1.1                          A bill for an act 
  1.2             relating to human services; making changes to 
  1.3             licensing provisions; amending Minnesota Statutes 
  1.4             2002, sections 245.814, subdivision 1; 245A.02, 
  1.5             subdivisions 2a, 5a, 7, 10, 14, by adding a 
  1.6             subdivision; 245A.03, subdivision 3; 245A.04, 
  1.7             subdivisions 5, 6, 7, by adding a subdivision; 
  1.8             245A.05; 245A.06, subdivisions 2, 4; 245A.07, 
  1.9             subdivisions 2, 2a, 3; 245A.08, subdivision 5; 
  1.10            245A.14, subdivision 4; 245A.16, subdivision 4; 
  1.11            245A.22, subdivision 2; 245B.02, by adding a 
  1.12            subdivision; 245B.05, subdivision 2; 245B.07, 
  1.13            subdivisions 8, 12; 252.28, subdivision 1; Minnesota 
  1.14            Statutes 2003 Supplement, sections 241.021, 
  1.15            subdivision 6; 245A.03, subdivision 2; 245A.04, 
  1.16            subdivision 1; 245A.08, subdivisions 1, 2a; 245A.085; 
  1.17            245A.11, subdivision 2b; 245A.16, subdivision 1; 
  1.18            245A.22, subdivision 3; 245C.02, subdivision 18; 
  1.19            245C.03, subdivision 1, by adding a subdivision; 
  1.20            245C.05, subdivisions 1, 2, 5, 6; 245C.08, 
  1.21            subdivisions 2, 3, 4; 245C.09, subdivision 1; 245C.13, 
  1.22            subdivision 1; 245C.14, subdivision 1; 245C.15, 
  1.23            subdivisions 2, 3, 4; 245C.16, subdivision 1; 245C.17, 
  1.24            subdivisions 1, 3; 245C.18; 245C.20; 245C.21, 
  1.25            subdivision 3, by adding a subdivision; 245C.22, 
  1.26            subdivisions 3, 4, 5, 6; 245C.23, subdivisions 1, 2; 
  1.27            245C.25; 245C.26; 245C.27, subdivisions 1, 2; 245C.28, 
  1.28            subdivisions 1, 2, 3; 245C.29, subdivision 2; 256.045, 
  1.29            subdivisions 3, 3b; 626.556, subdivision 10i; 626.557, 
  1.30            subdivision 9d; proposing coding for new law in 
  1.31            Minnesota Statutes, chapters 245A; 245B; repealing 
  1.32            Minnesota Statutes 2003 Supplement, section 245C.02, 
  1.33            subdivision 17; Minnesota Rules, parts 9525.1600; 
  1.34            9543.0040, subpart 3; 9543.1000; 9543.1010; 9543.1020; 
  1.35            9543.1030; 9543.1040; 9543.1050. 
  1.36  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.37                             ARTICLE 1 
  1.38                           HUMAN SERVICES 
  1.39     Section 1.  Minnesota Statutes 2002, section 245.814, 
  1.40  subdivision 1, is amended to read: 
  2.1      Subdivision 1.  [INSURANCE FOR FOSTER HOME PROVIDERS.] The 
  2.2   commissioner of human services shall within the appropriation 
  2.3   provided purchase and provide insurance to individuals licensed 
  2.4   as foster home providers to cover their liability for: 
  2.5      (1) injuries or property damage caused or sustained by 
  2.6   persons in foster care in their home; and 
  2.7      (2) actions arising out of alienation of affections 
  2.8   sustained by the birth parents of a foster child or birth 
  2.9   parents or children of a foster adult.  
  2.10     For purposes of this subdivision, insurance for homes 
  2.11  licensed to provide adult foster care shall be limited to family 
  2.12  adult foster care homes as defined in section 144D.01, 
  2.13  subdivision 7, and family adult day services licensed under 
  2.14  section 245A.143. 
  2.15     Sec. 2.  Minnesota Statutes 2002, section 245A.02, 
  2.16  subdivision 2a, is amended to read: 
  2.17     Subd. 2a.  [ADULT DAY CARE OR FAMILY ADULT DAY SERVICES.] 
  2.18  "Adult day care," ~~means~~ "adult day services," and "family adult 
  2.19  day services" mean a program operating less than 24 hours per 
  2.20  day that provides functionally impaired adults with an 
  2.21  individualized and coordinated set of services including health 
  2.22  services, social services, and nutritional services that are 
  2.23  directed at maintaining or improving the participants' 
  2.24  capabilities for self-care.  Adult day care ~~does~~, adult day 
  2.25  services, and family adult day services do not include programs 
  2.26  where adults gather or congregate primarily for purposes of 
  2.27  socialization, education, supervision, caregiver respite, 
  2.28  religious expression, exercise, or nutritious meals. 
  2.29     Sec. 3.  Minnesota Statutes 2002, section 245A.02, 
  2.30  subdivision 5a, is amended to read: 
  2.31     Subd. 5a.  [CONTROLLING INDIVIDUAL.] "Controlling 
  2.32  individual" means a public body, governmental agency, business 
  2.33  entity, officer, ~~program administrator, or director~~ owner, or 
  2.34  managerial official whose responsibilities include the direction 
  2.35  of the management or policies of a program.  ~~Controlling~~ 
  2.36  ~~individual also means an individual who, directly or indirectly,~~ 
  3.1   ~~beneficially owns an interest in a corporation, partnership, or~~ 
  3.2   ~~other business association that is a controlling individual~~ For 
  3.3   purposes of this subdivision, owner means an individual who has 
  3.4   direct or indirect ownership interest in a corporation, 
  3.5   partnership, or other business association issued a license 
  3.6   under this chapter.  For purposes of this subdivision, 
  3.7   managerial official means those individuals who have the 
  3.8   decision-making authority related to the operation of the 
  3.9   program, and the responsibility for the ongoing management of or 
  3.10  direction of the policies, services, or employees of the 
  3.11  program.  Controlling individual does not include: 
  3.12     (1) a bank, savings bank, trust company, savings 
  3.13  association, credit union, industrial loan and thrift company, 
  3.14  investment banking firm, or insurance company unless the entity 
  3.15  operates a program directly or through a subsidiary; 
  3.16     (2) an individual who is a state or federal official, or 
  3.17  state or federal employee, or a member or employee of the 
  3.18  governing body of a political subdivision of the state or 
  3.19  federal government that operates one or more programs, unless 
  3.20  the individual is also an officer, owner, or ~~director~~ managerial 
  3.21  official of the program, receives remuneration from the program, 
  3.22  or owns any of the beneficial interests not excluded in this 
  3.23  subdivision; 
  3.24     (3) an individual who owns less than five percent of the 
  3.25  outstanding common shares of a corporation: 
  3.26     (i) whose securities are exempt under section 80A.15, 
  3.27  subdivision 1, clause (f); or 
  3.28     (ii) whose transactions are exempt under section 80A.15, 
  3.29  subdivision 2, clause (b); or 
  3.30     (4) an individual who is a member of an organization exempt 
  3.31  from taxation under section 290.05, unless the individual is 
  3.32  also an officer, owner, or ~~director~~ managerial official of the 
  3.33  program or owns any of the beneficial interests not excluded in 
  3.34  this subdivision.  This clause does not exclude from the 
  3.35  definition of controlling individual an organization that is 
  3.36  exempt from taxation. 
  4.1      Sec. 4.  Minnesota Statutes 2002, section 245A.02, is 
  4.2   amended by adding a subdivision to read: 
  4.3      Subd. 6c.  [FOSTER CARE FOR ADULTS.] "Foster care for 
  4.4   adults" means a program operating 24 hours a day that provides 
  4.5   functionally impaired adults with food, lodging, protection, 
  4.6   supervision, and household services in a residence, in addition 
  4.7   to services according to the individual service plans under 
  4.8   Minnesota Rules, part 9555.5105, subpart 18. 
  4.9      Sec. 5.  Minnesota Statutes 2002, section 245A.02, 
  4.10  subdivision 7, is amended to read: 
  4.11     Subd. 7.  [FUNCTIONAL IMPAIRMENT.] For the purposes of 
  4.12  adult day care, adult day services, family adult day services, 
  4.13  or adult foster care, "functional impairment" means: 
  4.14     (1) a condition that is characterized by substantial 
  4.15  difficulty in carrying out one or more of the essential major 
  4.16  activities of daily living, such as caring for oneself, 
  4.17  performing manual tasks, walking, seeing, hearing, speaking, 
  4.18  breathing, learning, working; or 
  4.19     (2) a disorder of thought or mood that significantly 
  4.20  impairs judgment, behavior, capacity to recognize reality, or 
  4.21  ability to cope with the ordinary demands of life and that 
  4.22  requires support to maintain independence in the community. 
  4.23     Sec. 6.  Minnesota Statutes 2002, section 245A.02, 
  4.24  subdivision 10, is amended to read: 
  4.25     Subd. 10.  [NONRESIDENTIAL PROGRAM.] "Nonresidential 
  4.26  program" means care, supervision, rehabilitation, training or 
  4.27  habilitation of a person provided outside the person's own home 
  4.28  and provided for fewer than 24 hours a day, including adult day 
  4.29  care programs; ~~a nursing home that receives public funds to~~ 
  4.30  ~~provide services for five or more persons whose primary~~ 
  4.31  ~~diagnosis is mental retardation or a related condition or mental~~ 
  4.32  ~~illness and who do not have a significant physical or medical~~ 
  4.33  ~~problem that necessitates nursing home care; a nursing home or~~ 
  4.34  ~~hospital that was licensed by the commissioner on July 1, 1987,~~ 
  4.35  ~~to provide a program for persons with a physical handicap that~~ 
  4.36  ~~is not the result of the normal aging process and considered to~~ 
  5.1   ~~be a chronic condition;~~ and chemical dependency or chemical 
  5.2   abuse programs that are located in a nursing home or hospital 
  5.3   and receive public funds for providing chemical abuse or 
  5.4   chemical dependency treatment services under chapter 254B.  
  5.5   Nonresidential programs include home and community-based 
  5.6   services and semi-independent living services for persons with 
  5.7   mental retardation or a related condition that are provided in 
  5.8   or outside of a person's own home. 
  5.9      Sec. 7.  Minnesota Statutes 2002, section 245A.02, 
  5.10  subdivision 14, is amended to read: 
  5.11     Subd. 14.  [RESIDENTIAL PROGRAM.] "Residential program" 
  5.12  means a program that provides 24-hour-a-day care, supervision, 
  5.13  food, lodging, rehabilitation, training, education, 
  5.14  habilitation, or treatment outside a person's own home, 
  5.15  including ~~a nursing home or hospital that receives public funds,~~ 
  5.16  ~~administered by the commissioner, to provide services for five~~ 
  5.17  ~~or more persons whose primary diagnosis is mental retardation or~~ 
  5.18  ~~a related condition or mental illness and who do not have a~~ 
  5.19  ~~significant physical or medical problem that necessitates~~ 
  5.20  ~~nursing home care;~~ a program in an intermediate care facility 
  5.21  for four or more persons with mental retardation or a related 
  5.22  condition; ~~a nursing home or hospital that was licensed by the~~ 
  5.23  ~~commissioner on July 1, 1987, to provide a program for persons~~ 
  5.24  ~~with a physical handicap that is not the result of the normal~~ 
  5.25  ~~aging process and considered to be a chronic condition;~~ and 
  5.26  chemical dependency or chemical abuse programs that are located 
  5.27  in a hospital or nursing home and receive public funds for 
  5.28  providing chemical abuse or chemical dependency treatment 
  5.29  services under chapter 254B.  Residential programs include home 
  5.30  and community-based services for persons with mental retardation 
  5.31  or a related condition that are provided in or outside of a 
  5.32  person's own home. 
  5.33     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  5.34  245A.03, subdivision 2, is amended to read: 
  5.35     Subd. 2.  [EXCLUSION FROM LICENSURE.] (a) This chapter does 
  5.36  not apply to: 
  6.1      (1) residential or nonresidential programs that are 
  6.2   provided to a person by an individual who is related unless the 
  6.3   residential program is a child foster care placement made by a 
  6.4   local social services agency or a licensed child-placing agency, 
  6.5   except as provided in subdivision 2a; 
  6.6      (2) nonresidential programs that are provided by an 
  6.7   unrelated individual to persons from a single related family; 
  6.8      (3) residential or nonresidential programs that are 
  6.9   provided to adults who do not abuse chemicals or who do not have 
  6.10  a chemical dependency, a mental illness, mental retardation or a 
  6.11  related condition, a functional impairment, or a physical 
  6.12  handicap; 
  6.13     (4) sheltered workshops or work activity programs that are 
  6.14  certified by the commissioner of economic security; 
  6.15     (5) programs operated by a public school for children 
  6.16  ~~enrolled in kindergarten to the 12th grade and prekindergarten~~ 
  6.17  ~~special education in a school as defined in section 120A.22,~~ 
  6.18  ~~subdivision 4, and programs serving children in combined special~~ 
  6.19  ~~education and regular prekindergarten programs that are operated~~ 
  6.20  ~~or assisted by the commissioner of education~~ 33 months or older; 
  6.21     (6) nonresidential programs primarily for children that 
  6.22  provide care or supervision~~, without charge for ten or fewer~~ 
  6.23  ~~days a year, and~~ for periods of less than three hours a day 
  6.24  while the child's parent or legal guardian is in the same 
  6.25  building as the nonresidential program or present within another 
  6.26  building that is directly contiguous to the building in which 
  6.27  the nonresidential program is located; 
  6.28     (7) nursing homes or hospitals licensed by the commissioner 
  6.29  of health except as specified under section 245A.02; 
  6.30     (8) board and lodge facilities licensed by the commissioner 
  6.31  of health that provide services for five or more persons whose 
  6.32  primary diagnosis is mental illness ~~who have refused an~~ 
  6.33  ~~appropriate residential program offered by a county agency~~ that 
  6.34  do not provide intensive residential treatment; 
  6.35     (9) homes providing programs for persons placed there by a 
  6.36  licensed agency for legal adoption, unless the adoption is not 
  7.1   completed within two years; 
  7.2      (10) programs licensed by the commissioner of corrections; 
  7.3      (11) recreation programs for children or adults that 
  7.4   ~~operate for fewer than 40 calendar days in a calendar year or~~ 
  7.5   ~~programs operated~~ are operated or approved by a park and 
  7.6   recreation board ~~of a city of the first class~~ whose primary 
  7.7   purpose is to provide social and recreational activities ~~to~~ 
  7.8   ~~school age children, provided the program is approved by the~~ 
  7.9   ~~park and recreation board~~; 
  7.10     (12) programs operated by a school as defined in section 
  7.11  120A.22, subdivision 4, whose primary purpose is to provide 
  7.12  child care to school-age children~~, provided the program is~~ 
  7.13  ~~approved by the district's school board~~; 
  7.14     (13) Head Start nonresidential programs which operate for 
  7.15  less than 31 days in each calendar year; 
  7.16     (14) noncertified boarding care homes unless they provide 
  7.17  services for five or more persons whose primary diagnosis is 
  7.18  mental illness or mental retardation; 
  7.19     (15) nonresidential programs for ~~nonhandicapped~~ children 
  7.20  provided for a cumulative total of less than 30 days in any 
  7.21  12-month period; 
  7.22     (16) residential programs for persons with mental illness, 
  7.23  that are located in hospitals~~, until the commissioner adopts~~ 
  7.24  ~~appropriate rules~~; 
  7.25     (17) the religious instruction of school-age children; 
  7.26  Sabbath or Sunday schools; or the congregate care of children by 
  7.27  a church, congregation, or religious society during the period 
  7.28  used by the church, congregation, or religious society for its 
  7.29  regular worship; 
  7.30     (18) camps licensed by the commissioner of health under 
  7.31  Minnesota Rules, chapter 4630; 
  7.32     (19) mental health outpatient services for adults with 
  7.33  mental illness or children with emotional disturbance; 
  7.34     (20) residential programs serving school-age children whose 
  7.35  sole purpose is cultural or educational exchange, until the 
  7.36  commissioner adopts appropriate rules; 
  8.1      (21) unrelated individuals who provide out-of-home respite 
  8.2   care services to persons with mental retardation or related 
  8.3   conditions from a single related family for no more than 90 days 
  8.4   in a 12-month period and the respite care services are for the 
  8.5   temporary relief of the person's family or legal representative; 
  8.6      (22) respite care services provided as a home and 
  8.7   community-based service to a person with mental retardation or a 
  8.8   related condition, in the person's primary residence; 
  8.9      (23) community support services programs as defined in 
  8.10  section 245.462, subdivision 6, and family community support 
  8.11  services as defined in section 245.4871, subdivision 17; 
  8.12     (24) the placement of a child by a birth parent or legal 
  8.13  guardian in a preadoptive home for purposes of adoption as 
  8.14  authorized by section 259.47; 
  8.15     (25) settings registered under chapter 144D which provide 
  8.16  home care services licensed by the commissioner of health to 
  8.17  fewer than seven adults; or 
  8.18     (26) consumer-directed community support service funded 
  8.19  under the Medicaid waiver for persons with mental retardation 
  8.20  and related conditions when the individual who provided the 
  8.21  service is:  
  8.22     (i) the same individual who is the direct payee of these 
  8.23  specific waiver funds or paid by a fiscal agent, fiscal 
  8.24  intermediary, or employer of record; and 
  8.25     (ii) not otherwise under the control of a residential or 
  8.26  nonresidential program that is required to be licensed under 
  8.27  this chapter when providing the service. 
  8.28     (b) For purposes of paragraph (a), clause (6), a building 
  8.29  is directly contiguous to a building in which a nonresidential 
  8.30  program is located if it shares a common wall with the building 
  8.31  in which the nonresidential program is located or is attached to 
  8.32  that building by skyway, tunnel, atrium, or common roof. 
  8.33     (c) Nothing in this chapter shall be construed to require 
  8.34  licensure for any services provided and funded according to an 
  8.35  approved federal waiver plan where licensure is specifically 
  8.36  identified as not being a condition for the services and funding.
  9.1      Sec. 9.  Minnesota Statutes 2002, section 245A.03, 
  9.2   subdivision 3, is amended to read: 
  9.3      Subd. 3.  [UNLICENSED PROGRAMS.] (a) It is a misdemeanor 
  9.4   for an individual, corporation, partnership, voluntary 
  9.5   association, other organization, or a controlling individual to 
  9.6   provide a residential or nonresidential program without a 
  9.7   license and in willful disregard of this chapter unless the 
  9.8   program is excluded from licensure under subdivision 2. 
  9.9      (b) ~~If, after receiving notice that a license is required,~~ 
  9.10  ~~the individual, corporation, partnership, voluntary association,~~ 
  9.11  ~~other organization, or controlling individual has failed to~~ 
  9.12  ~~apply for a license,~~ The commissioner may ask the appropriate 
  9.13  county attorney or the attorney general to begin proceedings to 
  9.14  secure a court order against the continued operation of the 
  9.15  program, if an individual, corporation, partnership, voluntary 
  9.16  association, other organization, or controlling individual has:  
  9.17  (1) failed to apply for a license after receiving notice that a 
  9.18  license is required; (2) continued to operate without a license 
  9.19  after the license has been revoked or suspended under section 
  9.20  245A.07, and the commissioner has issued a final order affirming 
  9.21  the revocation or suspension, or the license holder did not 
  9.22  timely appeal the sanction; or (3) continued to operate without 
  9.23  a license after the license has been temporarily suspended under 
  9.24  section 245A.07.  The county attorney and the attorney general 
  9.25  have a duty to cooperate with the commissioner.  
  9.26     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
  9.27  245A.04, subdivision 1, is amended to read: 
  9.28     Subdivision 1.  [APPLICATION FOR LICENSURE.] (a) An 
  9.29  individual, corporation, partnership, voluntary association, 
  9.30  other organization or controlling individual that is subject to 
  9.31  licensure under section 245A.03 must apply for a license.  The 
  9.32  application must be made on the forms and in the manner 
  9.33  prescribed by the commissioner.  The commissioner shall provide 
  9.34  the applicant with instruction in completing the application and 
  9.35  provide information about the rules and requirements of other 
  9.36  state agencies that affect the applicant.  An applicant seeking 
 10.1   licensure in Minnesota with headquarters outside of Minnesota 
 10.2   must have a program office located within the state.  
 10.3      The commissioner shall act on the application within 90 
 10.4   working days after a complete application and any required 
 10.5   reports have been received from other state agencies or 
 10.6   departments, counties, municipalities, or other political 
 10.7   subdivisions.  The commissioner shall not consider an 
 10.8   application to be complete until the commissioner receives all 
 10.9   of the information required under section 245C.05. 
 10.10     (b) An application for licensure must specify one or more 
 10.11  controlling individuals as an agent who is responsible for 
 10.12  dealing with the commissioner of human services on all matters 
 10.13  provided for in this chapter and on whom service of all notices 
 10.14  and orders must be made.  The agent must be authorized to accept 
 10.15  service on behalf of all of the controlling individuals of the 
 10.16  program.  Service on the agent is service on all of the 
 10.17  controlling individuals of the program.  It is not a defense to 
 10.18  any action arising under this chapter that service was not made 
 10.19  on each controlling individual of the program.  The designation 
 10.20  of one or more controlling individuals as agents under this 
 10.21  paragraph does not affect the legal responsibility of any other 
 10.22  controlling individual under this chapter. 
