result of this 
 17.32  section may be allowed access to persons served by the 
 17.33  program as provided for in statutes, unless the commissioner has 
 17.34  provided written notice to the agency stating that: 
 17.35     (1) the individual may remain in direct contact during the 
 17.36  period in which the individual may request reconsideration as 
 18.1   provided in subdivision 3a, paragraph (b), clause (2) or (3); 
 18.2      (2) the individual's disqualification has been set aside 
 18.3   for that agency as provided in subdivision 3b, paragraph (b); or 
 18.4      (3) the license holder has been granted a variance for the 
 18.5   disqualified individual under subdivision 3e. 
 18.6      (q) Termination of affiliation with persons in paragraph 
 18.7   (c), clauses (1) to (7), made in good faith reliance on a notice 
 18.8   of disqualification provided by the commissioner shall not 
 18.9   subject the applicant or license holder to civil liability. 
 18.10     (r) The commissioner may establish records to fulfill the 
 18.11  requirements of this section. 
 18.12     (s) The commissioner may not disqualify an individual 
 18.13  subject to a study under this section because that person has, 
 18.14  or has had, a mental illness as defined in section 245.462, 
 18.15  subdivision 20. 
 18.16     (t) An individual subject to disqualification under this 
 18.17  subdivision has the applicable rights in subdivision 3a, 3b, or 
 18.18  3c. 
 18.19     (u) For the purposes of background studies completed by 
 18.20  tribal organizations performing licensing activities otherwise 
 18.21  required of the commissioner under this chapter, after obtaining 
 18.22  consent from the background study subject, tribal licensing 
 18.23  agencies shall have access to criminal history data in the same 
 18.24  manner as county licensing agencies and private licensing 
 18.25  agencies under this chapter. 
 18.26     Sec. 8.  Minnesota Statutes 2001 Supplement, section 
 18.27  245A.04, subdivision 3a, is amended to read: 
 18.28     Subd. 3a.  [NOTIFICATION TO SUBJECT AND LICENSE HOLDER OF 
 18.29  STUDY RESULTS; DETERMINATION OF RISK OF HARM.] (a) Within 15 
 18.30  working days, the commissioner shall notify the applicant, 
 18.31  license holder, or registrant under section 144A.71, subdivision 
 18.32  1, and the individual who is the subject of the study, in 
 18.33  writing or by electronic transmission, of the results of the 
 18.34  study or that more time is needed to complete the study.  When 
 18.35  the study is completed, a notice that the study was undertaken 
 18.36  and completed shall be maintained in the personnel files of the 
 19.1   program.  For studies on individuals pertaining to a license to 
 19.2   provide family day care or group family day care, foster care 
 19.3   for children in the provider's own home, or foster care or day 
 19.4   care services for adults in the provider's own home, the 
 19.5   commissioner is not required to provide a separate notice of the 
 19.6   background study results to the individual who is the subject of 
 19.7   the study unless the study results in a disqualification of the 
 19.8   individual. 
 19.9      The commissioner shall notify the individual studied if the 
 19.10  information in the study indicates the individual is 
 19.11  disqualified from direct contact with persons served by the 
 19.12  program.  The commissioner shall disclose the information 
 19.13  causing disqualification and instructions on how to request a 
 19.14  reconsideration of the disqualification to the individual 
 19.15  studied.  An applicant or license holder who is not the subject 
 19.16  of the study shall be informed that the commissioner has found 
 19.17  information that disqualifies the subject from direct contact 
 19.18  with persons served by the program.  However, only the 
 19.19  individual studied must be informed of the information contained 
 19.20  in the subject's background study unless the basis for the 
 19.21  disqualification is failure to cooperate, substantiated 
 19.22  maltreatment under section 626.556 or 626.557, the Data 
 19.23  Practices Act provides for release of the information, or the 
 19.24  individual studied authorizes the release of the information.  
 19.25  When a disqualification is based on the subject's failure to 
 19.26  cooperate with the background study or substantiated 
 19.27  maltreatment under section 626.556 or 626.557, the agency that 
 19.28  initiated the study shall be informed by the commissioner of the 
 19.29  reason for the disqualification. 
 19.30     (b) Except as provided in subdivision 3d, paragraph (b), if 
 19.31  the commissioner determines that the individual studied has a 
 19.32  disqualifying characteristic, the commissioner shall review the 
 19.33  information immediately available and make a determination as to 
 19.34  the subject's immediate risk of harm to persons served by the 
 19.35  program where the individual studied will have direct contact.  
 19.36  The commissioner shall consider all relevant information 
 20.1   available, including the following factors in determining the 
 20.2   immediate risk of harm:  the recency of the disqualifying 
 20.3   characteristic; the recency of discharge from probation for the 
 20.4   crimes; the number of disqualifying characteristics; the 
 20.5   intrusiveness or violence of the disqualifying characteristic; 
 20.6   the vulnerability of the victim involved in the disqualifying 
 20.7   characteristic; and the similarity of the victim to the persons 
 20.8   served by the program where the individual studied will have 
 20.9   direct contact.  The commissioner may determine that the 
 20.10  evaluation of the information immediately available gives the 
 20.11  commissioner reason to believe one of the following: 
 20.12     (1) The individual poses an imminent risk of harm to 
 20.13  persons served by the program where the individual studied will 
 20.14  have direct contact.  If the commissioner determines that an 
 20.15  individual studied poses an imminent risk of harm to persons 
 20.16  served by the program where the individual studied will have 
 20.17  direct contact, the individual and the license holder must be 
 20.18  sent a notice of disqualification.  The commissioner shall order 
 20.19  the license holder to immediately remove the individual studied 
 20.20  from direct contact.  The notice to the individual studied must 
 20.21  include an explanation of the basis of this determination. 
 20.22     (2) The individual poses a risk of harm requiring 
 20.23  continuous, direct supervision while providing direct contact 
 20.24  services during the period in which the subject may request a 
 20.25  reconsideration.  If the commissioner determines that an 
 20.26  individual studied poses a risk of harm that requires 
 20.27  continuous, direct supervision, the individual and the license 
 20.28  holder must be sent a notice of disqualification.  The 
 20.29  commissioner shall order the license holder to immediately 
 20.30  remove the individual studied from direct contact services or 
 20.31  assure that the individual studied is within sight or hearing 
 20.32  under the continuous, direct supervision of another staff person 
 20.33  when providing direct contact services during the period in 
 20.34  which the individual may request a reconsideration of the 
 20.35  disqualification.  If the individual studied does not submit a 
 20.36  timely request for reconsideration, or the individual submits a 
 21.1   timely request for reconsideration, but the disqualification is 
 21.2   not set aside for that license holder, the license holder will 
 21.3   be notified of the disqualification and ordered to immediately 
 21.4   remove the individual from any position allowing direct contact 
 21.5   with persons receiving services from the license holder. 
 21.6      (3) The individual does not pose an imminent risk of harm 
 21.7   or a risk of harm requiring continuous, direct supervision while 
 21.8   providing direct contact services during the period in which the 
 21.9   subject may request a reconsideration.  If the commissioner 
 21.10  determines that an individual studied does not pose a risk of 
 21.11  harm that requires continuous, direct supervision, only the 
 21.12  individual must be sent a notice of disqualification.  The 
 21.13  license holder must be sent a notice that more time is needed to 
 21.14  complete the individual's background study.  If the individual 
 21.15  studied submits a timely request for reconsideration, and if the 
 21.16  disqualification is set aside for that license holder, the 
 21.17  license holder will receive the same notification received by 
 21.18  license holders in cases where the individual studied has no 
 21.19  disqualifying characteristic.  If the individual studied does 
 21.20  not submit a timely request for reconsideration, or the 
 21.21  individual submits a timely request for reconsideration, but the 
 21.22  disqualification is not set aside for that license holder, the 
 21.23  license holder will be notified of the disqualification and 
 21.24  ordered to immediately remove the individual from any position 
 21.25  allowing direct contact with persons receiving services from the 
 21.26  license holder.  
 21.27     (c) County licensing agencies performing duties under this 
 21.28  subdivision may develop an alternative system for determining 
 21.29  the subject's immediate risk of harm to persons served by the 
 21.30  program, providing the notices under paragraph (b), and 
 21.31  documenting the action taken by the county licensing agency.  
 21.32  Each county licensing agency's implementation of the alternative 
 21.33  system is subject to approval by the commissioner.  
 21.34  Notwithstanding this alternative system, county licensing 
 21.35  agencies shall complete the requirements of paragraph (a). 
 21.36     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
 22.1   245A.04, subdivision 3b, is amended to read: 
 22.2      Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) The 
 22.3   individual who is the subject of the disqualification may 
 22.4   request a reconsideration of the disqualification.  
 22.5      The individual must submit the request for reconsideration 
 22.6   to the commissioner in writing.  A request for reconsideration 
 22.7   for an individual who has been sent a notice of disqualification 
 22.8   under subdivision 3a, paragraph (b), clause (1) or (2), must be 
 22.9   submitted within 30 calendar days of the disqualified 
 22.10  individual's receipt of the notice of disqualification.  Upon 
 22.11  showing that the information in clause (1) or (2) cannot be 
 22.12  obtained within 30 days, the disqualified individual may request 
 22.13  additional time, not to exceed 30 days, to obtain that 
 22.14  information.  A request for reconsideration for an individual 
 22.15  who has been sent a notice of disqualification under subdivision 
 22.16  3a, paragraph (b), clause (3), must be submitted within 15 
 22.17  calendar days of the disqualified individual's receipt of the 
 22.18  notice of disqualification.  An individual who was determined to 
 22.19  have maltreated a child under section 626.556 or a vulnerable 
 22.20  adult under section 626.557, and who was disqualified under this 
 22.21  section on the basis of serious or recurring maltreatment, may 
 22.22  request reconsideration of both the maltreatment and the 
 22.23  disqualification determinations.  The request for 
 22.24  reconsideration of the maltreatment determination and the 
 22.25  disqualification must be submitted within 30 calendar days of 
 22.26  the individual's receipt of the notice of disqualification.  
 22.27  Removal of a disqualified individual from direct contact shall 
 22.28  be ordered if the individual does not request reconsideration 
 22.29  within the prescribed time, and for an individual who submits a 
 22.30  timely request for reconsideration, if the disqualification is 
 22.31  not set aside.  The individual must present information showing 
 22.32  that: 
 22.33     (1) the information the commissioner relied upon in 
 22.34  determining that the underlying conduct giving rise to the 
 22.35  disqualification occurred, and for maltreatment, that the 
 22.36  maltreatment was serious or recurring, is incorrect or 
 23.1   inaccurate.  If the basis of a reconsideration request is that a 
 23.2   maltreatment determination or disposition under section 626.556 
 23.3   or 626.557 is incorrect, and the commissioner has issued a final 
 23.4   order in an appeal of that determination or disposition under 
 23.5   section 256.045 or 245A.08, subdivision 5, the commissioner's 
 23.6   order is conclusive on the issue of maltreatment.  If the 
 23.7   individual did not request reconsideration of the maltreatment 
 23.8   determination, the maltreatment determination is deemed 
 23.9   conclusive; or 
 23.10     (2) the subject of the study does not pose a risk of harm 
 23.11  to any person served by the applicant, license holder, or 
 23.12  registrant under section 144A.71, subdivision 1. 
 23.13     (b) The commissioner shall rescind the disqualification if 
 23.14  the commissioner finds that the information relied on to 
 23.15  disqualify the subject is incorrect.  The commissioner may set 
 23.16  aside the disqualification under this section if the 
 23.17  commissioner finds that the individual does not pose a risk of 
 23.18  harm to any person served by the applicant, license holder, or 
 23.19  registrant under section 144A.71, subdivision 1.  In determining 
 23.20  that an individual does not pose a risk of harm, the 
 23.21  commissioner shall consider the nature, severity, and 
 23.22  consequences of the event or events that lead to 
 23.23  disqualification, whether there is more than one disqualifying 
 23.24  event, the age and vulnerability of the victim at the time of 
 23.25  the event, the harm suffered by the victim, the similarity 
 23.26  between the victim and persons served by the program, the time 
 23.27  elapsed without a repeat of the same or similar event, 
 23.28  documentation of successful completion by the individual studied 
 23.29  of training or rehabilitation pertinent to the event, and any 
 23.30  other information relevant to reconsideration.  In reviewing a 
 23.31  disqualification under this section, the commissioner shall give 
 23.32  preeminent weight to the safety of each person to be served by 
 23.33  the license holder, applicant, or registrant under section 
 23.34  144A.71, subdivision 1, over the interests of the license 
 23.35  holder, applicant, or registrant under section 144A.71, 
 23.36  subdivision 1. 
 24.1      (c) Unless the information the commissioner relied on in 
 24.2   disqualifying an individual is incorrect, the commissioner may 
 24.3   not set aside the disqualification of an individual in 
 24.4   connection with a license to provide family day care for 
 24.5   children, foster care for children in the provider's own home, 
 24.6   or foster care or day care services for adults in the provider's 
 24.7   own home if: 
 24.8      (1) less than ten years have passed since the discharge of 
 24.9   the sentence imposed for the offense; and the individual has 
 24.10  been convicted of a violation of any offense listed in sections 
 24.11  609.20 (manslaughter in the first degree), 609.205 (manslaughter 
 24.12  in the second degree), criminal vehicular homicide under 609.21 
 24.13  (criminal vehicular homicide and injury), 609.215 (aiding 
 24.14  suicide or aiding attempted suicide), felony violations under 
 24.15  609.221 to 609.2231 (assault in the first, second, third, or 
 24.16  fourth degree), 609.713 (terroristic threats), 609.235 (use of 
 24.17  drugs to injure or to facilitate crime), 609.24 (simple 
 24.18  robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 
 24.19  609.255 (false imprisonment), 609.561 or 609.562 (arson in the 
 24.20  first or second degree), 609.71 (riot), burglary in the first or 
 24.21  second degree under 609.582 (burglary), 609.66 (dangerous 
 24.22  weapon), 609.665 (spring guns), 609.67 (machine guns and 
 24.23  short-barreled shotguns), 609.749 (harassment; stalking), 
 24.24  152.021 or 152.022 (controlled substance crime in the first or 
 24.25  second degree), 152.023, subdivision 1, clause (3) or (4), or 
 24.26  subdivision 2, clause (4) (controlled substance crime in the 
 24.27  third degree), 152.024, subdivision 1, clause (2), (3), or (4) 
 24.28  (controlled substance crime in the fourth degree), 609.224, 
 24.29  subdivision 2, paragraph (c) (fifth-degree assault by a 
 24.30  caregiver against a vulnerable adult), 609.228 (great bodily 
 24.31  harm caused by distribution of drugs), 609.23 (mistreatment of 
 24.32  persons confined), 609.231 (mistreatment of residents or 
 24.33  patients), 609.2325 (criminal abuse of a vulnerable adult), 
 24.34  609.233 (criminal neglect of a vulnerable adult), 609.2335 
 24.35  (financial exploitation of a vulnerable adult), 609.234 (failure 
 24.36  to report), 609.265 (abduction), 609.2664 to 609.2665 
 25.1   (manslaughter of an unborn child in the first or second degree), 
 25.2   609.267 to 609.2672 (assault of an unborn child in the first, 
 25.3   second, or third degree), 609.268 (injury or death of an unborn 
 25.4   child in the commission of a crime), 617.293 (disseminating or 
 25.5   displaying harmful material to minors), a felony level 
 25.6   conviction involving alcohol or drug use, a gross misdemeanor 
 25.7   offense under 609.324, subdivision 1 (other prohibited acts), a 
 25.8   gross misdemeanor offense under 609.378 (neglect or endangerment 
 25.9   of a child), a gross misdemeanor offense under 609.377 
 25.10  (malicious punishment of a child), 609.72, subdivision 3 
 25.11  (disorderly conduct against a vulnerable adult); or an attempt 
 25.12  or conspiracy to commit any of these offenses, as each of these 
 25.13  offenses is defined in Minnesota Statutes; or an offense in any 
 25.14  other state, the elements of which are substantially similar to 
 25.15  the elements of any of the foregoing offenses; 
 25.16     (2) regardless of how much time has passed since the 
 25.17  involuntary termination of parental rights under section 
 25.18  260C.301 or the discharge of the sentence imposed for the 
 25.19  offense, the individual was convicted of a violation of any 
 25.20  offense listed in sections 609.185 to 609.195 (murder in the 
 25.21  first, second, or third degree), 609.2661 to 609.2663 (murder of 
 25.22  an unborn child in the first, second, or third degree), a felony 
 25.23  offense under 609.377 (malicious punishment of a child), a 
 25.24  felony offense under 609.324, subdivision 1 (other prohibited 
 25.25  acts), a felony offense under 609.378 (neglect or endangerment 
 25.26  of a child), 609.322 (solicitation, inducement, and promotion of 
 25.27  prostitution), 609.342 to 609.345 (criminal sexual conduct in 
 25.28  the first, second, third, or fourth degree), 609.352 
 25.29  (solicitation of children to engage in sexual conduct), 617.246 
 25.30  (use of minors in a sexual performance), 617.247 (possession of 
 25.31  pictorial representations of a minor), 609.365 (incest), a 
 25.32  felony offense under sections 609.2242 and 609.2243 (domestic 
 25.33  assault), a felony offense of spousal abuse, a felony offense of 
 25.34  child abuse or neglect, a felony offense of a crime against 
 25.35  children, or an attempt or conspiracy to commit any of these 
 25.36  offenses as defined in Minnesota Statutes, or an offense in any 
 26.1   other state, the elements of which are substantially similar to 
 26.2   any of the foregoing offenses; 
 26.3      (3) within the seven years preceding the study, the 
 26.4   individual committed an act that constitutes maltreatment of a 
 26.5   child under section 626.556, subdivision 10e, and that resulted 
 26.6   in substantial bodily harm as defined in section 609.02, 
 26.7   subdivision 7a, or substantial mental or emotional harm as 
 26.8   supported by competent psychological or psychiatric evidence; or 
 26.9      (4) within the seven years preceding the study, the 
 26.10  individual was determined under section 626.557 to be the 
 26.11  perpetrator of a substantiated incident of maltreatment of a 
 26.12  vulnerable adult that resulted in substantial bodily harm as 
 26.13  defined in section 609.02, subdivision 7a, or substantial mental 
 26.14  or emotional harm as supported by competent psychological or 
 26.15  psychiatric evidence. 
