1.1 	A bill for an act
1.2 	relating to human services; modifying child care provisions; reducing license 
1.3 	fees; appropriating money; amending Minnesota Statutes 2006, sections 
1.4 	245A.10, subdivision 2; 245A.16, subdivisions 1, 3; 245C.04, subdivision 1; 
1.5 	245C.05, subdivisions 4, 7, by adding a subdivision; 245C.08, subdivision 2; 
1.6 	245C.17, by adding a subdivision; 245C.21, by adding a subdivision; 245C.23, 
1.7 	subdivision 2.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2006, section 245A.10, subdivision 2, is amended to 
1.10 	read:
1.11 		Subd. 2.County fees for background studies and licensing inspections. (a) For 
1.12 	purposes of family and group family child care licensing under this chapter, a county 
1.13 	agency may charge a fee to an applicant or license holder to recover the actual cost of 
1.14 	background studies, but in any case not to exceed $100 annually. A county agency may 
1.15 	also charge alicense fee to an applicant or license holder to recover the actual cost of 
1.16 	licensing inspections, but in any case not to exceed $150 annually$50 for a one-year 
1.17 	license or $100 for a two-year license.
1.18 	(b) A county agency may charge a fee to a legal nonlicensed child care provider or 
1.19 	applicant for authorization to recover the actual cost of background studies completed 
1.20 	under section  119B.125, but in any case not to exceed $100 annually. 
1.21 	(c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):
1.22 	(1) in cases of financial hardship;
1.23 	(2)  if the county has a shortage of providers in the county's area;
1.24 	(3) for new providers; or
2.1 	(4) for providers who have attained at least 16 hours of training before seeking 
2.2 	initial licensure.
2.3 	(d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on 
2.4 	an installment basis for up to one year. If the provider is receiving child care assistance 
2.5 	payments from the state, the provider may have the fees under paragraph (a) or (b) 
2.6 	deducted from the child care assistance payments for up to one year and the state shall 
2.7 	reimburse the county for the county fees collected in this manner.

2.8 	Sec. 2. Minnesota Statutes 2006, section 245A.16, subdivision 1, is amended to read:
2.9 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and 
2.10 	private agencies that have been designated or licensed by the commissioner to perform 
2.11 	licensing functions and activities under section 245A.04and, background studies for 
2.12 	adult foster care, family adult day services, and child foster care under chapter 245C, to 
2.13 	recommend denial of applicants under section 245A.05, to issue correction orders, to issue 
2.14 	variances, and recommend a conditional license under section 245A.06, or to recommend 
2.15 	suspending or revoking a license or issuing a fine under section 245A.07, shall comply 
2.16 	with rules and directives of the commissioner governing those functions and with this 
2.17 	section. The following variances are excluded from the delegation of variance authority 
2.18 	and may be issued only by the commissioner:
2.19 	(1) dual licensure of family child care and child foster care, dual licensure of child 
2.20 	and adult foster care, and adult foster care and family child care;
2.21 	(2) adult foster care maximum capacity;
2.22 	(3) adult foster care minimum age requirement;
2.23 	(4) child foster care maximum age requirement;
2.24 	(5) variances regarding disqualified individuals except that county agencies may 
2.25 	issue variances under section 245C.30 regarding disqualified individuals when the county 
2.26 	is responsible for conducting a consolidated reconsideration according to sections 245C.25
2.27 	and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination 
2.28 	and a disqualification based on serious or recurring maltreatment; and
2.29 	(6) the required presence of a caregiver in the adult foster care residence during 
2.30 	normal sleeping hours.
2.31 	(b) County agencies must report:
2.32 	(1) information about disqualification reconsiderations under sections 245C.25
2.33 	and 245C.27, subdivision 2, clauses (a) and (b), and variances granted under paragraph 
2.34 	(a), clause (5), to the commissioner at least monthly in a format prescribed by the 
2.35 	commissioner; and
3.1 	(2) for relative child foster care applicants and license holders, the number of 
3.2 	relatives, as defined in section 260C.007, subdivision 27, and household members of 
3.3 	relatives who are disqualified under section 245C.14; the disqualifying characteristics 
3.4 	under section 245C.15; the number of these individuals who requested reconsideration 
3.5 	under section 245C.21; the number of set-asides under section 245C.22; and variances 
3.6 	under section 245C.30 issued. This information shall be reported to the commissioner 
3.7 	annually by January 15 of each year in a format prescribed by the commissioner.
3.8 	(c) For family day care programs, the commissioner may authorize licensing reviews 
3.9 	every two years after a licensee has had at least one annual review.
3.10 	(d) For family adult day services programs, the commissioner may authorize 
3.11 	licensing reviews every two years after a licensee has had at least one annual review.
3.12 	(e) A license issued under this section may be issued for up to two years.

