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HF 1508

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/15/2017 01:00pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to human services; modifying certain provisions governing child care
licensing; requiring reports; amending Minnesota Statutes 2016, sections 13.46,
subdivision 4; 65A.30, subdivision 2; 245A.02, subdivision 2b; 245A.06,
subdivisions 2, 8; 245A.07, subdivision 5; 256.01, subdivision 2; proposing coding
for new law in Minnesota Statutes, chapter 245A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 13.46, subdivision 4, is amended to read:


Subd. 4.

Licensing data.

(a) As used in this subdivision:

(1) "licensing data" are all data collected, maintained, used, or disseminated by the
welfare system pertaining to persons licensed or registered or who apply for licensure or
registration or who formerly were licensed or registered under the authority of the
commissioner of human services;

(2) "client" means a person who is receiving services from a licensee or from an applicant
for licensure; and

(3) "personal and personal financial data" are Social Security numbers, identity of and
letters of reference, insurance information, reports from the Bureau of Criminal
Apprehension, health examination reports, and social/home studies.

(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license
holders, and former licensees are public: name, address, telephone number of licensees,
date of receipt of a completed application, dates of licensure, licensed capacity, type of
client preferred, variances granted, record of training and education in child care and child
development, type of dwelling, name and relationship of other family members, previous
license history, class of license, the existence and status of complaints, and the number of
serious injuries to or deaths of individuals in the licensed program as reported to the
commissioner of human services, the local social services agency, or any other county
welfare agency. For purposes of this clause, a serious injury is one that deleted text beginis treateddeleted text endnew text begin requires
treatment
new text end by a physician.

(ii) new text beginExcept as provided in clause (6), new text endwhen a correction order, an order to forfeit a fine,
an order of license suspension, an order of temporary immediate suspension, an order of
license revocation, an order of license denial, or an order of conditional license has been
issued, or a complaint is resolved, the following data on current and former licensees and
applicants are public: the general nature of the complaint or allegations leading to the
temporary immediate suspension; the substance and investigative findings of the licensing
or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence
of settlement negotiations; the record of informal resolution of a licensing violation; orders
of hearing; findings of fact; conclusions of law; specifications of the final correction order,
fine, suspension, temporary immediate suspension, revocation, denial, or conditional license
contained in the record of licensing action; whether a fine has been paid; and the status of
any appeal of these actions.

(iii) When a license denial under section 245A.05 or a sanction under section 245A.07
is based on a determination that a license holder, applicant, or controlling individual is
responsible for maltreatment under section 626.556 or 626.557, the identity of the applicant,
license holder, or controlling individual as the individual responsible for maltreatment is
public data at the time of the issuance of the license denial or sanction.

(iv) When a license denial under section 245A.05 or a sanction under section 245A.07
is based on a determination that a license holder, applicant, or controlling individual is
disqualified under chapter 245C, the identity of the license holder, applicant, or controlling
individual as the disqualified individual and the reason for the disqualification are public
data at the time of the issuance of the licensing sanction or denial. If the applicant, license
holder, or controlling individual requests reconsideration of the disqualification and the
disqualification is affirmed, the reason for the disqualification and the reason to not set aside
the disqualification are public data.

(2) For applicants who withdraw their application prior to licensure or denial of a license,
the following data are public: the name of the applicant, the city and county in which the
applicant was seeking licensure, the dates of the commissioner's receipt of the initial
application and completed application, the type of license sought, and the date of withdrawal
of the application.

(3) new text beginExcept as provided in clause (6), new text endfor applicants who are denied a license, the following
data are public: the name and address of the applicant, the city and county in which the
applicant was seeking licensure, the dates of the commissioner's receipt of the initial
application and completed application, the type of license sought, the date of denial of the
application, the nature of the basis for the denial, the existence of settlement negotiations,
the record of informal resolution of a denial, orders of hearings, findings of fact, conclusions
of law, specifications of the final order of denial, and the status of any appeal of the denial.

