HF 3051

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/22/2023 08:14am

A bill for an act
relating to human services; implementing Department of Human Services reporting
and licensing changes for a provider licensing and reporting hub; appropriating
money; amending Minnesota Statutes 2022, sections 245A.04, subdivisions 1, 7a;
245A.05; 245A.055, subdivision 2; 245A.06, subdivisions 1, 2, 4; 245A.07,
subdivision 3; 245A.16, by adding a subdivision; 245H.01, by adding a subdivision;
245H.03, subdivisions 2, 3, 4; 245H.06, subdivisions 1, 2; 245H.07, subdivisions
1, 2; 245I.20, subdivisions 10, 13, 14, 16; 260E.09; 270B.14, subdivision 1.

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

Section 1.

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 245A.03.

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. new text begin Upon implementation of the
provider licensing and reporting hub, applicants and license holders must use the hub in the
manner prescribed by the commissioner. new text end 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.

(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; and

(6) the notarized signature of the applicant or authorized agent.

(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.

(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. 2.

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

Subd. 7a.

Notification required.

(a) A license holder must notify the commissioner, in
a manner prescribed by the commissioner, and obtain the commissioner's approval before
making any change that would alter the license information listed under subdivision 7,
paragraph (a).

(b) A license holder must also notify the commissioner, in a manner prescribed by the
commissioner, before making any change:

(1) to the license holder's authorized agent as defined in section 245A.02, subdivision
3b;

(2) to the license holder's controlling individual as defined in section 245A.02, subdivision
5a;

(3) to the license holder information on file with the secretary of state;

(4) in the location of the program or service licensed under this chapter; and

(5) to the federal or state tax identification number associated with the license holder.

(c) When, for reasons beyond the license holder's control, a license holder cannot provide
the commissioner with prior notice of the changes in paragraph (b), clauses (1) to (3), the
license holder must notify the commissioner by the tenth business day after the change and
must provide any additional information requested by the commissioner.

(d) When a license holder notifies the commissioner of a change to the license holder
information on file with the secretary of state, the license holder must provide amended
articles of incorporation and other documentation of the change.

new text begin (e) Upon implementation of the provider licensing and reporting hub, license holders
must enter and update information in the hub in a manner prescribed by the commissioner.
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

Sec. 3.

Minnesota Statutes 2022, section 245A.05, is amended to read:

245A.05 DENIAL OF APPLICATION.

(a) The commissioner may deny a license if an applicant or controlling individual:

(1) fails to submit a substantially complete application after receiving notice from the
commissioner under section 245A.04, subdivision 1;

(2) fails to comply with applicable laws or rules;

(3) knowingly withholds relevant information from or gives false or misleading
information to the commissioner in connection with an application for a license or during
an investigation;

(4) has a disqualification that has not been set aside under section 245C.22 and no
variance has been granted;

(5) has an individual living in the household who received a background study under
section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that
has not been set aside under section 245C.22, and no variance has been granted;

(6) is associated with an individual who received a background study under section
245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to
children or vulnerable adults, and who has a disqualification that has not been set aside
under section 245C.22, and no variance has been granted;

(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);

(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision
6;

(9) has a history of noncompliance as a license holder or controlling individual with
applicable laws or rules, including but not limited to this chapter and chapters 119B and
245C;

(10) is prohibited from holding a license according to section 245.095; or

(11) for a family foster setting, has nondisqualifying background study information, as
described in section 245C.05, subdivision 4, that reflects on the individual's ability to safely
provide care to foster children.

(b) An applicant whose application has been denied by the commissioner must be given
notice of the denial, which must state the reasons for the denial in plain language. Notice
must be given by certified mail deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or through the provider licensing
and reporting hub new text end . The notice must state the reasons the application was denied and must
inform the applicant of the right to a contested case hearing under chapter 14 and Minnesota
Rules, parts 1400.8505 to 1400.8612. new text begin When an order is issued through the hub, the applicant
or license holder is deemed to have received the order upon the date of issuance through
the hub. new text end The applicant may appeal the denial by notifying the commissioner in writing by
certified mail deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or through the provider licensing and reporting hub new text end .
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 appeal request is made by personal
service new text begin or through the hub new text end , it must be received by the commissioner within 20 calendar days
after the applicant received the notice of denial. Section 245A.08 applies to hearings held
to appeal the commissioner's denial of an application.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2022, section 245A.055, subdivision 2, is amended to read:

Subd. 2.

