HF 2712

as introduced - 93rd Legislature (2023 - 2024) Posted on 05/02/2023 11:48am

A bill for an act
relating to human services; modifying the procedure for sanctions; modifying
background studies conducted by the Department of Human Services; modifying
definitions; modifying applications and application process; modifying license
fees; modifying commissioner of health access to recipient medical records;
modifying notice requirements for monetary recovery and sanctions; modifying
administrative reconsideration process; modifying licensing data; modifying when
email addresses are made public; prohibiting prone restraints in licensed or certified
facilities; amending Minnesota Statutes 2022, sections 13.46, subdivision 4; 62V.05,
subdivision 4a; 122A.18, subdivision 8; 245A.02, subdivisions 5a, 10b; 245A.04,
subdivisions 1, 7; 245A.041, by adding a subdivision; 245A.07, subdivisions 2a,
3; 245A.10, subdivisions 3, 4; 245A.16, subdivision 1; 245C.02, subdivisions 6a,
11c, by adding subdivisions; 245C.03, subdivisions 1, 1a, 4, 5, 5a; 245C.031,
subdivisions 1, 4; 245C.05, subdivisions 1, 5a, by adding a subdivision; 245C.07;
245C.08, subdivision 1; 245C.10, subdivision 4; 245C.30, subdivision 2; 245C.31,
subdivision 1; 245C.33, subdivision 4; 245H.13, subdivision 9; 245I.20, subdivision
10; 256.9685, subdivisions 1a, 1b; 256.9686, by adding a subdivision; 256B.04,
subdivision 15; 256B.064; 256B.27, subdivision 3; 524.5-118, subdivision 2a;
proposing coding for new law in Minnesota Statutes, chapter 245A; repealing
Minnesota Statutes 2022, sections 245A.22; 245C.02, subdivision 9; 245C.301;
256.9685, subdivisions 1c, 1d; Minnesota Rules, parts 9505.0505, subpart 18;
9505.0520, subpart 9b.

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

Section 1.

Minnesota Statutes 2022, 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 new text begin . "Licensing data" includes data pertaining to persons or
government entities certified under chapter 245H or section 245I.20. "License holder"
includes "certification holder" under section 245H.01, subdivision 4, and a person or
government entity issued a certification under section 245I.20 new text end ;

(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, new text begin the
public email address provided by nonfamily foster care license holder, new text end 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 is treated by a physician.

(ii) Except as provided in item (v), when 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 626.557 or chapter 260E, 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.

(v) A correction order or fine issued to a child care provider for a licensing violation is
private data on individuals under section 13.02, subdivision 12, or nonpublic data under
section 13.02, subdivision 9, if the correction order or fine is seven years old or older.

(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) For 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 626.557 or chapter 260E 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.

(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 section 626.557 and chapter 260E, are confidential data and may be disclosed only
as provided in section 260E.21, subdivision 4; 260E.35; 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 260E.03, or
626.5572, subdivision 18, are subject to the destruction provisions of sections 260E.35,
subdivision 6, 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 626.557 or chapter 260E 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 section 626.557 and chapters 245A, 245B, 245C, 245D, and 260E
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 sections 260E.24,
subdivisions 5 and 7, and 260E.30, subdivision 6, paragraphs (b), (c), (d), (e), and (f), 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 260E.03, 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 2022, section 62V.05, subdivision 4a, is amended to read:

Subd. 4a.

Background study required.

(a) The board must initiate background studies
under section 245C.031 of:

(1) each navigator;

(2) each in-person assister; and

(3) each certified application counselor.

(b) The board may initiate the background studies required by paragraph (a) using the
online NETStudy 2.0 system operated by the commissioner of human services.

(c) The board shall not permit any individual to provide any service or function listed
in paragraph (a) until deleted text begin the board has received notification from the commissioner of human
services indicating that the individual deleted text end :

(1) new text begin the board has evaluated any notification received from the commissioner of human
services indicating the individual's potential disqualifications and has determined that the
individual new text end is not disqualified under chapter 245C; or

(2) new text begin the board has determined that the individual new text end is disqualified deleted text begin , deleted text end but has deleted text begin received deleted text end new text begin granted new text end
a set aside deleted text begin from the board deleted text end of that disqualification according to sections 245C.22 and 245C.23.

(d) The board or its delegate shall review a reconsideration request of an individual in
paragraph (a), including granting a set aside, according to the procedures and criteria in
chapter 245C. The board shall notify the individual and the Department of Human Services
of the board's decision.

Sec. 3.

Minnesota Statutes 2022, section 122A.18, subdivision 8, is amended to read:

Subd. 8.

Background studies.

(a) The Professional Educator Licensing and Standards
Board and the Board of School Administrators must initiate criminal history background
studies of all first-time applicants for educator new text begin and administrator new text end licenses under their
jurisdiction. Applicants must include with their licensure applications:

(1) an executed criminal history consent form, including fingerprints; and

(2) payment to conduct the background study. The Professional Educator Licensing and
Standards Board must deposit payments received under this subdivision in an account in
the special revenue fund. Amounts in the account are annually appropriated to the
Professional Educator Licensing and Standards Board to pay for the costs of background
studies on applicants for licensure.

(b) The background study for all first-time deleted text begin teaching deleted text end applicants for new text begin educator new text end licenses
must include a review of information from the Bureau of Criminal Apprehension, including
criminal history data as defined in section 13.87, and must also include a review of the
national criminal records repository. The superintendent of the Bureau of Criminal
Apprehension is authorized to exchange fingerprints with the Federal Bureau of Investigation
for purposes of the criminal history check.

(c) The Professional Educator Licensing and Standards Board may initiate criminal
history background studies through the commissioner of human services according to section
245C.031 to obtain background study data required under this chapter.

Sec. 4.

Minnesota Statutes 2022, section 245A.02, subdivision 5a, is amended to read:

Subd. 5a.

Controlling individual.

(a) "Controlling individual" means an owner of a
program or service provider licensed under this chapter and the following individuals, if
applicable:

(1) each officer of the organization, including the chief executive officer and chief
financial officer;

(2) the individual designated as the authorized agent under section 245A.04, subdivision
1, paragraph (b);

(3) the individual designated as the compliance officer under section 256B.04, subdivision
21, paragraph (g);

(4) each managerial official whose responsibilities include the direction of the
management or policies of a program; deleted text begin and
deleted text end

(5) the individual designated as the primary provider of care for a special family child
care program under section 245A.14, subdivision 4, paragraph (i) deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) the president and treasurer of the board of directors of a nonprofit corporation.
new text end

(b) Controlling individual does not include:

(1) a bank, savings bank, trust company, savings association, credit union, industrial
loan and thrift company, investment banking firm, or insurance company unless the entity
operates a program directly or through a subsidiary;

(2) an individual who is a state or federal official, or state or federal employee, or a
member or employee of the governing body of a political subdivision of the state or federal
government that operates one or more programs, unless the individual is also an officer,
owner, or managerial official of the program, receives remuneration from the program, or
owns any of the beneficial interests not excluded in this subdivision;

(3) an individual who owns less than five percent of the outstanding common shares of
a corporation:

(i) whose securities are exempt under section 80A.45, clause (6); or

(ii) whose transactions are exempt under section 80A.46, clause (2);

(4) an individual who is a member of an organization exempt from taxation under section
290.05, unless the individual is also an officer, owner, or managerial official of the program
or owns any of the beneficial interests not excluded in this subdivision. This clause does
not exclude from the definition of controlling individual an organization that is exempt from
taxation; or

(5) an employee stock ownership plan trust, or a participant or board member of an
employee stock ownership plan, unless the participant or board member is a controlling
individual according to paragraph (a).

(c) For purposes of this subdivision, "managerial official" means an individual who has
the decision-making authority related to the operation of the program, and the responsibility
for the ongoing management of or direction of the policies, services, or employees of the
program. A site director who has no ownership interest in the program is not considered to
be a managerial official for purposes of this definition.

Sec. 5.

Minnesota Statutes 2022, section 245A.02, subdivision 10b, is amended to read:

Subd. 10b.

Owner.

"Owner" means an individual or organization that has a direct or
indirect ownership interest of five percent or more in a program licensed under this chapter.
For purposes of this subdivision, "direct ownership interest" means the possession of equity
in capital, stock, or profits of an organization, and "indirect ownership interest" means a
direct ownership interest in an entity that has a direct or indirect ownership interest in a
licensed program. For purposes of this chapter, "owner of deleted text begin a nonprofit corporation" means
the president and treasurer of the board of directors or, for an entity owned by deleted text end an employee
stock ownership plan deleted text begin , deleted text end new text begin " new text end means the president and treasurer of the entity. A government entity new text begin
or nonprofit corporation new text end that is issued a license under this chapter shall be designated the
owner.

Sec. 6.

Minnesota Statutes 2022, section 245A.04, subdivision 1, is amended to read:

Subdivision 1.

Application for licensure.

(a) An individual, organization, or government
entity that is subject to licensure under section 245A.03 must apply for a license. The
application must be made on the forms and in the manner prescribed by the commissioner.
The commissioner shall provide the applicant with instruction in completing the application
and provide information about the rules and requirements of other state agencies that affect
the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
Minnesota must have a program office located within 30 miles of the Minnesota border.
An applicant who intends to buy or otherwise acquire a program or services licensed under
this chapter that is owned by another license holder must apply for a license under this
chapter and comply with the application procedures in this section and section deleted text begin 245A.03 deleted text end new text begin
245A.043 new text end .

The commissioner shall act on the application within 90 working days after a complete
application and any required reports have been received from other state agencies or
departments, counties, municipalities, or other political subdivisions. The commissioner
shall not consider an application to be complete until the commissioner receives all of the
required information.

When the commissioner receives an application for initial licensure that is incomplete
because the applicant failed to submit required documents or that is substantially deficient
because the documents submitted do not meet licensing requirements, the commissioner
shall provide the applicant written notice that the application is incomplete or substantially
deficient. In the written notice to the applicant the commissioner shall identify documents
that are missing or deficient and give the applicant 45 days to resubmit a second application
that is substantially complete. An applicant's failure to submit a substantially complete
application after receiving notice from the commissioner is a basis for license denial under
section 245A.05.

(b) An application for licensure must identify all controlling individuals as defined in
section 245A.02, subdivision 5a, and must designate one individual to be the authorized
agent. The application must be signed by the authorized agent and must include the authorized
agent's first, middle, and last name; mailing address; and email address. By submitting an
application for licensure, the authorized agent consents to electronic communication with
the commissioner throughout the application process. The authorized agent must be
authorized to accept service on behalf of all of the controlling individuals. A government
entity that holds multiple licenses under this chapter may designate one authorized agent
for all licenses issued under this chapter or may designate a different authorized agent for
each license. Service on the authorized agent is service on all of the controlling individuals.
It is not a defense to any action arising under this chapter that service was not made on each
controlling individual. The designation of a controlling individual as the authorized agent
under this paragraph does not affect the legal responsibility of any other controlling individual
under this chapter.

(c) An applicant or license holder must have a policy that prohibits license holders,
employees, subcontractors, and volunteers, when directly responsible for persons served
by the program, from abusing prescription medication or being in any manner under the
influence of a chemical that impairs the individual's ability to provide services or care. The
license holder must train employees, subcontractors, and volunteers about the program's
drug and alcohol policy.

(d) An applicant and license holder must have a program grievance procedure that permits
persons served by the program and their authorized representatives to bring a grievance to
the highest level of authority in the program.

(e) The commissioner may limit communication during the application process to the
authorized agent or the controlling individuals identified on the license application and for
whom a background study was initiated under chapter 245C. The commissioner may require
the applicant, except for child foster care, to demonstrate competence in the applicable
licensing requirements by successfully completing a written examination. The commissioner
may develop a prescribed written examination format.