(4) When maltreatment is substantiated under section 626.556 or 626.557 and the victim
and the substantiated perpetrator are affiliated with a program licensed under chapter 245A,
the commissioner of human services, local social services agency, or county welfare agency
may inform the license holder where the maltreatment occurred of the identity of the
substantiated perpetrator and the victim.

(5) Notwithstanding clause (1), for child foster care, only the name of the license holder
and the status of the license are public if the county attorney has requested that data otherwise
classified as public data under clause (1) be considered private data based on the best interests
of a child in placement in a licensed program.

new text begin (6)(i) This clause applies to providers of family day care or group family day care as
defined in Minnesota Rules, part 9502.0315.
new text end

new text begin (ii) If an order listed in clause (1), item (ii), or an order of denial listed in clause (3) is
issued, data listed in clauses (1), item (ii), and (3), are private data on individuals or nonpublic
data until a final decision, final order, or resolution is issued and time for appeal expires.
new text end

new text begin (iii) If an order listed in clause (1), item (ii), or an order of denial listed in clause (3) was
resolved in favor of the current or former licensees or applicants, the data listed in clauses
(1), item (ii), and (3), are private data on individuals or nonpublic data.
new text end

new text begin (iv) If an order listed in clause (1), item (ii), or an order of denial listed in clause (3) is
partially resolved in favor of the current or former licensees or applicants, data listed in
clause (1), item (ii), or (3) that is related to the portion of the order that was resolved in
favor of the current or former licensees or applicants are private data on individuals and
nonpublic data.
new text end

(c) The following are private data on individuals under section 13.02, subdivision 12,
or nonpublic data under section 13.02, subdivision 9: personal and personal financial data
on family day care program and family foster care program applicants and licensees and
their family members who provide services under the license.

(d) The following are private data on individuals: the identity of persons who have made
reports concerning licensees or applicants that appear in inactive investigative data, and the
records of clients or employees of the licensee or applicant for licensure whose records are
received by the licensing agency for purposes of review or in anticipation of a contested
matter. The names of reporters of complaints or alleged violations of licensing standards
under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged maltreatment
under sections 626.556 and 626.557, are confidential data and may be disclosed only as
provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.

(e) Data classified as private, confidential, nonpublic, or protected nonpublic under this
subdivision become public data if submitted to a court or administrative law judge as part
of a disciplinary proceeding in which there is a public hearing concerning a license which
has been suspended, immediately suspended, revoked, or denied.

(f) Data generated in the course of licensing investigations that relate to an alleged
violation of law are investigative data under subdivision 3.

(g) Data that are not public data collected, maintained, used, or disseminated under this
subdivision that relate to or are derived from a report as defined in section 626.556,
subdivision 2
, or 626.5572, subdivision 18, are subject to the destruction provisions of
sections 626.556, subdivision 11c, and 626.557, subdivision 12b.

(h) Upon request, not public data collected, maintained, used, or disseminated under
this subdivision that relate to or are derived from a report of substantiated maltreatment as
defined in section 626.556 or 626.557 may be exchanged with the Department of Health
for purposes of completing background studies pursuant to section 144.057 and with the
Department of Corrections for purposes of completing background studies pursuant to
section 241.021.

(i) Data on individuals collected according to licensing activities under chapters 245A
and 245C, data on individuals collected by the commissioner of human services according
to investigations under chapters 245A, 245B, 245C, and 245D, and sections 626.556 and
626.557 may be shared with the Department of Human Rights, the Department of Health,
the Department of Corrections, the ombudsman for mental health and developmental
disabilities, and the individual's professional regulatory board when there is reason to believe
that laws or standards under the jurisdiction of those agencies may have been violated or
the information may otherwise be relevant to the board's regulatory jurisdiction. Background
study data on an individual who is the subject of a background study under chapter 245C
for a licensed service for which the commissioner of human services is the license holder
may be shared with the commissioner and the commissioner's delegate by the licensing
division. Unless otherwise specified in this chapter, the identity of a reporter of alleged
maltreatment or licensing violations may not be disclosed.