Reconsideration of closure.

If a license is closed, the commissioner must
notify the license holder of closure by certified mail deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or through the
provider licensing and reporting hub new text end . If mailed, the notice of closure must be mailed to the
last known address of the license holder and must inform the license holder why the license
was closed and that the license holder has the right to request reconsideration of the closure.
If the license holder believes that the license was closed in error, the license holder may ask
the commissioner to reconsider the closure. The license holder's request for reconsideration
must be made in writing and must include documentation that the licensed program has
served a client in the previous 12 months. The request for reconsideration must be postmarked
and sent to the commissioner new text begin or submitted through the provider licensing and reporting hub
new text end within 20 calendar days after the license holder receives the notice of closure. new text begin Upon
implementation of the provider licensing and reporting hub, the provider must use the hub
to request reconsideration. If the order is issued through the provider hub, the reconsideration
must be received by the commissioner within 20 calendar days from the date the
commissioner issued the order through the hub. new text end A timely request for reconsideration stays
imposition of the license closure until the commissioner issues a decision on the request for
reconsideration.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2022, section 245A.06, subdivision 1, is amended to read:

Subdivision 1.

Contents of correction orders and conditional licenses.

(a) If the
commissioner finds that the applicant or license holder has failed to comply with an
applicable law or rule and this failure does not imminently endanger the health, safety, or
rights of the persons served by the program, the commissioner may issue a correction order
and an order of conditional license to the applicant or license holder. When issuing a
conditional license, the commissioner shall consider the nature, chronicity, or severity of
the violation of law or rule and the effect of the violation on the health, safety, or rights of
persons served by the program. The correction order or conditional license must state the
following in plain language:

(1) the conditions that constitute a violation of the law or rule;

(2) the specific law or rule violated;

(3) the time allowed to correct each violation; and

(4) if a license is made conditional, the length and terms of the conditional license, and
the reasons for making the license conditional.

(b) Nothing in this section prohibits the commissioner from proposing a sanction as
specified in section 245A.07, prior to issuing a correction order or conditional license.

new text begin (c) The commissioner may issue a correction order and an order of conditional license
to the applicant or license holder through the provider licensing and reporting hub. When
an order is issued through the hub, the applicant or license holder is deemed to have received
the order upon the date of issuance through the hub.
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

Sec. 6.

Minnesota Statutes 2022, section 245A.06, subdivision 2, is amended to read:

Subd. 2.

Reconsideration of correction orders.

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

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

(2) explain why they are in error; and

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

new text begin Upon implementation of the provider licensing and reporting hub, the provider must use
the hub to request reconsideration. new text end A request for reconsideration does not stay any provisions
or requirements of the correction order. The commissioner's disposition of a request for
reconsideration is final and not subject to appeal under chapter 14.

(b) This paragraph applies only to licensed family child care providers. A licensed family
child care provider who requests reconsideration of a correction order under paragraph (a)
may also request, on a form and in the manner prescribed by the commissioner, that the
commissioner expedite the review if:

(1) the provider is challenging a violation and provides a description of how complying
with the corrective action for that violation would require the substantial expenditure of
funds or a significant change to their program; and

(2) describes what actions the provider will take in lieu of the corrective action ordered
to ensure the health and safety of children in care pending the commissioner's review of the
correction order.

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.06, subdivision 4, is amended to read:

Subd. 4.