3.13 	Sec. 3. Minnesota Statutes 2006, section 245A.16, subdivision 3, is amended to read:
3.14 		Subd. 3.Recommendations to the commissioner. The county or private agency 
3.15 	shall not make recommendations to the commissioner regarding licensure without first 
3.16 	conducting an inspection, and for adult foster care, family adult day services, and child 
3.17 	foster care, a background study of the applicant, and evaluation pursuant to chapter 245C. 
3.18 	The county or private agency must forward its recommendation to the commissioner 
3.19 	regarding the appropriate licensing action within 20 working days of receipt of a 
3.20 	completed application.

3.21 	Sec. 4. Minnesota Statutes 2006, section 245C.04, subdivision 1, is amended to read:
3.22 		Subdivision 1.Licensed programs. (a) The commissioner shall conduct a 
3.23 	background study of an individual required to be studied under section 245C.03, 
3.24 	subdivision 1, at least upon application for initial license for all license types. 
3.25 	(b) The commissioner shall conduct a background study of an individual required 
3.26 	to be studied under section 245C.03, subdivision 1, at reapplication for a license for 
3.27 	family child care, child foster care, and adult foster care. 
3.28 	(c) The commissioner is not required to conduct a study of an individual at the time 
3.29 	of reapplication for a license if the individual's background study was completed by the 
3.30 	commissioner of human services for an adult foster care license holder that is also:
3.31 	(1) registered under chapter 144D; or
3.32 	(2) licensed to provide home and community-based services to people with 
3.33 	disabilities at the foster care location and the license holder does not reside in the foster 
3.34 	care residence; and
4.1 	(3) the following conditions are met:
4.2 	(i) a study of the individual was conducted either at the time of initial licensure or 
4.3 	when the individual became affiliated with the license holder;
4.4 	(ii) the individual has been continuously affiliated with the license holder since 
4.5 	the last study was conducted; and
4.6 	(iii) the last study of the individual was conducted on or after October 1, 1995.
4.7 	(d) From January 1, 2008, to December 31, 2009, the commissioner shall conduct 
4.8 	a study of an individual required to be studied under section 245C.03, at the time of 
4.9 	reapplication for a family child care license. The county shall collect and forward to the 
4.10 	commissioner the information required under section 245C.05, subdivision 1, paragraphs 
4.11 	(a) and (b); and subdivision 5, paragraphs (a) and (b). The background study conducted by 
4.12 	the commissioner under this paragraph must include a review of the information required 
4.13 	under section 245C.08, subdivision 1, paragraph (a), clauses (1) to (4) and subdivision 3.
4.14 	(e) The commissioner shall conduct a background study of an individual specified 
4.15 	under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly 
4.16 	affiliated with a family child care license holder. The county shall collect and forward to 
4.17 	the commissioner the information required under section 245C.05, subdivisions 1 and 5. 
4.18 	The background study conducted by the commissioner under this paragraph must include 
4.19 	a review of the information required under section 245C.08, subdivision 1, paragraph (a) 
4.20 	and subdivision 3.
4.21 	(f) Applicants for licensure, license holders, and other entities as provided in this 
4.22 	chapter must submit completed background study forms to the commissioner before 
4.23 	individuals specified in section 245C.03, subdivision 1, begin positions allowing direct 
4.24 	contact in any licensed program. 
4.25 	(e)(g) For purposes of this section, a physician licensed under chapter 147 is 
4.26 	considered to be continuously affiliated upon the license holder's receipt from the 
4.27 	commissioner of health or human services of the physician's background study results.

