1.1A bill for an act1.2relating to human services; modifying provisions related to licensing data, human 1.3services licensing, child care programs, financial fraud and abuse investigations, 1.4and vendors of chemical dependency treatment services; modifying background 1.5studies;amending Minnesota Statutes 2012, sections 13.46, subdivisions 3, 4; 1.6119B.125, subdivision 1b; 168.012, subdivision 1; 245A.02, subdivision 5a; 1.7245A.04, subdivisions 1, 5, 11; 245A.06, subdivision 1; 245A.07, subdivision 1.82, by adding a subdivision; 245A.08, subdivision 5a; 245A.146, subdivisions 1.93, 4; 245A.65, subdivision 1; 245A.66, subdivision 1; 245C.04, as amended; 1.10245C.05, subdivision 6; 245C.16, subdivision 1; 245C.20, subdivision 1; 1.11245C.22, subdivision 1; 245C.23, subdivision 2; 245C.28, subdivisions 1, 3; 1.12245C.29, subdivision 2; 254B.05, subdivision 5; 256.01, subdivision 18d; 1.13471.346; Minnesota Statutes 2013 Supplement, sections 245A.07, subdivisions 1.142a, 3; 245A.08, subdivision 2a; 245A.50, subdivision 4; 245C.08, subdivision 1.151; 256.045, subdivision 3b; 268.19, subdivision 1.1.16BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.17ARTICLE 11.18DATA PRACTICES1.19    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 3, is amended to read:1.20    Subd. 3. Investigative data. (a) Data on persons, including data on vendors of 1.21services, licensees, and applicants that is collected, maintained, used, or disseminated 1.22by the welfare system in an investigation, authorized by statute, and relating to the 1.23enforcement of rules or law are confidential data on individuals pursuant to section 
         13.02, 1.24subdivision 3
         , or protected nonpublic data not on individuals pursuant to section 
         13.02, 1.25subdivision 13
         , and shall not be disclosed except:1.26(1) pursuant to section 
         13.05;1.27(2) pursuant to statute or valid court order;2.1(3) to a party named in a civil or criminal proceeding, administrative or judicial, for 2.2preparation of defense; or2.3(4) to provide notices required or permitted by statute.2.4The data referred to in this subdivision shall be classified as public data upon 2.5submission to an administrative law judge or court in an administrative or judicial 2.6proceeding. Inactive welfare investigative data shall be treated as provided in section 2.713.39, subdivision 3
         .2.8(b) Notwithstanding any other provision in law, the commissioner of human services 2.9shall provide all active and inactive investigative data, including the name of the reporter 2.10of alleged maltreatment under section 
         626.556 or 
         626.557, to the ombudsman for mental 2.11health and developmental disabilities upon the request of the ombudsman.2.12    (c) Notwithstanding paragraph (a) and section 
         13.39, the existence of an 2.13investigation by the commissioner of possible overpayments of public funds to a service 2.14provider is public data during an investigation or recipient may be disclosed if the 2.15commissioner determines that it will not compromise the investigation.2.16    Sec. 2. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:2.17    Subd. 4. Licensing data. (a) As used in this subdivision:2.18    (1) "licensing data" are all data collected, maintained, used, or disseminated by the 2.19welfare system pertaining to persons licensed or registered or who apply for licensure 2.20or registration or who formerly were licensed or registered under the authority of the 2.21commissioner of human services;2.22    (2) "client" means a person who is receiving services from a licensee or from an 2.23applicant for licensure; and2.24    (3) "personal and personal financial data" are Social Security numbers, identity 2.25of and letters of reference, insurance information, reports from the Bureau of Criminal 2.26Apprehension, health examination reports, and social/home studies.2.27    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants, 2.28license holders, and former licensees are public: name, address, telephone number of 2.29licensees, date of receipt of a completed application, dates of licensure, licensed capacity, 2.30type of client preferred, variances granted, record of training and education in child care 2.31and child development, type of dwelling, name and relationship of other family members, 2.32previous license history, class of license, the existence and status of complaints, and the 2.33number of serious injuries to or deaths of individuals in the licensed program as reported 2.34to the commissioner of human services, the local social services agency, or any other 3.1county welfare agency. For purposes of this clause, a serious injury is one that is treated 3.2by a physician.3.3(ii) When a correction order, an order to forfeit a fine, an order of license suspension, 3.4an order of temporary immediate suspension, an order of license revocation, an order of 3.5license denial, or an order of conditional license has been issued, or a complaint is resolved, 3.6the following data on current and former licensees and applicants are public: the general 3.7nature of the complaint or allegations leading to the temporary immediate suspension; the 3.8substance and investigative findings of the licensing or maltreatment complaint, licensing 3.9violation, or substantiated maltreatment; the existence of settlement negotiations; the 3.10record of informal resolution of a licensing violation; orders of hearing; findings of fact; 3.11conclusions of law; specifications of the final correction order, fine, suspension, temporary 3.12immediate suspension, revocation, denial, or conditional license contained in the record of 3.13licensing action; whether a fine has been paid; and the status of any appeal of these actions.3.14(iii) When a license denial under section 
         245A.05 or a sanction under section 3.15245A.07
          is based on a determination that the a license holder or, applicant, or controlling 3.16individual is responsible for maltreatment under section 
         626.556 or 
         626.557, the identity 3.17of the applicant or, license holder, or controlling individual as the individual responsible 3.18for maltreatment is public data at the time of the issuance of the license denial or sanction.3.19(iv) When a license denial under section 
         245A.05 or a sanction under section 3.20245A.07
          is based on a determination that the a license holder or, applicant, or controlling 3.21individual is disqualified under chapter 245C, the identity of the license holder or,3.22 applicant, or controlling individual as the disqualified individual and the reason for 3.23the disqualification are public data at the time of the issuance of the licensing sanction 3.24or denial. If the applicant or, license holder, or controlling individual requests 3.25reconsideration of the disqualification and the disqualification is affirmed, the reason for 3.26the disqualification and the reason to not set aside the disqualification are public data.3.27    (2) Notwithstanding sections 
         626.556, subdivision 11, and 
         626.557, subdivision 12b, 3.28when any person subject to disqualification under section 
         245C.14 in connection with a 3.29license to provide family day care for children, child care center services, foster care for 3.30children in the provider's home, or foster care or day care services for adults in the provider's 3.31home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is 3.32a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment 3.33is public data. For purposes of this clause, a person is a substantiated perpetrator if the 3.34maltreatment determination has been upheld under section 
         256.045; 
         626.556, subdivision 3.3510i
         ; 
         626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely 3.36exercised appeal rights under these sections, except as provided under clause (1).4.1    (3) For applicants who withdraw their application prior to licensure or denial of a 4.2license, the following data are public: the name of the applicant, the city and county in 4.3which the applicant was seeking licensure, the dates of the commissioner's receipt of the 4.4initial application and completed application, the type of license sought, and the date 4.5of withdrawal of the application.4.6    (4) For applicants who are denied a license, the following data are public: the 4.7name and address of the applicant, the city and county in which the applicant was 4.8seeking licensure, the dates of the commissioner's receipt of the initial application and 4.9completed application, the type of license sought, the date of denial of the application, the 4.10nature of the basis for the denial, the existence of settlement negotiations, the record of 4.11informal resolution of a denial, orders of hearings, findings of fact, conclusions of law, 4.12specifications of the final order of denial, and the status of any appeal of the denial.4.13    (5) The following data on persons subject to disqualification under section 
         245C.14 in 4.14connection with a license to provide family day care for children, child care center services, 4.15foster care for children in the provider's home, or foster care or day care services for adults 4.16in the provider's home, are public: the nature of any disqualification set aside under section 4.17245C.22
         , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the 4.18nature of any disqualification for which a variance was granted under sections 
         245A.04, 4.19subdivision 9
         ; and 
         245C.30, and the reasons for granting any variance under section 4.20245A.04, subdivision 9
         ; and, if applicable, the disclosure that any person subject to 4.21a background study under section 
         245C.03, subdivision 1, has successfully passed a 4.22background study. If a licensing sanction under section 
         245A.07, or a license denial under 4.23section 
         245A.05, is based on a determination that an individual subject to disqualification 4.24under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction 4.25or denial is public data. As specified in clause (1), item (iv), if the disqualified individual 4.26is the license holder or, applicant, or controlling individual, the identity of the license 4.27holder or, applicant, or controlling individual and the reason for the disqualification are 4.28public data; and, if the license holder or, applicant, or controlling individual requested 4.29reconsideration of the disqualification and the disqualification is affirmed, the reason for 4.30the disqualification and the reason to not set aside the disqualification are public data. If 4.31the disqualified individual is an individual other than the license holder or, applicant, or 4.32controlling individual, the identity of the disqualified individual shall remain private data.4.33    (6) When maltreatment is substantiated under section 
         626.556 or 
         626.557 and the 4.34victim and the substantiated perpetrator are affiliated with a program licensed under 4.35chapter 245A, the commissioner of human services, local social services agency, or 5.1county welfare agency may inform the license holder where the maltreatment occurred of 5.2the identity of the substantiated perpetrator and the victim.5.3    (7) Notwithstanding clause (1), for child foster care, only the name of the license 5.4holder and the status of the license are public if the county attorney has requested that data 5.5otherwise classified as public data under clause (1) be considered private data based on the 5.6best interests of a child in placement in a licensed program.5.7    (c) The following are private data on individuals under section 
         13.02, subdivision 5.812
         , or nonpublic data under section 
         13.02, subdivision 9: personal and personal financial 5.9data on family day care program and family foster care program applicants and licensees 5.10and their family members who provide services under the license.5.11    (d) The following are private data on individuals: the identity of persons who have 5.12made reports concerning licensees or applicants that appear in inactive investigative data, 5.13and the records of clients or employees of the licensee or applicant for licensure whose 5.14records are received by the licensing agency for purposes of review or in anticipation of a 5.15contested matter. The names of reporters of complaints or alleged violations of licensing 5.16standards under chapters 245A, 245B, 245C, and applicable rules and alleged maltreatment 5.17under sections 
         626.556 and 
         626.557, are confidential data and may be disclosed only as 5.18provided in section 
         626.556, subdivision 11, or 
         626.557, subdivision 12b.5.19    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under 5.20this subdivision become public data if submitted to a court or administrative law judge as 5.21part of a disciplinary proceeding in which there is a public hearing concerning a license 5.22which has been suspended, immediately suspended, revoked, or denied.5.23    (f) Data generated in the course of licensing investigations that relate to an alleged 5.24violation of law are investigative data under subdivision 3.5.25    (g) Data that are not public data collected, maintained, used, or disseminated under 5.26this subdivision that relate to or are derived from a report as defined in section 
         626.556, 5.27subdivision 2
         , or 
         626.5572, subdivision 18, are subject to the destruction provisions of 5.28sections 
         626.556, subdivision 11c, and 
         626.557, subdivision 12b.5.29    (h) Upon request, not public data collected, maintained, used, or disseminated under 5.30this subdivision that relate to or are derived from a report of substantiated maltreatment as 5.31defined in section 
         626.556 or 
         626.557 may be exchanged with the Department of Health 5.32for purposes of completing background studies pursuant to section 
         144.057 and with 5.33the Department of Corrections for purposes of completing background studies pursuant 5.34to section 
         241.021.5.35    (i) Data on individuals collected according to licensing activities under chapters 5.36245A and 245C, data on individuals collected by the commissioner of human services 6.1according to investigations under chapters 245A, 245B, and 245C, and sections 
         626.5566.2and 
         626.557 may be shared with the Department of Human Rights, the Department 6.3of Health, the Department of Corrections, the ombudsman for mental health and 6.4developmental disabilities, and the individual's professional regulatory board when there 6.5is reason to believe that laws or standards under the jurisdiction of those agencies may 6.6have been violated or the information may otherwise be relevant to the board's regulatory 6.7jurisdiction. Background study data on an individual who is the subject of a background 6.8study under chapter 245C for a licensed service for which the commissioner of human 6.9services is the license holder may be shared with the commissioner and the commissioner's 6.10delegate by the licensing division. Unless otherwise specified in this chapter, the identity 6.11of a reporter of alleged maltreatment or licensing violations may not be disclosed.6.12    (j) In addition to the notice of determinations required under section 
         626.556, 6.13subdivision 10f
         , if the commissioner or the local social services agency has determined 6.14that an individual is a substantiated perpetrator of maltreatment of a child based on sexual 6.15abuse, as defined in section 
