1.1 	A bill for an act
1.2 	relating to human services; modifying the procedure for sanctions; modifying 
1.3 	background studies conducted by the Department of Human Services; modifying 
1.4 	definitions; prohibiting prone restraints in licensed or certified facilities; modifying 
1.5 	child care safety provisions; modifying infant safety provisions; modifying foster 
1.6 	care and child care training requirements; making technical changes to Northstar 
1.7 	Care for Children assessment rate effective dates; making technical changes to 
1.8 	relative search requirements and termination of parental rights; making technical 
1.9 	corrections to child support provision;amending Minnesota Statutes 2022, sections 
1.10 	62V.05, subdivision 4a; 122A.18, subdivision 8; 245A.02, subdivisions 5a, 10b, 
1.11 	by adding a subdivision; 245A.04, subdivisions 1, 4, 7; 245A.041, by adding a 
1.12 	subdivision; 245A.05; 245A.07, subdivisions 1, 2a, 3; 245A.10, subdivisions 3, 
1.13 	4; 245A.11, by adding a subdivision; 245A.14, subdivision 4; 245A.1435; 
1.14 	245A.146, subdivision 3; 245A.16, subdivisions 1, 9, by adding a subdivision; 
1.15 	245A.18, subdivision 2; 245A.52, subdivisions 1, 2, 3, 5, by adding subdivisions; 
1.16 	245A.66, by adding a subdivision; 245C.02, subdivisions 6a, 11c, by adding 
1.17 	subdivisions; 245C.03, subdivisions 1, 1a, 4, 5, 5a; 245C.031, subdivisions 1, 4; 
1.18 	245C.05, subdivision 1, by adding a subdivision; 245C.07; 245C.10, subdivision 
1.19 	4; 245C.30, subdivision 2; 245C.31, subdivision 1; 245C.33, subdivision 4; 
1.20 	245E.06, subdivision 3; 245G.13, subdivision 2; 245H.03, by adding a subdivision; 
1.21 	245H.05; 245H.08, subdivisions 4, 5; 245H.13, subdivisions 3, 7, 9; 256.9685, 
1.22 	subdivisions 1a, 1b; 256.9686, by adding a subdivision; 256B.04, subdivision 15; 
1.23 	256B.064; 256B.27, subdivision 3; 256N.24, subdivision 12; 260C.221, subdivision 
1.24 	1; 260C.317, subdivision 3; 518A.43, subdivision 1b; 524.5-118, subdivision 2a; 
1.25 	proposing coding for new law in Minnesota Statutes, chapters 119B; 245A; 
1.26 	repealing Minnesota Statutes 2022, sections 245A.144; 245A.175; 245A.22; 
1.27 	245C.02, subdivision 9; 245C.301; 256.9685, subdivisions 1c, 1d; 256D.63, 
1.28 	subdivision 1; 518A.59; Minnesota Rules, parts 2960.3070; 2960.3210; 9502.0425, 
1.29 	subparts 5, 10; 9505.0505, subpart 18; 9505.0520, subpart 9b.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	HUMAN SERVICES LICENSING AND OFFICE OF INSPECTOR GENERAL 
2.4 	POLICY

2.5 	Section 1. Minnesota Statutes 2022, section 62V.05, subdivision 4a, is amended to read:
2.6 		Subd. 4a.Background study required. (a) The board must initiate background studies 
2.7 	under section 245C.031 of:
2.8 	(1) each navigator;
2.9 	(2) each in-person assister; and
2.10 	(3) each certified application counselor.
2.11 	(b) The board may initiate the background studies required by paragraph (a) using the 
2.12 	online NETStudy 2.0 system operated by the commissioner of human services.
2.13 	(c) The board shall not permit any individual to provide any service or function listed 
2.14 	in paragraph (a) until the board has received notification from the commissioner of human 
2.15 	services indicating that the individual:
2.16 	(1) the board has evaluated any notification received from the commissioner of human 
2.17 	services indicating the individual's potential disqualifications and has determined that the 
2.18 	individual is not disqualified under chapter 245C; or
2.19 	(2) the board has determined that the individual is disqualified, but has received granted
2.20 	a set aside from the board of that disqualification according to sections 245C.22 and 245C.23.
2.21 	(d) The board or its delegate shall review a reconsideration request of an individual in 
2.22 	paragraph (a), including granting a set aside, according to the procedures and criteria in 
2.23 	chapter 245C. The board shall notify the individual and the Department of Human Services 
2.24 	of the board's decision.

2.25 	Sec. 2. [119B.162] RECONSIDERATION OF CORRECTION ORDERS.
2.26 	(a) If a provider believes that the contents of the commissioner's correction order are in 
2.27 	error, the provider may ask the Department of Human Services to reconsider the parts of 
2.28 	the correction order that are alleged to be in error. The request for reconsideration must be 
2.29 	made in writing and must be postmarked and sent to the commissioner within 30 calendar 
2.30 	days from the date the correction order was mailed to the provider, and:
2.31 	(1) specify the parts of the correction order that are alleged to be in error;
3.1 	(2) explain why they are in error; and
3.2 	(3) include documentation to support the allegation of error.
3.3 	(b) A request for reconsideration does not stay any provisions or requirements of the 
3.4 	correction order. The commissioner's disposition of a request for reconsideration is final 
3.5 	and not subject to appeal under chapter 14. The commissioner's decision is appealable by 
3.6 	petition for writ of certiorari under chapter 606.

3.7 	Sec. 3. Minnesota Statutes 2022, section 122A.18, subdivision 8, is amended to read:
3.8 		Subd. 8.Background studies. (a) The Professional Educator Licensing and Standards 
3.9 	Board and the Board of School Administrators must initiate criminal history background 
3.10 	studies of all first-time applicants for educator and administrator licenses under their 
3.11 	jurisdiction. Applicants must include with their licensure applications:
3.12 	(1) an executed criminal history consent form, including fingerprints; and
3.13 	(2) payment to conduct the background study. The Professional Educator Licensing and 
3.14 	Standards Board must deposit payments received under this subdivision in an account in 
3.15 	the special revenue fund. Amounts in the account are annually appropriated to the 
3.16 	Professional Educator Licensing and Standards Board to pay for the costs of background 
3.17 	studies on applicants for licensure.
3.18 	(b) The background study for all first-time teaching applicants for educator licenses 
3.19 	must include a review of information from the Bureau of Criminal Apprehension, including 
3.20 	criminal history data as defined in section 13.87, and must also include a review of the 
3.21 	national criminal records repository. The superintendent of the Bureau of Criminal 
3.22 	Apprehension is authorized to exchange fingerprints with the Federal Bureau of Investigation 
3.23 	for purposes of the criminal history check.
3.24 	(c) The Professional Educator Licensing and Standards Board may initiate criminal 
3.25 	history background studies through the commissioner of human services according to section 
3.26 	245C.031 to obtain background study data required under this chapter.

3.27 	Sec. 4. Minnesota Statutes 2022, section 245A.02, subdivision 5a, is amended to read:
3.28 		Subd. 5a.Controlling individual. (a) "Controlling individual" means an owner of a 
3.29 	program or service provider licensed under this chapter and the following individuals, if 
3.30 	applicable:
4.1 	(1) each officer of the organization, including the chief executive officer and chief 
4.2 	financial officer;
4.3 	(2) the individual designated as the authorized agent under section 245A.04, subdivision 
4.4 	1, paragraph (b);
4.5 	(3) the individual designated as the compliance officer under section 256B.04, subdivision 
4.6 	21, paragraph (g);
4.7 	(4) each managerial official whose responsibilities include the direction of the 
4.8 	management or policies of a program; and
4.9 	(5) the individual designated as the primary provider of care for a special family child 
4.10 	care program under section 245A.14, subdivision 4, paragraph (i).; and
4.11 	(6) the president and treasurer of the board of directors of a nonprofit corporation.
4.12 	(b) Controlling individual does not include:
4.13 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
4.14 	loan and thrift company, investment banking firm, or insurance company unless the entity 
4.15 	operates a program directly or through a subsidiary;
4.16 	(2) an individual who is a state or federal official, or state or federal employee, or a 
4.17 	member or employee of the governing body of a political subdivision of the state or federal 
4.18 	government that operates one or more programs, unless the individual is also an officer, 
4.19 	owner, or managerial official of the program, receives remuneration from the program, or 
4.20 	owns any of the beneficial interests not excluded in this subdivision;
4.21 	(3) an individual who owns less than five percent of the outstanding common shares of 
4.22 	a corporation:
4.23 	(i) whose securities are exempt under section 80A.45, clause (6); or
4.24 	(ii) whose transactions are exempt under section 80A.46, clause (2);
4.25 	(4) an individual who is a member of an organization exempt from taxation under section 
4.26 	290.05, unless the individual is also an officer, owner, or managerial official of the program 
4.27 	or owns any of the beneficial interests not excluded in this subdivision. This clause does 
4.28 	not exclude from the definition of controlling individual an organization that is exempt from 
4.29 	taxation; or
4.30 	(5) an employee stock ownership plan trust, or a participant or board member of an 
4.31 	employee stock ownership plan, unless the participant or board member is a controlling 
4.32 	individual according to paragraph (a).
5.1 	(c) For purposes of this subdivision, "managerial official" means an individual who has 
5.2 	the decision-making authority related to the operation of the program, and the responsibility 
5.3 	for the ongoing management of or direction of the policies, services, or employees of the 
5.4 	program. A site director who has no ownership interest in the program is not considered to 
5.5 	be a managerial official for purposes of this definition.

5.6 	Sec. 5. Minnesota Statutes 2022, section 245A.02, is amended by adding a subdivision to 
5.7 	read:
5.8 		Subd. 5b.Cradleboard. "Cradleboard" means a board or frame on which an infant is 
5.9 	secured using blankets or other material such as fabric or leather sides and laces, and which 
5.10 	often has a frame extending to protect the infant's head. The infant is always placed with 
5.11 	its head facing outward and remains supervised in the cradleboard while sleeping or being 
5.12 	carried.

5.13 	EFFECTIVE DATE. This section is effective January 1, 2024.

5.14 	Sec. 6. Minnesota Statutes 2022, section 245A.02, subdivision 10b, is amended to read:
5.15 		Subd. 10b.Owner. "Owner" means an individual or organization that has a direct or 
5.16 	indirect ownership interest of five percent or more in a program licensed under this chapter. 
5.17 	For purposes of this subdivision, "direct ownership interest" means the possession of equity 
5.18 	in capital, stock, or profits of an organization, and "indirect ownership interest" means a 
5.19 	direct ownership interest in an entity that has a direct or indirect ownership interest in a 
5.20 	licensed program. For purposes of this chapter, "owner of a nonprofit corporation" means 
5.21 	the president and treasurer of the board of directors or, for an entity owned by an employee 
5.22 	stock ownership plan," means the president and treasurer of the entity. A government entity
5.23 	or nonprofit corporation that is issued a license under this chapter shall be designated the 
5.24 	owner.

5.25 	Sec. 7. Minnesota Statutes 2022, section 245A.04, subdivision 1, is amended to read:
5.26 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
5.27 	entity that is subject to licensure under section 245A.03 must apply for a license. The 
5.28 	application must be made on the forms and in the manner prescribed by the commissioner. 
5.29 	The commissioner shall provide the applicant with instruction in completing the application 
5.30 	and provide information about the rules and requirements of other state agencies that affect 
5.31 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
5.32 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
6.1 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
6.2 	this chapter that is owned by another license holder must apply for a license under this 
6.3 	chapter and comply with the application procedures in this section and section 245A.03
6.4 	245A.043.
6.5 	The commissioner shall act on the application within 90 working days after a complete 
6.6 	application and any required reports have been received from other state agencies or 
6.7 	departments, counties, municipalities, or other political subdivisions. The commissioner 
6.8 	shall not consider an application to be complete until the commissioner receives all of the 
6.9 	required information.
6.10 	When the commissioner receives an application for initial licensure that is incomplete 
6.11 	because the applicant failed to submit required documents or that is substantially deficient 
6.12 	because the documents submitted do not meet licensing requirements, the commissioner 
6.13 	shall provide the applicant written notice that the application is incomplete or substantially 
6.14 	deficient. In the written notice to the applicant the commissioner shall identify documents 
6.15 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
6.16 	that is substantially complete. An applicant's failure to submit a substantially complete 
6.17 	application after receiving notice from the commissioner is a basis for license denial under 
6.18 	section 245A.05.
6.19 	(b) An application for licensure must identify all controlling individuals as defined in 
6.20 	section 245A.02, subdivision 5a, and must designate one individual to be the authorized 
6.21 	agent. The application must be signed by the authorized agent and must include the authorized 
6.22 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
6.23 	application for licensure, the authorized agent consents to electronic communication with 
6.24 	the commissioner throughout the application process. The authorized agent must be 
6.25 	authorized to accept service on behalf of all of the controlling individuals. A government 
6.26 	entity that holds multiple licenses under this chapter may designate one authorized agent 
6.27 	for all licenses issued under this chapter or may designate a different authorized agent for 
6.28 	each license. Service on the authorized agent is service on all of the controlling individuals. 
6.29 	It is not a defense to any action arising under this chapter that service was not made on each 
6.30 	controlling individual. The designation of a controlling individual as the authorized agent 
6.31 	under this paragraph does not affect the legal responsibility of any other controlling individual 
6.32 	under this chapter.
6.33 	(c) An applicant or license holder must have a policy that prohibits license holders, 
6.34 	employees, subcontractors, and volunteers, when directly responsible for persons served 
6.35 	by the program, from abusing prescription medication or being in any manner under the 
7.1 	influence of a chemical that impairs the individual's ability to provide services or care. The 
7.2 	license holder must train employees, subcontractors, and volunteers about the program's 
7.3 	drug and alcohol policy.
7.4 	(d) An applicant and license holder must have a program grievance procedure that permits 
7.5 	persons served by the program and their authorized representatives to bring a grievance to 
7.6 	the highest level of authority in the program.
7.7 	(e) The commissioner may limit communication during the application process to the 
7.8 	authorized agent or the controlling individuals identified on the license application and for 
7.9 	whom a background study was initiated under chapter 245C. The commissioner may require 
7.10 	the applicant, except for child foster care, to demonstrate competence in the applicable 
7.11 	licensing requirements by successfully completing a written examination. The commissioner 
7.12 	may develop a prescribed written examination format.
7.13 	(f) When an applicant is an individual, the applicant must provide:
7.14 	(1) the applicant's taxpayer identification numbers including the Social Security number 
7.15 	or Minnesota tax identification number, and federal employer identification number if the 
7.16 	applicant has employees;
7.17 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
7.18 	of state that includes the complete business name, if any;
7.19 	(3) if doing business under a different name, the doing business as (DBA) name, as 
7.20 	registered with the secretary of state;
7.21 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
7.22 	Minnesota Provider Identifier (UMPI) number; and
7.23 	(5) at the request of the commissioner, the notarized signature of the applicant or 
7.24 	authorized agent.
7.25 	(g) When an applicant is an organization, the applicant must provide:
7.26 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
7.27 	identification number and federal employer identification number;
7.28 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
7.29 	of state that includes the complete business name, and if doing business under a different 
7.30 	name, the doing business as (DBA) name, as registered with the secretary of state;
7.31 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
7.32 	individuals, including all officers, owners, and managerial officials as defined in section 
8.1 	245A.02, subdivision 5a, and the date that the background study was initiated by the applicant 
8.2 	for each controlling individual;
8.3 	(4) if applicable, the applicant's NPI number and UMPI number;
8.4 	(5) the documents that created the organization and that determine the organization's 
8.5 	internal governance and the relations among the persons that own the organization, have 
8.6 	an interest in the organization, or are members of the organization, in each case as provided 
8.7 	or authorized by the organization's governing statute, which may include a partnership 
8.8 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
8.9 	or comparable documents as provided in the organization's governing statute; and
8.10 	(6) the notarized signature of the applicant or authorized agent.
8.11 	(h) When the applicant is a government entity, the applicant must provide:
8.12 	(1) the name of the government agency, political subdivision, or other unit of government 
8.13 	seeking the license and the name of the program or services that will be licensed;
8.14 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
8.15 	identification number and federal employer identification number;
8.16 	(3) a letter signed by the manager, administrator, or other executive of the government 
8.17 	entity authorizing the submission of the license application; and
8.18 	(4) if applicable, the applicant's NPI number and UMPI number.
8.19 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
8.20 	applicant or license holder must acknowledge on the form provided by the commissioner 
8.21 	if the applicant or license holder elects to receive any public funding reimbursement from 
8.22 	the commissioner for services provided under the license that:
8.23 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
8.24 	or registration requirements for receipt of public funding may be monitored by the 
8.25 	commissioner as part of a licensing investigation or licensing inspection; and
8.26 	(2) noncompliance with the provider enrollment agreement or registration requirements 
8.27 	for receipt of public funding that is identified through a licensing investigation or licensing 
8.28 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
8.29 	reimbursement for a service, may result in:
8.30 	(i) a correction order or a conditional license under section 245A.06, or sanctions under 
8.31 	section 245A.07;
9.1 	(ii) nonpayment of claims submitted by the license holder for public program 
9.2 	reimbursement;
9.3 	(iii) recovery of payments made for the service;
9.4 	(iv) disenrollment in the public payment program; or
9.5 	(v) other administrative, civil, or criminal penalties as provided by law.

9.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.7 	Sec. 8. Minnesota Statutes 2022, section 245A.04, subdivision 4, is amended to read:
9.8 		Subd. 4.Inspections; waiver. (a) Before issuing a license under this chapter, the 
9.9 	commissioner shall conduct an inspection of the program. The inspection must include but 
9.10 	is not limited to:
9.11 	(1) an inspection of the physical plant;
9.12 	(2) an inspection of records and documents;
9.13 	(3) observation of the program in operation; and
9.14 	(4) an inspection for the health, safety, and fire standards in licensing requirements for 
9.15 	a child care license holder.
9.16 	(b) The observation in paragraph (a), clause (3), is not required prior to issuing a license 
9.17 	under subdivision 7. If the commissioner issues a license under this chapter, these 
9.18 	requirements must be completed within one year after the issuance of the license.
9.19 	(c) Before completing a licensing inspection in a family child care program or child care 
9.20 	center, the licensing agency must offer the license holder an exit interview to discuss 
9.21 	violations or potential violations of law or rule observed during the inspection and offer 
9.22 	technical assistance on how to comply with applicable laws and rules. The commissioner 
9.23 	shall not issue a correction order or negative licensing action for violations of law or rule 
9.24 	not discussed in an exit interview, unless a license holder chooses not to participate in an 
9.25 	exit interview or not to complete the exit interview. If the license holder is unable to complete 
9.26 	the exit interview, the licensing agency must offer an alternate time for the license holder 
9.27 	to complete the exit interview.
9.28 	(d) If a family child care license holder disputes a county licensor's interpretation of a 
9.29 	licensing requirement during a licensing inspection or exit interview, the license holder 
9.30 	may, within five business days after the exit interview or licensing inspection, request 
9.31 	clarification from the commissioner, in writing, in a manner prescribed by the commissioner. 
10.1 	The license holder's request must describe the county licensor's interpretation of the licensing 
10.2 	requirement at issue, and explain why the license holder believes the county licensor's 
10.3 	interpretation is inaccurate. The commissioner and the county must include the license 
10.4 	holder in all correspondence regarding the disputed interpretation, and must provide an 
10.5 	opportunity for the license holder to contribute relevant information that may impact the 
10.6 	commissioner's decision. The county licensor must not issue a correction order related to 
10.7 	the disputed licensing requirement until the commissioner has provided clarification to the 
10.8 	license holder about the licensing requirement.
10.9 	(e) The commissioner or the county shall inspect at least annually once each calendar 
10.10 	year a child care provider licensed under this chapter and Minnesota Rules, chapter 9502
10.11 	or 9503, for compliance with applicable licensing standards.
10.12 	(f) No later than November 19, 2017, the commissioner shall make publicly available 
10.13 	on the department's website the results of inspection reports of all child care providers 
10.14 	licensed under this chapter and under Minnesota Rules, chapter 9502 or 9503, and the 
10.15 	number of deaths, serious injuries, and instances of substantiated child maltreatment that 
10.16 	occurred in licensed child care settings each year.

