Minnesota Legislature
HF 2217
as introduced - 92nd Legislature (2021 - 2022) Posted on 03/17/2021 01:45pm
Bill Text Versions
| Engrossments | ||
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| Introduction | Posted on 03/15/2021 |
Current Version - as introduced
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A bill for an act
relating to human services; transferring child care assistance program fraud
investigation unit from Department of Human Services to Department of Public
Safety; amending Minnesota Statutes 2020, sections 245E.01, subdivisions 4, 7;
245E.02, subdivision 4; 245E.03, subdivisions 3, 4; 245E.06, subdivisions 1, 2,
3, 5; 245E.07.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 245E.01, subdivision 4, is amended to read:
Subd. 4.
Commissioner.
"Commissioner" means the commissioner of deleted text begin human servicesdeleted text end new text begin
public safety, unless otherwise indicatednew text end .
Sec. 2.
Minnesota Statutes 2020, section 245E.01, subdivision 7, is amended to read:
Subd. 7.
Department.
"Department" means the Department of deleted text begin Human Servicesdeleted text end new text begin Public
Safety, unless otherwise indicatednew text end .
Sec. 3.
Minnesota Statutes 2020, section 245E.02, subdivision 4, is amended to read:
Subd. 4.
Actions or administrative sanctions.
(a) After completing the determination
under subdivision 3, the department may take one or more of the actions or sanctions
specified in this subdivision.
(b) The department may take the following actions:
(1) refer the investigation to law enforcement or a county attorney for possible criminal
prosecution;
(2) refer relevant information to the deleted text begin department'sdeleted text end new text begin Department of Human Servicesnew text end licensing
division, the child care assistance program, the Department of Education, the federal Child
and Adult Care Food Program, or appropriate child or adult protection agency;new text begin or
new text end
(3) deleted text begin enter into a settlement agreement with a provider, license holder, controlling
individual, or recipient; or
deleted text end
deleted text begin (4)deleted text end refer the matter for review by a prosecutorial agency with appropriate jurisdiction
for possible civil action under the Minnesota False Claims Act, chapter 15C.
(c) In addition to section 256.98, the Department new text begin of Human Services new text end may new text begin enter into a
settlement agreement with a provider, license holder, controlling individual, or recipient,
or new text end impose sanctions by:
(1) pursuing administrative disqualification through hearings or waivers;
(2) establishing and seeking monetary recovery or recoupment;
(3) issuing an order of corrective action that states the practices that are violations of
child care assistance program policies, laws, or regulations, and that they must be corrected;
or
(4) suspending, denying, or terminating payments to a provider.
(d) Upon a finding by the commissioner new text begin of human services new text end that any child care provider,
center owner, director, manager, license holder, or other controlling individual of a child
care center has employed, used, or acted as a recruiter offering conditional employment for
a child care center that has received child care assistance program funding, the commissioner
new text begin of human services new text end shall:
(1) immediately suspend all program payments to all child care centers in which the
person employing, using, or acting as a recruiter offering conditional employment is an
owner, director, manager, license holder, or other controlling individual. The commissioner
new text begin of human services new text end shall suspend program payments under this clause even if services have
already been provided; and
(2) immediately and permanently revoke the licenses of all child care centers of which
the person employing, using, or acting as a recruiter offering conditional employment is an
owner, director, manager, license holder, or other controlling individual.
Sec. 4.
Minnesota Statutes 2020, section 245E.03, subdivision 3, is amended to read:
Subd. 3.
Notice of denial or termination.
When new text begin the commissioner of human services
receives notice that new text end a provider fails to provide access, a 15-day notice of denial or termination
must be issued to the provider, which prohibits the provider from participating in the child
care assistance program. Notice must be sent to recipients whose children are under the
provider's care pursuant to Minnesota Rules, part 3400.0185.
Sec. 5.
Minnesota Statutes 2020, section 245E.03, subdivision 4, is amended to read:
Subd. 4.
Continued or repeated failure to provide access.
If new text begin the commissioner of
human services receives notice that new text end the provider continues to fail to provide access at the
expiration of the 15-day notice period, child care assistance program payments to the provider
must be denied beginning the 16th day following notice of the initial failure or refusal to
provide access. The department may rescind the denial based upon good cause if the provider
submits in writing a good cause basis for having failed or refused to provide access. The
writing must be postmarked no later than the 15th day following the provider's notice of
initial failure to provide access. Additionally, the provider, license holder, or controlling
individual must immediately provide complete, ongoing access to the department. Repeated
failures to provide access must, after the initial failure or for any subsequent failure, result
in termination from participation in the child care assistance program.
Sec. 6.
Minnesota Statutes 2020, section 245E.06, subdivision 1, is amended to read:
Subdivision 1.
Factors regarding imposition of administrative sanctions.
(a) The
Department new text begin of Human Services new text end shall consider the following factors in determining the
administrative sanctions to be imposed:
(1) nature and extent of financial misconduct;
(2) history of financial misconduct;
(3) actions taken or recommended by other state agencies, other divisions of the
Departmentnew text begin of Human Servicesnew text end , and court and administrative decisions;
(4) prior imposition of sanctions;
(5) size and type of provider;
(6) information obtained through an investigation from any source;
(7) convictions or pending criminal charges; and
(8) any other information relevant to the acts or omissions related to the financial
misconduct.
(b) Any single factor under paragraph (a) may be determinative of the deleted text begin department'sdeleted text end
decision of whether and what sanctions are imposed.
Sec. 7.
Minnesota Statutes 2020, section 245E.06, subdivision 2, is amended to read:
Subd. 2.
Written notice of department sanction; sanction effective date; informal
meeting.
(a) The Department new text begin of Human Services new text end shall give notice in writing to a person of
an administrative sanction that is to be imposed. The notice shall be sent by mail as defined
in section 245E.01, subdivision 11.