         626.556, subdivision 2, and the commissioner or local social 6.16services agency knows that the individual is a person responsible for a child's care in 6.17another facility, the commissioner or local social services agency shall notify the head 6.18of that facility of this determination. The notification must include an explanation of the 6.19individual's available appeal rights and the status of any appeal. If a notice is given under 6.20this paragraph, the government entity making the notification shall provide a copy of the 6.21notice to the individual who is the subject of the notice.6.22    (k) All not public data collected, maintained, used, or disseminated under this 6.23subdivision and subdivision 3 may be exchanged between the Department of Human 6.24Services, Licensing Division, and the Department of Corrections for purposes of 6.25regulating services for which the Department of Human Services and the Department 6.26of Corrections have regulatory authority.6.27ARTICLE 26.28LICENSING6.29    Section 1. Minnesota Statutes 2012, section 119B.125, subdivision 1b, is amended to 6.30read:6.31    Subd. 1b. Training required. (a) Effective November 1, 2011, prior to initial 6.32authorization as required in subdivision 1, a legal nonlicensed family child care provider 6.33must complete first aid and CPR training and provide the verification of first aid and CPR 6.34training to the county. The training documentation must have valid effective dates as of 6.35the date the registration request is submitted to the county and. The training must have 7.1been provided by an individual approved to provide first aid and CPR instruction and have 7.2included CPR techniques for infants and children.7.3(b) Legal nonlicensed family child care providers with an authorization effective 7.4before November 1, 2011, must be notified of the requirements before October 1, 2011, or 7.5at authorization, and must meet the requirements upon renewal of an authorization that 7.6occurs on or after January 1, 2012.7.7(c) Upon each reauthorization after the authorization period when the initial first aid 7.8and CPR training requirements are met, a legal nonlicensed family child care provider 7.9must provide verification of at least eight hours of additional training listed in the 7.10Minnesota Center for Professional Development Registry.7.11(d) This subdivision only applies to legal nonlicensed family child care providers.7.12    Sec. 2. Minnesota Statutes 2012, section 245A.02, subdivision 5a, is amended to read:7.13    Subd. 5a. Controlling individual.  "Controlling individual" means a public body, 7.14governmental agency, business entity, officer, owner, or managerial official whose 7.15responsibilities include the direction of the management or policies of a program. For 7.16purposes of this subdivision, owner means an individual who has direct or indirect 7.17ownership interest in a corporation, partnership, or other business association issued a 7.18license under this chapter. For purposes of this subdivision, managerial official means 7.19those individuals who have the decision-making authority related to the operation of 7.20the program, and the responsibility for the ongoing management of or direction of the 7.21policies, services, or employees of the program. A site director who has no ownership 7.22interest in the program is not considered to be a managerial official for purposes of this 7.23definition. Controlling individual does not include:7.24    (1) a bank, savings bank, trust company, savings association, credit union, industrial 7.25loan and thrift company, investment banking firm, or insurance company unless the entity 7.26operates a program directly or through a subsidiary;7.27    (2) an individual who is a state or federal official, or state or federal employee, or a 7.28member or employee of the governing body of a political subdivision of the state or 7.29federal government that operates one or more programs, unless the individual is also an 7.30officer, owner, or managerial official of the program, receives remuneration from the 7.31program, or owns any of the beneficial interests not excluded in this subdivision;7.32    (3) an individual who owns less than five percent of the outstanding common 7.33shares of a corporation:7.34    (i) whose securities are exempt under section 80A.45, clause (6); or7.35    (ii) whose transactions are exempt under section 80A.46, clause (2); or8.1    (4) an individual who is a member of an organization exempt from taxation under 8.2section 290.05, unless the individual is also an officer, owner, or managerial official of 8.3the program or owns any of the beneficial interests not excluded in this subdivision. This 8.4clause does not exclude from the definition of controlling individual an organization that 8.5is exempt from taxation.8.6    Sec. 3. Minnesota Statutes 2012, section 245A.04, subdivision 1, is amended to read:8.7    Subdivision 1. Application for licensure. (a) An individual, corporation, 8.8partnership, voluntary association, other organization or controlling individual that is 8.9subject to licensure under section 
         245A.03 must apply for a license. The application 8.10must be made on the forms and in the manner prescribed by the commissioner. The 8.11commissioner shall provide the applicant with instruction in completing the application 8.12and provide information about the rules and requirements of other state agencies that affect 8.13the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 8.14Minnesota must have a program office located within the state.8.15The commissioner shall act on the application within 90 working days after a 8.16complete application and any required reports have been received from other state 8.17agencies or departments, counties, municipalities, or other political subdivisions. The 8.18commissioner shall not consider an application to be complete until the commissioner 8.19receives all of the information required under section 
         245C.05.8.20When the commissioner receives an application for initial licensure that is incomplete 8.21because the applicant failed to submit required documents or that is substantially 8.22deficient because the documents submitted do not meet licensing requirements, the 8.23commissioner shall provide the applicant written notice that the application is incomplete 8.24or substantially deficient. In the written notice to the applicant the commissioner shall 8.25identify documents that are missing or deficient and give the applicant 45 days to resubmit 8.26a second application that is substantially complete. An applicant's failure to submit a 8.27substantially complete application after receiving notice from the commissioner is a basis 8.28for license denial under section 
         245A.05.8.29(b) An application for licensure must identify all controlling individuals and must 8.30specify an agent who is responsible for dealing with the commissioner of human services 8.31on all matters provided for in this chapter and on whom service of all notices and orders 8.32must be made. The agent must be authorized to accept service on behalf of all of the 8.33controlling individuals of the program. Service on the agent is service on all of the 8.34controlling individuals of the program. It is not a defense to any action arising under this 8.35chapter that service was not made on each controlling individual of the program. The 9.1designation of one or more controlling individuals as agents under this paragraph does not 9.2affect the legal responsibility of any other controlling individual under this chapter.9.3(c) An applicant or license holder must have a policy that prohibits license holders, 9.4employees, subcontractors, and volunteers, when directly responsible for persons served 9.5by the program, from abusing prescription medication or being in any manner under 9.6the influence of a chemical that impairs the individual's ability to provide services or 9.7care. The license holder must train employees, subcontractors, and volunteers about the 9.8program's drug and alcohol policy.9.9(d) An applicant and license holder must have a program grievance procedure that 9.10permits persons served by the program and their authorized representatives to bring a 9.11grievance to the highest level of authority in the program.9.12(e) The applicant must be able to demonstrate competent knowledge of the 9.13applicable requirements of this chapter and chapter 245C, and the requirements of 9.14other licensing statutes and rules applicable to the program or services for which the 9.15applicant is seeking to be licensed. Effective January 1, 2013, the commissioner may 9.16require the applicant, except for child foster care, to demonstrate competence in the 9.17applicable licensing requirements by successfully completing a written examination. The 9.18commissioner may develop a prescribed written examination format.9.19(f) When an applicant is an individual, the individual must provide:9.20(1) the applicant's taxpayer identification numbers including the Social Security 9.21number, and federal employer identification number, if the applicant has employees;9.22(2) the complete business name, if any, and if doing business under a different name, 9.23the doing business as (DBA) name, as registered with the secretary of state; and9.24(3) a notarized signature of the applicant.9.25(g) When an applicant is a nonindividual, the applicant must provide the:9.26(1) applicant's taxpayer identification numbers including the Minnesota tax 9.27identification number, the and federal employer identification number;9.28(2) complete business name, and if doing business under a different name, the doing 9.29business as (DBA) name, as registered with the secretary of state;9.30(3) first, middle, and last name, and address for all individuals who will be 9.31controlling individuals, including all officers, owners, and managerial officials as defined 9.32in section 
         245A.02, subdivision 5a, and the date that the background study was initiated 9.33by the applicant for each controlling individual. The applicant must also provide the; and9.34(4) first, middle, and last name, mailing address, and notarized signature of the agent 9.35authorized by the applicant to accept service on behalf of the controlling individuals.10.1(h) At the time of application for licensure or renewal of a license, the applicant 10.2or license holder must acknowledge on the form provided by the commissioner if the 10.3applicant or license holder elects to receive any public funding reimbursement from the 10.4commissioner for services provided under the license that:10.5(1) the applicant's or license holder's compliance with the provider enrollment 10.6agreement or registration requirements for receipt of public funding may be monitored by 10.7the commissioner as part of a licensing investigation or licensing inspection; and10.8(2) noncompliance with the provider enrollment agreement or registration 10.9requirements for receipt of public funding that is identified through a licensing 10.10investigation or licensing inspection, or noncompliance with a licensing requirement that 10.11is a basis of enrollment for reimbursement for a service, may result in:10.12(i) a correction order or a conditional license under section 
         245A.06, or sanctions 10.13under section 
         245A.07;10.14(ii) nonpayment of claims submitted by the license holder for public program 10.15reimbursement;10.16(iii) recovery of payments made for the service;10.17(iv) disenrollment in the public payment program; or10.18(v) other administrative, civil, or criminal penalties as provided by law.10.19    Sec. 4. Minnesota Statutes 2012, section 245A.04, subdivision 5, is amended to read:10.20    Subd. 5. Commissioner's right of access.(a) When the commissioner is exercising 10.21the powers conferred by this chapter and sections 
         245.69, 
         626.556, and 
         626.557, the 10.22commissioner must be given access to:10.23(1) the physical plant and grounds where the program is provided,;10.24(2) documents and records, including records maintained in electronic format,;10.25(3) persons served by the program,; and10.26(4) staff and personnel records of current and former staff whenever the program is in 10.27operation and the information is relevant to inspections or investigations conducted by the 10.28commissioner. Upon request, the license holder must provide the commissioner verification 10.29of documentation of staff work experience, training, or educational requirements.10.30The commissioner must be given access without prior notice and as often as 10.31the commissioner considers necessary if the commissioner is investigating alleged 10.32maltreatment, conducting a licensing inspection, or investigating an alleged violation of 10.33applicable laws or rules. In conducting inspections, the commissioner may request and 10.34shall receive assistance from other state, county, and municipal governmental agencies and 10.35departments. The applicant or license holder shall allow the commissioner to photocopy, 11.1photograph, and make audio and video tape recordings during the inspection of the 11.2program at the commissioner's expense. The commissioner shall obtain a court order or 11.3the consent of the subject of the records or the parents or legal guardian of the subject 11.4before photocopying hospital medical records.11.5(b) Persons served by the program have the right to refuse to consent to be 11.6interviewed, photographed, or audio or videotaped. Failure or refusal of an applicant 11.7or license holder to fully comply with this subdivision is reasonable cause for the 11.8commissioner to deny the application or immediately suspend or revoke the license.11.9    Sec. 5. Minnesota Statutes 2012, section 245A.04, subdivision 11, is amended to read:11.10    Subd. 11. Education program; permitted ages, additional requirement. (a) 11.11Except for foster care, the commissioner of human services may not grant a license to a 11.12residential facility for the placement of children before the commissioner has received 11.13documentation of approval of the on-site educational program from the commissioner of 11.14education according to section 
         125A.515.11.15    (b) A program licensed by the commissioner under Minnesota Rules, chapter 2960, 11.16may serve persons who are over the age of 18 but under the age of 21 when the person is:11.17(1) completing secondary education or a program leading to an equivalent credential;11.18(2) enrolled in an institution which provides postsecondary or vocational education;11.19(3) participating in a program or activity designed to promote, or remove barriers to, 11.20employment;11.21(4) employed for at least 80 hours per month; or11.22(5) incapable of doing any of the activities described in clauses (1) to (4) due to a 11.23medical condition, which incapability is supported by regularly updated information in the 11.24case plan of the person.11.25(c) In addition to the requirements in paragraph (b), a residential program licensed 11.26by the commissioner of human services under Minnesota Rules, parts 2960.0010 to 11.272960.0710, may serve persons under the age of 21 provided the facility complies with the 11.28following requirements:11.29(1) for each person age 18 and older served at the program, the program must assess 11.30and document the person's risk of victimizing other residents residing in the facility, and 11.31based on the assessment, the facility must develop and implement necessary measures 11.32to minimize any risk of harm to other residents, including making arrangements for 11.33appropriate sleeping arrangements; and12.1(2) the program must assure that the services and living arrangements provided to all 12.2residents are suitable to the age and functioning of the residents, including separation of 12.3services, staff supervision, and other program operations as appropriate.12.4(d) Nothing in this subdivision precludes the license holder from seeking other 12.5variances under subdivision 9.12.6    Sec. 6. Minnesota Statutes 2012, section 245A.06, subdivision 1, is amended to read:12.7    Subdivision 1. Contents of correction orders and conditional licenses. (a) If 12.8the commissioner finds that the applicant or license holder has failed to comply with an 12.9applicable law or rule and this failure does not imminently endanger the health, safety, 12.10or rights of the persons served by the program, the commissioner may issue a correction 12.11order and an order of conditional license to the applicant or license holder. When issuing a 12.12conditional license, the commissioner shall consider the nature, chronicity, or severity of 12.13the violation of law or rule and the effect of the violation on the health, safety, or rights of 12.14persons served by the program. The correction order or conditional license must state:12.15(1) the conditions that constitute a violation of the law or rule;12.16(2) the specific law or rule violated;12.17(3) the time allowed to correct each violation; and12.18(4) if a license is made conditional, the length and terms of the conditional license.12.19(b) Nothing in this section prohibits the commissioner from proposing a sanction as 12.20specified in section 