 26.16     In the case of any ground for disqualification under 
 26.17  clauses (1) to (4), if the act was committed by an individual 
 26.18  other than the applicant, license holder, or registrant under 
 26.19  section 144A.71, subdivision 1, residing in the applicant's or 
 26.20  license holder's home, or the home of a registrant under section 
 26.21  144A.71, subdivision 1, the applicant, license holder, or 
 26.22  registrant under section 144A.71, subdivision 1, may seek 
 26.23  reconsideration when the individual who committed the act no 
 26.24  longer resides in the home.  
 26.25     The disqualification periods provided under clauses (1), 
 26.26  (3), and (4) are the minimum applicable disqualification 
 26.27  periods.  The commissioner may determine that an individual 
 26.28  should continue to be disqualified from licensure or 
 26.29  registration under section 144A.71, subdivision 1, because the 
 26.30  license holder, applicant, or registrant under section 144A.71, 
 26.31  subdivision 1, poses a risk of harm to a person served by that 
 26.32  individual after the minimum disqualification period has passed. 
 26.33     (d) The commissioner shall respond in writing or by 
 26.34  electronic transmission to all reconsideration requests for 
 26.35  which the basis for the request is that the information relied 
 26.36  upon by the commissioner to disqualify is incorrect or 
 27.1   inaccurate within 30 working days of receipt of a request and 
 27.2   all relevant information.  If the basis for the request is that 
 27.3   the individual does not pose a risk of harm, the commissioner 
 27.4   shall respond to the request within 15 working days after 
 27.5   receiving the request for reconsideration and all relevant 
 27.6   information.  If the request is based on both the correctness or 
 27.7   accuracy of the information relied on to disqualify the 
 27.8   individual and the risk of harm, the commissioner shall respond 
 27.9   to the request within 45 working days after receiving the 
 27.10  request for reconsideration and all relevant information.  If 
 27.11  the disqualification is set aside, the commissioner shall notify 
 27.12  the applicant or license holder in writing or by electronic 
 27.13  transmission of the decision. 
 27.14     (e) Except as provided in subdivision 3c, if a 
 27.15  disqualification for which reconsideration was requested is not 
 27.16  set aside or is not rescinded, an individual who was 
 27.17  disqualified on the basis of a preponderance of evidence that 
 27.18  the individual committed an act or acts that meet the definition 
 27.19  of any of the crimes lists listed in subdivision 3d, paragraph 
 27.20  (a), clauses (1) to (4); or for failure to make required reports 
 27.21  under section 626.556, subdivision 3, or 626.557, subdivision 3, 
 27.22  pursuant to subdivision 3d, paragraph (a), clause (4), may 
 27.23  request a fair hearing under section 256.045.  Except as 
 27.24  provided under subdivision 3c, the commissioner's final order 
 27.25  for an individual under this paragraph is conclusive on the 
 27.26  issue of maltreatment and disqualification, including for 
 27.27  purposes of subsequent studies conducted under subdivision 3, 
 27.28  and fair hearing is the only administrative appeal of the final 
 27.29  agency determination, specifically, including a challenge to the 
 27.30  accuracy and completeness of data under section 13.04.  
 27.31     (f) Except as provided under subdivision 3c, if an 
 27.32  individual was disqualified on the basis of a determination of 
 27.33  maltreatment under section 626.556 or 626.557, which was serious 
 27.34  or recurring, and the individual has requested reconsideration 
 27.35  of the maltreatment determination under section 626.556, 
 27.36  subdivision 10i, or 626.557, subdivision 9d, and also requested 
 28.1   reconsideration of the disqualification under this subdivision, 
 28.2   reconsideration of the maltreatment determination and 
 28.3   reconsideration of the disqualification shall be consolidated 
 28.4   into a single reconsideration.  For maltreatment and 
 28.5   disqualification determinations made by county agencies, the 
 28.6   consolidated reconsideration shall be conducted by the county 
 28.7   agency.  If the county agency has disqualified an individual on 
 28.8   multiple bases, one of which is a county maltreatment 
 28.9   determination for which the individual has a right to request 
 28.10  reconsideration, the county shall conduct the reconsideration of 
 28.11  all disqualifications.  Except as provided under subdivision 3c, 
 28.12  if an individual who was disqualified on the basis of serious or 
 28.13  recurring maltreatment requests a fair hearing on the 
 28.14  maltreatment determination under section 626.556, subdivision 
 28.15  10i, or 626.557, subdivision 9d, and requests a fair hearing on 
 28.16  the disqualification, which has not been set aside or rescinded 
 28.17  under this subdivision, the scope of the fair hearing under 
 28.18  section 256.045 shall include the maltreatment determination and 
 28.19  the disqualification.  Except as provided under subdivision 
 28.20  3c, the commissioner's final order for an individual under this 
 28.21  paragraph is conclusive on the issue of maltreatment and 
 28.22  disqualification, including for purposes of subsequent studies 
 28.23  conducted under subdivision 3, and a fair hearing is the only 
 28.24  administrative appeal of the final agency determination, 
 28.25  specifically, including a challenge to the accuracy and 
 28.26  completeness of data under section 13.04. 
 28.27     Sec. 10.  Minnesota Statutes 2000, section 245A.04, is 
 28.28  amended by adding a subdivision to read: 
 28.29     Subd. 3f.  [CONCLUSIVE DETERMINATIONS OR 
 28.30  DISPOSITIONS.] Unless otherwise specified in statute, the 
 28.31  following determinations or dispositions are deemed conclusive: 
 28.32     (1) a maltreatment determination or disposition under 
 28.33  section 626.556 or 626.557, if: 
 28.34     (i) the commissioner has issued a final order in an appeal 
 28.35  of that determination or disposition under section 256.045 or 
 28.36  245A.08, subdivision 5; 
 29.1      (ii) the individual did not request reconsideration on the 
 29.2   maltreatment determination or disposition under section 626.556 
 29.3   or 626.557; or 
 29.4      (iii) the individual did not request a hearing of the 
 29.5   maltreatment determination or disposition under section 256.045; 
 29.6   and 
 29.7      (2) a determination that the information relied upon to 
 29.8   disqualify an individual under subdivision 3d, was correct based 
 29.9   on serious or recurring maltreatment; 
 29.10     (3) a preponderance of evidence shows that the individual 
 29.11  committed an act or acts that meet the definition of any of the 
 29.12  crimes listed in subdivision 3d, paragraph (a), clauses (1) to 
 29.13  (4); or 
 29.14     (4) the individual's failure to make required reports under 
 29.15  section 626.556, subdivision 3, or 626.557, subdivision 3, if: 
 29.16     (i) the commissioner has issued a final order in an appeal 
 29.17  of that determination under section 256.045 or 245A.08, 
 29.18  subdivision 5, or a court has issued a final decision; 
 29.19     (ii) the individual did not request reconsideration of the 
 29.20  disqualification under this subdivision; or 
 29.21     (iii) the individual did not request a hearing on the 
 29.22  disqualification under section 256.045. 
 29.23     Sec. 11.  Minnesota Statutes 2001 Supplement, section 
 29.24  245A.07, subdivision 2a, is amended to read: 
 29.25     Subd. 2a.  [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 
 29.26  Within five working days of receipt of the license holder's 
 29.27  timely appeal, the commissioner shall request assignment of an 
 29.28  administrative law judge.  The request must include a proposed 
 29.29  date, time, and place of a hearing.  A hearing must be conducted 
 29.30  by an administrative law judge within 30 calendar days of the 
 29.31  request for assignment, unless an extension is requested by 
 29.32  either party and granted by the administrative law judge for 
 29.33  good cause.  The commissioner shall issue a notice of hearing by 
 29.34  certified mail at least ten working days before the hearing.  
 29.35  The scope of the hearing shall be limited solely to the issue of 
 29.36  whether the temporary immediate suspension should remain in 
 30.1   effect pending the commissioner's final order under section 
 30.2   245A.08, regarding a licensing sanction issued under subdivision 
 30.3   3 following the immediate suspension.  The burden of proof in 
 30.4   expedited hearings under this subdivision shall be limited to 
 30.5   the commissioner's demonstration that reasonable cause exists to 
 30.6   believe that the license holder's actions or failure to comply 
 30.7   with applicable law or rule poses an imminent risk of harm to 
 30.8   the health, safety, or rights of persons served by the program.  
 30.9      (b) The administrative law judge shall issue findings of 
 30.10  fact, conclusions, and a recommendation within ten working days 
 30.11  from the date of hearing.  The commissioner's final order shall 
 30.12  be issued within ten working days from receipt of the 
 30.13  recommendation of the administrative law judge.  Within 90 
 30.14  calendar days after a final order affirming an immediate 
 30.15  suspension, the commissioner shall make a determination 
 30.16  regarding whether a final licensing sanction shall be issued 
 30.17  under subdivision 3.  The license holder shall continue to be 
 30.18  prohibited from operation of the program during this 90-day 
 30.19  period.  
 30.20     (c) When the final order under paragraph (b) affirms an 
 30.21  immediate suspension, and a final licensing sanction is issued 
 30.22  under subdivision 3, and the license holder appeals that 
 30.23  sanction, the license holder continues to be prohibited from 
 30.24  operation of the program pending a final commissioner's order 
 30.25  under section 245A.08, subdivision 5, regarding the final 
 30.26  licensing sanction. 
 30.27     Sec. 12.  Minnesota Statutes 2001 Supplement, section 
 30.28  245A.07, subdivision 3, is amended to read: 
 30.29     Subd. 3.  [LICENSE SUSPENSION, REVOCATION, OR FINE.] The 
 30.30  commissioner may suspend or revoke a license, or impose a fine 
 30.31  if a license holder fails to comply fully with applicable laws 
 30.32  or rules, or knowingly withholds relevant information from or 
 30.33  gives false or misleading information to the commissioner in 
 30.34  connection with an application for a license, in connection with 
 30.35  the background study status of an individual, or during an 
 30.36  investigation.  A license holder who has had a license 
 31.1   suspended, revoked, or has been ordered to pay a fine must be 
 31.2   given notice of the action by certified mail.  The notice must 
 31.3   be mailed to the address shown on the application or the last 
 31.4   known address of the license holder.  The notice must state the 
 31.5   reasons the license was suspended, revoked, or a fine was 
 31.6   ordered. 
 31.7      (a) If the license was suspended or revoked, the notice 
 31.8   must inform the license holder of the right to a contested case 
 31.9   hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
 31.10  1400.8612 and successor rules.  The license holder may appeal an 
 31.11  order suspending or revoking a license.  The appeal of an order 
 31.12  suspending or revoking a license must be made in writing by 
 31.13  certified mail and must be received by the commissioner within 
 31.14  ten calendar days after the license holder receives notice that 
 31.15  the license has been suspended or revoked.  Except as provided 
 31.16  in subdivision 2a, paragraph (c), a timely appeal of an order 
 31.17  suspending or revoking a license shall stay the suspension or 
 31.18  revocation until the commissioner issues a final order.  
 31.19     (b)(1) If the license holder was ordered to pay a fine, the 
 31.20  notice must inform the license holder of the responsibility for 
 31.21  payment of fines and the right to a contested case hearing under 
 31.22  chapter 14 and Minnesota Rules, parts 1400.8510 to 1400.8612 and 
 31.23  successor rules.  The appeal of an order to pay a fine must be 
 31.24  made in writing by certified mail and must be received by the 
 31.25  commissioner within ten calendar days after the license holder 
 31.26  receives notice that the fine has been ordered.  
 31.27     (2) The license holder shall pay the fines assessed on or 
 31.28  before the payment date specified.  If the license holder fails 
 31.29  to fully comply with the order, the commissioner may issue a 
 31.30  second fine or suspend the license until the license holder 
 31.31  complies.  If the license holder receives state funds, the 
 31.32  state, county, or municipal agencies or departments responsible 
 31.33  for administering the funds shall withhold payments and recover 
 31.34  any payments made while the license is suspended for failure to 
 31.35  pay a fine.  A timely appeal shall stay payment of the fine 
 31.36  until the commissioner issues a final order.  
 32.1      (3) A license holder shall promptly notify the commissioner 
 32.2   of human services, in writing, when a violation specified in the 
 32.3   order to forfeit a fine is corrected.  If upon reinspection the 
 32.4   commissioner determines that a violation has not been corrected 
 32.5   as indicated by the order to forfeit a fine, the commissioner 
 32.6   may issue a second fine.  The commissioner shall notify the 
 32.7   license holder by certified mail that a second fine has been 
 32.8   assessed.  The license holder may appeal the second fine as 
 32.9   provided under this subdivision. 
 32.10     (4) Fines shall be assessed as follows:  the license holder 
 32.11  shall forfeit $1,000 for each determination of maltreatment of a 
 32.12  child under section 626.556 or the maltreatment of a vulnerable 
 32.13  adult under section 626.557; the license holder shall forfeit 
 32.14  $200 for each occurrence of a violation of law or rule governing 
 32.15  matters of health, safety, or supervision, including but not 
 32.16  limited to the provision of adequate staff-to-child or adult 
 32.17  ratios, and failure to submit a background study; and the 
 32.18  license holder shall forfeit $100 for each occurrence of a 
 32.19  violation of law or rule other than those subject to a $1,000 or 
 32.20  $200 fine above.  For purposes of this section, "occurrence" 
 32.21  means each violation identified in the commissioner's fine order.
 32.22     (5) When a fine has been assessed, the license holder may 
 32.23  not avoid payment by closing, selling, or otherwise transferring 
 32.24  the licensed program to a third party.  In such an event, the 
 32.25  license holder will be personally liable for payment.  In the 
 32.26  case of a corporation, each controlling individual is personally 
 32.27  and jointly liable for payment.  
 32.28     Sec. 13.  [245A.085] [CONSOLIDATION OF HEARINGS; 
 32.29  RECONSIDERATION.] 
 32.30     Hearings authorized under this chapter and sections 
 32.31  256.045, 626.556, and 626.557, shall be consolidated if feasible 
 32.32  and in accordance with other applicable statutes and rules.  