 10.23     (c) An applicant or license holder must have a policy that 
 10.24  prohibits license holders, employees, subcontractors, and 
 10.25  volunteers, when directly responsible for persons served by the 
 10.26  program, from abusing prescription medication or being in any 
 10.27  manner under the influence of a chemical that impairs the 
 10.28  individual's ability to provide services or care.  The license 
 10.29  holder must train employees, subcontractors, and volunteers 
 10.30  about the program's drug and alcohol policy. 
 10.31     (d) An applicant and license holder must have a program 
 10.32  grievance procedure that permits persons served by the program 
 10.33  and their authorized representatives to bring a grievance to the 
 10.34  highest level of authority in the program. 
 10.35     Sec. 11.  Minnesota Statutes 2002, section 245A.04, 
 10.36  subdivision 5, is amended to read: 
 11.1      Subd. 5.  [COMMISSIONER'S RIGHT OF ACCESS.] When the 
 11.2   commissioner is exercising the powers conferred by this 
 11.3   chapter and section 245.69, the commissioner must be given 
 11.4   access to the physical plant and grounds where the program is 
 11.5   provided, documents, persons served by the program, and staff 
 11.6   whenever the program is in operation and the information is 
 11.7   relevant to inspections or investigations conducted by the 
 11.8   commissioner.  The commissioner must be given access without 
 11.9   prior notice and as often as the commissioner considers 
 11.10  necessary if the commissioner is conducting an investigation of 
 11.11  allegations of maltreatment or other violation of applicable 
 11.12  laws or rules.  In conducting inspections, the commissioner may 
 11.13  request and shall receive assistance from other state, county, 
 11.14  and municipal governmental agencies and departments.  The 
 11.15  applicant or license holder shall allow the commissioner to 
 11.16  photocopy, photograph, and make audio and video tape recordings 
 11.17  during the inspection of the program at the commissioner's 
 11.18  expense.  The commissioner shall obtain a court order or the 
 11.19  consent of the subject of the records or the parents or legal 
 11.20  guardian of the subject before photocopying hospital medical 
 11.21  records.  
 11.22     Persons served by the program have the right to refuse to 
 11.23  consent to be interviewed, photographed, or audio or videotaped. 
 11.24  Failure or refusal of an applicant or license holder to fully 
 11.25  comply with this subdivision is reasonable cause for the 
 11.26  commissioner to deny the application or immediately suspend or 
 11.27  revoke the license. 
 11.28     Sec. 12.  Minnesota Statutes 2002, section 245A.04, 
 11.29  subdivision 6, is amended to read: 
 11.30     Subd. 6.  [COMMISSIONER'S EVALUATION.] Before issuing, 
 11.31  denying, suspending, revoking, or making conditional a license, 
 11.32  the commissioner shall evaluate information gathered under this 
 11.33  section.  The commissioner's evaluation shall consider facts, 
 11.34  conditions, or circumstances concerning the program's operation, 
 11.35  the well-being of persons served by the program, available 
 11.36  consumer evaluations of the program, and information about the 
 12.1   qualifications of the personnel employed by the applicant or 
 12.2   license holder. 
 12.3      The commissioner shall evaluate the results of the study 
 12.4   required in subdivision 3 and determine whether a risk of harm 
 12.5   to the persons served by the program exists.  In conducting this 
 12.6   evaluation, the commissioner shall apply the disqualification 
 12.7   standards set forth in ~~rules adopted under this~~ chapter 245C.  
 12.8      Sec. 13.  Minnesota Statutes 2002, section 245A.04, 
 12.9   subdivision 7, is amended to read: 
 12.10     Subd. 7.  [ISSUANCE OF A LICENSE; EXTENSION OF A LICENSE.] 
 12.11  (a) If the commissioner determines that the program complies 
 12.12  with all applicable rules and laws, the commissioner shall issue 
 12.13  a license.  At minimum, the license shall state:  
 12.14     (1) the name of the license holder; 
 12.15     (2) the address of the program; 
 12.16     (3) the effective date and expiration date of the license; 
 12.17     (4) the type of license; 
 12.18     (5) the maximum number and ages of persons that may receive 
 12.19  services from the program; and 
 12.20     (6) any special conditions of licensure. 
 12.21     (b) The commissioner may issue an initial license for a 
 12.22  period not to exceed two years if:  
 12.23     (1) the commissioner is unable to conduct the evaluation or 
 12.24  observation required by subdivision 4, paragraph (a), clauses (3)
 12.25  and (4), because the program is not yet operational; 
 12.26     (2) certain records and documents are not available because 
 12.27  persons are not yet receiving services from the program; and 
 12.28     (3) the applicant complies with applicable laws and rules 
 12.29  in all other respects.  
 12.30     (c) A decision by the commissioner to issue a license does 
 12.31  not guarantee that any person or persons will be placed or cared 
 12.32  for in the licensed program.  A license shall not be 
 12.33  transferable to another individual, corporation, partnership, 
 12.34  voluntary association, other organization, or controlling or to 
 12.35  another location. 
 12.36     (d) A license holder must notify the commissioner and 
 13.1   obtain the commissioner's approval before making any changes 
 13.2   that would alter the license information listed under paragraph 
 13.3   (a). 
 13.4      (e) The commissioner shall not issue a license if the 
 13.5   applicant, license holder, or controlling individual has:  (1) 
 13.6   been disqualified and the disqualification was not set aside; 
 13.7   (2) has been denied a license within the past two years; or (3) 
 13.8   had a license revoked within the past five years. 
 13.9      For purposes of reimbursement for meals only, under the 
 13.10  Child and Adult Care Food Program, Code of Federal Regulations, 
 13.11  title 7, subtitle B, chapter II, subchapter A, part 226, 
 13.12  relocation within the same county by a licensed family day care 
 13.13  provider, shall be considered an extension of the license for a 
 13.14  period of no more than 30 calendar days or until the new license 
 13.15  is issued, whichever occurs first, provided the county agency 
 13.16  has determined the family day care provider meets licensure 
 13.17  requirements at the new location. 
 13.18     Unless otherwise specified by statute, all licenses expire 
 13.19  at 12:01 a.m. on the day after the expiration date stated on the 
 13.20  license.  A license holder must apply for and be granted a new 
 13.21  license to operate the program or the program must not be 
 13.22  operated after the expiration date.  
 13.23     Sec. 14.  Minnesota Statutes 2002, section 245A.04, is 
 13.24  amended by adding a subdivision to read: 
 13.25     Subd. 13.  [RESIDENTIAL PROGRAMS HANDLING RESIDENT FUNDS 
 13.26  AND PROPERTY; ADDITIONAL REQUIREMENTS.] (a) A license holder 
 13.27  must ensure that residents retain the use and availability of 
 13.28  personal funds or property unless restrictions are justified in 
 13.29  the resident's individual plan. 
 13.30     (b) The license holder must ensure separation of resident 
 13.31  funds from funds of the license holder, the residential program, 
 13.32  or program staff. 
 13.33     (c) Whenever the license holder assists a resident with the 
 13.34  safekeeping of funds or other property, the license holder must: 
 13.35     (1) immediately document receipt and disbursement of the 
 13.36  resident's funds or other property at the time of receipt or 
 14.1   disbursement, including the signature of the resident, 
 14.2   conservator, or payee; 
 14.3      (2) provide a statement, at least quarterly, itemizing 
 14.4   receipts and disbursements of resident funds or other property; 
 14.5   and 
 14.6      (3) return to the resident upon the resident's request, 
 14.7   funds and property in the license holder's possession subject to 
 14.8   restrictions in the resident's treatment plan, as soon as 
 14.9   possible, but no later than three working days after the date of 
 14.10  request. 
 14.11     (d) License holders and program staff must not: 
 14.12     (1) borrow money from a resident; 
 14.13     (2) purchase personal items from a resident; 
 14.14     (3) sell merchandise or personal services to a resident; 
 14.15     (4) require a resident to purchase items for which the 
 14.16  license holder is eligible for reimbursement; or 
 14.17     (5) use resident funds to purchase items for which the 
 14.18  facility is already receiving public or private payments. 
 14.19     Sec. 15.  Minnesota Statutes 2002, section 245A.05, is 
 14.20  amended to read: 
 14.21     245A.05 [DENIAL OF APPLICATION.] 
 14.22     The commissioner may deny a license if an applicant fails 
 14.23  to comply with applicable laws or rules, or knowingly withholds 
 14.24  relevant information from or gives false or misleading 
 14.25  information to the commissioner in connection with an 
 14.26  application for a license or during an investigation.  An 
 14.27  applicant whose application has been denied by the commissioner 
 14.28  must be given notice of the denial.  Notice must be given by 
 14.29  certified mail or personal service.  The notice must state the 
 14.30  reasons the application was denied and must inform the applicant 
 14.31  of the right to a contested case hearing under chapter 14 and 
 14.32  Minnesota Rules, parts ~~1400.8510~~ 1400.8505 to 1400.8612 ~~and~~ 
 14.33  ~~successor rules~~.  The applicant may appeal the denial by 
 14.34  notifying the commissioner in writing by certified mail or 
 14.35  personal service within 20 calendar days after receiving notice 
 14.36  that the application was denied.  Section 245A.08 applies to 
 15.1   hearings held to appeal the commissioner's denial of an 
 15.2   application. 
 15.3      Sec. 16.  Minnesota Statutes 2002, section 245A.06, 
 15.4   subdivision 2, is amended to read: 
 15.5      Subd. 2.  [RECONSIDERATION OF CORRECTION ORDERS.] If the 
 15.6   applicant or license holder believes that the contents of the 
 15.7   commissioner's correction order are in error, the applicant or 
 15.8   license holder may ask the Department of Human Services to 
 15.9   reconsider the parts of the correction order that are alleged to 
 15.10  be in error.  The request for reconsideration must be made in 
 15.11  writing and ~~received by~~ must be postmarked and sent to the 
 15.12  commissioner within 20 calendar days after receipt of the 
 15.13  correction order by the applicant or license holder, and: 
 15.14     (1) specify the parts of the correction order that are 
 15.15  alleged to be in error; 
 15.16     (2) explain why they are in error; and 
 15.17     (3) include documentation to support the allegation of 
 15.18  error. 
 15.19     A request for reconsideration does not stay any provisions 
 15.20  or requirements of the correction order.  The commissioner's 
 15.21  disposition of a request for reconsideration is final and not 
 15.22  subject to appeal under chapter 14. 
 15.23     Sec. 17.  Minnesota Statutes 2002, section 245A.06, 
 15.24  subdivision 4, is amended to read: 
 15.25     Subd. 4.  [NOTICE OF CONDITIONAL LICENSE; RECONSIDERATION 
 15.26  OF CONDITIONAL LICENSE.] If a license is made conditional, the 
 15.27  license holder must be notified of the order by certified 
 15.28  mail or personal service.  If mailed, the notice must be mailed 
 15.29  to the address shown on the application or the last known 
 15.30  address of the license holder.  The notice must state the 
 15.31  reasons the conditional license was ordered and must inform the 
 15.32  license holder of the right to request reconsideration of the 
 15.33  conditional license by the commissioner.  The license holder may 
 15.34  request reconsideration of the order of conditional license by 
 15.35  notifying the commissioner by certified mail or personal 
 15.36  service.  The request must be made in writing ~~and~~.  If sent by 
 16.1   certified mail, the request must be ~~received by~~ postmarked and 
 16.2   sent to the commissioner within ten calendar days after the 
 16.3   license holder received the order.  If a request is made by 
 16.4   personal service, it must be received by the commissioner within 
 16.5   ten calendar days after the license holder received the order.  
 16.6   The license holder may submit with the request for 
 16.7   reconsideration written argument or evidence in support of the 
 16.8   request for reconsideration.  A timely request for 
 16.9   reconsideration shall stay imposition of the terms of the 
 16.10  conditional license until the commissioner issues a decision on 
 16.11  the request for reconsideration.  If the commissioner issues a 
 16.12  dual order of conditional license under this section and an 
 16.13  order to pay a fine under section 245A.07, subdivision 3, the 
 16.14  license holder has a right to a contested case hearing under 
 16.15  chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612.  
 16.16  The scope of the contested case hearing shall include the fine 
 16.17  and the conditional license.  In this case, a reconsideration of 
 16.18  the conditional license will not be conducted under this section.
 16.19     The commissioner's disposition of a request for 
 16.20  reconsideration is final and not subject to appeal under chapter 
 16.21  14. 
 16.22     Sec. 18.  Minnesota Statutes 2002, section 245A.07, 
 16.23  subdivision 2, is amended to read: 
 16.24     Subd. 2.  [TEMPORARY IMMEDIATE SUSPENSION.] If the license 
 16.25  holder's actions or failure to comply with applicable law or 
 16.26  rule ~~poses~~, or the actions of other individuals or conditions in 
 16.27  the program pose an imminent risk of harm to the health, safety, 
 16.28  or rights of persons served by the program, the commissioner 
 16.29  shall act immediately to temporarily suspend the license.  No 
 16.30  state funds shall be made available or be expended by any agency 
 16.31  or department of state, county, or municipal government for use 
 16.32  by a license holder regulated under this chapter while a license 
 16.33  is under immediate suspension.  A notice stating the reasons for 
 16.34  the immediate suspension and informing the license holder of the 
 16.35  right to an expedited hearing under chapter 14 and Minnesota 
 16.36  Rules, parts ~~1400.8510~~ 1400.8505 to 1400.8612 ~~and successor~~ 
 17.1   ~~rules~~, must be delivered by personal service to the address 
 17.2   shown on the application or the last known address of the 
 17.3   license holder.  The license holder may appeal an order 
 17.4   immediately suspending a license.  The appeal of an order 
 17.5   immediately suspending a license must be made in writing by 
 17.6   certified mail ~~and~~ or personal service.  If mailed, the appeal 
 17.7   must be postmarked and sent to the commissioner within five 
 17.8   calendar days after the license holder receives notice that the 
 17.9   license has been immediately suspended.  If a request is made by 
 17.10  personal service, it must be received by the commissioner within 
 17.11  five calendar days after the license holder received the order.  
 17.12  A license holder and any controlling individual shall 
 17.13  discontinue operation of the program upon receipt of the 
 17.14  commissioner's order to immediately suspend the license. 
 17.15     Sec. 19.  Minnesota Statutes 2002, section 245A.07, 
 17.16  subdivision 2a, is amended to read: 
 17.17     Subd. 2a.  [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 
 17.18  Within five working days of receipt of the license holder's 
 17.19  timely appeal, the commissioner shall request assignment of an 
 17.20  administrative law judge.  The request must include a proposed 
 17.21  date, time, and place of a hearing.  A hearing must be conducted 
 17.22  by an administrative law judge within 30 calendar days of the 
 17.23  request for assignment, unless an extension is requested by 
 17.24  either party and granted by the administrative law judge for 
 17.25  good cause.  The commissioner shall issue a notice of hearing by 
 17.26  certified mail or personal service at least ten working days 
 17.27  before the hearing.  The scope of the hearing shall be limited 
 17.28  solely to the issue of whether the temporary immediate 
 17.29  suspension should remain in effect pending the commissioner's 
 17.30  final order under section 245A.08, regarding a licensing 
 17.31  sanction issued under subdivision 3 following the immediate 
 17.32  suspension.  The burden of proof in expedited hearings under 
 17.33  this subdivision shall be limited to the commissioner's 
 17.34  demonstration that reasonable cause exists to believe that the 
 17.35  license holder's actions or failure to comply with applicable 
 17.36  law or rule poses an imminent risk of harm to the health, 
 18.1   safety, or rights of persons served by the program.  
 18.2      (b) The administrative law judge shall issue findings of 
 18.3   fact, conclusions, and a recommendation within ten working days 
 18.4   from the date of hearing.  The parties shall have ten calendar 
 18.5   days to submit exceptions to the administrative law judge's 
 18.6   report.  The record shall close at the end of the ten-day period 
 18.7   for submission of exceptions.  The commissioner's final order 
 18.8   shall be issued within ten working days from ~~receipt of the~~ 
 18.9   ~~recommendation of the administrative law judge~~ the close of the 
 18.10  record.  Within 90 calendar days after a final order affirming 
 18.11  an immediate suspension, the commissioner shall make a 
 18.12  determination regarding whether a final licensing sanction shall 
 18.13  be issued under subdivision 3.  The license holder shall 
 18.14  continue to be prohibited from operation of the program during 
 18.15  this 90-day period.  
 18.16     (c) When the final order under paragraph (b) affirms an 
 18.17  immediate suspension, and a final licensing sanction is issued 
 18.18  under subdivision 3 and the license holder appeals that 
 18.19  sanction, the license holder continues to be prohibited from 
 18.20  operation of the program pending a final commissioner's order 
 18.21  under section 245A.08, subdivision 5, regarding the final 
 18.22  licensing sanction. 
 18.23     Sec. 20.  Minnesota Statutes 2002, section 245A.07, 
 18.24  subdivision 3, is amended to read: 
 18.25     Subd. 3.  [LICENSE SUSPENSION, REVOCATION, OR FINE.] The 
 18.26  commissioner may suspend or revoke a license, or impose a fine 
 18.27  if a license holder fails to comply fully with applicable laws 
 18.28  or rules, has a disqualification which has not been set aside 
 18.29  under section 245C.22, or knowingly withholds relevant 
 18.30  information from or gives false or misleading information to the 
 18.31  commissioner in connection with an application for a license, in 
 18.32  connection with the background study status of an individual, or 
 18.33  during an investigation.  A license holder who has had a license 
 18.34  suspended, revoked, or has been ordered to pay a fine must be 
 18.35  given notice of the action by certified mail or personal 
 18.36  service.  If mailed, the notice must be mailed to the address 
 19.1   shown on the application or the last known address of the 
 19.2   license holder.  The notice must state the reasons the license 
 19.3   was suspended, revoked, or a fine was ordered. 
 19.4      (a) If the license was suspended or revoked, the notice 
 19.5   must inform the license holder of the right to a contested case 
 19.6   hearing under chapter 14 and Minnesota Rules, parts ~~1400.8510~~ 
 19.7   1400.8505 to 1400.8612 ~~and successor rules~~.  The license holder 
 19.8   may appeal an order suspending or revoking a license.  The 
 19.9   appeal of an order suspending or revoking a license must be made 
 19.10  in writing by certified mail ~~and~~ or personal service.  If 
 19.11  mailed, the appeal must be postmarked and sent to the 
 19.12  commissioner within ten calendar days after the license holder 
 19.13  receives notice that the license has been suspended or revoked.  
 19.14  If a request is made by personal service, it must be received by 
 19.15  the commissioner within ten calendar days after the license 
 19.16  holder received the order.  Except as provided in subdivision 
 19.17  2a, paragraph (c), a timely appeal of an order suspending or 
 19.18  revoking a license shall stay the suspension or revocation until 
 19.19  the commissioner issues a final order.  
 19.20     (b)(1) If the license holder was ordered to pay a fine, the 
 19.21  notice must inform the license holder of the responsibility for 
 19.22  payment of fines and the right to a contested case hearing under 
 19.23  chapter 14 and Minnesota Rules, parts ~~1400.8510~~ 1400.8505 to 
 19.24  1400.8612 ~~and successor rules~~.  The appeal of an order to pay a 
 19.25  fine must be made in writing by certified mail ~~and~~ or personal 
 19.26  service.  If mailed, the appeal must be postmarked and sent to 
 19.27  the commissioner within ten calendar days after the license 
 19.28  holder receives notice that the fine has been ordered.  If a 
 19.29  request is made by personal service, it must be received by the 
 19.30  commissioner within ten calendar days after the license holder 
 19.31  received the order.  
 19.32     (2) The license holder shall pay the fines assessed on or 
 19.33  before the payment date specified.  If the license holder fails 
 19.34  to fully comply with the order, the commissioner may issue a 
 19.35  second fine or suspend the license until the license holder 
 19.36  complies.  If the license holder receives state funds, the 
 20.1   state, county, or municipal agencies or departments responsible 
 20.2   for administering the funds shall withhold payments and recover 
 20.3   any payments made while the license is suspended for failure to 
 20.4   pay a fine.  A timely appeal shall stay payment of the fine 
 20.5   until the commissioner issues a final order.  
 20.6      (3) A license holder shall promptly notify the commissioner 
 20.7   of human services, in writing, when a violation specified in the 
 20.8   order to forfeit a fine is corrected.  If upon reinspection the 
 20.9   commissioner determines that a violation has not been corrected 
 20.10  as indicated by the order to forfeit a fine, the commissioner 
 20.11  may issue a second fine.  The commissioner shall notify the 
 20.12  license holder by certified mail or personal service that a 
 20.13  second fine has been assessed.  The license holder may appeal 
 20.14  the second fine as provided under this subdivision. 