(f) When an applicant is an individual, the applicant must provide:

(1) the applicant's taxpayer identification numbers including the Social Security number
or Minnesota tax identification number, and federal employer identification number if the
applicant has employees;

(2) at the request of the commissioner, a copy of the most recent filing with the secretary
of state that includes the complete business name, if any;

(3) if doing business under a different name, the doing business as (DBA) name, as
registered with the secretary of state;

(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
Minnesota Provider Identifier (UMPI) number; and

(5) at the request of the commissioner, the notarized signature of the applicant or
authorized agent deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) except for family foster care providers, an email address that will be made public
subject to the requirements under section 13.46, subdivision 4, paragraph (b), clause (1),
item (i).
new text end

(g) When an applicant is an organization, the applicant must provide:

(1) the applicant's taxpayer identification numbers including the Minnesota tax
identification number and federal employer identification number;

(2) at the request of the commissioner, a copy of the most recent filing with the secretary
of state that includes the complete business name, and if doing business under a different
name, the doing business as (DBA) name, as registered with the secretary of state;

(3) the first, middle, and last name, and address for all individuals who will be controlling
individuals, including all officers, owners, and managerial officials as defined in section
245A.02, subdivision 5a, and the date that the background study was initiated by the applicant
for each controlling individual;

(4) if applicable, the applicant's NPI number and UMPI number;

(5) the documents that created the organization and that determine the organization's
internal governance and the relations among the persons that own the organization, have
an interest in the organization, or are members of the organization, in each case as provided
or authorized by the organization's governing statute, which may include a partnership
agreement, bylaws, articles of organization, organizational chart, and operating agreement,
or comparable documents as provided in the organization's governing statute; deleted text begin and
deleted text end

(6) the notarized signature of the applicant or authorized agent deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) an email address that will be made public subject to the requirements under section
13.46, subdivision 4, paragraph (b), clause (1), item (i).
new text end

(h) When the applicant is a government entity, the applicant must provide:

(1) the name of the government agency, political subdivision, or other unit of government
seeking the license and the name of the program or services that will be licensed;

(2) the applicant's taxpayer identification numbers including the Minnesota tax
identification number and federal employer identification number;

(3) a letter signed by the manager, administrator, or other executive of the government
entity authorizing the submission of the license application; and

(4) if applicable, the applicant's NPI number and UMPI number deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) an email address that will be made public subject to the requirements under section
13.46, subdivision 4, paragraph (b), clause (1), item (i).
new text end

(i) At the time of application for licensure or renewal of a license under this chapter, the
applicant or license holder must acknowledge on the form provided by the commissioner
if the applicant or license holder elects to receive any public funding reimbursement from
the commissioner for services provided under the license that:

(1) the applicant's or license holder's compliance with the provider enrollment agreement
or registration requirements for receipt of public funding may be monitored by the
commissioner as part of a licensing investigation or licensing inspection; and

(2) noncompliance with the provider enrollment agreement or registration requirements
for receipt of public funding that is identified through a licensing investigation or licensing
inspection, or noncompliance with a licensing requirement that is a basis of enrollment for
reimbursement for a service, may result in:

(i) a correction order or a conditional license under section 245A.06, or sanctions under
section 245A.07;

(ii) nonpayment of claims submitted by the license holder for public program
reimbursement;

(iii) recovery of payments made for the service;

(iv) disenrollment in the public payment program; or

(v) other administrative, civil, or criminal penalties as provided by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2022, section 245A.04, subdivision 7, is amended to read:

Subd. 7.

Grant of license; license extension.

(a) If the commissioner determines that
the program complies with all applicable rules and laws, the commissioner shall issue a
license consistent with this section or, if applicable, a temporary change of ownership license
under section 245A.043. At minimum, the license shall state:

(1) the name of the license holder;

(2) the address of the program;

(3) the effective date and expiration date of the license;

(4) the type of license;

(5) the maximum number and ages of persons that may receive services from the program;
deleted text begin and
deleted text end

(6) any special conditions of licensure deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) the public email address of the program.
new text end

(b) The commissioner may issue a license for a period not to exceed two years if:

(1) the commissioner is unable to conduct the deleted text begin evaluation or deleted text end observation required by
subdivision 4, paragraph (a), clause deleted text begin (4) deleted text end new text begin (3) new text end , because the program is not yet operational;

(2) certain records and documents are not available because persons are not yet receiving
services from the program; and

(3) the applicant complies with applicable laws and rules in all other respects.

(c) A decision by the commissioner to issue a license does not guarantee that any person
or persons will be placed or cared for in the licensed program.

(d) Except as provided in paragraphs (f) and (g), the commissioner shall not issue or
reissue a license if the applicant, license holder, or controlling individual has:

(1) been disqualified and the disqualification was not set aside and no variance has been
granted;

(2) been denied a license under this chapter, within the past two years;

(3) had a license issued under this chapter revoked within the past five years;

(4) an outstanding debt related to a license fee, licensing fine, or settlement agreement
for which payment is delinquent; or

(5) failed to submit the information required of an applicant under subdivision 1,
paragraph (f) deleted text begin or deleted text end new text begin , new text end (g), new text begin or (h), new text end after being requested by the commissioner.

When a license issued under this chapter is revoked under clause (1) or (3), the license
holder and controlling individual may not hold any license under chapter 245A for five
years following the revocation, and other licenses held by the applicant, license holder, or
controlling individual shall also be revoked.

(e) The commissioner shall not issue or reissue a license under this chapter if an individual
living in the household where the services will be provided as specified under section
245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside
and no variance has been granted.

(f) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued
under this chapter has been suspended or revoked and the suspension or revocation is under
appeal, the program may continue to operate pending a final order from the commissioner.
If the license under suspension or revocation will expire before a final order is issued, a
temporary provisional license may be issued provided any applicable license fee is paid
before the temporary provisional license is issued.

(g) Notwithstanding paragraph (f), when a revocation is based on the disqualification
of a controlling individual or license holder, and the controlling individual or license holder
is ordered under section 245C.17 to be immediately removed from direct contact with
persons receiving services or is ordered to be under continuous, direct supervision when
providing direct contact services, the program may continue to operate only if the program
complies with the order and submits documentation demonstrating compliance with the
order. If the disqualified individual fails to submit a timely request for reconsideration, or
if the disqualification is not set aside and no variance is granted, the order to immediately
remove the individual from direct contact or to be under continuous, direct supervision
remains in effect pending the outcome of a hearing and final order from the commissioner.

(h) For purposes of reimbursement for meals only, under the Child and Adult Care Food
Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, part 226,
relocation within the same county by a licensed family day care provider, shall be considered
an extension of the license for a period of no more than 30 calendar days or until the new
license is issued, whichever occurs first, provided the county agency has determined the
family day care provider meets licensure requirements at the new location.

(i) Unless otherwise specified by statute, all licenses issued under this chapter expire at
12:01 a.m. on the day after the expiration date stated on the license. A license holder must
apply for and be granted a new license to operate the program or the program must not be
operated after the expiration date.

(j) The commissioner shall not issue or reissue a license under this chapter if it has been
determined that a tribal licensing authority has established jurisdiction to license the program
or service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2022, section 245A.041, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin First date of direct contact; documentation requirements. new text end

new text begin Except for family
child care, family foster care for children, and family adult day services that the license
holder provides in the license holder's residence, license holders must document the first
date that a background study subject has direct contact, as defined in section 245C.02,
subdivision 11, with a person served by the license holder's program. Unless this chapter
otherwise requires, if the license holder does not maintain the documentation required by
this subdivision in the license holder's personnel files, the license holder must provide the
documentation to the commissioner upon the commissioner's request.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end

Sec. 9.

Minnesota Statutes 2022, section 245A.07, subdivision 2a, is amended to read:

Subd. 2a.

Immediate suspension expedited hearing.

(a) Within five working days of
receipt of the license holder's timely appeal, the commissioner shall request assignment of
an administrative law judge. The request must include a proposed date, time, and place of
a hearing. A hearing must be conducted by an administrative law judge within 30 calendar
days of the request for assignment, unless an extension is requested by either party and
granted by the administrative law judge for good cause. The commissioner shall issue a
notice of hearing by certified mail or personal service at least ten working days before the
hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary
immediate suspension should remain in effect pending the commissioner's final order under
section 245A.08, regarding a licensing sanction issued under subdivision 3 following the
immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the
burden of proof in expedited hearings under this subdivision shall be limited to the
commissioner's demonstration that reasonable cause exists to believe that the license holder's
actions or failure to comply with applicable law or rule poses, or the actions of other
individuals or conditions in the program poses an imminent risk of harm to the health, safety,
or rights of persons served by the program. "Reasonable cause" means there exist specific
articulable facts or circumstances which provide the commissioner with a reasonable
suspicion that there is an imminent risk of harm to the health, safety, or rights of persons
served by the program. When the commissioner has determined there is reasonable cause
to order the temporary immediate suspension of a license based on a violation of safe sleep
requirements, as defined in section 245A.1435, the commissioner is not required to
demonstrate that an infant died or was injured as a result of the safe sleep violations. For
suspensions under subdivision 2, paragraph (a), clause (2), the burden of proof in expedited
hearings under this subdivision shall be limited to the commissioner's demonstration by a
preponderance of the evidence that, since the license was revoked, the license holder
committed additional violations of law or rule which may adversely affect the health or
safety of persons served by the program.

(b) The administrative law judge shall issue findings of fact, conclusions, and a
recommendation within ten working days from the date of hearing. The parties shall have
ten calendar days to submit exceptions to the administrative law judge's report. The record
shall close at the end of the ten-day period for submission of exceptions. The commissioner's
final order shall be issued within ten working days from the close of the record. When an
appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner
shall issue a final order affirming the temporary immediate suspension within ten calendar
days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days
after new text begin an immediate suspension has been issued and the license holder has not submitted a
timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after new text end a final
order affirming an immediate suspension, the commissioner shall deleted text begin make a determination
regarding deleted text end new text begin determine:
new text end

new text begin (1) new text end whether a final licensing sanction shall be issued under subdivision 3 new text begin , paragraph (a),
clauses (1) to (5) new text end . The license holder shall continue to be prohibited from operation of the
program during this 90-day period deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) whether the outcome of related, ongoing investigations or judicial proceedings are
necessary to determine if a final licensing sanction under subdivision 3, paragraph (a),
clauses (1) to (5), will be issued, and persons served by the program remain at an imminent
risk of harm during the investigation period or proceedings. If so, the commissioner shall
issue a suspension order under subdivision 3, paragraph (a), clause (6).
new text end

(c) When the final order under paragraph (b) affirms an immediate suspension new text begin or the
license holder does not submit a timely appeal of the immediate suspension new text end , and a final
licensing sanction is issued under subdivision 3 and the license holder appeals that sanction,
the license holder continues to be prohibited from operation of the program pending a final
commissioner's order under section 245A.08, subdivision 5, regarding the final licensing
sanction.

new text begin (d) The license holder shall continue to be prohibited from operation of the program
while a suspension order issued under paragraph (b), clause (2), remains in effect.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end For suspensions under subdivision 2, paragraph (a), clause (3), the burden of
proof in expedited hearings under this subdivision shall be limited to the commissioner's
demonstration by a preponderance of the evidence that a criminal complaint and warrant
or summons was issued for the license holder that was not dismissed, and that the criminal
charge is an offense that involves fraud or theft against a program administered by the
commissioner.

Sec. 10.

Minnesota Statutes 2022, section 245A.07, subdivision 3, is amended to read:

Subd. 3.

License suspension, revocation, or fine.

(a) The commissioner may suspend
or revoke a license, or impose a fine if:

(1) a license holder fails to comply fully with applicable laws or rules including but not
limited to the requirements of this chapter and chapter 245C;

(2) a license holder, a controlling individual, or an individual living in the household
where the licensed services are provided or is otherwise subject to a background study has
been disqualified and the disqualification was not set aside and no variance has been granted;

(3) a license holder knowingly withholds relevant information from or gives false or
misleading information to the commissioner in connection with an application for a license,
in connection with the background study status of an individual, during an investigation,
or regarding compliance with applicable laws or rules;

(4) a license holder is excluded from any program administered by the commissioner
under section 245.095; deleted text begin or
deleted text end

(5) revocation is required under section 245A.04, subdivision 7, paragraph (d) deleted text begin . deleted text end new text begin ; or
new text end

new text begin (6) suspension is necessary under subdivision 2a, paragraph (b), clause (2).
new text end

A license holder who has had a license issued under this chapter suspended, revoked,
or has been ordered to pay a fine must be given notice of the action by certified mail or
personal service. If mailed, the notice must be mailed to the address shown on the application
or the last known address of the license holder. The notice must state in plain language the
reasons the license was suspended or revoked, or a fine was ordered.

(b) If the license was suspended or revoked, the notice must inform the license holder
of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts
1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking
a license. The appeal of an order suspending or revoking a license must be made in writing
by certified mail or personal service. If mailed, the appeal must be postmarked and sent to
the commissioner within ten calendar days after the license holder receives notice that the
license has been suspended or revoked. If a request is made by personal service, it must be
received by the commissioner within ten calendar days after the license holder received the
order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits a
timely appeal of an order suspending or revoking a license, the license holder may continue
to operate the program as provided in section 245A.04, subdivision 7, paragraphs (f) and
(g), until the commissioner issues a final order on the suspension or revocation.