         245A.07, prior to issuing a correction order or conditional license.12.21(c) If a license holder reports that an individual with a disqualification that has not 12.22been set aside has moved out of the home where services are provided or reports that other 12.23arrangements have been made so a disqualified person does not have direct contact or 12.24access to persons receiving services, the commissioner may issue an order of conditional 12.25license that makes licensure contingent on the individual's continuous absence from the 12.26home during the hours of operation when:12.27(1) the disqualified individual is a "family or household member" of the license 12.28holder, as defined in section 518B.01, subdivision 2; or12.29(2) the disqualified individual has a record of having had direct contact or access to 12.30people receiving services.12.31    Sec. 7. Minnesota Statutes 2012, section 245A.07, subdivision 2, is amended to read:12.32    Subd. 2. Temporary immediate suspension. If the license holder's actions or 12.33failure to comply with applicable law or rule, or the actions of other individuals or 12.34conditions in the program pose an imminent risk of harm to the health, safety, or rights of 13.1persons served by the program, or if while the program continues to operate pending an 13.2appeal of an order of revocation the commissioner identifies one or more new violations 13.3of law or rule which may adversely affect the health or safety of persons served by the 13.4program, the commissioner shall act immediately to temporarily suspend the license. 13.5No state funds shall be made available or be expended by any agency or department of 13.6state, county, or municipal government for use by a license holder regulated under this 13.7chapter while a license is under immediate suspension. A notice stating the reasons for 13.8the immediate suspension and informing the license holder of the right to an expedited 13.9hearing under chapter 14 and specifically Minnesota Rules, parts 1400.8505 to 1400.8612, 13.10must be delivered by personal service to the address shown on the application or the last 13.11known address of the license holder. The license holder may appeal an order immediately 13.12suspending a license. The appeal of an order immediately suspending a license must 13.13be made in writing by certified mail or personal service. If mailed, the appeal must be 13.14postmarked and sent to the commissioner within five calendar days after the license holder 13.15receives notice that the license has been immediately suspended. If a request is made by 13.16personal service, it must be received by the commissioner within five calendar days after 13.17the license holder received the order. A license holder and any controlling individual 13.18shall discontinue operation of the program upon receipt of the commissioner's order to 13.19immediately suspend the license.13.20    Sec. 8. Minnesota Statutes 2013 Supplement, section 245A.07, subdivision 2a, is 13.21amended to read:13.22    Subd. 2a. Immediate suspension expedited hearing. (a) Within five working days 13.23of receipt of the license holder's timely appeal, the commissioner shall request assignment 13.24of an administrative law judge. The request must include a proposed date, time, and place 13.25of a hearing. A hearing must be conducted by an administrative law judge within 30 13.26calendar days of the request for assignment, unless an extension is requested by either 13.27party and granted by the administrative law judge for good cause. The commissioner shall 13.28issue a notice of hearing by certified mail or personal service at least ten working days 13.29before the hearing. The scope of the hearing shall be limited solely to the issue of whether 13.30the temporary immediate suspension should remain in effect pending the commissioner's 13.31final order under section 
         245A.08, regarding a licensing sanction issued under subdivision 13.323 following the immediate suspension. The burden of proof in expedited hearings under 13.33this subdivision shall be limited to the commissioner's demonstration that reasonable 13.34cause exists to believe that the license holder's actions or failure to comply with applicable 13.35law or rule poses, or if the actions of other individuals or conditions in the program 14.1poses an imminent risk of harm to the health, safety, or rights of persons served by the 14.2program. "Reasonable cause" means there exist specific articulable facts or circumstances 14.3which provide the commissioner with a reasonable suspicion that there is an imminent 14.4risk of harm to the health, safety, or rights of persons served by the program. When the 14.5commissioner has determined there is reasonable cause to order the temporary immediate 14.6suspension of a license based on a violation of safe sleep requirements, as defined in 14.7section 
         245A.1435, the commissioner is not required to demonstrate that an infant died or 14.8was injured as a result of the safe sleep violations.14.9    (b) The administrative law judge shall issue findings of fact, conclusions, and a 14.10recommendation within ten working days from the date of hearing. The parties shall 14.11have ten calendar days to submit exceptions to the administrative law judge's report. 14.12The record shall close at the end of the ten-day period for submission of exceptions. 14.13The commissioner's final order shall be issued within ten working days from the close 14.14of the record. When an appeal of a temporary immediate suspension is withdrawn or 14.15dismissed, the commissioner shall issue a final order affirming the temporary immediate 14.16suspension within ten calendar days of the commissioner's receipt of the withdrawal or 14.17dismissal. Within 90 calendar days after a final order affirming an immediate suspension, 14.18the commissioner shall make a determination regarding whether a final licensing sanction 14.19shall be issued under subdivision 3. The license holder shall continue to be prohibited 14.20from operation of the program during this 90-day period.14.21    (c) When the final order under paragraph (b) affirms an immediate suspension, and a 14.22final licensing sanction is issued under subdivision 3 and the license holder appeals that 14.23sanction, the license holder continues to be prohibited from operation of the program 14.24pending a final commissioner's order under section 
         245A.08, subdivision 5, regarding the 14.25final licensing sanction.14.26    Sec. 9. Minnesota Statutes 2013 Supplement, section 245A.07, subdivision 3, is 14.27amended to read:14.28    Subd. 3. License suspension, revocation, or fine. (a) The commissioner may 14.29suspend or revoke a license, or impose a fine if:14.30    (1) a license holder fails to comply fully with applicable laws or rules;14.31    (2) a license holder, a controlling individual, or an individual living in the household 14.32where the licensed services are provided or is otherwise subject to a background study has 14.33a disqualification which has not been set aside under section 
         245C.22;14.34    (3) a license holder knowingly withholds relevant information from or gives false 14.35or misleading information to the commissioner in connection with an application for 15.1a license, in connection with the background study status of an individual, during an 15.2investigation, or regarding compliance with applicable laws or rules; or15.3    (4) after July 1, 2012, and upon request by the commissioner, a license holder fails 15.4to submit the information required of an applicant under section 
         245A.04, subdivision 1, 15.5paragraph (f) or (g).15.6    A license holder who has had a license suspended, revoked, or has been ordered 15.7to pay a fine must be given notice of the action by certified mail or personal service. If 15.8mailed, the notice must be mailed to the address shown on the application or the last 15.9known address of the license holder. The notice must state the reasons the license was 15.10suspended, revoked, or a fine was ordered.15.11    (b) If the license was suspended or revoked, the notice must inform the license 15.12holder of the right to a contested case hearing under chapter 14 and specifically Minnesota 15.13Rules, parts 1400.8505 to 1400.8612. The license holder may appeal an order suspending 15.14or revoking a license. The appeal of an order suspending or revoking a license must 15.15be made in writing by certified mail or personal service. If mailed, the appeal must be 15.16postmarked and sent to the commissioner within ten calendar days after the license holder 15.17receives notice that the license has been suspended or revoked. If a request is made by 15.18personal service, it must be received by the commissioner within ten calendar days after 15.19the license holder received the order. Except as provided in subdivision 2a, paragraph 15.20(c), if a license holder submits a timely appeal of an order suspending or revoking a 15.21license, the license holder may continue to operate the program as provided in section 15.22245A.04, subdivision 7
         , paragraphs (g) and (h), until the commissioner issues a final order 15.23on the suspension or revocation.15.24    (c)(1) If the license holder was ordered to pay a fine, the notice must inform the 15.25license holder of the responsibility for payment of fines and the right to a contested case 15.26hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal 15.27of an order to pay a fine must be made in writing by certified mail or personal service. If 15.28mailed, the appeal must be postmarked and sent to the commissioner within ten calendar 15.29days after the license holder receives notice that the fine has been ordered. If a request is 15.30made by personal service, it must be received by the commissioner within ten calendar 15.31days after the license holder received the order.15.32    (2) The license holder shall pay the fines assessed on or before the payment date 15.33specified. If the license holder fails to fully comply with the order, the commissioner 15.34may issue a second fine or suspend the license until the license holder complies. If the 15.35license holder receives state funds, the state, county, or municipal agencies or departments 15.36responsible for administering the funds shall withhold payments and recover any payments 16.1made while the license is suspended for failure to pay a fine. A timely appeal shall stay 16.2payment of the fine until the commissioner issues a final order.16.3    (3) A license holder shall promptly notify the commissioner of human services, 16.4in writing, when a violation specified in the order to forfeit a fine is corrected. If upon 16.5reinspection the commissioner determines that a violation has not been corrected as 16.6indicated by the order to forfeit a fine, the commissioner may issue a second fine. The 16.7commissioner shall notify the license holder by certified mail or personal service that a 16.8second fine has been assessed. The license holder may appeal the second fine as provided 16.9under this subdivision.16.10    (4) Fines shall be assessed as follows: the license holder shall forfeit $1,000 for 16.11each determination of maltreatment of a child under section 
         626.556 or the maltreatment 16.12of a vulnerable adult under section 
         626.557 for which the license holder is determined 16.13responsible for the maltreatment under section 
         626.556, subdivision 10e, paragraph (i), 16.14or 
         626.557, subdivision 9c, paragraph (c); the license holder shall forfeit $200 for each 16.15occurrence of a violation of law or rule governing matters of health, safety, or supervision, 16.16including but not limited to the provision of adequate staff-to-child or adult ratios, and 16.17failure to comply with background study requirements under chapter 245C; and the license 16.18holder shall forfeit $100 for each occurrence of a violation of law or rule other than those 16.19subject to a $1,000 or $200 fine above. For purposes of this section, "occurrence" means 16.20each violation identified in the commissioner's fine order. Fines assessed against a license 16.21holder that holds a license to provide home and community-based services, as identified 16.22in section 
         245D.03, subdivision 1, and a community residential setting or day services 16.23facility license under chapter 245D where the services are provided, may be assessed 16.24against both licenses for the same occurrence, but the combined amount of the fines shall 16.25not exceed the amount specified in this clause for that occurrence.16.26    (5) When a fine has been assessed, the license holder may not avoid payment by 16.27closing, selling, or otherwise transferring the licensed program to a third party. In such an 16.28event, the license holder will be personally liable for payment. In the case of a corporation, 16.29each controlling individual is personally and jointly liable for payment.16.30    (d) Except for background study violations involving the failure to comply with an 16.31order to immediately remove an individual or an order to provide continuous, direct 16.32supervision, the commissioner shall not issue a fine under paragraph (c) relating to a 16.33background study violation to a license holder who self-corrects a background study 16.34violation before the commissioner discovers the violation. A license holder who has 16.35previously exercised the provisions of this paragraph to avoid a fine for a background 16.36study violation may not avoid a fine for a subsequent background study violation unless at 17.1least 365 days have passed since the license holder self-corrected the earlier background 17.2study violation.17.3    Sec. 10. Minnesota Statutes 2012, section 245A.07, is amended by adding a 17.4subdivision to read:17.5    Subd. 7.Time frame for conducting hearing.Within 15 working days of receipt 17.6of the license holder's timely appeal of a sanction under this section other than a temporary 17.7immediate suspension, the commissioner shall request assignment of an administrative 17.8law judge. The commissioner's request must include a proposed date, time, and place of a 17.9hearing. A hearing must be conducted by an administrative law judge within 90 calendar 17.10days of the request for assignment, unless an extension is requested by either party and 17.11granted by the administrative law judge for good cause or for purposes of discussing 17.12settlement. In no case shall one or more extensions be granted for a total of more than 90 17.13calendar days unless there is a criminal or juvenile court action pending against the license 17.14holder or another individual subject to a background study.17.15    Sec. 11. Minnesota Statutes 2013 Supplement, section 245A.08, subdivision 2a, 17.16is amended to read:17.17    Subd. 2a. Consolidated contested case hearings. (a) When a denial of a license 17.18under section 
         245A.05 or a licensing sanction under section 
         245A.07, subdivision 3, is 17.19based on a disqualification for which reconsideration was timely requested and which was 17.20not set aside under section 
         245C.22, the scope of the contested case hearing shall include 17.21the disqualification and the licensing sanction or denial of a license, unless otherwise 17.22specified in this subdivision. When the licensing sanction or denial of a license is based on 17.23a determination of maltreatment under section 
         626.556 or 
         626.557, or a disqualification 17.24for serious or recurring maltreatment which was not set aside, the scope of the contested 17.25case hearing shall include the maltreatment determination, disqualification, and the 17.26licensing sanction or denial of a license, unless otherwise specified in this subdivision. In 17.27such cases, a fair hearing under section 
         256.045 shall not be conducted as provided for in 17.28sections 
         245C.27, 626.556, subdivision 10i, and 
         626.557, subdivision 9d.17.29    (b) Except for family child care and child foster care, reconsideration of a 17.30maltreatment determination under sections 
         626.556, subdivision 10i, and 
         626.557, 17.31subdivision 9d, and reconsideration of a disqualification under section 
         245C.22, shall 17.32not be conducted when:18.1    (1) a denial of a license under section 
         245A.05, or a licensing sanction under section 18.2245A.07
         , is based on a determination that the license holder is responsible for maltreatment 18.3or the disqualification of a license holder is based on serious or recurring maltreatment;18.4    (2) the denial of a license or licensing sanction is issued at the same time as the 18.5maltreatment determination or disqualification; and18.6    (3) the license holder appeals the maltreatment determination or disqualification, 18.7and denial of a license or licensing sanction. In these cases, a fair hearing shall not be 18.8conducted under sections 
         245C.27, 
         626.556, subdivision 10i, and 
         626.557, subdivision 18.99d. The scope of the contested case hearing must include the maltreatment determination, 18.10disqualification, and denial of a license or licensing sanction.18.11    Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 18.12determination or disqualification, but does not appeal the denial of a license or a licensing 18.13sanction, reconsideration of the maltreatment determination shall be conducted under 18.14sections 