 32.33  Reconsideration under sections 245A.04, subdivision 3c; 626.556, 
 32.34  subdivision 10i; and 626.557, subdivision 9d, shall also be 
 32.35  consolidated if feasible. 
 32.36     Sec. 14.  Minnesota Statutes 2001 Supplement, section 
 33.1   245A.144, is amended to read: 
 33.2      245A.144 [REDUCTION OF RISK OF SUDDEN INFANT DEATH SYNDROME 
 33.3   IN CHILD CARE PROGRAMS.] 
 33.4      License holders must ensure that before staff persons, 
 33.5   caregivers, and helpers assist in the care of infants, they 
 33.6   receive training on reducing the risk of sudden infant death 
 33.7   syndrome.  The training on reducing the risk of sudden infant 
 33.8   death syndrome may be provided as orientation training under 
 33.9   Minnesota Rules, part 9503.0035, subpart 1, as initial training 
 33.10  under Minnesota Rules, part 9502.0385, subpart 2, as in-service 
 33.11  training under Minnesota Rules, part 9503.0035, subpart 4, or as 
 33.12  ongoing training under Minnesota Rules, part 9502.0385, subpart 
 33.13  3.  Training required under this section must be at least one 
 33.14  hour in length and must be completed at least once every five 
 33.15  years.  At a minimum, the training must address the risk factors 
 33.16  related to sudden infant death syndrome, means of reducing the 
 33.17  risk of sudden infant death syndrome in child care, and license 
 33.18  holder communication with parents regarding reducing the risk of 
 33.19  sudden infant death syndrome.  Training for family and group 
 33.20  family child care providers must be approved by the county 
 33.21  licensing agency according to Minnesota Rules, part 9502.0385. 
 33.22     Sec. 15.  Minnesota Statutes 2001 Supplement, section 
 33.23  245A.16, subdivision 1, is amended to read: 
 33.24     Subdivision 1.  [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 
 33.25  County agencies and private agencies that have been designated 
 33.26  or licensed by the commissioner to perform licensing functions 
 33.27  and activities under section 245A.04, to recommend denial of 
 33.28  applicants under section 245A.05, to issue correction orders, to 
 33.29  issue variances, and recommend a conditional license under 
 33.30  section 245A.06, or to recommend suspending or revoking a 
 33.31  license or issuing a fine under section 245A.07, shall comply 
 33.32  with rules and directives of the commissioner governing those 
 33.33  functions and with this section.  The following variances are 
 33.34  excluded from the delegation of variance authority and may be 
 33.35  issued only by the commissioner: 
 33.36     (1) dual licensure of family child care and child foster 
 34.1   care, dual licensure of child and adult foster care, and adult 
 34.2   foster care and family child care; 
 34.3      (2) adult foster care maximum capacity; 
 34.4      (3) adult foster care minimum age requirement; 
 34.5      (4) child foster care maximum age requirement; 
 34.6      (5) variances regarding disqualified individuals except 
 34.7   that county agencies may issue variances under section 245A.04, 
 34.8   subdivision 3e, regarding disqualified individuals when the 
 34.9   county is responsible for conducting a consolidated 
 34.10  reconsideration according to section 245A.04, subdivision 3b, 
 34.11  paragraph (f), of a county maltreatment determination and a 
 34.12  disqualification based on serious or recurring maltreatment; and 
 34.13     (6) the required presence of a caregiver in the adult 
 34.14  foster care residence during normal sleeping hours. 
 34.15     (b) County agencies must report information about 
 34.16  disqualification reconsiderations under section 245A.04, 
 34.17  subdivision 3b, paragraph (f), and variances granted under 
 34.18  paragraph (a), clause (5), to the commissioner at least monthly 
 34.19  in a format prescribed by the commissioner. 
 34.20     (c) For family day care programs, the commissioner may 
 34.21  authorize licensing reviews every two years after a licensee has 
 34.22  had at least one annual review. 
 34.23     Sec. 16.  Minnesota Statutes 2001 Supplement, section 
 34.24  256.045, subdivision 3b, is amended to read: 
 34.25     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT AND 
 34.26  DISQUALIFICATION HEARINGS.] (a) The state human services referee 
 34.27  shall determine that maltreatment has occurred if a 
 34.28  preponderance of evidence exists to support the final 
 34.29  disposition under sections 626.556 and 626.557.  For purposes of 
 34.30  hearings regarding disqualification, the state human services 
 34.31  referee shall affirm the proposed disqualification in an appeal 
 34.32  under subdivision 3, paragraph (a), clause (9), if a 
 34.33  preponderance of the evidence shows the individual has:  
 34.34     (1) committed maltreatment under section 626.556 or 
 34.35  626.557, which is serious or recurring; 
 34.36     (2) committed an act or acts meeting the definition of any 
 35.1   of the crimes listed in section 245A.04, subdivision 3d, 
 35.2   paragraph (a), clauses (1) to (4); or 
 35.3      (3) failed to make required reports under section 626.556 
 35.4   or 626.557, for incidents in which:  
 35.5      (i) the final disposition under section 626.556 or 626.557 
 35.6   was substantiated maltreatment; and 
 35.7      (ii) the maltreatment was recurring or serious; or 
 35.8   substantiated serious or recurring maltreatment of a minor under 
 35.9   section 626.556 or of a vulnerable adult under section 626.557 
 35.10  for which there is a preponderance of evidence that the 
 35.11  maltreatment occurred, and that the subject was responsible for 
 35.12  the maltreatment that was serious or recurring.  
 35.13     (b) If the disqualification is affirmed, the state human 
 35.14  services referee shall determine whether the individual poses a 
 35.15  risk of harm in accordance with the requirements of section 
 35.16  245A.04, subdivision 3b. 
 35.17     (c) The state human services referee shall recommend an 
 35.18  order to the commissioner of health, children, families, and 
 35.19  learning, or human services, as applicable, who shall issue a 
 35.20  final order.  The commissioner shall affirm, reverse, or modify 
 35.21  the final disposition.  Any order of the commissioner issued in 
 35.22  accordance with this subdivision is conclusive upon the parties 
 35.23  unless appeal is taken in the manner provided in subdivision 7.  
 35.24  Except as provided under section 245A.04, subdivisions 3b, 
 35.25  paragraphs (e) and (f), and 3c, In any licensing appeal under 
 35.26  chapter 245A and sections 144.50 to 144.58 and 144A.02 to 
 35.27  144A.46, the commissioner's determination as to maltreatment is 
 35.28  conclusive, as provided under section 245A.04, subdivision 3f. 
 35.29     Sec. 17.  Minnesota Statutes 2001 Supplement, section 
 35.30  256.045, subdivision 4, is amended to read: 
 35.31     Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
 35.32  pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
 35.33  according to the provisions of the federal Social Security Act 
 35.34  and the regulations implemented in accordance with that act to 
 35.35  enable this state to qualify for federal grants-in-aid, and 
 35.36  according to the rules and written policies of the commissioner 
 36.1   of human services.  County agencies shall install equipment 
 36.2   necessary to conduct telephone hearings.  A state human services 
 36.3   referee may schedule a telephone conference hearing when the 
 36.4   distance or time required to travel to the county agency offices 
 36.5   will cause a delay in the issuance of an order, or to promote 
 36.6   efficiency, or at the mutual request of the parties.  Hearings 
 36.7   may be conducted by telephone conferences unless the applicant, 
 36.8   recipient, former recipient, person, or facility contesting 
 36.9   maltreatment objects.  The hearing shall not be held earlier 
 36.10  than five days after filing of the required notice with the 
 36.11  county or state agency.  The state human services referee shall 
 36.12  notify all interested persons of the time, date, and location of 
 36.13  the hearing at least five days before the date of the hearing.  
 36.14  Interested persons may be represented by legal counsel or other 
 36.15  representative of their choice, including a provider of therapy 
 36.16  services, at the hearing and may appear personally, testify and 
 36.17  offer evidence, and examine and cross-examine witnesses.  The 
 36.18  applicant, recipient, former recipient, person, or facility 
 36.19  contesting maltreatment shall have the opportunity to examine 
 36.20  the contents of the case file and all documents and records to 
 36.21  be used by the county or state agency at the hearing at a 
 36.22  reasonable time before the date of the hearing and during the 
 36.23  hearing.  In hearings under subdivision 3, paragraph (a), 
 36.24  clauses (4), (8), and (9), either party may subpoena the private 
 36.25  data relating to the investigation prepared by the agency under 
 36.26  section 626.556 or 626.557 that is not otherwise accessible 
 36.27  under section 13.04, provided the identity of the reporter may 
 36.28  not be disclosed. 
 36.29     (b) The private data obtained by subpoena in a hearing 
 36.30  under subdivision 3, paragraph (a), clause (4), (8), or (9), 
 36.31  must be subject to a protective order which prohibits its 
 36.32  disclosure for any other purpose outside the hearing provided 
 36.33  for in this section without prior order of the district court.  
 36.34  Disclosure without court order is punishable by a sentence of 
 36.35  not more than 90 days imprisonment or a fine of not more than 
 36.36  $700, or both.  These restrictions on the use of private data do 
 37.1   not prohibit access to the data under section 13.03, subdivision 
 37.2   6.  Except for appeals under subdivision 3, paragraph (a), 
 37.3   clauses (4), (5), (8), and (9), upon request, the county agency 
 37.4   shall provide reimbursement for transportation, child care, 
 37.5   photocopying, medical assessment, witness fee, and other 
 37.6   necessary and reasonable costs incurred by the applicant, 
 37.7   recipient, or former recipient in connection with the appeal.  
 37.8   All evidence, except that privileged by law, commonly accepted 
 37.9   by reasonable people in the conduct of their affairs as having 
 37.10  probative value with respect to the issues shall be submitted at 
 37.11  the hearing and such hearing shall not be "a contested case" 
 37.12  within the meaning of section 14.02, subdivision 3.  The agency 
 37.13  must present its evidence prior to or at the hearing, and may 
 37.14  not submit evidence after the hearing except by agreement of the 
 37.15  parties at the hearing, provided the petitioner has the 
 37.16  opportunity to respond. 
 37.17     (c) In hearings under subdivision 3, paragraph (a), clauses 
 37.18  (4), (8), and (9), involving determinations of maltreatment or 
 37.19  disqualification made by more than one county agency, by a 
 37.20  county agency and a state agency, or by more than one state 
 37.21  agency, the hearings may be consolidated into a single fair 
 37.22  hearing upon the consent of all parties and the state human 
 37.23  services referee. 
 37.24     Sec. 18.  Minnesota Statutes 2000, section 256B.0625, is 
 37.25  amended by adding a subdivision to read: 
 37.26     Subd. 44.  [TARGETED CASE MANAGEMENT SERVICES.] Medical 
 37.27  assistance covers case management services for vulnerable adults 
 37.28  and adults with developmental disabilities, in accordance with 
 37.29  section 256B.0924. 
 37.30     Sec. 19.  Minnesota Statutes 2001 Supplement, section 
 37.31  256B.0913, subdivision 4, is amended to read: 
 37.32     Subd. 4.  [ELIGIBILITY FOR FUNDING FOR SERVICES FOR 
 37.33  NONMEDICAL ASSISTANCE RECIPIENTS.] (a) Funding for services 
 37.34  under the alternative care program is available to persons who 
 37.35  meet the following criteria: 
 37.36     (1) the person has been determined by a community 
 38.1   assessment under section 256B.0911 to be a person who would 
 38.2   require the level of care provided in a nursing facility, but 
 38.3   for the provision of services under the alternative care 
 38.4   program; 
 38.5      (2) the person is age 65 or older; 
 38.6      (3) the person would be eligible for medical assistance 
 38.7   within 180 days of admission to a nursing facility; 
 38.8      (4) the person is not ineligible for the medical assistance 
 38.9   program due to an asset transfer penalty; 
 38.10     (5) the person needs services that are not funded through 
 38.11  other state or federal funding; and 
 38.12     (6) the monthly cost of the alternative care services 
 38.13  funded by the program for this person does not exceed 75 percent 
 38.14  of the statewide weighted average monthly nursing facility rate 
 38.15  of the case mix resident class to which the individual 
 38.16  alternative care client would be assigned under Minnesota Rules, 
 38.17  parts 9549.0050 to 9549.0059, less the recipient's maintenance 
 38.18  needs allowance as described in section 256B.0915, subdivision 
 38.19  1d, paragraph (a), until the first day of the state fiscal year 
 38.20  in which the resident assessment system, under section 256B.437, 
 38.21  for nursing home rate determination is implemented.  Effective 
 38.22  on the first day of the state fiscal year in which a resident 
 38.23  assessment system, under section 256B.437, for nursing home rate 
 38.24  determination is implemented and the first day of each 
 38.25  subsequent state fiscal year, the monthly cost of alternative 
 38.26  care services for this person shall not exceed the alternative 
 38.27  care monthly cap for the case mix resident class to which the 
 38.28  alternative care client would be assigned under Minnesota Rules, 
 38.29  parts 9549.0050 to 9549.0059, which was in effect on the last 
 38.30  day of the previous state fiscal year, and adjusted by the 
 38.31  greater of any legislatively adopted home and community-based 
 38.32  services cost-of-living percentage increase or any legislatively 
 38.33  adopted statewide percent rate increase for nursing facilities.  
 38.34  This monthly limit does not prohibit the alternative care client 
 38.35  from payment for additional services, but in no case may the 
 38.36  cost of additional services purchased under this section exceed 
 39.1   the difference between the client's monthly service limit 
 39.2   defined under section 256B.0915, subdivision 3, and the 
 39.3   alternative care program monthly service limit defined in this 
 39.4   paragraph.  If medical supplies and equipment or environmental 
 39.5   modifications are or will be purchased for an alternative care 
 39.6   services recipient, the costs may be prorated on a monthly basis 
 39.7   for up to 12 consecutive months beginning with the month of 
 39.8   purchase.  If the monthly cost of a recipient's other 
 39.9   alternative care services exceeds the monthly limit established 
 39.10  in this paragraph, the annual cost of the alternative care 
 39.11  services shall be determined.  In this event, the annual cost of 
 39.12  alternative care services shall not exceed 12 times the monthly 
 39.13  limit described in this paragraph. 
 39.14     (b) Alternative care funding under this subdivision is not 
 39.15  available for a person who is a medical assistance recipient or 
 39.16  who would be eligible for medical assistance without a spenddown 
 39.17  or waiver obligation.  A person whose initial application for 
 39.18  medical assistance is being processed may be served under the 
 39.19  alternative care program for a period up to 60 days.  If the 
 39.20  individual is found to be eligible for medical assistance, 
 39.21  medical assistance must be billed for services payable under the 
 39.22  federally approved elderly waiver plan and delivered from the 
 39.23  date the individual was found eligible for the federally 
 39.24  approved elderly waiver plan.  Notwithstanding this provision, 
 39.25  upon federal approval, alternative care funds may not be used to 
 39.26  pay for any service the cost of which is payable by medical 
 39.27  assistance or which is used by a recipient to meet a medical 
 39.28  assistance income spenddown or waiver obligation.  
 39.29     (c) Alternative care funding is not available for a person 
 39.30  who resides in a licensed nursing home, certified boarding care 
 39.31  home, hospital, or intermediate care facility, except for case 
 39.32  management services which are provided in support of the 
 39.33  discharge planning process to a nursing home resident or 
 39.34  certified boarding care home resident who is ineligible for case 
 39.35  management funded by medical assistance. 