 20.15     (4) Fines shall be assessed as follows:  the license holder 
 20.16  shall forfeit $1,000 for each determination of maltreatment of a 
 20.17  child under section 626.556 or the maltreatment of a vulnerable 
 20.18  adult under section 626.557; the license holder shall forfeit 
 20.19  $200 for each occurrence of a violation of law or rule governing 
 20.20  matters of health, safety, or supervision, including but not 
 20.21  limited to the provision of adequate staff-to-child or adult 
 20.22  ratios, and failure to submit a background study; and the 
 20.23  license holder shall forfeit $100 for each occurrence of a 
 20.24  violation of law or rule other than those subject to a $1,000 or 
 20.25  $200 fine above.  For purposes of this section, "occurrence" 
 20.26  means each violation identified in the commissioner's fine order.
 20.27     (5) When a fine has been assessed, the license holder may 
 20.28  not avoid payment by closing, selling, or otherwise transferring 
 20.29  the licensed program to a third party.  In such an event, the 
 20.30  license holder will be personally liable for payment.  In the 
 20.31  case of a corporation, each controlling individual is personally 
 20.32  and jointly liable for payment.  
 20.33     Sec. 21.  Minnesota Statutes 2003 Supplement, section 
 20.34  245A.08, subdivision 1, is amended to read: 
 20.35     Subdivision 1.  [RECEIPT OF APPEAL; CONDUCT OF HEARING.] 
 20.36  Upon receiving a timely appeal or petition pursuant to section 
 21.1   245A.05, 245A.07, subdivision 3, or 245C.28, the commissioner 
 21.2   shall issue a notice of and order for hearing to the appellant 
 21.3   under chapter 14 and Minnesota Rules, parts ~~1400.8510~~ 1400.8505 
 21.4   to 1400.8612 ~~and successor rules~~. 
 21.5      Sec. 22.  Minnesota Statutes 2003 Supplement, section 
 21.6   245A.08, subdivision 2a, is amended to read: 
 21.7      Subd. 2a.  [CONSOLIDATED CONTESTED CASE HEARINGS FOR 
 21.8   SANCTIONS BASED ON MALTREATMENT DETERMINATIONS AND 
 21.9   DISQUALIFICATIONS.] (a) When a denial of a license under section 
 21.10  245A.05 or a licensing sanction under section 245A.07, 
 21.11  subdivision 3, is based on a disqualification for which 
 21.12  reconsideration was requested and which was not set aside ~~or was~~ 
 21.13  ~~not rescinded~~ under ~~sections 245C.21 to 245C.27~~ section 245C.22, 
 21.14  the scope of the contested case hearing shall include the 
 21.15  disqualification and the licensing sanction or denial of a 
 21.16  license.  When the licensing sanction or denial of a license is 
 21.17  based on a determination of maltreatment under section 626.556 
 21.18  or 626.557, or a disqualification for serious or recurring 
 21.19  maltreatment which was not set aside ~~or was not rescinded~~, the 
 21.20  scope of the contested case hearing shall include the 
 21.21  maltreatment determination, disqualification, and the licensing 
 21.22  sanction or denial of a license.  In such cases, a fair hearing 
 21.23  under section 256.045 shall not be conducted as provided for in 
 21.24  sections 626.556, subdivision 10i, and 626.557, subdivision 9d. 
 21.25     (b) In consolidated contested case hearings regarding 
 21.26  sanctions issued in family child care, child foster care, and 
 21.27  adult foster care, the county attorney shall defend the 
 21.28  commissioner's orders in accordance with section 245A.16, 
 21.29  subdivision 4. 
 21.30     (c) The commissioner's final order under subdivision 5 is 
 21.31  the final agency action on the issue of maltreatment and 
 21.32  disqualification, including for purposes of subsequent 
 21.33  background studies under chapter 245C and is the only 
 21.34  administrative appeal of the final agency determination, 
 21.35  specifically, including a challenge to the accuracy and 
 21.36  completeness of data under section 13.04. 
 22.1      (d) When consolidated hearings under this subdivision 
 22.2   involve a licensing sanction based on a previous maltreatment 
 22.3   determination for which the commissioner has issued a final 
 22.4   order in an appeal of that determination under section 256.045, 
 22.5   or the individual failed to exercise the right to appeal the 
 22.6   previous maltreatment determination under section 626.556, 
 22.7   subdivision 10i, or 626.557, subdivision 9d, the commissioner's 
 22.8   order is conclusive on the issue of maltreatment.  In such 
 22.9   cases, the scope of the administrative law judge's review shall 
 22.10  be limited to the disqualification and the licensing sanction or 
 22.11  denial of a license.  In the case of a denial of a license or a 
 22.12  licensing sanction issued to a facility based on a maltreatment 
 22.13  determination regarding an individual who is not the license 
 22.14  holder or a household member, the scope of the administrative 
 22.15  law judge's review includes the maltreatment determination. 
 22.16     (e) If a maltreatment determination or disqualification, 
 22.17  which was not set aside ~~or was not rescinded~~ under ~~sections~~ 
 22.18  ~~245C.21 to 245C.27~~ section 245C.22, is the basis for a denial of 
 22.19  a license under section 245A.05 or a licensing sanction under 
 22.20  section 245A.07, and the disqualified subject is an individual 
 22.21  other than the license holder and upon whom a background study 
 22.22  must be conducted under section 245C.03, the hearings of all 
 22.23  parties may be consolidated into a single contested case hearing 
 22.24  upon consent of all parties and the administrative law judge.  
 22.25     Sec. 23.  Minnesota Statutes 2002, section 245A.08, 
 22.26  subdivision 5, is amended to read: 
 22.27     Subd. 5.  [NOTICE OF THE COMMISSIONER'S FINAL ORDER.] After 
 22.28  considering the findings of fact, conclusions, and 
 22.29  recommendations of the administrative law judge, the 
 22.30  commissioner shall issue a final order.  The commissioner shall 
 22.31  consider, but shall not be bound by, the recommendations of the 
 22.32  administrative law judge.  The appellant must be notified of the 
 22.33  commissioner's final order as required by chapter 14 and 
 22.34  Minnesota Rules, parts ~~1400.8510~~ 1400.8505 to 1400.8612 ~~and~~ 
 22.35  ~~successor rules~~.  The notice must also contain information about 
 22.36  the appellant's rights under chapter 14 and Minnesota Rules, 
 23.1   parts ~~1400.8510~~ 1400.8505 to 1400.8612 ~~and successor rules~~.  The 
 23.2   institution of proceedings for judicial review of the 
 23.3   commissioner's final order shall not stay the enforcement of the 
 23.4   final order except as provided in section 14.65.  A license 
 23.5   holder and each controlling individual of a license holder whose 
 23.6   license has been revoked because of noncompliance with 
 23.7   applicable law or rule must not be granted a license for five 
 23.8   years following the revocation.  An applicant whose application 
 23.9   was denied must not be granted a license for two years following 
 23.10  a denial, unless the applicant's subsequent application contains 
 23.11  new information which constitutes a substantial change in the 
 23.12  conditions that caused the previous denial. 
 23.13     Sec. 24.  Minnesota Statutes 2003 Supplement, section 
 23.14  245A.085, is amended to read: 
 23.15     245A.085 [CONSOLIDATION OF HEARINGS; RECONSIDERATION.] 
 23.16     Hearings authorized under this chapter, chapter 245C, and 
 23.17  sections 256.045, 626.556, and 626.557, shall be consolidated if 
 23.18  feasible and in accordance with other applicable statutes and 
 23.19  rules.  Reconsideration under sections 245C.28; 626.556, 
 23.20  subdivision 10i; and 626.557, subdivision 9d, shall also be 
 23.21  consolidated if feasible. 
 23.22     Sec. 25.  Minnesota Statutes 2003 Supplement, section 
 23.23  245A.11, subdivision 2b, is amended to read: 
 23.24     Subd. 2b.  [ADULT FOSTER CARE; FAMILY ADULT DAY ~~CARE~~ 
 23.25  SERVICES.] An adult foster care license holder licensed under 
 23.26  the conditions in subdivision 2a may also provide family adult 
 23.27  day care for adults age 55 or over if no persons in the adult 
 23.28  foster or ~~adult~~ family adult day ~~care~~ services program have a 
 23.29  serious and persistent mental illness or a developmental 
 23.30  disability.  ~~The maximum combined capacity for adult foster care~~ 
 23.31  ~~and family adult day care is five adults, except that the~~ 
 23.32  ~~commissioner may grant a variance for a family adult day care~~ 
 23.33  ~~provider to admit up to seven individuals for day care services~~ 
 23.34  ~~and one individual for respite care services, if all of the~~ 
 23.35  ~~following requirements are met:  (1) the variance complies with~~ 
 23.36  ~~section 245A.04, subdivision 9; (2) a second caregiver is~~ 
 24.1   ~~present whenever six or more clients are being served; and (3)~~ 
 24.2   ~~the variance is recommended by the county social service agency~~ 
 24.3   ~~in the county where the provider is located.  A separate license~~ 
 24.4   ~~is not required to provide family adult day care under this~~ 
 24.5   ~~subdivision.~~  Family adult day services provided in a licensed 
 24.6   adult foster care setting must be provided as specified under 
 24.7   section 245A.143.  Authorization to provide family adult day 
 24.8   services in the adult foster care setting shall be printed on 
 24.9   the license certificate by the commissioner.  Adult foster care 
 24.10  homes ~~providing services to five adults~~ licensed under this 
 24.11  section and family adult day services licensed under section 
 24.12  245A.143 shall not be subject to licensure by the commissioner 
 24.13  of health under the provisions of chapter 144, 144A, 157, or any 
 24.14  other law requiring facility licensure by the commissioner of 
 24.15  health. 
 24.16     Sec. 26.  Minnesota Statutes 2002, section 245A.14, 
 24.17  subdivision 4, is amended to read: 
 24.18     Subd. 4.  [SPECIAL FAMILY DAY CARE HOMES.] Nonresidential 
 24.19  child care programs serving 14 or fewer children that are 
 24.20  conducted at a location other than the license holder's own 
 24.21  residence shall be licensed under this section and the rules 
 24.22  governing family day care or group family day care if:  
 24.23     (a) the license holder is the primary provider of care and 
 24.24  the nonresidential child care program is conducted in a dwelling 
 24.25  that is located on a residential lot; 
 24.26     (b) the license holder is an employer who may or may not be 
 24.27  the primary provider of care, and the purpose for the child care 
 24.28  program is to provide child care services to children of the 
 24.29  license holder's employees; ~~or~~ 
 24.30     (c) the license holder is a church or religious 
 24.31  organization; or 
 24.32     (d) the license holder is a community collaborative child 
 24.33  care provider.  For purposes of this subdivision, a community 
 24.34  collaborative child care provider is a provider participating in 
 24.35  a cooperative agreement with a community action agency as 
 24.36  defined in section 119A.375. 
 25.1      Sec. 27.  [245A.143] [FAMILY ADULT DAY SERVICES.] 
 25.2      Subdivision 1.  [SCOPE.] (a) The licensing standards in 
 25.3   this section must be met to obtain and maintain a license to 
 25.4   provide family adult day services.  For the purposes of this 
 25.5   section, family adult day services means a program operating 
 25.6   fewer than 24 hours per day that provides functionally impaired 
 25.7   adults, none of which are under age 55, have serious or 
 25.8   persistent mental illness, or have mental retardation or a 
 25.9   related condition, with an individualized and coordinated set of 
 25.10  services including health services, social services, and 
 25.11  nutritional services that are directed at maintaining or 
 25.12  improving the participants' capabilities for self-care. 
 25.13     (b) A family adult day services license shall only be 
 25.14  issued when the services are provided in the license holder's 
 25.15  primary residence, and the license holder is the primary 
 25.16  provider of care.  The license holder may not serve more than 
 25.17  eight adults at one time, including residents, if any, served 
 25.18  under a license issued under Minnesota Rules, parts 9555.5105 to 
 25.19  9555.6265. 
 25.20     (c) An adult foster care license holder may provide family 
 25.21  adult day services if the license holder meets the requirements 
 25.22  of this section. 
 25.23     (d) When an applicant or license holder submits an 
 25.24  application for initial licensure or relicensure for both adult 
 25.25  foster care and family adult day services, the county agency 
 25.26  shall process the request as a single application and shall 
 25.27  conduct concurrent routine licensing inspections. 
 25.28     (e) Adult foster care license holders providing family 
 25.29  adult day services under their foster care license on March 30, 
 25.30  2004, shall be permitted to continue providing these services 
 25.31  with no additional requirements until their adult foster care 
 25.32  license is due for renewal.  At the time of relicensure, an 
 25.33  adult foster care license holder may continue to provide family 
 25.34  adult day services upon demonstration of compliance with this 
 25.35  section.  Adult foster care license holders who provide only 
 25.36  family adult day services on August 1, 2004, may apply for a 
 26.1   license under this section instead of an adult foster care 
 26.2   license. 
 26.3      Subd. 2.  [DEFINITIONS.] (a) For the purposes of this 
 26.4   section, the terms defined in this subdivision have the 
 26.5   following meanings unless otherwise provided for by text. 
 26.6      (b) [CAREGIVER.] "Caregiver" means a spouse, adult child, 
 26.7   parent, relative, friend, or others who normally provide unpaid 
 26.8   support or care to the individual needing assistance.  For the 
 26.9   purpose of this section, the caregiver may or may not have legal 
 26.10  or financial responsibility for the participant. 
 26.11     (c) [PARTICIPANT.] "Participant" means a functionally 
 26.12  impaired adult receiving family adult day services. 
 26.13     (d) [CONSULTATION BY A HEALTH CARE 
 26.14  PROFESSIONAL.] "Consultation by a health care professional" 
 26.15  means the review and oversight of the participant's 
 26.16  health-related services by a registered nurse, physician, or 
 26.17  mental health professional. 
 26.18     Subd. 3.  [POLICY AND PROGRAM INFORMATION 
 26.19  REQUIREMENTS.] (a) The license holder shall have available for 
 26.20  review, and shall distribute to participants and their 
 26.21  caregivers upon admission, written information about: 
 26.22     (1) the scope of the programs, services, and care offered 
 26.23  by the license holder; 
 26.24     (2) a description of the population to be served by the 
 26.25  license holder; 
 26.26     (3) a description of individual conditions which the 
 26.27  license holder is not prepared to accept, such as a communicable 
 26.28  disease requiring isolation, a history of violence to self or 
 26.29  others, unmanageable incontinence, or uncontrollable wandering; 
 26.30     (4) the participants' rights and procedure for presenting 
 26.31  grievances, including the name, address, and telephone number of 
 26.32  the Office of Ombudsman for Older Minnesotans and the county 
 26.33  licensing department, to which a participant or participant's 
 26.34  caregiver may submit an oral or written complaint; 
 26.35     (5) the license holder's policy on and arrangements for 
 26.36  providing transportation; 
 27.1      (6) the license holder's policy on providing meals and 
 27.2   snacks; 
 27.3      (7) the license holder's fees, billing arrangements, and 
 27.4   plans for payment; 
 27.5      (8) the license holder's policy governing the presence of 
 27.6   pets in the home; 
 27.7      (9) the license holder's policy on smoking in the home; 
 27.8      (10) types of insurance coverage carried by the license 
 27.9   holder; 
 27.10     (11) information on orientation requirements under section 
 27.11  245A.65, subdivisions 1, paragraph (c), and 2, paragraph (a), 
 27.12  clause (4); 
 27.13     (12) the terms and conditions of the license holder's 
 27.14  license issued by the department; 
 27.15     (13) the license holder's plan for emergency evacuation of 
 27.16  participants involving fire, weather, and other disasters.  The 
 27.17  plan must include instructions for evacuation or rescue of 
 27.18  participants, identification of an emergency shelter area 
 27.19  quarterly fire drill schedule, and staff responsibilities; and 
 27.20     (14) the license holder's policy for handling harmful 
 27.21  objects, materials, or equipment including the storage of 
 27.22  poisonous chemicals, use of appliances, sharp instruments, 
 27.23  matches, or any other potentially harmful materials. 
 27.24     (b) The information in paragraph (a) must be provided in 
 27.25  writing to the commissioner's representative upon request and 
 27.26  must be available for inspection by the commissioner's 
 27.27  representative at the home. 
 27.28     Subd. 4.  [ADMISSION SCREENING AND EVALUATION.] (a) Before 
 27.29  admitting an individual into the family adult day services 
 27.30  program, the license holder shall screen the individual to 
 27.31  determine how or whether the license holder can serve the 
 27.32  individual, based on the license holder's policies, services, 
 27.33  expertise, and the individual's needs and condition.  If 
 27.34  possible, the screening shall include an interview with the 
 27.35  individual and with the individual's caregiver. 
 27.36     (b) The screening required under paragraph (a) shall 
 28.1   include an evaluation of the health, nutritional, and social 
 28.2   services needs of the individual. 
 28.3      Subd. 5.  [SERVICE DELIVERY PLAN.] Before providing family 
 28.4   adult day services, an individual, the individual's caregiver, 
 28.5   the legal representative if there is one, the county or private 
 28.6   case manager, if applicable, and the license holder shall 
 28.7   develop a service delivery plan.  At a minimum, the service 
 28.8   delivery plan shall include: 
 28.9      (1) a description of the health services, nutritional 
 28.10  services, and social services to be arranged or provided by the 
 28.11  license holder and the frequency of those services and that the 
 28.12  services will be based on the needs of the individual; 
 28.13     (2) scheduled days and hours of participant's attendance at 
 28.14  the license holder's home; 
 28.15     (3) transportation arrangements for getting the participant 
 28.16  to and from the license holder's home; 
 28.17     (4) contingency plans if scheduled services cannot be 
 28.18  provided by the license holder; 
 28.19     (5) identification of responsibilities of the participant 
 28.20  and the license holder with respect to payment for the services; 
 28.21     (6) circumstances when emergency services will be called; 
 28.22  and 
 28.23     (7) identification of the license holder's discharge policy 
 28.24  when services are no longer needed or when the participant's 
 28.25  needs can no longer be met by the license holder. 
 28.26     Subd. 6.  [INDIVIDUAL SERVICE PLAN.] (a) The service plan 
 28.27  must be coordinated with other plans of services for the 
 28.28  participant, as appropriate. 
 28.29     (b) The service plan must be dated and revised when there 
 28.30  is a change in the needs of the participant or annually, 
 28.31  whichever occurs sooner. 
 28.32     Subd. 7.  [HEALTH SERVICES.] (a) The license holder shall 
 28.33  provide health services as specified in the service delivery 
 28.34  plan under the direction of the designated caregiver or county 
 28.35  or private case manager.  Health services must include: 
 28.36     (1) monitoring the participant's level of function and 
 29.1   health while participating; taking appropriate action for a 
 29.2   change in condition including immediately reporting changes to 
 29.3   the participant's caregiver, physician, mental health 
 29.4   professional, or registered nurse; and seeking consultation; 
 29.5      (2) offering information to participants and caregivers on 
 29.6   good health and safety practices; and 
 29.7      (3) maintaining a listing of health resources available for 
 29.8   referrals as needed by participants and caregivers. 
 29.9      (b) Unless the person is a licensed health care 
 29.10  practitioner qualified to administer medications, the person 
 29.11  responsible for medication administration or assistance shall 
 29.12  provide a certificate verifying successful completion of a 
 29.13  trained medication aid program for unlicensed personnel approved 
 29.14  by the Minnesota Department of Health or comparable program, or 
 29.15  biennially provide evidence of competency as demonstrated to a 
 29.16  registered nurse or physician. 
 29.17     (c) The license holder must have secure storage and 
 29.18  safeguarding of all medications with storage of medications in 
 29.19  their original container, know what information regarding 
 29.20  medication administration must be reported to a health care 
 29.21  professional, and must maintain a record of all medications 
 29.22  administered. 
 29.23     Subd. 8.  [NUTRITIONAL SERVICES.] (a) The license holder 
 29.24  shall ensure that food served is nutritious and meets any 
 29.25  special dietary needs of the participants as prescribed by the 
 29.26  participant's physician or dietitian as specified in the service 
 29.27  delivery plan.  
 29.28     (b) Food and beverages must be obtained, handled, and 
 29.29  properly stored to prevent contamination, spoilage, or a threat 
 29.30  to the health of a resident. 
 29.31     Subd. 9.  [SOCIAL SERVICES.] The license holder, in 
 29.32  consultation with the county or private case manager, when 
 29.33  appropriate, shall actively assist the participant in 
 29.34  identifying and achieving personal goals, support the 
 29.35  participant in maintaining personal support networks and 
 29.36  socially valued roles, provide assistance to the participant to 
 30.1   enable community participation, and refer participants to the 
 30.2   Office of Ombudsman for Older Minnesotans and other advocacy 
 30.3   organizations for assistance when there is a potential conflict 
 30.4   of interest between the license holder and the participant. 
 30.5      Subd. 10.  [PARTICIPANT RIGHTS.] (a) The license holder 
 30.6   shall adopt and comply with a participant bill of rights.  The 
 30.7   rights shall include the participants' right to: 
 30.8      (1) participate in the development of the service plan; 
 30.9      (2) refuse services or participation; 
 30.10     (3) privacy; 
 30.11     (4) confidentiality of participant information; and 
 30.12     (5) present grievances regarding treatment or services to 
 30.13  the Office of Ombudsman for Older Minnesotans or the county 
 30.14  licensing department.  The license holder's policies shall 
 30.15  include a procedure for addressing participant grievances, 
 30.16  including the name, address, and telephone number of the county 
 30.17  licensing department, to which a participant or participant 
 30.18  caregiver may submit an oral or written complaint. 