         626.556, subdivision 10i, and 
         626.557, subdivision 9d, and reconsideration of the 18.15disqualification shall be conducted under section 
         245C.22. In such cases, a fair hearing 18.16shall also be conducted as provided under sections 
         245C.27, 
         626.556, subdivision 10i, and 18.17626.557, subdivision 9d
         .18.18    (c) In consolidated contested case hearings regarding sanctions issued in family 18.19child care, child foster care, family adult day services, adult foster care, and community 18.20residential settings, the county attorney shall defend the commissioner's orders in 18.21accordance with section 
         245A.16, subdivision 4.18.22    (d) The commissioner's final order under subdivision 5 is the final agency action 18.23on the issue of maltreatment and disqualification, including for purposes of subsequent 18.24background studies under chapter 245C and is the only administrative appeal of the final 18.25agency determination, specifically, including a challenge to the accuracy and completeness 18.26of data under section 
         13.04.18.27    (e) When consolidated hearings under this subdivision involve a licensing sanction 18.28based on a previous maltreatment determination for which the commissioner has issued 18.29a final order in an appeal of that determination under section 
         256.045, or the individual 18.30failed to exercise the right to appeal the previous maltreatment determination under 18.31section 
         626.556, subdivision 10i, or 
         626.557, subdivision 9d, the commissioner's order is 18.32conclusive on the issue of maltreatment. In such cases, the scope of the administrative 18.33law judge's review shall be limited to the disqualification and the licensing sanction or 18.34denial of a license. In the case of a denial of a license or a licensing sanction issued to 18.35a facility based on a maltreatment determination regarding an individual who is not the 19.1license holder or a household member, the scope of the administrative law judge's review 19.2includes the maltreatment determination.19.3    (f) The hearings of all parties may be consolidated into a single contested case 19.4hearing upon consent of all parties and the administrative law judge, if:19.5    (1) a maltreatment determination or disqualification, which was not set aside under 19.6section 
         245C.22, is the basis for a denial of a license under section 
         245A.05 or a licensing 19.7sanction under section 
         245A.07;19.8    (2) the disqualified subject is an individual other than the license holder and upon 19.9whom a background study must be conducted under section 
         245C.03; and19.10    (3) the individual has a hearing right under section 
         245C.27.19.11    (g) When a denial of a license under section 
         245A.05 or a licensing sanction under 19.12section 
         245A.07 is based on a disqualification for which reconsideration was requested 19.13and was not set aside under section 
         245C.22, and the individual otherwise has no hearing 19.14right under section 
         245C.27, the scope of the administrative law judge's review shall 19.15include the denial or sanction and a determination whether the disqualification should 19.16be set aside, unless section 
         245C.24 prohibits the set-aside of the disqualification. In 19.17determining whether the disqualification should be set aside, the administrative law judge 19.18shall consider the factors under section 
         245C.22, subdivision 4, to determine whether the 19.19individual poses a risk of harm to any person receiving services from the license holder.19.20    (h) Notwithstanding section 
         245C.30, subdivision 5, when a licensing sanction 19.21under section 
         245A.07 is based on the termination of a variance under section 
         245C.30, 19.22subdivision 4
         , the scope of the administrative law judge's review shall include the sanction 19.23and a determination whether the disqualification should be set aside, unless section 19.24245C.24
          prohibits the set-aside of the disqualification. In determining whether the 19.25disqualification should be set aside, the administrative law judge shall consider the factors 19.26under section 
         245C.22, subdivision 4, to determine whether the individual poses a risk of 19.27harm to any person receiving services from the license holder.19.28    Sec. 12. Minnesota Statutes 2012, section 245A.08, subdivision 5a, is amended to read:19.29    Subd. 5a. Granting subsequent license. (a) A license holder and each controlling 19.30individual of a license holder whose license has been revoked because of noncompliance 19.31with applicable law or rule must not be granted a license for five years following the 19.32revocation. Notwithstanding the five-year restriction, when a license is revoked because a 19.33person, other than the license holder, resides in the home where services are provided and 19.34that person has a disqualification that is not set aside and no variance has been granted, 19.35the former license holder may reapply for a license when:20.1(1) the person with a disqualification, who is not a minor child, is no longer residing 20.2in the home and is prohibited from residing in or returning to the home; or20.3(2) the person with the disqualification is a minor child, the restriction applies until 20.4the minor child becomes an adult and permanently moves away from the home or five 20.5years, whichever is less.20.6(b) An applicant or controlling individual whose application was denied must not 20.7be granted a license for two years following a denial, unless the applicant's subsequent 20.8application contains new information which constitutes a substantial change in the 20.9conditions that caused the previous denial. The addition of a new co-applicant in a 20.10subsequent application does not constitute a substantial change. If an applicant or 20.11controlling individual whose application was denied is affiliated with a subsequent 20.12application, and two years have not passed since the denial, the subsequent application 20.13must be denied.20.14    Sec. 13. Minnesota Statutes 2012, section 245A.146, subdivision 3, is amended to read:20.15    Subd. 3. License holder documentation of cribs. (a) Annually, from the date 20.16printed on the license, all license holders shall check all their cribs' brand names and 20.17model numbers against the United States Consumer Product Safety Commission Web 20.18site listing of unsafe cribs.20.19(b) The license holder shall maintain written documentation to be reviewed on site 20.20for each crib showing that the review required in paragraph (a) has been completed, and 20.21which of the following conditions applies:20.22(1) the crib was not identified as unsafe on the United States Consumer Product 20.23Safety Commission Web site;20.24(2) the crib was identified as unsafe on the United States Consumer Product Safety 20.25Commission Web site, but the license holder has taken the action directed by the United 20.26States Consumer Product Safety Commission to make the crib safe; or20.27(3) the crib was identified as unsafe on the United States Consumer Product Safety 20.28Commission Web site, and the license holder has removed the crib so that it is no longer 20.29used by or accessible to children in care.20.30(c) Documentation of the review completed under this subdivision shall be 20.31maintained by the license holder on site and made available to parents or guardians of 20.32children in care and the commissioner.20.33(d) Notwithstanding Minnesota Rules, part 9502.0425, a family child care provider 20.34that complies with this section may use a mesh-sided or fabric-sided play yard, pack 21.1and play, or playpen or crib that has not been identified as unsafe on the United States 21.2Consumer Product Safety Commission Web site for the care or sleeping of infants.21.3(e) On at least a monthly basis, the family child care license holder shall perform 21.4safety inspections of every mesh-sided or fabric-sided play yard, pack and play, or playpen 21.5used by or that is accessible to any child in care, and must document the following:21.6(1) there are no tears, holes, or loose or unraveling threads in mesh or fabric sides of 21.7crib;21.8(2) the weave of the mesh on the crib is no larger than 1/4 of an inch;21.9(3) no mesh fabric is unsecure or unattached to top rail and floor plate of crib;21.10(4) no tears or holes to top rail of crib;21.11(5) the mattress floor board is not soft and does not exceed one-inch thick;21.12(6) the mattress floor board has no rips or tears in covering;21.13(7) the mattress floor board in use is a waterproof original mattress or replacement 21.14mattress provided by the manufacturer of the crib;21.15(8) there are no protruding or loose rivets, metal nuts, or bolts on the crib;21.16(9) there are no knobs or wing nuts on outside crib legs;21.17(10) there are no missing, loose, or exposed staples; and 21.18(11) the latches on top and side rails used to collapse crib are secure, they lock 21.19properly, and are not loose.21.20    Sec. 14. Minnesota Statutes 2012, section 245A.146, subdivision 4, is amended to read:21.21    Subd. 4. Crib safety standards and inspection. (a) On at least a monthly basis, 21.22the license holder shall perform safety inspections of every crib or portable crib of rigid 21.23construction including full size and non-full size cribs used by or that is accessible to any 21.24child in care, and must document the following:21.25(1) no corner posts extend more than 1/16 of an inch;21.26(2) no spaces between side slats exceed 2.375 inches;21.27(3) no mattress supports can be easily dislodged from any point of the crib;21.28(4) no cutout designs are present on end panels;21.29(5) no heights of the rail and end panel are less than 26 inches when measured from 21.30the top of the rail or panel in the highest position to the top of the mattress support in 21.31its lowest position;21.32(6) no heights of the rail and end panel are less than nine inches when measured 21.33from the top of the rail or panel in its lowest position to the top of the mattress support in 21.34its highest position;22.1(7) (2) no screws, bolts, or hardware are loose or not secured, and there is no use 22.2of woodscrews in components that are designed to be assembled and disassembled by 22.3the crib owner;22.4(8) (3) no sharp edges, points, or rough surfaces are present;22.5(9) (4) no wood surfaces are rough, splintered, split, or cracked; and22.6(10) no tears in mesh of fabric sides in non-full-size cribs;22.7(11) no mattress pads in non-full-size mesh or fabric cribs exceed one inch; and22.8(12) (5) no unacceptable gaps between the mattress and any sides of the crib are 22.9present as follows:22.10(i) when the noncompressed mattress is centered in the non-full-size crib, at any of 22.11the adjustable mattress support positions, the gap between the perimeter of the mattress 22.12and the perimeter of the crib cannot be greater than one-half inch at any point. When the 22.13mattress is placed against the perimeter of the crib, the resulting gap cannot be greater 22.14than one inch at any point; and22.15(ii) when the noncompressed mattress is centered in the full-size crib, at any of 22.16the adjustable mattress support positions, the gap between the perimeter of the mattress 22.17and the perimeter of the crib cannot be greater than 11/16 inch at any point. When the 22.18mattress is placed against the perimeter of the crib, the resulting gap cannot be greater 22.19than 1-3/8 inch at any point.22.20(b) Upon discovery of any unsafe condition identified by the license holder during 22.21the safety inspection required under paragraph (a) or subdivision 3, paragraph (e), the 22.22license holder shall immediately remove the crib from use and ensure that the crib is not 22.23accessible to children in care, and as soon as practicable, but not more than two business 22.24days after the inspection, remove the crib from the area where child care services are 22.25routinely provided for necessary repairs or to destroy the crib.22.26(c) Documentation of the inspections and actions taken with unsafe cribs required in 22.27paragraphs (a) and (b), and subdivision 3, paragraph (e), shall be maintained on site by the 22.28license holder and made available to parents of children in care and the commissioner.22.29    Sec. 15. Minnesota Statutes 2013 Supplement, section 245A.50, subdivision 4, is 22.30amended to read:22.31    Subd. 4. Cardiopulmonary resuscitation. (a) When children are present in a 22.32family child care home governed by Minnesota Rules, parts 9502.0315 to 9502.0445, at 22.33least one staff person caregiver must be present in the home who has been trained in 22.34cardiopulmonary resuscitation (CPR), including CPR techniques for infants and children,22.35 and in the treatment of obstructed airways that includes CPR techniques for infants and 23.1children. The CPR training must have been provided by an individual approved to provide 23.2CPR instruction, must be repeated at least once every two years, and must be documented 23.3in the staff person's records.23.4    (b) A family child care provider is exempt from the CPR training requirement in 23.5this subdivision related to any substitute caregiver who provides less than 30 hours of 23.6care during any 12-month period.23.7    (c) Persons providing CPR training must use CPR training that has been developed:23.8    (1) by the American Heart Association or the American Red Cross and incorporates 23.9psychomotor skills to support the instruction; or23.10    (2) using nationally recognized, evidence-based guidelines for CPR training and 23.11incorporates psychomotor skills to support the instruction.23.12    Sec. 16. Minnesota Statutes 2012, section 245A.65, subdivision 1, is amended to read:23.13    Subdivision 1. License holder requirements. All license holders serving vulnerable 23.14adults shall establish and enforce written policies and procedures related to suspected or 23.15alleged maltreatment, and shall orient clients and mandated reporters who are under 23.16the control of the license holder to these procedures, as defined in section 
         626.5572, 23.17subdivision 16
         .23.18    (a) License holders must establish policies and procedures allowing but not 23.19mandating the internal reporting of alleged or suspected maltreatment. License holders 23.20shall ensure that the policies and procedures on internal reporting:23.21    (1) meet all the requirements identified for the optional internal reporting policies 23.22and procedures in section 
         626.557, subdivision 4a; and23.23    (2) identify the primary and secondary person or position to whom internal reports 23.24may be made and the primary and secondary person or position responsible for forwarding 23.25internal reports to the common entry point as defined in section 
         626.5572, subdivision 5. 23.26The secondary person must be involved when there is reason to believe that the primary 23.27person was involved in the alleged or suspected maltreatment.23.28    (b) The license holder shall:23.29    (1) establish and maintain policies and procedures to ensure that an internal review 23.30is completed within 30 calendar days and that corrective action is taken as necessary to 23.31protect the health and safety of vulnerable adults when the facility has reason to know 23.32that an internal or external report of alleged or suspected maltreatment has been made. 23.33The review must include an evaluation of whether related policies and procedures were 23.34followed, whether the policies and procedures were adequate, whether there is a need for 23.35additional staff training, whether the reported event is similar to past events with the 24.1vulnerable adults or the services involved, and whether there is a need for corrective 24.2action by the license holder to protect the health and safety of vulnerable adults. Based on 24.3the results of this review, the license holder must develop, document, and implement a 24.4corrective action plan designed to correct current lapses and prevent future lapses in 24.5performance by individuals or the license holder, if any.24.6    (2) identify the primary and secondary person or position who will ensure that, when 24.7required, internal reviews are completed. The secondary person shall be involved when 24.8there is reason to believe that the primary person was involved in the alleged or suspected 24.9maltreatment; and24.10    (3) document and make internal reviews accessible to the commissioner immediately 24.11upon the commissioner's request. For the purposes of this section, the documentation 24.12provided to the commissioner by the license holder may consist of a completed checklist 24.13that verifies completion of each of the requirements of the review.24.14    (c) The license holder shall provide an orientation to the internal and external 24.15reporting procedures to all persons receiving services. The orientation shall include the 24.16telephone number for the license holder's common entry point as defined in section 24.17626.5572, subdivision 5