 39.36     Sec. 20.  Minnesota Statutes 2001 Supplement, section 
 40.1   256B.0913, subdivision 5, is amended to read: 
 40.2      Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
 40.3   Alternative care funding may be used for payment of costs of: 
 40.4      (1) adult foster care; 
 40.5      (2) adult day care; 
 40.6      (3) home health aide; 
 40.7      (4) homemaker services; 
 40.8      (5) personal care; 
 40.9      (6) case management; 
 40.10     (7) respite care; 
 40.11     (8) assisted living; 
 40.12     (9) residential care services; 
 40.13     (10) care-related supplies and equipment; 
 40.14     (11) meals delivered to the home; 
 40.15     (12) transportation; 
 40.16     (13) skilled nursing services; 
 40.17     (14) chore services; 
 40.18     (15) companion services; 
 40.19     (16) nutrition services; 
 40.20     (17) training for direct informal caregivers; 
 40.21     (18) telemedicine telehome care devices to monitor 
 40.22  recipients in their own homes as an alternative to hospital 
 40.23  care, nursing home care, or home visits; 
 40.24     (19) other services which includes discretionary funds and 
 40.25  direct cash payments to clients, following approval by the 
 40.26  commissioner, subject to the provisions of paragraph (j).  Total 
 40.27  annual payments for "other services" for all clients within a 
 40.28  county may not exceed either ten percent of that county's annual 
 40.29  alternative care program base allocation or $5,000, whichever is 
 40.30  greater.  In no case shall this amount exceed the county's total 
 40.31  annual alternative care program base allocation; and 
 40.32     (20) environmental modifications. 
 40.33     (b) The county agency must ensure that the funds are not 
 40.34  used to supplant services available through other public 
 40.35  assistance or services programs. 
 40.36     (c) Unless specified in statute, the service services, 
 41.1   service definitions, and standards for alternative care services 
 41.2   shall be the same as the service services, service definitions, 
 41.3   and standards specified in the federally approved elderly waiver 
 41.4   plan.  Except for the county agencies' approval of direct cash 
 41.5   payments to clients as described in paragraph (j) or for a 
 41.6   provider of supplies and equipment when the monthly cost of the 
 41.7   supplies and equipment is less than $250, persons or agencies 
 41.8   must be employed by or under a contract with the county agency 
 41.9   or the public health nursing agency of the local board of health 
 41.10  in order to receive funding under the alternative care program.  
 41.11  Supplies and equipment may be purchased from a vendor not 
 41.12  certified to participate in the Medicaid program if the cost for 
 41.13  the item is less than that of a Medicaid vendor.  
 41.14     (d) The adult foster care rate shall be considered a 
 41.15  difficulty of care payment and shall not include room and 
 41.16  board.  The adult foster care rate shall be negotiated between 
 41.17  the county agency and the foster care provider.  The alternative 
 41.18  care payment for the foster care service in combination with the 
 41.19  payment for other alternative care services, including case 
 41.20  management, must not exceed the limit specified in subdivision 
 41.21  4, paragraph (a), clause (6). 
 41.22     (e) Personal care services must meet the service standards 
 41.23  defined in the federally approved elderly waiver plan, except 
 41.24  that a county agency may contract with a client's relative who 
 41.25  meets the relative hardship waiver requirement as defined in 
 41.26  section 256B.0627, subdivision 4, paragraph (b), clause (10), to 
 41.27  provide personal care services if the county agency ensures 
 41.28  supervision of this service by a registered nurse or mental 
 41.29  health practitioner qualified professional as defined in section 
 41.30  256B.0625, subdivision 19c.  
 41.31     (f) For purposes of this section, residential care services 
 41.32  are services which are provided to individuals living in 
 41.33  residential care homes.  Residential care homes are currently 
 41.34  licensed as board and lodging establishments and are registered 
 41.35  with the department of health as providing special services 
 41.36  under section 157.17 and are not subject to registration under 
 42.1   chapter 144D.  Residential care services are defined as 
 42.2   "supportive services" and "health-related services."  
 42.3   "Supportive services" means the provision of up to 24-hour 
 42.4   supervision and oversight.  Supportive services includes:  (1) 
 42.5   transportation, when provided by the residential care home only; 
 42.6   (2) socialization, when socialization is part of the plan of 
 42.7   care, has specific goals and outcomes established, and is not 
 42.8   diversional or recreational in nature; (3) assisting clients in 
 42.9   setting up meetings and appointments; (4) assisting clients in 
 42.10  setting up medical and social services; (5) providing assistance 
 42.11  with personal laundry, such as carrying the client's laundry to 
 42.12  the laundry room.  Assistance with personal laundry does not 
 42.13  include any laundry, such as bed linen, that is included in the 
 42.14  room and board rate.  "Health-related services" are limited to 
 42.15  minimal assistance with dressing, grooming, and bathing and 
 42.16  providing reminders to residents to take medications that are 
 42.17  self-administered or providing storage for medications, if 
 42.18  requested.  Individuals receiving residential care services 
 42.19  cannot receive homemaking services funded under this section.  
 42.20     (g) For the purposes of this section, "assisted living" 
 42.21  refers to supportive services provided by a single vendor to 
 42.22  clients who reside in the same apartment building of three or 
 42.23  more units which are not subject to registration under chapter 
 42.24  144D and are licensed by the department of health as a class A 
 42.25  home care provider or a class E home care provider.  Assisted 
 42.26  living services are defined as up to 24-hour supervision, and 
 42.27  oversight, supportive services as defined in clause (1), 
 42.28  individualized home care aide tasks as defined in clause (2), 
 42.29  and individualized home management tasks as defined in clause 
 42.30  (3) provided to residents of a residential center living in 
 42.31  their units or apartments with a full kitchen and bathroom.  A 
 42.32  full kitchen includes a stove, oven, refrigerator, food 
 42.33  preparation counter space, and a kitchen utensil storage 
 42.34  compartment.  Assisted living services must be provided by the 
 42.35  management of the residential center or by providers under 
 42.36  contract with the management or with the county. 
 43.1      (1) Supportive services include:  
 43.2      (i) socialization, when socialization is part of the plan 
 43.3   of care, has specific goals and outcomes established, and is not 
 43.4   diversional or recreational in nature; 
 43.5      (ii) assisting clients in setting up meetings and 
 43.6   appointments; and 
 43.7      (iii) providing transportation, when provided by the 
 43.8   residential center only.  
 43.9      (2) Home care aide tasks means:  
 43.10     (i) preparing modified diets, such as diabetic or low 
 43.11  sodium diets; 
 43.12     (ii) reminding residents to take regularly scheduled 
 43.13  medications or to perform exercises; 
 43.14     (iii) household chores in the presence of technically 
 43.15  sophisticated medical equipment or episodes of acute illness or 
 43.16  infectious disease; 
 43.17     (iv) household chores when the resident's care requires the 
 43.18  prevention of exposure to infectious disease or containment of 
 43.19  infectious disease; and 
 43.20     (v) assisting with dressing, oral hygiene, hair care, 
 43.21  grooming, and bathing, if the resident is ambulatory, and if the 
 43.22  resident has no serious acute illness or infectious disease.  
 43.23  Oral hygiene means care of teeth, gums, and oral prosthetic 
 43.24  devices.  
 43.25     (3) Home management tasks means:  
 43.26     (i) housekeeping; 
 43.27     (ii) laundry; 
 43.28     (iii) preparation of regular snacks and meals; and 
 43.29     (iv) shopping.  
 43.30     Individuals receiving assisted living services shall not 
 43.31  receive both assisted living services and homemaking services.  
 43.32  Individualized means services are chosen and designed 
 43.33  specifically for each resident's needs, rather than provided or 
 43.34  offered to all residents regardless of their illnesses, 
 43.35  disabilities, or physical conditions.  Assisted living services 
 43.36  as defined in this section shall not be authorized in boarding 
 44.1   and lodging establishments licensed according to sections 
 44.2   157.011 and 157.15 to 157.22. 
 44.3      (h) For establishments registered under chapter 144D, 
 44.4   assisted living services under this section means either the 
 44.5   services described in paragraph (g) and delivered by a class E 
 44.6   home care provider licensed by the department of health or the 
 44.7   services described under section 144A.4605 and delivered by an 
 44.8   assisted living home care provider or a class A home care 
 44.9   provider licensed by the commissioner of health. 
 44.10     (i) Payment for assisted living services and residential 
 44.11  care services shall be a monthly rate negotiated and authorized 
 44.12  by the county agency based on an individualized service plan for 
 44.13  each resident and may not cover direct rent or food costs.  
 44.14     (1) The individualized monthly negotiated payment for 
 44.15  assisted living services as described in paragraph (g) or (h), 
 44.16  and residential care services as described in paragraph (f), 
 44.17  shall not exceed the nonfederal share in effect on July 1 of the 
 44.18  state fiscal year for which the rate limit is being calculated 
 44.19  of the greater of either the statewide or any of the geographic 
 44.20  groups' weighted average monthly nursing facility payment rate 
 44.21  of the case mix resident class to which the alternative care 
 44.22  eligible client would be assigned under Minnesota Rules, parts 
 44.23  9549.0050 to 9549.0059, less the maintenance needs allowance as 
 44.24  described in section 256B.0915, subdivision 1d, paragraph (a), 
 44.25  until the first day of the state fiscal year in which a resident 
 44.26  assessment system, under section 256B.437, of nursing home rate 
 44.27  determination is implemented.  Effective on the first day of the 
 44.28  state fiscal year in which a resident assessment system, under 
 44.29  section 256B.437, of nursing home rate determination is 
 44.30  implemented and the first day of each subsequent state fiscal 
 44.31  year, the individualized monthly negotiated payment for the 
 44.32  services described in this clause shall not exceed the limit 
 44.33  described in this clause which was in effect on the last day of 
 44.34  the previous state fiscal year and which has been adjusted by 
 44.35  the greater of any legislatively adopted home and 
 44.36  community-based services cost-of-living percentage increase or 
 45.1   any legislatively adopted statewide percent rate increase for 
 45.2   nursing facilities. 
 45.3      (2) The individualized monthly negotiated payment for 
 45.4   assisted living services described under section 144A.4605 and 
 45.5   delivered by a provider licensed by the department of health as 
 45.6   a class A home care provider or an assisted living home care 
 45.7   provider and provided in a building that is registered as a 
 45.8   housing with services establishment under chapter 144D and that 
 45.9   provides 24-hour supervision in combination with the payment for 
 45.10  other alternative care services, including case management, must 
 45.11  not exceed the limit specified in subdivision 4, paragraph (a), 
 45.12  clause (6). 
 45.13     (j) A county agency may make payment from their alternative 
 45.14  care program allocation for "other services" which include use 
 45.15  of "discretionary funds" for services that are not otherwise 
 45.16  defined in this section and direct cash payments to the client 
 45.17  for the purpose of purchasing the services.  The following 
 45.18  provisions apply to payments under this paragraph: 
 45.19     (1) a cash payment to a client under this provision cannot 
 45.20  exceed 80 percent of the monthly payment limit for that client 
 45.21  as specified in subdivision 4, paragraph (a), clause (6); 
 45.22     (2) a county may not approve any cash payment for a client 
 45.23  who meets either of the following: 
 45.24     (i) has been assessed as having a dependency in 
 45.25  orientation, unless the client has an authorized 
 45.26  representative.  An "authorized representative" means an 
 45.27  individual who is at least 18 years of age and is designated by 
 45.28  the person or the person's legal representative to act on the 
 45.29  person's behalf.  This individual may be a family member, 
 45.30  guardian, representative payee, or other individual designated 
 45.31  by the person or the person's legal representative, if any, to 
 45.32  assist in purchasing and arranging for supports; or 
 45.33     (ii) is concurrently receiving adult foster care, 
 45.34  residential care, or assisted living services; 
 45.35     (3) cash payments to a person or a person's family will be 
 45.36  provided through a monthly payment and be in the form of cash, 
 46.1   voucher, or direct county payment to a vendor.  Fees or premiums 
 46.2   assessed to the person for eligibility for health and human 
 46.3   services are not reimbursable through this service option.  
 46.4   Services and goods purchased through cash payments must be 
 46.5   identified in the person's individualized care plan and must 
 46.6   meet all of the following criteria: 
 46.7      (i) they must be over and above the normal cost of caring 
 46.8   for the person if the person did not have functional 
 46.9   limitations; 
 46.10     (ii) they must be directly attributable to the person's 
 46.11  functional limitations; 
 46.12     (iii) they must have the potential to be effective at 
 46.13  meeting the goals of the program; 
 46.14     (iv) they must be consistent with the needs identified in 
 46.15  the individualized service plan.  The service plan shall specify 
 46.16  the needs of the person and family, the form and amount of 
 46.17  payment, the items and services to be reimbursed, and the 
 46.18  arrangements for management of the individual grant; and 
 46.19     (v) the person, the person's family, or the legal 
 46.20  representative shall be provided sufficient information to 
 46.21  ensure an informed choice of alternatives.  The local agency 
 46.22  shall document this information in the person's care plan, 
 46.23  including the type and level of expenditures to be reimbursed; 
 46.24     (4) the state of Minnesota, county, lead agency under 
 46.25  contract, or tribal government under contract to administer the 
 46.26  alternative care program shall not be liable for damages, 
 46.27  injuries, or liabilities sustained through the purchase of 
 46.28  direct supports or goods by the person, the person's family, or 
 46.29  the authorized representative with funds received through the 
 46.30  cash payments under this section.  Liabilities include, but are 
 46.31  not limited to, workers' compensation, the Federal Insurance 
 46.32  Contributions Act (FICA), or the Federal Unemployment Tax Act 
 46.33  (FUTA); 
 46.34     (5) persons receiving grants under this section shall have 
 46.35  the following responsibilities: 
 46.36     (i) spend the grant money in a manner consistent with their 
 47.1   individualized service plan with the local agency; 
 47.2      (ii) notify the local agency of any necessary changes in 
 47.3   the grant expenditures; 
 47.4      (iii) arrange and pay for supports; and 
 47.5      (iv) inform the local agency of areas where they have 
 47.6   experienced difficulty securing or maintaining supports; and 
 47.7      (6) the county shall report client outcomes, services, and 
 47.8   costs under this paragraph in a manner prescribed by the 
 47.9   commissioner. 
 47.10     (k) Upon implementation of direct cash payments to clients 
 47.11  under this section, any person determined eligible for the 
 47.12  alternative care program who chooses a cash payment approved by 
 47.13  the county agency shall receive the cash payment under this 
 47.14  section and not under section 256.476 unless the person was 
 47.15  receiving a consumer support grant under section 256.476 before 
 47.16  implementation of direct cash payments under this section. 
 47.17     Sec. 21.  Minnesota Statutes 2001 Supplement, section 
 47.18  256B.0913, subdivision 8, is amended to read: 
 47.19     Subd. 8.  [REQUIREMENTS FOR INDIVIDUAL CARE PLAN.] (a) The 
 47.20  case manager shall implement the plan of care for each 
 47.21  alternative care client and ensure that a client's service needs 
 47.22  and eligibility are reassessed at least every 12 months.  The 
 47.23  plan shall include any services prescribed by the individual's 
 47.24  attending physician as necessary to allow the individual to 
 47.25  remain in a community setting.  In developing the individual's 
 47.26  care plan, the case manager should include the use of volunteers 
 47.27  from families and neighbors, religious organizations, social 
 47.28  clubs, and civic and service organizations to support the formal 
 47.29  home care services.  The county shall be held harmless for 
 47.30  damages or injuries sustained through the use of volunteers 
 47.31  under this subdivision including workers' compensation 
 47.32  liability.  The lead agency shall provide documentation in each 
 47.33  individual's plan of care and, if requested, to the commissioner 
 47.34  that the most cost-effective alternatives available have been 
 47.35  offered to the individual and that the individual was free to 
 47.36  choose among available qualified providers, both public and 
 48.1   private.  The case manager must give the individual a ten-day 
 48.2   written notice of any decrease in or denial, termination, or 
 48.3   reduction of alternative care services. 
 48.4      (b) If the county administering alternative care services 
 48.5   is different than the county of financial responsibility, the 
 48.6   care plan may be implemented without the approval of the county 
 48.7   of financial responsibility. 
 48.8      Sec. 22.  Minnesota Statutes 2001 Supplement, section 
 48.9   256B.0913, subdivision 10, is amended to read: 
 48.10     Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
 48.11  appropriation for fiscal years 1992 and beyond shall cover only 
 48.12  alternative care eligible clients.  Prior to By July 1 of each 
 48.13  year, the commissioner shall allocate to county agencies the 
 48.14  state funds available for alternative care for persons eligible 
 48.15  under subdivision 2. 