 30.19     (b) The license holder shall post the participant rights in 
 30.20  the home and shall provide a copy to the participant and the 
 30.21  participant's primary caregiver and legal representative if the 
 30.22  participant has one. 
 30.23     Subd. 11.  [STAFFING.] Whenever participants are in the 
 30.24  home, there must be present at least one individual who is 
 30.25  trained in basic first aid and certified in cardiopulmonary 
 30.26  resuscitation and the treatment of obstructed airways.  Whenever 
 30.27  there are six, seven, or eight participants present, there must 
 30.28  be a second staff person present. 
 30.29     Subd. 12.  [TRAINING.] The license holder and license 
 30.30  holder's staff must annually complete 12 hours of training 
 30.31  related to the health, nutritional, and social needs of the 
 30.32  license holder's target population.  License holders with six or 
 30.33  more years of licensure under this section or as an adult foster 
 30.34  care provider must annually complete six hours of training.  The 
 30.35  annual training must include training on the reporting of 
 30.36  maltreatment of vulnerable adults under sections 626.557 and 
 31.1   626.5572; license holder requirements governing maltreatment of 
 31.2   vulnerable adults under section 245A.65; and, when a license 
 31.3   holder serves participants who rely on medical monitoring 
 31.4   equipment to sustain life or monitor a medical condition, 
 31.5   training on medical equipment as required under section 245A.155 
 31.6   for foster care providers.  A record of all training must be 
 31.7   maintained in the home. 
 31.8      Subd. 13.  [RESIDENTIAL REQUIREMENTS.] (a) The home where 
 31.9   family adult day services are to be provided shall be classified 
 31.10  as a residential group R-3 occupancy under the State Building 
 31.11  Code and State Fire Code for purposes of building code and fire 
 31.12  code inspections.  A building code inspection is not required 
 31.13  for licensure under this section.  The state or local fire 
 31.14  marshal must inspect the family adult day services home 
 31.15  operating in the residence for compliance with the residential 
 31.16  group R-3 occupancy provisions of the State Fire Code. 
 31.17     (b) The licensed capacity of the home shall be limited by 
 31.18  the amount of indoor space available for use by participants.  
 31.19  The total indoor space available for use by participants must 
 31.20  equal at least 35 square feet for each participant, the license 
 31.21  holder, and each staff member present in the home.  In 
 31.22  determining the square footage of usable indoor space available, 
 31.23  the following must not be counted:  hallways, stairways, 
 31.24  closets, offices, restrooms, and utility and storage areas.  The 
 31.25  usable indoor space available must include a room or an area 
 31.26  that can be used as private space for providing personal hygiene 
 31.27  services or social services to participants. 
 31.28     (c) The residence must comply with all applicable local 
 31.29  ordinances.  
 31.30     Subd. 14.  [VARIANCES.] The commissioner may grant a 
 31.31  variance to any of the requirements in this section if the 
 31.32  conditions in section 245A.04, subdivision 9, are met. 
 31.33     Sec. 28.  Minnesota Statutes 2003 Supplement, section 
 31.34  245A.16, subdivision 1, is amended to read: 
 31.35     Subdivision 1.  [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 
 31.36  County agencies and private agencies that have been designated 
 32.1   or licensed by the commissioner to perform licensing functions 
 32.2   and activities under section 245A.04 and chapter 245C, to 
 32.3   recommend denial of applicants under section 245A.05, to issue 
 32.4   correction orders, to issue variances, and recommend a 
 32.5   conditional license under section 245A.06, or to recommend 
 32.6   suspending or revoking a license or issuing a fine under section 
 32.7   245A.07, shall comply with rules and directives of the 
 32.8   commissioner governing those functions and with this section.  
 32.9   The following variances are excluded from the delegation of 
 32.10  variance authority and may be issued only by the commissioner: 
 32.11     (1) dual licensure of family child care and child foster 
 32.12  care, dual licensure of child and adult foster care, and adult 
 32.13  foster care and family child care; 
 32.14     (2) adult foster care maximum capacity; 
 32.15     (3) adult foster care minimum age requirement; 
 32.16     (4) child foster care maximum age requirement; 
 32.17     (5) variances regarding disqualified individuals except 
 32.18  that county agencies may issue variances under section 245C.30 
 32.19  regarding disqualified individuals when the county is 
 32.20  responsible for conducting a consolidated reconsideration 
 32.21  according to sections 245C.25 and 245C.27, subdivision 2, 
 32.22  clauses (a) and (b), of a county maltreatment determination and 
 32.23  a disqualification based on serious or recurring maltreatment; 
 32.24  and 
 32.25     (6) the required presence of a caregiver in the adult 
 32.26  foster care residence during normal sleeping hours. 
 32.27     (b) County agencies must report information about 
 32.28  disqualification reconsiderations under sections 245C.25 and 
 32.29  245C.27, subdivision 2, clauses (a) and (b), and variances 
 32.30  granted under paragraph (a), clause (5), to the commissioner at 
 32.31  least monthly in a format prescribed by the commissioner. 
 32.32     (c) For family day care programs, the commissioner may 
 32.33  authorize licensing reviews every two years after a licensee has 
 32.34  had at least one annual review. 
 32.35     (d) For family adult day services programs, the 
 32.36  commissioner may authorize licensing reviews every two years 
 33.1   after a licensee has had at least one annual review. 
 33.2      (e) A license issued under this section may be issued for 
 33.3   up to two years. 
 33.4      Sec. 29.  Minnesota Statutes 2002, section 245A.16, 
 33.5   subdivision 4, is amended to read: 
 33.6      Subd. 4.  [ENFORCEMENT OF THE COMMISSIONER'S ORDERS.] The 
 33.7   county or private agency shall enforce the commissioner's orders 
 33.8   under sections 245A.07 ~~and~~, 245A.08, subdivision 5, and chapter 
 33.9   245C, according to the instructions of the commissioner.  The 
 33.10  county attorney shall assist the county agency in the 
 33.11  enforcement and defense of the commissioner's orders under 
 33.12  sections 245A.07 ~~and~~, 245A.08, and chapter 245C, according to 
 33.13  the instructions of the commissioner, unless a conflict of 
 33.14  interest exists between the county attorney and the commissioner.
 33.15     Sec. 30.  Minnesota Statutes 2002, section 245A.22, 
 33.16  subdivision 2, is amended to read: 
 33.17     Subd. 2.  [ADMISSION.] (a) The license holder shall accept 
 33.18  as clients in the independent living assistance program only 
 33.19  ~~individuals specified under section 256E.115~~ youth ages 16 to 21 
 33.20  who are in out-of-home placement, leaving out-of-home placement, 
 33.21  at risk of becoming homeless, or homeless. 
 33.22     (b) Youth who have current drug or alcohol problems, a 
 33.23  recent history of violent behaviors, or a mental health disorder 
 33.24  or issue that is not being resolved through counseling or 
 33.25  treatment are not eligible to receive the services described in 
 33.26  subdivision 1. 
 33.27     (c) Youth who are not employed, participating in employment 
 33.28  training, or enrolled in an academic program are not eligible to 
 33.29  receive transitional housing or independent living assistance. 
 33.30     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 33.31  following final enactment. 
 33.32     Sec. 31.  Minnesota Statutes 2003 Supplement, section 
 33.33  245A.22, subdivision 3, is amended to read: 
 33.34     Subd. 3.  [INDEPENDENT LIVING PLAN.] (a) Unless an 
 33.35  independent living plan has been developed by the local agency, 
 33.36  the license holder shall develop a plan based on the client's 
 34.1   individual needs that specifies objectives for the client.  The 
 34.2   services provided shall include those specified in this section. 
 34.3   The plan shall identify the persons responsible for 
 34.4   implementation of each part of the plan.  The plan shall be 
 34.5   reviewed as necessary, but at least annually. 
 34.6      (b) The following services, or adequate access to referrals 
 34.7   for the following services, must be made available to the 
 34.8   targeted youth participating in the programs described in 
 34.9   subdivision 1: 
 34.10     (1) counseling services for the youth, and their families, 
 34.11  if appropriate, on site, to help with problems that contributed 
 34.12  to the homelessness or could impede making the transition to 
 34.13  independent living; 
 34.14     (2) educational, vocational, or employment services; 
 34.15     (3) health care; 
 34.16     (4) transportation services including, where appropriate, 
 34.17  assisting the child in obtaining a driver's license; 
 34.18     (5) money management skills training; 
 34.19     (6) planning for ongoing housing; 
 34.20     (7) social and recreational skills training; and 
 34.21     (8) assistance establishing and maintaining connections 
 34.22  with the child's family and community. 
 34.23     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 34.24  following final enactment. 
 34.25     Sec. 32.  Minnesota Statutes 2002, section 245B.02, is 
 34.26  amended by adding a subdivision to read: 
 34.27     Subd. 12a.  [INTERDISCIPLINARY TEAM.] "Interdisciplinary 
 34.28  team" means a team composed of the case manager, the person, the 
 34.29  person's legal representative and advocate, if any, and 
 34.30  representatives of providers of the service areas relevant to 
 34.31  the needs of the person as described in the individual service 
 34.32  plan. 
 34.33     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 34.34  following final enactment. 
 34.35     Sec. 33.  Minnesota Statutes 2002, section 245B.05, 
 34.36  subdivision 2, is amended to read: 
 35.1      Subd. 2.  [LICENSED CAPACITY FOR FACILITY-BASED DAY 
 35.2   TRAINING AND HABILITATION SERVICES.] The licensed capacity of 
 35.3   each day training and habilitation service ~~sites~~ site must be 
 35.4   determined by the amount of primary space available, the 
 35.5   scheduling of activities at other service sites, and the space 
 35.6   requirements of consumers receiving services at the site.  
 35.7   Primary space does not include hallways, stairways, closets, 
 35.8   utility areas, bathrooms, kitchens, and floor areas beneath 
 35.9   stationary equipment.  A facility-based day training and 
 35.10  habilitation site must have a minimum of 40 square feet of 
 35.11  primary space ~~must be~~ available for each consumer who is ~~engaged~~ 
 35.12  ~~in a day training and habilitation activity at the site for~~ 
 35.13  ~~which the licensed capacity must be determined~~ present at the 
 35.14  site at any one time.  Licensed capacity under this subdivision 
 35.15  does not apply to: 
 35.16     (1) consumers receiving community-based day training and 
 35.17  habilitation services; and 
 35.18     (2) the temporary use of a facility-based training and 
 35.19  habilitation service site for the limited purpose of providing 
 35.20  transportation to consumers receiving community-based day 
 35.21  training and habilitation services from the license holder.  The 
 35.22  license holder must comply at all times with all applicable fire 
 35.23  and safety codes under subdivision 4 and adequate supervision 
 35.24  requirements under section 245B.055, subdivision 8, for all 
 35.25  persons receiving day training and habilitation services. 
 35.26     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 35.27  following final enactment. 
 35.28     Sec. 34.  [245B.055] [MINIMUM LEVEL OF STAFFING REQUIRED 
 35.29  FOR DAY TRAINING AND HABILITATION SERVICES.] 
 35.30     Subdivision 1.  [SCOPE.] This section applies only to 
 35.31  license holders that provide day training and habilitation 
 35.32  services. 
 35.33     Subd. 2.  [FACTORS.] (a) The number of direct service staff 
 35.34  members that a license holder must have on duty at a given time 
 35.35  to meet the minimum staffing requirements established in this 
 35.36  section varies according to: 
 36.1      (1) the number of persons who are enrolled and receiving 
 36.2   direct services at that given time; 
 36.3      (2) the staff ratio requirement established under 
 36.4   subdivision 3 for each of the persons who is present; and 
 36.5      (3) whether the conditions described in subdivision 8 exist 
 36.6   and warrant additional staffing beyond the number determined to 
 36.7   be needed under subdivision 7. 
 36.8      (b) The commissioner shall consider the factors in 
 36.9   paragraph (a) in determining a license holder's compliance with 
 36.10  the staffing requirements and shall further consider whether the 
 36.11  staff ratio requirement established under subdivision 3 for each 
 36.12  person receiving services accurately reflects the person's need 
 36.13  for staff time. 
 36.14     Subd. 3.  [DETERMINING AND DOCUMENTING THE STAFF RATIO 
 36.15  REQUIREMENT FOR EACH PERSON RECEIVING SERVICES.] The case 
 36.16  manager, in consultation with the interdisciplinary team, shall 
 36.17  determine at least once each year which of the ratios in 
 36.18  subdivisions 4, 5, and 6 is appropriate for each person 
 36.19  receiving services on the basis of the characteristics described 
 36.20  in subdivisions 4, 5, and 6.  The ratio assigned each person and 
 36.21  the documentation of how the ratio was arrived at must be kept 
 36.22  in each person's individual service plan.  Documentation must 
 36.23  include an assessment of the person with respect to the 
 36.24  characteristics in subdivisions 4, 5, and 6 recorded on a 
 36.25  standard assessment form required by the commissioner. 
 36.26     Subd. 4.  [PERSON REQUIRING STAFF RATIO OF ONE TO FOUR.] A 
 36.27  person who has one or more of the following characteristics must 
 36.28  be assigned a staff ratio requirement of one to four: 
 36.29     (1) on a daily basis the person requires total care and 
 36.30  monitoring or constant hand-over-hand physical guidance to 
 36.31  successfully complete at least three of the following activities:
 36.32  toileting, communicating basic needs, eating, or ambulating; or 
 36.33     (2) the person assaults others, is self injurious, or 
 36.34  manifests severe dysfunctional behaviors at a documented level 
 36.35  of frequency, intensity, or duration requiring frequent daily 
 36.36  ongoing intervention and monitoring as established in an 
 37.1   approved behavior management program. 
 37.2      Subd. 5.  [PERSON REQUIRING STAFF RATIO OF ONE TO EIGHT.] A 
 37.3   person who has all of the following characteristics must be 
 37.4   assigned a staff ratio requirement of one to eight: 
 37.5      (1) the person does not meet the requirements in 
 37.6   subdivision 4; and 
 37.7      (2) on a daily basis the person requires verbal prompts or 
 37.8   spot checks and minimal or no physical assistance to 
 37.9   successfully complete at least three of the following 
 37.10  activities:  toileting, communicating basic needs, eating, or 
 37.11  ambulating. 
 37.12     Subd. 6.  [PERSON REQUIRING STAFF RATIO OF ONE TO SIX.] A 
 37.13  person who does not have any of the characteristics described in 
 37.14  subdivision 4 or 5 must be assigned a staff ratio requirement of 
 37.15  one to six. 
 37.16     Subd. 7.  [DETERMINING NUMBER OF DIRECT SERVICE STAFF 
 37.17  REQUIRED.] The minimum number of direct service staff members 
 37.18  required at any one time to meet the combined staff ratio 
 37.19  requirements of the persons present at that time can be 
 37.20  determined by following the steps in clauses (1) through (4): 
 37.21     (1) assign each person in attendance the three digit 
 37.22  decimal below that corresponds to the staff ratio requirement 
 37.23  assigned to that person.  A staff ratio requirement of one to 
 37.24  four equals 0.250.  A staff ratio requirement of one to eight 
 37.25  equals 0.125.  A staff ratio requirement of one to six equals 
 37.26  0.166; 
 37.27     (2) add all of the three digit decimals (one three digit 
 37.28  decimal for every person in attendance) assigned in clause (1); 
 37.29     (3) when the sum in clause (2) falls between two whole 
 37.30  numbers, round off the sum to the larger of the two whole 
 37.31  numbers; and 
 37.32     (4) the larger of the two whole numbers in clause (3) 
 37.33  equals the number of direct service staff members needed to meet 
 37.34  the staff ratio requirements of the persons in attendance. 
 37.35     Subd. 8.  [CONDITIONS REQUIRING ADDITIONAL DIRECT SERVICE 
 37.36  STAFF.] The license holder shall increase the number of direct 
 38.1   service staff members present at any one time beyond the number 
 38.2   arrived at in subdivision 4 if necessary when any one or 
 38.3   combination of the following circumstances can be documented by 
 38.4   the commissioner as existing: 
 38.5      (1) the health and safety needs of the persons receiving 
 38.6   services cannot be met by the number of staff members available 
 38.7   under the staffing pattern in effect even though the number has 
 38.8   been accurately calculated under subdivision 7; or 
 38.9      (2) the behavior of a person presents an immediate danger 
 38.10  and the person is not eligible for a special needs rate 
 38.11  exception under Minnesota Rules, parts 9510.1020 to 9510.1140. 
 38.12     Subd. 9.  [SUPERVISION REQUIREMENTS.] At no time shall one 
 38.13  direct service staff member be assigned responsibility for 
 38.14  supervision and training of more than ten persons receiving 
 38.15  supervision and training, except as otherwise stated in each 
 38.16  person's risk management plan. 
 38.17     Sec. 35.  Minnesota Statutes 2002, section 245B.07, 
 38.18  subdivision 8, is amended to read: 
 38.19     Subd. 8.  [POLICIES AND PROCEDURES.] The license holder 
 38.20  must develop and implement the policies and procedures in 
 38.21  paragraphs (1) to (3). 
 38.22     (1) policies and procedures that promote consumer health 
 38.23  and safety by ensuring: 
 38.24     (i) consumer safety in emergency situations as identified 
 38.25  in section 245B.05, subdivision 7; 
 38.26     (ii) consumer health through sanitary practices; 
 38.27     (iii) safe transportation, when the license holder is 
 38.28  responsible for transportation of consumers, with provisions for 
 38.29  handling emergency situations; 
 38.30     (iv) a system of record keeping for both individuals and 
 38.31  the organization, for review of incidents and emergencies, and 
 38.32  corrective action if needed; 
 38.33     (v) a plan for responding to ~~and reporting all emergencies,~~ 
 38.34  ~~including deaths, medical emergencies, illnesses, accidents,~~ 
 38.35  ~~missing consumers,~~ all incidents, as defined in section 245B.02, 
 38.36  subdivision 10, fires, severe weather and natural disasters, 
 39.1   bomb threats, and other threats and reporting all incidents 
 39.2   required to be reported under section 245B.05, subdivision 7; 
 39.3      (vi) safe medication administration as identified in 
 39.4   section 245B.05, subdivision 5, incorporating an observed skill 
 39.5   assessment to ensure that staff demonstrate the ability to 
 39.6   administer medications consistent with the license holder's 
 39.7   policy and procedures; 
 39.8      (vii) psychotropic medication monitoring when the consumer 
 39.9   is prescribed a psychotropic medication, including the use of 
 39.10  the psychotropic medication use checklist.  If the 
 39.11  responsibility for implementing the psychotropic medication use 
 39.12  checklist has not been assigned in the individual service plan 
 39.13  and the consumer lives in a licensed site, the residential 
 39.14  license holder shall be designated; and 
 39.15     (viii) criteria for admission or service initiation 
 39.16  developed by the license holder; 
 39.17     (2) policies and procedures that protect consumer rights 
 39.18  and privacy by ensuring: 
 39.19     (i) consumer data privacy, in compliance with the Minnesota 
 39.20  Data Practices Act, chapter 13; and 
 39.21     (ii) that complaint procedures provide consumers with a 
 39.22  simple process to bring grievances and consumers receive a 
 39.23  response to the grievance within a reasonable time period.  The 
 39.24  license holder must provide a copy of the program's grievance 
 39.25  procedure and time lines for addressing grievances.  The 
 39.26  program's grievance procedure must permit consumers served by 
 39.27  the program and the authorized representatives to bring a 
 39.28  grievance to the highest level of authority in the program; and 
 39.29     (3) policies and procedures that promote continuity and 
 39.30  quality of consumer supports by ensuring: 
 39.31     (i) continuity of care and service coordination, including 
 39.32  provisions for service termination, temporary service 
 39.33  suspension, and efforts made by the license holder to coordinate 
 39.34  services with other vendors who also provide support to the 
 39.35  consumer.  The policy must include the following requirements: 
 39.36     (A) the license holder must notify the consumer or 
 40.1   consumer's legal representative and the consumer's case manager 
 40.2   in writing of the intended termination or temporary service 
 40.3   suspension and the consumer's right to seek a temporary order 
 40.4   staying the termination or suspension of service according to 
 40.5   the procedures in section 256.045, subdivision 4a or subdivision 
 40.6   6, paragraph (c); 
 40.7      (B) notice of the proposed termination of services, 
 40.8   including those situations that began with a temporary service 
 40.9   suspension, must be given at least 60 days before the proposed 
 40.10  termination is to become effective; 
 40.11     (C) the license holder must provide information requested 
 40.12  by the consumer or consumer's legal representative or case 
 40.13  manager when services are temporarily suspended or upon notice 
 40.14  of termination; 
 40.15     (D) use of temporary service suspension procedures are 
 40.16  restricted to situations in which the consumer's behavior causes 
 40.17  immediate and serious danger to the health and safety of the 
 40.18  individual or others; 
 40.19     (E) prior to giving notice of service termination or 
 40.20  temporary service suspension, the license holder must document 
 40.21  actions taken to minimize or eliminate the need for service 
 40.22  termination or temporary service suspension; and 
 40.23     (F) during the period of temporary service suspension, the 
 40.24  license holder will work with the appropriate county agency to 
 40.25  develop reasonable alternatives to protect the individual and 
 40.26  others; and 
 40.27     (ii) quality services measured through a program evaluation 
 40.28  process including regular evaluations of consumer satisfaction 
 40.29  and sharing the results of the evaluations with the consumers 
 40.30  and legal representatives. 