(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license
holder of the responsibility for payment of fines and the right to a contested case hearing
under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an
order to pay a fine must be made in writing by certified mail or personal service. If mailed,
the appeal must be postmarked and sent to the commissioner within ten calendar days after
the license holder receives notice that the fine has been ordered. If a request is made by
personal service, it must be received by the commissioner within ten calendar days after
the license holder received the order.

(2) The license holder shall pay the fines assessed on or before the payment date specified.
If the license holder fails to fully comply with the order, the commissioner may issue a
second fine or suspend the license until the license holder complies. If the license holder
receives state funds, the state, county, or municipal agencies or departments responsible for
administering the funds shall withhold payments and recover any payments made while the
license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine
until the commissioner issues a final order.

(3) A license holder shall promptly notify the commissioner of human services, in writing,
when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the
commissioner determines that a violation has not been corrected as indicated by the order
to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify
the license holder by certified mail or personal service that a second fine has been assessed.
The license holder may appeal the second fine as provided under this subdivision.

(4) Fines shall be assessed as follows:

(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a
child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557
for which the license holder is determined responsible for the maltreatment under section
260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);

(ii) if the commissioner determines that a determination of maltreatment for which the
license holder is responsible is the result of maltreatment that meets the definition of serious
maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit
$5,000;

(iii) for a program that operates out of the license holder's home and a program licensed
under Minnesota Rules, parts 9502.0300 to 9502.0445, the fine assessed against the license
holder shall not exceed $1,000 for each determination of maltreatment;

(iv) the license holder shall forfeit $200 for each occurrence of a violation of law or rule
governing matters of health, safety, or supervision, including but not limited to the provision
of adequate staff-to-child or adult ratios, and failure to comply with background study
requirements under chapter 245C; and

(v) the license holder shall forfeit $100 for each occurrence of a violation of law or rule
other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).

For purposes of this section, "occurrence" means each violation identified in the
commissioner's fine order. Fines assessed against a license holder that holds a license to
provide home and community-based services, as identified in section 245D.03, subdivision
1, and a community residential setting or day services facility license under chapter 245D
where the services are provided, may be assessed against both licenses for the same
occurrence, but the combined amount of the fines shall not exceed the amount specified in
this clause for that occurrence.

(5) When a fine has been assessed, the license holder may not avoid payment by closing,
selling, or otherwise transferring the licensed program to a third party. In such an event, the
license holder will be personally liable for payment. In the case of a corporation, each
controlling individual is personally and jointly liable for payment.

(d) Except for background study violations involving the failure to comply with an order
to immediately remove an individual or an order to provide continuous, direct supervision,
the commissioner shall not issue a fine under paragraph (c) relating to a background study
violation to a license holder who self-corrects a background study violation before the
commissioner discovers the violation. A license holder who has previously exercised the
provisions of this paragraph to avoid a fine for a background study violation may not avoid
a fine for a subsequent background study violation unless at least 365 days have passed
since the license holder self-corrected the earlier background study violation.

Sec. 11.

Minnesota Statutes 2022, section 245A.10, subdivision 3, is amended to read:

Subd. 3.

Application fee for initial license or certification.

(a) For fees required under
subdivision 1, an applicant for an initial license or certification issued by the commissioner
shall submit a $500 application fee with each new application required under this subdivision.
An applicant for an initial day services facility license under chapter 245D shall submit a
$250 application fee with each new application. The application fee shall not be prorated,
is nonrefundable, and is in lieu of the annual license or certification fee that expires on
December 31. The commissioner shall not process an application until the application fee
is paid.

(b) Except as provided in clauses (1) deleted text begin to (3) deleted text end new text begin and (2) new text end , an applicant shall apply for a license
to provide services at a specific location.

(1) For a license to provide home and community-based services to persons with
disabilities or age 65 and older under chapter 245D, an applicant shall submit an application
to provide services statewide. Notwithstanding paragraph (a), applications received by the
commissioner between July 1, 2013, and December 31, 2013, for licensure of services
provided under chapter 245D must include an application fee that is equal to the annual
license renewal fee under subdivision 4, paragraph (b), or $500, whichever is less.
Applications received by the commissioner after January 1, 2014, must include the application
fee required under paragraph (a). Applicants who meet the modified application criteria
identified in section 245A.042, subdivision 2, are exempt from paying an application fee.

deleted text begin (2) For a license to provide independent living assistance for youth under section 245A.22,
an applicant shall submit a single application to provide services statewide.
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end For a license for a private agency to provide foster care or adoption services under
Minnesota Rules, parts 9545.0755 to 9545.0845, an applicant shall submit a single application
to provide services statewide.

(c) The initial application fee charged under this subdivision does not include the
temporary license surcharge under section 16E.22.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2022, section 245A.10, subdivision 4, is amended to read:

Subd. 4.

License or certification fee for certain programs.

(a) Child care centers shall
pay an annual nonrefundable license fee based on the following schedule:

	Licensed Capacity	Child Care Center License Fee
	1 to 24 persons	$200
	25 to 49 persons	$300
	50 to 74 persons	$400
	75 to 99 persons	$500
	100 to 124 persons	$600
	125 to 149 persons	$700
	150 to 174 persons	$800
	175 to 199 persons	$900
	200 to 224 persons	$1,000
	225 or more persons	$1,100

(b)(1) A program licensed to provide one or more of the home and community-based
services and supports identified under chapter 245D to persons with disabilities or age 65
and older, shall pay an annual nonrefundable license fee based on revenues derived from
the provision of services that would require licensure under chapter 245D during the calendar
year immediately preceding the year in which the license fee is paid, according to the
following schedule:

License Holder Annual Revenue		License Fee
less than or equal to $10,000		$200
greater than $10,000 but less than or equal to $25,000		$300
greater than $25,000 but less than or equal to $50,000		$400
greater than $50,000 but less than or equal to $100,000		$500
greater than $100,000 but less than or equal to $150,000		$600
greater than $150,000 but less than or equal to $200,000		$800
greater than $200,000 but less than or equal to $250,000		$1,000
greater than $250,000 but less than or equal to $300,000		$1,200
greater than $300,000 but less than or equal to $350,000		$1,400
greater than $350,000 but less than or equal to $400,000		$1,600
greater than $400,000 but less than or equal to $450,000		$1,800
greater than $450,000 but less than or equal to $500,000		$2,000
greater than $500,000 but less than or equal to $600,000		$2,250
greater than $600,000 but less than or equal to $700,000		$2,500
greater than $700,000 but less than or equal to $800,000		$2,750
greater than $800,000 but less than or equal to $900,000		$3,000
greater than $900,000 but less than or equal to $1,000,000		$3,250
greater than $1,000,000 but less than or equal to $1,250,000		$3,500
greater than $1,250,000 but less than or equal to $1,500,000		$3,750
greater than $1,500,000 but less than or equal to $1,750,000		$4,000
greater than $1,750,000 but less than or equal to $2,000,000		$4,250
greater than $2,000,000 but less than or equal to $2,500,000		$4,500
greater than $2,500,000 but less than or equal to $3,000,000		$4,750
greater than $3,000,000 but less than or equal to $3,500,000		$5,000
greater than $3,500,000 but less than or equal to $4,000,000		$5,500
greater than $4,000,000 but less than or equal to $4,500,000		$6,000
greater than $4,500,000 but less than or equal to $5,000,000		$6,500
greater than $5,000,000 but less than or equal to $7,500,000		$7,000
greater than $7,500,000 but less than or equal to $10,000,000		$8,500
greater than $10,000,000 but less than or equal to $12,500,000		$10,000
greater than $12,500,000 but less than or equal to $15,000,000		$14,000
greater than $15,000,000		$18,000

(2) If requested, the license holder shall provide the commissioner information to verify
the license holder's annual revenues or other information as needed, including copies of
documents submitted to the Department of Revenue.

(3) At each annual renewal, a license holder may elect to pay the highest renewal fee,
and not provide annual revenue information to the commissioner.

(4) A license holder that knowingly provides the commissioner incorrect revenue amounts
for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount
of double the fee the provider should have paid.

(5) Notwithstanding clause (1), a license holder providing services under one or more
licenses under chapter 245B that are in effect on May 15, 2013, shall pay an annual license
fee for calendar years 2014, 2015, and 2016, equal to the total license fees paid by the license
holder for all licenses held under chapter 245B for calendar year 2013. For calendar year
2017 and thereafter, the license holder shall pay an annual license fee according to clause
(1).

(c) A substance use disorder treatment program licensed under chapter 245G, to provide
substance use disorder treatment shall pay an annual nonrefundable license fee based on
the following schedule:

	Licensed Capacity	License Fee
	1 to 24 persons	$600
	25 to 49 persons	$800
	50 to 74 persons	$1,000
	75 to 99 persons	$1,200
	100 or more persons	$1,400

(d) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to
9530.6590, or a withdrawal management program licensed under chapter 245F shall pay
an annual nonrefundable license fee based on the following schedule:

	Licensed Capacity	License Fee
	1 to 24 persons	$760
	25 to 49 persons	$960
	50 or more persons	$1,160

A detoxification program that also operates a withdrawal management program at the same
location shall only pay one fee based upon the licensed capacity of the program with the
higher overall capacity.

(e) Except for child foster care, a residential facility licensed under Minnesota Rules,
chapter 2960, to serve children shall pay an annual nonrefundable license fee based on the
following schedule:

	Licensed Capacity	License Fee
	1 to 24 persons	$1,000
	25 to 49 persons	$1,100
	50 to 74 persons	$1,200
	75 to 99 persons	$1,300
	100 or more persons	$1,400

(f) A residential facility licensed under section 245I.23 or Minnesota Rules, parts
9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual
nonrefundable license fee based on the following schedule:

	Licensed Capacity	License Fee
	1 to 24 persons	$2,525
	25 or more persons	$2,725

(g) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 9570.3400,
to serve persons with physical disabilities shall pay an annual nonrefundable license fee
based on the following schedule:

	Licensed Capacity	License Fee
	1 to 24 persons	$450
	25 to 49 persons	$650
	50 to 74 persons	$850
	75 to 99 persons	$1,050
	100 or more persons	$1,250

deleted text begin (h) A program licensed to provide independent living assistance for youth under section
245A.22 shall pay an annual nonrefundable license fee of $1,500.
deleted text end

deleted text begin (i) deleted text end new text begin (h) new text end A private agency licensed to provide foster care and adoption services under
Minnesota Rules, parts 9545.0755 to 9545.0845, shall pay an annual nonrefundable license
fee of $875.

deleted text begin (j) deleted text end new text begin (i) new text end A program licensed as an adult day care center licensed under Minnesota Rules,
parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the
following schedule:

	Licensed Capacity	License Fee
	1 to 24 persons	$500
	25 to 49 persons	$700
	50 to 74 persons	$900
	75 to 99 persons	$1,100
	100 or more persons	$1,300

deleted text begin (k) deleted text end new text begin (j) new text end A program licensed to provide treatment services to persons with sexual
psychopathic personalities or sexually dangerous persons under Minnesota Rules, parts
9515.3000 to 9515.3110, shall pay an annual nonrefundable license fee of $20,000.

deleted text begin (l) deleted text end new text begin (k) new text end A mental health clinic certified under section 245I.20 shall pay an annual
nonrefundable certification fee of $1,550. If the mental health clinic provides services at a
primary location with satellite facilities, the satellite facilities shall be certified with the
primary location without an additional charge.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Minnesota Statutes 2022, section 245A.16, subdivision 1, is amended to read:

Subdivision 1.

Delegation of authority to agencies.

(a) County agencies and private
agencies that have been designated or licensed by the commissioner to perform licensing
functions and activities under section 245A.04 deleted text begin and background studies for family child care
under chapter deleted text end deleted text begin 245C deleted text end ; to recommend denial of applicants under section 245A.05; to issue
correction orders, to issue variances, and recommend a conditional license under section
245A.06; or to recommend suspending or revoking a license or issuing a fine under section
245A.07, shall comply with rules and directives of the commissioner governing those
functions and with this section. The following variances are excluded from the delegation
of variance authority and may be issued only by the commissioner:

(1) dual licensure of family child care and child foster care, dual licensure of child and
adult foster care, and adult foster care and family child care;

(2) adult foster care maximum capacity;

(3) adult foster care minimum age requirement;

(4) child foster care maximum age requirement;

(5) variances regarding disqualified individuals deleted text begin except that, before the implementation
of NETStudy 2.0, county agencies may issue variances under section 245C.30 regarding
disqualified individuals when the county is responsible for conducting a consolidated
reconsideration according to sections 245C.25 and 245C.27, subdivision 2, clauses (a) and
(b), of a county maltreatment determination and a disqualification based on serious or
recurring maltreatment deleted text end ;

(6) the required presence of a caregiver in the adult foster care residence during normal
sleeping hours;

(7) variances to requirements relating to chemical use problems of a license holder or a
household member of a license holder; and

(8) variances to section 245A.53 for a time-limited period. If the commissioner grants
a variance under this clause, the license holder must provide notice of the variance to all
parents and guardians of the children in care.

Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency must
not grant a license holder a variance to exceed the maximum allowable family child care
license capacity of 14 children.

(b) A county agency that has been designated by the commissioner to issue family child
care variances must:

(1) publish the county agency's policies and criteria for issuing variances on the county's
public website and update the policies as necessary; and

(2) annually distribute the county agency's policies and criteria for issuing variances to
all family child care license holders in the county.

deleted text begin (c) Before the implementation of NETStudy 2.0, county agencies must report information
about disqualification reconsiderations under sections 245C.25 and 245C.27, subdivision
2, paragraphs (a) and (b), and variances granted under paragraph (a), clause (5), to the
commissioner at least monthly in a format prescribed by the commissioner.
deleted text end

deleted text begin (d) deleted text end new text begin (c) new text end For family child care programs, the commissioner shall require a county agency
to conduct one unannounced licensing review at least annually.

deleted text begin (e) deleted text end new text begin (d) new text end For family adult day services programs, the commissioner may authorize licensing
reviews every two years after a licensee has had at least one annual review.

deleted text begin (f) deleted text end new text begin (e) new text end A license issued under this section may be issued for up to two years.

deleted text begin (g) deleted text end new text begin (f) new text end During implementation of chapter 245D, the commissioner shall consider:

(1) the role of counties in quality assurance;

(2) the duties of county licensing staff; and

(3) the possible use of joint powers agreements, according to section 471.59, with counties
through which some licensing duties under chapter 245D may be delegated by the
commissioner to the counties.

Any consideration related to this paragraph must meet all of the requirements of the corrective
action plan ordered by the federal Centers for Medicare and Medicaid Services.

deleted text begin (h) deleted text end new text begin (g) new text end Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or
successor provisions; and section 245D.061 or successor provisions, for family child foster
care programs providing out-of-home respite, as identified in section 245D.03, subdivision
1, paragraph (b), clause (1), is excluded from the delegation of authority to county and
private agencies.

deleted text begin (i) deleted text end new text begin (h) new text end A county agency shall report to the commissioner, in a manner prescribed by the
commissioner, the following information for a licensed family child care program:

(1) the results of each licensing review completed, including the date of the review, and
any licensing correction order issued;

(2) any death, serious injury, or determination of substantiated maltreatment; and

(3) any fires that require the service of a fire department within 48 hours of the fire. The
information under this clause must also be reported to the state fire marshal within two
business days of receiving notice from a licensed family child care provider.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

new text begin [245A.211] PRONE RESTRAINT PROHIBITION.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to all programs licensed or certified
under this chapter, chapters 245D, 245F, 245G, 245H, and sections 245I.20 and 245I.23.
The requirements in this section are in addition to any applicable requirements for the use
of holds or restraints for each license or certification type.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) "Mechanical restraint" means a restraint device that limits the
voluntary movement of a person or the person's limbs.
new text end

new text begin (b) "Prone restraint" means a restraint that places a person in a face-down position with
the person's chest in contact with the floor or other surface.
new text end

new text begin (c) "Restraint" means a physical hold, physical restraint, manual restraint, restraint
equipment, or mechanical restraint that holds a person immobile or limits the voluntary
movement of a person or the person's limbs.
new text end

new text begin Subd. 3. new text end

new text begin Prone restraint prohibition. new text end

new text begin (a) A license or certification holder must not use
a prone restraint on any person receiving services in a program, except in the instances
allowed by paragraphs (b) to (d).
new text end

new text begin (b) If a person rolls into a prone position during the use of a restraint, the person must
be restored to a nonprone position as quickly as possible.
new text end

new text begin (c) If the applicable licensing requirements allow a program to use mechanical restraints,
a person may be briefly held in a prone restraint for the purpose of applying mechanical
restraints if the person is restored to a nonprone position as quickly as possible.
new text end

new text begin (d) If the applicable licensing requirements allow a program to use seclusion, a person
may be briefly held in a prone restraint to allow staff to safely exit a seclusion room.
new text end

new text begin Subd. 4. new text end

new text begin Contraindicated physical restraints. new text end

new text begin A license or certification holder must
not implement a restraint on a person receiving services in a program in a way that is
contraindicated for any of the person's known medical or psychological conditions. Prior
to using restraints on a person, the license or certification holder must assess and document
a determination of any medical or psychological conditions that restraints are contraindicated
for and the type of restraints that will not be used on the person based on this determination.
new text end

Sec. 15.

Minnesota Statutes 2022, section 245C.02, subdivision 6a, is amended to read:

Subd. 6a.

Child care background study subject.

(a) "Child care background study
subject" means an individual who is affiliated with a licensed child care center, certified
license-exempt child care center, licensed family child care program, or legal nonlicensed
child care provider authorized under chapter 119B, and who is:

(1) employed by a child care provider for compensation;

(2) assisting in the care of a child for a child care provider;

(3) a person applying for licensure, certification, or enrollment;

(4) a controlling individual as defined in section 245A.02, subdivision 5a;

(5) an individual 13 years of age or older who lives in the household where the licensed
program will be provided and who is not receiving licensed services from the program;

(6) an individual ten to 12 years of age who lives in the household where the licensed
services will be provided when the commissioner has reasonable cause as defined in section
245C.02, subdivision 15;

(7) an individual who, without providing direct contact services at a licensed program,
certified program, or program authorized under chapter 119B, may have unsupervised access
to a child receiving services from a program when the commissioner has reasonable cause
as defined in section 245C.02, subdivision 15; or

(8) a volunteer, contractor new text begin providing services for hire in the program new text end , prospective
employee, or other individual who has unsupervised physical access to a child served by a
program and who is not under supervision by an individual listed in clause (1) or (5),
regardless of whether the individual provides program services.

(b) Notwithstanding paragraph (a), an individual who is providing services that are not
part of the child care program is not required to have a background study if:

(1) the child receiving services is signed out of the child care program for the duration
that the services are provided;

(2) the licensed child care center, certified license-exempt child care center, licensed
family child care program, or legal nonlicensed child care provider authorized under chapter
119B has obtained advanced written permission from the parent authorizing the child to
receive the services, which is maintained in the child's record;

(3) the licensed child care center, certified license-exempt child care center, licensed
family child care program, or legal nonlicensed child care provider authorized under chapter
119B maintains documentation on site that identifies the individual service provider and
the services being provided; and

(4) the licensed child care center, certified license-exempt child care center, licensed
family child care program, or legal nonlicensed child care provider authorized under chapter
119B ensures that the service provider does not have unsupervised access to a child not
receiving the provider's services.

Sec. 16.

Minnesota Statutes 2022, section 245C.02, subdivision 11c, is amended to read:

Subd. 11c.

Entity.

"Entity" means any program, organization, new text begin license holder, government
agency, new text end or agency deleted text begin initiating deleted text end new text begin required to initiate new text end a background study.

Sec. 17.

Minnesota Statutes 2022, section 245C.02, is amended by adding a subdivision
to read:

new text begin Subd. 11f. new text end

new text begin Employee. new text end

new text begin "Employee" means an individual who provides services or seeks
to provide services for the entity with which they are required to be affiliated in NETStudy
2.0 and who is subject to oversight by the entity, which includes but is not limited to
continuous, direct supervision by the entity and being subject to immediate removal from
providing direct care services by the entity when required.
new text end

Sec. 18.

Minnesota Statutes 2022, section 245C.02, is amended by adding a subdivision
to read:

new text begin Subd. 22. new text end

new text begin Volunteer. new text end

new text begin "Volunteer" means an individual who provides or seeks to provide
services for an entity without direct compensation for services provided, is required to be
affiliated in NETStudy 2.0 and is subject to oversight by the entity, including but not limited
to continuous, direct supervision and immediate removal from providing direct care services
when required.
new text end

Sec. 19.

Minnesota Statutes 2022, section 245C.03, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs.

(a) The commissioner shall conduct a background
study on:

(1) the person or persons applying for a license;

(2) an individual age 13 and over living in the household where the licensed program
will be provided who is not receiving licensed services from the program;

(3) current or prospective employees deleted text begin or contractors deleted text end of the applicant who will have direct
contact with persons served by the facility, agency, or program;

(4) volunteers or student volunteers who will have direct contact with persons served
by the program to provide program services if the contact is not under the continuous, direct
supervision by an individual listed in clause (1) or (3);

(5) an individual age ten to 12 living in the household where the licensed services will
be provided when the commissioner has reasonable cause as defined in section 245C.02,
subdivision 15;

(6) an individual who, without providing direct contact services at a licensed program,
may have unsupervised access to children or vulnerable adults receiving services from a
program, when the commissioner has reasonable cause as defined in section 245C.02,
subdivision 15;

(7) all controlling individuals as defined in section 245A.02, subdivision 5a;

(8) notwithstanding the other requirements in this subdivision, child care background
study subjects as defined in section 245C.02, subdivision 6a; and

(9) notwithstanding clause (3), for children's residential facilities and foster residence
settings, any adult working in the facility, whether or not the individual will have direct
contact with persons served by the facility.

(b) For child foster care when the license holder resides in the home where foster care
services are provided, a short-term substitute caregiver providing direct contact services for
a child for less than 72 hours of continuous care is not required to receive a background
study under this chapter.

(c) This subdivision applies to the following programs that must be licensed under
chapter 245A:

(1) adult foster care;

(2) child foster care;

(3) children's residential facilities;

(4) family child care;

(5) licensed child care centers;

(6) licensed home and community-based services under chapter 245D;

(7) residential mental health programs for adults;

(8) substance use disorder treatment programs under chapter 245G;

(9) withdrawal management programs under chapter 245F;

(10) adult day care centers;

(11) family adult day services;

deleted text begin (12) independent living assistance for youth;
deleted text end

deleted text begin (13) deleted text end new text begin (12) new text end detoxification programs;

deleted text begin (14) deleted text end new text begin (13) new text end community residential settings; and

deleted text begin (15) deleted text end new text begin (14) new text end intensive residential treatment services and residential crisis stabilization under
chapter 245I.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2022, section 245C.03, subdivision 1a, is amended to read:

Subd. 1a.

Procedure.

(a) Individuals and organizations that are required under this
section to have or initiate background studies shall comply with the requirements of this
chapter.

(b) All studies conducted under this section shall be conducted according to sections
299C.60 to 299C.64 new text begin , including the consent and self-disclosure required in section 299C.62,
subdivision 2 new text end . This requirement does not apply to subdivisions 1, paragraph (c), clauses (2)
to (5), and 6a.

Sec. 21.

Minnesota Statutes 2022, section 245C.03, subdivision 4, is amended to read:

Subd. 4.

Personnel new text begin pool new text end agencies; new text begin temporary personnel agencies; new text end educational
programs; professional services agencies.

new text begin (a) new text end The commissioner also may conduct studies
on individuals specified in subdivision 1, paragraph (a), clauses (3) and (4), when the studies
are initiated by:

(1) personnel pool agencies;

(2) temporary personnel agencies;

(3) educational programs that train individuals by providing direct contact services in
licensed programs; and

(4) professional services agencies that are not licensed and deleted text begin which contract deleted text end new text begin that work new text end
with licensed programs to provide direct contact services or individuals who provide direct
contact services.

new text begin (b) Personnel pool agencies, temporary personnel agencies, and professional services
agencies must employ the individuals providing direct care services for children, people
with disabilities, or the elderly. Individuals must be affiliated in NETStudy 2.0 and subject
to oversight by the entity, which includes but is not limited to continuous, direct supervision
by the entity and being subject to immediate removal from providing direct care services
by the entity when required.
new text end

Sec. 22.

Minnesota Statutes 2022, section 245C.03, subdivision 5, is amended to read:

Subd. 5.

Other state agencies.

The commissioner shall conduct background studies on
applicants and license holders under the jurisdiction of other state agencies who are required
in other statutory sections to initiate background studies under this chapter, including the
applicant's or license holder's employees deleted text begin , contractors, deleted text end and volunteers when required under
other statutory sections.