 48.16     (b) The adjusted base for each county is the county's 
 48.17  current fiscal year base allocation plus any targeted funds 
 48.18  approved during the current fiscal year.  Calculations for 
 48.19  paragraphs (c) and (d) are to be made as follows:  for each 
 48.20  county, the determination of alternative care program 
 48.21  expenditures shall be based on payments for services rendered 
 48.22  from April 1 through March 31 in the base year, to the extent 
 48.23  that claims have been submitted and paid by June 1 of that year. 
 48.24     (c) If the alternative care program expenditures as defined 
 48.25  in paragraph (b) are 95 percent or more of the county's adjusted 
 48.26  base allocation, the allocation for the next fiscal year is 100 
 48.27  percent of the adjusted base, plus inflation to the extent that 
 48.28  inflation is included in the state budget. 
 48.29     (d) If the alternative care program expenditures as defined 
 48.30  in paragraph (b) are less than 95 percent of the county's 
 48.31  adjusted base allocation, the allocation for the next fiscal 
 48.32  year is the adjusted base allocation less the amount of unspent 
 48.33  funds below the 95 percent level. 
 48.34     (e) If the annual legislative appropriation for the 
 48.35  alternative care program is inadequate to fund the combined 
 48.36  county allocations for a biennium, the commissioner shall 
 49.1   distribute to each county the entire annual appropriation as 
 49.2   that county's percentage of the computed base as calculated in 
 49.3   paragraphs (c) and (d). 
 49.4      Sec. 23.  Minnesota Statutes 2001 Supplement, section 
 49.5   256B.0913, subdivision 12, is amended to read: 
 49.6      Subd. 12.  [CLIENT PREMIUMS.] (a) A premium is required for 
 49.7   all alternative care eligible clients to help pay for the cost 
 49.8   of participating in the program.  The amount of the premium for 
 49.9   the alternative care client shall be determined as follows: 
 49.10     (1) when the alternative care client's income less 
 49.11  recurring and predictable medical expenses is greater than the 
 49.12  recipient's maintenance needs allowance as defined in section 
 49.13  256B.0915, subdivision 1d, paragraph (a), but less than 150 
 49.14  percent of the federal poverty guideline effective on July 1 of 
 49.15  the state fiscal year in which the premium is being computed, 
 49.16  and total assets are less than $10,000, the fee is zero; 
 49.17     (2) when the alternative care client's income less 
 49.18  recurring and predictable medical expenses is greater than 150 
 49.19  percent of the federal poverty guideline effective on July 1 of 
 49.20  the state fiscal year in which the premium is being computed, 
 49.21  and total assets are less than $10,000, the fee is 25 percent of 
 49.22  the cost of alternative care services or the difference between 
 49.23  150 percent of the federal poverty guideline effective on July 1 
 49.24  of the state fiscal year in which the premium is being computed 
 49.25  and the client's income less recurring and predictable medical 
 49.26  expenses, whichever is less; and 
 49.27     (3) when the alternative care client's total assets are 
 49.28  greater than $10,000, the fee is 25 percent of the cost of 
 49.29  alternative care services.  
 49.30     For married persons, total assets are defined as the total 
 49.31  marital assets less the estimated community spouse asset 
 49.32  allowance, under section 256B.059, if applicable.  For married 
 49.33  persons, total income is defined as the client's income less the 
 49.34  monthly spousal allotment, under section 256B.058. 
 49.35     All alternative care services except case management shall 
 49.36  be included in the estimated costs for the purpose of 
 50.1   determining 25 percent of the costs. 
 50.2      The monthly premium shall be calculated based on the cost 
 50.3   of the first full month of alternative care services and shall 
 50.4   continue unaltered until the next reassessment is completed or 
 50.5   at the end of 12 months, whichever comes first.  Premiums are 
 50.6   due and payable each month alternative care services are 
 50.7   received unless the actual cost of the services is less than the 
 50.8   premium. 
 50.9      (b) The fee shall be waived by the commissioner when: 
 50.10     (1) a person who is residing in a nursing facility is 
 50.11  receiving case management only; 
 50.12     (2) a person is applying for medical assistance; 
 50.13     (3) a married couple is requesting an asset assessment 
 50.14  under the spousal impoverishment provisions; 
 50.15     (4) a person is found eligible for alternative care, but is 
 50.16  not yet receiving alternative care services; or 
 50.17     (5) a person's fee under paragraph (a) is less than $25. 
 50.18     (c) The county agency must record in the state's receivable 
 50.19  system the client's assessed premium amount or the reason the 
 50.20  premium has been waived.  The commissioner will bill and collect 
 50.21  the premium from the client.  Money collected must be deposited 
 50.22  in the general fund and is appropriated to the commissioner for 
 50.23  the alternative care program.  The client must supply the county 
 50.24  with the client's social security number at the time of 
 50.25  application.  The county shall supply the commissioner with the 
 50.26  client's social security number and other information the 
 50.27  commissioner requires to collect the premium from the client.  
 50.28  The commissioner shall collect unpaid premiums using the Revenue 
 50.29  Recapture Act in chapter 270A and other methods available to the 
 50.30  commissioner.  The commissioner may require counties to inform 
 50.31  clients of the collection procedures that may be used by the 
 50.32  state if a premium is not paid.  This paragraph does not apply 
 50.33  to alternative care pilot projects authorized in Laws 1993, 
 50.34  First Special Session chapter 1, article 5, section 133, if a 
 50.35  county operating under the pilot project reports the following 
 50.36  dollar amounts to the commissioner quarterly: 
 51.1      (1) total premiums billed to clients; 
 51.2      (2) total collections of premiums billed; and 
 51.3      (3) balance of premiums owed by clients. 
 51.4   If a county does not adhere to these reporting requirements, the 
 51.5   commissioner may terminate the billing, collecting, and 
 51.6   remitting portions of the pilot project and require the county 
 51.7   involved to operate under the procedures set forth in this 
 51.8   paragraph. 
 51.9      (d) The commissioner shall begin to adopt emergency or 
 51.10  permanent rules governing client premiums within 30 days after 
 51.11  July 1, 1991, including criteria for determining when services 
 51.12  to a client must be terminated due to failure to pay a premium.  
 51.13     Sec. 24.  Minnesota Statutes 2001 Supplement, section 
 51.14  256B.0913, subdivision 14, is amended to read: 
 51.15     Subd. 14.  [PROVIDER REQUIREMENTS, PAYMENT, AND RATE 
 51.16  ADJUSTMENTS.] (a) Unless otherwise specified in statute, 
 51.17  providers must be enrolled as Minnesota health care program 
 51.18  providers and abide by the requirements for provider 
 51.19  participation according to Minnesota Rules, part 9505.0195. 
 51.20     (b) Payment for provided alternative care services as 
 51.21  approved by the client's case manager shall be occur through the 
 51.22  invoice processing procedures of the department's Medicaid 
 51.23  Management Information System (MMIS).  To receive payment, the 
 51.24  county or vendor must submit invoices within 12 months following 
 51.25  the date of service.  The county agency and its vendors under 
 51.26  contract shall not be reimbursed for services which exceed the 
 51.27  county allocation. 
 51.28     (b) (c) The county shall negotiate individual rates with 
 51.29  vendors and may authorize service payment for actual costs up to 
 51.30  the county's current approved rate.  Notwithstanding any other 
 51.31  rule or statutory provision to the contrary, the commissioner 
 51.32  shall not be authorized to increase rates by an annual inflation 
 51.33  factor, unless so authorized by the legislature.  To improve 
 51.34  access to community services and eliminate payment disparities 
 51.35  between the alternative care program and the elderly waiver 
 51.36  program, the commissioner shall establish statewide maximum 
 52.1   service rate limits and eliminate county-specific service rate 
 52.2   limits. 
 52.3      (1) Effective July 1, 2001, for service rate limits, except 
 52.4   those in subdivision 5, paragraphs (d) and (i), the rate limit 
 52.5   for each service shall be the greater of the alternative care 
 52.6   statewide maximum rate or the elderly waiver statewide maximum 
 52.7   rate. 
 52.8      (2) Counties may negotiate individual service rates with 
 52.9   vendors for actual costs up to the statewide maximum service 
 52.10  rate limit. 
 52.11     Sec. 25.  Minnesota Statutes 2000, section 256B.0915, 
 52.12  subdivision 4, is amended to read: 
 52.13     Subd. 4.  [TERMINATION NOTICE.] The case manager must give 
 52.14  the individual a ten-day written notice of any decrease in 
 52.15  denial, reduction, or termination of waivered services. 
 52.16     Sec. 26.  Minnesota Statutes 2001 Supplement, section 
 52.17  256B.0915, subdivision 5, is amended to read: 
 52.18     Subd. 5.  [ASSESSMENTS AND REASSESSMENTS FOR WAIVER 
 52.19  CLIENTS.] Each client shall receive an initial assessment of 
 52.20  strengths, informal supports, and need for services in 
 52.21  accordance with section 256B.0911, subdivisions 3, 3a, and 3b.  
 52.22  A reassessment of a client served under the elderly waiver must 
 52.23  be conducted at least every 12 months and at other times when 
 52.24  the case manager determines that there has been significant 
 52.25  change in the client's functioning.  This may include instances 
 52.26  where the client is discharged from the hospital.  
 52.27     Sec. 27.  Minnesota Statutes 2000, section 256B.0915, 
 52.28  subdivision 6, is amended to read: 
 52.29     Subd. 6.  [IMPLEMENTATION OF CARE PLAN.] Each elderly 
 52.30  waiver client shall be provided a copy of a written care plan 
 52.31  that meets the requirements outlined in section 256B.0913, 
 52.32  subdivision 8.  If the county administering waivered services is 
 52.33  different than the county of financial responsibility, the care 
 52.34  plan may be implemented without the approval of the county of 
 52.35  financial responsibility. 
 52.36     Sec. 28.  Minnesota Statutes 2000, section 256B.0915, is 
 53.1   amended by adding a subdivision to read: 
 53.2      Subd. 8.  [SERVICES AND SUPPORTS.] (a) Services and 
 53.3   supports shall meet the requirements set out in United States 
 53.4   Code, title 42, section 1396n. 
 53.5      (b) Services and supports shall promote consumer choice and 
 53.6   be arranged and provided consistent with individualized, written 
 53.7   care plans. 
 53.8      (c) The state of Minnesota, county, or tribal government 
 53.9   under contract to administer the elderly waiver shall not be 
 53.10  liable for damages, injuries, or liabilities sustained through 
 53.11  the purchase of direct supports or goods by the person, the 
 53.12  person's family, or the authorized representatives with funds 
 53.13  received through consumer directed community support services 
 53.14  under the federally approved waiver plan.  Liabilities include, 
 53.15  but are not limited to, workers' compensation liability, the 
 53.16  Federal Insurance Contributions Act (FICA), or the Federal 
 53.17  Unemployment Tax Act (FUTA). 
 53.18     Sec. 29.  Minnesota Statutes 2001 Supplement, section 
 53.19  256B.431, subdivision 2e, is amended to read: 
 53.20     Subd. 2e.  [CONTRACTS FOR SERVICES FOR VENTILATOR-DEPENDENT 
 53.21  PERSONS.] The commissioner may contract negotiate with a nursing 
 53.22  facility eligible to receive medical assistance payments to 
 53.23  provide services to a ventilator-dependent person identified by 
 53.24  the commissioner according to criteria developed by the 
 53.25  commissioner, including:  
 53.26     (1) nursing facility care has been recommended for the 
 53.27  person by a preadmission screening team; 
 53.28     (2) the person has been hospitalized and no longer requires 
 53.29  inpatient acute care hospital services; and 
 53.30     (3) the commissioner has determined that necessary services 
 53.31  for the person cannot be provided under existing nursing 
 53.32  facility rates.  
 53.33     The commissioner may issue a request for proposals to 
 53.34  provide services to a ventilator-dependent person to nursing 
 53.35  facilities eligible to receive medical assistance payments and 
 53.36  shall select nursing facilities from among respondents according 
 54.1   to criteria developed by the commissioner, including:  
 54.2      (1) the cost-effectiveness and appropriateness of services; 
 54.3      (2) the nursing facility's compliance with federal and 
 54.4   state licensing and certification standards; and 
 54.5      (3) the proximity of the nursing facility to a 
 54.6   ventilator-dependent person identified by the commissioner who 
 54.7   requires nursing facility placement.  
 54.8      The commissioner may negotiate an adjustment to the 
 54.9   operating cost payment rate for a nursing facility selected by 
 54.10  the commissioner from among respondents to the request for 
 54.11  proposals with a resident who is ventilator-dependent, for that 
 54.12  resident.  The negotiated adjustment must reflect only the 
 54.13  actual additional cost of meeting the specialized care needs of 
 54.14  a ventilator-dependent person identified by the commissioner for 
 54.15  whom necessary services cannot be provided under existing 
 54.16  nursing facility rates and which are not otherwise covered under 
 54.17  Minnesota Rules, parts 9549.0010 to 9549.0080 or 9505.0170 to 
 54.18  9505.0475.  For persons who are initially admitted to a nursing 
 54.19  facility before July 1, 2001, and have their payment rate under 
 54.20  this subdivision negotiated after July 1, 2001, the negotiated 
 54.21  payment rate must not exceed 200 percent of the highest multiple 
 54.22  bedroom payment rate for the facility, as initially established 
 54.23  by the commissioner for the rate year for case mix 
 54.24  classification K; or, upon implementation of the RUGs-based case 
 54.25  mix system, 200 percent of the highest RUGs rate.  For persons 
 54.26  initially admitted to a nursing facility on or after July 1, 
 54.27  2001, the negotiated payment rate must not exceed 300 percent of 
 54.28  the facility's multiple bedroom payment rate for case mix 
 54.29  classification K; or, upon implementation of the RUGs-based case 
 54.30  mix system, 300 percent of the highest RUGs rate.  The 
 54.31  negotiated adjustment shall not affect the payment rate charged 
 54.32  to private paying residents under the provisions of section 
 54.33  256B.48, subdivision 1.  
 54.34     Sec. 30.  Minnesota Statutes 2000, section 256B.431, 
 54.35  subdivision 14, is amended to read: 
 54.36     Subd. 14.  [LIMITATIONS ON SALES OF NURSING FACILITIES.] 
 55.1   (a) For rate periods beginning on October 1, 1992, and for rate 
 55.2   years beginning after June 30, 1993, a nursing facility's 
 55.3   property-related payment rate as established under subdivision 
 55.4   13 shall be adjusted by either paragraph (b) or (c) for the sale 
 55.5   of the nursing facility, including sales occurring after June 
 55.6   30, 1992, as provided in this subdivision. 
 55.7      (b) If the nursing facility's property-related payment rate 
 55.8   under subdivision 13 prior to sale is greater than the nursing 
 55.9   facility's rental rate under Minnesota Rules, parts 9549.0010 to 
 55.10  9549.0080, and this section prior to sale, the nursing 
 55.11  facility's property-related payment rate after sale shall be the 
 55.12  greater of its property-related payment rate under subdivision 
 55.13  13 prior to sale or its rental rate under Minnesota Rules, parts 
 55.14  9549.0010 to 9549.0080, and this section calculated after sale. 
 55.15     (c) If the nursing facility's property-related payment rate 
 55.16  under subdivision 13 prior to sale is equal to or less than the 
 55.17  nursing facility's rental rate under Minnesota Rules, parts 
 55.18  9549.0010 to 9549.0080, and this section prior to sale, the 
 55.19  nursing facility's property-related payment rate after sale 
 55.20  shall be the nursing facility's property-related payment rate 
 55.21  under subdivision 13 plus the difference between its rental rate 
 55.22  calculated under Minnesota Rules, parts 9549.0010 to 9549.0080, 
 55.23  and this section prior to sale and its rental rate calculated 
 55.24  under Minnesota Rules, parts 9549.0010 to 9549.0080, and this 
 55.25  section calculated after sale. 