 40.31     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 40.32  following final enactment. 
 40.33     Sec. 36.  Minnesota Statutes 2002, section 245B.07, 
 40.34  subdivision 12, is amended to read: 
 40.35     Subd. 12.  [SEPARATE LICENSE REQUIRED FOR SEPARATE SITES.] 
 40.36  The license holder shall apply for separate licenses for each 
 41.1   day training and habilitation service site owned or leased by 
 41.2   the license holder at which persons receiving services and the 
 41.3   provider's employees who provide training and habilitation 
 41.4   services are present for a cumulative total of more than 30 days 
 41.5   within any 12-month period, and for each residential service 
 41.6   site.  Notwithstanding this subdivision, a separate license is 
 41.7   not required for a day training and habilitation service site 
 41.8   used only for the limited purpose of providing transportation to 
 41.9   consumers receiving community-based day training and 
 41.10  habilitation services from a license holder. 
 41.11     Sec. 37.  Minnesota Statutes 2003 Supplement, section 
 41.12  245C.02, subdivision 18, is amended to read: 
 41.13     Subd. 18.  [SERIOUS MALTREATMENT.] (a) "Serious 
 41.14  maltreatment" means sexual abuse, maltreatment resulting in 
 41.15  death, maltreatment resulting in serious injury which reasonably 
 41.16  requires the care of a physician whether or not the care of a 
 41.17  physician was sought, or abuse resulting in serious injury. 
 41.18     (b) For purposes of this definition, "care of a physician" 
 41.19  is treatment received or ordered by a physician but does not 
 41.20  include diagnostic testing, assessment, or observation. 
 41.21     (c) For purposes of this definition, "abuse resulting in 
 41.22  serious injury" means:  bruises, bites, skin laceration, or 
 41.23  tissue damage; fractures; dislocations; evidence of internal 
 41.24  injuries; head injuries with loss of consciousness; extensive 
 41.25  second-degree or third-degree burns and other burns for which 
 41.26  complications are present; extensive second-degree or 
 41.27  third-degree frostbite and other frostbite for which 
 41.28  complications are present; irreversible mobility or avulsion of 
 41.29  teeth; injuries to the eyes; ingestion of foreign substances and 
 41.30  objects that are harmful; near drowning; and heat exhaustion or 
 41.31  sunstroke. 
 41.32     (d) Serious maltreatment includes neglect when it results 
 41.33  in criminal sexual conduct against a child or vulnerable adult. 
 41.34     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 41.35  following final enactment. 
 41.36     Sec. 38.  Minnesota Statutes 2003 Supplement, section 
 42.1   245C.03, subdivision 1, is amended to read: 
 42.2      Subdivision 1.  [LICENSED PROGRAMS.] (a) The commissioner 
 42.3   shall conduct a background study on: 
 42.4      (1) the ~~applicant~~ person or persons applying for a license; 
 42.5      (2) an individual age 13 and over living in the household 
 42.6   where the licensed program will be provided; 
 42.7      (3) current employees or contractors of the applicant who 
 42.8   will have direct contact with persons served by the facility, 
 42.9   agency, or program; 
 42.10     (4) volunteers or student volunteers who will have direct 
 42.11  contact with persons served by the program to provide program 
 42.12  services if the contact is not under the continuous, direct 
 42.13  supervision by an individual listed in clause (1) or (3); 
 42.14     (5) an individual age ten to 12 living in the household 
 42.15  where the licensed services will be provided when the 
 42.16  commissioner has reasonable cause; ~~and~~ 
 42.17     (6) an individual who, without providing direct contact 
 42.18  services at a licensed program, may have unsupervised access to 
 42.19  children or vulnerable adults receiving services from a program 
 42.20  licensed to provide: 
 42.21     (i) family child care for children; 
 42.22     (ii) foster care for children in the provider's own home; 
 42.23  or 
 42.24     (iii) foster care or day care services for adults in the 
 42.25  provider's own home; and 
 42.26     (7) all managerial officials as defined under section 
 42.27  245A.02, subdivision 5a. 
 42.28  The commissioner must have reasonable cause to study an 
 42.29  individual under this ~~clause~~ subdivision. 
 42.30     (b) For family child foster care settings, a short-term 
 42.31  substitute caregiver providing direct contact services for a 
 42.32  child for less than 72 hours of continuous care is not required 
 42.33  to receive a background study under this chapter. 
 42.34     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 42.35  following final enactment. 
 42.36     Sec. 39.  Minnesota Statutes 2003 Supplement, section 
 43.1   245C.03, is amended by adding a subdivision to read: 
 43.2      Subd. 5.  [OTHER STATE AGENCIES.] The commissioner shall 
 43.3   conduct background studies on applicants and license holders 
 43.4   under the jurisdiction of other state agencies who are required 
 43.5   in other statutory sections to initiate background studies under 
 43.6   this chapter, including the applicant's or license holder's 
 43.7   employees, contractors, and volunteers when required under other 
 43.8   statutory sections. 
 43.9      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 43.10  following final enactment. 
 43.11     Sec. 40.  Minnesota Statutes 2003 Supplement, section 
 43.12  245C.05, subdivision 1, is amended to read: 
 43.13     Subdivision 1.  [INDIVIDUAL STUDIED.] (a) The individual 
 43.14  who is the subject of the background study must provide the 
 43.15  applicant, license holder, or other entity under section 245C.04 
 43.16  with sufficient information to ensure an accurate study, 
 43.17  including: 
 43.18     (1) the individual's first, middle, and last name and all 
 43.19  other names by which the individual has been known; 
 43.20     (2) home address, city, ~~county,~~ and state of residence ~~for~~ 
 43.21  ~~the past five years~~; 
 43.22     (3) zip code; 
 43.23     (4) sex; 
 43.24     (5) date of birth; and 
 43.25     (6) Minnesota driver's license number or state 
 43.26  identification number. 
 43.27     (b) Every subject of a background study conducted by 
 43.28  counties or private agencies under this chapter must also 
 43.29  provide the home address, city, county, and state of residence 
 43.30  for the past five years. 
 43.31     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 43.32  following final enactment. 
 43.33     Sec. 41.  Minnesota Statutes 2003 Supplement, section 
 43.34  245C.05, subdivision 2, is amended to read: 
 43.35     Subd. 2.  [APPLICANT, LICENSE HOLDER, OR OTHER ENTITY.] The 
 43.36  applicant, license holder, or other ~~entity under section 245C.04~~ 
 44.1   entities as provided in this chapter shall provide the 
 44.2   information collected under subdivision 1 about an individual 
 44.3   who is the subject of the background study on forms or in a 
 44.4   format prescribed by the commissioner. 
 44.5      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 44.6   following final enactment. 
 44.7      Sec. 42.  Minnesota Statutes 2003 Supplement, section 
 44.8   245C.05, subdivision 5, is amended to read: 
 44.9      Subd. 5.  [FINGERPRINTS.] (a) For any background study 
 44.10  completed under this ~~section~~ chapter, when the commissioner has 
 44.11  reasonable cause to believe that further pertinent information 
 44.12  may exist on the subject of the background study, the subject 
 44.13  shall provide the commissioner with a set of classifiable 
 44.14  fingerprints obtained from an authorized law enforcement agency. 
 44.15     (b) For purposes of requiring fingerprints, the 
 44.16  commissioner has reasonable cause when, but not limited to, the: 
 44.17     (1) information from the Bureau of Criminal Apprehension 
 44.18  indicates that the subject is a multistate offender; 
 44.19     (2) information from the Bureau of Criminal Apprehension 
 44.20  indicates that multistate offender status is undetermined; or 
 44.21     (3) commissioner has received a report from the subject or 
 44.22  a third party indicating that the subject has a criminal history 
 44.23  in a jurisdiction other than Minnesota. 
 44.24     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 44.25  following final enactment. 
 44.26     Sec. 43.  Minnesota Statutes 2003 Supplement, section 
 44.27  245C.05, subdivision 6, is amended to read: 
 44.28     Subd. 6.  [APPLICANT, LICENSE HOLDER, ~~REGISTRANT~~ OTHER 
 44.29  ENTITIES, AND AGENCIES.] (a) The applicant, license 
 44.30  holder, ~~registrant~~ other entities as provided in this chapter, 
 44.31  Bureau of Criminal Apprehension, commissioner of health, and 
 44.32  county agencies shall help with the study by giving the 
 44.33  commissioner criminal conviction data and reports about the 
 44.34  maltreatment of adults substantiated under section 626.557 and 
 44.35  the maltreatment of minors ~~in licensed programs~~ substantiated 
 44.36  under section 626.556. 
 45.1      (b) If a background study is initiated by an applicant ~~or~~, 
 45.2   license holder, or other entities as provided in this chapter, 
 45.3   and the applicant ~~or~~, license holder, or other entity receives 
 45.4   information about the possible criminal or maltreatment history 
 45.5   of an individual who is the subject of the background study, the 
 45.6   applicant ~~or~~, license holder, or other entity must immediately 
 45.7   provide the information to the commissioner. 
 45.8      (c) The program or county or other agency must provide 
 45.9   written notice to the individual who is the subject of the 
 45.10  background study of the requirements under this subdivision. 
 45.11     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 45.12  following final enactment. 
 45.13     Sec. 44.  Minnesota Statutes 2003 Supplement, section 
 45.14  245C.08, subdivision 2, is amended to read: 
 45.15     Subd. 2.  [BACKGROUND STUDIES CONDUCTED BY A COUNTY OR 
 45.16  PRIVATE AGENCY; FOSTER CARE AND FAMILY CHILD CARE.] (a) For a 
 45.17  background study conducted by a county or private agency for 
 45.18  child foster care, adult foster care, and family child care 
 45.19  homes, the commissioner shall review: 
 45.20     (1) information from the county agency's record of 
 45.21  substantiated maltreatment of adults and the maltreatment of 
 45.22  minors; 
 45.23     (2) information from juvenile courts as required in 
 45.24  subdivision 4 for individuals listed in section 245C.03, 
 45.25  subdivision 1, clauses (2), (5), and (6); ~~and~~ 
 45.26     (3) information from the Bureau of Criminal Apprehension; 
 45.27  and 
 45.28     (4) arrest and investigative records maintained by the 
 45.29  Bureau of Criminal Apprehension, county attorneys, county 
 45.30  sheriffs, courts, county agencies, local police, the National 
 45.31  Criminal Records Repository, and criminal records from other 
 45.32  states. 
 45.33     (b) If the individual has resided in the county for less 
 45.34  than five years, the study shall include the records specified 
 45.35  under paragraph (a) for the previous county or counties of 
 45.36  residence for the past five years. 
 46.1      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 46.2   following final enactment. 
 46.3      Sec. 45.  Minnesota Statutes 2003 Supplement, section 
 46.4   245C.08, subdivision 3, is amended to read: 
 46.5      Subd. 3.  [ARREST AND INVESTIGATIVE INFORMATION.] (a) For 
 46.6   any background study completed under this section, if the 
 46.7   commissioner has reasonable cause to believe the information is 
 46.8   pertinent to the disqualification of an individual ~~listed in~~ 
 46.9   ~~section 245C.03, subdivisions 1 and 2~~, the commissioner also may 
 46.10  review arrest and investigative information from: 
 46.11     (1) the Bureau of Criminal Apprehension; 
 46.12     (2) the commissioner of health; 
 46.13     (3) a county attorney; 
 46.14     (4) a county sheriff; 
 46.15     (5) a county agency; 
 46.16     (6) a local chief of police; 
 46.17     (7) other states; 
 46.18     (8) the courts; or 
 46.19     (9) the Federal Bureau of Investigation. 
 46.20     (b) The commissioner is not required to conduct more than 
 46.21  one review of a subject's records from the Federal Bureau of 
 46.22  Investigation if a review of the subject's criminal history with 
 46.23  the Federal Bureau of Investigation has already been completed 
 46.24  by the commissioner and there has been no break in the subject's 
 46.25  affiliation with the license holder who initiated the background 
 46.26  study. 
 46.27     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 46.28  following final enactment. 
 46.29     Sec. 46.  Minnesota Statutes 2003 Supplement, section 
 46.30  245C.08, subdivision 4, is amended to read: 
 46.31     Subd. 4.  [JUVENILE COURT RECORDS.] (a) The commissioner 
 46.32  shall review records from the juvenile courts for an individual 
 46.33  studied under section 245C.03, subdivision 1, clauses (2) and 
 46.34  (5). 
 46.35     (b) For individuals studied under section 245C.03, 
 46.36  subdivision 1, clauses (1), (3), (4), and (6), and subdivision 
 47.1   2, who are ages 13 to 17, the commissioner shall review records 
 47.2   from the juvenile courts when the commissioner has reasonable 
 47.3   cause. 
 47.4      (c) The juvenile courts shall help with the study by giving 
 47.5   the commissioner existing juvenile court records on individuals 
 47.6   described in section 245C.03, subdivision 1, clauses (2), (5), 
 47.7   and (6), relating to delinquency proceedings held within either 
 47.8   the five years immediately preceding the background study or the 
 47.9   five years immediately preceding the individual's 18th birthday, 
 47.10  whichever time period is longer. 
 47.11     (d) For purposes of this chapter, a finding that a 
 47.12  delinquency petition is proven in juvenile court shall be 
 47.13  considered a conviction in state district court. 
 47.14     (e) The commissioner shall destroy juvenile court records 
 47.15  obtained under this subdivision when the subject of the records 
 47.16  reaches age 23. 
 47.17     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 47.18  following final enactment. 
 47.19     Sec. 47.  Minnesota Statutes 2003 Supplement, section 
 47.20  245C.09, subdivision 1, is amended to read: 
 47.21     Subdivision 1.  [DISQUALIFICATION; LICENSING ACTION.] An 
 47.22  applicant's, license holder's, or ~~registrant's~~ other entity's 
 47.23  failure or refusal to cooperate with the commissioner is 
 47.24  reasonable cause to disqualify a subject, deny a license 
 47.25  application, or immediately suspend or revoke a license or 
 47.26  registration. 
 47.27     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 47.28  following final enactment. 
 47.29     Sec. 48.  Minnesota Statutes 2003 Supplement, section 
 47.30  245C.13, subdivision 1, is amended to read: 
 47.31     Subdivision 1.  [TIMING.] Upon receipt of the background 
 47.32  study forms from an applicant, license holder, ~~registrant,~~ 
 47.33  ~~agency, organization, program,~~ or other entity as provided in 
 47.34  this chapter required to initiate a background study under 
 47.35  section 245C.04, the commissioner shall complete the background 
 47.36  study and provide the notice required under section 245C.17, 
 48.1   subdivision 1, within 15 working days. 
 48.2      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 48.3   following final enactment. 
 48.4      Sec. 49.  Minnesota Statutes 2003 Supplement, section 
 48.5   245C.14, subdivision 1, is amended to read: 
 48.6      Subdivision 1.  [DISQUALIFICATION FROM DIRECT CONTACT.] (a) 
 48.7   The commissioner shall disqualify an individual who is the 
 48.8   subject of a background study from any position allowing direct 
 48.9   contact with persons receiving services from the license holder 
 48.10  or entity identified in section 245C.03, upon receipt of 
 48.11  information showing, or when a background study completed under 
 48.12  this chapter shows any of the following: 
 48.13     (1) a conviction of or admission to one or more crimes 
 48.14  listed in section 245C.15, regardless of whether the conviction 
 48.15  or admission is a felony, gross misdemeanor, or misdemeanor 
 48.16  level crime; 
 48.17     (2) a preponderance of the evidence indicates the 
 48.18  individual has committed an act or acts that meet the definition 
 48.19  of any of the crimes listed in section 245C.15, regardless of 
 48.20  whether the preponderance of the evidence is for a felony, gross 
 48.21  misdemeanor, or misdemeanor level crime; or 
 48.22     (3) an investigation results in an administrative 
 48.23  determination listed under section 245C.15, subdivision 4, 
 48.24  paragraph (b). 
 48.25     (b) No individual who is disqualified following a 
 48.26  background study under section 245C.03, subdivisions 1 and 2, 
 48.27  may be retained in a position involving direct contact with 
 48.28  persons served by a program or entity identified in section 
 48.29  245C.03, unless the commissioner has provided written notice 
 48.30  under section 245C.17 stating that: 
 48.31     (1) the individual may remain in direct contact during the 
 48.32  period in which the individual may request reconsideration as 
 48.33  provided in section 245C.21, subdivision 2; 
 48.34     (2) the commissioner has set aside the individual's 
 48.35  disqualification for that program or entity identified in 
 48.36  section 245C.03, as provided in section 245C.22, subdivision 4; 
 49.1   or 
 49.2      (3) the license holder has been granted a variance for the 
 49.3   disqualified individual under section 245C.30. 
 49.4      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 49.5   following final enactment. 
 49.6      Sec. 50.  Minnesota Statutes 2003 Supplement, section 
 49.7   245C.15, subdivision 2, is amended to read: 
 49.8      Subd. 2.  [15-YEAR DISQUALIFICATION.] (a) An individual is 
 49.9   disqualified under section 245C.14 if:  (1) less than 15 years 
 49.10  have passed since the discharge of the sentence imposed for the 
 49.11  offense; and (2) the individual has received a felony conviction 
 49.12  for a violation of any of the following offenses:  sections 
 49.13  260C.301 (grounds for termination of parental rights); 609.165 
 49.14  (felon ineligible to possess firearm); 609.21 (criminal 
 49.15  vehicular homicide and injury); 609.215 (suicide); 609.223 or 
 49.16  609.2231 (assault in the third or fourth degree); repeat 
 49.17  offenses under 609.224 (assault in the fifth degree); 609.2325 
 49.18  (criminal abuse of a vulnerable adult); 609.2335 (financial 
 49.19  exploitation of a vulnerable adult); 609.235 (use of drugs to 
 49.20  injure or facilitate crime); 609.24 (simple robbery); 609.255 
 49.21  (false imprisonment); 609.2664 (manslaughter of an unborn child 
 49.22  in the first degree); 609.2665 (manslaughter of an unborn child 
 49.23  in the second degree); 609.267 (assault of an unborn child in 
 49.24  the first degree); 609.2671 (assault of an unborn child in the 
 49.25  second degree); 609.268 (injury or death of an unborn child in 
 49.26  the commission of a crime); 609.27 (coercion); 609.275 (attempt 
 49.27  to coerce); repeat offenses under 609.3451 (criminal sexual 
 49.28  conduct in the fifth degree); 609.498, subdivision 1 or 1b 
 49.29  (aggravated first degree or first degree tampering with a 
 49.30  witness); 609.52 (theft); 609.521 (possession of shoplifting 
 49.31  gear); 609.562 (arson in the second degree); 609.563 (arson in 
 49.32  the third degree); 609.582 (burglary); 609.625 (aggravated 
 49.33  forgery); 609.63 (forgery); 609.631 (check forgery; offering a 
 49.34  forged check); 609.635 (obtaining signature by false pretense); 
 49.35  609.66 (dangerous weapons); 609.67 (machine guns and 
 49.36  short-barreled shotguns); 609.687 (adulteration); 609.71 (riot); 
 50.1   609.713 (terroristic threats); repeat offenses under 617.23 
 50.2   (indecent exposure; penalties); repeat offenses under 617.241 
 50.3   (obscene materials and performances; distribution and exhibition 
 50.4   prohibited; penalty); chapter 152 (drugs; controlled substance); 
 50.5   or a felony level conviction involving alcohol or drug use. 
 50.6      (b) An individual is disqualified under section 245C.14 if 
 50.7   less than 15 years has passed since the individual's attempt or 
 50.8   conspiracy to commit any of the offenses listed in paragraph 
 50.9   (a), as each of these offenses is defined in Minnesota Statutes. 
 50.10     (c) An individual is disqualified under section 245C.14 if 
 50.11  less than 15 years has passed since the discharge of the 
 50.12  sentence imposed for an offense in any other state or country, 
 50.13  the elements of which are substantially similar to the elements 
 50.14  of the offenses listed in paragraph (a). 
 50.15     (d) If the individual studied is convicted of one of the 
 50.16  felonies listed in paragraph (a), but the sentence is a gross 
 50.17  misdemeanor or misdemeanor disposition, the individual is 
 50.18  disqualified but the disqualification lookback period for the 
 50.19  conviction is the period applicable to the gross misdemeanor or 
 50.20  misdemeanor disposition. 
 50.21     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 50.22  following final enactment. 