         . If applicable, the person's legal representative must be notified of 24.18the orientation. The program shall provide this orientation for each new person within 24 24.19hours of admission, or for persons who would benefit more from a later orientation, the 24.20orientation may take place within 72 hours.24.21    (d) The license holder shall post a copy of the internal and external reporting policies 24.22and procedures, including the telephone number of the common entry point as defined 24.23in section 
         626.5572, subdivision 5, in a prominent location in the program and have it 24.24available upon request to mandated reporters, persons receiving services, and the person's 24.25legal representatives.24.26    Sec. 17. Minnesota Statutes 2012, section 245A.66, subdivision 1, is amended to read:24.27    Subdivision 1. Internal review. Except for family child care settings and foster care 24.28for children in the license holder's residence, license holders serving children shall:24.29    (1) establish and maintain policies and procedures to ensure that an internal review 24.30is completed within 30 calendar days and that corrective action is taken if necessary to 24.31protect the health and safety of children in care when the facility has reason to know that 24.32an internal or external report of alleged or suspected maltreatment has been made. The 24.33review must include an evaluation of whether:24.34    (i) related policies and procedures were followed;24.35    (ii) the policies and procedures were adequate;25.1    (iii) there is a need for additional staff training;25.2    (iv) the reported event is similar to past events with the children or the services 25.3involved; and25.4    (v) there is a need for corrective action by the license holder to protect the health and 25.5safety of children in care.25.6    Based on the results of this review, the license holder must develop, document, and 25.7implement a corrective action plan designed to correct current lapses and prevent future 25.8lapses in performance by individuals or the license holder, if any;25.9    (2) identify the primary and secondary person or position who will ensure that, when 25.10required, internal reviews are completed. The secondary person shall be involved when 25.11there is reason to believe that the primary person was involved in the alleged or suspected 25.12maltreatment; and25.13    (3) document that the and make internal review has been completedand provide 25.14documentation showing the review was completed reviews accessible to the commissioner 25.15immediately upon the commissioner's request. For the purposes of this section, the 25.16documentation provided to the commissioner by the license holder may consist of a 25.17completed checklist that verifies completion of each of the requirements of the review.25.18ARTICLE 325.19FINANCIAL FRAUD AND ABUSE INVESTIGATION25.20    Section 1. Minnesota Statutes 2012, section 168.012, subdivision 1, is amended to read:25.21    Subdivision 1. Vehicles exempt from tax, fees, or plate display. (a) The following 25.22vehicles are exempt from the provisions of this chapter requiring payment of tax and 25.23registration fees, except as provided in subdivision 1c:25.24    (1) vehicles owned and used solely in the transaction of official business by the 25.25federal government, the state, or any political subdivision;25.26    (2) vehicles owned and used exclusively by educational institutions and used solely 25.27in the transportation of pupils to and from those institutions;25.28    (3) vehicles used solely in driver education programs at nonpublic high schools;25.29    (4) vehicles owned by nonprofit charities and used exclusively to transport disabled 25.30persons for charitable, religious, or educational purposes;25.31    (5) vehicles owned by nonprofit charities and used exclusively for disaster response 25.32and related activities;25.33    (6) vehicles owned by ambulance services licensed under section 
         144E.10 that 25.34are equipped and specifically intended for emergency response or providing ambulance 25.35services; and26.1    (7) vehicles owned by a commercial driving school licensed under section 
         171.34, 26.2or an employee of a commercial driving school licensed under section 
         171.34, and the 26.3vehicle is used exclusively for driver education and training.26.4    (b) Provided the general appearance of the vehicle is unmistakable, the following 26.5vehicles are not required to register or display number plates:26.6(1) vehicles owned by the federal government;26.7(2) fire apparatuses, including fire-suppression support vehicles, owned or leased by 26.8the state or a political subdivision;26.9(3) police patrols owned or leased by the state or a political subdivision; and26.10(4) ambulances owned or leased by the state or a political subdivision.26.11    (c) Unmarked vehicles used in general police work, liquor investigations, or arson 26.12investigations, and passenger automobiles, pickup trucks, and buses owned or operated by 26.13the Department of Corrections or by conservation officers of the Division of Enforcement 26.14and Field Service of the Department of Natural Resources, must be registered and must 26.15display appropriate license number plates, furnished by the registrar at cost. Original and 26.16renewal applications for these license plates authorized for use in general police work and 26.17for use by the Department of Corrections or by conservation officers must be accompanied 26.18by a certification signed by the appropriate chief of police if issued to a police vehicle, 26.19the appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if 26.20issued to a Department of Corrections vehicle, or the appropriate officer in charge if 26.21issued to a vehicle of any other law enforcement agency. The certification must be on a 26.22form prescribed by the commissioner and state that the vehicle will be used exclusively 26.23for a purpose authorized by this section.26.24    (d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry, 26.25fraud unit, in conducting seizures or criminal investigations must be registered and must 26.26display passenger vehicle classification license number plates, furnished at cost by the 26.27registrar. Original and renewal applications for these passenger vehicle license plates 26.28must be accompanied by a certification signed by the commissioner of revenue or the 26.29commissioner of labor and industry. The certification must be on a form prescribed by 26.30the commissioner and state that the vehicles will be used exclusively for the purposes 26.31authorized by this section.26.32    (e) Unmarked vehicles used by the Division of Disease Prevention and Control of the 26.33Department of Health must be registered and must display passenger vehicle classification 26.34license number plates. These plates must be furnished at cost by the registrar. Original 26.35and renewal applications for these passenger vehicle license plates must be accompanied 26.36by a certification signed by the commissioner of health. The certification must be on a 27.1form prescribed by the commissioner and state that the vehicles will be used exclusively 27.2for the official duties of the Division of Disease Prevention and Control.27.3    (f) Unmarked vehicles used by staff of the Gambling Control Board in gambling 27.4investigations and reviews must be registered and must display passenger vehicle 27.5classification license number plates. These plates must be furnished at cost by the 27.6registrar. Original and renewal applications for these passenger vehicle license plates must 27.7be accompanied by a certification signed by the board chair. The certification must be on a 27.8form prescribed by the commissioner and state that the vehicles will be used exclusively 27.9for the official duties of the Gambling Control Board.27.10    (g) Unmarked vehicles used in general investigation, surveillance, supervision, and 27.11monitoring by the staff of the Department of Human Services Services' Office of Special 27.12Investigations and the executive director of Investigations' staff; the Minnesota sex 27.13offender program program's executive director and the executive director's staff; and the 27.14Office of Inspector General's staff, including, but not limited to, county fraud prevention 27.15investigators, must be registered and must display passenger vehicle classification license 27.16number plates, furnished by the registrar at cost. Original and renewal applications for 27.17passenger vehicle license plates must be accompanied by a certification signed by the 27.18commissioner of human services. The certification must be on a form prescribed by the 27.19commissioner and state that the vehicles must be used exclusively for the official duties of 27.20the Office of Special Investigations and Investigations' staff; the executive director of the27.21 Minnesota sex offender program program's executive director and the executive director's 27.22staff; and the Office of the Inspector General's staff, including, but not limited to, contract 27.23and county fraud prevention investigators.27.24(h) Each state hospital and institution for persons who are mentally ill and 27.25developmentally disabled may have one vehicle without the required identification on 27.26the sides of the vehicle. The vehicle must be registered and must display passenger 27.27vehicle classification license number plates. These plates must be furnished at cost by the 27.28registrar. Original and renewal applications for these passenger vehicle license plates must 27.29be accompanied by a certification signed by the hospital administrator. The certification 27.30must be on a form prescribed by the commissioner and state that the vehicles will be used 27.31exclusively for the official duties of the state hospital or institution.27.32    (i) Each county social service agency may have vehicles used for child and 27.33vulnerable adult protective services without the required identification on the sides of the 27.34vehicle. The vehicles must be registered and must display passenger vehicle classification 27.35license number plates. These plates must be furnished at cost by the registrar. Original 27.36and renewal applications for these passenger vehicle license plates must be accompanied 28.1by a certification signed by the agency administrator. The certification must be on a form 28.2prescribed by the commissioner and state that the vehicles will be used exclusively for the 28.3official duties of the social service agency.28.4    (j) All other motor vehicles must be registered and display tax-exempt number 28.5plates, furnished by the registrar at cost, except as provided in subdivision 1c. All 28.6vehicles required to display tax-exempt number plates must have the name of the state 28.7department or political subdivision, nonpublic high school operating a driver education 28.8program, licensed commercial driving school, or other qualifying organization or entity, 28.9plainly displayed on both sides of the vehicle. This identification must be in a color 28.10giving contrast with that of the part of the vehicle on which it is placed and must endure 28.11throughout the term of the registration. The identification must not be on a removable 28.12plate or placard and must be kept clean and visible at all times; except that a removable 28.13plate or placard may be utilized on vehicles leased or loaned to a political subdivision or 28.14to a nonpublic high school driver education program.28.15EFFECTIVE DATE.This section is effective the day following final enactment.28.16    Sec. 2. Minnesota Statutes 2012, section 256.01, subdivision 18d, is amended to read:28.17    Subd. 18d. Data sharing with the Department of Human Services; multiple 28.18identification cards. (a) The commissioner of public safety shall, on a monthly basis, 28.19provide the commissioner of human services with the first, middle, and last name, and28.20 the address, date of birth, and driver's license or state identification card number, and 28.21all photographs or electronically produced images  of all applicants and holders whose 28.22drivers' licenses and state identification cards have been canceled under section 
         171.14, 28.23paragraph (a), clause (2) or (3), by the commissioner of public safety. After the initial data 28.24report has been provided by the commissioner of public safety to the commissioner of 28.25human services under this paragraph, subsequent reports shall only include cancellations 28.26that occurred after the end date of the cancellations represented in the previous data report.28.27(b) The commissioner of human services shall compare the information provided 28.28under paragraph (a) with the commissioner's data regarding recipients of all public 28.29assistance programs managed by the Department of Human Services to determine whether 28.30any individual with multiple identification cards issued by the Department of Public 28.31Safety has illegally or improperly enrolled in any public assistance program managed by 28.32the Department of Human Services.28.33(c) If the commissioner of human services determines that an applicant or recipient 28.34has illegally or improperly enrolled in any public assistance program, the commissioner 29.1shall provide all due process protections to the individual before terminating the individual 29.2from the program according to applicable statute and notifying the county attorney.29.3EFFECTIVE DATE.This section is effective the day following final enactment.29.4    Sec. 3. Minnesota Statutes 2013 Supplement, section 268.19, subdivision 1, is 29.5amended to read:29.6    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered 29.7from any person under the administration of the Minnesota Unemployment Insurance Law 29.8are private data on individuals or nonpublic data not on individuals as defined in section 29.913.02
         , subdivisions 9 and 12, and may not be disclosed except according to a district court 29.10order or section 
         13.05. A subpoena is not considered a district court order. These data 29.11may be disseminated to and used by the following agencies without the consent of the 29.12subject of the data:29.13    (1) state and federal agencies specifically authorized access to the data by state 29.14or federal law;29.15    (2) any agency of any other state or any federal agency charged with the 29.16administration of an unemployment insurance program;29.17    (3) any agency responsible for the maintenance of a system of public employment 29.18offices for the purpose of assisting individuals in obtaining employment;29.19    (4) the public authority responsible for child support in Minnesota or any other 29.20state in accordance with section 
