1.1 	A bill for an act
1.2 	relating to children, youth, and families; creating the statutory infrastructure for 
1.3 	the new Department of Children, Youth, and Families; moving and copying statutes;
1.4 	amending Minnesota Statutes 2022, sections 13.46, subdivisions 1, 3; 116L.665, 
1.5 	subdivision 2; 116L.86, subdivisions 1, 3; 119A.5411; 119B.03, subdivision 8; 
1.6 	119B.09, subdivision 12; 119B.24; 124D.13, subdivisions 2, 3, 4; 124D.135, 
1.7 	subdivisions 1, 3, by adding a subdivision; 124D.142, subdivision 1; 124D.15, 
1.8 	subdivision 3a; 124D.151, subdivision 7, by adding a subdivision; 124D.16, by 
1.9 	adding a subdivision; 124D.165, subdivision 1; 125A.02, subdivisions 1a, 2; 
1.10 	125A.28; 125A.35, subdivision 1; 125A.45; 125A.48; 125A.76, by adding a 
1.11 	subdivision; 144.225, subdivision 2b; 245.814, subdivision 5; 245A.02, subdivision 
1.12 	6e; 245A.03, subdivisions 1, 4; 245A.035, subdivision 4; 245A.04, subdivision 9; 
1.13 	245A.08, subdivision 2a; 245A.09, subdivision 7; 245A.10, subdivisions 1, 2; 
1.14 	245A.14, subdivisions 1, 14; 245A.1443, subdivision 2; 245A.1444; 245A.146, 
1.15 	subdivisions 1, 2, 5, 6; 245A.147, subdivision 1; 245A.156, subdivisions 1, 2; 
1.16 	245A.16, subdivisions 3, 5; 245A.18, subdivision 1; 245A.25, subdivisions 1, 6, 
1.17 	8; 245A.66, subdivision 1; 245C.03, by adding a subdivision; 245C.08, subdivision 
1.18 	3; 245C.22, by adding a subdivision; 245C.25; 256.01, subdivisions 1, 2, 4, 5, 12, 
1.19 	16, 18, 18a, 34; 256.012, subdivision 2, by adding a subdivision; 256.016; 256.017, 
1.20 	subdivisions 1, 2, 3, 5, 7; 256.018; 256.019, subdivisions 1, 2; 256.029; 256.045, 
1.21 	subdivisions 3b, 4, 6, 10; 256.0451, subdivisions 1, 2; 256.046, subdivision 2; 
1.22 	256.741, subdivisions 1, 2, 12a; 256.82; 256.87, subdivisions 1, 1a, 5; 256.981; 
1.23 	256.982; 256.983, as amended; 256.9831, subdivision 1; 256.986; 256.9861; 
1.24 	256.987, subdivision 1; 256.998, subdivision 7; 256D.64, subdivisions 1, 3; 
1.25 	256E.21, subdivision 1; 256E.22, subdivision 7; 256E.24; 256E.25, subdivisions 
1.26 	5, 6, 7; 256E.26; 256E.27; 256J.01, subdivision 2; 256J.021; 256J.08, subdivision 
1.27 	32; 256J.09, by adding a subdivision; 256J.351; 256J.395, subdivision 1; 256J.425, 
1.28 	subdivision 8; 256J.645, subdivision 1; 256P.04, subdivision 13; 260.92, 
1.29 	subdivision 1; 260C.178, subdivision 1; 260C.201, subdivision 1; 260C.215, 
1.30 	subdivision 5; 260C.301, subdivision 1; 260D.02, subdivisions 5, 9; 260E.02, 
1.31 	subdivision 2; 260E.03, subdivision 23; 260E.14, subdivision 1; 260E.20, 
1.32 	subdivisions 3, 5; 260E.24, subdivision 5; 260E.28, subdivisions 1, 3; 260E.29, 
1.33 	subdivision 2; 260E.30, subdivisions 3, 6; 260E.32, subdivision 3; 260E.33, 
1.34 	subdivisions 2, 3, 5; 260E.34; 260E.35, subdivision 3; 260E.36, subdivision 4; 
1.35 	299A.72; 393.07, subdivisions 1, 2, 3, 4, 5, 7, 8, 10; 393.11, subdivision 2; 518A.26, 
1.36 	by adding a subdivision; 518A.60; 631.40, subdivision 3; Minnesota Statutes 2023 
1.37 	Supplement, sections 13.46, subdivisions 2, 4; 119B.125, subdivisions 1a, 2, 3; 
1.38 	121A.19; 124D.142, subdivision 2; 124D.151, subdivision 5; 125A.02, subdivision 
2.1 	1; 142A.02, subdivision 1; 142A.03, subdivision 2, by adding subdivisions; 
2.2 	144.225, subdivision 2; 245A.02, subdivision 5a; 245A.03, subdivisions 2, 7; 
2.3 	245A.04, subdivisions 4, 7; 245A.041, subdivision 6; 245A.05; 245A.07, 
2.4 	subdivisions 1, 3; 245A.10, subdivisions 3, 4; 245A.13, subdivision 7; 245A.1435; 
2.5 	245A.16, subdivision 1; 245A.66, subdivision 4; 245C.02, subdivision 22; 245C.03, 
2.6 	subdivision 1; 245H.05; 256.045, subdivision 3; 256.046, subdivision 1; 256.0471, 
2.7 	subdivision 1; 256.98, subdivision 8; 256D.65, subdivision 1; 256J.35; 256J.37, 
2.8 	subdivision 3a; 256J.40; 260C.317, subdivision 3; 260E.02, subdivision 1; 
2.9 	609A.015, subdivisions 1, 2, 3; 609A.06, subdivisions 7, 12; Laws 2017, First 
2.10 	Special Session chapter 5, article 8, section 9, by adding a subdivision; proposing 
2.11 	coding for new law in Minnesota Statutes, chapter 142A; proposing coding for 
2.12 	new law as Minnesota Statutes, chapters 142B; 142C; repealing Minnesota Statutes 
2.13 	2022, sections 245A.04, subdivision 17; 245A.09, subdivision 10; 245H.12; 256.01, 
2.14 	subdivision 30; 256.741, subdivision 3; 256.9831, subdivisions 2, 3; 256J.01, 
2.15 	subdivision 5; 256J.78, subdivision 3; Minnesota Statutes 2023 Supplement, section 
2.16 	245A.18, subdivision 2.