 55.26     (d) For purposes of this subdivision, "sale" means the 
 55.27  purchase of a nursing facility's capital assets with cash or 
 55.28  debt.  The term sale does not include a stock purchase of a 
 55.29  nursing facility or any of the following transactions:  
 55.30     (1) a sale and leaseback to the same licensee that does not 
 55.31  constitute a change in facility license; 
 55.32     (2) a transfer of an interest to a trust; 
 55.33     (3) gifts or other transfers for no consideration; 
 55.34     (4) a merger of two or more related organizations; 
 55.35     (5) a change in the legal form of doing business, other 
 55.36  than a publicly held organization that becomes privately held or 
 56.1   vice versa; 
 56.2      (6) the addition of a new partner, owner, or shareholder 
 56.3   who owns less than 20 percent of the nursing facility or the 
 56.4   issuance of stock; and 
 56.5      (7) a sale, merger, reorganization, or any other transfer 
 56.6   of interest between related organizations other than those 
 56.7   permitted in this section.  
 56.8      (e) For purposes of this subdivision, "sale" includes the 
 56.9   sale or transfer of a nursing facility to a close relative as 
 56.10  defined in Minnesota Rules, part 9549.0020, subpart 38, item C, 
 56.11  upon the death of an owner, due to serious illness or 
 56.12  disability, as defined under the Social Security Act, under 
 56.13  United States Code, title 42, section 423(d)(1)(A), or upon 
 56.14  retirement of an owner from the business of owning or operating 
 56.15  a nursing home at 62 years of age or older.  For sales to a 
 56.16  close relative allowed under this paragraph, otherwise 
 56.17  nonallowable debt resulting from seller financing of all or a 
 56.18  portion of the debt resulting from the sale shall be allowed and 
 56.19  shall not be subject to Minnesota Rules, part 9549.0060, subpart 
 56.20  5, item E, provided that in addition to existing requirements 
 56.21  for allowance of debt and interest, the debt is subject to 
 56.22  repayment through annual principal payments and the interest 
 56.23  rate on the related organization debt does not exceed three 
 56.24  percentage points above the posted yield for standard 
 56.25  conventional fixed rate mortgages of the Federal Home Loan 
 56.26  Mortgage Corporation for delivery in 60 days in effect on the 
 56.27  day of sale.  If at any time, the seller forgives the related 
 56.28  organization debt allowed under this paragraph for other than 
 56.29  equal amount of payment on that debt, then the buyer shall pay 
 56.30  to the state the total revenue received by the nursing facility 
 56.31  after the sale attributable to the amount of allowable debt 
 56.32  which has been forgiven.  Any assignment, sale, or transfer of 
 56.33  the debt instrument entered into by the close relatives, either 
 56.34  directly or indirectly, which grants to the close relative buyer 
 56.35  the right to receive all or a portion of the payments under the 
 56.36  debt instrument shall, effective on the date of the transfer, 
 57.1   result in the prospective reduction in the corresponding portion 
 57.2   of the allowable debt and interest expense.  Upon the death of 
 57.3   the close relative seller, any remaining balance of the close 
 57.4   relative debt must be refinanced and such refinancing shall be 
 57.5   subject to the provisions of Minnesota Rules, part 9549.0060, 
 57.6   subpart 7, item G.  This paragraph shall not apply to sales 
 57.7   occurring on or after June 30, 1997.  
 57.8      (f) For purposes of this subdivision, "effective date of 
 57.9   sale" means the later of either the date on which legal title to 
 57.10  the capital assets is transferred or the date on which closing 
 57.11  for the sale occurred.  
 57.12     (g) The effective day for the property-related payment rate 
 57.13  determined under this subdivision shall be the first day of the 
 57.14  month following the month in which the effective date of sale 
 57.15  occurs or October 1, 1992, whichever is later, provided that the 
 57.16  notice requirements under section 256B.47, subdivision 2, have 
 57.17  been met. 
 57.18     (h) Notwithstanding Minnesota Rules, part 9549.0060, 
 57.19  subparts 5, item A, subitems (3) and (4), and 7, items E and F, 
 57.20  the commissioner shall limit the total allowable debt and 
 57.21  related interest for sales occurring after June 30, 1992, to the 
 57.22  sum of clauses (1) to (3):  
 57.23     (1) the historical cost of capital assets, as of the 
 57.24  nursing facility's most recent previous effective date of sale 
 57.25  or, if there has been no previous sale, the nursing facility's 
 57.26  initial historical cost of constructing capital assets; 
 57.27     (2) the average annual capital asset additions after 
 57.28  deduction for capital asset deletions, not including 
 57.29  depreciations; and 
 57.30     (3) one-half of the allowed inflation on the nursing 
 57.31  facility's capital assets.  The commissioner shall compute the 
 57.32  allowed inflation as described in paragraph (h) (i). 
 57.33     (i) For purposes of computing the amount of allowed 
 57.34  inflation, the commissioner must apply the following principles: 
 57.35     (1) the lesser of the Consumer Price Index for all urban 
 57.36  consumers or the Dodge Construction Systems Costs for Nursing 
 58.1   Homes for any time periods during which both are available must 
 58.2   be used.  If the Dodge Construction Systems Costs for Nursing 
 58.3   Homes becomes unavailable, the commissioner shall substitute the 
 58.4   index in subdivision 3f, or such other index as the secretary of 
 58.5   the health care financing administration may designate; 
 58.6      (2) the amount of allowed inflation to be applied to the 
 58.7   capital assets in paragraph (g), clauses (1) and (2), must be 
 58.8   computed separately; 
 58.9      (3) the amount of allowed inflation must be determined on 
 58.10  an annual basis, prorated on a monthly basis for partial years 
 58.11  and if the initial month of use is not determinable for a 
 58.12  capital asset, then one-half of that calendar year shall be used 
 58.13  for purposes of prorating; 
 58.14     (4) the amount of allowed inflation to be applied to the 
 58.15  capital assets in paragraph (g), clauses (1) and (2), must not 
 58.16  exceed 300 percent of the total capital assets in any one of 
 58.17  those clauses; and 
 58.18     (5) the allowed inflation must be computed starting with 
 58.19  the month following the nursing facility's most recent previous 
 58.20  effective date of sale or, if there has been no previous sale, 
 58.21  the month following the date of the nursing facility's initial 
 58.22  occupancy, and ending with the month preceding the effective 
 58.23  date of sale. 
 58.24     (j) If the historical cost of a capital asset is not 
 58.25  readily available for the date of the nursing facility's most 
 58.26  recent previous sale or if there has been no previous sale for 
 58.27  the date of the nursing facility's initial occupancy, then the 
 58.28  commissioner shall limit the total allowable debt and related 
 58.29  interest after sale to the extent recognized by the Medicare 
 58.30  intermediary after the sale.  For a nursing facility that has no 
 58.31  historical capital asset cost data available and does not have 
 58.32  allowable debt and interest calculated by the Medicare 
 58.33  intermediary, the commissioner shall use the historical cost of 
 58.34  capital asset data from the point in time for which capital 
 58.35  asset data is recorded in the nursing facility's audited 
 58.36  financial statements. 
 59.1      (k) The limitations in this subdivision apply only to debt 
 59.2   resulting from a sale of a nursing facility occurring after June 
 59.3   30, 1992, including debt assumed by the purchaser of the nursing 
 59.4   facility. 
 59.5      Sec. 31.  Minnesota Statutes 2000, section 256B.431, 
 59.6   subdivision 30, is amended to read: 
 59.7      Subd. 30.  [BED LAYAWAY AND DELICENSURE.] (a) For rate 
 59.8   years beginning on or after July 1, 2000, a nursing facility 
 59.9   reimbursed under this section which has placed beds on layaway 
 59.10  shall, for purposes of application of the downsizing incentive 
 59.11  in subdivision 3a, paragraph (d) (c), and calculation of the 
 59.12  rental per diem, have those beds given the same effect as if the 
 59.13  beds had been delicensed so long as the beds remain on layaway.  
 59.14  At the time of a layaway, a facility may change its single bed 
 59.15  election for use in calculating capacity days under Minnesota 
 59.16  Rules, part 9549.0060, subpart 11.  The property payment rate 
 59.17  increase shall be effective the first day of the month following 
 59.18  the month in which the layaway of the beds becomes effective 
 59.19  under section 144A.071, subdivision 4b. 
 59.20     (b) For rate years beginning on or after July 1, 2000, 
 59.21  notwithstanding any provision to the contrary under section 
 59.22  256B.434, a nursing facility reimbursed under that section which 
 59.23  has placed beds on layaway shall, for so long as the beds remain 
 59.24  on layaway, be allowed to: 
 59.25     (1) aggregate the applicable investment per bed limits 
 59.26  based on the number of beds licensed immediately prior to 
 59.27  entering the alternative payment system; 
 59.28     (2) retain or change the facility's single bed election for 
 59.29  use in calculating capacity days under Minnesota Rules, part 
 59.30  9549.0060, subpart 11; and 
 59.31     (3) establish capacity days based on the number of beds 
 59.32  immediately prior to the layaway and the number of beds after 
 59.33  the layaway. 
 59.34  The commissioner shall increase the facility's property payment 
 59.35  rate by the incremental increase in the rental per diem 
 59.36  resulting from the recalculation of the facility's rental per 
 60.1   diem applying only the changes resulting from the layaway of 
 60.2   beds and clauses (1), (2), and (3).  If a facility reimbursed 
 60.3   under section 256B.434 completes a moratorium exception project 
 60.4   after its base year, the base year property rate shall be the 
 60.5   moratorium project property rate.  The base year rate shall be 
 60.6   inflated by the factors in section 256B.434, subdivision 4, 
 60.7   paragraph (c).  The property payment rate increase shall be 
 60.8   effective the first day of the month following the month in 
 60.9   which the layaway of the beds becomes effective. 
 60.10     (c) If a nursing facility removes a bed from layaway status 
 60.11  in accordance with section 144A.071, subdivision 4b, the 
 60.12  commissioner shall establish capacity days based on the number 
 60.13  of licensed and certified beds in the facility not on layaway 
 60.14  and shall reduce the nursing facility's property payment rate in 
 60.15  accordance with paragraph (b). 
 60.16     (d) For the rate years beginning on or after July 1, 2000, 
 60.17  notwithstanding any provision to the contrary under section 
 60.18  256B.434, a nursing facility reimbursed under that section, 
 60.19  which has delicensed beds after July 1, 2000, by giving notice 
 60.20  of the delicensure to the commissioner of health according to 
 60.21  the notice requirements in section 144A.071, subdivision 4b, 
 60.22  shall be allowed to: 
 60.23     (1) aggregate the applicable investment per bed limits 
 60.24  based on the number of beds licensed immediately prior to 
 60.25  entering the alternative payment system; 
 60.26     (2) retain or change the facility's single bed election for 
 60.27  use in calculating capacity days under Minnesota Rules, part 
 60.28  9549.0060, subpart 11; and 
 60.29     (3) establish capacity days based on the number of beds 
 60.30  immediately prior to the delicensure and the number of beds 
 60.31  after the delicensure. 
 60.32  The commissioner shall increase the facility's property payment 
 60.33  rate by the incremental increase in the rental per diem 
 60.34  resulting from the recalculation of the facility's rental per 
 60.35  diem applying only the changes resulting from the delicensure of 
 60.36  beds and clauses (1), (2), and (3).  If a facility reimbursed 
 61.1   under section 256B.434 completes a moratorium exception project 
 61.2   after its base year, the base year property rate shall be the 
 61.3   moratorium project property rate.  The base year rate shall be 
 61.4   inflated by the factors in section 256B.434, subdivision 4, 
 61.5   paragraph (c).  The property payment rate increase shall be 
 61.6   effective the first day of the month following the month in 
 61.7   which the delicensure of the beds becomes effective. 
 61.8      (e) For nursing facilities reimbursed under this section or 
 61.9   section 256B.434, any beds placed on layaway shall not be 
 61.10  included in calculating facility occupancy as it pertains to 
 61.11  leave days defined in Minnesota Rules, part 9505.0415. 
 61.12     (f) For nursing facilities reimbursed under this section or 
 61.13  section 256B.434, the rental rate calculated after placing beds 
 61.14  on layaway may not be less than the rental rate prior to placing 
 61.15  beds on layaway. 
 61.16     (g) A nursing facility receiving a rate adjustment as a 
 61.17  result of this section shall comply with section 256B.47, 
 61.18  subdivision 2. 
 61.19     (h) A facility that does not utilize the space made 
 61.20  available as a result of bed layaway or delicensure under this 
 61.21  subdivision to reduce the number of beds per room or provide 
 61.22  more common space for nursing facility uses or perform other 
 61.23  activities related to the operation of the nursing facility 
 61.24  shall have its property rate increase calculated under this 
 61.25  subdivision reduced by the ratio of the square footage made 
 61.26  available that is not used for these purposes to the total 
 61.27  square footage made available as a result of bed layaway or 
 61.28  delicensure. 
 61.29     Sec. 32.  Minnesota Statutes 2001 Supplement, section 
 61.30  256B.431, subdivision 33, is amended to read: 
 61.31     Subd. 33.  [STAGED REDUCTION IN RATE DISPARITIES.] (a) For 
 61.32  the rate years beginning July 1, 2001, and July 1, 2002, the 
 61.33  commissioner shall adjust the operating payment rates for 
 61.34  low-rate nursing facilities reimbursed under this section or 
 61.35  section 256B.434.  
 61.36     (b) For the rate year beginning July 1, 2001, for each case 
 62.1   mix level, if the amount computed under subdivision 32 31 is 
 62.2   less than the amount in clause (1), the commissioner shall make 
 62.3   available the lesser of the amount in clause (1) or an increase 
 62.4   of ten percent over the rate in effect on June 30, 2001, as an 
 62.5   adjustment to the operating payment rate.  For the rate year 
 62.6   beginning July 1, 2002, for each case mix level, if the amount 
 62.7   computed under subdivision 32 31 is less than the amount in 
 62.8   clause (2), the commissioner shall make available the lesser of 
 62.9   the amount in clause (2) or an increase of ten percent over the 
 62.10  rate in effect on June 30, 2002, as an adjustment to the 
 62.11  operating payment rate.  For purposes of this subdivision, 
 62.12  nursing facilities shall be considered to be metro if they are 
 62.13  located in Anoka, Carver, Dakota, Hennepin, Olmsted, Ramsey, 
 62.14  Scott, or Washington counties; or in the cities of Moorhead or 
 62.15  Breckenridge; or in St. Louis county, north of Toivola and south 
 62.16  of Cook; or in Itasca county, east of a north south line two 
 62.17  miles west of Grand Rapids:  
 62.18     (1) Operating Payment Rate Target Level for July 1, 2001: 
 62.19      Case Mix Classification        Metro       Nonmetro
 62.20                A                    $ 76.00     $ 68.13
 62.21                B                    $ 83.40     $ 74.46
 62.22                C                    $ 91.67     $ 81.63
 62.23                D                    $ 99.51     $ 88.04
 62.24                E                    $107.46     $ 94.87
 62.25                F                    $107.96     $ 95.29
 62.26                G                    $114.67     $100.98
 62.27                H                    $126.99     $111.31
 62.28                I                    $131.42     $115.06
 62.29                J                    $138.34     $120.85
 62.30                K                    $152.26     $133.10
 62.31     (2) Operating Payment Rate Target Level for July 1, 2002: 
 62.32      Case Mix Classification        Metro       Nonmetro
 62.33                A                    $ 78.28     $ 70.51
 62.34                B                    $ 85.91     $ 77.16
 62.35                C                    $ 94.42     $ 84.62
 62.36                D                    $102.50     $ 91.42
 63.1                 E                    $110.68     $ 98.40
 63.2                 F                    $111.20     $ 98.84
 63.3                 G                    $118.11     $104.77
 63.4                 H                    $130.80     $115.64
 63.5                 I                    $135.38     $119.50
 63.6                 J                    $142.49     $125.38
 63.7                 K                    $156.85     $137.77
 63.8      Sec. 33.  Minnesota Statutes 2001 Supplement, section 
 63.9   256B.437, subdivision 3, is amended to read: 
 63.10     Subd. 3.  [APPLICATIONS FOR PLANNED CLOSURE OF NURSING 
 63.11  FACILITIES.] (a) By August 15, 2001, the commissioner of human 
 63.12  services shall implement and announce a program for closure or 
 63.13  partial closure of nursing facilities.  Names and identifying 
 63.14  information provided in response to the announcement shall 
 63.15  remain private unless approved, according to the timelines 
 63.16  established in the plan.  The announcement must specify: 
 63.17     (1) the criteria in subdivision 4 that will be used by the 
 63.18  commissioner to approve or reject applications; 
 63.19     (2) a requirement for the submission of a letter of intent 
 63.20  before the submission of an application; 
 63.21     (3) the information that must accompany an application; and 
 63.22     (4) (3) that applications may combine planned closure rate 
 63.23  adjustments with moratorium exception funding, in which case a 
 63.24  single application may serve both purposes. 