Sec. 23.

Minnesota Statutes 2022, section 245C.03, subdivision 5a, is amended to read:

Subd. 5a.

Facilities serving children or adults licensed or regulated by the
Department of Health.

(a) Except as specified in paragraph (b), the commissioner shall
conduct background studies of:

(1) individuals providing services who have direct contact, as defined under section
245C.02, subdivision 11, with patients and residents in hospitals, boarding care homes,
outpatient surgical centers licensed under sections 144.50 to 144.58; nursing homes and
home care agencies licensed under chapter 144A; assisted living facilities and assisted living
facilities with dementia care licensed under chapter 144G; and board and lodging
establishments that are registered to provide supportive or health supervision services under
section 157.17;

(2) individuals specified in subdivision 2 who provide direct contact services in a nursing
home or a home care agency licensed under chapter 144A; an assisted living facility or
assisted living facility with dementia care licensed under chapter 144G; or a boarding care
home licensed under sections 144.50 to 144.58. If the individual undergoing a study resides
outside of Minnesota, the study must include a check for substantiated findings of
maltreatment of adults and children in the individual's state of residence when the state
makes the information available;

(3) all other employees in assisted living facilities or assisted living facilities with
dementia care licensed under chapter 144G, nursing homes licensed under chapter 144A,
and boarding care homes licensed under sections 144.50 to 144.58. A disqualification of
an individual in this section shall disqualify the individual from positions allowing direct
contact with or access to patients or residents receiving services. "Access" means physical
access to a client or the client's personal property without continuous, direct supervision as
defined in section 245C.02, subdivision 8, when the employee's employment responsibilities
do not include providing direct contact services;

(4) individuals employed by a supplemental nursing services agency, as defined under
section 144A.70, who are providing services in health care facilities;

(5) controlling persons of a supplemental nursing services agency, as defined by section
144A.70; and

(6) license applicants, owners, managerial officials, and controlling individuals who are
required under section 144A.476, subdivision 1, or 144G.13, subdivision 1, to undergo a
background study under this chapter, regardless of the licensure status of the license applicant,
owner, managerial official, or controlling individual.

(b) deleted text begin The commissioner of human services shall not conduct deleted text end new text begin An entity shall not initiate new text end a
background study on any individual identified in paragraph (a), clauses (1) to (5), if the
individual has a valid license issued by a health-related licensing board as defined in section
214.01, subdivision 2, and has completed the criminal background check as required in
section 214.075. An entity that is affiliated with individuals who meet the requirements of
this paragraph must separate those individuals from the entity's roster for NETStudy 2.0. new text begin
The Department of Human Services is not liable for conducting background studies that
have been submitted or not removed from the roster in violation of this provision.
new text end

(c) If a facility or program is licensed by the Department of Human Services and the
Department of Health and is subject to the background study provisions of this chapter, the
Department of Human Services is solely responsible for the background studies of individuals
in the jointly licensed program.

(d) The commissioner of health shall review and make decisions regarding reconsideration
requests, including whether to grant variances, according to the procedures and criteria in
this chapter. The commissioner of health shall inform the requesting individual and the
Department of Human Services of the commissioner of health's decision regarding the
reconsideration. The commissioner of health's decision to grant or deny a reconsideration
of a disqualification is a final administrative agency action.

Sec. 24.

Minnesota Statutes 2022, section 245C.031, subdivision 1, is amended to read:

Subdivision 1.

Alternative background studies.

(a) The commissioner shall conduct
an alternative background study of individuals listed in this section.

(b) Notwithstanding other sections of this chapter, all alternative background studies
except subdivision 12 shall be conducted according to this section and with sections 299C.60
to 299C.64 new text begin , including the consent and self-disclosure required in section 299C.62, subdivision
2 new text end .

(c) All terms in this section shall have the definitions provided in section 245C.02.

(d) The entity that submits an alternative background study request under this section
shall submit the request to the commissioner according to section 245C.05.

(e) The commissioner shall comply with the destruction requirements in section 245C.051.

(f) Background studies conducted under this section are subject to the provisions of
section 245C.32.

(g) The commissioner shall forward all information that the commissioner receives under
section 245C.08 to the entity that submitted the alternative background study request under
subdivision 2. The commissioner shall not make any eligibility determinations regarding
background studies conducted under this section.

Sec. 25.

Minnesota Statutes 2022, section 245C.031, subdivision 4, is amended to read:

Subd. 4.

Applicants, licensees, and other occupations regulated by the commissioner
of health.

The commissioner shall conduct an alternative background study, including a
check of state data, and a national criminal history records check of the following individuals.
For studies under this section, the following persons shall complete a consent form new text begin and
criminal history disclosure form new text end :

(1) An applicant for initial licensure, temporary licensure, or relicensure after a lapse in
licensure as an audiologist or speech-language pathologist or an applicant for initial
certification as a hearing instrument dispenser who must submit to a background study
under section 144.0572.

(2) An applicant for a renewal license or certificate as an audiologist, speech-language
pathologist, or hearing instrument dispenser who was licensed or obtained a certificate
before January 1, 2018.

Sec. 26.

Minnesota Statutes 2022, section 245C.05, subdivision 1, is amended to read:

Subdivision 1.

Individual studied.

(a) The individual who is the subject of the
background study must provide the applicant, license holder, or other entity under section
245C.04 with sufficient information to ensure an accurate study, including:

(1) the individual's first, middle, and last name and all other names by which the
individual has been known;

(2) current home address, city, and state of residence;

(3) current zip code;

(4) sex;

(5) date of birth;

(6) driver's license number or state identification number new text begin or, for those without a driver's
license or state identification card, an acceptable form of identification as determined by
the commissioner new text end ; and

(7) upon implementation of NETStudy 2.0, the home address, city, county, and state of
residence for the past five years.

(b) Every subject of a background study conducted or initiated by counties or private
agencies under this chapter must also provide the home address, city, county, and state of
residence for the past five years.

(c) Every subject of a background study related to private agency adoptions or related
to child foster care licensed through a private agency, who is 18 years of age or older, shall
also provide the commissioner a signed consent for the release of any information received
from national crime information databases to the private agency that initiated the background
study.

(d) The subject of a background study new text begin who is 18 years of age or older new text end shall provide
fingerprints and a photograph as required in subdivision 5. new text begin The subject of a background
study who is 17 years of age or younger shall provide fingerprints and a photograph only
as required in subdivision 5a.
new text end

(e) The subject of a background study shall submit a completed criminal and maltreatment
history records check consent form new text begin and criminal history disclosure form new text end for applicable
national and state level record checks.

Sec. 27.

Minnesota Statutes 2022, section 245C.05, subdivision 5a, is amended to read:

Subd. 5a.

Background study requirements for minors.

(a) A background study
completed under this chapter on a subject who is required to be studied under section
245C.03, subdivision 1, and is 17 years of age or younger shall be completed by the
commissioner for:

(1) a legal nonlicensed child care provider authorized under chapter 119B;

(2) a licensed family child care program; or

(3) a licensed foster care home.

(b) The subject shall submit to the commissioner only the information under subdivision
1, paragraph (a).

(c) new text begin Notwithstanding paragraph (b), new text end a subject who is 17 years of age or younger deleted text begin is required
to submit fingerprints and a photograph, and the commissioner shall conduct a national
criminal history record check deleted text end new text begin must provide the commissioner with a set of the background
study subject's classifiable fingerprints and photograph new text end , if:

(1) the commissioner has reasonable cause to require a national criminal history record
check defined in section 245C.02, subdivision 15a; or

(2) under paragraph (a), clauses (1) and (2), the subject is employed by the provider or
supervises children served by the program.

deleted text begin (d) A subject who is 17 years of age or younger is required to submit
non-fingerprint-based data according to section 245C.08, subdivision 1, paragraph (a),
clause (6), item (iii), and the commissioner shall conduct the check if:
deleted text end

deleted text begin (1) the commissioner has reasonable cause to require a national criminal history record
check defined in section 245C.02, subdivision 15a; or
deleted text end

deleted text begin (2) the subject is employed by the provider or supervises children served by the program
under paragraph (a), clauses (1) and (2).
deleted text end

Sec. 28.

Minnesota Statutes 2022, section 245C.05, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Study submitted. new text end

new text begin The entity with which the background study subject is seeking
affiliation shall initiate the background study in the NETStudy 2.0 system.
new text end

Sec. 29.

Minnesota Statutes 2022, section 245C.07, is amended to read:

245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.

(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other
entity owns multiple programs or services that are licensed by the Department of Human
Services, Department of Health, or Department of Corrections, only one background study
is required for an individual who provides direct contact services in one or more of the
licensed programs or services if:

(1) the license holder designates one individual with one address and telephone number
as the person to receive sensitive background study information for the multiple licensed
programs or services that depend on the same background study; and

(2) the individual designated to receive the sensitive background study information is
capable of determining, upon request of the department, whether a background study subject
is providing direct contact services in one or more of the license holder's programs or services
and, if so, at which location or locations.

(b) When a license holder maintains background study compliance for multiple licensed
programs according to paragraph (a), and one or more of the licensed programs closes, the
license holder shall immediately notify the commissioner which staff must be transferred
to an active license so that the background studies can be electronically paired with the
license holder's active program.

(c) When a background study is being initiated by a licensed program or service or a
foster care provider that is also licensed under chapter 144G, a study subject affiliated with
multiple licensed programs or services may attach to the background study form a cover
letter indicating the additional names of the programs or services, addresses, and background
study identification numbers.

When the commissioner receives a notice, the commissioner shall notify each program
or service identified by the background study subject of the study results.

The background study notice the commissioner sends to the subsequent agencies shall
satisfy those programs' or services' responsibilities for initiating a background study on that
individual.

(d) If a background study was conducted on an individual related to child foster care
and the requirements under paragraph (a) are met, the background study is transferable
across all licensed programs. If a background study was conducted on an individual under
a license other than child foster care and the requirements under paragraph (a) are met, the
background study is transferable to all licensed programs except child foster care.

(e) The provisions of this section that allow a single background study in one or more
licensed programs or services do not apply to background studies submitted by adoption
agencies, supplemental nursing services agencies, personnel new text begin pool new text end agencies, educational
programs, professional services agencies, new text begin temporary personnel agencies, new text end and unlicensed
personal care provider organizations.

(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the
system used to document when a background study subject is affiliated with multiple entities.
For a background study to be transferable:

(1) the background study subject must be on and moving to a roster for which the person
designated to receive sensitive background study information is the same; and

(2) the same entity must own or legally control both the roster from which the transfer
is occurring and the roster to which the transfer is occurring. For an entity that holds or
controls multiple licenses, or unlicensed personal care provider organizations, there must
be a common highest level entity that has a legally identifiable structure that can be verified
through records available from the secretary of state.

Sec. 30.

Minnesota Statutes 2022, section 245C.08, subdivision 1, is amended to read:

Subdivision 1.

Background studies conducted by Department of Human Services.

(a)
For a background study conducted by the Department of Human Services, the commissioner
shall review:

(1) information related to names of substantiated perpetrators of maltreatment of
vulnerable adults that has been received by the commissioner as required under section
626.557, subdivision 9c, paragraph (j);

(2) the commissioner's records relating to the maltreatment of minors in licensed
programs, and from findings of maltreatment of minors as indicated through the social
service information system;

(3) information from juvenile courts as required in subdivision 4 for individuals listed
in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;

(4) information from the Bureau of Criminal Apprehension, including information
regarding a background study subject's registration in Minnesota as a predatory offender
under section 243.166;

(5) except as provided in clause (6), information received as a result of submission of
fingerprints for a national criminal history record check, as defined in section 245C.02,
subdivision 13c, when the commissioner has reasonable cause for a national criminal history
record check as defined under section 245C.02, subdivision 15a, or as required under section
144.057, subdivision 1, clause (2);

(6) for a background study related to a child foster family setting application for licensure,
foster residence settings, children's residential facilities, a transfer of permanent legal and
physical custody of a child under sections 260C.503 to 260C.515, or adoptions, and for a
background study required for family child care, certified license-exempt child care, child
care centers, and legal nonlicensed child care authorized under chapter 119B, the
commissioner shall also review:

(i) information from the child abuse and neglect registry for any state in which the
background study subject has resided for the past five years;

(ii) when the background study subject is 18 years of age or older, or a minor under
section 245C.05, subdivision 5a, paragraph (c), information received following submission
of fingerprints for a national criminal history record check; and

(iii) when the background study subject is 18 years of age or older or a minor under
section 245C.05, subdivision 5a, deleted text begin paragraph (d), deleted text end for licensed family child care, certified
license-exempt child care, licensed child care centers, and legal nonlicensed child care
authorized under chapter 119B, information obtained using non-fingerprint-based data
including information from the criminal and sex offender registries for any state in which
the background study subject resided for the past five years and information from the national
crime information database and the national sex offender registry; and

(7) for a background study required for family child care, certified license-exempt child
care centers, licensed child care centers, and legal nonlicensed child care authorized under
chapter 119B, the background study shall also include, to the extent practicable, a name
and date-of-birth search of the National Sex Offender Public website.