4.28 	Sec. 5. Minnesota Statutes 2006, section 245C.05, is amended by adding a subdivision 
4.29 	to read:
4.30 		Subd. 2a.County agency. For background studies related to family child care, 
4.31 	county agencies must collect the information under subdivision 1 and forward it to the 
4.32 	commissioner.

4.33 	Sec. 6. Minnesota Statutes 2006, section 245C.05, subdivision 4, is amended to read:
5.1 		Subd. 4.Electronic transmission. For background studies conducted by the 
5.2 	Department of Human Services, the commissioner shall implement a system for the 
5.3 	electronic transmission of:
5.4 	(1) background study information to the commissioner; and
5.5 	(2) background study results to the license holder; and
5.6 	(3) background study results to county agencies for background studies conducted 
5.7 	by the commissioner for family child care.

5.8 	Sec. 7. Minnesota Statutes 2006, section 245C.05, subdivision 7, is amended to read:
5.9 		Subd. 7.Probation officer and corrections agent. (a) A probation officer or 
5.10 	corrections agent shall notify the commissioner of an individual's conviction if the 
5.11 	individual is:
5.12 	(1) affiliated with a program or facility regulated by the Department of Human 
5.13 	Services or Department of Health, a facility serving children or youth licensed by the 
5.14 	Department of Corrections, or any type of home care agency or provider of personal care 
5.15 	assistance services; and
5.16 	(2) convicted of a crime constituting a disqualification under section 245C.14. 
5.17 	(b) For the purpose of this subdivision, "conviction" has the meaning given it 
5.18 	in section 609.02, subdivision 5. 
5.19 	(c) The commissioner, in consultation with the commissioner of corrections, shall 
5.20 	develop forms and information necessary to implement this subdivision and shall provide 
5.21 	the forms and information to the commissioner of corrections for distribution to local 
5.22 	probation officers and corrections agents.
5.23 	(d) The commissioner shall inform individuals subject to a background study that 
5.24 	criminal convictions for disqualifying crimes will be reported to the commissioner by the 
5.25 	corrections system.
5.26 	(e) A probation officer, corrections agent, or corrections agency is not civilly or 
5.27 	criminally liable for disclosing or failing to disclose the information required by this 
5.28 	subdivision.
5.29 	(f) Upon receipt of disqualifying information, the commissioner shall provide the 
5.30 	notice required under section 245C.17, as appropriate, to agencies on record as having 
5.31 	initiated a background study or making a request for documentation of the background 
5.32 	study status of the individual. 
5.33 	(g) This subdivision does not apply to family child care and child foster care 
5.34 	programs.

6.1 	Sec. 8. Minnesota Statutes 2006, section 245C.08, subdivision 2, is amended to read:
6.2 		Subd. 2.Background studies conducted by a county or private agency. (a) For a 
6.3 	background study conducted by a county or private agency for child foster care,and adult 
6.4 	foster care, and family child care homes, the commissioner shall review:
6.5 	(1) information from the county agency's record of substantiated maltreatment 
6.6 	of adults and the maltreatment of minors;
6.7 	(2) information from juvenile courts as required in subdivision 4 for individuals 
6.8 	listed in section 245C.03, subdivision 1, clauses (2), (5), and (6);
6.9 	(3) information from the Bureau of Criminal Apprehension; and
6.10 	(4) arrest and investigative records maintained by the Bureau of Criminal 
6.11 	Apprehension, county attorneys, county sheriffs, courts, county agencies, local police, the 
6.12 	National Criminal Records Repository, and criminal records from other states.
6.13 	(b) If the individual has resided in the county for less than five years, the study shall 
6.14 	include the records specified under paragraph (a) for the previous county or counties of 
6.15 	residence for the past five years.
6.16 	(c) Notwithstanding expungement by a court, the county or private agency may 
6.17 	consider information obtained under paragraph (a), clauses (3) and (4), unless the 
6.18 	commissioner received notice of the petition for expungement and the court order for 
6.19 	expungement is directed specifically to the commissioner.