10.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.18 	Sec. 9. Minnesota Statutes 2022, section 245A.04, subdivision 7, is amended to read:
10.19 		Subd. 7.Grant of license; license extension. (a) If the commissioner determines that 
10.20 	the program complies with all applicable rules and laws, the commissioner shall issue a 
10.21 	license consistent with this section or, if applicable, a temporary change of ownership license 
10.22 	under section 245A.043. At minimum, the license shall state:
10.23 	(1) the name of the license holder;
10.24 	(2) the address of the program;
10.25 	(3) the effective date and expiration date of the license;
10.26 	(4) the type of license;
10.27 	(5) the maximum number and ages of persons that may receive services from the program; 
10.28 	and
10.29 	(6) any special conditions of licensure.
10.30 	(b) The commissioner may issue a license for a period not to exceed two years if:
11.1 	(1) the commissioner is unable to conduct the evaluation or observation required by 
11.2 	subdivision 4, paragraph (a), clause (4) (3), because the program is not yet operational;
11.3 	(2) certain records and documents are not available because persons are not yet receiving 
11.4 	services from the program; and
11.5 	(3) the applicant complies with applicable laws and rules in all other respects.
11.6 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
11.7 	or persons will be placed or cared for in the licensed program.
11.8 	(d) Except as provided in paragraphs (f) and (g), the commissioner shall not issue or 
11.9 	reissue a license if the applicant, license holder, or controlling individual has:
11.10 	(1) been disqualified and the disqualification was not set aside and no variance has been 
11.11 	granted;
11.12 	(2) been denied a license under this chapter, within the past two years;
11.13 	(3) had a license issued under this chapter revoked within the past five years;
11.14 	(4) an outstanding debt related to a license fee, licensing fine, or settlement agreement 
11.15 	for which payment is delinquent; or
11.16 	(5) failed to submit the information required of an applicant under subdivision 1, 
11.17 	paragraph (f) or, (g), or (h), after being requested by the commissioner.
11.18 	When a license issued under this chapter is revoked under clause (1) or (3), the license 
11.19 	holder and controlling individual may not hold any license under chapter 245A for five 
11.20 	years following the revocation, and other licenses held by the applicant, license holder, or 
11.21 	controlling individual shall also be revoked.
11.22 	(e) The commissioner shall not issue or reissue a license under this chapter if an individual 
11.23 	living in the household where the services will be provided as specified under section 
11.24 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
11.25 	and no variance has been granted.
11.26 	(f) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued 
11.27 	under this chapter has been suspended or revoked and the suspension or revocation is under 
11.28 	appeal, the program may continue to operate pending a final order from the commissioner. 
11.29 	If the license under suspension or revocation will expire before a final order is issued, a 
11.30 	temporary provisional license may be issued provided any applicable license fee is paid 
11.31 	before the temporary provisional license is issued.
12.1 	(g) Notwithstanding paragraph (f), when a revocation is based on the disqualification 
12.2 	of a controlling individual or license holder, and the controlling individual or license holder 
12.3 	is ordered under section 245C.17 to be immediately removed from direct contact with 
12.4 	persons receiving services or is ordered to be under continuous, direct supervision when 
12.5 	providing direct contact services, the program may continue to operate only if the program 
12.6 	complies with the order and submits documentation demonstrating compliance with the 
12.7 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
12.8 	if the disqualification is not set aside and no variance is granted, the order to immediately 
12.9 	remove the individual from direct contact or to be under continuous, direct supervision 
12.10 	remains in effect pending the outcome of a hearing and final order from the commissioner.
12.11 	(h) For purposes of reimbursement for meals only, under the Child and Adult Care Food 
12.12 	Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, part 226, 
12.13 	relocation within the same county by a licensed family day care provider, shall be considered 
12.14 	an extension of the license for a period of no more than 30 calendar days or until the new 
12.15 	license is issued, whichever occurs first, provided the county agency has determined the 
12.16 	family day care provider meets licensure requirements at the new location.
12.17 	(i) Unless otherwise specified by statute, all licenses issued under this chapter expire at 
12.18 	12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
12.19 	apply for and be granted a new license to operate the program or the program must not be 
12.20 	operated after the expiration date.
12.21 	(j) The commissioner shall not issue or reissue a license under this chapter if it has been 
12.22 	determined that a tribal licensing authority has established jurisdiction to license the program 
12.23 	or service.

12.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

12.25 	Sec. 10. Minnesota Statutes 2022, section 245A.041, is amended by adding a subdivision 
12.26 	to read:
12.27 		Subd. 6.First date of direct contact; documentation requirements. Except for family 
12.28 	child care, family foster care for children, and family adult day services that the license 
12.29 	holder provides in the license holder's residence, license holders must document the first 
12.30 	date that a background study subject has direct contact, as defined in section 245C.02, 
12.31 	subdivision 11, with a person served by the license holder's program. Unless this chapter 
12.32 	otherwise requires, if the license holder does not maintain the documentation required by 
12.33 	this subdivision in the license holder's personnel files, the license holder must provide the 
12.34 	documentation to the commissioner upon the commissioner's request.

13.1 	EFFECTIVE DATE. This section is effective January 1, 2024.

13.2 	Sec. 11. Minnesota Statutes 2022, section 245A.05, is amended to read:
13.3 	245A.05 DENIAL OF APPLICATION.
13.4 	(a) The commissioner may deny a license if an applicant or controlling individual:
13.5 	(1) fails to submit a substantially complete application after receiving notice from the 
13.6 	commissioner under section 245A.04, subdivision 1;
13.7 	(2) fails to comply with applicable laws or rules;
13.8 	(3) knowingly withholds relevant information from or gives false or misleading 
13.9 	information to the commissioner in connection with an application for a license or during 
13.10 	an investigation;
13.11 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
13.12 	variance has been granted;
13.13 	(5) has an individual living in the household who received a background study under 
13.14 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
13.15 	has not been set aside under section 245C.22, and no variance has been granted;
13.16 	(6) is associated with an individual who received a background study under section 
13.17 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
13.18 	children or vulnerable adults, and who has a disqualification that has not been set aside 
13.19 	under section 245C.22, and no variance has been granted;
13.20 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
13.21 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
13.22 	6;
13.23 	(9) has a history of noncompliance as a license holder or controlling individual with 
13.24 	applicable laws or rules, including but not limited to this chapter and chapters 119B and 
13.25 	245C;
13.26 	(10) is prohibited from holding a license according to section 245.095; or
13.27 	(11) for a family foster setting, has or has an individual who is living in the household 
13.28 	where the licensed services are provided or is otherwise subject to a background study who
13.29 	has nondisqualifying background study information, as described in section 245C.05, 
13.30 	subdivision 4, that reflects on the individual's applicant's ability to safely provide care to 
13.31 	foster children.
14.1 	(b) An applicant whose application has been denied by the commissioner must be given 
14.2 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
14.3 	must be given by certified mail or personal service. The notice must state the reasons the 
14.4 	application was denied and must inform the applicant of the right to a contested case hearing 
14.5 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The applicant may 
14.6 	appeal the denial by notifying the commissioner in writing by certified mail or personal 
14.7 	service. If mailed, the appeal must be postmarked and sent to the commissioner within 20 
14.8 	calendar days after the applicant received the notice of denial. If an appeal request is made 
14.9 	by personal service, it must be received by the commissioner within 20 calendar days after 
14.10 	the applicant received the notice of denial. Section 245A.08 applies to hearings held to 
14.11 	appeal the commissioner's denial of an application.

14.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

14.13 	Sec. 12. Minnesota Statutes 2022, section 245A.07, subdivision 1, is amended to read:
14.14 		Subdivision 1.Sanctions; appeals; license. (a) In addition to making a license conditional 
14.15 	under section 245A.06, the commissioner may suspend or revoke the license, impose a fine, 
14.16 	or secure an injunction against the continuing operation of the program of a license holder 
14.17 	who:
14.18 	(1) does not comply with applicable law or rule, or who;
14.19 	(2) has nondisqualifying background study information, as described in section 245C.05, 
14.20 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
14.21 	children; or
14.22 	(3) has an individual living in the household where the licensed services are provided 
14.23 	or is otherwise subject to a background study and the individual has nondisqualifying 
14.24 	background study information, as described in section 245C.05, subdivision 4, that reflects 
14.25 	on the license holder's ability to safely provide care to foster children.
14.26 	When applying sanctions authorized under this section, the commissioner shall consider 
14.27 	the nature, chronicity, or severity of the violation of law or rule and the effect of the violation 
14.28 	on the health, safety, or rights of persons served by the program.
14.29 	(b) If a license holder appeals the suspension or revocation of a license and the license 
14.30 	holder continues to operate the program pending a final order on the appeal, the commissioner 
14.31 	shall issue the license holder a temporary provisional license. Unless otherwise specified 
14.32 	by the commissioner, variances in effect on the date of the license sanction under appeal 
14.33 	continue under the temporary provisional license. If a license holder fails to comply with 
15.1 	applicable law or rule while operating under a temporary provisional license, the 
15.2 	commissioner may impose additional sanctions under this section and section 245A.06, and 
15.3 	may terminate any prior variance. If a temporary provisional license is set to expire, a new 
15.4 	temporary provisional license shall be issued to the license holder upon payment of any fee 
15.5 	required under section 245A.10. The temporary provisional license shall expire on the date 
15.6 	the final order is issued. If the license holder prevails on the appeal, a new nonprovisional 
15.7 	license shall be issued for the remainder of the current license period.
15.8 	(c) If a license holder is under investigation and the license issued under this chapter is 
15.9 	due to expire before completion of the investigation, the program shall be issued a new 
15.10 	license upon completion of the reapplication requirements and payment of any applicable 
15.11 	license fee. Upon completion of the investigation, a licensing sanction may be imposed 
15.12 	against the new license under this section, section 245A.06, or 245A.08.
15.13 	(d) Failure to reapply or closure of a license issued under this chapter by the license 
15.14 	holder prior to the completion of any investigation shall not preclude the commissioner 
15.15 	from issuing a licensing sanction under this section or section 245A.06 at the conclusion 
15.16 	of the investigation.

15.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

15.18 	Sec. 13. Minnesota Statutes 2022, section 245A.07, subdivision 2a, is amended to read:
15.19 		Subd. 2a.Immediate suspension expedited hearing. (a) Within five working days of 
15.20 	receipt of the license holder's timely appeal, the commissioner shall request assignment of 
15.21 	an administrative law judge. The request must include a proposed date, time, and place of 
15.22 	a hearing. A hearing must be conducted by an administrative law judge within 30 calendar 
15.23 	days of the request for assignment, unless an extension is requested by either party and 
15.24 	granted by the administrative law judge for good cause. The commissioner shall issue a 
15.25 	notice of hearing by certified mail or personal service at least ten working days before the 
15.26 	hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary 
15.27 	immediate suspension should remain in effect pending the commissioner's final order under 
15.28 	section 245A.08, regarding a licensing sanction issued under subdivision 3 following the 
15.29 	immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the 
15.30 	burden of proof in expedited hearings under this subdivision shall be limited to the 
15.31 	commissioner's demonstration that reasonable cause exists to believe that the license holder's 
15.32 	actions or failure to comply with applicable law or rule poses, or the actions of other 
15.33 	individuals or conditions in the program poses an imminent risk of harm to the health, safety, 
15.34 	or rights of persons served by the program. "Reasonable cause" means there exist specific 
16.1 	articulable facts or circumstances which provide the commissioner with a reasonable 
16.2 	suspicion that there is an imminent risk of harm to the health, safety, or rights of persons 
16.3 	served by the program. When the commissioner has determined there is reasonable cause 
16.4 	to order the temporary immediate suspension of a license based on a violation of safe sleep 
16.5 	requirements, as defined in section 245A.1435, the commissioner is not required to 
16.6 	demonstrate that an infant died or was injured as a result of the safe sleep violations. For 
16.7 	suspensions under subdivision 2, paragraph (a), clause (2), the burden of proof in expedited 
16.8 	hearings under this subdivision shall be limited to the commissioner's demonstration by a 
16.9 	preponderance of the evidence that, since the license was revoked, the license holder 
16.10 	committed additional violations of law or rule which may adversely affect the health or 
16.11 	safety of persons served by the program.
16.12 	(b) The administrative law judge shall issue findings of fact, conclusions, and a 
16.13 	recommendation within ten working days from the date of hearing. The parties shall have 
16.14 	ten calendar days to submit exceptions to the administrative law judge's report. The record 
16.15 	shall close at the end of the ten-day period for submission of exceptions. The commissioner's 
16.16 	final order shall be issued within ten working days from the close of the record. When an 
16.17 	appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner 
16.18 	shall issue a final order affirming the temporary immediate suspension within ten calendar 
16.19 	days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days 
16.20 	after an immediate suspension has been issued and the license holder has not submitted a 
16.21 	timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final 
16.22 	order affirming an immediate suspension, the commissioner shall make a determination 
16.23 	regarding determine:
16.24 	(1) whether a final licensing sanction shall be issued under subdivision 3, paragraph (a), 
16.25 	clauses (1) to (6). The license holder shall continue to be prohibited from operation of the 
16.26 	program during this 90-day period.; or
16.27 	(2) whether the outcome of related, ongoing investigations or judicial proceedings are 
16.28 	necessary to determine if a final licensing sanction under subdivision 3, paragraph (a), 
16.29 	clauses (1) to (6), will be issued, and persons served by the program remain at an imminent 
16.30 	risk of harm during the investigation period or proceedings. If so, the commissioner shall 
16.31 	issue a suspension order under subdivision 3, paragraph (a), clause (7).
16.32 	(c) When the final order under paragraph (b) affirms an immediate suspension or the 
16.33 	license holder does not submit a timely appeal of the immediate suspension, and a final 
16.34 	licensing sanction is issued under subdivision 3 and the license holder appeals that sanction, 
16.35 	the license holder continues to be prohibited from operation of the program pending a final 
17.1 	commissioner's order under section 245A.08, subdivision 5, regarding the final licensing 
17.2 	sanction.
17.3 	(d) The license holder shall continue to be prohibited from operation of the program 
17.4 	while a suspension order issued under paragraph (b), clause (2), remains in effect.
17.5 	(d) (e) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of 
17.6 	proof in expedited hearings under this subdivision shall be limited to the commissioner's 
17.7 	demonstration by a preponderance of the evidence that a criminal complaint and warrant 
17.8 	or summons was issued for the license holder that was not dismissed, and that the criminal 
17.9 	charge is an offense that involves fraud or theft against a program administered by the 
17.10 	commissioner.

17.11 	Sec. 14. Minnesota Statutes 2022, section 245A.07, subdivision 3, is amended to read:
17.12 		Subd. 3.License suspension, revocation, or fine. (a) The commissioner may suspend 
17.13 	or revoke a license, or impose a fine if:
17.14 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
17.15 	limited to the requirements of this chapter and chapter 245C;
17.16 	(2) a license holder, a controlling individual, or an individual living in the household 
17.17 	where the licensed services are provided or is otherwise subject to a background study has 
17.18 	been disqualified and the disqualification was not set aside and no variance has been granted;
17.19 	(3) a license holder knowingly withholds relevant information from or gives false or 
17.20 	misleading information to the commissioner in connection with an application for a license, 
17.21 	in connection with the background study status of an individual, during an investigation, 
17.22 	or regarding compliance with applicable laws or rules;
17.23 	(4) a license holder is excluded from any program administered by the commissioner 
17.24 	under section 245.095; or
17.25 	(5) revocation is required under section 245A.04, subdivision 7, paragraph (d);
17.26 	(6) for a family foster setting, a license holder, or an individual living in the household 
17.27 	where the licensed services are provided or who is otherwise subject to a background study 
17.28 	has nondisqualifying background study information, as described in section 245C.05, 
17.29 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
17.30 	children.; or
17.31 	(7) suspension is necessary under subdivision 2a, paragraph (b), clause (2).
18.1 	A license holder who has had a license issued under this chapter suspended, revoked, or 
18.2 	has been ordered to pay a fine must be given notice of the action by certified mail or personal 
18.3 	service. If mailed, the notice must be mailed to the address shown on the application or the 
18.4 	last known address of the license holder. The notice must state in plain language the reasons 
18.5 	the license was suspended or revoked, or a fine was ordered.
18.6 	(b) If the license was suspended or revoked, the notice must inform the license holder 
18.7 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
18.8 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
18.9 	a license. The appeal of an order suspending or revoking a license must be made in writing 
18.10 	by certified mail or personal service. If mailed, the appeal must be postmarked and sent to 
18.11 	the commissioner within ten calendar days after the license holder receives notice that the 
18.12 	license has been suspended or revoked. If a request is made by personal service, it must be 
18.13 	received by the commissioner within ten calendar days after the license holder received the 
18.14 	order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits a 
18.15 	timely appeal of an order suspending or revoking a license, the license holder may continue 
18.16 	to operate the program as provided in section 245A.04, subdivision 7, paragraphs (f) and 
18.17 	(g), until the commissioner issues a final order on the suspension or revocation.
18.18 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
18.19 	holder of the responsibility for payment of fines and the right to a contested case hearing 
18.20 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
18.21 	order to pay a fine must be made in writing by certified mail or personal service. If mailed, 
18.22 	the appeal must be postmarked and sent to the commissioner within ten calendar days after 
18.23 	the license holder receives notice that the fine has been ordered. If a request is made by 
18.24 	personal service, it must be received by the commissioner within ten calendar days after 
18.25 	the license holder received the order.
18.26 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
18.27 	If the license holder fails to fully comply with the order, the commissioner may issue a 
18.28 	second fine or suspend the license until the license holder complies. If the license holder 
18.29 	receives state funds, the state, county, or municipal agencies or departments responsible for 
18.30 	administering the funds shall withhold payments and recover any payments made while the 
18.31 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
18.32 	until the commissioner issues a final order.
18.33 	(3) A license holder shall promptly notify the commissioner of human services, in writing, 
18.34 	when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the 
18.35 	commissioner determines that a violation has not been corrected as indicated by the order 
19.1 	to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify 
19.2 	the license holder by certified mail or personal service that a second fine has been assessed. 
19.3 	The license holder may appeal the second fine as provided under this subdivision.
19.4 	(4) Fines shall be assessed as follows:
19.5 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
19.6 	child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 
19.7 	for which the license holder is determined responsible for the maltreatment under section 
19.8 	260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
19.9 	(ii) if the commissioner determines that a determination of maltreatment for which the 
19.10 	license holder is responsible is the result of maltreatment that meets the definition of serious 
19.11 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
19.12 	$5,000;
19.13 	(iii) for a program that operates out of the license holder's home and a program licensed 
19.14 	under Minnesota Rules, parts 9502.0300 to 9502.0445, the fine assessed against the license 
19.15 	holder shall not exceed $1,000 for each determination of maltreatment;
19.16 	(iv) the license holder shall forfeit $200 for each occurrence of a violation of law or rule 
19.17 	governing matters of health, safety, or supervision, including but not limited to the provision 
19.18 	of adequate staff-to-child or adult ratios, and failure to comply with background study 
19.19 	requirements under chapter 245C; and
19.20 	(v) the license holder shall forfeit $100 for each occurrence of a violation of law or rule 
19.21 	other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).
19.22 	For purposes of this section, "occurrence" means each violation identified in the 
19.23 	commissioner's fine order. Fines assessed against a license holder that holds a license to 
19.24 	provide home and community-based services, as identified in section 245D.03, subdivision 
19.25 	1, and a community residential setting or day services facility license under chapter 245D 
19.26 	where the services are provided, may be assessed against both licenses for the same 
19.27 	occurrence, but the combined amount of the fines shall not exceed the amount specified in 
19.28 	this clause for that occurrence.
19.29 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
19.30 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
19.31 	license holder will be personally liable for payment. In the case of a corporation, each 
19.32 	controlling individual is personally and jointly liable for payment.
20.1 	(d) Except for background study violations involving the failure to comply with an order 
20.2 	to immediately remove an individual or an order to provide continuous, direct supervision, 
20.3 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
20.4 	violation to a license holder who self-corrects a background study violation before the 
20.5 	commissioner discovers the violation. A license holder who has previously exercised the 
20.6 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
20.7 	a fine for a subsequent background study violation unless at least 365 days have passed 
20.8 	since the license holder self-corrected the earlier background study violation.

20.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

20.10 	Sec. 15. Minnesota Statutes 2022, section 245A.10, subdivision 3, is amended to read:
20.11 		Subd. 3.Application fee for initial license or certification. (a) For fees required under 
20.12 	subdivision 1, an applicant for an initial license or certification issued by the commissioner 
20.13 	shall submit a $500 application fee with each new application required under this subdivision. 
20.14 	An applicant for an initial day services facility license under chapter 245D shall submit a 
20.15 	$250 application fee with each new application. The application fee shall not be prorated, 
20.16 	is nonrefundable, and is in lieu of the annual license or certification fee that expires on 
20.17 	December 31. The commissioner shall not process an application until the application fee 
20.18 	is paid.
20.19 	(b) Except as provided in clauses (1) to (3) and (2), an applicant shall apply for a license 
20.20 	to provide services at a specific location.
20.21 	(1) For a license to provide home and community-based services to persons with 
20.22 	disabilities or age 65 and older under chapter 245D, an applicant shall submit an application 
20.23 	to provide services statewide. Notwithstanding paragraph (a), applications received by the 
20.24 	commissioner between July 1, 2013, and December 31, 2013, for licensure of services 
20.25 	provided under chapter 245D must include an application fee that is equal to the annual 
20.26 	license renewal fee under subdivision 4, paragraph (b), or $500, whichever is less. 
20.27 	Applications received by the commissioner after January 1, 2014, must include the application 
20.28 	fee required under paragraph (a). Applicants who meet the modified application criteria 
20.29 	identified in section 245A.042, subdivision 2, are exempt from paying an application fee.
20.30 	(2) For a license to provide independent living assistance for youth under section 245A.22, 
20.31 	an applicant shall submit a single application to provide services statewide.
21.1 	(3) (2) For a license for a private agency to provide foster care or adoption services under 
21.2 	Minnesota Rules, parts 9545.0755 to 9545.0845, an applicant shall submit a single application 
21.3 	to provide services statewide.
21.4 	(c) The initial application fee charged under this subdivision does not include the 
21.5 	temporary license surcharge under section 16E.22.