(b) Notwithstanding expungement by a court, the commissioner may consider information
obtained under paragraph (a), clauses (3) and (4), unless the commissioner received notice
of the petition for expungement and the court order for expungement is directed specifically
to the commissioner.

(c) The commissioner shall also review criminal case information received according
to section 245C.04, subdivision 4a, from the Minnesota court information system that relates
to individuals who have already been studied under this chapter and who remain affiliated
with the agency that initiated the background study.

(d) When the commissioner has reasonable cause to believe that the identity of a
background study subject is uncertain, the commissioner may require the subject to provide
a set of classifiable fingerprints for purposes of completing a fingerprint-based record check
with the Bureau of Criminal Apprehension. Fingerprints collected under this paragraph
shall not be saved by the commissioner after they have been used to verify the identity of
the background study subject against the particular criminal record in question.

(e) The commissioner may inform the entity that initiated a background study under
NETStudy 2.0 of the status of processing of the subject's fingerprints.

Sec. 31.

Minnesota Statutes 2022, section 245C.10, subdivision 4, is amended to read:

Subd. 4.

Temporary personnel agencies, new text begin personnel pool agencies, new text end educational
programs, and professional services agencies.

The commissioner shall recover the cost
of the background studies initiated by temporary personnel agencies, new text begin personnel pool agencies, new text end
educational programs, and professional services agencies that initiate background studies
under section 245C.03, subdivision 4, through a fee of no more than $42 per study charged
to the agency. The fees collected under this subdivision are appropriated to the commissioner
for the purpose of conducting background studies.

Sec. 32.

Minnesota Statutes 2022, section 245C.30, subdivision 2, is amended to read:

Subd. 2.

Disclosure of reason for disqualification.

(a) The commissioner may not grant
a variance for a disqualified individual unless the applicant, license-exempt child care center
certification holder, or license holder requests the variance and the disqualified individual
provides written consent for the commissioner to disclose to the applicant, license-exempt
child care center certification holder, or license holder the reason for the disqualification.

(b) This subdivision does not apply to programs licensed to provide family child care
for children, foster care for children in the provider's own home, or foster care or day care
services for adults in the provider's own home. deleted text begin When the commissioner grants a variance
for a disqualified individual in connection with a license to provide the services specified
in this paragraph, the disqualified individual's consent is not required to disclose the reason
for the disqualification to the license holder in the variance issued under subdivision 1,
provided that the commissioner may not disclose the reason for the disqualification if the
disqualification is based on a felony-level conviction for a drug-related offense within the
past five years.
deleted text end

Sec. 33.

Minnesota Statutes 2022, section 245C.31, subdivision 1, is amended to read:

Subdivision 1.

Board determines disciplinary or corrective action.

deleted text begin (a) deleted text end The
commissioner shall notify a health-related licensing board as defined in section 214.01,
subdivision 2, if the commissioner determines that an individual who is licensed by the
health-related licensing board and who is included on the board's roster list provided in
accordance with subdivision 3a is responsible for substantiated maltreatment under section
626.557 or chapter 260E, in accordance with subdivision 2. Upon receiving notification,
the health-related licensing board shall make a determination as to whether to impose
disciplinary or corrective action under chapter 214.

deleted text begin (b) This section does not apply to a background study of an individual regulated by a
health-related licensing board if the individual's study is related to child foster care, adult
foster care, or family child care licensure.
deleted text end

Sec. 34.

Minnesota Statutes 2022, section 245C.33, subdivision 4, is amended to read:

Subd. 4.

Information commissioner reviews.

(a) The commissioner shall review the
following information regarding the background study subject:

(1) the information under section 245C.08, subdivisions 1, 3, and 4;

(2) information from the child abuse and neglect registry for any state in which the
subject has resided for the past five years; and

(3) information from national crime information databases, when required under section
245C.08.

(b) The commissioner shall provide any information collected under this subdivision to
the county or private agency that initiated the background study. The commissioner shall
also provide the agency deleted text begin :
deleted text end

deleted text begin (1) deleted text end new text begin with a new text end notice whether the information collected shows that the subject of the
background study has a conviction listed in United States Code, title 42, section
671(a)(20)(A) deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) for background studies conducted under subdivision 1, paragraph (a), the date of all
adoption-related background studies completed on the subject by the commissioner after
June 30, 2007, and the name of the county or private agency that initiated the adoption-related
background study.
deleted text end

Sec. 35.

Minnesota Statutes 2022, section 245H.13, subdivision 9, is amended to read:

Subd. 9.

Behavior guidance.

The certified center must ensure that staff and volunteers
use positive behavior guidance and do not subject children to:

(1) corporal punishment, including but not limited to rough handling, shoving, hair
pulling, ear pulling, shaking, slapping, kicking, biting, pinching, hitting, and spanking;

(2) humiliation;

(3) abusive language;

(4) the use of mechanical restraints, including tying;

(5) the use of physical restraints other than to physically hold a child when containment
is necessary to protect a child or others from harm; deleted text begin or
deleted text end

new text begin (6) prone restraints, as prohibited by section 245A.211; or
new text end

deleted text begin (6) deleted text end new text begin (7) new text end the withholding or forcing of food and other basic needs.

Sec. 36.

Minnesota Statutes 2022, section 245I.20, subdivision 10, is amended to read:

Subd. 10.

Application procedures.

(a) The applicant for certification must submit any
documents that the commissioner requires on forms approved by the commissioner.

(b) Upon submitting an application for certification, an applicant must pay the application
fee required by section 245A.10, subdivision 3.

(c) The commissioner must act on an application within 90 working days of receiving
a completed application.

(d) When the commissioner receives an application for initial certification that is
incomplete because the applicant failed to submit required documents or is deficient because
the submitted documents do not meet certification requirements, the commissioner must
provide the applicant with written notice that the application is incomplete or deficient. In
the notice, the commissioner must identify the particular documents that are missing or
deficient and give the applicant 45 days to submit a second application that is complete. An
applicant's failure to submit a complete application within 45 days after receiving notice
from the commissioner is a basis for certification denial.

(e) The commissioner must give notice of a denial to an applicant when the commissioner
has made the decision to deny the certification application. In the notice of denial, the
commissioner must state the reasons for the denial in plain language. The commissioner
must send or deliver the notice of denial to an applicant by certified mail or personal service.
In the notice of denial, the commissioner must state the reasons that the commissioner denied
the application and must inform the applicant of the applicant's right to request a contested
case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The
applicant may appeal the denial by notifying the commissioner in writing by certified mail
or personal service. If mailed, the appeal must be postmarked and sent to the commissioner
within 20 calendar days after the applicant received the notice of denial. If an applicant
delivers an appeal by personal service, the commissioner must receive the appeal within 20
calendar days after the applicant received the notice of denial.

new text begin (f) The commissioner may require the applicant or certification holder to provide an
email address for the certification holder that will be made public subject to the requirements
under section 13.46, subdivision 4, paragraph (b), clause (1), item (i).
new text end

Sec. 37.

Minnesota Statutes 2022, section 256.9685, subdivision 1a, is amended to read:

Subd. 1a.

Administrative reconsideration.

Notwithstanding section 256B.04,
subdivision 15, the commissioner shall establish an administrative reconsideration process
for appeals of inpatient hospital services determined to be medically unnecessary. A
physician, advanced practice registered nurse, physician assistant, or hospital may request
a reconsideration of the decision that inpatient hospital services are not medically necessary
by submitting a written request for review to the commissioner within 30 new text begin calendar new text end days
after deleted text begin receiving deleted text end new text begin the date of the new text end notice of the decision new text begin was mailed new text end . The new text begin request for new text end
reconsideration deleted text begin process deleted text end shall deleted text begin take place prior to the procedures of subdivision 1b and shall
be conducted deleted text end new text begin be reviewed new text end by deleted text begin the deleted text end new text begin at least one new text end medical review agent that is independent of
the case under reconsideration. new text begin The medical review agent shall make a recommendation to
the commissioner. The commissioner's decision on reconsideration is final and not subject
to appeal under chapter 14.
new text end

Sec. 38.

Minnesota Statutes 2022, section 256.9685, subdivision 1b, is amended to read:

Subd. 1b.

Appeal of reconsideration.

deleted text begin Notwithstanding section 256B.72, the
commissioner may recover inpatient hospital payments for services that have been determined
to be medically unnecessary after the reconsideration and determinations. A physician,
advanced practice registered nurse, physician assistant, or hospital may appeal the result of
the reconsideration process by submitting a written request for review to the commissioner
within 30 days after receiving notice of the action. The commissioner shall review the
medical record and information submitted during the reconsideration process and the medical
review agent's basis for the determination that the services were not medically necessary
for inpatient hospital services. The commissioner shall issue an order upholding or reversing
the decision of the reconsideration process based on the review. deleted text end new text begin The commissioner's decision
under subdivision 1a is appealable by petition for writ of certiorari under chapter 606.
new text end

Sec. 39.

Minnesota Statutes 2022, section 256.9686, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Medical review agent. new text end

new text begin "Medical review agent" means the representative of
the commissioner who is authorized by the commissioner to administer medical record
reviews; conduct administrative reconsiderations as defined by section 256.9685, subdivision
1a; and perform other functions as stipulated in the terms of the agent's contract with the
department. Medical records reviews and administrative reconsiderations will be performed
by medical professionals within their scope of expertise, including but not limited to
physicians, physician assistants, advanced practice registered nurses, and registered nurses.
The medical professional performing the review or reconsideration must be on staff with
the medical review agent, in good standing, and licensed to practice in the state where the
medical professional resides.
new text end

Sec. 40.

Minnesota Statutes 2022, section 256B.04, subdivision 15, is amended to read:

Subd. 15.

Utilization review.

(a) Establish on a statewide basis a new program to
safeguard against unnecessary or inappropriate use of medical assistance services, against
excess payments, against unnecessary or inappropriate hospital admissions or lengths of
stay, and against underutilization of services in prepaid health plans, long-term care facilities
or any health care delivery system subject to fixed rate reimbursement. In implementing
the program, the state agency shall utilize both prepayment and postpayment review systems
to determine if utilization is reasonable and necessary. The determination of whether services
are reasonable and necessary shall be made by the commissioner in consultation with a
professional services advisory group or health care consultant appointed by the commissioner.

(b) Contracts entered into for purposes of meeting the requirements of this subdivision
shall not be subject to the set-aside provisions of chapter 16C.

(c) A recipient aggrieved by the commissioner's termination of services or denial of
future services may appeal pursuant to section 256.045. new text begin Unless otherwise provided by law,
new text end a vendor aggrieved by the commissioner's determination that services provided were not
reasonable or necessary may appeal pursuant to the contested case procedures of chapter
14. To appeal, the vendor shall notify the commissioner in writing within 30 days of receiving
the commissioner's notice. The appeal request shall specify each disputed item, the reason
for the dispute, an estimate of the dollar amount involved for each disputed item, the
computation that the vendor believes is correct, the authority in statute or rule upon which
the vendor relies for each disputed item, the name and address of the person or firm with
whom contacts may be made regarding the appeal, and other information required by the
commissioner.

(d) The commissioner may select providers to provide case management services to
recipients who use health care services inappropriately or to recipients who are eligible for
other managed care projects. The providers shall be selected based upon criteria that may
include a comparison with a peer group of providers related to the quality, quantity, or cost
of health care services delivered or a review of sanctions previously imposed by health care
services programs or the provider's professional licensing board.

Sec. 41.

Minnesota Statutes 2022, section 256B.064, is amended to read:

256B.064 SANCTIONS; MONETARY RECOVERY.

Subdivision 1.

Terminating payments to ineligible deleted text begin vendors deleted text end new text begin individuals or entities new text end .

The
commissioner may terminate payments under this chapter to any person or facility that,
under applicable federal law or regulation, has been determined to be ineligible for payments
under title XIX of the Social Security Act.

Subd. 1a.

Grounds for sanctions deleted text begin against vendors deleted text end .