Notice of conditional license; reconsideration of conditional license.

new text begin (a) new text end If
a license is made conditional, the license holder must be notified of the order by certified
mail deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or through the provider licensing and reporting hub new text end . 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 the reasons the conditional license was ordered
and must inform the license holder of the right to request reconsideration of the conditional
license by the commissioner. The license holder may request reconsideration of the order
of conditional license by notifying the commissioner by certified mail deleted text begin or deleted text end new text begin , by new text end personal service new text begin ,
or through the provider licensing and reporting hub new text end . The request must be made in writing.
If sent by certified mail, the request must be postmarked and sent to the commissioner within
ten calendar days after the license holder received the order. If a request is made by personal
service new text begin or through the hub new text end , it must be received by the commissioner within ten calendar
days after the license holder received the order. The license holder may submit with the
request for reconsideration written argument or evidence in support of the request for
reconsideration. A timely request for reconsideration shall stay imposition of the terms of
the conditional license until the commissioner issues a decision on the request for
reconsideration. If the commissioner issues a dual order of conditional license under this
section and an order to pay a fine under section 245A.07, subdivision 3, the license holder
has a right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505
to 1400.8612. The scope of the contested case hearing shall include the fine and the
conditional license. In this case, a reconsideration of the conditional license will not be
conducted under this section. If the license holder does not appeal the fine, the license holder
does not have a right to a contested case hearing and a reconsideration of the conditional
license must be conducted under this subdivision.

new text begin (b) new text end The commissioner's disposition of a request for reconsideration is final and not
subject to appeal under chapter 14.

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.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; or

(5) revocation is required under section 245A.04, subdivision 7, paragraph (d).

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 deleted text begin or deleted text end new text begin , by new text end
personal service new text begin , or through the provider licensing and reporting hub new text end . 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. new text begin When an order is issued through the hub, the applicant
or license holder is deemed to have received the order upon the date of issuance through
the hub.
new text end

(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 deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or through the provider licensing and reporting
hub new text end . 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 new text begin or through the hub new text end , 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 deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or
through the provider licensing and reporting hub new text end . 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 new text begin or through
the hub new text end , 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 deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or through the provider licensing
and reporting hub new text end 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2022, section 245A.16, is amended by adding a subdivision to
read:

new text begin Subd. 10. new text end

new text begin Licensing and reporting hub. new text end

new text begin Upon implementation of the provider licensing
and reporting hub, county staff who perform licensing functions must use the hub in the
manner prescribed by the commissioner.
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

Sec. 10.

Minnesota Statutes 2022, section 245H.01, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Certification holder contact person. new text end

new text begin "Certification holder contact person"
means an individual designated by the organization who:
new text end

new text begin (1) oversees all center operators for the organization;
new text end

new text begin (2) acts as the authorized agent for background studies required in section 245H.10; and
new text end

new text begin (3) is authorized to be the designated contact person for communicating with the
commissioner regarding all items pursuant to chapter 245H.
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

Sec. 11.

Minnesota Statutes 2022, section 245H.03, subdivision 2, is amended to read:

Subd. 2.

Application submission.

The commissioner shall provide application
instructions and information about the rules and requirements of other state agencies that
affect the applicant. The certification application must be submitted in a manner prescribed
by the commissioner. new text begin Upon implementation of the provider licensing and reporting hub,
applicants must use the hub in the manner prescribed by the commissioner. new text end The commissioner
shall act on the application within 90 working days of receiving a completed application.

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 245H.03, subdivision 3, is amended to read:

Subd. 3.

Incomplete applications.

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 documents submitted do not meet certification
requirements, the commissioner shall provide the applicant written notice that the application
is incomplete or deficient. In the notice, the commissioner shall identify documents that are
missing or deficient and give the applicant 45 days to resubmit a second application that is
complete. An applicant's failure to submit a complete application after receiving notice from
the commissioner is basis for certification denial. new text begin For purposes of this section, when a denial
order is issued through the provider licensing and reporting hub, the applicant is deemed to
have received the order upon the date of issuance through the hub.
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

Sec. 13.

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

Subd. 4.

Reconsideration of certification denial.

(a) The applicant may request
reconsideration of the denial by notifying the commissioner by certified mail deleted text begin or deleted text end new text begin , by new text end personal
service new text begin , or through the provider licensing and reporting hub new text end . The request must be made in
writing. If sent by certified mail, the request must be postmarked and sent to the
commissioner within 20 calendar days after the applicant received the order. If a request is
made by personal service new text begin or through the hub new text end , it must be received by the commissioner within
20 calendar days after the applicant received the order. The applicant may submit with the
request for reconsideration a written argument or evidence in support of the request for
reconsideration.

(b) The commissioner's disposition of a request for reconsideration is final and not
subject to appeal under chapter 14.

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.