21.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.7 	Sec. 16. Minnesota Statutes 2022, section 245A.10, subdivision 4, is amended to read:
21.8 		Subd. 4.License or certification fee for certain programs. (a) Child care centers shall 
21.9 	pay an annual nonrefundable license fee based on the following schedule:

21.1121.10
		Licensed Capacity
	Child Care Center
License Fee
	
21.12		1 to 24 persons
	$200
	
21.13		25 to 49 persons
	$300
	
21.14		50 to 74 persons
	$400
	
21.15		75 to 99 persons
	$500
	
21.16		100 to 124 persons
	$600
	
21.17		125 to 149 persons
	$700
	
21.18		150 to 174 persons
	$800
	
21.19		175 to 199 persons
	$900
	
21.20		200 to 224 persons
	$1,000
	
21.21		225 or more persons
	$1,100
	
21.22 	(b)(1) A program licensed to provide one or more of the home and community-based 
21.23 	services and supports identified under chapter 245D to persons with disabilities or age 65 
21.24 	and older, shall pay an annual nonrefundable license fee based on revenues derived from 
21.25 	the provision of services that would require licensure under chapter 245D during the calendar 
21.26 	year immediately preceding the year in which the license fee is paid, according to the 
21.27 	following schedule:

21.28	License Holder Annual Revenue
		License Fee
	
21.29	less than or equal to $10,000
		$200
	
21.30
21.31	greater than $10,000 but less than or 
equal to $25,000
		$300
	
21.32
21.33	greater than $25,000 but less than or 
equal to $50,000
		$400
	
21.34
21.35	greater than $50,000 but less than or 
equal to $100,000
		$500
	
22.1
22.2	greater than $100,000 but less than or 
equal to $150,000
		$600
	
22.3
22.4	greater than $150,000 but less than or 
equal to $200,000
		$800
	
22.5
22.6	greater than $200,000 but less than or 
equal to $250,000
		$1,000
	
22.7
22.8	greater than $250,000 but less than or 
equal to $300,000
		$1,200
	
22.922.10
	greater than $300,000 but less than or 
equal to $350,000
		$1,400
	
22.11
22.12	greater than $350,000 but less than or 
equal to $400,000
		$1,600
	
22.13
22.14	greater than $400,000 but less than or 
equal to $450,000
		$1,800
	
22.15
22.16	greater than $450,000 but less than or 
equal to $500,000
		$2,000
	
22.17
22.18	greater than $500,000 but less than or 
equal to $600,000
		$2,250
	
22.19
22.20	greater than $600,000 but less than or 
equal to $700,000
		$2,500
	
22.21
22.22	greater than $700,000 but less than or 
equal to $800,000
		$2,750
	
22.23
22.24	greater than $800,000 but less than or 
equal to $900,000
		$3,000
	
22.25
22.26	greater than $900,000 but less than or 
equal to $1,000,000
		$3,250
	
22.27
22.28	greater than $1,000,000 but less than or 
equal to $1,250,000
		$3,500
	
22.29
22.30	greater than $1,250,000 but less than or 
equal to $1,500,000
		$3,750
	
22.31
22.32	greater than $1,500,000 but less than or 
equal to $1,750,000
		$4,000
	
22.33
22.34	greater than $1,750,000 but less than or 
equal to $2,000,000
		$4,250
	
22.35
22.36	greater than $2,000,000 but less than or 
equal to $2,500,000
		$4,500
	
22.37
22.38	greater than $2,500,000 but less than or 
equal to $3,000,000
		$4,750
	
22.39
22.40	greater than $3,000,000 but less than or 
equal to $3,500,000
		$5,000
	
22.41
22.42	greater than $3,500,000 but less than or 
equal to $4,000,000
		$5,500
	
22.43
22.44	greater than $4,000,000 but less than or 
equal to $4,500,000
		$6,000
	
22.45
22.46	greater than $4,500,000 but less than or 
equal to $5,000,000
		$6,500
	
23.1
23.2	greater than $5,000,000 but less than or 
equal to $7,500,000
		$7,000
	
23.3
23.4	greater than $7,500,000 but less than or 
equal to $10,000,000
		$8,500
	
23.5
23.6	greater than $10,000,000 but less than or 
equal to $12,500,000
		$10,000
	
23.7
23.8	greater than $12,500,000 but less than or 
equal to $15,000,000
		$14,000
	
23.9	greater than $15,000,000
		$18,000
	
23.10 	(2) If requested, the license holder shall provide the commissioner information to verify 
23.11 	the license holder's annual revenues or other information as needed, including copies of 
23.12 	documents submitted to the Department of Revenue.
23.13 	(3) At each annual renewal, a license holder may elect to pay the highest renewal fee, 
23.14 	and not provide annual revenue information to the commissioner.
23.15 	(4) A license holder that knowingly provides the commissioner incorrect revenue amounts 
23.16 	for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount 
23.17 	of double the fee the provider should have paid.
23.18 	(5) Notwithstanding clause (1), a license holder providing services under one or more 
23.19 	licenses under chapter 245B that are in effect on May 15, 2013, shall pay an annual license 
23.20 	fee for calendar years 2014, 2015, and 2016, equal to the total license fees paid by the license 
23.21 	holder for all licenses held under chapter 245B for calendar year 2013. For calendar year 
23.22 	2017 and thereafter, the license holder shall pay an annual license fee according to clause 
23.23 	(1).
23.24 	(c) A substance use disorder treatment program licensed under chapter 245G, to provide 
23.25 	substance use disorder treatment shall pay an annual nonrefundable license fee based on 
23.26 	the following schedule:

23.27		Licensed Capacity
	License Fee
	
23.28		1 to 24 persons
	$600
	
23.29		25 to 49 persons
	$800
	
23.30		50 to 74 persons
	$1,000
	
23.31		75 to 99 persons
	$1,200
	
23.32		100 or more persons
	$1,400
	
23.33 	(d) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to 
23.34 	9530.6590, or a withdrawal management program licensed under chapter 245F shall pay 
23.35 	an annual nonrefundable license fee based on the following schedule:

24.1		Licensed Capacity
	License Fee
	
24.2		1 to 24 persons
	$760
	
24.3		25 to 49 persons
	$960
	
24.4		50 or more persons
	$1,160
	
24.5 	A detoxification program that also operates a withdrawal management program at the same 
24.6 	location shall only pay one fee based upon the licensed capacity of the program with the 
24.7 	higher overall capacity.
24.8 	(e) Except for child foster care, a residential facility licensed under Minnesota Rules, 
24.9 	chapter 2960, to serve children shall pay an annual nonrefundable license fee based on the 
24.10 	following schedule:

24.11		Licensed Capacity
	License Fee
	
24.12		1 to 24 persons
	$1,000
	
24.13		25 to 49 persons
	$1,100
	
24.14		50 to 74 persons
	$1,200
	
24.15		75 to 99 persons
	$1,300
	
24.16		100 or more persons
	$1,400
	
24.17 	(f) A residential facility licensed under section 245I.23 or Minnesota Rules, parts 
24.18 	9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual 
24.19 	nonrefundable license fee based on the following schedule:

24.20		Licensed Capacity
	License Fee
	
24.21		1 to 24 persons
	$2,525
	
24.22		25 or more persons
	$2,725
	
24.23 	(g) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 9570.3400, 
24.24 	to serve persons with physical disabilities shall pay an annual nonrefundable license fee 
24.25 	based on the following schedule:

24.26		Licensed Capacity
	License Fee
	
24.27		1 to 24 persons
	$450
	
24.28		25 to 49 persons
	$650
	
24.29		50 to 74 persons
	$850
	
24.30		75 to 99 persons
	$1,050
	
24.31		100 or more persons
	$1,250
	
24.32 	(h) A program licensed to provide independent living assistance for youth under section 
24.33 	245A.22 shall pay an annual nonrefundable license fee of $1,500.
25.1 	(i) (h) A private agency licensed to provide foster care and adoption services under 
25.2 	Minnesota Rules, parts 9545.0755 to 9545.0845, shall pay an annual nonrefundable license 
25.3 	fee of $875.
25.4 	(j) (i) A program licensed as an adult day care center licensed under Minnesota Rules, 
25.5 	parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the 
25.6 	following schedule:

25.7		Licensed Capacity
	License Fee
	
25.8		1 to 24 persons
	$500
	
25.9		25 to 49 persons
	$700
	
25.10		50 to 74 persons
	$900
	
25.11		75 to 99 persons
	$1,100
	
25.12		100 or more persons
	$1,300
	
25.13 	(k) (j) A program licensed to provide treatment services to persons with sexual 
25.14 	psychopathic personalities or sexually dangerous persons under Minnesota Rules, parts 
25.15 	9515.3000 to 9515.3110, shall pay an annual nonrefundable license fee of $20,000.
25.16 	(l) (k) A mental health clinic certified under section 245I.20 shall pay an annual 
25.17 	nonrefundable certification fee of $1,550. If the mental health clinic provides services at a 
25.18 	primary location with satellite facilities, the satellite facilities shall be certified with the 
25.19 	primary location without an additional charge.

25.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

25.21 	Sec. 17. Minnesota Statutes 2022, section 245A.11, is amended by adding a subdivision 
25.22 	to read:
25.23 		Subd. 12.License holder qualifications for child foster care.  (a) Child foster care 
25.24 	license holders must maintain the ability to care for a foster child and ensure a safe home 
25.25 	environment for children placed in their care. License holders must immediately notify the 
25.26 	licensing agency of:
25.27 	(1) any changes to the license holder or household member's physical or behavioral 
25.28 	health that may affect the license holder's ability to care for a foster child or pose a risk to 
25.29 	a foster child's health; or
25.30 	(2) changes related to the care of a child or vulnerable adult for whom the license holder 
25.31 	is a parent or legally responsible, including living out of the home for treatment for physical 
25.32 	or behavioral health, modified parenting time arrangements, legal custody, or placement in 
25.33 	foster care.
26.1 	(b) The licensing agency may request a license holder or household member to undergo 
26.2 	an evaluation by a specialist in areas such as physical or behavioral health to evaluate the 
26.3 	license holder's ability to provide a safe environment for a foster child. The licensing agency 
26.4 	must request a release of information from the license holder or household member prior 
26.5 	to assigning the specialist to evaluate, and the licensing agency must tell the license holder 
26.6 	or household member why it is requesting a specialist to evaluate.

26.7 	EFFECTIVE DATE. This section is effective January 1, 2024.

26.8 	Sec. 18. Minnesota Statutes 2022, section 245A.14, subdivision 4, is amended to read:
26.9 		Subd. 4.Special family child care homes. (a) Nonresidential child care programs 
26.10 	serving 14 or fewer children that are conducted at a location other than the license holder's 
26.11 	own residence shall be licensed under this section and the rules governing family child care 
26.12 	or group family child care if:
26.13 	(a) (1) the license holder is the primary provider of care and the nonresidential child 
26.14 	care program is conducted in a dwelling that is located on a residential lot;
26.15 	(b) (2) the license holder is an employer who may or may not be the primary provider 
26.16 	of care, and the purpose for the child care program is to provide child care services to 
26.17 	children of the license holder's employees;
26.18 	(c) (3) the license holder is a church or religious organization;
26.19 	(d) (4) the license holder is a community collaborative child care provider. For purposes 
26.20 	of this subdivision, a community collaborative child care provider is a provider participating 
26.21 	in a cooperative agreement with a community action agency as defined in section 256E.31;
26.22 	(e) (5) the license holder is a not-for-profit agency that provides child care in a dwelling 
26.23 	located on a residential lot and the license holder maintains two or more contracts with 
26.24 	community employers or other community organizations to provide child care services. 
26.25 	The county licensing agency may grant a capacity variance to a license holder licensed 
26.26 	under this paragraph clause to exceed the licensed capacity of 14 children by no more than 
26.27 	five children during transition periods related to the work schedules of parents, if the license 
26.28 	holder meets the following requirements:
26.29 	(1) (i) the program does not exceed a capacity of 14 children more than a cumulative 
26.30 	total of four hours per day;
26.31 	(2) (ii) the program meets a one to seven staff-to-child ratio during the variance period;
27.1 	(3) (iii) all employees receive at least an extra four hours of training per year than required 
27.2 	in the rules governing family child care each year;
27.3 	(4) (iv) the facility has square footage required per child under Minnesota Rules, part 
27.4 	9502.0425;
27.5 	(5) (v) the program is in compliance with local zoning regulations;
27.6 	(6) (vi) the program is in compliance with the applicable fire code as follows:
27.7 	(i) (A) if the program serves more than five children older than 2-1/2 years of age, but 
27.8 	no more than five children 2-1/2 years of age or less, the applicable fire code is educational 
27.9 	occupancy, as provided in Group E Occupancy under the Minnesota State Fire Code 2015
27.10 	2020, Section 202; or
27.11 	(ii) (B) if the program serves more than five children 2-1/2 years of age or less, the 
27.12 	applicable fire code is Group I-4 Occupancies Occupancy, as provided in the Minnesota 
27.13 	State Fire Code 2015 2020, Section 202, unless the rooms in which the children 2-1/2 years 
27.14 	of age or younger are cared for are located on a level of exit discharge and each of these 
27.15 	child care rooms has an exit door directly to the exterior, then the applicable fire code is 
27.16 	Group E occupancies Occupancy, as provided in the Minnesota State Fire Code 2015 2020, 
27.17 	Section 202; and
27.18 	(7) (vii) any age and capacity limitations required by the fire code inspection and square 
27.19 	footage determinations shall be printed on the license; or
27.20 	(f) (6) the license holder is the primary provider of care and has located the licensed 
27.21 	child care program in a commercial space, if the license holder meets the following 
27.22 	requirements:
27.23 	(1) (i) the program is in compliance with local zoning regulations;
27.24 	(2) (ii) the program is in compliance with the applicable fire code as follows:
27.25 	(i) (A) if the program serves more than five children older than 2-1/2 years of age, but 
27.26 	no more than five children 2-1/2 years of age or less, the applicable fire code is educational 
27.27 	occupancy, as provided in Group E Occupancy under the Minnesota State Fire Code 2015
27.28 	2020, Section 202; or
27.29 	(ii) (B) if the program serves more than five children 2-1/2 years of age or less, the 
27.30 	applicable fire code is Group I-4 Occupancies Occupancy, as provided under the Minnesota 
27.31 	State Fire Code 2015 2020, Section 202, unless the rooms in which the children 2-1/2 years 
27.32 	of age or younger are cared for are located on a level of exit discharge and each of these 
28.1 	child care rooms has an exit door directly to the exterior, then the applicable fire code is 
28.2 	Group E Occupancy, as provided in the Minnesota State Fire Code 2020, Section 202;
28.3 	(3) (iii) any age and capacity limitations required by the fire code inspection and square 
28.4 	footage determinations are printed on the license; and
28.5 	(4) (iv) the license holder prominently displays the license issued by the commissioner 
28.6 	which contains the statement "This special family child care provider is not licensed as a 
28.7 	child care center."
28.8 	(g) (b) Notwithstanding Minnesota Rules, part 9502.0335, subpart 12, the commissioner 
28.9 	may issue up to four licenses to an organization licensed under paragraph (b), (c), or (e) (a), 
28.10 	clause (2), (3), or (5). Each license must have its own primary provider of care as required 
28.11 	under paragraph (i) (d). Each license must operate as a distinct and separate program in 
28.12 	compliance with all applicable laws and regulations.
28.13 	(h) (c) For licenses issued under paragraph (b), (c), (d), (e), or (f) (a), clause (2), (3), 
28.14 	(4), (5), or (6), the commissioner may approve up to four licenses at the same location or 
28.15 	under one contiguous roof if each license holder is able to demonstrate compliance with all 
28.16 	applicable rules and laws. Each licensed program must operate as a distinct program and 
28.17 	within the capacity, age, and ratio distributions of each license.
28.18 	(i) (d) For a license issued under paragraph (b), (c), or (e) (a), clause (2), (3), or (5), the 
28.19 	license holder must designate a person to be the primary provider of care at the licensed 
28.20 	location on a form and in a manner prescribed by the commissioner. The license holder 
28.21 	shall notify the commissioner in writing before there is a change of the person designated 
28.22 	to be the primary provider of care. The primary provider of care:
28.23 	(1) must be the person who will be the provider of care at the program and present during 
28.24 	the hours of operation;
28.25 	(2) must operate the program in compliance with applicable laws and regulations under 
28.26 	chapter 245A and Minnesota Rules, chapter 9502;
28.27 	(3) is considered a child care background study subject as defined in section 245C.02, 
28.28 	subdivision 6a, and must comply with background study requirements in chapter 245C;
28.29 	(4) must complete the training that is required of license holders in section 245A.50; 
28.30 	and
28.31 	(5) is authorized to communicate with the county licensing agency and the department 
28.32 	on matters related to licensing.
29.1 	(j) (e) For any license issued under this subdivision, the license holder must ensure that 
29.2 	any other caregiver, substitute, or helper who assists in the care of children meets the training 
29.3 	requirements in section 245A.50 and background study requirements under chapter 245C.

29.4 	Sec. 19. Minnesota Statutes 2022, section 245A.1435, is amended to read:
29.5 	245A.1435 REDUCTION OF RISK OF SUDDEN UNEXPECTED INFANT DEATH 
29.6 	IN LICENSED PROGRAMS.
29.7 	(a) When a license holder is placing an infant to sleep, the license holder must place the 
29.8 	infant on the infant's back, unless the license holder has documentation from the infant's 
29.9 	physician, advanced practice registered nurse, or physician assistant directing an alternative 
29.10 	sleeping position for the infant. The physician, advanced practice registered nurse, or 
29.11 	physician assistant directive must be on a form approved developed by the commissioner 
29.12 	and must remain on file at the licensed location. An infant who independently rolls onto its 
29.13 	stomach after being placed to sleep on its back may be allowed to remain sleeping on its 
29.14 	stomach if the infant is at least six months of age or the license holder has a signed statement 
29.15 	from the parent indicating that the infant regularly rolls over at home.
29.16 	(b) The license holder must place the infant in a crib directly on a firm mattress with a 
29.17 	fitted sheet that is appropriate to the mattress size, that fits tightly on the mattress, and 
29.18 	overlaps the underside of the mattress so it cannot be dislodged by pulling on the corner of 
29.19 	the sheet with reasonable effort. The license holder must not place anything in the crib with 
29.20 	the infant except for the infant's pacifier, as defined in Code of Federal Regulations, title 
29.21 	16, part 1511. The pacifier must be free from any sort of attachment. The requirements of 
29.22 	this section apply to license holders serving infants younger than one year of age. Licensed 
29.23 	child care providers must meet the crib requirements under section 245A.146. A correction 
29.24 	order shall not be issued under this paragraph unless there is evidence that a violation 
29.25 	occurred when an infant was present in the license holder's care.
29.26 	(c) If an infant falls asleep before being placed in a crib, the license holder must move 
29.27 	the infant to a crib as soon as practicable, and must keep the infant within sight of the license 
29.28 	holder until the infant is placed in a crib. When an infant falls asleep while being held, the 
29.29 	license holder must consider the supervision needs of other children in care when determining 
29.30 	how long to hold the infant before placing the infant in a crib to sleep. The sleeping infant 
29.31 	must not be in a position where the airway may be blocked or with anything covering the 
29.32 	infant's face.
29.33 	(d) When a license holder places an infant under one year of age down to sleep, the 
29.34 	infant's clothing or sleepwear must not have weighted materials, a hood, or a bib.
30.1 	(e) A license holder may place an infant under one year of age down to sleep wearing 
30.2 	a helmet if the license holder has signed documentation by a physician, advanced practice 
30.3 	registered nurse, physician assistant, licensed occupational therapist, or licensed physical 
30.4 	therapist on a form developed by the commissioner.
30.5 	(d) (f) Placing a swaddled infant down to sleep in a licensed setting is not recommended 
30.6 	for an infant of any age and is prohibited for any infant who has begun to roll over 
30.7 	independently. However, with the written consent of a parent or guardian according to this 
30.8 	paragraph, a license holder may place the infant who has not yet begun to roll over on its 
30.9 	own down to sleep in a one-piece sleeper equipped with an attached system that fastens 
30.10 	securely only across the upper torso, with no constriction of the hips or legs, to create a
30.11 	swaddle. A swaddle is defined as a one-piece sleepwear that wraps over the infant's arms, 
30.12 	fastens securely only across the infant's upper torso, and does not constrict the infant's hips 
30.13 	or legs. If a swaddle is used by a license holder, the license holder must ensure that it meets 
30.14 	the requirements of paragraph (d) and is not so tight that it restricts the infant's ability to 
30.15 	breathe or so loose that the fabric could cover the infant's nose and mouth. Prior to any use 
30.16 	of swaddling for sleep by a provider licensed under this chapter, the license holder must 
30.17 	obtain informed written consent for the use of swaddling from the parent or guardian of the 
30.18 	infant on a form provided developed by the commissioner and prepared in partnership with 
30.19 	the Minnesota Sudden Infant Death Center.
30.20 	(g) A license holder may request a variance to this section to permit the use of a 
30.21 	cradleboard when requested by a parent or guardian for a cultural accommodation. A variance 
30.22 	for the use of a cradleboard may be issued only by the commissioner. The variance request 
30.23 	must be submitted on a form developed by the commissioner in partnership with Tribal 
30.24 	welfare agencies and the Department of Health.