(j) In addition to the notice of determinations required under section 626.556, subdivision
10f
, if the commissioner or the local social services agency has determined that an individual
is a substantiated perpetrator of maltreatment of a child based on sexual abuse, as defined
in section 626.556, subdivision 2, and the commissioner or local social services agency
knows that the individual is a person responsible for a child's care in another facility, the
commissioner or local social services agency shall notify the head of that facility of this
determination. The notification must include an explanation of the individual's available
appeal rights and the status of any appeal. If a notice is given under this paragraph, the
government entity making the notification shall provide a copy of the notice to the individual
who is the subject of the notice.

(k) All not public data collected, maintained, used, or disseminated under this subdivision
and subdivision 3 may be exchanged between the Department of Human Services, Licensing
Division, and the Department of Corrections for purposes of regulating services for which
the Department of Human Services and the Department of Corrections have regulatory
authority.

Sec. 2.

Minnesota Statutes 2016, section 65A.30, subdivision 2, is amended to read:


Subd. 2.

Prohibited underwriting practices.

No insurer shall refuse to renew, or decline
to offer or write, homeowner's insurance coverage solely because the property to be covered
houses day care services deleted text beginfor five or fewer childrendeleted text end.new text begin An insurer may require the purchase of
an additional liability or insurance rider as a condition of coverage.
new text end

Sec. 3.

Minnesota Statutes 2016, section 245A.02, subdivision 2b, is amended to read:


Subd. 2b.

Annual or annually.

new text begin(a) With the exception of paragraph (b), new text end"annual" or
"annually" means prior to or within the same month of the subsequent calendar year.

new text begin (b) For the purposes of section 245A.50, subdivisions 1 to 9, "annual" or "annually"
means during a licensing term, beginning with the effective date and ending the day before
the annual anniversary or expiration.
new text end

Sec. 4.

new text begin [245A.055] NOTIFICATION TO PROVIDER.
new text end

new text begin (a) If the county employee responsible for family child care and group family child care
licensing conducts a licensing inspection or conducts a home visit, the employee must
provide, before departure from the residence or facility, a written or electronic notification
to the licensee of any potential licensing violations noted. The notification must include the
condition that constitutes the violation, the action that must be taken to correct the violation,
and the time allowed to correct the violation. The commissioner shall only issue a licensing
violation for a potential licensing violation included in the notification.
new text end

new text begin (b) Providing this notification to the licensee does not relieve the county employee from
notifying the commissioner of the violation as required by statute and rule.
new text end

Sec. 5.

Minnesota Statutes 2016, section 245A.06, subdivision 2, is amended to read:


Subd. 2.

Reconsideration of correction orders.

new text begin(a) new text endIf the applicant or license holder
believes that the contents of the commissioner's correction order are in error, the applicant
or license holder may ask the Department of Human Services to reconsider the parts of the
correction order that are alleged to be in error. The request for reconsideration must be made
in writing and must be postmarked and sent to the commissioner within 20 calendar days
after receipt of the correction order by the applicant or license holder, and:

(1) specify the parts of the correction order that are alleged to be in error;

(2) explain why they are in error; and

(3) include documentation to support the allegation of error.

new text begin (b) new text endA request for reconsideration deleted text begindoes not staydeleted text endnew text begin staysnew text end any provisions or requirements of
the correction ordernew text begin pending the outcome of the appealnew text endnew text begin, including any requirement to post
a correction order
new text end. The commissioner's disposition of a request for reconsideration is deleted text beginfinal
and not
deleted text end subject to appeal under chapter 14.

new text begin (c) By January 1, 2018, and each year thereafter, the Department of Human Services
must report data to the chairs and ranking minority members of the legislative committees
with jurisdiction over human services policy from the previous year that includes:
new text end

new text begin (1) the number of licensed family child care provider appeals of correction orders to the
Department of Human Services;
new text end

new text begin (2) the number of correction order appeals by family child care providers that the
Department of Human Services grants; and
new text end

new text begin (3) the number of correction order appeals that the Department of Human Services
denies.
new text end

Sec. 6.

Minnesota Statutes 2016, section 245A.06, subdivision 8, is amended to read:


Subd. 8.