(b) The notice shall state:
(1) the factual basis for the deleted text begin department'sdeleted text end determination;
(2) the sanction the Department new text begin of Human Services new text end intends to take;
(3) the dollar amount of the monetary recovery or recoupment, if any;
(4) how the dollar amount was computed;
(5) the right to dispute the deleted text begin department'sdeleted text end determination and to provide evidence;
(6) the right to appeal the deleted text begin department'sdeleted text end proposed sanction; and
(7) the option to meet informally with Departmentnew text begin of Human Servicesnew text end staff, and to bring
additional documentation or information, to resolve the issues.
(c) In cases of determinations resulting in denial or termination of payments, in addition
to the requirements of paragraph (b), the notice must state:
(1) the length of the denial or termination;
(2) the requirements and procedures for reinstatement; and
(3) the provider's right to submit documents and written arguments against the denial
or termination of payments for review deleted text begin by the departmentdeleted text end before the effective date of denial
or termination.
(d) The submission of documents and written argument for review deleted text begin by the departmentdeleted text end
under paragraph (b), clause (5) or (7), or paragraph (c), clause (3), does not stay the deadline
for filing an appeal.
(e) Notwithstanding section 245E.03, subdivision 4, the effective date of the proposed
sanction shall be 30 days after the license holder's, provider's, controlling individual's, or
recipient's receipt of the notice, unless timely appealed. If a timely appeal is made, the
proposed sanction shall be delayed pending the final outcome of the appeal. Implementation
of a proposed sanction following the resolution of a timely appeal may be postponed if, in
the opinion of the Departmentnew text begin of Human Servicesnew text end , the delay of sanction is necessary to
protect the health or safety of children in care. The Departmentnew text begin of Human Servicesnew text end may
consider the economic hardship of a person in implementing the proposed sanction, but
economic hardship shall not be a determinative factor in implementing the proposed sanction.
(f) Requests for an informal meeting to attempt to resolve issues and requests for appeals
must be sent or delivered to the department's Office of Inspector General, Financial Fraud
and Abuse Division.
Sec. 8.
Minnesota Statutes 2020, section 245E.06, subdivision 3, is amended to read:
Subd. 3.
Appeal of department action.
A provider's rights related to deleted text begin the department'sdeleted text end new text begin
annew text end action taken new text begin by the Department of Human Services new text end under this chapter against a provider
are established in sections 119B.16 and 119B.161.
Sec. 9.
Minnesota Statutes 2020, section 245E.06, subdivision 5, is amended to read:
Subd. 5.
Effect of department's administrative determination or sanction.
Unless a
timely and proper appeal is received deleted text begin by the departmentdeleted text end , the deleted text begin department'sdeleted text end administrative
determination or sanction shall be considered a final deleted text begin departmentdeleted text end determination.
Sec. 10.
Minnesota Statutes 2020, section 245E.07, is amended to read:
245E.07 MONETARY RECOVERY.
Subdivision 1.
Grounds for and methods of monetary recovery.
(a) The Department
new text begin of Human Services new text end may obtain monetary recovery from a provider who has been improperly
paid by the child care assistance program, regardless of whether the error was intentional
or county error. The Department new text begin of Human Services new text end does not need to establish a pattern as
a precondition of monetary recovery of erroneous or false billing claims, duplicate billing
claims, or billing claims based on false statements or financial misconduct.
(b) deleted text begin The department shall obtaindeleted text end Monetary recovery new text begin shall be obtained new text end from providers by
the following means:
(1) permitting voluntary repayment of money, either in lump-sum payment or installment
payments;
(2) using any legal collection process;
(3) deducting or withholding program payments; or
(4) utilizing the means set forth in chapter 16D.
Subd. 2.
Monetary recovery; random sample extrapolation.
The Departmentnew text begin of
Human Servicesnew text end is authorized to calculate the amount of monetary recovery from a provider,
license holder, or controlling individual based upon extrapolation from a statistical random
sample of claims submitted by the provider, license holder, or controlling individual and
paid by the child care assistance program. The deleted text begin department'sdeleted text end random sample extrapolation
shall constitute a rebuttable presumption of the accuracy of the calculation of monetary
recovery. If the presumption is not rebutted by the provider, license holder, or controlling
individual in the appeal process, the Department new text begin of Human Services new text end shall use the
extrapolation as the monetary recovery figure. The Department new text begin of Human Services new text end may
use sampling and extrapolation to calculate the amount of monetary recovery if the claims
to be reviewed represent services to 50 or more children in care.
Sec. 11. new text begin DIRECTION TO COMMISSIONER; CCAP FRAUD UNIT TRANSFER.
new text end
new text begin
By July 1, 2022, the commissioner of human services shall, in coordination with the
commissioner of public safety and pursuant to Minnesota Statutes, section 15.039, transfer
the unit responsible for conducting child care assistance investigations under Minnesota
Statutes, chapter 245E, from the Department of Human Services to the Bureau of Criminal
Apprehension within the Department of Public Safety. The transfer shall include all
employees, books, accounts, documents, data of any classification, and property that the
child care investigations unit needs to carry out the duties in Minnesota Statutes, chapter
245E.
new text end
Sec. 12. new text begin REVISOR INSTRUCTION.
new text end
new text begin
The revisor of statutes, in consultation with House Research Department; House Fiscal
Analysis; Office of Senate Counsel, Research and Fiscal Analysis; Department of Human
Services; and Department of Public Safety, shall prepare legislation for introduction in the
2022 legislative session proposing the statutory changes needed to implement the transfers
of duties required by this act.
new text end
Sec. 13. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 10 are effective July 1, 2022. Sections 11 and 12 are effective July 1, 2021.
new text end