 63.25  Between August 1, 2001, and June 30, 2003, the commissioner may 
 63.26  approve planned closures of up to 5,140 nursing facility beds, 
 63.27  less the number of licensed beds delicensed in facilities that 
 63.28  close during the same time period without approved closure plans 
 63.29  or that have notified the commissioner of health of their intent 
 63.30  to close without an approved closure plan. 
 63.31     (b) A facility or facilities reimbursed under section 
 63.32  256B.431 or 256B.434 with a closure plan approved by the 
 63.33  commissioner under subdivision 5 may assign a planned closure 
 63.34  rate adjustment to another facility or facilities that are not 
 63.35  closing or in the case of a partial closure, to the facility 
 63.36  undertaking the partial closure.  A facility may also elect to 
 64.1   have a planned closure rate adjustment shared equally by the 
 64.2   five nursing facilities with the lowest total operating payment 
 64.3   rates in the state development region designated under section 
 64.4   462.385, in which the facility that is closing is located.  The 
 64.5   planned closure rate adjustment must be calculated under 
 64.6   subdivision 6.  Facilities that close delicense beds without a 
 64.7   closure plan, or whose closure plan is not approved by the 
 64.8   commissioner, are not eligible to assign a planned closure rate 
 64.9   adjustment under subdivision 6, unless they are delicensing five 
 64.10  or fewer beds, or less than six percent of their total licensed 
 64.11  bed capacity, whichever is greater, and are located in a county 
 64.12  in the top three quartiles of beds per 1,000 persons aged 65 or 
 64.13  older.  Facilities delicensing five or fewer beds or less than 
 64.14  six percent of their total licensed bed capacity, whichever is 
 64.15  greater, in any three-month period without an approved closure 
 64.16  plan are eligible to assign the amount calculated under 
 64.17  subdivision 6 to themselves.  If a facility is delicensing the 
 64.18  greater of six or more beds, or six percent or more of its total 
 64.19  licensed bed capacity, and does not have an approved closure 
 64.20  plan or is not eligible for the adjustment under subdivision 6, 
 64.21  the commissioner shall calculate the amount the facility would 
 64.22  have been eligible to assign under subdivision 6, and shall use 
 64.23  this amount to provide equal rate adjustments to the five 
 64.24  nursing facilities with the lowest total operating payment rates 
 64.25  in the state development region designated under section 
 64.26  462.385, in which the facility that delicensed beds is located.  
 64.27  The commissioner shall calculate the amount the facility would 
 64.28  have been eligible to assign under subdivision 6, and shall use 
 64.29  this amount to provide equal rate adjustments to the five 
 64.30  nursing facilities with the lowest total operating payment rates 
 64.31  in the state development region designated under section 
 64.32  462.385, in which the facility that closed is located. 
 64.33     (c) To be considered for approval, an application must 
 64.34  include: 
 64.35     (1) a description of the proposed closure plan, which must 
 64.36  include identification of the facility or facilities to receive 
 65.1   a planned closure rate adjustment and the amount and timing of a 
 65.2   planned closure rate adjustment proposed for each facility; 
 65.3      (2) the proposed timetable for any proposed closure, 
 65.4   including the proposed dates for announcement to residents, 
 65.5   commencement of closure, and completion of closure; 
 65.6      (3) if available, the proposed relocation plan for current 
 65.7   residents of any facility designated for closure.  The proposed 
 65.8   If a relocation plan is not available, the application must 
 65.9   include a statement agreeing to develop a relocation plan must 
 65.10  be designed to comply with all applicable state and federal 
 65.11  statutes and regulations, including, but not limited to, section 
 65.12  144A.161; 
 65.13     (4) a description of the relationship between the nursing 
 65.14  facility that is proposed for closure and the nursing facility 
 65.15  or facilities proposed to receive the planned closure rate 
 65.16  adjustment.  If these facilities are not under common ownership, 
 65.17  copies of any contracts, purchase agreements, or other documents 
 65.18  establishing a relationship or proposed relationship must be 
 65.19  provided; 
 65.20     (5) documentation, in a format approved by the 
 65.21  commissioner, that all the nursing facilities receiving a 
 65.22  planned closure rate adjustment under the plan have accepted 
 65.23  joint and several liability for recovery of overpayments under 
 65.24  section 256B.0641, subdivision 2, for the facilities designated 
 65.25  for closure under the plan; and 
 65.26     (6) an explanation of how the application coordinates with 
 65.27  planning efforts under subdivision 2.  If the planning group 
 65.28  does not support a level of nursing facility closures that the 
 65.29  commissioner considers to be reasonable, the commissioner may 
 65.30  approve a planned closure proposal without its support. 
 65.31     (d) The application must address the criteria listed in 
 65.32  subdivision 4. 
 65.33     Sec. 34.  Minnesota Statutes 2001 Supplement, section 
 65.34  256B.438, subdivision 1, is amended to read: 
 65.35     Subdivision 1.  [SCOPE.] This section establishes the 
 65.36  method and criteria used to determine resident reimbursement 
 66.1   classifications based upon the assessments of residents of 
 66.2   nursing homes and boarding care homes whose payment rates are 
 66.3   established under section 256B.431, 256B.434, or 256B.435.  
 66.4   Resident reimbursement classifications shall be established 
 66.5   according to the 34 group, resource utilization groups, version 
 66.6   III or RUG-III model as described in section 144.0724.  
 66.7   Reimbursement classifications established under this section 
 66.8   shall be implemented after June 30, 2002, but no later than 
 66.9   January 1, 2003.  Reimbursement classifications established 
 66.10  under this section shall be implemented no earlier than six 
 66.11  weeks after the commissioner mails notices of payment rates to 
 66.12  the facilities. 
 66.13     Sec. 35.  Minnesota Statutes 2000, section 256B.5012, 
 66.14  subdivision 2, is amended to read: 
 66.15     Subd. 2.  [OPERATING PAYMENT RATE.] (a) The operating 
 66.16  payment rate equals the facility's total payment rate in effect 
 66.17  on September 30, 2000, minus the property rate.  The operating 
 66.18  payment rate includes the special operating rate and the 
 66.19  efficiency incentive in effect as of September 30, 2000.  Within 
 66.20  the limits of appropriations specifically for this purpose, the 
 66.21  operating payment shall be increased for each rate year by the 
 66.22  annual percentage change in the Employment Cost Index for 
 66.23  Private Industry Workers - Total Compensation, as forecasted by 
 66.24  the commissioner of finance's economic consultant, in the second 
 66.25  quarter of the calendar year preceding the start of each rate 
 66.26  year.  In the case of the initial rate year beginning October 1, 
 66.27  2000, and continuing through December 31, 2001, the percentage 
 66.28  change shall be based on the percentage change in the Employment 
 66.29  Cost Index for Private Industry Workers - Total Compensation for 
 66.30  the 15-month period beginning October 1, 2000, as forecast by 
 66.31  Data Resources, Inc., in the first quarter of 2000. 
 66.32     (b) Effective October 1, 2000, the operating payment rate 
 66.33  shall be adjusted to reflect an occupancy rate equal to 100 
 66.34  percent of the facility's capacity days as of September 30, 2000.
 66.35     (c) Effective July 1, 2001, the operating payment rate 
 66.36  shall be adjusted for the increases in the department of health 
 67.1   licensing fees that were adopted in Laws 2001, First Special 
 67.2   Session chapter 9, article 1, section 30. 
 67.3      Sec. 36.  Minnesota Statutes 2001 Supplement, section 
 67.4   256B.76, is amended to read: 
 67.5      256B.76 [PHYSICIAN AND DENTAL REIMBURSEMENT.] 
 67.6      (a) Effective for services rendered on or after October 1, 
 67.7   1992, the commissioner shall make payments for physician 
 67.8   services as follows: 
 67.9      (1) payment for level one Health Care Finance 
 67.10  Administration's common procedural coding system (HCPCS) codes 
 67.11  titled "office and other outpatient services," "preventive 
 67.12  medicine new and established patient," "delivery, antepartum, 
 67.13  and postpartum care," "critical care," cesarean delivery and 
 67.14  pharmacologic management provided to psychiatric patients, and 
 67.15  HCPCS level three codes for enhanced services for prenatal high 
 67.16  risk, shall be paid at the lower of (i) submitted charges, or 
 67.17  (ii) 25 percent above the rate in effect on June 30, 1992.  If 
 67.18  the rate on any procedure code within these categories is 
 67.19  different than the rate that would have been paid under the 
 67.20  methodology in section 256B.74, subdivision 2, then the larger 
 67.21  rate shall be paid; 
 67.22     (2) payments for all other services shall be paid at the 
 67.23  lower of (i) submitted charges, or (ii) 15.4 percent above the 
 67.24  rate in effect on June 30, 1992; 
 67.25     (3) all physician rates shall be converted from the 50th 
 67.26  percentile of 1982 to the 50th percentile of 1989, less the 
 67.27  percent in aggregate necessary to equal the above increases 
 67.28  except that payment rates for home health agency services shall 
 67.29  be the rates in effect on September 30, 1992; 
 67.30     (4) effective for services rendered on or after January 1, 
 67.31  2000, payment rates for physician and professional services 
 67.32  shall be increased by three percent over the rates in effect on 
 67.33  December 31, 1999, except for home health agency and family 
 67.34  planning agency services; and 
 67.35     (5) the increases in clause (4) shall be implemented 
 67.36  January 1, 2000, for managed care. 
 68.1      (b) Effective for services rendered on or after October 1, 
 68.2   1992, the commissioner shall make payments for dental services 
 68.3   as follows: 
 68.4      (1) dental services shall be paid at the lower of (i) 
 68.5   submitted charges, or (ii) 25 percent above the rate in effect 
 68.6   on June 30, 1992; 
 68.7      (2) dental rates shall be converted from the 50th 
 68.8   percentile of 1982 to the 50th percentile of 1989, less the 
 68.9   percent in aggregate necessary to equal the above increases; 
 68.10     (3) effective for services rendered on or after January 1, 
 68.11  2000, payment rates for dental services shall be increased by 
 68.12  three percent over the rates in effect on December 31, 1999; 
 68.13     (4) the commissioner shall award grants to community 
 68.14  clinics or other nonprofit community organizations, political 
 68.15  subdivisions, professional associations, or other organizations 
 68.16  that demonstrate the ability to provide dental services 
 68.17  effectively to public program recipients.  Grants may be used to 
 68.18  fund the costs related to coordinating access for recipients, 
 68.19  developing and implementing patient care criteria, upgrading or 
 68.20  establishing new facilities, acquiring furnishings or equipment, 
 68.21  recruiting new providers, or other development costs that will 
 68.22  improve access to dental care in a region.  In awarding grants, 
 68.23  the commissioner shall give priority to applicants that plan to 
 68.24  serve areas of the state in which the number of dental providers 
 68.25  is not currently sufficient to meet the needs of recipients of 
 68.26  public programs or uninsured individuals.  The commissioner 
 68.27  shall consider the following in awarding the grants: 
 68.28     (i) potential to successfully increase access to an 
 68.29  underserved population; 
 68.30     (ii) the ability to raise matching funds; 
 68.31     (iii) the long-term viability of the project to improve 
 68.32  access beyond the period of initial funding; 
 68.33     (iv) the efficiency in the use of the funding; and 
 68.34     (v) the experience of the proposers in providing services 
 68.35  to the target population. 
 68.36     The commissioner shall monitor the grants and may terminate 
 69.1   a grant if the grantee does not increase dental access for 
 69.2   public program recipients.  The commissioner shall consider 
 69.3   grants for the following: 
 69.4      (i) implementation of new programs or continued expansion 
 69.5   of current access programs that have demonstrated success in 
 69.6   providing dental services in underserved areas; 
 69.7      (ii) a pilot program for utilizing hygienists outside of a 
 69.8   traditional dental office to provide dental hygiene services; 
 69.9   and 
 69.10     (iii) a program that organizes a network of volunteer 
 69.11  dentists, establishes a system to refer eligible individuals to 
 69.12  volunteer dentists, and through that network provides donated 
 69.13  dental care services to public program recipients or uninsured 
 69.14  individuals; 
 69.15     (5) beginning October 1, 1999, the payment for tooth 
 69.16  sealants and fluoride treatments shall be the lower of (i) 
 69.17  submitted charge, or (ii) 80 percent of median 1997 charges; 
 69.18     (6) the increases listed in clauses (3) and (5) shall be 
 69.19  implemented January 1, 2000, for managed care; and 
 69.20     (7) effective for services provided on or after January 1, 
 69.21  2002, payment for diagnostic examinations and dental x-rays 
 69.22  provided to children under age 21 shall be the lower of (i) the 
 69.23  submitted charge, or (ii) 85 percent of median 1999 charges.  
 69.24     (c) Effective for dental services rendered on or after 
 69.25  January 1, 2002, the commissioner may, within the limits of 
 69.26  available appropriation, increase reimbursements to dentists and 
 69.27  dental clinics deemed by the commissioner to be critical access 
 69.28  dental providers.  Reimbursement to a critical access dental 
 69.29  provider may be increased by not more than 50 percent above the 
 69.30  reimbursement rate that would otherwise be paid to the 
 69.31  provider.  Payments to health plan companies shall be adjusted 
 69.32  to reflect increased reimbursements to critical access dental 
 69.33  providers as approved by the commissioner.  In determining which 
 69.34  dentists and dental clinics shall be deemed critical access 
 69.35  dental providers, the commissioner shall review: 
 69.36     (1) the utilization rate in the service area in which the 
 70.1   dentist or dental clinic operates for dental services to 
 70.2   patients covered by medical assistance, general assistance 
 70.3   medical care, or MinnesotaCare as their primary source of 
 70.4   coverage; 
 70.5      (2) the level of services provided by the dentist or dental 
 70.6   clinic to patients covered by medical assistance, general 
 70.7   assistance medical care, or MinnesotaCare as their primary 
 70.8   source of coverage; and 
 70.9      (3) whether the level of services provided by the dentist 
 70.10  or dental clinic is critical to maintaining adequate levels of 
 70.11  patient access within the service area. 
 70.12  In the absence of a critical access dental provider in a service 
 70.13  area, the commissioner may designate a dentist or dental clinic 
 70.14  as a critical access dental provider if the dentist or dental 
 70.15  clinic is willing to provide care to patients covered by medical 
 70.16  assistance, general assistance medical care, or MinnesotaCare at 
 70.17  a level which significantly increases access to dental care in 
 70.18  the service area. 
 70.19     (d) Effective July 1, 2001, the medical assistance rates 
 70.20  for outpatient mental health services provided by an entity that 
 70.21  operates: 
 70.22     (1) a Medicare-certified comprehensive outpatient 
 70.23  rehabilitation facility; and 
 70.24     (2) a facility that was certified prior to January 1, 1993, 
 70.25  with at least 33 percent of the clients receiving rehabilitation 
 70.26  services in the most recent calendar year are medical assistance 
 70.27  recipients, will be increased by 38 percent, when those services 
 70.28  are provided within the comprehensive outpatient rehabilitation 
 70.29  facility and provided to residents of nursing facilities owned 
 70.30  by the entity. 
 70.31     (e) An entity that operates both a Medicare certified 
 70.32  comprehensive outpatient rehabilitation facility and a facility 
 70.33  which was certified prior to January 1, 1993, that is licensed 
 70.34  under Minnesota Rules, parts 9570.2000 to 9570.3600, and for 
 70.35  whom at least 33 percent of the clients receiving rehabilitation 
 70.36  services in the most recent calendar year are medical assistance 
 71.1   recipients, shall be reimbursed by the commissioner for 
 71.2   rehabilitation services at rates that are 38 percent greater 
 71.3   than the maximum reimbursement rate allowed under paragraph (a), 
 71.4   clause (2), when those services are (1) provided within the 
 71.5   comprehensive outpatient rehabilitation facility and (2) 
 71.6   provided to residents of nursing facilities owned by the entity. 