Requirement to post correction order.

new text begin(a) Except as provided in paragraph
(b),
new text endfor licensed family child care providers and child care centers, upon receipt of any
correction order or order of conditional license issued by the commissioner under this
section, and notwithstanding a pending request for reconsideration of the correction order
or order of conditional license by the license holder, the license holder shall post the
correction order or order of conditional license in a place that is conspicuous to the people
receiving services and all visitors to the facility for two years. When the correction order
or order of conditional license is accompanied by a maltreatment investigation memorandum
prepared under section 626.556 or 626.557, the investigation memoranda must be posted
with the correction order or order of conditional license.

new text begin (b) For licensed family day care or group family day care as defined in Minnesota Rules,
part 9502.0315, if an order listed in section 13.46, subdivision 4, paragraph (b), clause (1),
item (ii), or an order of denial listed in section 13.46, subdivision 4, paragraph (b), clause
(3), is issued, the provider shall not post the order or order of denial until a final decision,
final order, or resolution is issued and time for appeal expires. If the order listed in section
13.46, subdivision 4, paragraph (b), clause (1), item (ii), or an order of denial listed in section
13.46, subdivision 4, paragraph (b), clause (3), is resolved in favor of the current or former
licensees or applicants, the provider shall not post the order or order of denial.
new text end

Sec. 7.

Minnesota Statutes 2016, section 245A.07, subdivision 5, is amended to read:


Subd. 5.

Requirement to post licensing order or fine.

new text begin(a) Except as provided in
paragraph (b),
new text endfor licensed family child care providers and child care centers, upon receipt
of any order of license suspension, temporary immediate suspension, fine, or revocation
issued by the commissioner under this section, and notwithstanding a pending appeal of the
order of license suspension, temporary immediate suspension, fine, or revocation by the
license holder, the license holder shall post the order of license suspension, temporary
immediate suspension, fine, or revocation in a place that is conspicuous to the people
receiving services and all visitors to the facility for two years. When the order of license
suspension, temporary immediate suspension, fine, or revocation is accompanied by a
maltreatment investigation memorandum prepared under section 626.556 or 626.557, the
investigation memoranda must be posted with the order of license suspension, temporary
immediate suspension, fine, or revocation.

new text begin (b) For licensed family day care or group family day care as defined in Minnesota Rules,
part 9502.0315, if an order listed in section 13.46, subdivision 4, paragraph (b), clause (1),
item (ii), or an order of denial listed in section 13.46, subdivision 4, paragraph (b), clause
(3), is issued, the provider shall not post the order or order of denial until a final decision,
final order, or resolution is issued and time for appeal expires. If the order listed in section
13.46, subdivision 4, paragraph (b), clause (1), item (ii), or an order of denial listed in section
13.46, subdivision 4, paragraph (b), clause (3), is resolved in favor of the current or former
licensees or applicants, the provider shall not post the order or order of denial.
new text end

Sec. 8.

new text begin [245A.55] TRAINING AND CERTIFICATION FOR COUNTY LICENSING
STAFF ON FAMILY CHILD CARE AND GROUP FAMILY CHILD CARE
REQUIREMENTS.
new text end

new text begin (a) The commissioner must issue state certification and provide certification training
for county-designated family child care licensors responsible for supervising family child
care homes licensed under chapter 245A and Minnesota Rules, chapter 9502.
new text end

new text begin (b) Within the first two months of employment and before providing oversight and
inspection of license holders, county staff who license and inspect family child care and
group family child care programs must receive state certification and complete at least eight
hours of training on statutes, rules, and department policies related to the licensing and
regulation of family child care and group family child care programs. The department must
develop the training curriculum to ensure that all county staff who perform licensing and
inspection functions receive uniform training. Training must include the following:
new text end

new text begin (1) explicit instructions that county staff who license and perform inspections must apply
only statutes, rules, and department policies in the performance of staff's duties. Training
must reinforce that county staff are prohibited from imposing standards or requirements
that are not imposed by statute, rule, or department policy;
new text end

new text begin (2) the rights of license holders, including license holders' grievance and appeal rights.
Training must include information on the responsibility of the county staff to inform license
holders of the license holders' rights, including grievance and appeal rights; and
new text end