Minnesota Statutes 2022, section 245H.06, subdivision 1, is amended to read:

Subdivision 1.

Correction order requirements.

new text begin (a) new text end If the applicant or certification
holder failed to comply with a law or rule, the commissioner may issue a correction order.
The correction order must state:

(1) the condition that constitutes a violation of the law or rule;

(2) the specific law or rule violated; and

(3) the time allowed to correct each violation.

new text begin (b) The commissioner may issue a correction order to the applicant or certification holder
through the provider licensing and reporting hub. When an order is issued through the hub,
the applicant or certification is deemed to have received the order upon the date of issuance
through the hub.
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

Sec. 15.

Minnesota Statutes 2022, section 245H.06, subdivision 2, is amended to read:

Subd. 2.

Reconsideration request.

(a) If the applicant or certification holder believes
that the commissioner's correction order is erroneous, the applicant or certification holder
may ask the commissioner to reconsider the part of the correction order that is allegedly
erroneous. A request for reconsideration must be made in writing deleted text begin , deleted text end new text begin and new text end postmarked deleted text begin , deleted text end new text begin or
submitted through the provider licensing and reporting hub, new text end and sent to the commissioner
within 20 calendar days after the applicant or certification holder received the correction
order, and must:

(1) specify the part of the correction order that is allegedly erroneous;

(2) explain why the specified part is erroneous; and

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

(b) A request for reconsideration does not stay any provision or requirement of the
correction order. The commissioner's disposition of a request for reconsideration is final
and not subject to appeal.

new text begin (c) Upon implementation of the provider licensing and reporting hub, the provider must
use the hub to request reconsideration.
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

Sec. 16.

Minnesota Statutes 2022, section 245H.07, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) The commissioner may decertify a center if a certification
holder:

(1) failed to comply with an applicable law or rule;

(2) knowingly withheld relevant information from or gave false or misleading information
to the commissioner in connection with an application for certification, in connection with
the background study status of an individual, during an investigation, or regarding compliance
with applicable laws or rules; or

(3) has authorization to receive child care assistance payments revoked pursuant to
chapter 119B.

(b) When considering decertification, the commissioner shall consider the nature,
chronicity, or severity of the violation of law or rule.

(c) When a center is decertified, the center is ineligible to receive a child care assistance
payment under chapter 119B.

new text begin (d) The commissioner may issue a decertification order to a certification holder through
the provider licensing and reporting hub. When an order is issued through the hub, the
certification holder is deemed to have received the order upon the date of issuance through
the hub.
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

Sec. 17.

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

Subd. 2.

Reconsideration of decertification.

(a) The certification holder may request
reconsideration of the decertification by notifying the commissioner by certified mail deleted text begin or deleted text end new text begin ,
by new text end personal service new text begin , or through the provider licensing and reporting hub new text end . The request must
be made in writing. If sent by certified mail, the request must be postmarked and sent to the
commissioner within 20 calendar days after the certification holder received the order. If a
request is made by personal service new text begin or through the hub new text end , it must be received by the
commissioner within 20 calendar days after the certification holder received the order. With
the request for reconsideration, the certification holder may submit a written argument or
evidence in support of the request for reconsideration.

(b) The commissioner's disposition of a request for reconsideration is final and not
subject to appeal under chapter 14.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

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. new text begin Upon
implementation of the provider licensing and reporting hub, applicants must use the hub in
the manner prescribed by the commissioner.
new text end

(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 deleted text begin or deleted text end new text begin , by new text end personal
service new text begin , or through the provider licensing and reporting hub. When an order is issued through
the hub, the applicant is deemed to have received the order upon the date of issuance through
the hub new text end . 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 deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or through the provider licensing and reporting
hub new text end . 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 new text begin or through the hub new text end , the commissioner must receive the appeal
within 20 calendar days after the applicant received the notice of denial.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2022, section 245I.20, subdivision 13, is amended to read:

Subd. 13.

Correction orders.

(a) If the applicant or certification holder fails to comply
with a law or rule, the commissioner may issue a correction order. The correction order
must state:

(1) the condition that constitutes a violation of the law or rule;

(2) the specific law or rule that the applicant or certification holder has violated; and

(3) the time that the applicant or certification holder is allowed to correct each violation.