 50.23     Sec. 51.  Minnesota Statutes 2003 Supplement, section 
 50.24  245C.15, subdivision 3, is amended to read: 
 50.25     Subd. 3.  [TEN-YEAR DISQUALIFICATION.] (a) An individual is 
 50.26  disqualified under section 245C.14 if:  (1) less than ten years 
 50.27  have passed since the discharge of the sentence imposed for the 
 50.28  offense; and (2) the individual has received a gross misdemeanor 
 50.29  conviction for a violation of any of the following offenses:  
 50.30  sections 609.224 (assault in the fifth degree); 609.224, 
 50.31  subdivision 2, paragraph (c) (assault in the fifth degree by a 
 50.32  caregiver against a vulnerable adult); 609.2242 and 609.2243 
 50.33  (domestic assault); 609.23 (mistreatment of persons confined); 
 50.34  609.231 (mistreatment of residents or patients); 609.2325 
 50.35  (criminal abuse of a vulnerable adult); 609.233 (criminal 
 50.36  neglect of a vulnerable adult); 609.2335 (financial exploitation 
 51.1   of a vulnerable adult); 609.234 (failure to report maltreatment 
 51.2   of a vulnerable adult); 609.265 (abduction); 609.275 (attempt to 
 51.3   coerce); 609.324, subdivision 1a (other prohibited acts; minor 
 51.4   engaged in prostitution); 609.33 (disorderly house); 609.3451 
 51.5   (criminal sexual conduct in the fifth degree); 609.377 
 51.6   (malicious punishment of a child); 609.378 (neglect or 
 51.7   endangerment of a child); 609.52 (theft); 609.582 (burglary); 
 51.8   609.631 (check forgery; offering a forged check); 609.66 
 51.9   (dangerous weapons); 609.71 (riot); 609.72, subdivision 3 
 51.10  (disorderly conduct against a vulnerable adult); repeat offenses 
 51.11  under 609.746 (interference with privacy); 609.749, subdivision 
 51.12  2 (harassment; stalking); repeat offenses under 617.23 (indecent 
 51.13  exposure); 617.241 (obscene materials and performances); 617.243 
 51.14  (indecent literature, distribution); 617.293 (harmful materials; 
 51.15  dissemination and display to minors prohibited); or violation of 
 51.16  an order for protection under section 518B.01, subdivision 14. 
 51.17     (b) An individual is disqualified under section 245C.14 if 
 51.18  less than ten years has passed since the individual's attempt or 
 51.19  conspiracy to commit any of the offenses listed in paragraph 
 51.20  (a), as each of these offenses is defined in Minnesota Statutes. 
 51.21     (c) An individual is disqualified under section 245C.14 if 
 51.22  less than ten years has passed since the discharge of the 
 51.23  sentence imposed for an offense in any other state or country, 
 51.24  the elements of which are substantially similar to the elements 
 51.25  of any of the offenses listed in paragraph (a). 
 51.26     (d) If the defendant is convicted of one of the gross 
 51.27  misdemeanors listed in paragraph (a), but the sentence is a 
 51.28  misdemeanor disposition, the individual is disqualified but the 
 51.29  disqualification lookback period for the conviction is the 
 51.30  period applicable to misdemeanors. 
 51.31     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 51.32  following final enactment. 
 51.33     Sec. 52.  Minnesota Statutes 2003 Supplement, section 
 51.34  245C.15, subdivision 4, is amended to read: 
 51.35     Subd. 4.  [SEVEN-YEAR DISQUALIFICATION.] (a) An individual 
 51.36  is disqualified under section 245C.14 if:  (1) less than seven 
 52.1   years has passed since the discharge of the sentence imposed for 
 52.2   the offense; and (2) the individual has received a misdemeanor 
 52.3   conviction for a violation of any of the following offenses:  
 52.4   sections 609.224 (assault in the fifth degree); 609.2242 
 52.5   (domestic assault); 609.2335 (financial exploitation of a 
 52.6   vulnerable adult); 609.234 (failure to report maltreatment of a 
 52.7   vulnerable adult); 609.2672 (assault of an unborn child in the 
 52.8   third degree); 609.27 (coercion); violation of an order for 
 52.9   protection under 609.3232 (protective order authorized; 
 52.10  procedures; penalties); 609.52 (theft); 609.66 (dangerous 
 52.11  weapons); 609.665 (spring guns); 609.746 (interference with 
 52.12  privacy); 609.79 (obscene or harassing phone calls); 609.795 
 52.13  (letter, telegram, or package; opening; harassment); 617.23 
 52.14  (indecent exposure; penalties); 617.293 (harmful materials; 
 52.15  dissemination and display to minors prohibited); or violation of 
 52.16  an order for protection under section 518B.01 (Domestic Abuse 
 52.17  Act). 
 52.18     (b) An individual is disqualified under section 245C.14 if 
 52.19  less than seven years has passed since a determination or 
 52.20  disposition of the individual's: 
 52.21     (1) failure to make required reports under section 626.556, 
 52.22  subdivision 3, or 626.557, subdivision 3, for incidents in 
 52.23  which:  (i) the final disposition under section 626.556 or 
 52.24  626.557 was substantiated maltreatment, and (ii) the 
 52.25  maltreatment was recurring or serious; or 
 52.26     (2) substantiated serious or recurring maltreatment of a 
 52.27  minor under section 626.556 ~~or of~~, a vulnerable adult under 
 52.28  section 626.557, or serious or recurring maltreatment in any 
 52.29  other state, the elements of which are substantially similar to 
 52.30  the elements of maltreatment under section 626.556 or 626.557 
 52.31  for which:  (i) there is a preponderance of evidence that the 
 52.32  maltreatment occurred, and (ii) the subject was responsible for 
 52.33  the maltreatment. 
 52.34     (c) An individual is disqualified under section 245C.14 if 
 52.35  less than seven years has passed since the individual's attempt 
 52.36  or conspiracy to commit any of the offenses listed in paragraphs 
 53.1   (a) and (b), as each of these offenses is defined in Minnesota 
 53.2   Statutes. 
 53.3      (d) An individual is disqualified under section 245C.14 if 
 53.4   less than seven years has passed since the discharge of the 
 53.5   sentence imposed for an offense in any other state or country, 
 53.6   the elements of which are substantially similar to the elements 
 53.7   of any of the offenses listed in paragraphs (a) and (b). 
 53.8      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 53.9   following final enactment. 
 53.10     Sec. 53.  Minnesota Statutes 2003 Supplement, section 
 53.11  245C.16, subdivision 1, is amended to read: 
 53.12     Subdivision 1.  [DETERMINING IMMEDIATE RISK OF HARM.] (a) 
 53.13  If the commissioner determines that the individual studied has a 
 53.14  disqualifying characteristic, the commissioner shall review the 
 53.15  information immediately available and make a determination as to 
 53.16  the subject's immediate risk of harm to persons served by the 
 53.17  program where the individual studied will have direct contact. 
 53.18     (b) The commissioner shall consider all relevant 
 53.19  information available, including the following factors in 
 53.20  determining the immediate risk of harm: 
 53.21     (1) the recency of the disqualifying characteristic; 
 53.22     (2) the recency of discharge from probation for the crimes; 
 53.23     (3) the number of disqualifying characteristics; 
 53.24     (4) the intrusiveness or violence of the disqualifying 
 53.25  characteristic; 
 53.26     (5) the vulnerability of the victim involved in the 
 53.27  disqualifying characteristic; ~~and~~ 
 53.28     (6) the similarity of the victim to the persons served by 
 53.29  the program where the individual studied will have direct 
 53.30  contact; and 
 53.31     (7) whether the individual has a disqualification from a 
 53.32  previous background study that has not been set aside. 
 53.33     (c) This section does not apply when the subject of a 
 53.34  background study is regulated by a health-related licensing 
 53.35  board as defined in chapter 214, and the subject is determined 
 53.36  to be responsible for substantiated maltreatment under section 
 54.1   626.556 or 626.557. 
 54.2      (d) If the commissioner has reason to believe, based on 
 54.3   arrest information or an active maltreatment investigation, that 
 54.4   an individual poses an imminent risk of harm to persons 
 54.5   receiving services, the commissioner may order that the person 
 54.6   be continuously supervised or immediately removed pending the 
 54.7   conclusion of the maltreatment investigation or criminal 
 54.8   proceedings. 
 54.9      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 54.10  following final enactment. 
 54.11     Sec. 54.  Minnesota Statutes 2003 Supplement, section 
 54.12  245C.17, subdivision 1, is amended to read: 
 54.13     Subdivision 1.  [TIME FRAME FOR NOTICE OF STUDY RESULTS.] 
 54.14  (a) Within 15 working days after the commissioner's receipt of 
 54.15  the background study form, the commissioner shall notify the 
 54.16  individual who is the subject of the study in writing or by 
 54.17  electronic transmission of the results of the study or that more 
 54.18  time is needed to complete the study. 
 54.19     (b) Within 15 working days after the commissioner's receipt 
 54.20  of the background study form, the commissioner shall notify the 
 54.21  applicant, license holder, or ~~registrant~~ other entity as 
 54.22  provided in this chapter in writing or by electronic 
 54.23  transmission of the results of the study or that more time is 
 54.24  needed to complete the study. 
 54.25     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 54.26  following final enactment. 
 54.27     Sec. 55.  Minnesota Statutes 2003 Supplement, section 
 54.28  245C.17, subdivision 3, is amended to read: 
 54.29     Subd. 3.  [DISQUALIFICATION NOTICE SENT TO APPLICANT, 
 54.30  LICENSE HOLDER, OR ~~REGISTRANT~~ OTHER ENTITY.] (a) The 
 54.31  commissioner shall notify an applicant, license holder, 
 54.32  or ~~registrant~~ other entity as provided in this chapter who is 
 54.33  not the subject of the study: 
 54.34     (1) that the commissioner has found information that 
 54.35  disqualifies the individual studied from direct contact with, or 
 54.36  from access to, persons served by the program; and 
 55.1      (2) the commissioner's determination of the individual's 
 55.2   risk of harm under section 245C.16. 
 55.3      (b) If the commissioner determines under section 245C.16 
 55.4   that an individual studied poses an imminent risk of harm to 
 55.5   persons served by the program where the individual studied will 
 55.6   have direct contact, the commissioner shall order the license 
 55.7   holder to immediately remove the individual studied from direct 
 55.8   contact. 
 55.9      (c) If the commissioner determines under section 245C.16 
 55.10  that an individual studied poses a risk of harm that requires 
 55.11  continuous, direct supervision, the commissioner shall order the 
 55.12  applicant, license holder, or other entities as provided in this 
 55.13  chapter to: 
 55.14     (1) immediately remove the individual studied from direct 
 55.15  contact services; or 
 55.16     (2) assure that the individual studied is under continuous, 
 55.17  direct supervision when providing direct contact services during 
 55.18  the period in which the individual may request a reconsideration 
 55.19  of the disqualification under section 245C.21. 
 55.20     (d) If the commissioner determines under section 245C.16 
 55.21  that an individual studied does not pose a risk of harm that 
 55.22  requires continuous, direct supervision, the commissioner shall 
 55.23  send the license holder a notice that more time is needed to 
 55.24  complete the individual's background study. 
 55.25     (e) The commissioner shall not notify the applicant, 
 55.26  license holder, or ~~registrant~~ other entity as provided in this 
 55.27  chapter of the information contained in the subject's background 
 55.28  study unless: 
 55.29     (1) the basis for the disqualification is failure to 
 55.30  cooperate with the background study or substantiated 
 55.31  maltreatment under section 626.556 or 626.557; 
 55.32     (2) the Data Practices Act under chapter 13 provides for 
 55.33  release of the information; or 
 55.34     (3) the individual studied authorizes the release of the 
 55.35  information. 
 55.36     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 56.1   following final enactment. 
 56.2      Sec. 56.  Minnesota Statutes 2003 Supplement, section 
 56.3   245C.18, is amended to read: 
 56.4      245C.18 [OBLIGATION TO REMOVE DISQUALIFIED INDIVIDUAL FROM 
 56.5   DIRECT CONTACT.] 
 56.6      Upon receipt of notice from the commissioner, the license 
 56.7   holder must remove a disqualified individual from direct contact 
 56.8   with persons served by the licensed program if:  (1) the 
 56.9   individual does not request reconsideration under section 
 56.10  245C.21 within the prescribed time~~, or if~~; (2) the individual 
 56.11  submits a timely request for reconsideration, ~~and~~ the 
 56.12  commissioner does not set aside the disqualification under 
 56.13  section 245C.22, subdivision 4~~.~~, and the individual does not 
 56.14  submit a timely request for a hearing under sections 245C.27 and 
 56.15  256.045, or 245C.28 and chapter 14; or (3) the individual 
 56.16  submits a timely request for a hearing under sections 245C.27 
 56.17  and 256.045, or 245C.28 and chapter 14, and the commissioner 
 56.18  does not set aside or rescind the disqualification under section 
 56.19  245A.08, subdivision 5, or 256.045. 
 56.20     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 56.21  following final enactment. 
 56.22     Sec. 57.  Minnesota Statutes 2003 Supplement, section 
 56.23  245C.20, is amended to read: 
 56.24     245C.20 [LICENSE HOLDER RECORD KEEPING.] 
 56.25     A licensed program shall document the date the program 
 56.26  initiates a background study under this chapter in the program's 
 56.27  personnel files.  When a background study is completed under 
 56.28  this chapter, a licensed program shall maintain a notice that 
 56.29  the study was undertaken and completed in the program's 
 56.30  personnel files.  If a licensed program has not received a 
 56.31  response from the commissioner under section 245C.17 within 45 
 56.32  days of initiation of the background study request, the licensed 
 56.33  program must contact the commissioner to inquire about the 
 56.34  status of the study. 
 56.35     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 56.36  following final enactment. 
 57.1      Sec. 58.  Minnesota Statutes 2003 Supplement, section 
 57.2   245C.21, subdivision 3, is amended to read: 
 57.3      Subd. 3.  [INFORMATION DISQUALIFIED INDIVIDUALS MUST 
 57.4   PROVIDE WHEN REQUESTING RECONSIDERATION.] The disqualified 
 57.5   individual requesting reconsideration must submit information 
 57.6   showing that: 
 57.7      (1) the information the commissioner relied upon in 
 57.8   determining the underlying conduct that gave rise to the 
 57.9   disqualification is incorrect; 
 57.10     (2) for maltreatment, the information the commissioner 
 57.11  relied upon in determining that maltreatment was serious or 
 57.12  recurring is incorrect; or 
 57.13     (3) the subject of the study does not pose a risk of harm 
 57.14  to any person served by the applicant, license holder, or 
 57.15  ~~registrant~~ other entities as provided in this chapter, by 
 57.16  addressing the information required under section 245C.22, 
 57.17  subdivision 4. 
 57.18     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 57.19  following final enactment. 
 57.20     Sec. 59.  Minnesota Statutes 2003 Supplement, section 
 57.21  245C.21, is amended by adding a subdivision to read: 
 57.22     Subd. 4.  [NOTICE OF REQUEST FOR RECONSIDERATION.] Upon 
 57.23  request, the commissioner may inform the applicant, license 
 57.24  holder, or other entities as provided in this chapter who 
 57.25  received a notice of the individual's disqualification under 
 57.26  section 245C.17, subdivision 3, or has the consent of the 
 57.27  disqualified individual, whether the disqualified individual has 
 57.28  requested reconsideration. 
 57.29     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 57.30  following final enactment. 
 57.31     Sec. 60.  Minnesota Statutes 2003 Supplement, section 
 57.32  245C.22, subdivision 3, is amended to read: 
 57.33     Subd. 3.  [PREEMINENT WEIGHT GIVEN TO SAFETY OF PERSONS 
 57.34  BEING SERVED.] In reviewing a request for reconsideration of a 
 57.35  disqualification, the commissioner shall give preeminent weight 
 57.36  to the safety of each person served by the license holder, 
 58.1   applicant, or ~~registrant~~ other entities as provided in this 
 58.2   chapter over the interests of the license holder, applicant, 
 58.3   or ~~registrant~~ other entity as provided in this chapter, and any 
 58.4   single factor under subdivision 4, paragraph (b), may be 
 58.5   determinative of the commissioner's decision whether to set 
 58.6   aside the individual's disqualification. 
 58.7      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 58.8   following final enactment. 
 58.9      Sec. 61.  Minnesota Statutes 2003 Supplement, section 
 58.10  245C.22, subdivision 4, is amended to read: 
 58.11     Subd. 4.  [RISK OF HARM; SET ASIDE.] (a) The commissioner 
 58.12  may set aside the disqualification if the commissioner finds 
 58.13  that the individual has submitted sufficient information to 
 58.14  demonstrate that the individual does not pose a risk of harm to 
 58.15  any person served by the applicant, license holder, 
 58.16  or ~~registrant~~ other entities as provided in this chapter. 
 58.17     (b) In determining ~~if~~ whether the individual has met the 
 58.18  burden of proof by demonstrating the individual does not pose a 
 58.19  risk of harm, the commissioner shall consider: 
 58.20     (1) the nature, severity, and consequences of the event or 
 58.21  events that led to the disqualification; 
 58.22     (2) whether there is more than one disqualifying event; 
 58.23     (3) the age and vulnerability of the victim at the time of 
 58.24  the event; 
 58.25     (4) the harm suffered by the victim; 
 58.26     (5) the similarity between the victim and persons served by 
 58.27  the program; 
 58.28     (6) the time elapsed without a repeat of the same or 
 58.29  similar event; 
 58.30     (7) documentation of successful completion by the 
 58.31  individual studied of training or rehabilitation pertinent to 
 58.32  the event; and 
 58.33     (8) any other information relevant to reconsideration. 
 58.34     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 58.35  following final enactment. 
 58.36     Sec. 62.  Minnesota Statutes 2003 Supplement, section 
 59.1   245C.22, subdivision 5, is amended to read: 
 59.2      Subd. 5.  [SCOPE OF SET ASIDE.] If the commissioner sets 
 59.3   aside a disqualification under this section, the disqualified 
 59.4   individual remains disqualified, but may hold a license and have 
 59.5   direct contact with or access to persons receiving services.  
 59.6   The commissioner's set aside of a disqualification is limited 
 59.7   solely to the licensed program, applicant, or agency specified 
 59.8   in the set aside notice under section 245C.23, unless otherwise 
 59.9   specified in the notice. 
 59.10     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 59.11  following final enactment. 
 59.12     Sec. 63.  Minnesota Statutes 2003 Supplement, section 
 59.13  245C.22, subdivision 6, is amended to read: 
 59.14     Subd. 6.  [RECISION OF SET ASIDE.] The commissioner may 
 59.15  rescind a previous set aside of a disqualification under this 
 59.16  section based on new information that indicates the individual 
 59.17  may pose a risk of harm to persons served by the applicant, 
 59.18  license holder, or ~~registrant~~ other entities as provided in this 
 59.19  chapter.  If the commissioner rescinds a set aside of a 
 59.20  disqualification under this ~~paragraph~~ subdivision, the appeal 
 59.21  rights under sections 245C.21 ~~and~~, 245C.27, subdivision 1, and 
 59.22  245C.28, subdivision 3, shall apply. 
 59.23     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 59.24  following final enactment. 
 59.25     Sec. 64.  Minnesota Statutes 2003 Supplement, section 
 59.26  245C.23, subdivision 1, is amended to read: 
 59.27     Subdivision 1.  [COMMISSIONER'S NOTICE OF DISQUALIFICATION 
 59.28  THAT IS SET ASIDE.] (a) Except as provided under paragraph (c), 
 59.29  if the commissioner sets aside a disqualification, the 
 59.30  commissioner shall notify the applicant or license holder in 
 59.31  writing or by electronic transmission of the decision.  In the 
 59.32  notice from the commissioner that a disqualification has been 
 59.33  set aside, the commissioner must inform the license holder that 
 59.34  information about the nature of the disqualification and which 
 59.35  factors under section 245C.22, subdivision 4, were the basis of 
 59.36  the decision to set aside the disqualification are available to 
 60.1   the license holder upon request without the consent of the 
 60.2   background study subject. 
 60.3      (b) With the written consent of the background study 
 60.4   subject, the commissioner may release to the license holder 
 60.5   copies of all information related to the background study 
 60.6   subject's disqualification and the commissioner's decision to 
 60.7   set aside the disqualification as specified in the written 
 60.8   consent. 
 60.9      (c) If the individual studied submits a timely request for 
 60.10  reconsideration under section 245C.21 and the license holder was 
 60.11  previously sent a notice under section 245C.17, subdivision 3, 
 60.12  paragraph (d), and if the commissioner sets aside the 
 60.13  disqualification for that license holder under section 245C.22, 
 60.14  the commissioner shall send the license holder the same 
 60.15  notification received by license holders in cases where the 
 60.16  individual studied has no disqualifying characteristic. 
 60.17     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 60.18  following final enactment. 