         256.978;29.21    (5) human rights agencies within Minnesota that have enforcement powers;29.22    (6) the Department of Revenue to the extent necessary for its duties under Minnesota 29.23laws;29.24    (7) public and private agencies responsible for administering publicly financed 29.25assistance programs for the purpose of monitoring the eligibility of the program's recipients;29.26    (8) the Department of Labor and Industry and the Commerce Fraud Bureau in the 29.27Department of Commerce for uses consistent with the administration of their duties under 29.28Minnesota law;29.29    (9) the Department of Human Services and the Office of Inspector General and its 29.30agents within the Department of Human Services, including county fraud investigators, 29.31for investigations related to recipient or provider fraud and employees of providers when 29.32the provider is suspected of committing public assistance fraud; 29.33    (9) (10) local and state welfare agencies for monitoring the eligibility of the data 29.34subject for assistance programs, or for any employment or training program administered 29.35by those agencies, whether alone, in combination with another welfare agency, or in 30.1conjunction with the department or to monitor and evaluate the statewide Minnesota 30.2family investment program by providing data on recipients and former recipients of food 30.3stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care 30.4assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;30.5    (10) (11) local and state welfare agencies for the purpose of identifying employment, 30.6wages, and other information to assist in the collection of an overpayment debt in an 30.7assistance program;30.8    (11) (12) local, state, and federal law enforcement agencies for the purpose of 30.9ascertaining the last known address and employment location of an individual who is the 30.10subject of a criminal investigation;30.11    (12) (13) the United States Immigration and Customs Enforcement has access to 30.12data on specific individuals and specific employers provided the specific individual or 30.13specific employer is the subject of an investigation by that agency;30.14    (13) (14) the Department of Health for the purposes of epidemiologic investigations;30.15    (14) (15) the Department of Corrections for the purpose of case planning for 30.16preprobation and postprobation employment tracking of offenders sentenced to probation 30.17and preconfinement and postconfinement employment tracking of committed offenders;30.18    (15) (16) the state auditor to the extent necessary to conduct audits of job opportunity 30.19building zones as required under section 
         469.3201; and30.20    (16) (17) the Office of Higher Education for purposes of supporting program 30.21improvement, system evaluation, and research initiatives including the Statewide 30.22Longitudinal Education Data System.30.23    (b) Data on individuals and employers that are collected, maintained, or used by 30.24the department in an investigation under section 
         268.182 are confidential as to data 30.25on individuals and protected nonpublic data not on individuals as defined in section 30.2613.02
         , subdivisions 3 and 13, and must not be disclosed except under statute or district 30.27court order or to a party named in a criminal proceeding, administrative or judicial, for 30.28preparation of a defense.30.29    (c) Data gathered by the department in the administration of the Minnesota 30.30unemployment insurance program must not be made the subject or the basis for any 30.31suit in any civil proceedings, administrative or judicial, unless the action is initiated by 30.32the department.30.33EFFECTIVE DATE.This section is effective the day following final enactment.31.1    Sec. 4. Minnesota Statutes 2012, section 471.346, is amended to read:31.2471.346 PUBLICLY OWNED AND LEASED VEHICLES IDENTIFIED.31.3All motor vehicles owned or leased by a statutory or home rule charter city, county, 31.4town, school district, metropolitan or regional agency, or other political subdivision, except 31.5for unmarked vehicles used in general police and fire work and, arson investigations,31.6 and Department of Human Services investigations including county fraud prevention 31.7investigations, shall have the name of the political subdivision plainly displayed on both 31.8sides of the vehicle in letters not less than 2-1/2 inches high and one-half inch wide. The 31.9identification must be in a color that contrasts with the color of the part of the vehicle on 31.10which it is placed and must remain on and be clean and visible throughout the period of 31.11which the vehicle is owned or leased by the political subdivision. The identification must 31.12not be on a removable plate or placard except on leased vehicles but the plate or placard 31.13must not be removed from a leased vehicle at any time during the term of the lease.31.14EFFECTIVE DATE.This section is effective the day following final enactment.31.15ARTICLE 431.16CHEMICAL AND MENTAL HEALTH31.17    Section 1. Minnesota Statutes 2012, section 254B.05, subdivision 5, is amended to read:31.18    Subd. 5. Rate requirements. (a) The commissioner shall establish rates for 31.19chemical dependency services and service enhancements funded under this chapter.31.20(b) Eligible chemical dependency treatment services include:31.21(1) outpatient treatment services that are licensed according to Minnesota Rules, 31.22parts 9530.6405 to 9530.6480, or applicable tribal license;31.23(2) medication-assisted therapy services that are licensed according to Minnesota 31.24Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;31.25(3) medication-assisted therapy plus enhanced treatment services that meet the 31.26requirements of clause (2) and provide nine hours of clinical services each week;31.27(4) high, medium, and low intensity residential treatment services that are licensed 31.28according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable 31.29tribal license which provide, respectively, 30, 15, and five hours of clinical services each 31.30week;31.31(5) hospital-based treatment services that are licensed according to Minnesota Rules, 31.32parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under 31.33sections 
         144.50 to 
         144.56;32.1(6) adolescent treatment programs that are licensed as outpatient treatment programs 32.2according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment 32.3programs according to Minnesota Rules, chapter 2960 parts 2960.0010 to 2960.0220, and 32.42960.0430 to 2960.0490, or applicable tribal license; and32.5(7) room and board facilities that meet the requirements of section 
         254B.05, 32.6subdivision 1a.32.7(c) The commissioner shall establish higher rates for programs that meet the 32.8requirements of paragraph (b) and the following additional requirements:32.9(1) programs that serve parents with their children if the program:32.10(i) provides on-site child care during hours of treatment activity that meets the 32.11additional licensing requirement requirements in Minnesota Rules, part 9530.6490, and 32.12provides child care that meets the requirements of or section 
         245A.03, subdivision 2, 32.13during hours of treatment activity; or32.14(ii) arranges for off-site child care during hours of treatment activity at a facility that 32.15is licensed under chapter 245A as:32.16(A) a child care center under Minnesota Rules, chapter 9503; or32.17(B) a family child care home under Minnesota Rules, chapter 9502;32.18(2) programs serving special populations if the program meets the requirements in 32.19Minnesota Rules, part 9530.6605, subpart 13;32.20(3) programs that offer medical services delivered by appropriately credentialed 32.21health care staff in an amount equal to two hours per client per week if the medical 32.22needs of the client and the nature and provision of any medical services provided are 32.23documented in the client file; and32.24(4) programs that offer services to individuals with co-occurring mental health and 32.25chemical dependency problems if:32.26(i) the program meets the co-occurring requirements in Minnesota Rules, part 32.279530.6495;32.28(ii) 25 percent of the counseling staff are licensed mental health professionals, as 32.29defined in section 
         245.462, subdivision 18, clauses (1) to (6), or are students or licensing 32.30candidates under the supervision of a licensed alcohol and drug counselor supervisor and 32.31licensed mental health professional, except that no more than 50 percent of the mental 32.32health staff may be students or licensing candidates with time documented to be directly 32.33related to provisions of co-occurring services;32.34(iii) clients scoring positive on a standardized mental health screen receive a mental 32.35health diagnostic assessment within ten days of admission;33.1(iv) the program has standards for multidisciplinary case review that include a 33.2monthly review for each client that, at a minimum, includes a licensed mental health 33.3professional and licensed alcohol and drug counselor, and their involvement in the review 33.4is documented;33.5(v) family education is offered that addresses mental health and substance abuse 33.6disorders and the interaction between the two; and33.7(vi) co-occurring counseling staff will receive eight hours of co-occurring disorder 33.8training annually.33.9(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program 33.10that provides arrangements for off-site child care must maintain current documentation at 33.11the chemical dependency facility of the child care provider's current licensure to provide 33.12child care services. Programs that provide child care according to paragraph (c), clause 33.13(1), must be deemed in compliance with the licensing requirements in Minnesota Rules, 33.14part 9530.6490.33.15(e) Adolescent residential programs that meet the requirements of Minnesota Rules, 33.16parts 2960.0580 to 2960.0700 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are 33.17exempt from the requirements in paragraph (c), clause (4), items (i) to (iv).33.18ARTICLE 533.19BACKGROUND STUDIES33.20    Section 1. Minnesota Statutes 2012, section 245C.04, as amended by Laws 2013, 33.21chapter 108, article 5, section 3, is amended to read:33.22245C.04 WHEN BACKGROUND STUDY MUST OCCUR.33.23    Subdivision 1. Licensed programs. (a) The commissioner shall conduct a 33.24background study of an individual required to be studied under section 
         245C.03, 33.25subdivision 1
         , at least upon application for initial license for all license types.33.26    (b) The commissioner shall conduct a background study of an individual required 33.27to be studied under section 
         245C.03, subdivision 1, at reapplication for a license for 33.28family child care.33.29    (c) The commissioner is not required to conduct a study of an individual at the time 33.30of reapplication for a license if the individual's background study was completed by the 33.31commissioner of human services for an adult foster care license holder that is also:33.32    (1) registered under chapter 144D; or34.1    (2) licensed to provide home and community-based services to people with 34.2disabilities at the foster care location and the license holder does not reside in the foster 34.3care residence; and34.4    (3) the following conditions are met:34.5    (i) a study of the individual was conducted either at the time of initial licensure or 34.6when the individual became affiliated with the license holder;34.7    (ii) the individual has been continuously affiliated with the license holder since 34.8the last study was conducted; and34.9    (iii) the last study of the individual was conducted on or after October 1, 1995.34.10    (d) From July 1, 2007, to June 30, 2009, the commissioner of human services shall 34.11conduct a study of an individual required to be studied under section 
         245C.03, at the 34.12time of reapplication for a child foster care license. The county or private agency shall 34.13collect and forward to the commissioner the information required under section 
         245C.05, 34.14subdivisions 1, paragraphs (a) and (b), and 5, paragraphs (a) and (b). The background 34.15study conducted by the commissioner of human services under this paragraph must 34.16include a review of the information required under section 
         245C.08, subdivisions 1, 34.17paragraph (a), clauses (1) to (5), 3, and 4.34.18    (e) The commissioner of human services shall conduct a background study of an 34.19individual specified under section 
         245C.03, subdivision 1, paragraph (a), clauses (2) 34.20to (6), who is newly affiliated with a child foster care license holder. The county or 34.21private agency shall collect and forward to the commissioner the information required 34.22under section 
         245C.05, subdivisions 1 and 5. The background study conducted by the 34.23commissioner of human services under this paragraph must include a review of the 34.24information required under section 
         245C.08, subdivisions 1, 3, and 4.34.25    (f) From January 1, 2010, to December 31, 2012, unless otherwise specified in 34.26paragraph (c), the commissioner shall conduct a study of an individual required to 34.27be studied under section 
         245C.03 at the time of reapplication for an adult foster care 34.28or family adult day services license: (1) the county shall collect and forward to the 34.29commissioner the information required under section 
         245C.05, subdivision 1, paragraphs 34.30(a) and (b), and subdivision 5, paragraphs (a) and (b), for background studies conducted 34.31by the commissioner for all family adult day services and for adult foster care when 34.32the adult foster care license holder resides in the adult foster care or family adult day 34.33services residence; (2) the license holder shall collect and forward to the commissioner 34.34the information required under section 
         245C.05, subdivisions 1, paragraphs (a) and (b); 34.35and 5, paragraphs (a) and (b), for background studies conducted by the commissioner for 34.36adult foster care when the license holder does not reside in the adult foster care residence; 35.1and (3) the background study conducted by the commissioner under this paragraph must 35.2include a review of the information required under section 
         245C.08, subdivision 1, 35.3paragraph (a), clauses (1) to (5), and subdivisions 3 and 4.35.4    (g) The commissioner shall conduct a background study of an individual specified 35.5under section 
         245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly 35.6affiliated with an adult foster care or family adult day services license holder: (1) the 35.7county shall collect and forward to the commissioner the information required under 35.8section 
         245C.05, subdivision 1, paragraphs (a) and (b), and subdivision 5, paragraphs (a) 35.9and (b), for background studies conducted by the commissioner for all family adult day 35.10services and for adult foster care when the adult foster care license holder resides in 35.11the adult foster care residence; (2) the license holder shall collect and forward to the 35.12commissioner the information required under section 
         245C.05, subdivisions 1, paragraphs 35.13(a) and (b); and 5, paragraphs (a) and (b), for background studies conducted by the 35.14commissioner for adult foster care when the license holder does not reside in the adult 35.15foster care residence; and (3) the background study conducted by the commissioner under 35.16this paragraph must include a review of the information required under section 
         245C.08, 35.17subdivision 1
         , paragraph (a), and subdivisions 3 and 4.35.18    (h) Applicants for licensure, license holders, and other entities as provided in this 35.19chapter must submit completed background study forms requests to the commissioner 35.20using the electronic system known as NETStudy before individuals specified in section 35.21245C.03, subdivision 1
         , begin positions allowing direct contact in any licensed program.35.22    (i) A license holder must initiate a new background study through the commissioner's 35.23online background study system NETStudy when:35.24    (1) an individual returns to a position requiring a background study following an 35.25absence of 90 120 or more consecutive days; or35.26    (2) a program that discontinued providing licensed direct contact services for 90 12035.27 or more consecutive days begins to provide direct contact licensed services again.35.28    The license holder shall maintain a copy of the notification provided to 35.29the commissioner under this paragraph in the program's files. If the individual's 35.30disqualification was previously set aside for the license holder's program and the new 35.31background study results in no new information that indicates the individual may pose a 35.32risk of harm to persons receiving services from the license holder, the previous set-aside 35.33shall remain in effect.35.34    (j) For purposes of this section, a physician licensed under chapter 147 is considered 35.35to be continuously affiliated upon the license holder's receipt from the commissioner of 35.36health or human services of the physician's background study results.36.1    (k) For purposes of family child care, a substitute caregiver must receive repeat 36.2background studies at the time of each license renewal.36.3    Subd. 2. Other state agencies. Applicants and license holders under the jurisdiction 36.4of other state agencies who are required in other statutory sections to initiate background 36.5studies under this chapter must submit completed background study forms to the 36.6commissioner before the background study subject begins in a position allowing direct 36.7contact in the licensed program or, where applicable, prior to being employed.36.8    Subd. 3. Personal care provider organizations. (a) The commissioner shall 36.9conduct a background study of an individual required to be studied under section 