new text begin (3) the procedure for county staff to seek clarification from the department before issuing
a correction order or other notice of violation to a license holder if there is a dispute between
the license holder and the county licensor regarding the applicability of a statute or rule to
the alleged violation.
new text end

new text begin (c) To ensure consistency among all licensing staff, the commissioner must develop a
procedure by which the department implements increased training and oversight of county
staff who perform licensing functions related to family child care licensing. This procedure
must ensure that the commissioner conducts at least biennial reviews of county licensing
performance.
new text end

new text begin (d) Each calendar year, county agency staff who license and regulate family child care
providers and group family child care providers and the providers' supervisors must receive
notice from the commissioner on new laws enacted or adopted in the previous 12-month
period relating to family child care providers and group family child care providers. The
commissioner shall provide the notices each year to include information on new laws and
disseminate the notices to county agencies and family child care license holders.
new text end

new text begin (e) The commissioner is responsible for revoking certification of county child care
licensors in the following circumstances:
new text end

new text begin (1) any activity that results in criminal charges or a conviction that would result in a
background study disqualification of individuals serving Department of Human Services
licensed programs;
new text end

new text begin (2) the refusal of licensor to follow proper protocol, including but not limited to: refusal
to seek clarification on rules and statutes if a dispute arises and attempting to implement or
enforce additional rules or statutes beyond what is required by state law; and
new text end

new text begin (3) a preponderance of evidence that a licensor engaged in unethical or improper behavior
toward a license holder, including harassment, stalking, or violating the rights of a license
holder.
new text end

Sec. 9.

Minnesota Statutes 2016, section 256.01, subdivision 2, is amended to read:


Subd. 2.

Specific powers.

Subject to the provisions of section 241.021, subdivision 2,
the commissioner of human services shall carry out the specific duties in paragraphs (a)
through (bb):

(a) Administer and supervise all forms of public assistance provided for by state law
and other welfare activities or services as are vested in the commissioner. Administration
and supervision of human services activities or services includes, but is not limited to,
assuring timely and accurate distribution of benefits, completeness of service, and quality
program management. In addition to administering and supervising human services activities
vested by law in the department, the commissioner shall have the authority to:

(1) require county agency participation in training and technical assistance programs to
promote compliance with statutes, rules, federal laws, regulations, and policies governing
human services;

(2) monitor, on an ongoing basis, the performance of county agencies in the operation
and administration of human services, enforce compliance with statutes, rules, federal laws,
regulations, and policies governing welfare services and promote excellence of administration
and program operation;

(3) develop a quality control program or other monitoring program to review county
performance and accuracy of benefit determinations;

(4) require county agencies to make an adjustment to the public assistance benefits issued
to any individual consistent with federal law and regulation and state law and rule and to
issue or recover benefits as appropriate;

(5) delay or deny payment of all or part of the state and federal share of benefits and
administrative reimbursement according to the procedures set forth in section 256.017;

(6) make contracts with and grants to public and private agencies and organizations,
both profit and nonprofit, and individuals, using appropriated funds; and

(7) enter into contractual agreements with federally recognized Indian tribes with a
reservation in Minnesota to the extent necessary for the tribe to operate a federally approved
family assistance program or any other program under the supervision of the commissioner.
The commissioner shall consult with the affected county or counties in the contractual
agreement negotiations, if the county or counties wish to be included, in order to avoid the
duplication of county and tribal assistance program services. The commissioner may establish
necessary accounts for the purposes of receiving and disbursing funds as necessary for the
operation of the programs.

(b) Inform county agenciesnew text begin and affected license holdersnew text end, on a timely basis, of changes
in statute, rule, federal law, regulation, and policy necessary to county agency administration
of the programs.new text begin Notification may be completed using electronic means. The commissioner
must make notice of changes in statute available to the public online.
new text end

(c) Administer and supervise all child welfare activities; promote the enforcement of
laws protecting disabled, dependent, neglected and delinquent children, and children born
to mothers who were not married to the children's fathers at the times of the conception nor
at the births of the children; license and supervise child-caring and child-placing agencies
and institutions; supervise the care of children in boarding and foster homes or in private
institutions; and generally perform all functions relating to the field of child welfare now
vested in the State Board of Control.