30.25 	EFFECTIVE DATE. This section is effective January 1, 2024.

30.26 	Sec. 20. Minnesota Statutes 2022, section 245A.146, subdivision 3, is amended to read:
30.27 		Subd. 3.License holder documentation of cribs. (a) Annually, from the date printed 
30.28 	on the license, all license holders shall check all their cribs' brand names and model numbers 
30.29 	against the United States Consumer Product Safety Commission website listing of unsafe 
30.30 	cribs.
30.31 	(b) The license holder shall maintain written documentation to be reviewed on site for 
30.32 	each crib showing that the review required in paragraph (a) has been completed, and which 
30.33 	of the following conditions applies:
31.1 	(1) the crib was not identified as unsafe on the United States Consumer Product Safety 
31.2 	Commission website;
31.3 	(2) the crib was identified as unsafe on the United States Consumer Product Safety 
31.4 	Commission website, but the license holder has taken the action directed by the United 
31.5 	States Consumer Product Safety Commission to make the crib safe; or
31.6 	(3) the crib was identified as unsafe on the United States Consumer Product Safety 
31.7 	Commission website, and the license holder has removed the crib so that it is no longer 
31.8 	used by or accessible to children in care.
31.9 	(c) Documentation of the review completed under this subdivision shall be maintained 
31.10 	by the license holder on site and made available to parents or guardians of children in care 
31.11 	and the commissioner.
31.12 	(d) Notwithstanding Minnesota Rules, part 9502.0425, a family child care provider that 
31.13 	complies with this section may use a mesh-sided or fabric-sided play yard, pack and play, 
31.14 	or playpen or crib that has not been identified as unsafe on the United States Consumer 
31.15 	Product Safety Commission website for the care or sleeping of infants.
31.16 	(e) On at least a monthly basis, the family child care license holder shall perform safety 
31.17 	inspections of every mesh-sided or fabric-sided play yard, pack and play, or playpen used 
31.18 	by or that is accessible to any child in care, and must document the following:
31.19 	(1) there are no tears, holes, or loose or unraveling threads in mesh or fabric sides of 
31.20 	crib;
31.21 	(2) the weave of the mesh on the crib is no larger than one-fourth of an inch;
31.22 	(3) no mesh fabric is unsecure or unattached to top rail and floor plate of crib;
31.23 	(4) no tears or holes to top rail of crib;
31.24 	(5) the mattress floor board is not soft and does not exceed one inch thick;
31.25 	(6) the mattress floor board has no rips or tears in covering;
31.26 	(7) the mattress floor board in use is a waterproof an original mattress or replacement 
31.27 	mattress provided by the manufacturer of the crib;
31.28 	(8) there are no protruding or loose rivets, metal nuts, or bolts on the crib;
31.29 	(9) there are no knobs or wing nuts on outside crib legs;
31.30 	(10) there are no missing, loose, or exposed staples; and
32.1 	(11) the latches on top and side rails used to collapse crib are secure, they lock properly, 
32.2 	and are not loose.
32.3 	(f) If a cradleboard is used in a licensed setting, the license holder must check the 
32.4 	cradleboard not less than monthly to ensure the cradleboard is structurally sound and there 
32.5 	are no loose or protruding parts. The license holder shall maintain written documentation 
32.6 	of this review.

32.7 	EFFECTIVE DATE. This section is effective January 1, 2024.

32.8 	Sec. 21. Minnesota Statutes 2022, section 245A.16, subdivision 1, is amended to read:
32.9 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and private 
32.10 	agencies that have been designated or licensed by the commissioner to perform licensing 
32.11 	functions and activities under section 245A.04and background studies for family child care 
32.12 	under chapter 245C; to recommend denial of applicants under section 245A.05; to issue 
32.13 	correction orders, to issue variances, and recommend a conditional license under section 
32.14 	245A.06; or to recommend suspending or revoking a license or issuing a fine under section 
32.15 	245A.07, shall comply with rules and directives of the commissioner governing those 
32.16 	functions and with this section. The following variances are excluded from the delegation 
32.17 	of variance authority and may be issued only by the commissioner:
32.18 	(1) dual licensure of family child care and child foster care, dual licensure of child and 
32.19 	adult foster care, and adult foster care and family child care;
32.20 	(2) adult foster care maximum capacity;
32.21 	(3) adult foster care minimum age requirement;
32.22 	(4) child foster care maximum age requirement;
32.23 	(5) variances regarding disqualified individuals except that, before the implementation 
32.24 	of NETStudy 2.0, county agencies may issue variances under section 245C.30 regarding 
32.25 	disqualified individuals when the county is responsible for conducting a consolidated 
32.26 	reconsideration according to sections 245C.25 and 245C.27, subdivision 2, clauses (a) and 
32.27 	(b), of a county maltreatment determination and a disqualification based on serious or 
32.28 	recurring maltreatment;
32.29 	(6) the required presence of a caregiver in the adult foster care residence during normal 
32.30 	sleeping hours;
32.31 	(7) variances to requirements relating to chemical use problems of a license holder or a 
32.32 	household member of a license holder; and
33.1 	(8) variances to section 245A.53 for a time-limited period. If the commissioner grants 
33.2 	a variance under this clause, the license holder must provide notice of the variance to all 
33.3 	parents and guardians of the children in care; and
33.4 	(9) variances to section 245A.1435 for the use of a cradleboard for a cultural 
33.5 	accommodation.
33.6 	Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency must 
33.7 	not grant a license holder a variance to exceed the maximum allowable family child care 
33.8 	license capacity of 14 children.
33.9 	(b) A county agency that has been designated by the commissioner to issue family child 
33.10 	care variances must:
33.11 	(1) publish the county agency's policies and criteria for issuing variances on the county's 
33.12 	public website and update the policies as necessary; and
33.13 	(2) annually distribute the county agency's policies and criteria for issuing variances to 
33.14 	all family child care license holders in the county.
33.15 	(c) Before the implementation of NETStudy 2.0, county agencies must report information 
33.16 	about disqualification reconsiderations under sections 245C.25 and 245C.27, subdivision 
33.17 	2, paragraphs (a) and (b), and variances granted under paragraph (a), clause (5), to the 
33.18 	commissioner at least monthly in a format prescribed by the commissioner.
33.19 	(d) (c) For family child care programs, the commissioner shall require a county agency 
33.20 	to conduct one unannounced licensing review at least annually.
33.21 	(e) (d) For family adult day services programs, the commissioner may authorize licensing 
33.22 	reviews every two years after a licensee has had at least one annual review.
33.23 	(f) (e) A license issued under this section may be issued for up to two years.
33.24 	(g) (f) During implementation of chapter 245D, the commissioner shall consider:
33.25 	(1) the role of counties in quality assurance;
33.26 	(2) the duties of county licensing staff; and
33.27 	(3) the possible use of joint powers agreements, according to section 471.59, with counties 
33.28 	through which some licensing duties under chapter 245D may be delegated by the 
33.29 	commissioner to the counties.
33.30 	Any consideration related to this paragraph must meet all of the requirements of the corrective 
33.31 	action plan ordered by the federal Centers for Medicare and Medicaid Services.
34.1 	(h) (g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
34.2 	successor provisions; and section 245D.061 or successor provisions, for family child foster 
34.3 	care programs providing out-of-home respite, as identified in section 245D.03, subdivision 
34.4 	1, paragraph (b), clause (1), is excluded from the delegation of authority to county and 
34.5 	private agencies.
34.6 	(i) (h) A county agency shall report to the commissioner, in a manner prescribed by the 
34.7 	commissioner, the following information for a licensed family child care program:
34.8 	(1) the results of each licensing review completed, including the date of the review, and 
34.9 	any licensing correction order issued;
34.10 	(2) any death, serious injury, or determination of substantiated maltreatment; and
34.11 	(3) any fires that require the service of a fire department within 48 hours of the fire. The 
34.12 	information under this clause must also be reported to the state fire marshal within two 
34.13 	business days of receiving notice from a licensed family child care provider.

34.14 	EFFECTIVE DATE. Paragraph (a), clause (9), is effective January 1, 2024, and all 
34.15 	other changes are effective the day following final enactment.

34.16 	Sec. 22. Minnesota Statutes 2022, section 245A.16, subdivision 9, is amended to read:
34.17 		Subd. 9.Licensed family foster settings. (a) Before recommending to grant a license, 
34.18 	deny a license under section 245A.05, or revoke a license under section 245A.07 for 
34.19 	nondisqualifying background study information received under section 245C.05, subdivision 
34.20 	4, paragraph (a), clause (3), for a licensed family foster setting, a county agency or private 
34.21 	agency that has been designated or licensed by the commissioner must review the following
34.22 	for the license holder, applicant, and an individual living in the household where the licensed 
34.23 	services are provided or who is otherwise subject to a background study:
34.24 	(1) the type of offenses;
34.25 	(2) the number of offenses;
34.26 	(3) the nature of the offenses;
34.27 	(4) the age of the individual at the time of the offenses;
34.28 	(5) the length of time that has elapsed since the last offense;
34.29 	(6) the relationship of the offenses and the capacity to care for a child;
34.30 	(7) evidence of rehabilitation;
35.1 	(8) information or knowledge from community members regarding the individual's 
35.2 	capacity to provide foster care;
35.3 	(9) any available information regarding child maltreatment reports or child in need of 
35.4 	protection or services petitions, or related cases, in which the individual has been involved 
35.5 	or implicated, and documentation that the individual has remedied issues or conditions 
35.6 	identified in child protection or court records that are relevant to safely caring for a child;
35.7 	(10) a statement from the study subject;
35.8 	(11) a statement from the license holder; and
35.9 	(12) other aggravating and mitigating factors.
35.10 	(b) For purposes of this section, "evidence of rehabilitation" includes but is not limited 
35.11 	to the following:
35.12 	(1) maintaining a safe and stable residence;
35.13 	(2) continuous, regular, or stable employment;
35.14 	(3) successful participation in an education or job training program;
35.15 	(4) positive involvement with the community or extended family;
35.16 	(5) compliance with the terms and conditions of probation or parole following the 
35.17 	individual's most recent conviction;
35.18 	(6) if the individual has had a substance use disorder, successful completion of a substance 
35.19 	use disorder assessment, substance use disorder treatment, and recommended continuing 
35.20 	care, if applicable, demonstrated abstinence from controlled substances, as defined in section 
35.21 	152.01, subdivision 4, or the establishment of a sober network;
35.22 	(7) if the individual has had a mental illness or documented mental health issues, 
35.23 	demonstrated completion of a mental health evaluation, participation in therapy or other 
35.24 	recommended mental health treatment, or appropriate medication management, if applicable;
35.25 	(8) if the individual's offense or conduct involved domestic violence, demonstrated 
35.26 	completion of a domestic violence or anger management program, and the absence of any 
35.27 	orders for protection or harassment restraining orders against the individual since the previous 
35.28 	offense or conduct;
35.29 	(9) written letters of support from individuals of good repute, including but not limited 
35.30 	to employers, members of the clergy, probation or parole officers, volunteer supervisors, 
35.31 	or social services workers;
36.1 	(10) demonstrated remorse for convictions or conduct, or demonstrated positive behavior 
36.2 	changes; and
36.3 	(11) absence of convictions or arrests since the previous offense or conduct, including 
36.4 	any convictions that were expunged or pardoned.
36.5 	(c) An applicant for a family foster setting license must sign all releases of information 
36.6 	requested by the county or private licensing agency.
36.7 	(d) When licensing a relative for a family foster setting, the commissioner shall also 
36.8 	consider the importance of maintaining the child's relationship with relatives as an additional 
36.9 	significant factor in determining whether an application will be denied.
36.10 	(e) When recommending that the commissioner deny or revoke a license, the county or 
36.11 	private licensing agency must send a summary of the review completed according to 
36.12 	paragraph (a), on a form developed by the commissioner, to the commissioner and include 
36.13 	any recommendation for licensing action.

36.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

36.15 	Sec. 23. Minnesota Statutes 2022, section 245A.16, is amended by adding a subdivision 
36.16 	to read:
36.17 		Subd. 10.Electronic checklist use by family child care licensors. County staff who 
36.18 	perform family child care licensing functions must use the commissioner's electronic licensing 
36.19 	checklist in the manner prescribed by the commissioner.

36.20 	EFFECTIVE DATE. This section is effective July 1, 2023.

36.21 	Sec. 24. Minnesota Statutes 2022, section 245A.18, subdivision 2, is amended to read:
36.22 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
36.23 	licensed by the Department of Human Services under this chapter and Minnesota Rules, 
36.24 	chapter 2960, that serve a child or children under eight years of age must document training 
36.25 	that fulfills the requirements in this subdivision. Sections 245A.60, subdivision 4, and 
36.26 	245A.61, subdivision 4, describe training requirements for family foster care and foster 
36.27 	residence settings.
36.28 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
36.29 	age eight in a motor vehicle, the person transporting the child must satisfactorily complete 
36.30 	training on the proper use and installation of child restraint systems in motor vehicles. 
37.1 	Training completed under this section may be used to meet initial or ongoing training under 
37.2 	Minnesota Rules, part 2960.3070, subparts 1 and 2.
37.3 	(c) Training required under this section must be completed at orientation or initial training 
37.4 	and repeated at least once every five years. At a minimum, the training must address the 
37.5 	proper use of child restraint systems based on the child's size, weight, and age, and the 
37.6 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
37.7 	holder to transport the child or children.
37.8 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
37.9 	approved by the Department of Public Safety, Office of Traffic Safety within the Department 
37.10 	of Public Safety. License holders may obtain a list of certified and approved trainers through 
37.11 	the Department of Public Safety website or by contacting the agency.
37.12 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
37.13 	245A.035, the commissioner may grant a variance to the training required by this subdivision 
37.14 	for a relative who completes a child seat safety check up. The child seat safety check up 
37.15 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
37.16 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
37.17 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
37.18 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
37.19 	a license and may transport a relative foster child younger than eight years of age. A child 
37.20 	seat safety check up must be completed each time a child requires a different size car seat 
37.21 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
37.22 	complete training that meets the other requirements of this subdivision prior to placement 
37.23 	of another foster child younger than eight years of age in the home or prior to the renewal 
37.24 	of the child foster care license.

37.25 	EFFECTIVE DATE. This section is effective January 1, 2024.

37.26 	Sec. 25. [245A.211] PRONE RESTRAINT PROHIBITION.
37.27 		Subdivision 1.Applicability. This section applies to all programs licensed or certified 
37.28 	under this chapter, chapters 245D, 245F, 245G, 245H, and sections 245I.20 and 245I.23. 
37.29 	The requirements in this section are in addition to any applicable requirements for the use 
37.30 	of holds or restraints for each license or certification type.
37.31 		Subd. 2.Definitions. (a) "Mechanical restraint" means a restraint device that limits the 
37.32 	voluntary movement of a person or the person's limbs.
38.1 	(b) "Prone restraint" means a restraint that places a person in a face-down position with 
38.2 	the person's chest in contact with the floor or other surface.
38.3 	(c) "Restraint" means a physical hold, physical restraint, manual restraint, restraint 
38.4 	equipment, or mechanical restraint that holds a person immobile or limits the voluntary 
38.5 	movement of a person or the person's limbs.
38.6 		Subd. 3.Prone restraint prohibition. (a) A license or certification holder must not use 
38.7 	a prone restraint on any person receiving services in a program, except in the instances 
38.8 	allowed by paragraphs (b) to (d).
38.9 	(b) If a person rolls into a prone position during the use of a restraint, the person must 
38.10 	be restored to a nonprone position as quickly as possible.
38.11 	(c) If the applicable licensing requirements allow a program to use mechanical restraints, 
38.12 	a person may be briefly held in a prone restraint for the purpose of applying mechanical 
38.13 	restraints if the person is restored to a nonprone position as quickly as possible.
38.14 	(d) If the applicable licensing requirements allow a program to use seclusion, a person 
38.15 	may be briefly held in a prone restraint to allow staff to safely exit a seclusion room.
38.16 		Subd. 4.Contraindicated physical restraints. A license or certification holder must 
38.17 	not implement a restraint on a person receiving services in a program in a way that is 
38.18 	contraindicated for any of the person's known medical or psychological conditions. Prior 
38.19 	to using restraints on a person, the license or certification holder must assess and document 
38.20 	a determination of any medical or psychological conditions that restraints are contraindicated 
38.21 	for and the type of restraints that will not be used on the person based on this determination.

38.22 	Sec. 26. Minnesota Statutes 2022, section 245A.52, subdivision 1, is amended to read:
38.23 		Subdivision 1.Means of escape. (a)(1) At least one emergency escape route separate 
38.24 	from the main exit from the space must be available in each room used for sleeping by 
38.25 	anyone receiving licensed care, and (2) a basement used for child care. One means of escape 
38.26 	must be a stairway or door leading to the floor of exit discharge. The other must be a door 
38.27 	or window leading directly outside. A window used as an emergency escape route must be 
38.28 	openable without special knowledge.
38.29 	(b) In homes with construction that began before May 2, 2016 March 31, 2020, the 
38.30 	interior of the window leading directly outside must have a net clear opening area of not 
38.31 	less than 4.5 square feet or 648 square inches and have minimum clear opening dimensions 
38.32 	of 20 inches wide and 20 inches high. The net clear opening dimensions shall be the result 
38.33 	of normal operation of the opening. The opening must be no higher than 48 inches from the 
39.1 	floor. The height to the window may be measured from a platform if a platform is located 
39.2 	below the window.
39.3 	(c) In homes with construction that began on or after May 2, 2016 March 31, 2020, the 
39.4 	interior of the window leading directly outside must have minimum clear opening dimensions 
39.5 	of 20 inches wide and 24 inches high. The net clear opening dimensions shall be the result 
39.6 	of normal operation of the opening. The opening must be no higher than 44 inches from the 
39.7 	floor.
39.8 	(d) Additional requirements are dependent on the distance of the openings from the ground 
39.9 	outside the window: (1) windows or other openings with a sill height not more than 44 
39.10 	inches above or below the finished ground level adjacent to the opening (grade-floor 
39.11 	emergency escape and rescue openings) must have a minimum opening of five square feet; 
39.12 	and (2) non-grade-floor emergency escape and rescue openings must have a minimum 
39.13 	opening of 5.7 square feet.

39.14 	Sec. 27. Minnesota Statutes 2022, section 245A.52, subdivision 2, is amended to read:
39.15 		Subd. 2.Door to attached garage. Notwithstanding Minnesota Rules, part 9502.0425, 
39.16 	subpart 5, day care residences with an attached garage are not required to have a self-closing 
39.17 	door to the residence. The door to the residence may be If there is an opening between an 
39.18 	attached garage and a day care residence, there must be a door that is:
39.19 	(1) a solid wood bonded-core door at least 1-3/8 inches thick;
39.20 	(2) a steel insulated door if the door is at least 1-3/8 inches thick.; or
39.21 	(3) a door with a fire protection rating of 20 minutes.
39.22 	The separation wall on the garage side between the residence and garage must consist of 
39.23 	1/2 inch thick gypsum wallboard or its equivalent.

39.24 	Sec. 28. Minnesota Statutes 2022, section 245A.52, subdivision 3, is amended to read:
39.25 		Subd. 3.Heating and venting systems. (a) Notwithstanding Minnesota Rules, part 
39.26 	9502.0425, subpart 7, item C, items that can be ignited and support combustion, including 
39.27 	but not limited to plastic, fabric, and wood products must not be located within:
39.28 	(1) 18 inches of a gas or fuel-oil heater or furnace.; or
39.29 	(2) 36 inches of a solid-fuel-burning appliance.
40.1 	(b) If a license holder produces manufacturer instructions listing a smaller distance, then 
40.2 	the manufacturer instructions control the distance combustible items must be from gas, 
40.3 	fuel-oil, or solid-fuel burning heaters or furnaces.

40.4 	Sec. 29. Minnesota Statutes 2022, section 245A.52, subdivision 5, is amended to read:
40.5 		Subd. 5.Carbon monoxide and smoke alarms. (a) All homes must have an approved 
40.6 	and operational carbon monoxide alarm installed within ten feet of each room used for 
40.7 	sleeping children in care.
40.8 	(b) Smoke alarms that have been listed by the Underwriter Laboratory must be properly 
40.9 	installed and maintained on all levels including basements, but not including crawl spaces 
40.10 	and uninhabitable attics, and in hallways outside rooms used for sleeping children in care.
40.11 	in hallways outside of rooms used for sleeping children and on all levels, including basements 
40.12 	but not including crawl spaces and uninhabitable attics.
40.13 	(c) In homes with construction that began on or after May 2, 2016 March 31, 2020, 
40.14 	smoke alarms must be installed and maintained in each room used for sleeping children in 
40.15 	care.

40.16 	Sec. 30. Minnesota Statutes 2022, section 245A.52, is amended by adding a subdivision 
40.17 	to read:
40.18 		Subd. 7.Stairways. All stairways must meet the following conditions.
40.19 	(1) Stairways of four or more steps must have handrails on at least one side.
40.20 	(2) Any open area between the handrail and stair tread must be enclosed with a protective 
40.21 	guardrail as specified in the State Building Code. At open risers, openings located more 
40.22 	than 30 inches (762 mm), as measured vertically, to the floor or grade below shall not permit 
40.23 	the passage of a sphere four inches (102 mm) in diameter.
40.24 	(3) Gates or barriers must be used when children between the ages of six and 18 months 
40.25 	are in care.
40.26 	(4) Stairways must be well lit, in good repair, and free of clutter and obstructions.

40.27 	Sec. 31. Minnesota Statutes 2022, section 245A.52, is amended by adding a subdivision 
40.28 	to read:
40.29 		Subd. 8.Fire code variances. When a variance is requested of the standards contained 
40.30 	in subdivision 1, 2, 3, 4, or 5, an applicant or provider must submit written approval from 
41.1 	the state fire marshal of the variance requested and the alternative measures identified to 
41.2 	ensure the safety of children in care.