         245C.03, 36.10subdivision 2
         , at least upon application for initial enrollment under sections 
         256B.0651 to 36.11256B.0656
          and 
         256B.0659.36.12    (b) Organizations required to initiate background studies under sections 
         256B.065136.13to 
         256B.0656 and 
         256B.0659 for individuals described in section 
         245C.03, subdivision 2, 36.14must submit a completed background study form request to the commissioner using the 36.15electronic system known as NETStudy before those individuals begin a position allowing 36.16direct contact with persons served by the organization.36.17    (c) Organizations required to initiate background studies under sections 256B.0651 36.18to 256B.0656 and 256B.0659 for individuals described in section 245C.03, subdivision 2, 36.19must initiate a new background study through NETStudy when an individual returns to a 36.20position requiring a background study following an absence of 120 or more consecutive 36.21days.36.22    Subd. 4. Supplemental nursing services agencies. (a) The commissioner shall 36.23conduct a background study of an individual required to be studied under section 
         245C.03, 36.24subdivision 3
         , at least upon application for registration under section 
         144A.71, subdivision 36.251
         .36.26    (b) Each supplemental nursing services agency must initiate background studies 36.27using the electronic system known as NETStudy before an individual begins a position 36.28allowing direct contact with persons served by the agency and annually thereafter.36.29    Subd. 4a. Agency background studies. (a) The commissioner shall develop and 36.30implement an electronic process for the regular transfer of new criminal case information 36.31that is added to the Minnesota court information system. The commissioner's system 36.32must include for review only information that relates to individuals who have been the 36.33subject of a background study under this chapter that remain affiliated with the agency 36.34that initiated the background study. For purposes of this paragraph, an individual remains 36.35affiliated with an agency that initiated the background study until the agency informs the 36.36commissioner that the individual is no longer affiliated. When any individual no longer 37.1affiliated according to this paragraph returns to a position requiring a background study 37.2under this chapter, the agency with whom the individual is again affiliated shall initiate 37.3a new background study regardless of the length of time the individual was no longer 37.4affiliated with the agency.37.5    (b) The commissioner shall develop and implement an online system for agencies that 37.6initiate background studies under this chapter to access and maintain records of background 37.7studies initiated by that agency. The system must show all active background study subjects 37.8affiliated with that agency and the status of each individual's background study. Each 37.9agency that initiates background studies must use this system to notify the commissioner 37.10of discontinued affiliation for purposes of the processes required under paragraph (a).37.11    Subd. 5. Personnel agencies; educational programs; professional services 37.12agencies. Agencies, programs, and individuals who initiate background studies under 37.13section 
         245C.03, subdivision 4, must initiate the studies annually using the electronic 37.14system known as NETStudy.37.15    Subd. 6. Unlicensed home and community-based waiver providers of service to 37.16seniors and individuals with disabilities. (a) Providers required to initiate background 37.17studies under section 
         256B.4912 must initiate a study using the electronic system known 37.18as NETStudy before the individual begins in a position allowing direct contact with 37.19persons served by the provider.37.20    (b) Except as provided in paragraph (c), the providers must initiate a background 37.21study annually of an individual required to be studied under section 
         245C.03, subdivision 6.37.22    (c) After an initial background study under this subdivision is initiated on an 37.23individual by a provider of both services licensed by the commissioner and the unlicensed 37.24services under this subdivision, a repeat annual background study is not required if:37.25    (1) the provider maintains compliance with the requirements of section 
         245C.07, 37.26paragraph (a), regarding one individual with one address and telephone number as the 37.27person to receive sensitive background study information for the multiple programs that 37.28depend on the same background study, and that the individual who is designated to receive 37.29the sensitive background information is capable of determining, upon the request of the 37.30commissioner, whether a background study subject is providing direct contact services 37.31in one or more of the provider's programs or services and, if so, at which location or 37.32locations; and37.33    (2) the individual who is the subject of the background study provides direct 37.34contact services under the provider's licensed program for at least 40 hours per year so 37.35the individual will be recognized by a probation officer or corrections agent to prompt 38.1a report to the commissioner regarding criminal convictions as required under section 38.2245C.05, subdivision 7
         .38.3    Subd. 7.New study required with legal name change.(a) For a background study 38.4completed on an individual required to be studied under section 245C.03, the license 38.5holder or other entity that initiated the background study must initiate a new background 38.6study using the electronic system known as NETStudy when an individual who is affiliated 38.7with the license holder or other entity undergoes a legal name change.38.8    (b) For background studies subject to a fee paid through the NETStudy system, the 38.9entity that initiated the study may initiate a new study under paragraph (a) or notify the 38.10commissioner of the name change through a notice to the commissioner.38.11    Sec. 2. Minnesota Statutes 2012, section 245C.05, subdivision 6, is amended to read:38.12    Subd. 6. Applicant, license holder, other entities, and agencies. (a) The applicant, 38.13license holder, other entities as provided in this chapter, Bureau of Criminal Apprehension, 38.14law enforcement agencies, commissioner of health, and county agencies shall help with 38.15the study by giving the commissioner criminal conviction data and reports about the 38.16maltreatment of adults substantiated under section 
         626.557 and the maltreatment of 38.17minors substantiated under section 
         626.556.38.18(b) If a background study is initiated by an applicant, license holder, or other entities 38.19as provided in this chapter, and the applicant, license holder, or other entity receives 38.20information about the possible criminal or maltreatment history of an individual who is 38.21the subject of the background study, the applicant, license holder, or other entity must 38.22immediately provide the information to the commissioner.38.23(c) The program or county or other agency must provide written notice to the 38.24individual who is the subject of the background study of the requirements under this 38.25subdivision.38.26    Sec. 3.  Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is 38.27amended to read:38.28    Subdivision 1. Background studies conducted by Department of Human 38.29Services. (a) For a background study conducted by the Department of Human Services, 38.30the commissioner shall review:38.31    (1) information related to names of substantiated perpetrators of maltreatment of 38.32vulnerable adults that has been received by the commissioner as required under section 38.33626.557, subdivision 9c
         , paragraph (j);39.1    (2) the commissioner's records relating to the maltreatment of minors in licensed 39.2programs, and from findings of maltreatment of minors as indicated through the social 39.3service information system;39.4    (3) information from juvenile courts as required in subdivision 4 for individuals 39.5listed in section 
         245C.03, subdivision 1, paragraph (a), when there is reasonable cause;39.6    (4) information from the Bureau of Criminal Apprehension, including information 39.7regarding a background study subject's registration in Minnesota as a predatory offender 39.8under section 
         243.166;39.9    (5) except as provided in clause (6), information from the national crime information 39.10system when the commissioner has reasonable cause as defined under section 
         245C.05, 39.11subdivision 5; and39.12    (6) for a background study related to a child foster care application for licensure or 39.13adoptions, the commissioner shall also review:39.14    (i) information from the child abuse and neglect registry for any state in which the 39.15background study subject has resided for the past five years; and39.16    (ii) information from national crime information databases, when the background 39.17study subject is 18 years of age or older.39.18    (b) Notwithstanding expungement by a court, the commissioner may consider 39.19information obtained under paragraph (a), clauses (3) and (4), unless the commissioner 39.20received notice of the petition for expungement and the court order for expungement is 39.21directed specifically to the commissioner.39.22    (c) The commissioner shall also review criminal case information received according 39.23to section 
         245C.04, subdivision 4a, from the Minnesota court information system that 39.24relates to individuals who have already been studied under this chapter and who remain 39.25affiliated with the agency that initiated the background study.39.26    (d) When the commissioner has reasonable cause to believe that the identity of 39.27a background study subject is uncertain, the commissioner may require the subject to 39.28provide a set of classifiable fingerprints for purposes of completing a fingerprint-based 39.29record check with the Bureau of Criminal Apprehension. Fingerprints collected under this 39.30paragraph shall not be saved by the commissioner after they have been used to verify the 39.31identity of the background study subject against the particular criminal record in question.39.32    Sec. 4. Minnesota Statutes 2012, section 245C.16, subdivision 1, is amended to read:39.33    Subdivision 1. Determining immediate risk of harm. (a) If the commissioner 39.34determines that the individual studied has a disqualifying characteristic, the commissioner 39.35shall review the information immediately available and make a determination as to the 40.1subject's immediate risk of harm to persons served by the program where the individual 40.2studied will have direct contact with, or access to, people receiving services.40.3    (b) The commissioner shall consider all relevant information available, including the 40.4following factors in determining the immediate risk of harm:40.5    (1) the recency of the disqualifying characteristic;40.6    (2) the recency of discharge from probation for the crimes;40.7    (3) the number of disqualifying characteristics;40.8    (4) the intrusiveness or violence of the disqualifying characteristic;40.9    (5) the vulnerability of the victim involved in the disqualifying characteristic;40.10    (6) the similarity of the victim to the persons served by the program where the 40.11individual studied will have direct contact;40.12    (7) whether the individual has a disqualification from a previous background study 40.13that has not been set aside; and40.14    (8) if the individual has a disqualification which may not be set aside because it is 40.15a permanent bar under section 
         245C.24, subdivision 1, the commissioner may order the 40.16immediate removal of the individual from any position allowing direct contact with, or 40.17access to, persons receiving services from the program.40.18    (c) This section does not apply when the subject of a background study is regulated 40.19by a health-related licensing board as defined in chapter 214, and the subject is determined 40.20to be responsible for substantiated maltreatment under section 
         626.556 or 
         626.557.40.21    (d) This section does not apply to a background study related to an initial application 40.22for a child foster care license.40.23(e) Except for paragraph (f), this section does not apply to a background study that 40.24is also subject to the requirements under section 
         256B.0659, subdivisions 11 and 13, for 40.25a personal care assistant or a qualified professional as defined in section 
         256B.0659, 40.26subdivision 1
         .40.27    (f) If the commissioner has reason to believe, based on arrest information or an 40.28active maltreatment investigation, that an individual poses an imminent risk of harm to 40.29persons receiving services, the commissioner may order that the person be continuously 40.30supervised or immediately removed pending the conclusion of the maltreatment 40.31investigation or criminal proceedings.40.32    Sec. 5. Minnesota Statutes 2012, section 245C.20, subdivision 1, is amended to read:40.33    Subdivision 1. Background studies initiated by program. A licensed program 40.34shall document the date the program initiates a background study under this chapter40.35 and the date the subject of the study first has direct contact with persons served by the 41.1program in the program's personnel files. When a background study is completed under 41.2this chapter, a licensed program shall maintain a notice that the study was undertaken and 41.3completed in the program's personnel files. Except when background studies are initiated 41.4through the commissioner's online system, if a licensed program has not received a 41.5response from the commissioner under section 
         245C.17 within 45 days of initiation of the 41.6background study request, the licensed program must contact the human services licensing 41.7division to inquire about the status of the study. If a license holder initiates a background 41.8study under the commissioner's online system, but the background study subject's name 41.9does not appear in the list of active or recent studies initiated by that license holder, the 41.10license holder must either contact the human services licensing division or resubmit the 41.11background study information online for that individual.41.12    Sec. 6. Minnesota Statutes 2012, section 245C.22, subdivision 1, is amended to read:41.13    Subdivision 1. Time frame; response to disqualification reconsideration 41.14requests. (a) The commissioner shall respond in writing or by electronic transmission to 41.15all reconsideration requests for which the basis for the request is that the information the 41.16commissioner relied upon to disqualify is incorrect or inaccurate within 30 working days 41.17of receipt of a complete request and all required relevant information.41.18(b) If the basis for a disqualified individual's reconsideration request is that the 41.19individual does not pose a risk of harm, the commissioner shall respond to the request 41.20within 15 working days after receiving the a complete request for reconsideration and 41.21all required relevant information.41.22(c) If the disqualified individual's reconsideration request is based on both the 41.23correctness or accuracy of the information the commissioner relied upon to disqualify the 41.24individual and the individual's risk of harm, the commissioner shall respond to the request 41.25within 45 working days after receiving the a complete request for reconsideration and 41.26all required relevant information.41.27    Sec. 7. Minnesota Statutes 2012, section 245C.23, subdivision 2, is amended to read:41.28    Subd. 2. Commissioner's notice of disqualification that is not set aside. (a) The 41.29commissioner shall notify the license holder of the disqualification and order the license 41.30holder to immediately remove the individual from any position allowing direct contact 41.31with persons receiving services from the license holder if:41.32    (1) the individual studied does not submit a timely request for reconsideration 41.33under section 
         245C.21;42.1    (2) the individual submits a timely request for reconsideration, but the commissioner 42.2does not set aside the disqualification for that license holder under section 
         245C.22, unless 42.3the individual has a right to request a hearing under section 245C.27, 245C.28, or 256.045;42.4    (3) an individual who has a right to request a hearing under sections 
         245C.27 and 42.5256.045