(b) If the applicant or certification holder believes that the commissioner's correction
order is erroneous, the applicant or certification holder may ask the commissioner to
reconsider the part of the correction order that is allegedly erroneous. An applicant or
certification holder must make a request for reconsideration in writing. The request must
be postmarked and sent to the commissioner new text begin or submitted in the provider licensing and
reporting hub new text end within 20 calendar days after the applicant or certification holder received
the correction order; and the request must:

(1) specify the part of the correction order that is allegedly erroneous;

(2) explain why the specified part is erroneous; and

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

(c) A request for reconsideration does not stay any provision or requirement of the
correction order. The commissioner's disposition of a request for reconsideration is final
and not subject to appeal.

(d) If the commissioner finds that the applicant or certification holder failed to correct
the violation specified in the correction order, the commissioner may decertify the certified
mental health clinic according to subdivision 14.

(e) Nothing in this subdivision prohibits the commissioner from decertifying a mental
health clinic according to subdivision 14.

new text begin (f) The commissioner may issue a correction order to the applicant or certification holder
through the provider licensing and reporting hub. When an order is issued through the hub,
the applicant or certification holder is deemed to have received the order upon the date of
issuance through the hub.
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

Sec. 20.

Minnesota Statutes 2022, section 245I.20, subdivision 14, is amended to read:

Subd. 14.

Decertification.

(a) The commissioner may decertify a mental health clinic
if a certification holder:

(1) failed to comply with an applicable law or rule; or

(2) knowingly withheld relevant information from or gave false or misleading information
to the commissioner in connection with an application for certification, during an
investigation, or regarding compliance with applicable laws or rules.

(b) When considering decertification of a mental health clinic, the commissioner must
consider the nature, chronicity, or severity of the violation of law or rule and the effect of
the violation on the health, safety, or rights of clients.

(c) If the commissioner decertifies a mental health clinic, the order of decertification
must inform the certification holder of the right to have a contested case hearing under
chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. new text begin The commissioner may
issue the order through the provider licensing and reporting hub. When an order is issued
through the hub, the certification holder is deemed to have received the order upon the date
of issuance through the hub. new text end The certification holder may appeal the decertification. The
certification holder must appeal a decertification in writing and send or deliver the appeal
to the commissioner by certified mail deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or through the provider
licensing and reporting hub new text end . If the certification holder mails the appeal, the appeal must be
postmarked and sent to the commissioner within ten calendar days after the certification
holder receives the order of decertification. If the certification holder delivers an appeal by
personal service new text begin or through the hub new text end , the commissioner must receive the appeal within ten
calendar days after the certification holder received the order. If a certification holder submits
a timely appeal of an order of decertification, the certification holder may continue to operate
the program until the commissioner issues a final order on the decertification.

(d) If the commissioner decertifies a mental health clinic pursuant to paragraph (a),
clause (1), based on a determination that the mental health clinic was responsible for
maltreatment, and if the certification holder appeals the decertification according to paragraph
(c), and appeals the maltreatment determination under section 260E.33, the final
decertification determination is stayed until the commissioner issues a final decision regarding
the maltreatment appeal.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2022, section 245I.20, subdivision 16, is amended to read:

Subd. 16.

Notifications required and noncompliance.

(a) A certification holder must
notify the commissioner, in a manner prescribed by the commissioner, and obtain the
commissioner's approval before making any change to the name of the certification holder
or the location of the mental health clinic. new text begin Upon implementation of the provider licensing
and reporting hub, certification holders must enter and update information in the hub in a
manner prescribed by the commissioner.
new text end

(b) Changes in mental health clinic organization, staffing, treatment, or quality assurance
procedures that affect the ability of the certification holder to comply with the minimum
standards of this section must be reported in writing by the certification holder to the
commissioner within 15 days of the occurrence. Review of the change must be conducted
by the commissioner. A certification holder with changes resulting in noncompliance in
minimum standards must receive written notice and may have up to 180 days to correct the
areas of noncompliance before being decertified. Interim procedures to resolve the
noncompliance on a temporary basis must be developed and submitted in writing to the
commissioner for approval within 30 days of the commissioner's determination of the
noncompliance. Not reporting an occurrence of a change that results in noncompliance
within 15 days, failure to develop an approved interim procedure within 30 days of the
determination of the noncompliance, or nonresolution of the noncompliance within 180
days will result in immediate decertification.