(d) Administer and supervise all noninstitutional service to persons with disabilities,
including persons who have vision impairments, and persons who are deaf, deafblind, and
hard-of-hearing or with other disabilities. The commissioner may provide and contract for
the care and treatment of qualified indigent children in facilities other than those located
and available at state hospitals when it is not feasible to provide the service in state hospitals.

(e) Assist and actively cooperate with other departments, agencies and institutions, local,
state, and federal, by performing services in conformity with the purposes of Laws 1939,
chapter 431.

(f) Act as the agent of and cooperate with the federal government in matters of mutual
concern relative to and in conformity with the provisions of Laws 1939, chapter 431,
including the administration of any federal funds granted to the state to aid in the performance
of any functions of the commissioner as specified in Laws 1939, chapter 431, and including
the promulgation of rules making uniformly available medical care benefits to all recipients
of public assistance, at such times as the federal government increases its participation in
assistance expenditures for medical care to recipients of public assistance, the cost thereof
to be borne in the same proportion as are grants of aid to said recipients.

(g) Establish and maintain any administrative units reasonably necessary for the
performance of administrative functions common to all divisions of the department.

(h) Act as designated guardian of both the estate and the person of all the wards of the
state of Minnesota, whether by operation of law or by an order of court, without any further
act or proceeding whatever, except as to persons committed as developmentally disabled.
For children under the guardianship of the commissioner or a tribe in Minnesota recognized
by the Secretary of the Interior whose interests would be best served by adoptive placement,
the commissioner may contract with a licensed child-placing agency or a Minnesota tribal
social services agency to provide adoption services. A contract with a licensed child-placing
agency must be designed to supplement existing county efforts and may not replace existing
county programs or tribal social services, unless the replacement is agreed to by the county
board and the appropriate exclusive bargaining representative, tribal governing body, or the
commissioner has evidence that child placements of the county continue to be substantially
below that of other counties. Funds encumbered and obligated under an agreement for a
specific child shall remain available until the terms of the agreement are fulfilled or the
agreement is terminated.

(i) Act as coordinating referral and informational center on requests for service for newly
arrived immigrants coming to Minnesota.

(j) The specific enumeration of powers and duties as hereinabove set forth shall in no
way be construed to be a limitation upon the general transfer of powers herein contained.

(k) Establish county, regional, or statewide schedules of maximum fees and charges
which may be paid by county agencies for medical, dental, surgical, hospital, nursing and
nursing home care and medicine and medical supplies under all programs of medical care
provided by the state and for congregate living care under the income maintenance programs.

(l) Have the authority to conduct and administer experimental projects to test methods
and procedures of administering assistance and services to recipients or potential recipients
of public welfare. To carry out such experimental projects, it is further provided that the
commissioner of human services is authorized to waive the enforcement of existing specific
statutory program requirements, rules, and standards in one or more counties. The order
establishing the waiver shall provide alternative methods and procedures of administration,
shall not be in conflict with the basic purposes, coverage, or benefits provided by law, and
in no event shall the duration of a project exceed four years. It is further provided that no
order establishing an experimental project as authorized by the provisions of this section
shall become effective until the following conditions have been met:

(1) the secretary of health and human services of the United States has agreed, for the
same project, to waive state plan requirements relative to statewide uniformity; and

(2) a comprehensive plan, including estimated project costs, shall be approved by the
Legislative Advisory Commission and filed with the commissioner of administration.

(m) According to federal requirements, establish procedures to be followed by local
welfare boards in creating citizen advisory committees, including procedures for selection
of committee members.