         , or 
         245C.28 and chapter 14 for a disqualification that has not been set aside, does 42.6not request a hearing within the specified time; or42.7    (4) an individual submitted a timely request for a hearing under sections 
         245C.27 42.8and 
         256.045, or 
         245C.28 and chapter 14, but the commissioner does not set aside the 42.9disqualification under section 
         245A.08, subdivision 5, or 
         256.045.42.10    (b) If the commissioner does not set aside the disqualification under section 
         245C.22, 42.11and the license holder was previously ordered under section 
         245C.17 to immediately 42.12remove the disqualified individual from direct contact with persons receiving services or 42.13to ensure that the individual is under continuous, direct supervision when providing direct 42.14contact services, the order remains in effect pending the outcome of a hearing under 42.15sections 
         245C.27 and 
         256.045, or 
         245C.28 and chapter 14.42.16(c) If the commissioner does not set aside the disqualification under section 245C.22, 42.17and the license holder was not previously ordered under section 245C.17 to immediately 42.18remove the disqualified individual from direct contact with persons receiving services or 42.19to ensure that the individual is under continuous direct supervision when providing direct 42.20contact services, the commissioner shall order the individual to remain under continuous 42.21direct supervision pending the outcome of a hearing under sections 245C.27 and 256.045, 42.22or 245C.28 and chapter 14.42.23    (c) (d) For background studies related to child foster care, the commissioner shall 42.24also notify the county or private agency that initiated the study of the results of the 42.25reconsideration.42.26(d) (e) For background studies related to adult foster care and family adult day 42.27services, the commissioner shall also notify the county that initiated the study of the 42.28results of the reconsideration.42.29    Sec. 8. Minnesota Statutes 2012, section 245C.28, subdivision 1, is amended to read:42.30    Subdivision 1. License holder. (a) If a maltreatment determination or a 42.31disqualification for which reconsideration was timely requested and which was not set 42.32aside is the basis for a denial of a license under section 
         245A.05 or a licensing sanction 42.33under section 
         245A.07, the license holder has the right to a contested case hearing under 42.34chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The license holder must 42.35submit the appeal under section 
         245A.05 or 
         245A.07, subdivision 3.43.1    (b) As provided under section 
         245A.08, subdivision 2a, if the denial of a license 43.2or licensing sanction is based on a disqualification for which reconsideration was timely 43.3requested and was not set aside, the scope of the consolidated contested case hearing 43.4must include:43.5    (1) the disqualification, to the extent the license holder otherwise has a hearing right 43.6on the disqualification under this chapter; and43.7    (2) the licensing sanction or denial of a license.43.8    (c) As provided for under section 
         245A.08, subdivision 2a, if the denial of a license 43.9or licensing sanction is based on a determination of maltreatment under section 
         626.55643.10or 
         626.557, or a disqualification for serious or recurring maltreatment which was not set 43.11aside, the scope of the contested case hearing must include:43.12    (1) the maltreatment determination, if the maltreatment is not conclusive under 43.13section 
         245C.29;43.14    (2) the disqualification, if the disqualification is not conclusive under section 43.15245C.29
         ; and43.16    (3) the licensing sanction or denial of a license. In such cases, a fair hearing must not 43.17be conducted under section 
         256.045. If the disqualification was based on a determination 43.18of substantiated serious or recurring maltreatment under section 
         626.556 or 
         626.557, the 43.19appeal must be submitted under sections 245A.07, subdivision 3, and 
         626.556, subdivision 43.2010i, or 
         626.557, subdivision 9d.43.21    (d) Except for family child care and child foster care, reconsideration of a 43.22maltreatment determination under sections 
         626.556, subdivision 10i, and 
         626.557, 43.23subdivision 9d, and reconsideration of a disqualification under section 
         245C.22, must 43.24not be conducted when:43.25    (1) a denial of a license under section 
         245A.05, or a licensing sanction under section 43.26245A.07
         , is based on a determination that the license holder is responsible for maltreatment 43.27or the disqualification of a license holder based on serious or recurring maltreatment;43.28    (2) the denial of a license or licensing sanction is issued at the same time as the 43.29maltreatment determination or disqualification; and43.30    (3) the license holder appeals the maltreatment determination, disqualification, and 43.31denial of a license or licensing sanction. In such cases a fair hearing under section 
         256.04543.32must not be conducted under sections 
         245C.27, 
         626.556, subdivision 10i, and 
         626.557, 43.33subdivision 9d. Under section 
         245A.08, subdivision 2a, the scope of the consolidated 43.34contested case hearing must include the maltreatment determination, disqualification, and 43.35denial of a license or licensing sanction.44.1    Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 44.2determination or disqualification, but does not appeal the denial of a license or a licensing 44.3sanction, reconsideration of the maltreatment determination shall be conducted under 44.4sections 
         626.556, subdivision 10i, and 
         626.557, subdivision 9d, and reconsideration of the 44.5disqualification shall be conducted under section 
         245C.22. In such cases, a fair hearing 44.6shall also be conducted as provided under sections 
         245C.27, 
         626.556, subdivision 10i, and 44.7626.557, subdivision 9d
         .44.8    Sec. 9. Minnesota Statutes 2012, section 245C.28, subdivision 3, is amended to read:44.9    Subd. 3. Employees of public employer. (a) A disqualified individual who is an 44.10employee of an employer, as defined in section 
         179A.03, subdivision 15, may request 44.11a contested case hearing under chapter 14, and specifically Minnesota Rules, parts 44.121400.8505 to 1400.8612, following a reconsideration decision under section 
         245C.23, 44.13unless the disqualification is deemed conclusive under section 
         245C.29. The request for a 44.14contested case hearing must be made in writing and must be postmarked and sent within 44.1530 calendar days after the employee receives notice of the reconsideration decision. If 44.16the individual was disqualified based on a conviction or admission to any crimes listed in 44.17section 
         245C.15, the scope of the contested case hearing shall be limited solely to whether 44.18the individual poses a risk of harm pursuant to section 
         245C.22.44.19(b) When an individual is disqualified based on a maltreatment determination, the 44.20scope of the contested case hearing under paragraph (a), must include the maltreatment 44.21determination and the disqualification. In such cases, a fair hearing must not be conducted 44.22under section 
         256.045.44.23(c) Rules adopted under this chapter may not preclude an employee in a contested 44.24case hearing for a disqualification from submitting evidence concerning information 44.25gathered under this chapter.44.26(d) When an individual has been disqualified from multiple licensed programs, if 44.27at least one of the disqualifications entitles the person to a contested case hearing under 44.28this subdivision, the scope of the contested case hearing shall include all disqualifications 44.29from licensed programs.44.30(e) In determining whether the disqualification should be set aside, the administrative 44.31law judge shall consider all of the characteristics that cause the individual to be disqualified, 44.32as well as all the factors set forth in section 245C.22, in order to determine whether the 44.33individual poses has met the burden of demonstrating that the individual does not pose44.34 a risk of harm. The administrative law judge's recommendation and the commissioner's 44.35order to set aside a disqualification that is the subject of the hearing constitutes a 45.1determination that the individual does not pose a risk of harm and that the individual may 45.2provide direct contact services in the individual program specified in the set aside.45.3(f) An individual may not request a contested case hearing under this section if a 45.4contested case hearing has previously been held regarding the individual's disqualification 45.5on the same basis.45.6    Sec. 10. Minnesota Statutes 2012, section 245C.29, subdivision 2, is amended to read:45.7    Subd. 2. Conclusive disqualification determination. (a) Unless otherwise 45.8specified in statute, a determination that:45.9(1) the information the commissioner relied upon to disqualify an individual under 45.10section 245C.14 was correct based on serious or recurring maltreatment;45.11(2) a preponderance of the evidence shows that the individual committed an act or 45.12acts that meet the definition of any of the crimes listed in section 245C.15; or45.13(3) the individual failed to make required reports under section 626.556, subdivision 45.143, or 626.557, subdivision 3, is conclusive if: A disqualification is conclusive for purposes 45.15of current and future background studies if:45.16(i) (1) the commissioner has issued a final order in an appeal of that determination45.17 the disqualification under section 
         245A.08, subdivision 5, 245C.28, subdivision 3, or 45.18256.045
         , or a court has issued a final decision;45.19(ii) (2) the individual did not request reconsideration of the disqualification under 45.20section 
         245C.21 on the basis that the information relied upon to disqualify the individual 45.21was incorrect; or45.22(iii) (3) the individual did not timely request a hearing on the disqualification under 45.23section 256.045 or this chapter,  chapter 14, or section 256.045 after previously being 45.24given the right to do so.45.25(b) When a licensing action under section 
         245A.05, 
         245A.06, or 
         245A.07 is based 45.26on the disqualification of an individual in connection with a license to provide family child 45.27care, foster care for children in the provider's own home, or foster care services for adults 45.28in the provider's own home, that disqualification shall be conclusive for purposes of the 45.29licensing action if a request for reconsideration was not submitted within 30 calendar days 45.30of the individual's receipt of the notice of disqualification.45.31(c) If a determination that the information relied upon to disqualify an individual 45.32was correct and disqualification is conclusive under this section, and the individual is 45.33subsequently disqualified under section 245C.15, the individual has a right to request 45.34reconsideration on the risk of harm under section 
         245C.21 unless the commissioner 45.35is barred from setting aside the disqualification under section 245C.24. Subsequent 46.1determinations The commissioner's decision regarding the risk of harm shall be made 46.2according to section 245C.22 and are not subject to another the final agency decision and 46.3is not subject to a hearing under this chapter, section 256.045 or chapter 14, or section 46.4256.045.46.5    Sec. 11. Minnesota Statutes 2013 Supplement, section 256.045, subdivision 3b, 46.6is amended to read:46.7    Subd. 3b. Standard of evidence for maltreatment and disqualification hearings.46.8    (a) The state human services judge shall determine that maltreatment has occurred if a 46.9preponderance of evidence exists to support the final disposition under sections 
         626.556 46.10and 
         626.557. For purposes of hearings regarding disqualification, the state human 46.11services judge shall affirm the proposed disqualification in an appeal under subdivision 3, 46.12paragraph (a), clause (9), if a preponderance of the evidence shows the individual has:46.13    (1) committed maltreatment under section 
         626.556 or 
         626.557, which is serious or 46.14recurring;46.15    (2) committed an act or acts meeting the definition of any of the crimes listed in 46.16section 
         245C.15, subdivisions 1 to 4; or46.17    (3) failed to make required reports under section 
         626.556 or 
         626.557, for incidents 46.18in which the final disposition under section 
         626.556 or 
         626.557 was substantiated 46.19maltreatment that was serious or recurring.46.20    (b) If the disqualification is affirmed, the state human services judge shall determine 46.21whether the individual poses a risk of harm in accordance with the requirements of 46.22section 
         245C.22, and whether the disqualification should be set aside or not set aside. In 46.23determining whether the disqualification should be set aside, the human services judge shall 46.24consider all of the characteristics that cause the individual to be disqualified, including those 46.25characteristics that were not subject to review under paragraph (a), in order to determine 46.26whether the individual poses a risk of harm. A decision to set aside a disqualification that 46.27is the subject of the hearing constitutes a determination that the individual does not pose a 46.28risk of harm and that the individual may provide direct contact services in the individual 46.29program specified in the set aside. If a determination that the information relied upon to 46.30disqualify an individual was correct and is conclusive under section 245C.29, and the 46.31individual is subsequently disqualified under section 245C.14, the individual has a right 46.32to again request reconsideration on the risk of harm under section 245C.21. Subsequent 46.33determinations regarding risk of harm are not subject to another hearing under this section.47.1    (c) If a disqualification is based solely on a conviction or is conclusive for any 47.2reason under section 245C.29, the disqualified individual does not have a right to a 47.3hearing under this section.47.4    (c) (d) The state human services judge shall recommend an order to the 47.5commissioner of health, education, or human services, as applicable, who shall issue a 47.6final order. The commissioner shall affirm, reverse, or modify the final disposition. Any 47.7order of the commissioner issued in accordance with this subdivision is conclusive upon 47.8the parties unless appeal is taken in the manner provided in subdivision 7. In any licensing 47.9appeal under chapters 245A and 245C and sections 
         144.50 to 
         144.58 and 
         144A.02 to 47.10144A.46
         , the commissioner's determination as to maltreatment is conclusive, as provided 47.11under section 
         245C.29.47.12    Sec. 12. BACKGROUND STUDY REVIEW.47.13(a) The Office of the Legislative Auditor is requested to conduct a review of the 47.14background study provisions contained in Minnesota Statutes, chapter 245C. The review 47.15should include: 47.16(1) the appropriateness of the statutory list of disqualifying crimes and their various 47.17lookback periods;47.18(2) the agency authority to disqualify an individual who has no conviction, but for 47.19whom the commissioner has determined there is a preponderance of the evidence that the 47.20individual committed the disqualifying offense; 47.21(3) the role of expungement in the agency's access to criminal records;47.22(4) the impact and justification for the lifetime bar of some disqualified individuals 47.23based on certain criminal offenses or alleged offenses; 47.24(5) the available and relevant data on the demographics of applicants and those 47.25disqualified, such as race and gender; and47.26(6) set-aside and variance policies. 47.27(b) As part of the review process, the auditor shall collect information from impacted 47.28stakeholders, including individuals who have been disqualified and those who represent 47.29individuals in the background study process. The legislative auditor is requested to submit 47.30the results of the review to the Legislative Audit Commission and the chairs of the senate 47.31and house of representatives policy committees having jurisdiction over the Department 47.32of Human Services background studies activities by January 1, 2015.