41.3 	Sec. 32. [245A.60] FAMILY CHILD FOSTER CARE TRAINING REQUIREMENTS.
41.4 		Subdivision 1.Applicability. This section applies to programs licensed to provide foster 
41.5 	care for children in the license holder's residence. For the purposes of this section, "foster 
41.6 	parent" means a license holder under this chapter. For the purposes of this section, "caregiver" 
41.7 	means a person who provides services to a child according to the child's case plan in a setting 
41.8 	licensed under Minnesota Rules, parts 2960.3000 to 2960.3340.
41.9 		Subd. 2.Orientation. (a) Each foster parent applicant must complete a minimum of six 
41.10 	hours of orientation before the commissioner will license the applicant. An applicant's 
41.11 	orientation training hours do not count toward yearly training hours. The commissioner 
41.12 	may grant a variance to the applicant regarding the number of orientation hours that this 
41.13 	subdivision requires.
41.14 	(b) The foster parent's orientation must include training about the following:
41.15 	(1) emergency procedures, including evacuation routes, emergency telephone numbers, 
41.16 	severe storm and tornado procedures, and the location of alarms and equipment;
41.17 	(2) all relevant laws and rules, including this chapter; chapters 260, 260C, 260D, and 
41.18 	260E; Minnesota Rules, chapter 9560; and related legal issues and reporting requirements;
41.19 	(3) cultural diversity, gender sensitivity, culturally specific services, cultural competence, 
41.20 	and information about discrimination and racial bias to ensure that caregivers are culturally 
41.21 	competent to care for foster children according to section 260C.212, subdivision 11;
41.22 	(4) the foster parent's roles and responsibilities in developing and implementing the 
41.23 	child's case plan and involvement in court and administrative reviews of the child's placement;
41.24 	(5) the licensing agency's requirements;
41.25 	(6) one hour relating to reasonable and prudent parenting standards for the child's 
41.26 	participation in age-appropriate or developmentally appropriate extracurricular, social, or 
41.27 	cultural activities according to section 260C.212, subdivision 14;
41.28 	(7) two hours relating to children's mental health issues according to subdivision 3;
41.29 	(8) if subdivision 4 requires, the proper use and installation of child passenger restraint 
41.30 	systems in motor vehicles;
42.1 	(9) if subdivision 5 requires, at least one hour about reducing the risk of sudden 
42.2 	unexpected infant death and abusive head trauma from shaking infants and young children; 
42.3 	and
42.4 	(10) if subdivision 6 requires, operating medical equipment.
42.5 		Subd. 3.Mental health training.  Each foster parent prior to licensure and each caregiver 
42.6 	prior to caring for a foster child must complete two hours of training that addresses the 
42.7 	causes, symptoms, and key warning signs of children's mental health disorders; cultural 
42.8 	considerations; and effective approaches to manage a child's behaviors. Each year, each 
42.9 	foster parent and caregiver must complete at least one hour of training about children's 
42.10 	mental health issues and treatment. A short-term substitute caregiver is exempt from this 
42.11 	subdivision. The commissioner of human services shall approve of a mental health training 
42.12 	curriculum that satisfies the requirements of this subdivision.
42.13 		Subd. 4.Child passenger restraint systems.  (a) Each foster parent and caregiver must 
42.14 	satisfactorily complete training about the proper use and installation of child passenger 
42.15 	restraint systems in motor vehicles before transporting a child younger than eight years of 
42.16 	age in a motor vehicle.
42.17 	(b) An individual who is certified and approved by the Office of Traffic Safety within 
42.18 	the Department of Public Safety must provide training about the proper use and installation 
42.19 	of child passenger restraint systems in motor vehicles to each foster parent and caregiver 
42.20 	who transports a child. At a minimum, the training must address the proper use of child 
42.21 	passenger restraint systems based on a child's size, weight, and age, and the proper installation 
42.22 	of a car seat or booster seat in the motor vehicle that will be transporting the child. A foster 
42.23 	parent or caregiver who transports a child must repeat the training in this subdivision at 
42.24 	least once every five years.
42.25 	(c) Notwithstanding paragraph (a), for an emergency relative placement under section 
42.26 	245A.035, the commissioner may grant a variance to the training required by this subdivision 
42.27 	to a child's relative who completes a child seat safety checkup. The Office of Traffic Safety 
42.28 	within the Department of Public Safety must approve of the child seat safety checkup trainer 
42.29 	and must provide one-on-one instruction to the child's relative applicant about placing a 
42.30 	child of a specific age in the exact child passenger restraint in the motor vehicle that will 
42.31 	be used to transport the child. Once the commissioner grants a variance to the child's relative, 
42.32 	the child's relative may transport a relative foster child younger than eight years of age, and 
42.33 	once the child's relative meets all other licensing requirements, the commissioner may 
42.34 	license the child's relative applicant. The child's relative must complete a child seat safety 
43.1 	checkup each time that the child requires a different sized car seat according to car seat and 
43.2 	vehicle manufacturer guidelines. A relative license holder must complete training that meets 
43.3 	the other requirements of this subdivision prior to placement of another foster child younger 
43.4 	than eight years of age in the relative license holder's home or prior to the renewal of the 
43.5 	relative license holder's child foster care license.
43.6 		Subd. 5.Training about the risk of sudden unexpected infant death and abusive 
43.7 	head trauma.  (a) Each foster parent and caregiver who cares for an infant or a child five 
43.8 	years of age or younger must satisfactorily complete at least one hour of training about 
43.9 	reducing the risk of sudden unexpected infant death pursuant to section 245A.1435 and 
43.10 	abusive head trauma from shaking infants and young children. Each foster parent and 
43.11 	caregiver must complete this training prior to caring for an infant or a child five years of 
43.12 	age or younger. The county or private licensing agency monitoring the foster care provider 
43.13 	under section 245A.16 must approve of the training about reducing the risk of sudden 
43.14 	unexpected infant death and abusive head trauma from shaking infants and young children.
43.15 	(b) At a minimum, the training must address the risk factors related to sudden unexpected 
43.16 	infant death and abusive head trauma, means of reducing the risk of sudden unexpected 
43.17 	infant death and abusive head trauma, and license holder communication with parents 
43.18 	regarding reducing the risk of sudden unexpected infant death and abusive head trauma.
43.19 	(c) For emergency relative placements under section 245A.035, this training must be 
43.20 	completed before a license is issued. Each foster parent and caregiver must complete the 
43.21 	training in this subdivision at least once every five years.
43.22 		Subd. 6.Training on use of medical equipment.  (a) If caring for a child who relies on 
43.23 	medical equipment to sustain the child's life or monitor the child's medical condition, each 
43.24 	foster parent and caregiver must satisfactorily complete training to operate the child's 
43.25 	equipment with a health care professional or an individual who provides training on the 
43.26 	child's equipment.
43.27 	(b) A foster parent or caregiver is exempt from this subdivision if:
43.28 	(1) the foster parent or caregiver is currently caring for an individual who is using the 
43.29 	same equipment in the foster home; or
43.30 	(2) the foster parent or caregiver has written documentation that the foster parent or 
43.31 	caregiver has cared for an individual who relied on the same equipment within the past six 
43.32 	months.
44.1 		Subd. 7.Fetal alcohol spectrum disorders training. Each foster parent and caregiver 
44.2 	must complete at least one hour of training yearly on fetal alcohol spectrum disorders. A 
44.3 	provider who is also licensed to provide home and community-based services under chapter 
44.4 	245D and the provider's staff are exempt from this subdivision. A short-term substitute 
44.5 	caregiver is exempt from this subdivision. The commissioner of human services shall approve 
44.6 	a fetal alcohol spectrum disorders training curriculum that satisfies the requirements of this 
44.7 	subdivision.
44.8 		Subd. 8.Yearly training requirement. (a) Each foster parent must complete a minimum 
44.9 	of 12 hours of training per year. If a foster parent fails to complete the required yearly 
44.10 	training and does not show good cause why the foster parent did not complete the training, 
44.11 	the foster parent is prohibited from accepting a new foster child placement until the foster 
44.12 	parent completes the training. The commissioner may grant a variance to the required number 
44.13 	of yearly training hours.
44.14 	(b) Each year, each foster parent and caregiver must complete one hour of training about 
44.15 	children's mental health issues according to subdivision 3, and one hour of training about 
44.16 	fetal alcohol spectrum disorders, if required by subdivision 7.
44.17 	(c) Each year, each foster parent and caregiver must complete training about the reporting 
44.18 	requirements and definitions in chapter 260E, as section 245A.66 requires. Foster parents 
44.19 	and caregivers caring for youth 18 and older in extended foster care must complete training 
44.20 	about the reporting requirements and definitions in section 626.557, as section 245A.65, 
44.21 	subdivision 3 requires.
44.22 	(d) At least once every five years, each foster parent and caregiver must complete one 
44.23 	hour of training about reducing the risk of sudden unexpected infant death and abusive head 
44.24 	trauma, if required by subdivision 5.
44.25 	(e) At least once every five years, each foster parent and caregiver must complete training 
44.26 	regarding child passenger restraint systems, if required by subdivision 4.
44.27 	(f) The commissioner may provide each foster parent with a nonexclusive list of eligible 
44.28 	training topics and resources that fulfill the remaining hours of required yearly training.
44.29 		Subd. 9.Documentation of training. (a) The licensing agency must document the 
44.30 	trainings that this section requires on a form that the commissioner has developed.
44.31 	(b) For training required under subdivision 6, the agency must retain a training and skills 
44.32 	form on file and update the form each year for each foster care provider who completes 
44.33 	training about caring for a child who relies on medical equipment to sustain the child's life 
45.1 	or monitor the child's medical condition. The agency placing the child must obtain a copy 
45.2 	of the training and skills form from the foster parent or from the agency supervising the 
45.3 	foster parent. The agency must retain the form and any updated information on file for the 
45.4 	placement's duration. The form must be available to the parent or guardian and the child's 
45.5 	social worker for the social worker to make an informed placement decision. The agency 
45.6 	must use the training and skills form that the commissioner has developed.

45.7 	EFFECTIVE DATE. This section is effective January 1, 2024.

45.8 	Sec. 33. [245A.61] FOSTER RESIDENCE SETTING STAFF TRAINING 
45.9 	REQUIREMENTS.
45.10 		Subdivision 1.Applicability.  This section applies to foster residence settings, which is 
45.11 	defined as foster care that a license holder licensed under this chapter provides in a home 
45.12 	in which the license holder does not reside. Foster residence setting does not include any 
45.13 	program licensed or certified under Minnesota Rules, parts 2960.0010 to 2960.0710.
45.14 		Subd. 2.Orientation. The license holder must ensure that each staff person attends and 
45.15 	successfully completes at least six hours of orientation training before the staff person has 
45.16 	unsupervised contact with a foster child. Orientation training hours are not counted toward 
45.17 	the hours of yearly training. Orientation must include training about the following:
45.18 	(1) emergency procedures including evacuation routes, emergency telephone numbers, 
45.19 	severe storm and tornado procedures, and the location of facility alarms and equipment;
45.20 	(2) all relevant laws, rules, and legal issues, including reporting requirements for 
45.21 	maltreatment, abuse, and neglect specified in chapter 260E and section 626.557 and other 
45.22 	reporting requirements based on the children's ages;
45.23 	(3) cultural diversity, gender sensitivity, culturally specific services, and information 
45.24 	about discrimination and racial bias to ensure that staff persons are culturally sensitive and 
45.25 	culturally competent to care for foster children according to section 260C.212, subdivision 
45.26 	11;
45.27 	(4) general and special needs, including disability needs, of children and families served;
45.28 	(5) operational policies and procedures of the license holder;
45.29 	(6) data practices requirements and issues;
45.30 	(7) two hours of training about children's mental health disorders according to subdivision 
45.31 	3;
46.1 	(8) if required by subdivision 4, the proper use and installation of child passenger restraint 
46.2 	systems in motor vehicles;
46.3 	(9) if required by subdivision 5, at least one hour of training about reducing the risk of 
46.4 	sudden unexpected infant death and abusive head trauma from shaking infants and young 
46.5 	children; and
46.6 	(10) if required by subdivision 6, caring for a child who relies on medical equipment to 
46.7 	sustain the child's life or monitor the child's medical condition.
46.8 		Subd. 3.Mental health training.  Prior to caring for a child, a staff person must complete 
46.9 	two hours of training that addresses the causes, symptoms, and key warning signs of mental 
46.10 	health disorders; cultural considerations; and effective approaches to manage a child's 
46.11 	behaviors. A foster residence staff person must complete at least one hour of the yearly 
46.12 	training requirement regarding children's mental health issues and treatment. The 
46.13 	commissioner of human services shall approve a mental health training curriculum that 
46.14 	satisfies the requirements of this subdivision.
46.15 		Subd. 4.Child passenger restraint systems.  Prior to transporting a child younger than 
46.16 	eight years of age in a motor vehicle, a license holder or staff person must satisfactorily 
46.17 	complete training about the proper use and installation of child restraint systems in motor 
46.18 	vehicles. An individual who is certified and approved by the Office of Traffic Safety within 
46.19 	the Department of Public Safety must provide training to a license holder or staff person 
46.20 	about the proper use and installation of child restraint systems in motor vehicles.
46.21 	At a minimum, the training must address the proper use of child passenger restraint 
46.22 	systems based on a child's size, weight, and age and the proper installation of a car seat or 
46.23 	booster seat in the motor vehicle transporting the child. Each license holder or staff person 
46.24 	transporting a child younger than eight years of age in a motor vehicle must complete the 
46.25 	training in this subdivision at least once every five years.
46.26 		Subd. 5.Training about the risk of sudden unexpected infant death and abusive 
46.27 	head trauma.  (a) A license holder who cares for an infant or a child five years of age or 
46.28 	younger must document that each staff person has satisfactorily completed at least one hour 
46.29 	of training about reducing the risk of sudden unexpected infant death pursuant to section 
46.30 	245A.1435 and abusive head trauma from shaking infants and young children. Each staff 
46.31 	person must complete the training in this subdivision prior to caring for an infant or a child 
46.32 	five years of age or younger. The county or private licensing agency responsible for 
46.33 	monitoring the child foster care provider under section 245A.16 must approve of the training 
47.1 	about reducing the risk of sudden unexpected infant death and abusive head trauma from 
47.2 	shaking infants and young children.
47.3 	(b) At a minimum, the training must address the risk factors related to sudden unexpected 
47.4 	infant death and abusive head trauma, means of reducing the risk of sudden unexpected 
47.5 	infant death and abusive head trauma, and license holder communication with parents 
47.6 	regarding reducing the risk of sudden unexpected infant death and abusive head trauma 
47.7 	from shaking infants and young children.
47.8 	(c) Each staff person caring for an infant or a child five years of age or younger must 
47.9 	complete the training in this subdivision at least once every five years.
47.10 		Subd. 6.Training on use of medical equipment.  (a) If caring for a child who relies on 
47.11 	medical equipment to sustain the child's life or monitor a child's medical condition, the 
47.12 	license holder or staff person must complete training to operate the child's equipment. A 
47.13 	health care professional or an individual who provides training on the equipment must train 
47.14 	the license holder or staff person about how to operate the child's equipment.
47.15 	(b) A license holder is exempt from this subdivision if:
47.16 	(1) the license holder is currently caring for an individual who is using the same 
47.17 	equipment in the foster home and each staff person has received training to use the 
47.18 	equipment; or
47.19 	(2) the license holder has written documentation that, within the past six months, the 
47.20 	license holder has cared for an individual who relied on the same equipment and each current 
47.21 	staff person has received training to use the same equipment.
47.22 		Subd. 7.Fetal alcohol spectrum disorders training.  (a) For each staff person, at least 
47.23 	one hour of their yearly training requirement in subdivision 9 must be about fetal alcohol 
47.24 	spectrum disorders. The commissioner of human services shall approve of a fetal alcohol 
47.25 	spectrum disorders training curriculum that satisfies the requirements of this subdivision.
47.26 	(b) A provider who is also licensed to provide home and community-based services 
47.27 	under chapter 245D and the provider's staff are exempt from this subdivision.
47.28 		Subd. 8.Prudent parenting standards training. The license holder must have at least 
47.29 	one on-site staff person who is trained regarding the reasonable and prudent parenting 
47.30 	standards in section 260C.212, subdivision 14, and authorized to apply the reasonable and 
47.31 	prudent parenting standards to decisions involving the approval of a foster child's 
47.32 	participation in age-appropriate and developmentally appropriate extracurricular, social, or 
48.1 	cultural activities. The trained on-site staff person is not required to be available 24 hours 
48.2 	per day.
48.3 		Subd. 9.Yearly training plan and hours. (a) A license holder must develop a yearly 
48.4 	training plan for staff and volunteers. The license holder must modify training for staff and 
48.5 	volunteers each year to meet each person's current needs and provide sufficient training to 
48.6 	accomplish each staff person's duties. To determine the type and amount of training for 
48.7 	each person, the license holder must consider the foster care program's target population, 
48.8 	the program's services, and expected outcomes from the services, as well as the employee's 
48.9 	job description, tasks, and the position's performance indicators.
48.10 	(b) A full-time staff person who has direct contact with children must complete at least 
48.11 	18 hours of in-service training per year, including nine hours of skill development training.
48.12 	(c) A part-time direct care staff person must complete sufficient training to competently 
48.13 	care for children. The amount of training must be at least one hour of training for each 60 
48.14 	hours that the part-time direct care staff person has worked, up to 18 hours of training per 
48.15 	part-time employee per year.
48.16 	(d) Other foster residence staff and volunteers must complete in-service training 
48.17 	requirements each year that are consistent with the foster residence staff and volunteers' 
48.18 	duties.
48.19 	(e) Section 245A.66 requires a license holder to ensure that all staff and volunteers have 
48.20 	training yearly about the reporting requirements and definitions in chapter 260E.
48.21 		Subd. 10.Documentation of training.  (a) For each staff person and volunteer, the 
48.22 	license holder must document the date, the number of training hours, and the name of the 
48.23 	entity that provided the training.
48.24 	(b) For training required under subdivision 6, the agency supervising the foster care 
48.25 	provider must retain a training and skills form on file and update the form each year for 
48.26 	each staff person who completes training about caring for a child who relies on medical 
48.27 	equipment to sustain the child's life or monitor a child's medical condition. The agency 
48.28 	placing the child must obtain a copy of the training and skills form from the foster care 
48.29 	provider or the agency supervising the foster care provider. The placing agency must retain 
48.30 	the form and any updated information on file for the placement's duration. The form must 
48.31 	be available to the child's parent or the child's primary caregiver and the child's social worker 
48.32 	to make an informed placement decision. The agency must use the training and skills form 
48.33 	that the commissioner has developed.

49.1 	EFFECTIVE DATE. This section is effective January 1, 2024.

49.2 	Sec. 34. Minnesota Statutes 2022, section 245A.66, is amended by adding a subdivision 
49.3 	to read:
49.4 		Subd. 4.Ongoing training requirement. (a) In addition to the orientation training 
49.5 	required by the applicable licensing rules and statutes, children's residential facility and 
49.6 	private child-placing agency license holders must provide a training annually on the 
49.7 	maltreatment of minors reporting requirements and definitions in chapter 260E to each 
49.8 	mandatory reporter, as described in section 260E.06, subdivision 1.
49.9 	(b) In addition to the orientation training required by the applicable licensing rules and 
49.10 	statutes, all family child foster care license holders and caregivers and foster residence 
49.11 	setting staff and volunteers that are mandatory reporters as described in section 260E.06, 
49.12 	subdivision 1, must complete training each year on the maltreatment of minors reporting 
49.13 	requirements and definitions in chapter 260E.

49.14 	EFFECTIVE DATE. This section is effective January 1, 2024.

49.15 	Sec. 35. Minnesota Statutes 2022, section 245C.02, subdivision 6a, is amended to read:
49.16 		Subd. 6a.Child care background study subject. (a) "Child care background study 
49.17 	subject" means an individual who is affiliated with a licensed child care center, certified 
49.18 	license-exempt child care center, licensed family child care program, or legal nonlicensed 
49.19 	child care provider authorized under chapter 119B, and who is:
49.20 	(1) employed by a child care provider for compensation;
49.21 	(2) assisting in the care of a child for a child care provider;
49.22 	(3) a person applying for licensure, certification, or enrollment;
49.23 	(4) a controlling individual as defined in section 245A.02, subdivision 5a;
49.24 	(5) an individual 13 years of age or older who lives in the household where the licensed 
49.25 	program will be provided and who is not receiving licensed services from the program;
49.26 	(6) an individual ten to 12 years of age who lives in the household where the licensed 
49.27 	services will be provided when the commissioner has reasonable cause as defined in section 
49.28 	245C.02, subdivision 15;
49.29 	(7) an individual who, without providing direct contact services at a licensed program, 
49.30 	certified program, or program authorized under chapter 119B, may have unsupervised access 
50.1 	to a child receiving services from a program when the commissioner has reasonable cause 
50.2 	as defined in section 245C.02, subdivision 15; or
50.3 	(8) a volunteer, contractor providing services for hire in the program, prospective 
50.4 	employee, or other individual who has unsupervised physical access to a child served by a 
50.5 	program and who is not under supervision by an individual listed in clause (1) or (5), 
50.6 	regardless of whether the individual provides program services.
50.7 	(b) Notwithstanding paragraph (a), an individual who is providing services that are not 
50.8 	part of the child care program is not required to have a background study if:
50.9 	(1) the child receiving services is signed out of the child care program for the duration 
50.10 	that the services are provided;
50.11 	(2) the licensed child care center, certified license-exempt child care center, licensed 
50.12 	family child care program, or legal nonlicensed child care provider authorized under chapter 
50.13 	119B has obtained advanced written permission from the parent authorizing the child to 
50.14 	receive the services, which is maintained in the child's record;
50.15 	(3) the licensed child care center, certified license-exempt child care center, licensed 
50.16 	family child care program, or legal nonlicensed child care provider authorized under chapter 
50.17 	119B maintains documentation on site that identifies the individual service provider and 
50.18 	the services being provided; and
50.19 	(4) the licensed child care center, certified license-exempt child care center, licensed 
50.20 	family child care program, or legal nonlicensed child care provider authorized under chapter 
50.21 	119B ensures that the service provider does not have unsupervised access to a child not 
50.22 	receiving the provider's services.