(n) Allocate federal fiscal disallowances or sanctions which are based on quality control
error rates for the aid to families with dependent children program formerly codified in
sections 256.72 to 256.87, medical assistance, or food stamp program in the following
manner:

(1) one-half of the total amount of the disallowance shall be borne by the county boards
responsible for administering the programs. For the medical assistance and the AFDC
program formerly codified in sections 256.72 to 256.87, disallowances shall be shared by
each county board in the same proportion as that county's expenditures for the sanctioned
program are to the total of all counties' expenditures for the AFDC program formerly codified
in sections 256.72 to 256.87, and medical assistance programs. For the food stamp program,
sanctions shall be shared by each county board, with 50 percent of the sanction being
distributed to each county in the same proportion as that county's administrative costs for
food stamps are to the total of all food stamp administrative costs for all counties, and 50
percent of the sanctions being distributed to each county in the same proportion as that
county's value of food stamp benefits issued are to the total of all benefits issued for all
counties. Each county shall pay its share of the disallowance to the state of Minnesota.
When a county fails to pay the amount due hereunder, the commissioner may deduct the
amount from reimbursement otherwise due the county, or the attorney general, upon the
request of the commissioner, may institute civil action to recover the amount due; and

(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing
noncompliance by one or more counties with a specific program instruction, and that knowing
noncompliance is a matter of official county board record, the commissioner may require
payment or recover from the county or counties, in the manner prescribed in clause (1), an
amount equal to the portion of the total disallowance which resulted from the noncompliance,
and may distribute the balance of the disallowance according to clause (1).

(o) Develop and implement special projects that maximize reimbursements and result
in the recovery of money to the state. For the purpose of recovering state money, the
commissioner may enter into contracts with third parties. Any recoveries that result from
projects or contracts entered into under this paragraph shall be deposited in the state treasury
and credited to a special account until the balance in the account reaches $1,000,000. When
the balance in the account exceeds $1,000,000, the excess shall be transferred and credited
to the general fund. All money in the account is appropriated to the commissioner for the
purposes of this paragraph.

(p) Have the authority to establish and enforce the following county reporting
requirements:

(1) the commissioner shall establish fiscal and statistical reporting requirements necessary
to account for the expenditure of funds allocated to counties for human services programs.
When establishing financial and statistical reporting requirements, the commissioner shall
evaluate all reports, in consultation with the counties, to determine if the reports can be
simplified or the number of reports can be reduced;

(2) the county board shall submit monthly or quarterly reports to the department as
required by the commissioner. Monthly reports are due no later than 15 working days after
the end of the month. Quarterly reports are due no later than 30 calendar days after the end
of the quarter, unless the commissioner determines that the deadline must be shortened to
20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss
of federal funding. Only reports that are complete, legible, and in the required format shall
be accepted by the commissioner;

(3) if the required reports are not received by the deadlines established in clause (2), the
commissioner may delay payments and withhold funds from the county board until the next
reporting period. When the report is needed to account for the use of federal funds and the
late report results in a reduction in federal funding, the commissioner shall withhold from
the county boards with late reports an amount equal to the reduction in federal funding until
full federal funding is received;

(4) a county board that submits reports that are late, illegible, incomplete, or not in the
required format for two out of three consecutive reporting periods is considered
noncompliant. When a county board is found to be noncompliant, the commissioner shall
notify the county board of the reason the county board is considered noncompliant and
request that the county board develop a corrective action plan stating how the county board
plans to correct the problem. The corrective action plan must be submitted to the
commissioner within 45 days after the date the county board received notice of
noncompliance;

(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after
the date the report was originally due. If the commissioner does not receive a report by the
final deadline, the county board forfeits the funding associated with the report for that
reporting period and the county board must repay any funds associated with the report
received for that reporting period;

(6) the commissioner may not delay payments, withhold funds, or require repayment
under clause (3) or (5) if the county demonstrates that the commissioner failed to provide
appropriate forms, guidelines, and technical assistance to enable the county to comply with
the requirements. If the county board disagrees with an action taken by the commissioner
under clause (3) or (5), the county board may appeal the action according to sections 14.57
to 14.69; and

(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment
of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover
costs incurred due to actions taken by the commissioner under clause (3) or (5).

(q) Allocate federal fiscal disallowances or sanctions for audit exceptions when federal
fiscal disallowances or sanctions are based on a statewide random sample in direct proportion
to each county's claim for that period.