(a) The commissioner may impose
sanctions against deleted text begin a vendor of medical care deleted text end new text begin any individual or entity that receives payments
from medical assistance or provides goods or services for which payment is made from
medical assistance new text end for any of the following: (1) fraud, theft, or abuse in connection with the
provision of deleted text begin medical care deleted text end new text begin goods and services new text end to recipients of public assistance new text begin for which
payment is made from medical assistance new text end ; (2) a pattern of presentment of false or duplicate
claims or claims for services not medically necessary; (3) a pattern of making false statements
of material facts for the purpose of obtaining greater compensation than that to which the
deleted text begin vendor deleted text end new text begin individual or entity new text end is legally entitled; (4) suspension or termination as a Medicare
vendor; (5) refusal to grant the state agency access during regular business hours to examine
all records necessary to disclose the extent of services provided to program recipients and
appropriateness of claims for payment; (6) failure to repay an overpayment or a fine finally
established under this section; (7) failure to correct errors in the maintenance of health
service or financial records for which a fine was imposed or after issuance of a warning by
the commissioner; and (8) any reason for which deleted text begin a vendor deleted text end new text begin an individual or entity new text end could be
excluded from participation in the Medicare program under section 1128, 1128A, or
1866(b)(2) of the Social Security Act. new text begin For the purposes of this section, goods or services
for which payment is made from medical assistance includes but is not limited to care and
services identified in section 256B.0625 or provided pursuant to any federally approved
waiver.
new text end

(b) The commissioner may impose sanctions against a pharmacy provider for failure to
respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph
(h).

Subd. 1b.

Sanctions available.

The commissioner may impose the following sanctions
for the conduct described in subdivision 1a: suspension or withholding of payments to deleted text begin a
vendor deleted text end new text begin an individual or entity new text end and suspending or terminating participation in the program,
or imposition of a fine under subdivision 2, paragraph (f). When imposing sanctions under
this section, the commissioner shall consider the nature, chronicity, or severity of the conduct
and the effect of the conduct on the health and safety of persons served by the deleted text begin vendor deleted text end new text begin
individual or entity new text end . The commissioner shall suspend deleted text begin a vendor's deleted text end new text begin an individual's or entity's new text end
participation in the program for a minimum of five years if the deleted text begin vendor deleted text end new text begin individual or entity new text end
is convicted of a crime, received a stay of adjudication, or entered a court-ordered diversion
program for an offense related to a provision of a health service under medical assistance new text begin ,
including a federally approved waiver, new text end or health care fraud. Regardless of imposition of
sanctions, the commissioner may make a referral to the appropriate state licensing board.

Subd. 1c.

Grounds for and methods of monetary recovery.

(a) The commissioner
may obtain monetary recovery from deleted text begin a vendor who deleted text end new text begin an individual or entity that new text end has been
improperly paid new text begin by the department new text end either as a result of conduct described in subdivision 1a
or as a result of deleted text begin a vendor or department deleted text end new text begin an new text end error new text begin by the individual or entity submitting the
claim or by the department new text end , regardless of whether the error was intentional. Patterns need
not be proven as a precondition to monetary recovery of erroneous or false claims, duplicate
claims, claims for services not medically necessary, or claims based on false statements.

(b) The commissioner may obtain monetary recovery using methods including but not
limited to the following: assessing and recovering money improperly paid and debiting from
future payments any money improperly paid. The commissioner shall charge interest on
money to be recovered if the recovery is to be made by installment payments or debits,
except when the monetary recovery is of an overpayment that resulted from a department
error. The interest charged shall be the rate established by the commissioner of revenue
under section 270C.40.

Subd. 1d.

Investigative costs.

The commissioner may seek recovery of investigative
costs from any deleted text begin vendor of medical care or services who deleted text end new text begin individual or entity that new text end willfully
submits a claim for reimbursement for services that the deleted text begin vendor deleted text end new text begin individual or entity new text end knows,
or reasonably should have known, is a false representation and that results in the payment
of public funds for which the deleted text begin vendor deleted text end new text begin individual or entity new text end is ineligible. Billing errors that
result in unintentional overcharges shall not be grounds for investigative cost recoupment.

Subd. 2.

Imposition of monetary recovery and sanctions.

(a) The commissioner shall
determine any monetary amounts to be recovered and sanctions to be imposed upon deleted text begin a vendor
of medical care deleted text end new text begin an individual or entity new text end under this section. Except as provided in paragraphs
(b) and (d), neither a monetary recovery nor a sanction will be imposed by the commissioner
without prior notice and an opportunity for a hearing, according to chapter 14, on the
commissioner's proposed action, provided that the commissioner may suspend or reduce
payment to deleted text begin a vendor of medical care deleted text end new text begin an individual or entity new text end , except a nursing home or
convalescent care facility, after notice and prior to the hearing if in the commissioner's
opinion that action is necessary to protect the public welfare and the interests of the program.

(b) Except when the commissioner finds good cause not to suspend payments under
Code of Federal Regulations, title 42, section 455.23 (e) or (f), the commissioner shall
withhold or reduce payments to deleted text begin a vendor of medical care deleted text end new text begin an individual or entity new text end without
providing advance notice of such withholding or reduction if either of the following occurs:

(1) the deleted text begin vendor deleted text end new text begin individual or entity new text end is convicted of a crime involving the conduct described
in subdivision 1a; or

(2) the commissioner determines there is a credible allegation of fraud for which an
investigation is pending under the program. new text begin Allegations are considered credible when they
have an indicium of reliability and the state agency has reviewed all allegations, facts, and
evidence carefully and acts judiciously on a case-by-case basis. new text end A credible allegation of
fraud is an allegation which has been verified by the state, from any source, including but
not limited to:

(i) fraud hotline complaints;

(ii) claims data mining; and

(iii) patterns identified through provider audits, civil false claims cases, and law
enforcement investigations.

deleted text begin Allegations are considered to be credible when they have an indicia of reliability and
the state agency has reviewed all allegations, facts, and evidence carefully and acts
judiciously on a case-by-case basis.
deleted text end

(c) The commissioner must send notice of the withholding or reduction of payments
under paragraph (b) within five days of taking such action unless requested in writing by a
law enforcement agency to temporarily withhold the notice. The notice must:

(1) state that payments are being withheld according to paragraph (b);

(2) set forth the general allegations as to the nature of the withholding action, but need
not disclose any specific information concerning an ongoing investigation;

(3) except in the case of a conviction for conduct described in subdivision 1a, state that
the withholding is for a temporary period and cite the circumstances under which withholding
will be terminated;

(4) identify the types of claims to which the withholding applies; and

(5) inform the deleted text begin vendor deleted text end new text begin individual or entity new text end of the right to submit written evidence for
consideration by the commissioner.

new text begin (d) new text end The withholding or reduction of payments will not continue after the commissioner
determines there is insufficient evidence of fraud by the deleted text begin vendor deleted text end new text begin individual or entity new text end , or after
legal proceedings relating to the alleged fraud are completed, unless the commissioner has
sent notice of intention to impose monetary recovery or sanctions under paragraph (a). Upon
conviction for a crime related to the provision, management, or administration of a health
service under medical assistance, a payment held pursuant to this section by the commissioner
or a managed care organization that contracts with the commissioner under section 256B.035
is forfeited to the commissioner or managed care organization, regardless of the amount
charged in the criminal complaint or the amount of criminal restitution ordered.

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner shall suspend or terminate deleted text begin a vendor's deleted text end new text begin an individual's or entity's new text end
participation in the program without providing advance notice and an opportunity for a
hearing when the suspension or termination is required because of the deleted text begin vendor's deleted text end new text begin individual's
or entity's new text end exclusion from participation in Medicare. Within five days of taking such action,
the commissioner must send notice of the suspension or termination. The notice must:

(1) state that suspension or termination is the result of the deleted text begin vendor's deleted text end new text begin individual's or entity's new text end
exclusion from Medicare;

(2) identify the effective date of the suspension or termination; and

(3) inform the deleted text begin vendor deleted text end new text begin individual or entity new text end of the need to be reinstated to Medicare before
reapplying for participation in the program.

deleted text begin (e) deleted text end new text begin (f) new text end Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction
is to be imposed, deleted text begin a vendor deleted text end new text begin an individual or entity new text end may request a contested case, as defined
in section 14.02, subdivision 3, by filing with the commissioner a written request of appeal.
The appeal request must be received by the commissioner no later than 30 days after the
date the notification of monetary recovery or sanction was mailed to the deleted text begin vendor deleted text end new text begin individual
or entity new text end . The appeal request must specify:

(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount
involved for each disputed item;

(2) the computation that the deleted text begin vendor deleted text end new text begin individual or entity new text end believes is correct;

(3) the authority in statute or rule upon which the deleted text begin vendor deleted text end new text begin individual or entity new text end relies for
each disputed item;

(4) the name and address of the person or entity with whom contacts may be made
regarding the appeal; and

(5) other information required by the commissioner.

deleted text begin (f) deleted text end new text begin (g) new text end The commissioner may order deleted text begin a vendor deleted text end new text begin an individual or entity new text end to forfeit a fine for
failure to fully document services according to standards in this chapter and Minnesota
Rules, chapter 9505. The commissioner may assess fines if specific required components
of documentation are missing. The fine for incomplete documentation shall equal 20 percent
of the amount paid on the claims for reimbursement submitted by the deleted text begin vendor deleted text end new text begin individual or
entity new text end , or up to $5,000, whichever is less. If the commissioner determines that deleted text begin a vendor deleted text end new text begin an
individual or entity new text end repeatedly violated this chapter, chapter 254B or 245G, or Minnesota
Rules, chapter 9505, related to the provision of services to program recipients and the
submission of claims for payment, the commissioner may order deleted text begin a vendor deleted text end new text begin an individual or
entity new text end to forfeit a fine based on the nature, severity, and chronicity of the violations, in an
amount of up to $5,000 or 20 percent of the value of the claims, whichever is greater. new text begin The
commissioner may issue fines under this paragraph in place of or in addition to full monetary
recovery of the value of the claims submitted under subdivision 1c.
new text end

deleted text begin (g) deleted text end new text begin (h) new text end The deleted text begin vendor deleted text end new text begin individual or entity new text end shall pay the fine assessed on or before the
payment date specified. If the deleted text begin vendor deleted text end new text begin individual or entity new text end fails to pay the fine, the
commissioner may withhold or reduce payments and recover the amount of the fine. A
timely appeal shall stay payment of the fine until the commissioner issues a final order.

Subd. 3.

deleted text begin Vendor deleted text end Mandates on prohibited payments.

(a) The commissioner shall
maintain and publish a list of each excluded individual and entity that was convicted of a
crime related to the provision, management, or administration of a medical assistance health
service, or suspended or terminated under subdivision 2. Medical assistance payments cannot
be made by deleted text begin a vendor deleted text end new text begin an individual or entity new text end for items or services furnished either directly
or indirectly by an excluded individual or entity, or at the direction of excluded individuals
or entities.

(b) The deleted text begin vendor deleted text end new text begin entity new text end must check the exclusion list on a monthly basis and document
the date and time the exclusion list was checked and the name and title of the person who
checked the exclusion list. The deleted text begin vendor deleted text end new text begin entity new text end must immediately terminate payments to an
individual or entity on the exclusion list.

(c) deleted text begin A vendor's deleted text end new text begin An entity's new text end requirement to check the exclusion list and to terminate
payments to individuals or entities on the exclusion list applies to each individual or entity
on the exclusion list, even if the named individual or entity is not responsible for direct
patient care or direct submission of a claim to medical assistance.

(d) deleted text begin A vendor deleted text end new text begin An entity new text end that pays medical assistance program funds to an individual or
entity on the exclusion list must refund any payment related to either items or services
rendered by an individual or entity on the exclusion list from the date the individual or entity
is first paid or the date the individual or entity is placed on the exclusion list, whichever is
later, and deleted text begin a vendor deleted text end new text begin an entity new text end may be subject to:

(1) sanctions under subdivision 2;

(2) a civil monetary penalty of up to $25,000 for each determination by the department
that the vendor employed or contracted with an individual or entity on the exclusion list;
and

(3) other fines or penalties allowed by law.

Subd. 4.

Notice.