50.23 	Sec. 36. Minnesota Statutes 2022, section 245C.02, subdivision 11c, is amended to read:
50.24 		Subd. 11c.Entity. "Entity" means any program, organization, license holder, or agency 
50.25 	initiating required to initiate or submit a background study.

50.26 	Sec. 37. Minnesota Statutes 2022, section 245C.02, is amended by adding a subdivision 
50.27 	to read:
50.28 		Subd. 11f.Employee. "Employee" means an individual who provides services or seeks 
50.29 	to provide services for or through the entity with which they are required to be affiliated in 
50.30 	NETStudy 2.0 and who is subject to oversight by the entity, which includes but is not limited 
50.31 	to continuous, direct supervision by the entity and being subject to immediate removal from 
51.1 	providing direct contact services by the entity when required. This subdivision does not 
51.2 	apply to child care background study subjects under subdivision 6a.

51.3 	Sec. 38. Minnesota Statutes 2022, section 245C.02, is amended by adding a subdivision 
51.4 	to read:
51.5 		Subd. 22.Volunteer. "Volunteer" means an individual who provides or seeks to provide 
51.6 	services for or through an entity without direct compensation for services provided, is 
51.7 	required to be affiliated in NETStudy 2.0 and is subject to oversight by the entity, including 
51.8 	but not limited to continuous, direct supervision and immediate removal from providing 
51.9 	direct contact services when required. This subdivision does not apply to child care 
51.10 	background study subjects under subdivision 6a.

51.11 	Sec. 39. Minnesota Statutes 2022, section 245C.03, subdivision 1, is amended to read:
51.12 		Subdivision 1.Licensed programs. (a) The commissioner shall conduct a background 
51.13 	study on:
51.14 	(1) the person or persons applying for a license;
51.15 	(2) an individual age 13 and over living in the household where the licensed program 
51.16 	will be provided who is not receiving licensed services from the program;
51.17 	(3) current or prospective employees or contractors of the applicant or license holder 
51.18 	who will have direct contact with persons served by the facility, agency, or program;
51.19 	(4) volunteers or student volunteers who will have direct contact with persons served 
51.20 	by the program to provide program services if the contact is not under the continuous, direct 
51.21 	supervision by an individual listed in clause (1) or (3);
51.22 	(5) an individual age ten to 12 living in the household where the licensed services will 
51.23 	be provided when the commissioner has reasonable cause as defined in section 245C.02, 
51.24 	subdivision 15;
51.25 	(6) an individual who, without providing direct contact services at a licensed program, 
51.26 	may have unsupervised access to children or vulnerable adults receiving services from a 
51.27 	program, when the commissioner has reasonable cause as defined in section 245C.02, 
51.28 	subdivision 15;
51.29 	(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
51.30 	(8) notwithstanding the other requirements in this subdivision, child care background 
51.31 	study subjects as defined in section 245C.02, subdivision 6a; and
52.1 	(9) notwithstanding clause (3), for children's residential facilities and foster residence 
52.2 	settings, any adult working in the facility, whether or not the individual will have direct 
52.3 	contact with persons served by the facility.
52.4 	(b) For child foster care when the license holder resides in the home where foster care 
52.5 	services are provided, a short-term substitute caregiver providing direct contact services for 
52.6 	a child for less than 72 hours of continuous care is not required to receive a background 
52.7 	study under this chapter.
52.8 	(c) This subdivision applies to the following programs that must be licensed under 
52.9 	chapter 245A:
52.10 	(1) adult foster care;
52.11 	(2) child foster care;
52.12 	(3) children's residential facilities;
52.13 	(4) family child care;
52.14 	(5) licensed child care centers;
52.15 	(6) licensed home and community-based services under chapter 245D;
52.16 	(7) residential mental health programs for adults;
52.17 	(8) substance use disorder treatment programs under chapter 245G;
52.18 	(9) withdrawal management programs under chapter 245F;
52.19 	(10) adult day care centers;
52.20 	(11) family adult day services;
52.21 	(12) independent living assistance for youth;
52.22 	(13) (12) detoxification programs;
52.23 	(14) (13) community residential settings; and
52.24 	(15) (14) intensive residential treatment services and residential crisis stabilization under 
52.25 	chapter 245I.

52.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

53.1 	Sec. 40. Minnesota Statutes 2022, section 245C.03, subdivision 1a, is amended to read:
53.2 		Subd. 1a.Procedure. (a) Individuals and organizations that are required under this 
53.3 	section to have or initiate background studies shall comply with the requirements of this 
53.4 	chapter.
53.5 	(b) All studies conducted under this section shall be conducted according to sections 
53.6 	299C.60 to 299C.64, including the consent and self-disclosure required in section 299C.62, 
53.7 	subdivision 2. This requirement does not apply to subdivisions 1, paragraph (c), clauses (2) 
53.8 	to (5), and 6a.

53.9 	Sec. 41. Minnesota Statutes 2022, section 245C.03, subdivision 4, is amended to read:
53.10 		Subd. 4.Personnel pool agencies; temporary personnel agencies; educational 
53.11 	programs; professional services agencies. (a) The commissioner also may conduct studies 
53.12 	on individuals specified in subdivision 1, paragraph (a), clauses (3) and (4), when the studies 
53.13 	are initiated by:
53.14 	(1) personnel pool agencies;
53.15 	(2) temporary personnel agencies;
53.16 	(3) educational programs that train individuals by providing direct contact services in 
53.17 	licensed programs; and
53.18 	(4) professional services agencies that are not licensed and which contract that work
53.19 	with licensed programs to provide direct contact services or individuals who provide direct 
53.20 	contact services.
53.21 	(b) Personnel pool agencies, temporary personnel agencies, and professional services 
53.22 	agencies must employ the individuals providing direct care services for children, people 
53.23 	with disabilities, or the elderly. Individuals must be affiliated in NETStudy 2.0 and subject 
53.24 	to oversight by the entity, which includes but is not limited to continuous, direct supervision 
53.25 	by the entity and being subject to immediate removal from providing direct care services 
53.26 	when required.

53.27 	Sec. 42. Minnesota Statutes 2022, section 245C.03, subdivision 5, is amended to read:
53.28 		Subd. 5.Other state agencies. The commissioner shall conduct background studies on 
53.29 	applicants and license holders under the jurisdiction of other state agencies who are required 
53.30 	in other statutory sections to initiate background studies under this chapter, including the 
54.1 	applicant's or license holder's employees, contractors, and volunteers when required under 
54.2 	other statutory sections.

54.3 	Sec. 43. Minnesota Statutes 2022, section 245C.03, subdivision 5a, is amended to read:
54.4 		Subd. 5a.Facilities serving children or adults licensed or regulated by the 
54.5 	Department of Health. (a) Except as specified in paragraph (b), the commissioner shall 
54.6 	conduct background studies of:
54.7 	(1) individuals providing services who have direct contact, as defined under section 
54.8 	245C.02, subdivision 11, with patients and residents in hospitals, boarding care homes, 
54.9 	outpatient surgical centers licensed under sections 144.50 to 144.58; nursing homes and 
54.10 	home care agencies licensed under chapter 144A; assisted living facilities and assisted living 
54.11 	facilities with dementia care licensed under chapter 144G; and board and lodging 
54.12 	establishments that are registered to provide supportive or health supervision services under 
54.13 	section 157.17;
54.14 	(2) individuals specified in subdivision 2 who provide direct contact services in a nursing 
54.15 	home or a home care agency licensed under chapter 144A; an assisted living facility or 
54.16 	assisted living facility with dementia care licensed under chapter 144G; or a boarding care 
54.17 	home licensed under sections 144.50 to 144.58. If the individual undergoing a study resides 
54.18 	outside of Minnesota, the study must include a check for substantiated findings of 
54.19 	maltreatment of adults and children in the individual's state of residence when the state 
54.20 	makes the information available;
54.21 	(3) all other employees in assisted living facilities or assisted living facilities with 
54.22 	dementia care licensed under chapter 144G, nursing homes licensed under chapter 144A, 
54.23 	and boarding care homes licensed under sections 144.50 to 144.58. A disqualification of 
54.24 	an individual in this section shall disqualify the individual from positions allowing direct 
54.25 	contact with or access to patients or residents receiving services. "Access" means physical 
54.26 	access to a client or the client's personal property without continuous, direct supervision as 
54.27 	defined in section 245C.02, subdivision 8, when the employee's employment responsibilities 
54.28 	do not include providing direct contact services;
54.29 	(4) individuals employed by a supplemental nursing services agency, as defined under 
54.30 	section 144A.70, who are providing services in health care facilities;
54.31 	(5) controlling persons of a supplemental nursing services agency, as defined by section 
54.32 	144A.70; and
55.1 	(6) license applicants, owners, managerial officials, and controlling individuals who are 
55.2 	required under section 144A.476, subdivision 1, or 144G.13, subdivision 1, to undergo a 
55.3 	background study under this chapter, regardless of the licensure status of the license applicant, 
55.4 	owner, managerial official, or controlling individual.
55.5 	(b) The commissioner of human services shall not conduct An entity shall not initiate a 
55.6 	background study on any individual identified in paragraph (a), clauses (1) to (5), if the 
55.7 	individual has a valid license issued by a health-related licensing board as defined in section 
55.8 	214.01, subdivision 2, and has completed the criminal background check as required in 
55.9 	section 214.075. An entity that is affiliated with individuals who meet the requirements of 
55.10 	this paragraph must separate those individuals from the entity's roster for NETStudy 2.0.
55.11 	The Department of Human Services is not liable for conducting background studies that 
55.12 	have been submitted or not removed from the roster in violation of this provision.
55.13 	(c) If a facility or program is licensed by the Department of Human Services and the 
55.14 	Department of Health and is subject to the background study provisions of this chapter, the 
55.15 	Department of Human Services is solely responsible for the background studies of individuals 
55.16 	in the jointly licensed program.
55.17 	(d) The commissioner of health shall review and make decisions regarding reconsideration 
55.18 	requests, including whether to grant variances, according to the procedures and criteria in 
55.19 	this chapter. The commissioner of health shall inform the requesting individual and the 
55.20 	Department of Human Services of the commissioner of health's decision regarding the 
55.21 	reconsideration. The commissioner of health's decision to grant or deny a reconsideration 
55.22 	of a disqualification is a final administrative agency action.

55.23 	Sec. 44. Minnesota Statutes 2022, section 245C.031, subdivision 1, is amended to read:
55.24 		Subdivision 1.Alternative background studies. (a) The commissioner shall conduct 
55.25 	an alternative background study of individuals listed in this section.
55.26 	(b) Notwithstanding other sections of this chapter, all alternative background studies 
55.27 	except subdivision 12 shall be conducted according to this section and with sections 299C.60 
55.28 	to 299C.64, including the consent and self-disclosure required in section 299C.62, subdivision 
55.29 	2.
55.30 	(c) All terms in this section shall have the definitions provided in section 245C.02.
55.31 	(d) The entity that submits an alternative background study request under this section 
55.32 	shall submit the request to the commissioner according to section 245C.05.
55.33 	(e) The commissioner shall comply with the destruction requirements in section 245C.051.
56.1 	(f) Background studies conducted under this section are subject to the provisions of 
56.2 	section 245C.32.
56.3 	(g) The commissioner shall forward all information that the commissioner receives under 
56.4 	section 245C.08 to the entity that submitted the alternative background study request under 
56.5 	subdivision 2. The commissioner shall not make any eligibility determinations regarding 
56.6 	background studies conducted under this section.

56.7 	Sec. 45. Minnesota Statutes 2022, section 245C.031, subdivision 4, is amended to read:
56.8 		Subd. 4.Applicants, licensees, and other occupations regulated by the commissioner 
56.9 	of health. The commissioner shall conduct an alternative background study, including a 
56.10 	check of state data, and a national criminal history records check of the following individuals. 
56.11 	For studies under this section, the following persons shall complete a consent form and 
56.12 	criminal history disclosure form:
56.13 	(1) An applicant for initial licensure, temporary licensure, or relicensure after a lapse in 
56.14 	licensure as an audiologist or speech-language pathologist or an applicant for initial 
56.15 	certification as a hearing instrument dispenser who must submit to a background study 
56.16 	under section 144.0572.
56.17 	(2) An applicant for a renewal license or certificate as an audiologist, speech-language 
56.18 	pathologist, or hearing instrument dispenser who was licensed or obtained a certificate 
56.19 	before January 1, 2018.

56.20 	Sec. 46. Minnesota Statutes 2022, section 245C.05, subdivision 1, is amended to read:
56.21 		Subdivision 1.Individual studied. (a) The individual who is the subject of the 
56.22 	background study must provide the applicant, license holder, or other entity under section 
56.23 	245C.04 with sufficient information to ensure an accurate study, including:
56.24 	(1) the individual's first, middle, and last name and all other names by which the 
56.25 	individual has been known;
56.26 	(2) current home address, city, and state of residence;
56.27 	(3) current zip code;
56.28 	(4) sex;
56.29 	(5) date of birth;
57.1 	(6) driver's license number or state identification number or, for those without a driver's 
57.2 	license or state identification card, an acceptable form of identification as determined by 
57.3 	the commissioner; and
57.4 	(7) upon implementation of NETStudy 2.0, the home address, city, county, and state of 
57.5 	residence for the past five years.
57.6 	(b) Every subject of a background study conducted or initiated by counties or private 
57.7 	agencies under this chapter must also provide the home address, city, county, and state of 
57.8 	residence for the past five years.
57.9 	(c) Every subject of a background study related to private agency adoptions or related 
57.10 	to child foster care licensed through a private agency, who is 18 years of age or older, shall 
57.11 	also provide the commissioner a signed consent for the release of any information received 
57.12 	from national crime information databases to the private agency that initiated the background 
57.13 	study.
57.14 	(d) The subject of a background study shall provide fingerprints and a photograph as 
57.15 	required in subdivision 5.
57.16 	(e) The subject of a background study shall submit a completed criminal and maltreatment 
57.17 	history records check consent form and criminal history disclosure form for applicable 
57.18 	national and state level record checks.

57.19 	Sec. 47. Minnesota Statutes 2022, section 245C.05, is amended by adding a subdivision 
57.20 	to read:
57.21 		Subd. 8.Study submitted. The entity with which the background study subject is seeking 
57.22 	affiliation shall initiate the background study in the NETStudy 2.0 system.

57.23 	Sec. 48. Minnesota Statutes 2022, section 245C.07, is amended to read:
57.24 	245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
57.25 	(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other 
57.26 	entity owns multiple programs or services that are licensed by the Department of Human 
57.27 	Services, Department of Health, or Department of Corrections, only one background study 
57.28 	is required for an individual who provides direct contact services in one or more of the 
57.29 	licensed programs or services if:
58.1 	(1) the license holder designates one individual with one address and telephone number 
58.2 	as the person to receive sensitive background study information for the multiple licensed 
58.3 	programs or services that depend on the same background study; and
58.4 	(2) the individual designated to receive the sensitive background study information is 
58.5 	capable of determining, upon request of the department, whether a background study subject 
58.6 	is providing direct contact services in one or more of the license holder's programs or services 
58.7 	and, if so, at which location or locations.
58.8 	(b) When a license holder maintains background study compliance for multiple licensed 
58.9 	programs according to paragraph (a), and one or more of the licensed programs closes, the 
58.10 	license holder shall immediately notify the commissioner which staff must be transferred 
58.11 	to an active license so that the background studies can be electronically paired with the 
58.12 	license holder's active program.
58.13 	(c) When a background study is being initiated by a licensed program or service or a 
58.14 	foster care provider that is also licensed under chapter 144G, a study subject affiliated with 
58.15 	multiple licensed programs or services may attach to the background study form a cover 
58.16 	letter indicating the additional names of the programs or services, addresses, and background 
58.17 	study identification numbers.
58.18 	When the commissioner receives a notice, the commissioner shall notify each program 
58.19 	or service identified by the background study subject of the study results.
58.20 	The background study notice the commissioner sends to the subsequent agencies shall 
58.21 	satisfy those programs' or services' responsibilities for initiating a background study on that 
58.22 	individual.
58.23 	(d) If a background study was conducted on an individual related to child foster care 
58.24 	and the requirements under paragraph (a) are met, the background study is transferable 
58.25 	across all licensed programs. If a background study was conducted on an individual under 
58.26 	a license other than child foster care and the requirements under paragraph (a) are met, the 
58.27 	background study is transferable to all licensed programs except child foster care.
58.28 	(e) The provisions of this section that allow a single background study in one or more 
58.29 	licensed programs or services do not apply to background studies submitted by adoption 
58.30 	agencies, supplemental nursing services agencies, personnel pool agencies, educational 
58.31 	programs, professional services agencies, temporary personnel agencies, and unlicensed 
58.32 	personal care provider organizations.
59.1 	(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the 
59.2 	system used to document when a background study subject is affiliated with multiple entities. 
59.3 	For a background study to be transferable:
59.4 	(1) the background study subject must be on and moving to a roster for which the person 
59.5 	designated to receive sensitive background study information is the same; and
59.6 	(2) the same entity must own or legally control both the roster from which the transfer 
59.7 	is occurring and the roster to which the transfer is occurring. For an entity that holds or 
59.8 	controls multiple licenses, or unlicensed personal care provider organizations, there must 
59.9 	be a common highest level entity that has a legally identifiable structure that can be verified 
59.10 	through records available from the secretary of state.

59.11 	Sec. 49. Minnesota Statutes 2022, section 245C.10, subdivision 4, is amended to read:
59.12 		Subd. 4.Temporary personnel agencies, personnel pool agencies, educational 
59.13 	programs, and professional services agencies. The commissioner shall recover the cost 
59.14 	of the background studies initiated by temporary personnel agencies, personnel pool agencies,
59.15 	educational programs, and professional services agencies that initiate background studies 
59.16 	under section 245C.03, subdivision 4, through a fee of no more than $42 per study charged 
59.17 	to the agency. The fees collected under this subdivision are appropriated to the commissioner 
59.18 	for the purpose of conducting background studies.

59.19 	Sec. 50. Minnesota Statutes 2022, section 245C.30, subdivision 2, is amended to read:
59.20 		Subd. 2.Disclosure of reason for disqualification. (a) The commissioner may not grant 
59.21 	a variance for a disqualified individual unless the applicant, license-exempt child care center 
59.22 	certification holder, or license holder requests the variance and the disqualified individual 
59.23 	provides written consent for the commissioner to disclose to the applicant, license-exempt 
59.24 	child care center certification holder, or license holder the reason for the disqualification.
59.25 	(b) This subdivision does not apply to programs licensed to provide family child care 
59.26 	for children, foster care for children in the provider's own home, or foster care or day care 
59.27 	services for adults in the provider's own home. When the commissioner grants a variance 
59.28 	for a disqualified individual in connection with a license to provide the services specified 
59.29 	in this paragraph, the disqualified individual's consent is not required to disclose the reason 
59.30 	for the disqualification to the license holder in the variance issued under subdivision 1, 
59.31 	provided that the commissioner may not disclose the reason for the disqualification if the 
59.32 	disqualification is based on a felony-level conviction for a drug-related offense within the 
59.33 	past five years.

60.1 	Sec. 51. Minnesota Statutes 2022, section 245C.31, subdivision 1, is amended to read:
60.2 		Subdivision 1.Board determines disciplinary or corrective action. (a) The 
60.3 	commissioner shall notify a health-related licensing board as defined in section 214.01, 
60.4 	subdivision 2, if the commissioner determines that an individual who is licensed by the 
60.5 	health-related licensing board and who is included on the board's roster list provided in 
60.6 	accordance with subdivision 3a is responsible for substantiated maltreatment under section 
60.7 	626.557 or chapter 260E, in accordance with subdivision 2. Upon receiving notification, 
60.8 	the health-related licensing board shall make a determination as to whether to impose 
60.9 	disciplinary or corrective action under chapter 214.
60.10 	(b) This section does not apply to a background study of an individual regulated by a 
60.11 	health-related licensing board if the individual's study is related to child foster care, adult 
60.12 	foster care, or family child care licensure.