 60.19     Sec. 65.  Minnesota Statutes 2003 Supplement, section 
 60.20  245C.23, subdivision 2, is amended to read: 
 60.21     Subd. 2.  [COMMISSIONER'S NOTICE OF DISQUALIFICATION THAT 
 60.22  IS NOT SET ASIDE.] (a) The commissioner shall notify the license 
 60.23  holder of the disqualification and order the license holder to 
 60.24  immediately remove the individual from any position allowing 
 60.25  direct contact with persons receiving services from the license 
 60.26  holder if:  (1) the individual studied does not submit a timely 
 60.27  request for reconsideration under section 245C.21~~, or~~; (2) the 
 60.28  individual submits a timely request for reconsideration, but the 
 60.29  commissioner does not set aside the disqualification for that 
 60.30  license holder under section 245C.22~~, the commissioner shall~~ 
 60.31  ~~notify the license holder of the disqualification and order the~~ 
 60.32  ~~license holder to immediately remove the individual from any~~ 
 60.33  ~~position allowing direct contact with persons receiving services~~ 
 60.34  ~~from the license holder.~~; (3) an individual who has a right to 
 60.35  request a hearing under sections 245C.27 and 256.045, or 245C.28 
 60.36  and chapter 14 for a disqualification that has not been set 
 61.1   aside, does not request a hearing within the specified time; or 
 61.2   (4) an individual submitted a timely request for a hearing under 
 61.3   sections 245C.27 and 256.045, or 245C.28 and chapter 14, but the 
 61.4   commissioner does not set aside the disqualification under 
 61.5   section 245A.08, subdivision 5, or 256.045. 
 61.6      (b) If the commissioner does not set aside the 
 61.7   disqualification under section 245C.22, and the license holder 
 61.8   was previously ordered under section 245C.17 to immediately 
 61.9   remove the disqualified individual from direct contact with 
 61.10  persons receiving services or to ensure that the individual is 
 61.11  under continuous, direct supervision when providing direct 
 61.12  contact services, the order remains in effect pending the 
 61.13  outcome of a hearing under sections 245C.27 and 256.045, or 
 61.14  245C.28 and chapter 14. 
 61.15     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 61.16  following final enactment. 
 61.17     Sec. 66.  Minnesota Statutes 2003 Supplement, section 
 61.18  245C.25, is amended to read: 
 61.19     245C.25 [CONSOLIDATED RECONSIDERATION OF MALTREATMENT 
 61.20  DETERMINATION AND DISQUALIFICATION.] 
 61.21     (a) If an individual is disqualified on the basis of a 
 61.22  determination of maltreatment under section 626.556 or 626.557, 
 61.23  which was serious or recurring, and the individual requests 
 61.24  reconsideration of the maltreatment determination under section 
 61.25  626.556, subdivision 10i, or 626.557, subdivision 9d, and also 
 61.26  requests reconsideration of the disqualification under section 
 61.27  245C.21, the commissioner shall consolidate the reconsideration 
 61.28  of the maltreatment determination and the disqualification into 
 61.29  a single reconsideration. 
 61.30     (b) For maltreatment and disqualification determinations 
 61.31  made by county agencies, the county agency shall conduct the 
 61.32  consolidated reconsideration.  If the county agency has 
 61.33  disqualified an individual on multiple bases, one of which is a 
 61.34  county maltreatment determination for which the individual has a 
 61.35  right to request reconsideration, the county shall conduct the 
 61.36  reconsideration of all disqualifications. 
 62.1      (c) If the county has previously conducted a consolidated 
 62.2   reconsideration under paragraph (b) of a maltreatment 
 62.3   determination and a disqualification based on serious or 
 62.4   recurring maltreatment, and the county subsequently disqualifies 
 62.5   the individual based on that determination, the county shall 
 62.6   conduct the reconsideration of the subsequent disqualification.  
 62.7   The scope of the subsequent disqualification shall be limited to 
 62.8   whether the individual poses a risk of harm in accordance with 
 62.9   section 245C.22, subdivision 4. 
 62.10     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 62.11  following final enactment. 
 62.12     Sec. 67.  Minnesota Statutes 2003 Supplement, section 
 62.13  245C.26, is amended to read: 
 62.14     245C.26 [RECONSIDERATION OF A DISQUALIFICATION FOR AN 
 62.15  INDIVIDUAL LIVING IN A LICENSED HOME.] 
 62.16     In the case of any ground for disqualification under this 
 62.17  chapter, if the act was committed by an individual other than 
 62.18  the applicant~~,~~ or license holder~~, or registrant~~ residing in the 
 62.19  applicant's~~,~~ or license holder's~~, or registrant's~~ home, the 
 62.20  applicant~~,~~ or license holder~~, or registrant~~ may seek 
 62.21  reconsideration when the individual who committed the act no 
 62.22  longer resides in the home. 
 62.23     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 62.24  following final enactment. 
 62.25     Sec. 68.  Minnesota Statutes 2003 Supplement, section 
 62.26  245C.27, subdivision 1, is amended to read: 
 62.27     Subdivision 1.  [FAIR HEARING WHEN DISQUALIFICATION IS NOT 
 62.28  SET ASIDE.] (a) If the commissioner does not set aside or 
 62.29  rescind a disqualification of an individual under section 
 62.30  245C.22 who is disqualified on the basis of a preponderance of 
 62.31  evidence that the individual committed an act or acts that meet 
 62.32  the definition of any of the crimes listed in section 245C.15; 
 62.33  for a determination under section 626.556 or 626.557 of 
 62.34  substantiated maltreatment that was serious or recurring under 
 62.35  section 245C.15; or for failure to make required reports under 
 62.36  section 626.556, subdivision 3; or 626.557, subdivision 3, 
 63.1   pursuant to section 245C.15, subdivision 4, paragraph (b), 
 63.2   clause (1), the individual may request a fair hearing under 
 63.3   section 256.045, unless the disqualification is deemed 
 63.4   conclusive under section 245C.29. 
 63.5      (b) The fair hearing is the only administrative appeal of 
 63.6   the final agency determination for purposes of appeal by the 
 63.7   disqualified individual.  The disqualified individual does not 
 63.8   have the right to challenge the accuracy and completeness of 
 63.9   data under section 13.04. 
 63.10     (c) If the individual was disqualified based on a 
 63.11  conviction or admission to any crimes listed in section 245C.15, 
 63.12  subdivisions 1 to 4, the reconsideration decision under ~~this~~ 
 63.13  ~~subdivision~~ section 245C.22 is the final agency determination 
 63.14  for purposes of appeal by the disqualified individual and is not 
 63.15  subject to a hearing under section 256.045. 
 63.16     (d) This ~~section~~ subdivision does not apply to a public 
 63.17  employee's appeal of a disqualification under section 245C.28, 
 63.18  subdivision 3. 
 63.19     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 63.20  following final enactment. 
 63.21     Sec. 69.  Minnesota Statutes 2003 Supplement, section 
 63.22  245C.27, subdivision 2, is amended to read: 
 63.23     Subd. 2.  [CONSOLIDATED FAIR HEARING FOR MALTREATMENT 
 63.24  DETERMINATION AND DISQUALIFICATION NOT SET ASIDE.] (a) If an 
 63.25  individual who is disqualified on the bases of serious or 
 63.26  recurring maltreatment requests a fair hearing on the 
 63.27  maltreatment determination under section 626.556, subdivision 
 63.28  10i, or 626.557, subdivision 9d, and requests a fair hearing 
 63.29  under this section on the disqualification, which has not been 
 63.30  set aside ~~or rescinded~~, the scope of the fair hearing under 
 63.31  section 256.045 shall include the maltreatment determination and 
 63.32  the disqualification. 
 63.33     (b) A fair hearing is the only administrative appeal of the 
 63.34  final agency determination.  The disqualified individual does 
 63.35  not have the right to challenge the accuracy and completeness of 
 63.36  data under section 13.04. 
 64.1      (c) This ~~section~~ subdivision does not apply to a public 
 64.2   employee's appeal of a disqualification under section 245C.28, 
 64.3   subdivision 3. 
 64.4      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 64.5   following final enactment. 
 64.6      Sec. 70.  Minnesota Statutes 2003 Supplement, section 
 64.7   245C.28, subdivision 1, is amended to read: 
 64.8      Subdivision 1.  [LICENSE HOLDER.] (a) If a maltreatment 
 64.9   determination or a disqualification for which reconsideration 
 64.10  was requested and which was not set aside ~~or rescinded~~ is the 
 64.11  basis for a denial of a license under section 245A.05 or a 
 64.12  licensing sanction under section 245A.07, the license holder has 
 64.13  the right to a contested case hearing under chapter 14 and 
 64.14  Minnesota Rules, parts 1400.8505 to 1400.8612. 
 64.15     (b) The license holder must submit the appeal in accordance 
 64.16  with section 245A.05 or 245A.07, subdivision 3.  As provided 
 64.17  under section 245A.08, subdivision 2a, the scope of the 
 64.18  consolidated contested case hearing must include the 
 64.19  disqualification and the licensing sanction or denial of a 
 64.20  license. 
 64.21     (c) If the disqualification was based on a determination of 
 64.22  substantiated serious or recurring maltreatment under section 
 64.23  626.556 or 626.557, the appeal must be submitted in accordance 
 64.24  with sections 245A.07, subdivision 3, and 626.556, subdivision 
 64.25  10i, or 626.557, subdivision 9d.  As provided for under section 
 64.26  245A.08, subdivision 2a, the scope of the contested case hearing 
 64.27  must include the maltreatment determination, the 
 64.28  disqualification, and the licensing sanction or denial of a 
 64.29  license.  In such cases, a fair hearing must not be conducted 
 64.30  under section 256.045. 
 64.31     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 64.32  following final enactment. 
 64.33     Sec. 71.  Minnesota Statutes 2003 Supplement, section 
 64.34  245C.28, subdivision 2, is amended to read: 
 64.35     Subd. 2.  [INDIVIDUAL OTHER THAN LICENSE HOLDER.] If the 
 64.36  basis for the commissioner's denial of a license under section 
 65.1   245A.05 or a licensing sanction under section 245A.07 is a 
 65.2   maltreatment determination or disqualification that was not set 
 65.3   aside ~~or rescinded~~ under section 245C.22, and the disqualified 
 65.4   subject is an individual other than the license holder and upon 
 65.5   whom a background study must be conducted under section 245C.03, 
 65.6   the hearing of all parties may be consolidated into a single 
 65.7   contested case hearing upon consent of all parties and the 
 65.8   administrative law judge. 
 65.9      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 65.10  following final enactment. 
 65.11     Sec. 72.  Minnesota Statutes 2003 Supplement, section 
 65.12  245C.28, subdivision 3, is amended to read: 
 65.13     Subd. 3.  [EMPLOYEES OF PUBLIC EMPLOYER.] (a) If the 
 65.14  commissioner does not set aside the disqualification of an 
 65.15  individual who is an employee of an employer, as defined in 
 65.16  section 179A.03, subdivision 15, the individual may request a 
 65.17  contested case hearing under chapter 14.  The request for a 
 65.18  contested case hearing must be made in writing and must be 
 65.19  postmarked and mailed within 30 calendar days after the employee 
 65.20  receives notice that the disqualification has not been set aside.
 65.21     (b) If the commissioner does not set aside or rescind a 
 65.22  disqualification that is based on a maltreatment determination, 
 65.23  the scope of the contested case hearing must include the 
 65.24  maltreatment determination and the disqualification.  In such 
 65.25  cases, a fair hearing must not be conducted under section 
 65.26  256.045. 
 65.27     (c) Rules adopted under this chapter may not preclude an 
 65.28  employee in a contested case hearing for a disqualification from 
 65.29  submitting evidence concerning information gathered under this 
 65.30  chapter. 
 65.31     (d) When a person has been disqualified from multiple 
 65.32  licensed programs and the disqualifications have not been set 
 65.33  aside under section 245C.22, if at least one of the 
 65.34  disqualifications entitles the person to a contested case 
 65.35  hearing under this subdivision, the scope of the contested case 
 65.36  hearing shall include all disqualifications from licensed 
 66.1   programs which were not set aside. 
 66.2      (e) In determining whether the disqualification should be 
 66.3   set aside, the administrative law judge shall consider all of 
 66.4   the characteristics that cause the individual to be 
 66.5   disqualified, including those characteristics that were not 
 66.6   subject to review under paragraph (b), in order to determine 
 66.7   whether the individual poses a risk of harm.  The administrative 
 66.8   law judge's recommendation and the commissioner's order to set 
 66.9   aside a disqualification that is the subject of the hearing 
 66.10  constitutes a determination that the individual does not pose a 
 66.11  risk of harm and that the individual may provide direct contact 
 66.12  services in the individual program specified in the set aside. 
 66.13     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 66.14  following final enactment. 
 66.15     Sec. 73.  Minnesota Statutes 2003 Supplement, section 
 66.16  245C.29, subdivision 2, is amended to read: 
 66.17     Subd. 2.  [CONCLUSIVE DISQUALIFICATION DETERMINATION.] (a) 
 66.18  Unless otherwise specified in statute, a determination that: 
 66.19     (1) the information the commissioner relied upon to 
 66.20  disqualify an individual under section 245C.14 was correct based 
 66.21  on serious or recurring maltreatment; 
 66.22     (2) a preponderance of the evidence shows that the 
 66.23  individual committed an act or acts that meet the definition of 
 66.24  any of the crimes listed in section 245C.15; or 
 66.25     (3) the individual failed to make required reports under 
 66.26  section 626.556, subdivision 3, or 626.557, subdivision 3, is 
 66.27  conclusive if: 
 66.28     (i) the commissioner has issued a final order in an appeal 
 66.29  of that determination under section 245A.08, subdivision 5, or 
 66.30  256.045, or a court has issued a final decision; 
 66.31     (ii) the individual did not request reconsideration of the 
 66.32  disqualification under section 245C.21; or 
 66.33     (iii) the individual did not request a hearing on the 
 66.34  disqualification under section 256.045 or chapter 14. 
 66.35     (b) When a licensing action under section 245A.05, 245A.06, 
 66.36  or 245A.07 is based on the disqualification of an individual in 
 67.1   connection with a license to provide family child care, foster 
 67.2   care for children in the provider's own home, or foster care 
 67.3   services for adults in the provider's own home, that 
 67.4   disqualification shall be conclusive for purposes of the 
 67.5   licensing action if a request for reconsideration was not 
 67.6   submitted within 30 calendar days of the individual's receipt of 
 67.7   the notice of disqualification. 
 67.8      (c) If a determination that the information relied upon to 
 67.9   disqualify an individual was correct and is conclusive under 
 67.10  this section, and the individual is subsequently disqualified 
 67.11  under section 245C.15, the individual has a right to request 
 67.12  reconsideration on the risk of harm under section 245C.21.  
 67.13  Subsequent determinations regarding the risk of harm shall be 
 67.14  made according to section 245C.22 and are not subject to another 
 67.15  hearing under section 256.045 or chapter 14. 
 67.16     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 67.17  following final enactment. 
 67.18     Sec. 74.  Minnesota Statutes 2002, section 252.28, 
 67.19  subdivision 1, is amended to read: 
 67.20     Subdivision 1.  [DETERMINATIONS; REDETERMINATIONS.] In 
 67.21  conjunction with the appropriate county boards, the commissioner 
 67.22  of human services shall determine, and shall redetermine at 
 67.23  least every four years, the need, anticipated growth or decline 
 67.24  in need until the next anticipated redetermination, location, 
 67.25  size, and program of public and private day training and 
 67.26  habilitation services for persons with mental retardation or 
 67.27  related conditions.  This subdivision does not apply to 
 67.28  semi-independent living services and residential-based 
 67.29  habilitation services provided to four or fewer persons at a 
 67.30  single site funded as home and community-based services.  A 
 67.31  determination of need shall not be required for a change in 
 67.32  ownership. 
 67.33     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 67.34  following final enactment. 
 67.35     Sec. 75.  Minnesota Statutes 2003 Supplement, section 
 67.36  256.045, subdivision 3, is amended to read: 
 68.1      Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
 68.2   hearings are available for the following:  (1) any person 
 68.3   applying for, receiving or having received public assistance, 
 68.4   medical care, or a program of social services granted by the 
 68.5   state agency or a county agency or the federal Food Stamp Act 
 68.6   whose application for assistance is denied, not acted upon with 
 68.7   reasonable promptness, or whose assistance is suspended, 
 68.8   reduced, terminated, or claimed to have been incorrectly paid; 
 68.9   (2) any patient or relative aggrieved by an order of the 
 68.10  commissioner under section 252.27; (3) a party aggrieved by a 
 68.11  ruling of a prepaid health plan; (4) except as provided under 
 68.12  chapter 245C, any individual or facility determined by a lead 
 68.13  agency to have maltreated a vulnerable adult under section 
 68.14  626.557 after they have exercised their right to administrative 
 68.15  reconsideration under section 626.557; (5) any person whose 
 68.16  claim for foster care payment according to a placement of the 
 68.17  child resulting from a child protection assessment under section 
 68.18  626.556 is denied or not acted upon with reasonable promptness, 
 68.19  regardless of funding source; (6) any person to whom a right of 
 68.20  appeal according to this section is given by other provision of 
 68.21  law; (7) an applicant aggrieved by an adverse decision to an 
 68.22  application for a hardship waiver under section 256B.15; (8) 
 68.23  except as provided under chapter 245A, an individual or facility 
 68.24  determined to have maltreated a minor under section 626.556, 
 68.25  after the individual or facility has exercised the right to 
 68.26  administrative reconsideration under section 626.556; or (9) 
 68.27  except as provided under chapter 245C, an individual 
 68.28  disqualified under sections 245C.14 and 245C.15, on the basis of 
 68.29  serious or recurring maltreatment; a preponderance of the 
 68.30  evidence that the individual has committed an act or acts that 
 68.31  meet the definition of any of the crimes listed in section 
 68.32  245C.15, subdivisions 1 to 4; or for failing to make reports 
 68.33  required under section 626.556, subdivision 3, or 626.557, 
 68.34  subdivision 3.  Hearings regarding a maltreatment determination 
 68.35  under clause (4) or (8) and a disqualification under this clause 
 68.36  in which the basis for a disqualification is serious or 
 69.1   recurring maltreatment, which has not been set aside ~~or~~ 
 69.2   ~~rescinded~~ under sections 245C.22 and 245C.23, shall be 
 69.3   consolidated into a single fair hearing.  In such cases, the 
 69.4   scope of review by the human services referee shall include both 
 69.5   the maltreatment determination and the disqualification.  The 
 69.6   failure to exercise the right to an administrative 
 69.7   reconsideration shall not be a bar to a hearing under this 
 69.8   section if federal law provides an individual the right to a 
 69.9   hearing to dispute a finding of maltreatment.  Individuals and 
 69.10  organizations specified in this section may contest the 
 69.11  specified action, decision, or final disposition before the 
 69.12  state agency by submitting a written request for a hearing to 
 69.13  the state agency within 30 days after receiving written notice 
 69.14  of the action, decision, or final disposition, or within 90 days 
 69.15  of such written notice if the applicant, recipient, patient, or 
 69.16  relative shows good cause why the request was not submitted 
 69.17  within the 30-day time limit. 
 69.18     The hearing for an individual or facility under clause (4), 
 69.19  (8), or (9) is the only administrative appeal to the final 
 69.20  agency determination specifically, including a challenge to the 
 69.21  accuracy and completeness of data under section 13.04.  Hearings 
 69.22  requested under clause (4) apply only to incidents of 
 69.23  maltreatment that occur on or after October 1, 1995.  Hearings 
 69.24  requested by nursing assistants in nursing homes alleged to have 
 69.25  maltreated a resident prior to October 1, 1995, shall be held as 
 69.26  a contested case proceeding under the provisions of chapter 14.  
 69.27  Hearings requested under clause (8) apply only to incidents of 
 69.28  maltreatment that occur on or after July 1, 1997.  A hearing for 
 69.29  an individual or facility under clause (8) is only available 
 69.30  when there is no juvenile court or adult criminal action 
 69.31  pending.  If such action is filed in either court while an 
 69.32  administrative review is pending, the administrative review must 
 69.33  be suspended until the judicial actions are completed.  If the 
 69.34  juvenile court action or criminal charge is dismissed or the 
 69.35  criminal action overturned, the matter may be considered in an 
 69.36  administrative hearing. 
 70.1      For purposes of this section, bargaining unit grievance 
 70.2   procedures are not an administrative appeal. 
 70.3      The scope of hearings involving claims to foster care 
 70.4   payments under clause (5) shall be limited to the issue of 
 70.5   whether the county is legally responsible for a child's 
 70.6   placement under court order or voluntary placement agreement 
 70.7   and, if so, the correct amount of foster care payment to be made 
 70.8   on the child's behalf and shall not include review of the 
 70.9   propriety of the county's child protection determination or 
 70.10  child placement decision. 
 70.11     (b) A vendor of medical care as defined in section 256B.02, 
 70.12  subdivision 7, or a vendor under contract with a county agency 
 70.13  to provide social services is not a party and may not request a 
 70.14  hearing under this section, except if assisting a recipient as 
 70.15  provided in subdivision 4. 
 70.16     (c) An applicant or recipient is not entitled to receive 
 70.17  social services beyond the services included in the amended 
 70.18  community social services plan. 
 70.19     (d) The commissioner may summarily affirm the county or 
 70.20  state agency's proposed action without a hearing when the sole 
 70.21  issue is an automatic change due to a change in state or federal 
 70.22  law. 
 70.23     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 70.24  following final enactment. 