(a) The new text begin department shall serve the new text end notice required under subdivision 2
deleted text begin shall be served deleted text end by certified mail at the address submitted to the department by the deleted text begin vendor deleted text end new text begin
individual or entity new text end . Service is complete upon mailing. deleted text begin The commissioner shall place an
affidavit of the certified mailing in the vendor's file as an indication of the address and the
date of mailing.
deleted text end

(b) The department shall give notice in writing to a recipient placed in the Minnesota
restricted recipient program under section 256B.0646 and Minnesota Rules, part 9505.2200.
The new text begin department shall send the new text end notice deleted text begin shall be sent deleted text end by first class mail to the recipient's current
address on file with the department. A recipient placed in the Minnesota restricted recipient
program may contest the placement by submitting a written request for a hearing to the
department within 90 days of the notice being mailed.

Subd. 5.

Immunity; good faith reporters.

(a) A person who makes a good faith report
is immune from any civil or criminal liability that might otherwise arise from reporting or
participating in the investigation. Nothing in this subdivision affects deleted text begin a vendor's deleted text end new text begin an individual's
or entity's new text end responsibility for an overpayment established under this subdivision.

(b) A person employed by a lead investigative agency who is conducting or supervising
an investigation or enforcing the law according to the applicable law or rule is immune from
any civil or criminal liability that might otherwise arise from the person's actions, if the
person is acting in good faith and exercising due care.

(c) For purposes of this subdivision, "person" includes a natural person or any form of
a business or legal entity.

(d) After an investigation is complete, the reporter's name must be kept confidential.
The subject of the report may compel disclosure of the reporter's name only with the consent
of the reporter or upon a written finding by a district court that the report was false and there
is evidence that the report was made in bad faith. This subdivision does not alter disclosure
responsibilities or obligations under the Rules of Criminal Procedure, except that when the
identity of the reporter is relevant to a criminal prosecution the district court shall conduct
an in-camera review before determining whether to order disclosure of the reporter's identity.

Sec. 42.

Minnesota Statutes 2022, section 256B.27, subdivision 3, is amended to read:

Subd. 3.

Access to medical records.

The commissioner of human services, with the
written consent of the recipient, on file with the local welfare agency, shall be allowed
access new text begin in the manner and within the time prescribed by the commissioner new text end to all personal
medical records of medical assistance recipients solely for the purposes of investigating
whether or not: (a) a vendor of medical care has submitted a claim for reimbursement, a
cost report or a rate application which is duplicative, erroneous, or false in whole or in part,
or which results in the vendor obtaining greater compensation than the vendor is legally
entitled to; or (b) the medical care was medically necessary. When the commissioner is
investigating a possible overpayment of Medicaid funds, the commissioner must be given
immediate access without prior notice to the vendor's office during regular business hours
and to documentation and records related to services provided and submission of claims
for services provided. The department shall document in writing the need for immediate
access to records related to a specific investigation. Denying the commissioner access to
records is cause for the vendor's immediate suspension of payment or termination according
to section 256B.064. new text begin All providers receiving medical assistance payments must make those
records available immediately to the commissioner upon request. Any records not provided
to the commissioner at the date and time of the request are inadmissible if offered as evidence
by the provider in any proceeding to contest sanctions against or monetary recovery from
the provider. new text end The determination of provision of services not medically necessary shall be
made by the commissioner. Notwithstanding any other law to the contrary, a vendor of
medical care shall not be subject to any civil or criminal liability for providing access to
medical records to the commissioner of human services pursuant to this section.

Sec. 43.

Minnesota Statutes 2022, section 524.5-118, subdivision 2a, is amended to read:

Subd. 2a.

Procedure; state licensing agency data.

(a) The court shall request the
commissioner of human services to provide the court within 25 working days of receipt of
the request with licensing agency data for licenses directly related to the responsibilities of
a professional fiduciary if the study subject indicates current or prior affiliation from the
following agencies in Minnesota:

(1) Lawyers Responsibility Board;

(2) State Board of Accountancy;

(3) Board of Social Work;

(4) Board of Psychology;

(5) Board of Nursing;

(6) Board of Medical Practice;

deleted text begin (7) Department of Education;
deleted text end

deleted text begin (8) deleted text end new text begin (7) new text end Department of Commerce;

deleted text begin (9) deleted text end new text begin (8) new text end Board of Chiropractic Examiners;

deleted text begin (10) deleted text end new text begin (9) new text end Board of Dentistry;

deleted text begin (11) deleted text end new text begin (10) new text end Board of Marriage and Family Therapy;

deleted text begin (12) deleted text end new text begin (11) new text end Department of Human Services;

deleted text begin (13) deleted text end new text begin (12) new text end Peace Officer Standards and Training (POST) Board; and

deleted text begin (14) deleted text end new text begin (13) new text end Professional Educator Licensing and Standards Board.

(b) The commissioner shall enter into agreements with these agencies to provide the
commissioner with electronic access to the relevant licensing data, and to provide the
commissioner with a quarterly list of new sanctions issued by the agency.

(c) The commissioner shall provide to the court the electronically available data
maintained in the agency's database, including whether the proposed guardian or conservator
is or has been licensed by the agency, and if the licensing agency database indicates a
disciplinary action or a sanction against the individual's license, including a condition,
suspension, revocation, or cancellation.

(d) If the proposed guardian or conservator has resided in a state other than Minnesota
in the previous ten years, licensing agency data under this section shall also include the
licensing agency data from any other state where the proposed guardian or conservator
reported to have resided during the previous ten years if the study subject indicates current
or prior affiliation. If the proposed guardian or conservator has or has had a professional
license in another state that is directly related to the responsibilities of a professional fiduciary
from one of the agencies listed under paragraph (a), state licensing agency data shall also
include data from the relevant licensing agency of that state.

(e) The commissioner is not required to repeat a search for Minnesota or out-of-state
licensing data on an individual if the commissioner has provided this information to the
court within the prior five years.

(f) The commissioner shall review the information in paragraph (c) at least once every
four months to determine if an individual who has been studied within the previous five
years:

(1) has new disciplinary action or sanction against the individual's license; or

(2) did not disclose a prior or current affiliation with a Minnesota licensing agency.

(g) If the commissioner's review in paragraph (f) identifies new information, the
commissioner shall provide any new information to the court.

Sec. 44. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the subdivisions in Minnesota Statutes, section
245C.02, in alphabetical order and correct any cross-reference changes that result.
new text end

Sec. 45. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, sections 245A.22; 245C.02, subdivision 9; 245C.301; and
256.9685, subdivisions 1c and 1d, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 9505.0505, subpart 18; and 9505.0520, subpart 9b, new text end new text begin are
repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-04212

245A.22 INDEPENDENT LIVING ASSISTANCE FOR YOUTH.

Subdivision 1.

Independent living assistance for youth.

"Independent living assistance for youth" means a nonresidential program that provides a system of services that includes training, counseling, instruction, supervision, and assistance provided to youth according to the youth's independent living plan, when the placements in the program are made by the county agency. Services may include assistance in locating housing, budgeting, meal preparation, shopping, personal appearance, counseling, and related social support services needed to meet the youth's needs and improve the youth's ability to conduct such tasks independently. Such services shall not extend to youths needing 24-hour per day supervision and services. Youths needing a 24-hour per day program of supervision and services shall not be accepted or retained in an independent living assistance program.

Subd. 2.

Admission.

(a) The license holder shall accept as clients in the independent living assistance program only youth ages 16 to 21 who are in out-of-home placement, leaving out-of-home placement, at risk of becoming homeless, or homeless.

(b) Youth who have current drug or alcohol problems, a recent history of violent behaviors, or a mental health disorder or issue that is not being resolved through counseling or treatment are not eligible to receive the services described in subdivision 1.

(c) Youth who are not employed, participating in employment training, or enrolled in an academic program are not eligible to receive transitional housing or independent living assistance.

(d) The commissioner may grant a variance under section 245A.04, subdivision 9, to requirements in this section.

Subd. 3.

Independent living plan.

(a) Unless an independent living plan has been developed by the local agency, the license holder shall develop a plan based on the client's individual needs that specifies objectives for the client. The services provided shall include those specified in this section. The plan shall identify the persons responsible for implementation of each part of the plan. The plan shall be reviewed as necessary, but at least annually.

(b) The following services, or adequate access to referrals for the following services, must be made available to the targeted youth participating in the programs described in subdivision 1:

(1) counseling services for the youth and their families, if appropriate, on site, to help with problems that contributed to the homelessness or could impede making the transition to independent living;

(2) educational, vocational, or employment services;

(3) health care;

(4) transportation services including, where appropriate, assisting the child in obtaining a driver's license;

(5) money management skills training;

(6) planning for ongoing housing;

(7) social and recreational skills training; and

(8) assistance establishing and maintaining connections with the child's family and community.

Subd. 4.

Records.

(a) The license holder shall maintain a record for each client.

(b) For each client the record maintained by the license holder shall document the following:

(1) admission information;

(2) the independent living plan;

(3) delivery of the services required of the license holder in the independent living plan;

(4) the client's progress toward obtaining the objectives identified in the independent living plan; and

(5) a termination summary after service is terminated.

(c) If the license holder manages the client's money, the record maintained by the license holder shall also include the following:

(1) written permission from the client or the client's legal guardian to manage the client's money;

(2) the reasons the license holder is to manage the client's money; and

(3) a complete record of the use of the client's money and reconciliation of the account.

Subd. 5.

Service termination plan.

The license holder, in conjunction with the county agency, shall establish a service termination plan that specifies how independent living assistance services will be terminated and the actions to be performed by the involved agencies, including necessary referrals for other ongoing services.

Subd. 6.

Place of residence provided by program.

When a client's place of residence is provided by the license holder as part of the independent living assistance program, the place of residence is not subject to separate licensure.

Subd. 7.

General licensing requirements apply.

In addition to the requirements of this section, providers of independent living assistance are subject to general licensing requirements of this chapter.

245C.02 DEFINITIONS.

Subd. 9.

Contractor.

"Contractor" means any individual, regardless of employer, who is providing program services for hire under the control of the provider.

245C.301 NOTIFICATION OF SET-ASIDE OR VARIANCE.

(a) Except as provided under paragraphs (b) and (c), if required by the commissioner, family child care providers and child care centers must provide a written notification to parents considering enrollment of a child or parents of a child attending the family child care or child care center if the program employs or has living in the home any individual who is the subject of either a set-aside or variance.

(b) Notwithstanding paragraph (a), family child care license holders are not required to disclose that the program has an individual living in the home who is the subject of a set-aside or variance if:

(1) the household member resides in the residence where the family child care is provided;

(2) the subject of the set-aside or variance is under the age of 18 years; and

(3) the set-aside or variance relates to a disqualification under section 245C.15, subdivision 4, for a misdemeanor-level theft crime as defined in section 609.52.

(c) The notice specified in paragraph (a) is not required when the period of disqualification in section 245C.15, subdivisions 2 to 4, has been exceeded.

256.9685 ESTABLISHMENT OF INPATIENT HOSPITAL PAYMENT SYSTEM.

Subd. 1c.

Judicial review.

A hospital, physician, advanced practice registered nurse, or physician assistant aggrieved by an order of the commissioner under subdivision 1b may appeal the order to the district court of the county in which the physician, advanced practice registered nurse, physician assistant, or hospital is located by:

(1) serving a written copy of a notice of appeal upon the commissioner within 30 days after the date the commissioner issued the order; and

(2) filing the original notice of appeal and proof of service with the court administrator of the district court. The appeal shall be treated as a dispositive motion under the Minnesota General Rules of Practice, rule 115. The district court scope of review shall be as set forth in section 14.69.

Subd. 1d.

Transmittal of record.

Within 30 days after being served with the notice of appeal, the commissioner shall transmit to the district court the original or certified copy of the entire record considered by the commissioner in making the final agency decision. The district court shall not consider evidence that was not included in the record before the commissioner.

Repealed Minnesota Rule: 23-04212

9505.0505 DEFINITIONS.

Subp. 18.

Medical review agent.

"Medical review agent" means the representative of the commissioner who is authorized by the commissioner to administer procedures for admission certifications, medical record reviews and reconsideration, and perform other functions as stipulated in the terms of the agent's contract with the department.

9505.0520 INPATIENT ADMISSION CERTIFICATION.

Subp. 9b.

Reconsideration; physician advisers appointed by medical review agent.

Upon receipt of a request for reconsideration under subpart 9, the medical review agent shall appoint at least three physician advisers who did not take part in the decision to deny or withdraw all or part of the admission certification. Each physician adviser shall determine the medical necessity of the admission or the continued stay or, in the case of a readmission, determine whether the admission and readmission meet the criteria in part 9505.0540. The reconsideration decision must be the majority opinion of the physician advisers. In making the decision, the three physician advisers shall use the criteria of medical necessity set out in part 9505.0530.