60.13 	Sec. 52. Minnesota Statutes 2022, section 245C.33, subdivision 4, is amended to read:
60.14 		Subd. 4.Information commissioner reviews. (a) The commissioner shall review the 
60.15 	following information regarding the background study subject:
60.16 	(1) the information under section 245C.08, subdivisions 1, 3, and 4;
60.17 	(2) information from the child abuse and neglect registry for any state in which the 
60.18 	subject has resided for the past five years; and
60.19 	(3) information from national crime information databases, when required under section 
60.20 	245C.08.
60.21 	(b) The commissioner shall provide any information collected under this subdivision to 
60.22 	the county or private agency that initiated the background study. The commissioner shall 
60.23 	also provide the agency:
60.24 	(1) with a notice whether the information collected shows that the subject of the 
60.25 	background study has a conviction listed in United States Code, title 42, section 
60.26 	671(a)(20)(A); and.
60.27 	(2) for background studies conducted under subdivision 1, paragraph (a), the date of all 
60.28 	adoption-related background studies completed on the subject by the commissioner after 
60.29 	June 30, 2007, and the name of the county or private agency that initiated the adoption-related 
60.30 	background study.

61.1 	Sec. 53. Minnesota Statutes 2022, section 245E.06, subdivision 3, is amended to read:
61.2 		Subd. 3.Appeal of department action. A provider's rights related to the department's 
61.3 	action taken under this chapter against a provider are established in sections 119B.16and,
61.4 	119B.161, and 119B.162.

61.5 	Sec. 54. Minnesota Statutes 2022, section 245G.13, subdivision 2, is amended to read:
61.6 		Subd. 2.Staff development. (a) A license holder must ensure that each staff member 
61.7 	has the training described in this subdivision.
61.8 	(b) Each staff member must be trained every two years in:
61.9 	(1) client confidentiality rules and regulations and client ethical boundaries; and
61.10 	(2) emergency procedures and client rights as specified in sections 144.651, 148F.165, 
61.11 	and 253B.03.
61.12 	(c) Annually each staff member with direct contact must be trained on mandatory 
61.13 	reporting as specified in sections 245A.65, 626.557, and 626.5572, and chapter 260E, 
61.14 	including specific training covering the license holder's policies for obtaining a release of 
61.15 	client information.
61.16 	(d) Upon employment and annually thereafter, each staff member with direct contact 
61.17 	must receive training on HIV minimum standards according to section 245A.19.
61.18 	(e) The license holder must ensure that each mandatory reporter, as described in section 
61.19 	260E.06, subdivision 1, is trained on the maltreatment of minors reporting requirements 
61.20 	and definitions in chapter 260E before the mandatory reporter has direct contact, as defined 
61.21 	in section 245C.02, subdivision 11, with a person served by the program.
61.22 	(e) (f) A treatment director, supervisor, nurse, or counselor must have a minimum of 12 
61.23 	hours of training in co-occurring disorders that includes competencies related to philosophy, 
61.24 	trauma-informed care, screening, assessment, diagnosis and person-centered treatment 
61.25 	planning, documentation, programming, medication, collaboration, mental health 
61.26 	consultation, and discharge planning. A new staff member who has not obtained the training 
61.27 	must complete the training within six months of employment. A staff member may request, 
61.28 	and the license holder may grant, credit for relevant training obtained before employment, 
61.29 	which must be documented in the staff member's personnel file.

61.30 	EFFECTIVE DATE. This section is effective January 1, 2024.

62.1 	Sec. 55. Minnesota Statutes 2022, section 245H.03, is amended by adding a subdivision 
62.2 	to read:
62.3 		Subd. 5.Notification required. (a) A certification holder must notify the commissioner, 
62.4 	in a manner prescribed by the commissioner, and obtain the commissioner's approval before 
62.5 	making any changes:
62.6 	(1) to the certification holder as defined in section 245H.01, subdivision 4;
62.7 	(2) to the authorized agent as defined in section 245A.02, subdivision 3b;
62.8 	(3) to the certification holder information on file with the secretary of state or Department 
62.9 	of Revenue;
62.10 	(4) in the location of the program certified under this chapter;
62.11 	(5) to the ages of children served by the program; or
62.12 	(6) to the certified center's schedule including its:
62.13 	(i) yearly schedule;
62.14 	(ii) hours of operation; or
62.15 	(iii) days of the week it is open.
62.16 	(b) When, for reasons beyond the certification holder's control, a certification holder 
62.17 	cannot provide the commissioner with prior notice of the changes in paragraph (a), the 
62.18 	certification holder must notify the commissioner by the tenth business day after the change 
62.19 	and must provide any additional information requested by the commissioner.
62.20 	(c) When a certification holder notifies the commissioner of a change to the certification 
62.21 	holder information on file with the secretary of state, the certification holder must provide 
62.22 	documentation of the change.
62.23 	(d) Upon implementation of the provider licensing and reporting hub, certification holders 
62.24 	must enter and update information in the hub in a manner prescribed by the commissioner.

62.25 	EFFECTIVE DATE. This section is effective August 1, 2023.

62.26 	Sec. 56. Minnesota Statutes 2022, section 245H.05, is amended to read:
62.27 	245H.05 MONITORING AND INSPECTIONS.
62.28 	(a) The commissioner must conduct an on-site inspection of a certified license-exempt 
62.29 	child care center at least annually once each calendar year to determine compliance with 
62.30 	the health, safety, and fire standards specific to a certified license-exempt child care center.
63.1 	(b) No later than November 19, 2017, the commissioner shall make publicly available 
63.2 	on the department's website the results of inspection reports for all certified centers including 
63.3 	the number of deaths, serious injuries, and instances of substantiated child maltreatment 
63.4 	that occurred in certified centers each year.

63.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

63.6 	Sec. 57. Minnesota Statutes 2022, section 245H.08, subdivision 4, is amended to read:
63.7 		Subd. 4.Maximum group size. (a) For a child six weeks old through 16 months old, 
63.8 	the maximum group size shall be no more than eight children.
63.9 	(b) For a child 16 months old through 33 months old, the maximum group size shall be 
63.10 	no more than 14 children.
63.11 	(c) For a child 33 months old through prekindergarten, a maximum group size shall be 
63.12 	no more than 20 children.
63.13 	(d) For a child in kindergarten through 13 years old, a maximum group size shall be no 
63.14 	more than 30 children.
63.15 	(e) The maximum group size applies at all times except during group activity coordination 
63.16 	time not exceeding 15 minutes, during a meal, outdoor activity, field trip, nap and rest, and 
63.17 	special activity including a film, guest speaker, indoor large muscle activity, or holiday 
63.18 	program.
63.19 	(f) Notwithstanding paragraph (d), a certified center may continue to serve a child 14 
63.20 	years of age or older if one of the following conditions is true:
63.21 	(1) the child remains eligible for child care assistance under section 119B.09, subdivision 
63.22 	1, paragraph (e); or
63.23 	(2) the certified center serves only school-age children in a setting that has students 
63.24 	enrolled in no grade higher than 8th grade.

63.25 	EFFECTIVE DATE. This section is effective August 1, 2023.

63.26 	Sec. 58. Minnesota Statutes 2022, section 245H.08, subdivision 5, is amended to read:
63.27 		Subd. 5.Ratios. (a) The minimally acceptable staff-to-child ratios are:

63.28	six weeks old through 16 months old
	1:4
	
63.29	16 months old through 33 months old
	1:7
	
63.30	33 months old through prekindergarten
	1:10
	
63.31	kindergarten through 13 years old
	1:15
	
64.1 	(b) Kindergarten includes a child of sufficient age to have attended the first day of 
64.2 	kindergarten or who is eligible to enter kindergarten within the next four months.
64.3 	(c) For mixed groups, the ratio for the age group of the youngest child applies.
64.4 	(d) Notwithstanding paragraph (a), a certified center may continue to serve a child 14 
64.5 	years of age or older if one of the following conditions is true:
64.6 	(1) the child remains eligible for child care assistance under section 119B.09, subdivision 
64.7 	1, paragraph (e); or
64.8 	(2) the certified center serves only school-age children in a setting that has students 
64.9 	enrolled in no grade higher than 8th grade.

64.10 	EFFECTIVE DATE. This section is effective August 1, 2023.

64.11 	Sec. 59. Minnesota Statutes 2022, section 245H.13, subdivision 3, is amended to read:
64.12 		Subd. 3.Administration of medication. (a) A certified center that chooses to administer 
64.13 	medicine must meet the requirements in this subdivision.
64.14 	(b) The certified center must obtain written permission from the child's parent or legal 
64.15 	guardian before administering prescription medicine, nonprescription medicine, diapering 
64.16 	product, sunscreen lotion, and insect repellent.
64.17 	(c) The certified center must administer nonprescription medicine, diapering product, 
64.18 	sunscreen lotion, and insect repellent according to the manufacturer's instructions unless 
64.19 	provided written instructions by a licensed health professional to use a product differently.
64.20 	(d) The certified center must obtain and follow written instructions from the prescribing 
64.21 	health professional before administering prescription medicine. Medicine with the child's 
64.22 	first and last name and current prescription information on the label is considered written 
64.23 	instructions.
64.24 	(e) The certified center must ensure all prescription and nonprescription medicine is:
64.25 	(1) kept in the medicine's original container with a legible label stating the child's first 
64.26 	and last name;
64.27 	(2) given only to the child whose name is on the label;
64.28 	(3) not given after an expiration date on the label; and
64.29 	(4) returned to the child's parent or legal guardian or destroyed, if unused.
65.1 	(f) The certified center must document in the child's record the administration of
65.2 	prescription and nonprescription medication, including the child's first and last name; the 
65.3 	name of the medication or prescription number; the date, time, and dosage; and the name 
65.4 	and signature of the person who administered the medicine. This documentation must be 
65.5 	available to the child's parent or legal guardian.
65.6 	(g) The certified center must store prescription and nonprescription medicines, insect 
65.7 	repellents, and diapering products according to directions on the original container.

65.8 	EFFECTIVE DATE. This section is effective August 1, 2023.

65.9 	Sec. 60. Minnesota Statutes 2022, section 245H.13, subdivision 7, is amended to read:
65.10 		Subd. 7.Risk reduction plan. (a) The certified center must develop a risk reduction 
65.11 	plan that identifies risks to children served by the child care center. The assessment of risk 
65.12 	must include risks presented by (1) the physical plant where the certified services are 
65.13 	provided, including electrical hazards; and (2) the environment, including the proximity to 
65.14 	busy roads and bodies of water.
65.15 	(b) The certification holder must establish policies and procedures to minimize identified 
65.16 	risks. After any change to the risk reduction plan, the certification holder must inform staff 
65.17 	of the change in the risk reduction plan and document that staff were informed of the change.
65.18 	(c) If middle-school-age children are enrolled in the center and combined with elementary 
65.19 	children, the certification holder must establish policies and procedures to ensure adequate 
65.20 	supervision as defined in subdivision 10 when children are grouped together.

65.21 	EFFECTIVE DATE. This section is effective August 1, 2023.

65.22 	Sec. 61. Minnesota Statutes 2022, section 245H.13, subdivision 9, is amended to read:
65.23 		Subd. 9.Behavior guidance. The certified center must ensure that staff and volunteers 
65.24 	use positive behavior guidance and do not subject children to:
65.25 	(1) corporal punishment, including but not limited to rough handling, shoving, hair 
65.26 	pulling, ear pulling, shaking, slapping, kicking, biting, pinching, hitting, and spanking;
65.27 	(2) humiliation;
65.28 	(3) abusive language;
65.29 	(4) the use of mechanical restraints, including tying;
66.1 	(5) the use of physical restraints other than to physically hold a child when containment 
66.2 	is necessary to protect a child or others from harm; or
66.3 	(6) prone restraints, as prohibited by section 245A.211; or
66.4 	(6) (7) the withholding or forcing of food and other basic needs.

66.5 	Sec. 62. Minnesota Statutes 2022, section 256.9685, subdivision 1a, is amended to read:
66.6 		Subd. 1a.Administrative reconsideration. Notwithstanding section 256B.04, 
66.7 	subdivision 15, the commissioner shall establish an administrative reconsideration process 
66.8 	for appeals of inpatient hospital services determined to be medically unnecessary. A 
66.9 	physician, advanced practice registered nurse, physician assistant, or hospital may request 
66.10 	a reconsideration of the decision that inpatient hospital services are not medically necessary 
66.11 	by submitting a written request for review to the commissioner within 3045 calendar days 
66.12 	after receiving the date of the notice of the decision was mailed. The request for
66.13 	reconsideration process shall take place prior to the procedures of subdivision 1b and shall 
66.14 	be conducted be reviewed by the at least one medical review agent that is independent of 
66.15 	the case under reconsideration. The medical review agent shall make a recommendation to 
66.16 	the commissioner. The commissioner's decision on reconsideration is final and not subject 
66.17 	to appeal under chapter 14.

66.18 	Sec. 63. Minnesota Statutes 2022, section 256.9685, subdivision 1b, is amended to read:
66.19 		Subd. 1b.Appeal of reconsideration. Notwithstanding section 256B.72, the 
66.20 	commissioner may recover inpatient hospital payments for services that have been determined 
66.21 	to be medically unnecessary after the reconsideration and determinations. A physician, 
66.22 	advanced practice registered nurse, physician assistant, or hospital may appeal the result of 
66.23 	the reconsideration process by submitting a written request for review to the commissioner 
66.24 	within 30 days after receiving notice of the action. The commissioner shall review the 
66.25 	medical record and information submitted during the reconsideration process and the medical 
66.26 	review agent's basis for the determination that the services were not medically necessary 
66.27 	for inpatient hospital services. The commissioner shall issue an order upholding or reversing 
66.28 	the decision of the reconsideration process based on the review. The commissioner's decision 
66.29 	under subdivision 1a is appealable by petition for writ of certiorari under chapter 606.

67.1 	Sec. 64. Minnesota Statutes 2022, section 256.9686, is amended by adding a subdivision 
67.2 	to read:
67.3 		Subd. 7a.Medical review agent. "Medical review agent" means the representative of 
67.4 	the commissioner who is authorized by the commissioner to administer medical record 
67.5 	reviews; conduct administrative reconsiderations as defined by section 256.9685, subdivision 
67.6 	1a; and perform other functions as stipulated in the terms of the agent's contract with the 
67.7 	department. Medical records reviews and administrative reconsiderations will be performed 
67.8 	by medical professionals within their scope of expertise, including but not limited to 
67.9 	physicians, physician assistants, advanced practice registered nurses, and registered nurses. 
67.10 	The medical professional performing the review or reconsideration must be on staff with 
67.11 	the medical review agent, in good standing, and licensed to practice in the state where the 
67.12 	medical professional resides.

67.13 	Sec. 65. Minnesota Statutes 2022, section 256B.04, subdivision 15, is amended to read:
67.14 		Subd. 15.Utilization review. (a) Establish on a statewide basis a new program to 
67.15 	safeguard against unnecessary or inappropriate use of medical assistance services, against 
67.16 	excess payments, against unnecessary or inappropriate hospital admissions or lengths of 
67.17 	stay, and against underutilization of services in prepaid health plans, long-term care facilities 
67.18 	or any health care delivery system subject to fixed rate reimbursement. In implementing 
67.19 	the program, the state agency shall utilize both prepayment and postpayment review systems 
67.20 	to determine if utilization is reasonable and necessary. The determination of whether services 
67.21 	are reasonable and necessary shall be made by the commissioner in consultation with a 
67.22 	professional services advisory group or health care consultant appointed by the commissioner.
67.23 	(b) Contracts entered into for purposes of meeting the requirements of this subdivision 
67.24 	shall not be subject to the set-aside provisions of chapter 16C.
67.25 	(c) A recipient aggrieved by the commissioner's termination of services or denial of 
67.26 	future services may appeal pursuant to section 256.045. Unless otherwise provided by law, 
67.27 	a vendor aggrieved by the commissioner's determination that services provided were not 
67.28 	reasonable or necessary may appeal pursuant to the contested case procedures of chapter 
67.29 	14. To appeal, the vendor shall notify the commissioner in writing within 30 days of receiving 
67.30 	the commissioner's notice. The appeal request shall specify each disputed item, the reason 
67.31 	for the dispute, an estimate of the dollar amount involved for each disputed item, the 
67.32 	computation that the vendor believes is correct, the authority in statute or rule upon which 
67.33 	the vendor relies for each disputed item, the name and address of the person or firm with 
68.1 	whom contacts may be made regarding the appeal, and other information required by the 
68.2 	commissioner.
68.3 	(d) The commissioner may select providers to provide case management services to 
68.4 	recipients who use health care services inappropriately or to recipients who are eligible for 
68.5 	other managed care projects. The providers shall be selected based upon criteria that may 
68.6 	include a comparison with a peer group of providers related to the quality, quantity, or cost 
68.7 	of health care services delivered or a review of sanctions previously imposed by health care 
68.8 	services programs or the provider's professional licensing board.