(r) Be responsible for ensuring the detection, prevention, investigation, and resolution
of fraudulent activities or behavior by applicants, recipients, and other participants in the
human services programs administered by the department.

(s) Require county agencies to identify overpayments, establish claims, and utilize all
available and cost-beneficial methodologies to collect and recover these overpayments in
the human services programs administered by the department.

(t) Have the authority to administer the federal drug rebate program for drugs purchased
under the medical assistance program as allowed by section 1927 of title XIX of the Social
Security Act and according to the terms and conditions of section 1927. Rebates shall be
collected for all drugs that have been dispensed or administered in an outpatient setting and
that are from manufacturers who have signed a rebate agreement with the United States
Department of Health and Human Services.

(u) Have the authority to administer a supplemental drug rebate program for drugs
purchased under the medical assistance program. The commissioner may enter into
supplemental rebate contracts with pharmaceutical manufacturers and may require prior
authorization for drugs that are from manufacturers that have not signed a supplemental
rebate contract. Prior authorization of drugs shall be subject to the provisions of section
256B.0625, subdivision 13.

(v) Operate the department's communication systems account established in Laws 1993,
First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared
communication costs necessary for the operation of the programs the commissioner
supervises. A communications account may also be established for each regional treatment
center which operates communications systems. Each account must be used to manage
shared communication costs necessary for the operations of the programs the commissioner
supervises. The commissioner may distribute the costs of operating and maintaining
communication systems to participants in a manner that reflects actual usage. Costs may
include acquisition, licensing, insurance, maintenance, repair, staff time and other costs as
determined by the commissioner. Nonprofit organizations and state, county, and local
government agencies involved in the operation of programs the commissioner supervises
may participate in the use of the department's communications technology and share in the
cost of operation. The commissioner may accept on behalf of the state any gift, bequest,
devise or personal property of any kind, or money tendered to the state for any lawful
purpose pertaining to the communication activities of the department. Any money received
for this purpose must be deposited in the department's communication systems accounts.
Money collected by the commissioner for the use of communication systems must be
deposited in the state communication systems account and is appropriated to the
commissioner for purposes of this section.

(w) Receive any federal matching money that is made available through the medical
assistance program for the consumer satisfaction survey. Any federal money received for
the survey is appropriated to the commissioner for this purpose. The commissioner may
expend the federal money received for the consumer satisfaction survey in either year of
the biennium.

(x) Designate community information and referral call centers and incorporate cost
reimbursement claims from the designated community information and referral call centers
into the federal cost reimbursement claiming processes of the department according to
federal law, rule, and regulations. Existing information and referral centers provided by
Greater Twin Cities United Way or existing call centers for which Greater Twin Cities
United Way has legal authority to represent, shall be included in these designations upon
review by the commissioner and assurance that these services are accredited and in
compliance with national standards. Any reimbursement is appropriated to the commissioner
and all designated information and referral centers shall receive payments according to
normal department schedules established by the commissioner upon final approval of
allocation methodologies from the United States Department of Health and Human Services
Division of Cost Allocation or other appropriate authorities.

(y) Develop recommended standards for foster care homes that address the components
of specialized therapeutic services to be provided by foster care homes with those services.

(z) Authorize the method of payment to or from the department as part of the human
services programs administered by the department. This authorization includes the receipt
or disbursement of funds held by the department in a fiduciary capacity as part of the human
services programs administered by the department.

(aa) Designate the agencies that operate the Senior LinkAge Line under section 256.975,
subdivision 7
, and the Disability Linkage Line under subdivision 24 as the state of Minnesota
Aging and Disability Resource Center under United States Code, title 42, section 3001, the
Older Americans Act Amendments of 2006, and incorporate cost reimbursement claims
from the designated centers into the federal cost reimbursement claiming processes of the
department according to federal law, rule, and regulations. Any reimbursement must be
appropriated to the commissioner and treated consistent with section 256.011. All Aging
and Disability Resource Center designated agencies shall receive payments of grant funding
that supports the activity and generates the federal financial participation according to Board
on Aging administrative granting mechanisms.