(c) The mental health clinic may be required to submit written information to the
department to document that the mental health clinic has maintained compliance with this
section and mental health clinic procedures.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2022, section 260E.09, is amended to read:

260E.09 REPORTING REQUIREMENTS.

(a) An oral report shall be made immediately by telephone or otherwise. An oral report
made by a person required under section 260E.06, subdivision 1, to report shall be followed
within 72 hours, exclusive of weekends and holidays, by a report in writing to the appropriate
police department, the county sheriff, the agency responsible for assessing or investigating
the report, or the local welfare agency.

(b) Any report shall be of sufficient content to identify the child, any person believed
to be responsible for the maltreatment of the child if the person is known, the nature and
extent of the maltreatment, and the name and address of the reporter. The local welfare
agency or agency responsible for assessing or investigating the report shall accept a report
made under section 260E.06 notwithstanding refusal by a reporter to provide the reporter's
name or address as long as the report is otherwise sufficient under this paragraph.

new text begin (c) Notwithstanding paragraph (a), upon implementation of the provider licensing and
reporting hub, an individual required to report under section 260E.06, subdivision 1, may
submit a written report in the hub in a manner prescribed by the commissioner and is not
required to make an oral report. Individuals submitting a report through the hub must comply
with the timelines in paragraph (a).
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

Sec. 23.

Minnesota Statutes 2022, section 270B.14, subdivision 1, is amended to read:

Subdivision 1.

Disclosure to commissioner of human services.

(a) On the request of
the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the
extent provided in paragraph (b) and for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating to the identity, whereabouts,
employment, income, and property of a person owing or alleged to be owing an obligation
of child support.

(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only as set
forth in section 256.978.

(d) The commissioner shall provide the records and information necessary to administer
the supplemental housing allowance to the commissioner of human services.

(e) At the request of the commissioner of human services, the commissioner of revenue
shall electronically match the Social Security numbers and names of participants in the
telephone assistance plan operated under sections 237.69 to 237.71, with those of property
tax refund filers, and determine whether each participant's household income is within the
eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and Human
Services to maintain the confidentiality of the data, the commissioner may provide records
and information collected under sections 295.50 to 295.59 to the Centers for Medicare and
Medicaid Services section of the United States Department of Health and Human Services
for purposes of meeting federal reporting requirements.

(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.

(h) The commissioner may disclose information to the commissioner of human services
as necessary for income verification for eligibility and premium payment under the
MinnesotaCare program, under section 256L.05, subdivision 2, as well as the medical
assistance program under chapter 256B.

(i) The commissioner may disclose information to the commissioner of human services
necessary to verify whether applicants or recipients for the Minnesota family investment
program, general assistance, the Supplemental Nutrition Assistance Program (SNAP),
Minnesota supplemental aid program, and child care assistance have claimed refundable
tax credits under chapter 290 and the property tax refund under chapter 290A, and the
amounts of the credits.

(j) The commissioner may disclose information to the commissioner of human services
necessary to verify income for purposes of calculating parental contribution amounts under
section 252.27, subdivision 2a.

new text begin (k) The commissioner shall disclose information to the commissioner of human services
to verify the income and tax identification information of:
new text end

new text begin (1) an applicant under section 245A.04, subdivision 1;
new text end

new text begin (2) an applicant under section 245I.20;
new text end

new text begin (3) an applicant under section 245H.03;
new text end

new text begin (4) a license holder; or
new text end

new text begin (5) a certification holder.
new text end

Sec. 24. new text begin APPROPRIATION; TECHNOLOGY SYSTEMS MODERNIZATION.
new text end

new text begin $79,907,000 in fiscal year 2024 and $49,545,000 in fiscal year 2025 are appropriated
from the general fund to the commissioner of human services to update and modernize
technology systems and make other service delivery improvements to support the
administration of health and human services programs, programs that support children and
families, and direct care and treatment programs. The general fund base for this appropriation
is $35,152,000 in fiscal year 2026 and $33,038,000 in fiscal year 2027.
new text end