 70.25     Sec. 76.  Minnesota Statutes 2003 Supplement, section 
 70.26  256.045, subdivision 3b, is amended to read: 
 70.27     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT AND 
 70.28  DISQUALIFICATION HEARINGS.] (a) The state human services referee 
 70.29  shall determine that maltreatment has occurred if a 
 70.30  preponderance of evidence exists to support the final 
 70.31  disposition under sections 626.556 and 626.557.  For purposes of 
 70.32  hearings regarding disqualification, the state human services 
 70.33  referee shall affirm the proposed disqualification in an appeal 
 70.34  under subdivision 3, paragraph (a), clause (9), if a 
 70.35  preponderance of the evidence shows the individual has:  
 70.36     (1) committed maltreatment under section 626.556 or 
 71.1   626.557, which is serious or recurring; 
 71.2      (2) committed an act or acts meeting the definition of any 
 71.3   of the crimes listed in section 245C.15, subdivisions 1 to 4; or 
 71.4      (3) failed to make required reports under section 626.556 
 71.5   or 626.557, for incidents in which the final disposition under 
 71.6   section 626.556 or 626.557 was substantiated maltreatment that 
 71.7   was serious or recurring.  
 71.8      (b) If the disqualification is affirmed, the state human 
 71.9   services referee shall determine whether the individual poses a 
 71.10  risk of harm in accordance with the requirements of section 
 71.11  245C.16~~.~~, and whether the disqualification should be set aside 
 71.12  or not set aside.  In determining whether the disqualification 
 71.13  should be set aside, the human services referee shall consider 
 71.14  all of the characteristics that cause the individual to be 
 71.15  disqualified, including those characteristics that were not 
 71.16  subject to review under paragraph (a), in order to determine 
 71.17  whether the individual poses a risk of harm.  A decision to set 
 71.18  aside a disqualification that is the subject of the hearing 
 71.19  constitutes a determination that the individual does not pose a 
 71.20  risk of harm and that the individual may provide direct contact 
 71.21  services in the individual program specified in the set aside.  
 71.22  If a determination that the information relied upon to 
 71.23  disqualify an individual was correct and is conclusive under 
 71.24  section 245C.29, and the individual is subsequently disqualified 
 71.25  under section 245C.14, the individual has a right to again 
 71.26  request reconsideration on the risk of harm under section 
 71.27  245C.21.  Subsequent determinations regarding risk of harm are 
 71.28  not subject to another hearing under this section. 
 71.29     (c) The state human services referee shall recommend an 
 71.30  order to the commissioner of health, education, or human 
 71.31  services, as applicable, who shall issue a final order.  The 
 71.32  commissioner shall affirm, reverse, or modify the final 
 71.33  disposition.  Any order of the commissioner issued in accordance 
 71.34  with this subdivision is conclusive upon the parties unless 
 71.35  appeal is taken in the manner provided in subdivision 7.  In any 
 71.36  licensing appeal under chapters 245A and 245C and sections 
 72.1   144.50 to 144.58 and 144A.02 to 144A.46, the commissioner's 
 72.2   determination as to maltreatment is conclusive, as provided 
 72.3   under section 245C.29. 
 72.4      <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 72.5   following final enactment. 
 72.6      Sec. 77.  Minnesota Statutes 2003 Supplement, section 
 72.7   626.556, subdivision 10i, is amended to read: 
 72.8      Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 72.9   DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 72.10  SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
 72.11  provided under paragraph (e), an individual or facility that the 
 72.12  commissioner of human services, a local social service agency, 
 72.13  or the commissioner of education determines has maltreated a 
 72.14  child, an interested person acting on behalf of the child, 
 72.15  regardless of the determination, who contests the investigating 
 72.16  agency's final determination regarding maltreatment, may request 
 72.17  the investigating agency to reconsider its final determination 
 72.18  regarding maltreatment.  The request for reconsideration must be 
 72.19  submitted in writing to the investigating agency within 15 
 72.20  calendar days after receipt of notice of the final determination 
 72.21  regarding maltreatment or, if the request is made by an 
 72.22  interested person who is not entitled to notice, within 15 days 
 72.23  after receipt of the notice by the parent or guardian of the 
 72.24  child.  Effective January 1, 2002, an individual who was 
 72.25  determined to have maltreated a child under this section and who 
 72.26  was disqualified on the basis of serious or recurring 
 72.27  maltreatment under sections 245C.14 and 245C.15, may request 
 72.28  reconsideration of the maltreatment determination and the 
 72.29  disqualification.  The request for reconsideration of the 
 72.30  maltreatment determination and the disqualification must be 
 72.31  submitted within 30 calendar days of the individual's receipt of 
 72.32  the notice of disqualification under sections 245C.16 and 
 72.33  245C.17. 
 72.34     (b) Except as provided under paragraphs (e) and (f), if the 
 72.35  investigating agency denies the request or fails to act upon the 
 72.36  request within 15 calendar days after receiving the request for 
 73.1   reconsideration, the person or facility entitled to a fair 
 73.2   hearing under section 256.045 may submit to the commissioner of 
 73.3   human services or the commissioner of education a written 
 73.4   request for a hearing under that section.  Section 256.045 also 
 73.5   governs hearings requested to contest a final determination of 
 73.6   the commissioner of education.  For reports involving 
 73.7   maltreatment of a child in a facility, an interested person 
 73.8   acting on behalf of the child may request a review by the Child 
 73.9   Maltreatment Review Panel under section 256.022 if the 
 73.10  investigating agency denies the request or fails to act upon the 
 73.11  request or if the interested person contests a reconsidered 
 73.12  determination.  The investigating agency shall notify persons 
 73.13  who request reconsideration of their rights under this 
 73.14  paragraph.  The request must be submitted in writing to the 
 73.15  review panel and a copy sent to the investigating agency within 
 73.16  30 calendar days of receipt of notice of a denial of a request 
 73.17  for reconsideration or of a reconsidered determination.  The 
 73.18  request must specifically identify the aspects of the agency 
 73.19  determination with which the person is dissatisfied. 
 73.20     (c) If, as a result of a reconsideration or review, the 
 73.21  investigating agency changes the final determination of 
 73.22  maltreatment, that agency shall notify the parties specified in 
 73.23  subdivisions 10b, 10d, and 10f. 
 73.24     (d) Except as provided under paragraph (f), if an 
 73.25  individual or facility contests the investigating agency's final 
 73.26  determination regarding maltreatment by requesting a fair 
 73.27  hearing under section 256.045, the commissioner of human 
 73.28  services shall assure that the hearing is conducted and a 
 73.29  decision is reached within 90 days of receipt of the request for 
 73.30  a hearing.  The time for action on the decision may be extended 
 73.31  for as many days as the hearing is postponed or the record is 
 73.32  held open for the benefit of either party. 
 73.33     (e) Effective January 1, 2002, if an individual was 
 73.34  disqualified under sections 245C.14 and 245C.15, on the basis of 
 73.35  a determination of maltreatment, which was serious or recurring, 
 73.36  and the individual has requested reconsideration of the 
 74.1   maltreatment determination under paragraph (a) and requested 
 74.2   reconsideration of the disqualification under sections 245C.21 
 74.3   to 245C.27, reconsideration of the maltreatment determination 
 74.4   and reconsideration of the disqualification shall be 
 74.5   consolidated into a single reconsideration.  If reconsideration 
 74.6   of the maltreatment determination is denied or the 
 74.7   disqualification is not set aside ~~or rescinded~~ under sections 
 74.8   245C.21 to 245C.27, the individual may request a fair hearing 
 74.9   under section 256.045.  If an individual requests a fair hearing 
 74.10  on the maltreatment determination and the disqualification, the 
 74.11  scope of the fair hearing shall include both the maltreatment 
 74.12  determination and the disqualification. 
 74.13     (f) Effective January 1, 2002, if a maltreatment 
 74.14  determination or a disqualification based on serious or 
 74.15  recurring maltreatment is the basis for a denial of a license 
 74.16  under section 245A.05 or a licensing sanction under section 
 74.17  245A.07, the license holder has the right to a contested case 
 74.18  hearing under chapter 14 and Minnesota Rules, parts ~~1400.8510~~ 
 74.19  1400.8505 to 1400.8612 ~~and successor rules~~.  As provided for 
 74.20  under section 245A.08, subdivision 2a, the scope of the 
 74.21  contested case hearing shall include the maltreatment 
 74.22  determination, disqualification, and licensing sanction or 
 74.23  denial of a license.  In such cases, a fair hearing regarding 
 74.24  the maltreatment determination shall not be conducted under 
 74.25  paragraph (b).  If the disqualified subject is an individual 
 74.26  other than the license holder and upon whom a background study 
 74.27  must be conducted under chapter 245C, the hearings of all 
 74.28  parties may be consolidated into a single contested case hearing 
 74.29  upon consent of all parties and the administrative law judge. 
 74.30     (g) For purposes of this subdivision, "interested person 
 74.31  acting on behalf of the child" means a parent or legal guardian; 
 74.32  stepparent; grandparent; guardian ad litem; adult stepbrother, 
 74.33  stepsister, or sibling; or adult aunt or uncle; unless the 
 74.34  person has been determined to be the perpetrator of the 
 74.35  maltreatment. 
 74.36     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 75.1   following final enactment. 
 75.2      Sec. 78.  Minnesota Statutes 2003 Supplement, section 
 75.3   626.557, subdivision 9d, is amended to read: 
 75.4      Subd. 9d.  [ADMINISTRATIVE RECONSIDERATION OF FINAL 
 75.5   DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 
 75.6   SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 
 75.7   provided under paragraph (e), any individual or facility which a 
 75.8   lead agency determines has maltreated a vulnerable adult, or the 
 75.9   vulnerable adult or an interested person acting on behalf of the 
 75.10  vulnerable adult, regardless of the lead agency's determination, 
 75.11  who contests the lead agency's final disposition of an 
 75.12  allegation of maltreatment, may request the lead agency to 
 75.13  reconsider its final disposition.  The request for 
 75.14  reconsideration must be submitted in writing to the lead agency 
 75.15  within 15 calendar days after receipt of notice of final 
 75.16  disposition or, if the request is made by an interested person 
 75.17  who is not entitled to notice, within 15 days after receipt of 
 75.18  the notice by the vulnerable adult or the vulnerable adult's 
 75.19  legal guardian.  An individual who was determined to have 
 75.20  maltreated a vulnerable adult under this section and who was 
 75.21  disqualified on the basis of serious or recurring maltreatment 
 75.22  under sections 245C.14 and 245C.15, may request reconsideration 
 75.23  of the maltreatment determination and the disqualification.  The 
 75.24  request for reconsideration of the maltreatment determination 
 75.25  and the disqualification must be submitted within 30 calendar 
 75.26  days of the individual's receipt of the notice of 
 75.27  disqualification under sections 245C.16 and 245C.17. 
 75.28     (b) Except as provided under paragraphs (e) and (f), if the 
 75.29  lead agency denies the request or fails to act upon the request 
 75.30  within 15 calendar days after receiving the request for 
 75.31  reconsideration, the person or facility entitled to a fair 
 75.32  hearing under section 256.045, may submit to the commissioner of 
 75.33  human services a written request for a hearing under that 
 75.34  statute.  The vulnerable adult, or an interested person acting 
 75.35  on behalf of the vulnerable adult, may request a review by the 
 75.36  Vulnerable Adult Maltreatment Review Panel under section 256.021 
 76.1   if the lead agency denies the request or fails to act upon the 
 76.2   request, or if the vulnerable adult or interested person 
 76.3   contests a reconsidered disposition.  The lead agency shall 
 76.4   notify persons who request reconsideration of their rights under 
 76.5   this paragraph.  The request must be submitted in writing to the 
 76.6   review panel and a copy sent to the lead agency within 30 
 76.7   calendar days of receipt of notice of a denial of a request for 
 76.8   reconsideration or of a reconsidered disposition.  The request 
 76.9   must specifically identify the aspects of the agency 
 76.10  determination with which the person is dissatisfied.  
 76.11     (c) If, as a result of a reconsideration or review, the 
 76.12  lead agency changes the final disposition, it shall notify the 
 76.13  parties specified in subdivision 9c, paragraph (d). 
 76.14     (d) For purposes of this subdivision, "interested person 
 76.15  acting on behalf of the vulnerable adult" means a person 
 76.16  designated in writing by the vulnerable adult to act on behalf 
 76.17  of the vulnerable adult, or a legal guardian or conservator or 
 76.18  other legal representative, a proxy or health care agent 
 76.19  appointed under chapter 145B or 145C, or an individual who is 
 76.20  related to the vulnerable adult, as defined in section 245A.02, 
 76.21  subdivision 13. 
 76.22     (e) If an individual was disqualified under sections 
 76.23  245C.14 and 245C.15, on the basis of a determination of 
 76.24  maltreatment, which was serious or recurring, and the individual 
 76.25  has requested reconsideration of the maltreatment determination 
 76.26  under paragraph (a) and reconsideration of the disqualification 
 76.27  under sections 245C.21 to 245C.27, reconsideration of the 
 76.28  maltreatment determination and requested reconsideration of the 
 76.29  disqualification shall be consolidated into a single 
 76.30  reconsideration.  If reconsideration of the maltreatment 
 76.31  determination is denied or if the disqualification is not set 
 76.32  aside ~~or rescinded~~ under sections 245C.21 to 245C.27, the 
 76.33  individual may request a fair hearing under section 256.045.  If 
 76.34  an individual requests a fair hearing on the maltreatment 
 76.35  determination and the disqualification, the scope of the fair 
 76.36  hearing shall include both the maltreatment determination and 
 77.1   the disqualification. 
 77.2      (f) If a maltreatment determination or a disqualification 
 77.3   based on serious or recurring maltreatment is the basis for a 
 77.4   denial of a license under section 245A.05 or a licensing 
 77.5   sanction under section 245A.07, the license holder has the right 
 77.6   to a contested case hearing under chapter 14 and Minnesota 
 77.7   Rules, parts ~~1400.8510~~ 1400.8505 to 1400.8612 ~~and successor~~ 
 77.8   ~~rules~~.  As provided for under section 245A.08, the scope of the 
 77.9   contested case hearing shall include the maltreatment 
 77.10  determination, disqualification, and licensing sanction or 
 77.11  denial of a license.  In such cases, a fair hearing shall not be 
 77.12  conducted under paragraph (b).  If the disqualified subject is 
 77.13  an individual other than the license holder and upon whom a 
 77.14  background study must be conducted under chapter 245C, the 
 77.15  hearings of all parties may be consolidated into a single 
 77.16  contested case hearing upon consent of all parties and the 
 77.17  administrative law judge. 
 77.18     (g) Until August 1, 2002, an individual or facility that 
 77.19  was determined by the commissioner of human services or the 
 77.20  commissioner of health to be responsible for neglect under 
 77.21  section 626.5572, subdivision 17, after October 1, 1995, and 
 77.22  before August 1, 2001, that believes that the finding of neglect 
 77.23  does not meet an amended definition of neglect may request a 
 77.24  reconsideration of the determination of neglect.  The 
 77.25  commissioner of human services or the commissioner of health 
 77.26  shall mail a notice to the last known address of individuals who 
 77.27  are eligible to seek this reconsideration.  The request for 
 77.28  reconsideration must state how the established findings no 
 77.29  longer meet the elements of the definition of neglect.  The 
 77.30  commissioner shall review the request for reconsideration and 
 77.31  make a determination within 15 calendar days.  The 
 77.32  commissioner's decision on this reconsideration is the final 
 77.33  agency action. 
 77.34     (1) For purposes of compliance with the data destruction 
 77.35  schedule under subdivision 12b, paragraph (d), when a finding of 
 77.36  substantiated maltreatment has been changed as a result of a 
 78.1   reconsideration under this paragraph, the date of the original 
 78.2   finding of a substantiated maltreatment must be used to 
 78.3   calculate the destruction date. 
 78.4      (2) For purposes of any background studies under chapter 
 78.5   245C, when a determination of substantiated maltreatment has 
 78.6   been changed as a result of a reconsideration under this 
 78.7   paragraph, any prior disqualification of the individual under 
 78.8   chapter 245C that was based on this determination of 
 78.9   maltreatment shall be rescinded, and for future background 
 78.10  studies under chapter 245C the commissioner must not use the 
 78.11  previous determination of substantiated maltreatment as a basis 
 78.12  for disqualification or as a basis for referring the 
 78.13  individual's maltreatment history to a health-related licensing 
 78.14  board under section 245C.31. 
 78.15     <h>[EFFECTIVE DATE.]</h> This section is effective the day 
 78.16  following final enactment. 
 78.17     Sec. 79.  [DIRECTION TO THE COMMISSIONER; REPORT.] 
 78.18     The commissioner of human services shall report on the 
 78.19  number of adult foster care licenses, family adult day services 
 78.20  licenses, combined adult foster care and family adult day 
 78.21  services, and adult day services center licenses and their 
 78.22  capacities with changes in the number of licenses and capacities 
 78.23  from August 1, 2004, to August 1, 2006.  The commissioner shall 
 78.24  provide this report to the chairs of the senate and the house 
 78.25  committees with jurisdiction over health and human services 
 78.26  policy by September 15, 2006. 
 78.27     Sec. 80.  [REVISOR'S INSTRUCTION.] 
 78.28     The revisor of statutes shall insert the phrase "or adult 
 78.29  day services" after the phrase "adult day care," and the phrase 
 78.30  "or adult day services center" after "adult day care center," 
 78.31  wherever it appears in Minnesota Rules, parts 9555.9600 to 
 78.32  9555.9730, or the headnotes to the rule parts. 
 78.33     Sec. 81.  [REPEALER.] 
 78.34     Minnesota Statutes 2003 Supplement, section 245C.02, 
 78.35  subdivision 17; and Minnesota Rules, parts 9525.1600; 9543.0040, 
 78.36  subpart 3; 9543.1000; 9543.1010; 9543.1020; 9543.1030; 
 79.1   9543.1040; and 9543.1050, are repealed. 
 79.2                              ARTICLE 2 
 79.3                             CORRECTIONS 
 79.4      Section 1.  Minnesota Statutes 2003 Supplement, section 
 79.5   241.021, subdivision 6, is amended to read: 
 79.6      Subd. 6.  [BACKGROUND STUDIES.] (a) The commissioner of 
 79.7   corrections is authorized to do background studies on personnel 
 79.8   employed by any facility serving children or youth that is 
 79.9   licensed under this section.  The commissioner of corrections 
 79.10  shall contract with the commissioner of human services to 
 79.11  conduct background studies of individuals providing services in 
 79.12  secure and nonsecure residential facilities and detention 
 79.13  facilities who have direct contact, as defined under section 
 79.14  245C.02, subdivision 11, with persons served in the facilities.  
 79.15  A disqualification of an individual in this section shall 
 79.16  disqualify the individual ~~from positions allowing direct contact~~ 
 79.17  ~~or access to persons and residents receiving services in~~ 
 79.18  ~~programs licensed by the Departments of Health and Human~~ 
 79.19  ~~Services~~ as provided in chapter 245C.  
 79.20     (b) A clerk or administrator of any court, the Bureau of 
 79.21  Criminal Apprehension, a prosecuting attorney, a county sheriff, 
 79.22  or a chief of a local police department, shall assist in these 
 79.23  studies by providing to the commissioner of human services, or 
 79.24  the commissioner's representative, all criminal conviction data 
 79.25  available from local, state, and national criminal history 
 79.26  record repositories, including the criminal justice data 
 79.27  communications network, pertaining to the following individuals: 
 79.28  applicants, operators, all persons living in the household, and 
 79.29  all staff of any facility subject to background studies under 
 79.30  this subdivision.  
 79.31     (c) The Department of Human Services shall conduct the 
 79.32  background studies required by paragraph (a) in compliance with 
 79.33  the provisions of chapter 245C.  For the purpose of this 
 79.34  subdivision, the term "secure and nonsecure residential facility 
 79.35  and detention facility" shall include programs licensed or 
 79.36  certified under subdivision 2.  The Department of Human Services 
 80.1   shall provide necessary forms and instructions, shall conduct 
 80.2   the necessary background studies of individuals, and shall 
 80.3   provide notification of the results of the studies to the 
 80.4   facilities, individuals, and the commissioner of corrections.  
 80.5   Individuals shall be disqualified under the provisions of 
 80.6   chapter 245C. 
 80.7      If an individual is disqualified, the Department of Human 
 80.8   Services shall notify the facility and the individual and shall 
 80.9   inform the individual of the right to request a reconsideration 
 80.10  of the disqualification by submitting the request to the 
 80.11  Department of Corrections. 
 80.12     (d) The commissioner of corrections shall review and decide 
 80.13  reconsideration requests, including the granting of variances, 
 80.14  in accordance with the procedures and criteria contained in 
 80.15  chapter 245C.  The commissioner's decision shall be provided to 
 80.16  the individual and to the Department of Human Services.  The 
 80.17  commissioner's decision to grant or deny a reconsideration of 
 80.18  disqualification is the final administrative agency action. 
 80.19     (e) Facilities described in paragraph (a) shall be 
 80.20  responsible for cooperating with the departments in implementing 
 80.21  the provisions of this subdivision.  The responsibilities 
 80.22  imposed on applicants and licensees under chapters 245A and 245C 
 80.23  shall apply to these facilities.  ~~The provisions of sections~~ 
 80.24  ~~245C.03, subdivision 3, 245C.04, subdivision 4, paragraph (b),~~ 
 80.25  ~~and 245C.10, subdivision 2, shall apply to applicants,~~ 
 80.26  ~~licensees, and individuals.~~