 71.7      Sec. 37.  Minnesota Statutes 2001 Supplement, section 
 71.8   626.556, subdivision 10i, is amended to read: 
 71.9      Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 71.10  DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 71.11  SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
 71.12  provided under paragraph (e), an individual or facility that the 
 71.13  commissioner of human services, a local social service agency, 
 71.14  or the commissioner of children, families, and learning 
 71.15  determines has maltreated a child, an interested person acting 
 71.16  on behalf of the child, regardless of the determination, who 
 71.17  contests the investigating agency's final determination 
 71.18  regarding maltreatment, may request the investigating agency to 
 71.19  reconsider its final determination regarding maltreatment.  The 
 71.20  request for reconsideration must be submitted in writing to the 
 71.21  investigating agency within 15 calendar days after receipt of 
 71.22  notice of the final determination regarding maltreatment or, if 
 71.23  the request is made by an interested person who is not entitled 
 71.24  to notice, within 15 days after receipt of the notice by the 
 71.25  parent or guardian of the child.  Effective January 1, 2002, an 
 71.26  individual who was determined to have maltreated a child under 
 71.27  this section and who was disqualified on the basis of serious or 
 71.28  recurring maltreatment under section 245A.04, subdivision 3d, 
 71.29  may request reconsideration of the maltreatment determination 
 71.30  and the disqualification.  The request for reconsideration of 
 71.31  the maltreatment determination and the disqualification must be 
 71.32  submitted within 30 calendar days of the individual's receipt of 
 71.33  the notice of disqualification under section 245A.04, 
 71.34  subdivision 3a. 
 71.35     (b) Except as provided under paragraphs (e) and (f), if the 
 71.36  investigating agency denies the request or fails to act upon the 
 72.1   request within 15 calendar days after receiving the request for 
 72.2   reconsideration, the person or facility entitled to a fair 
 72.3   hearing under section 256.045 may submit to the commissioner of 
 72.4   human services or the commissioner of children, families, and 
 72.5   learning a written request for a hearing under that section.  
 72.6   Section 256.045 also governs hearings requested to contest a 
 72.7   final determination of the commissioner of children, families, 
 72.8   and learning.  For reports involving maltreatment of a child in 
 72.9   a facility, an interested person acting on behalf of the child 
 72.10  may request a review by the child maltreatment review panel 
 72.11  under section 256.022 if the investigating agency denies the 
 72.12  request or fails to act upon the request or if the interested 
 72.13  person contests a reconsidered determination.  The investigating 
 72.14  agency shall notify persons who request reconsideration of their 
 72.15  rights under this paragraph.  The request must be submitted in 
 72.16  writing to the review panel and a copy sent to the investigating 
 72.17  agency within 30 calendar days of receipt of notice of a denial 
 72.18  of a request for reconsideration or of a reconsidered 
 72.19  determination.  The request must specifically identify the 
 72.20  aspects of the agency determination with which the person is 
 72.21  dissatisfied. 
 72.22     (c) If, as a result of a reconsideration or review, the 
 72.23  investigating agency changes the final determination of 
 72.24  maltreatment, that agency shall notify the parties specified in 
 72.25  subdivisions 10b, 10d, and 10f. 
 72.26     (d) Except as provided under paragraph (f), if an 
 72.27  individual or facility contests the investigating agency's final 
 72.28  determination regarding maltreatment by requesting a fair 
 72.29  hearing under section 256.045, the commissioner of human 
 72.30  services shall assure that the hearing is conducted and a 
 72.31  decision is reached within 90 days of receipt of the request for 
 72.32  a hearing.  The time for action on the decision may be extended 
 72.33  for as many days as the hearing is postponed or the record is 
 72.34  held open for the benefit of either party. 
 72.35     (e) Effective January 1, 2002, if an individual was 
 72.36  disqualified under section 245A.04, subdivision 3d, on the basis 
 73.1   of a determination of maltreatment, which was serious or 
 73.2   recurring, and the individual has requested reconsideration of 
 73.3   the maltreatment determination under paragraph (a) and requested 
 73.4   reconsideration of the disqualification under section 245A.04, 
 73.5   subdivision 3b, reconsideration of the maltreatment 
 73.6   determination and reconsideration of the disqualification shall 
 73.7   be consolidated into a single reconsideration.  If 
 73.8   reconsideration of the maltreatment determination is denied or 
 73.9   if the disqualification is not set aside or rescinded under 
 73.10  section 245A.04, subdivision 3b, the individual may request a 
 73.11  fair hearing under section 256.045.  If an individual 
 73.12  disqualified on the basis of a determination of maltreatment, 
 73.13  which was serious or recurring requests a fair hearing under 
 73.14  paragraph (b) on the maltreatment and the disqualification, the 
 73.15  scope of the fair hearing shall include both the maltreatment 
 73.16  determination and the disqualification. 
 73.17     (f) Effective January 1, 2002, if a maltreatment 
 73.18  determination or a disqualification based on serious or 
 73.19  recurring maltreatment is the basis for a denial of a license 
 73.20  under section 245A.05 or a licensing sanction under section 
 73.21  245A.07, the license holder has the right to a contested case 
 73.22  hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
 73.23  1400.8612 and successor rules.  As provided for under section 
 73.24  245A.08, subdivision 2a, the scope of the contested case hearing 
 73.25  shall include the maltreatment determination, disqualification, 
 73.26  and licensing sanction or denial of a license.  In such cases, a 
 73.27  fair hearing regarding the maltreatment determination shall not 
 73.28  be conducted under paragraph (b).  If the disqualified subject 
 73.29  is an individual other than the license holder and upon whom a 
 73.30  background study must be conducted under section 245A.04, 
 73.31  subdivision 3, the hearings of all parties may be consolidated 
 73.32  into a single contested case hearing upon consent of all parties 
 73.33  and the administrative law judge. 
 73.34     (g) For purposes of this subdivision, "interested person 
 73.35  acting on behalf of the child" means a parent or legal guardian; 
 73.36  stepparent; grandparent; guardian ad litem; adult stepbrother, 
 74.1   stepsister, or sibling; or adult aunt or uncle; unless the 
 74.2   person has been determined to be the perpetrator of the 
 74.3   maltreatment. 
 74.4      Sec. 38.  Minnesota Statutes 2000, section 626.557, 
 74.5   subdivision 3a, is amended to read: 
 74.6      Subd. 3a.  [REPORT NOT REQUIRED.] The following events are 
 74.7   not required to be reported under this section:  
 74.8      (a) A circumstance where federal law specifically prohibits 
 74.9   a person from disclosing patient identifying information in 
 74.10  connection with a report of suspected maltreatment, unless the 
 74.11  vulnerable adult, or the vulnerable adult's guardian, 
 74.12  conservator, or legal representative, has consented to 
 74.13  disclosure in a manner which conforms to federal requirements.  
 74.14  Facilities whose patients or residents are covered by such a 
 74.15  federal law shall seek consent to the disclosure of suspected 
 74.16  maltreatment from each patient or resident, or a guardian, 
 74.17  conservator, or legal representative, upon the patient's or 
 74.18  resident's admission to the facility.  Persons who are 
 74.19  prohibited by federal law from reporting an incident of 
 74.20  suspected maltreatment shall immediately seek consent to make a 
 74.21  report.  
 74.22     (b) Verbal or physical aggression occurring between 
 74.23  patients, residents, or clients of a facility, or self-abusive 
 74.24  behavior by these persons does not constitute abuse unless the 
 74.25  behavior causes serious harm.  The operator of the facility or a 
 74.26  designee shall record incidents of aggression and self-abusive 
 74.27  behavior to facilitate review by licensing agencies and county 
 74.28  and local welfare agencies. 
 74.29     (c) Accidents as defined in section 626.5572, subdivision 3.
 74.30     (d) Events occurring in a facility that result from an 
 74.31  individual's single mistake error in the provision of 
 74.32  therapeutic conduct to a vulnerable adult, as defined provided 
 74.33  in section 626.5572, subdivision 17, paragraph (c), clause (4). 
 74.34     (e) Nothing in this section shall be construed to require a 
 74.35  report of financial exploitation, as defined in section 
 74.36  626.5572, subdivision 9, solely on the basis of the transfer of 
 75.1   money or property by gift or as compensation for services 
 75.2   rendered. 
 75.3      Sec. 39.  Minnesota Statutes 2001 Supplement, section 
 75.4   626.557, subdivision 9d, is amended to read: 
 75.5      Subd. 9d.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 75.6   DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 75.7   SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
 75.8   provided under paragraph (e), any individual or facility which a 
 75.9   lead agency determines has maltreated a vulnerable adult, or the 
 75.10  vulnerable adult or an interested person acting on behalf of the 
 75.11  vulnerable adult, regardless of the lead agency's determination, 
 75.12  who contests the lead agency's final disposition of an 
 75.13  allegation of maltreatment, may request the lead agency to 
 75.14  reconsider its final disposition.  The request for 
 75.15  reconsideration must be submitted in writing to the lead agency 
 75.16  within 15 calendar days after receipt of notice of final 
 75.17  disposition or, if the request is made by an interested person 
 75.18  who is not entitled to notice, within 15 days after receipt of 
 75.19  the notice by the vulnerable adult or the vulnerable adult's 
 75.20  legal guardian.  An individual who was determined to have 
 75.21  maltreated a vulnerable adult under this section and who was 
 75.22  disqualified on the basis of serious or recurring maltreatment 
 75.23  under section 245A.04, subdivision 3d, may request 
 75.24  reconsideration of the maltreatment determination and the 
 75.25  disqualification.  The request for reconsideration of the 
 75.26  maltreatment determination and the disqualification must be 
 75.27  submitted within 30 calendar days of the individual's receipt of 
 75.28  the notice of disqualification under section 245A.04, 
 75.29  subdivision 3a. 
 75.30     (b) Except as provided under paragraphs (e) and (f), if the 
 75.31  lead agency denies the request or fails to act upon the request 
 75.32  within 15 calendar days after receiving the request for 
 75.33  reconsideration, the person or facility entitled to a fair 
 75.34  hearing under section 256.045, may submit to the commissioner of 
 75.35  human services a written request for a hearing under that 
 75.36  statute.  The vulnerable adult, or an interested person acting 
 76.1   on behalf of the vulnerable adult, may request a review by the 
 76.2   vulnerable adult maltreatment review panel under section 256.021 
 76.3   if the lead agency denies the request or fails to act upon the 
 76.4   request, or if the vulnerable adult or interested person 
 76.5   contests a reconsidered disposition.  The lead agency shall 
 76.6   notify persons who request reconsideration of their rights under 
 76.7   this paragraph.  The request must be submitted in writing to the 
 76.8   review panel and a copy sent to the lead agency within 30 
 76.9   calendar days of receipt of notice of a denial of a request for 
 76.10  reconsideration or of a reconsidered disposition.  The request 
 76.11  must specifically identify the aspects of the agency 
 76.12  determination with which the person is dissatisfied.  
 76.13     (c) If, as a result of a reconsideration or review, the 
 76.14  lead agency changes the final disposition, it shall notify the 
 76.15  parties specified in subdivision 9c, paragraph (d). 
 76.16     (d) For purposes of this subdivision, "interested person 
 76.17  acting on behalf of the vulnerable adult" means a person 
 76.18  designated in writing by the vulnerable adult to act on behalf 
 76.19  of the vulnerable adult, or a legal guardian or conservator or 
 76.20  other legal representative, a proxy or health care agent 
 76.21  appointed under chapter 145B or 145C, or an individual who is 
 76.22  related to the vulnerable adult, as defined in section 245A.02, 
 76.23  subdivision 13. 
 76.24     (e) If an individual was disqualified under section 
 76.25  245A.04, subdivision 3d, on the basis of a determination of 
 76.26  maltreatment, which was serious or recurring, and the individual 
 76.27  has requested reconsideration of the maltreatment determination 
 76.28  under paragraph (a) and reconsideration of the disqualification 
 76.29  under section 245A.04, subdivision 3b, reconsideration of the 
 76.30  maltreatment determination and requested reconsideration of the 
 76.31  disqualification shall be consolidated into a single 
 76.32  reconsideration.  If reconsideration of the maltreatment 
 76.33  determination is denied or if the disqualification is not set 
 76.34  aside or rescinded under section 245A.04, subdivision 3b, the 
 76.35  individual may request a fair hearing under section 256.045.  If 
 76.36  an individual who was disqualified on the basis of serious or 
 77.1   recurring maltreatment requests a fair hearing under paragraph 
 77.2   (b) on the maltreatment and the disqualification, the scope of 
 77.3   the fair hearing shall include both the maltreatment 
 77.4   determination and the disqualification. 
 77.5      (f) If a maltreatment determination or a disqualification 
 77.6   based on serious or recurring maltreatment is the basis for a 
 77.7   denial of a license under section 245A.05 or a licensing 
 77.8   sanction under section 245A.07, the license holder has the right 
 77.9   to a contested case hearing under chapter 14 and Minnesota 
 77.10  Rules, parts 1400.8510 to 1400.8612 and successor rules.  As 
 77.11  provided for under section 245A.08, the scope of the contested 
 77.12  case hearing shall include the maltreatment determination, 
 77.13  disqualification, and licensing sanction or denial of a 
 77.14  license.  In such cases, a fair hearing shall not be conducted 
 77.15  under paragraph (b).  If the disqualified subject is an 
 77.16  individual other than the license holder and upon whom a 
 77.17  background study must be conducted under section 245A.04, 
 77.18  subdivision 3, the hearings of all parties may be consolidated 
 77.19  into a single contested case hearing upon consent of all parties 
 77.20  and the administrative law judge. 
 77.21     (g) Until August 1, 2002, an individual or facility that 
 77.22  was determined by the commissioner of human services or the 
 77.23  commissioner of health to be responsible for neglect under 
 77.24  section 626.5572, subdivision 17, after October 1, 1995, and 
 77.25  before August 1, 2001, that believes that the finding of neglect 
 77.26  does not meet an amended definition of neglect may request a 
 77.27  reconsideration of the determination of neglect.  The 
 77.28  commissioner of human services or the commissioner of health 
 77.29  shall mail a notice to the last known address of individuals who 
 77.30  are eligible to seek this reconsideration.  The request for 
 77.31  reconsideration must state how the established findings no 
 77.32  longer meet the elements of the definition of neglect.  The 
 77.33  commissioner shall review the request for reconsideration and 
 77.34  make a determination within 15 calendar days.  The 
 77.35  commissioner's decision on this reconsideration is the final 
 77.36  agency action. 
 78.1      (1) For purposes of compliance with the data destruction 
 78.2   schedule under subdivision 12b, paragraph (d), when a finding of 
 78.3   substantiated maltreatment has been changed as a result of a 
 78.4   reconsideration under this paragraph, the date of the original 
 78.5   finding of a substantiated maltreatment must be used to 
 78.6   calculate the destruction date. 
 78.7      (2) For purposes of any background studies under section 
 78.8   245A.04, when a determination of substantiated maltreatment has 
 78.9   been changed as a result of a reconsideration under this 
 78.10  paragraph, any prior disqualification of the individual under 
 78.11  section 245A.04 that was based on this determination of 
 78.12  maltreatment shall be rescinded, and for future background 
 78.13  studies under section 245A.04 the commissioner must not use the 
 78.14  previous determination of substantiated maltreatment as a basis 
 78.15  for disqualification or as a basis for referring the 
 78.16  individual's maltreatment history to a health-related licensing 
 78.17  board under section 245A.04, subdivision 3d, paragraph (b). 
 78.18     Sec. 40.  [REPEALER.] 
 78.19     Minnesota Statutes 2000, section 147B.01, subdivisions 8 
 78.20  and 15; and Minnesota Statutes 2001 Supplement, section 
 78.21  256B.0621, subdivision 1, are repealed.