68.9 	Sec. 66. Minnesota Statutes 2022, section 256B.064, is amended to read:
68.10 	256B.064 SANCTIONS; MONETARY RECOVERY.
68.11 		Subdivision 1.Terminating payments to ineligible vendors individuals or entities. The 
68.12 	commissioner may terminate payments under this chapter to any person or facility that, 
68.13 	under applicable federal law or regulation, has been determined to be ineligible for payments 
68.14 	under title XIX of the Social Security Act.
68.15 		Subd. 1a.Grounds for sanctions against vendors. (a) The commissioner may impose 
68.16 	sanctions against a vendor of medical care any individual or entity that receives payments 
68.17 	from medical assistance or provides goods or services for which payment is made from 
68.18 	medical assistance for any of the following: (1) fraud, theft, or abuse in connection with the 
68.19 	provision of medical care goods and services to recipients of public assistance for which 
68.20 	payment is made from medical assistance; (2) a pattern of presentment of false or duplicate 
68.21 	claims or claims for services not medically necessary; (3) a pattern of making false statements 
68.22 	of material facts for the purpose of obtaining greater compensation than that to which the 
68.23 	vendor individual or entity is legally entitled; (4) suspension or termination as a Medicare 
68.24 	vendor; (5) refusal to grant the state agency access during regular business hours to examine 
68.25 	all records necessary to disclose the extent of services provided to program recipients and 
68.26 	appropriateness of claims for payment; (6) failure to repay an overpayment or a fine finally 
68.27 	established under this section; (7) failure to correct errors in the maintenance of health 
68.28 	service or financial records for which a fine was imposed or after issuance of a warning by 
68.29 	the commissioner; and (8) any reason for which a vendor an individual or entity could be 
68.30 	excluded from participation in the Medicare program under section 1128, 1128A, or 
68.31 	1866(b)(2) of the Social Security Act. For the purposes of this section, goods or services 
68.32 	for which payment is made from medical assistance includes but is not limited to care and 
68.33 	services identified in section 256B.0625 or provided pursuant to any federally approved 
68.34 	waiver.
69.1 	(b) The commissioner may impose sanctions against a pharmacy provider for failure to 
69.2 	respond to a cost of dispensing survey under section 256B.0625, subdivision 13e, paragraph 
69.3 	(h).
69.4 		Subd. 1b.Sanctions available. The commissioner may impose the following sanctions 
69.5 	for the conduct described in subdivision 1a: suspension or withholding of payments to a 
69.6 	vendor an individual or entity and suspending or terminating participation in the program, 
69.7 	or imposition of a fine under subdivision 2, paragraph (f). When imposing sanctions under 
69.8 	this section, the commissioner shall consider the nature, chronicity, or severity of the conduct 
69.9 	and the effect of the conduct on the health and safety of persons served by the vendor
69.10 	individual or entity. The commissioner shall suspend a vendor's an individual's or entity's
69.11 	participation in the program for a minimum of five years if the vendor individual or entity
69.12 	is convicted of a crime, received a stay of adjudication, or entered a court-ordered diversion 
69.13 	program for an offense related to a provision of a health service under medical assistance, 
69.14 	including a federally approved waiver, or health care fraud. Regardless of imposition of 
69.15 	sanctions, the commissioner may make a referral to the appropriate state licensing board.
69.16 		Subd. 1c.Grounds for and methods of monetary recovery. (a) The commissioner 
69.17 	may obtain monetary recovery from a vendor who an individual or entity that has been 
69.18 	improperly paid by the department either as a result of conduct described in subdivision 1a 
69.19 	or as a result of a vendor or department an error by the individual or entity submitting the 
69.20 	claim or by the department, regardless of whether the error was intentional. Patterns need 
69.21 	not be proven as a precondition to monetary recovery of erroneous or false claims, duplicate 
69.22 	claims, claims for services not medically necessary, or claims based on false statements.
69.23 	(b) The commissioner may obtain monetary recovery using methods including but not 
69.24 	limited to the following: assessing and recovering money improperly paid and debiting from 
69.25 	future payments any money improperly paid. The commissioner shall charge interest on 
69.26 	money to be recovered if the recovery is to be made by installment payments or debits, 
69.27 	except when the monetary recovery is of an overpayment that resulted from a department 
69.28 	error. The interest charged shall be the rate established by the commissioner of revenue 
69.29 	under section 270C.40.
69.30 		Subd. 1d.Investigative costs. The commissioner may seek recovery of investigative 
69.31 	costs from any vendor of medical care or services who individual or entity that willfully 
69.32 	submits a claim for reimbursement for services that the vendor individual or entity knows, 
69.33 	or reasonably should have known, is a false representation and that results in the payment 
69.34 	of public funds for which the vendor individual or entity is ineligible. Billing errors that 
69.35 	result in unintentional overcharges shall not be grounds for investigative cost recoupment.
70.1 		Subd. 2.Imposition of monetary recovery and sanctions. (a) The commissioner shall 
70.2 	determine any monetary amounts to be recovered and sanctions to be imposed upon a vendor 
70.3 	of medical care an individual or entity under this section. Except as provided in paragraphs 
70.4 	(b) and (d), neither a monetary recovery nor a sanction will be imposed by the commissioner 
70.5 	without prior notice and an opportunity for a hearing, according to chapter 14, on the 
70.6 	commissioner's proposed action, provided that the commissioner may suspend or reduce 
70.7 	payment to a vendor of medical care an individual or entity, except a nursing home or 
70.8 	convalescent care facility, after notice and prior to the hearing if in the commissioner's 
70.9 	opinion that action is necessary to protect the public welfare and the interests of the program.
70.10 	(b) Except when the commissioner finds good cause not to suspend payments under 
70.11 	Code of Federal Regulations, title 42, section 455.23 (e) or (f), the commissioner shall 
70.12 	withhold or reduce payments to a vendor of medical care an individual or entity without 
70.13 	providing advance notice of such withholding or reduction if either of the following occurs:
70.14 	(1) the vendor individual or entity is convicted of a crime involving the conduct described 
70.15 	in subdivision 1a; or
70.16 	(2) the commissioner determines there is a credible allegation of fraud for which an 
70.17 	investigation is pending under the program. Allegations are considered credible when they 
70.18 	have an indicium of reliability and the state agency has reviewed all allegations, facts, and 
70.19 	evidence carefully and acts judiciously on a case-by-case basis. A credible allegation of 
70.20 	fraud is an allegation which has been verified by the state, from any source, including but 
70.21 	not limited to:
70.22 	(i) fraud hotline complaints;
70.23 	(ii) claims data mining; and
70.24 	(iii) patterns identified through provider audits, civil false claims cases, and law 
70.25 	enforcement investigations.
70.26 	Allegations are considered to be credible when they have an indicia of reliability and 
70.27 	the state agency has reviewed all allegations, facts, and evidence carefully and acts 
70.28 	judiciously on a case-by-case basis.
70.29 	(c) The commissioner must send notice of the withholding or reduction of payments 
70.30 	under paragraph (b) within five days of taking such action unless requested in writing by a 
70.31 	law enforcement agency to temporarily withhold the notice. The notice must:
70.32 	(1) state that payments are being withheld according to paragraph (b);
71.1 	(2) set forth the general allegations as to the nature of the withholding action, but need 
71.2 	not disclose any specific information concerning an ongoing investigation;
71.3 	(3) except in the case of a conviction for conduct described in subdivision 1a, state that 
71.4 	the withholding is for a temporary period and cite the circumstances under which withholding 
71.5 	will be terminated;
71.6 	(4) identify the types of claims to which the withholding applies; and
71.7 	(5) inform the vendor individual or entity of the right to submit written evidence for 
71.8 	consideration by the commissioner.
71.9 	(d) The withholding or reduction of payments will not continue after the commissioner 
71.10 	determines there is insufficient evidence of fraud by the vendor individual or entity, or after 
71.11 	legal proceedings relating to the alleged fraud are completed, unless the commissioner has 
71.12 	sent notice of intention to impose monetary recovery or sanctions under paragraph (a). Upon 
71.13 	conviction for a crime related to the provision, management, or administration of a health 
71.14 	service under medical assistance, a payment held pursuant to this section by the commissioner 
71.15 	or a managed care organization that contracts with the commissioner under section 256B.035
71.16 	is forfeited to the commissioner or managed care organization, regardless of the amount 
71.17 	charged in the criminal complaint or the amount of criminal restitution ordered.
71.18 	(d) (e) The commissioner shall suspend or terminate a vendor's an individual's or entity's
71.19 	participation in the program without providing advance notice and an opportunity for a 
71.20 	hearing when the suspension or termination is required because of the vendor's individual's 
71.21 	or entity's exclusion from participation in Medicare. Within five days of taking such action, 
71.22 	the commissioner must send notice of the suspension or termination. The notice must:
71.23 	(1) state that suspension or termination is the result of the vendor's individual's or entity's
71.24 	exclusion from Medicare;
71.25 	(2) identify the effective date of the suspension or termination; and
71.26 	(3) inform the vendor individual or entity of the need to be reinstated to Medicare before 
71.27 	reapplying for participation in the program.
71.28 	(e) (f) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction 
71.29 	is to be imposed, a vendor an individual or entity may request a contested case, as defined 
71.30 	in section 14.02, subdivision 3, by filing with the commissioner a written request of appeal. 
71.31 	The appeal request must be received by the commissioner no later than 30 days after the 
71.32 	date the notification of monetary recovery or sanction was mailed to the vendor individual 
71.33 	or entity. The appeal request must specify:
72.1 	(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount 
72.2 	involved for each disputed item;
72.3 	(2) the computation that the vendor individual or entity believes is correct;
72.4 	(3) the authority in statute or rule upon which the vendor individual or entity relies for 
72.5 	each disputed item;
72.6 	(4) the name and address of the person or entity with whom contacts may be made 
72.7 	regarding the appeal; and
72.8 	(5) other information required by the commissioner.
72.9 	(f) (g) The commissioner may order a vendor an individual or entity to forfeit a fine for 
72.10 	failure to fully document services according to standards in this chapter and Minnesota 
72.11 	Rules, chapter 9505. The commissioner may assess fines if specific required components 
72.12 	of documentation are missing. The fine for incomplete documentation shall equal 20 percent 
72.13 	of the amount paid on the claims for reimbursement submitted by the vendor individual or 
72.14 	entity, or up to $5,000, whichever is less. If the commissioner determines that a vendor an 
72.15 	individual or entity repeatedly violated this chapter, chapter 254B or 245G, or Minnesota 
72.16 	Rules, chapter 9505, related to the provision of services to program recipients and the 
72.17 	submission of claims for payment, the commissioner may order a vendor an individual or 
72.18 	entity to forfeit a fine based on the nature, severity, and chronicity of the violations, in an 
72.19 	amount of up to $5,000 or 20 percent of the value of the claims, whichever is greater.
72.20 	(g) (h) The vendor individual or entity shall pay the fine assessed on or before the 
72.21 	payment date specified. If the vendor individual or entity fails to pay the fine, the 
72.22 	commissioner may withhold or reduce payments and recover the amount of the fine. A 
72.23 	timely appeal shall stay payment of the fine until the commissioner issues a final order.
72.24 		Subd. 3.Vendor Mandates on prohibited payments.  (a) The commissioner shall 
72.25 	maintain and publish a list of each excluded individual and entity that was convicted of a 
72.26 	crime related to the provision, management, or administration of a medical assistance health 
72.27 	service, or suspended or terminated under subdivision 2. Medical assistance payments cannot 
72.28 	be made by a vendor an individual or entity for items or services furnished either directly 
72.29 	or indirectly by an excluded individual or entity, or at the direction of excluded individuals 
72.30 	or entities.
72.31 	(b) The vendor entity must check the exclusion list on a monthly basis and document 
72.32 	the date and time the exclusion list was checked and the name and title of the person who 
73.1 	checked the exclusion list. The vendor entity must immediately terminate payments to an 
73.2 	individual or entity on the exclusion list.
73.3 	(c) A vendor's An entity's requirement to check the exclusion list and to terminate 
73.4 	payments to individuals or entities on the exclusion list applies to each individual or entity 
73.5 	on the exclusion list, even if the named individual or entity is not responsible for direct 
73.6 	patient care or direct submission of a claim to medical assistance.
73.7 	(d) A vendor An entity that pays medical assistance program funds to an individual or 
73.8 	entity on the exclusion list must refund any payment related to either items or services 
73.9 	rendered by an individual or entity on the exclusion list from the date the individual or entity 
73.10 	is first paid or the date the individual or entity is placed on the exclusion list, whichever is 
73.11 	later, and a vendor an entity may be subject to:
73.12 	(1) sanctions under subdivision 2;
73.13 	(2) a civil monetary penalty of up to $25,000 for each determination by the department 
73.14 	that the vendor employed or contracted with an individual or entity on the exclusion list; 
73.15 	and
73.16 	(3) other fines or penalties allowed by law.
73.17 		Subd. 4.Notice. (a) The department shall serve the notice required under subdivision 2 
73.18 	shall be served by certified mail at the address submitted to the department by the vendor
73.19 	individual or entity. Service is complete upon mailing. The commissioner shall place an 
73.20 	affidavit of the certified mailing in the vendor's file as an indication of the address and the 
73.21 	date of mailing.
73.22 	(b) The department shall give notice in writing to a recipient placed in the Minnesota 
73.23 	restricted recipient program under section 256B.0646 and Minnesota Rules, part 9505.2200. 
73.24 	The department shall send the notice shall be sent by first class mail to the recipient's current 
73.25 	address on file with the department. A recipient placed in the Minnesota restricted recipient 
73.26 	program may contest the placement by submitting a written request for a hearing to the 
73.27 	department within 90 days of the notice being mailed.
73.28 		Subd. 5.Immunity; good faith reporters. (a) A person who makes a good faith report 
73.29 	is immune from any civil or criminal liability that might otherwise arise from reporting or 
73.30 	participating in the investigation. Nothing in this subdivision affects a vendor's an individual's 
73.31 	or entity's responsibility for an overpayment established under this subdivision.
73.32 	(b) A person employed by a lead investigative agency who is conducting or supervising 
73.33 	an investigation or enforcing the law according to the applicable law or rule is immune from 
74.1 	any civil or criminal liability that might otherwise arise from the person's actions, if the 
74.2 	person is acting in good faith and exercising due care.
74.3 	(c) For purposes of this subdivision, "person" includes a natural person or any form of 
74.4 	a business or legal entity.
74.5 	(d) After an investigation is complete, the reporter's name must be kept confidential. 
74.6 	The subject of the report may compel disclosure of the reporter's name only with the consent 
74.7 	of the reporter or upon a written finding by a district court that the report was false and there 
74.8 	is evidence that the report was made in bad faith. This subdivision does not alter disclosure 
74.9 	responsibilities or obligations under the Rules of Criminal Procedure, except that when the 
74.10 	identity of the reporter is relevant to a criminal prosecution the district court shall conduct 
74.11 	an in-camera review before determining whether to order disclosure of the reporter's identity.

74.12 	Sec. 67. Minnesota Statutes 2022, section 256B.27, subdivision 3, is amended to read:
74.13 		Subd. 3.Access to medical records. The commissioner of human services, with the 
74.14 	written consent of the recipient, on file with the local welfare agency, shall be allowed 
74.15 	access in the manner and within the time prescribed by the commissioner to all personal 
74.16 	medical records of medical assistance recipients solely for the purposes of investigating 
74.17 	whether or not: (a) a vendor of medical care has submitted a claim for reimbursement, a 
74.18 	cost report or a rate application which is duplicative, erroneous, or false in whole or in part, 
74.19 	or which results in the vendor obtaining greater compensation than the vendor is legally 
74.20 	entitled to; or (b) the medical care was medically necessary. When the commissioner is 
74.21 	investigating a possible overpayment of Medicaid funds, the commissioner must be given 
74.22 	immediate access without prior notice to the vendor's office during regular business hours 
74.23 	and to documentation and records related to services provided and submission of claims 
74.24 	for services provided. The department shall document in writing the need for immediate 
74.25 	access to records related to a specific investigation. Denying the commissioner access to 
74.26 	records is cause for the vendor's immediate suspension of payment or termination according 
74.27 	to section 256B.064. The determination of provision of services not medically necessary 
74.28 	shall be made by the commissioner. Notwithstanding any other law to the contrary, a vendor 
74.29 	of medical care shall not be subject to any civil or criminal liability for providing access to 
74.30 	medical records to the commissioner of human services pursuant to this section.

74.31 	Sec. 68. Minnesota Statutes 2022, section 524.5-118, subdivision 2a, is amended to read:
74.32 		Subd. 2a.Procedure; state licensing agency data. (a) The court shall request the 
74.33 	commissioner of human services to provide the court within 25 working days of receipt of 
75.1 	the request with licensing agency data for licenses directly related to the responsibilities of 
75.2 	a professional fiduciary if the study subject indicates current or prior affiliation from the 
75.3 	following agencies in Minnesota:
75.4 	(1) Lawyers Responsibility Board;
75.5 	(2) State Board of Accountancy;
75.6 	(3) Board of Social Work;
75.7 	(4) Board of Psychology;
75.8 	(5) Board of Nursing;
75.9 	(6) Board of Medical Practice;
75.10 	(7) Department of Education;
75.11 	(8) (7) Department of Commerce;
75.12 	(9) (8) Board of Chiropractic Examiners;
75.13 	(10) (9) Board of Dentistry;
75.14 	(11) (10) Board of Marriage and Family Therapy;
75.15 	(12) (11) Department of Human Services;
75.16 	(13) (12) Peace Officer Standards and Training (POST) Board; and
75.17 	(14) (13) Professional Educator Licensing and Standards Board.
75.18 	(b) The commissioner shall enter into agreements with these agencies to provide the 
75.19 	commissioner with electronic access to the relevant licensing data, and to provide the 
75.20 	commissioner with a quarterly list of new sanctions issued by the agency.
75.21 	(c) The commissioner shall provide to the court the electronically available data 
75.22 	maintained in the agency's database, including whether the proposed guardian or conservator 
75.23 	is or has been licensed by the agency, and if the licensing agency database indicates a 
75.24 	disciplinary action or a sanction against the individual's license, including a condition, 
75.25 	suspension, revocation, or cancellation.
75.26 	(d) If the proposed guardian or conservator has resided in a state other than Minnesota 
75.27 	in the previous ten years, licensing agency data under this section shall also include the 
75.28 	licensing agency data from any other state where the proposed guardian or conservator 
75.29 	reported to have resided during the previous ten years if the study subject indicates current 
75.30 	or prior affiliation. If the proposed guardian or conservator has or has had a professional 
76.1 	license in another state that is directly related to the responsibilities of a professional fiduciary 
76.2 	from one of the agencies listed under paragraph (a), state licensing agency data shall also 
76.3 	include data from the relevant licensing agency of that state.
76.4 	(e) The commissioner is not required to repeat a search for Minnesota or out-of-state 
76.5 	licensing data on an individual if the commissioner has provided this information to the 
76.6 	court within the prior five years.
76.7 	(f) The commissioner shall review the information in paragraph (c) at least once every 
76.8 	four months to determine if an individual who has been studied within the previous five 
76.9 	years:
76.10 	(1) has new disciplinary action or sanction against the individual's license; or
76.11 	(2) did not disclose a prior or current affiliation with a Minnesota licensing agency.
76.12 	(g) If the commissioner's review in paragraph (f) identifies new information, the 
76.13 	commissioner shall provide any new information to the court.

76.14 	Sec. 69. REVISOR INSTRUCTION.
 76.15 	The revisor of statutes shall renumber the subdivisions in Minnesota Statutes, section 
76.16 	245C.02, in alphabetical order and correct any cross-reference changes that result.

76.17 	Sec. 70. REPEALER.
 76.18 	(a) Minnesota Statutes 2022, sections 245A.22; 245C.02, subdivision 9; 245C.301; and 
76.19 	256.9685, subdivisions 1c and 1d, are repealed.
76.20 	(b) Minnesota Rules, parts 9505.0505, subpart 18; and 9505.0520, subpart 9b, are 
76.21 	repealed.
76.22 	(c) Minnesota Statutes 2022, sections 245A.144; and 245A.175, are repealed.
76.23 	(d) Minnesota Rules, parts 2960.3070; 2960.3210; and 9502.0425, subparts 5 and 10,
76.24 	are repealed.

76.25 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective the day following final 
76.26 	enactment. Paragraphs (c) and (d) are effective January 1, 2024.

77.1 	ARTICLE 2
77.2 	CHILDREN AND FAMILY SERVICES POLICY

77.3 	Section 1. Minnesota Statutes 2022, section 256N.24, subdivision 12, is amended to read:
77.4 		Subd. 12.Approval of initial assessments, special assessments, and reassessments. (a) 
77.5 	Any agency completing initial assessments, special assessments, or reassessments must 
77.6 	designate one or more supervisors or other staff to examine and approve assessments 
77.7 	completed by others in the agency under subdivision 2. The person approving an assessment 
77.8 	must not be the case manager or staff member completing that assessment.
77.9 	(b) In cases where a special assessment or reassessment for Northstar kinship assistance 
77.10 	and adoption assistance is required under subdivision 8 or 11, the commissioner shall review 
77.11 	and approve the assessment as part of the eligibility determination process outlined in section 
77.12 	256N.22, subdivision 7, for Northstar kinship assistance, or section 256N.23, subdivision 
77.13 	7, for adoption assistance. The assessment determines the maximum of the negotiated 
77.14 	agreement amount under section 256N.25.
77.15 	(c) The effective date of the new rate is effective the calendar month that the assessment 
77.16 	is approved, or the effective date of the agreement, whichever is later. determined as follows:
77.17 	(1) for initial assessments of children in foster care, the new rate is effective based on 
77.18 	the emergency foster care rate for initial placement pursuant to section 256N.26, subdivision 
77.19 	6;
77.20 	(2) for special assessments, the new rate is effective the date of the finalized adoption 
77.21 	decree or the date of the court order that transfers permanent legal and physical custody to 
77.22 	a relative;
77.23 	(3) for postpermanency reassessments, the new rate is effective the date that the 
77.24 	commissioner signs the amendment to the Northstar Adoption Assistance or Northstar 
77.25 	Kinship Assistance benefit agreement.

77.26 	Sec. 2. Minnesota Statutes 2022, section 260C.221, subdivision 1, is amended to read:
77.27 		Subdivision 1.Relative search requirements. (a) The responsible social services agency 
77.28 	shall exercise due diligence to identify and notify adult relatives, as defined in section 
77.29 	260C.007, subdivision 27, and current caregivers of a child's sibling, prior to placement or 
77.30 	within 30 days after the child's removal from the parent, regardless of whether a child is 
77.31 	placed in a relative's home, as required under subdivision 2. The relative search required 
77.32 	by this section shall be comprehensive in scope.
78.1 	(b) The relative search required by this section shall include both maternal and paternal 
78.2 	adult relatives of the child; all adult grandparents; all legal parents, guardians, or custodians 
78.3 	of the child's siblings; and any other adult relatives suggested by the child's parents, subject 
78.4 	to the exceptions due to family violence in subdivision 5, paragraph (b). The search shall 
78.5 	also include getting information from the child in an age-appropriate manner about who the 
78.6 	child considers to be family members and important friends with whom the child has resided 
78.7 	or had significant contact. The relative search required under this section must fulfill the 
78.8 	agency's duties under the Indian Child Welfare Act regarding active efforts to prevent the 
78.9 	breakup of the Indian family under United States Code, title 25, section 1912(d), and to 
78.10 	meet placement preferences under United States Code, title 25, section 1915.
78.11 	(c) The responsible social services agency has a continuing responsibility to search for 
78.12 	and identify relatives of a child and send the notice to relatives that is required under 
78.13 	subdivision 2, unless the court has relieved the agency of this duty under subdivision 5, 
78.14 	paragraph (e).

78.15 	Sec. 3. Minnesota Statutes 2022, section 260C.317, subdivision 3, is amended to read:
78.16 		Subd. 3.Order; retention of jurisdiction. (a) A certified copy of the findings and the 
78.17 	order terminating parental rights, and a summary of the court's information concerning the 
78.18 	child shall be furnished by the court to the commissioner or the agency to which guardianship 
78.19 	is transferred.
78.20 	(b) The orders shall be on a document separate from the findings. The court shall furnish 
78.21 	the guardian a copy of the order terminating parental rights.
78.22 	(c) When the court orders guardianship pursuant to this section, the guardian ad litem 
78.23 	and counsel for the child shall continue on the case until an adoption decree is entered. An 
78.24 	in-court appearance hearing must be held every 90 days following termination of parental 
78.25 	rights for the court to review progress toward an adoptive placement and the specific 
78.26 	recruitment efforts the agency has taken to find an adoptive family for the child and to 
78.27 	finalize the adoption or other permanency plan. Review of the progress toward adoption of 
78.28 	a child under guardianship of the commissioner of human services shall be conducted 
78.29 	according to section 260C.607.
78.30 	(d) Upon terminating parental rights or upon a parent's consent to adoption under 
78.31 	Minnesota Statutes 2010, section 260C.201, subdivision 11, or section 260C.515, subdivision 
78.32 	5 3, resulting in an order for guardianship to the commissioner of human services, the court 
78.33 	shall retain jurisdiction:
79.1 	(1) until the child is adopted;
79.2 	(2) through the child's minority; or
79.3 	(3) as long as the child continues in or reenters foster care, until the individual becomes 
79.4 	21 years of age according to sections 260C.193, subdivision 6, and 260C.451.

79.5 	Sec. 4. Minnesota Statutes 2022, section 518A.43, subdivision 1b, is amended to read:
79.6 		Subd. 1b.Increase in income of custodial parent. In a modification of support under 
79.7 	section 518A.39, the court may deviate from the presumptive child support obligation under 
79.8 	section 518A.34 when the only change in circumstances is an increase to the custodial 
79.9 	parent's income and:
79.10 	(1) the basic support increases;
79.11 	(2) the parties' combined gross income is $6,000 or less; or
79.12 	(3) the obligor's income is $2,000 or less.

79.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

79.14 	Sec. 5. REPEALER.
 79.15 	Minnesota Statutes 2022, sections 256D.63, subdivision 1; and 518A.59, are repealed.

79.16 	EFFECTIVE DATE. This section is effective the day following final enactment.