6.20 	Sec. 9. Minnesota Statutes 2006, section 245C.17, is amended by adding a subdivision 
6.21 	to read:
6.22 		Subd. 5.Notice to county agency. For studies on individuals related to a license to 
6.23 	provide family child care, the commissioner shall also provide a notice of the background 
6.24 	study results to the county that initiated the background study.

6.25 	Sec. 10. Minnesota Statutes 2006, section 245C.21, is amended by adding a 
6.26 	subdivision to read:
6.27 		Subd. 1a.Submission of reconsideration request to county agency. (a) For 
6.28 	disqualifications related to studies conducted by county agencies, and for disqualifications 
6.29 	related to studies conducted by the commissioner for family child care, the individual shall 
6.30 	submit the request for reconsideration to the county that initiated the background study.
6.31 	(b) A reconsideration request shall be submitted within the time frames specified in 
6.32 	subdivision 2.
7.1 	(c) The county agency shall forward the individual's request for reconsideration and 
7.2 	provide the commissioner with a recommendation whether to set aside the individual's 
7.3 	disqualification.

7.4 	Sec. 11. Minnesota Statutes 2006, section 245C.23, subdivision 2, is amended to read:
7.5 		Subd. 2.Commissioner's notice of disqualification that is not set aside. (a) The 
7.6 	commissioner shall notify the license holder of the disqualification and order the license 
7.7 	holder to immediately remove the individual from any position allowing direct contact 
7.8 	with persons receiving services from the license holder if:
7.9 	(1) the individual studied does not submit a timely request for reconsideration 
7.10 	under section 245C.21; 
7.11 	(2) the individual submits a timely request for reconsideration, but the commissioner 
7.12 	does not set aside the disqualification for that license holder under section 245C.22; 
7.13 	(3) an individual who has a right to request a hearing under sections 245C.27 and 
7.14 	256.045, or 245C.28 and chapter 14 for a disqualification that has not been set aside, does 
7.15 	not request a hearing within the specified time; or 
7.16 	(4) an individual submitted a timely request for a hearing under sections 245C.27
7.17 	and 256.045, or 245C.28 and chapter 14, but the commissioner does not set aside the 
7.18 	disqualification under section 245A.08, subdivision 5, or 256.045. 
7.19 	(b) If the commissioner does not set aside the disqualification under section 245C.22, 
7.20 	and the license holder was previously ordered under section 245C.17 to immediately 
7.21 	remove the disqualified individual from direct contact with persons receiving services or 
7.22 	to ensure that the individual is under continuous, direct supervision when providing direct 
7.23 	contact services, the order remains in effect pending the outcome of a hearing under 
7.24 	sections 245C.27 and 256.045, or 245C.28 and chapter 14. 
7.25 	(c) For background studies related to family child care, the commissioner shall also 
7.26 	notify the county that initiated the study of the results of the reconsideration.

7.27 	Sec. 12. APPROPRIATION.
 7.28 	$....... is appropriated from the general fund to the commissioner of human services 
7.29 	for the biennium beginning July 1, 2007, for purposes of completing background studies 
7.30 	for family and group family child care providers under Minnesota Statutes, chapter 245C. 
7.31 	This appropriation shall become part of the base appropriation.

7.32 	Sec. 13. EFFECTIVE DATE.
 8.1 	Section 1 is effective the day following final enactment. Sections 2 to 13 are 
8.2 	effective January 1, 2008.