2.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.18 	ARTICLE 1
2.19 	CHAPTER 142A; DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES

2.20 	Section 1. Minnesota Statutes 2023 Supplement, section 142A.02, subdivision 1, is 
2.21 	amended to read:
2.22 		Subdivision 1.Department. The Department of Children, Youth, and Families is 
2.23 	established. The commissioner of children, youth, and families is hereby constituted the 
2.24 	"state agency" for the purposes of Title IV of the Social Security Act of the United States 
2.25 	and the laws of this state.

2.26 	Sec. 2. Minnesota Statutes 2023 Supplement, section 142A.03, subdivision 2, is amended 
2.27 	to read:
2.28 		Subd. 2.Duties of the commissioner. (a) The commissioner may apply for and accept 
2.29 	on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying 
2.30 	out the duties and responsibilities of the commissioner. Any money received under this 
2.31 	paragraph is appropriated and dedicated for the purpose for which the money is granted. 
2.32 	The commissioner must biennially report to the chairs and ranking minority members of 
2.33 	relevant legislative committees and divisions by January 15 of each even-numbered year a 
2.34 	list of all grants and gifts received under this subdivision.
2.35 	(b) Pursuant to law, the commissioner may apply for and receive money made available 
2.36 	from federal sources for the purpose of carrying out the duties and responsibilities of the 
2.37 	commissioner.
3.1 	(c) The commissioner may make contracts with and grants to Tribal Nations, public and 
3.2 	private agencies, for-profit and nonprofit organizations, and individuals using appropriated 
3.3 	money.
3.4 	(d) The commissioner must develop program objectives and performance measures for 
3.5 	evaluating progress toward achieving the objectives. The commissioner must identify the 
3.6 	objectives, performance measures, and current status of achieving the measures in a biennial 
3.7 	report to the chairs and ranking minority members of relevant legislative committees and 
3.8 	divisions. The report is due no later than January 15 each even-numbered year. The report 
3.9 	must include, when possible, the following objectives:
3.10 	(1) centering and including the lived experiences of children and youth, including those 
3.11 	with disabilities and mental illness and their families, in all aspects of the department's work;
3.12 	(2) increasing the effectiveness of the department's programs in addressing the needs of 
3.13 	children and youth facing racial, economic, or geographic inequities;
3.14 	(3) increasing coordination and reducing inefficiencies among the department's programs 
3.15 	and the funding sources that support the programs;
3.16 	(4) increasing the alignment and coordination of family access to child care and early 
3.17 	learning programs and improving systems of support for early childhood and learning 
3.18 	providers and services;
3.19 	(5) improving the connection between the department's programs and the kindergarten 
3.20 	through grade 12 and higher education systems; and
3.21 	(6) minimizing and streamlining the effort required of youth and families to receive 
3.22 	services to which the youth and families are entitled.
3.23 	(e) The commissioner shall administer and supervise the forms of public assistance and 
3.24 	other activities or services that are vested in the commissioner. Administration and 
3.25 	supervision of activities or services includes but is not limited to assuring timely and accurate 
3.26 	distribution of benefits, completeness of service, and quality program management. In 
3.27 	addition to administering and supervising activities vested by law in the department, the 
3.28 	commissioner has the authority to:
3.29 	(1) require county agency participation in training and technical assistance programs to 
3.30 	promote compliance with statutes, rules, federal laws, regulations, and policies governing 
3.31 	the programs and activities administered by the commissioner;
3.32 	(2) monitor, on an ongoing basis, the performance of county agencies in the operation 
3.33 	and administration of activities and programs; enforce compliance with statutes, rules, 
4.1 	federal laws, regulations, and policies governing welfare services; and promote excellence 
4.2 	of administration and program operation;
4.3 	(3) develop a quality control program or other monitoring program to review county 
4.4 	performance and accuracy of benefit determinations;
4.5 	(4) require county agencies to make an adjustment to the public assistance benefits issued 
4.6 	to any individual consistent with federal law and regulation and state law and rule and to 
4.7 	issue or recover benefits as appropriate;
4.8 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
4.9 	administrative reimbursement according to the procedures set forth in section 142A.10;
4.10 	(6) make contracts with and grants to public and private agencies and organizations, 
4.11 	both for-profit and nonprofit, and individuals, using appropriated funds; and
4.12 	(7) enter into contractual agreements with federally recognized Indian Tribes with a 
4.13 	reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved 
4.14 	family assistance program or any other program under the supervision of the commissioner. 
4.15 	The commissioner shall consult with the affected county or counties in the contractual 
4.16 	agreement negotiations, if the county or counties wish to be included, in order to avoid the 
4.17 	duplication of county and Tribal assistance program services. The commissioner may 
4.18 	establish necessary accounts for the purposes of receiving and disbursing funds as necessary 
4.19 	for the operation of the programs.
4.20 	The commissioner shall work in conjunction with the commissioner of human services to 
4.21 	carry out the duties of this paragraph when necessary and feasible.
4.22 	(f) The commissioner shall inform county agencies, on a timely basis, of changes in 
4.23 	statute, rule, federal law, regulation, and policy necessary to county agency administration 
4.24 	of the programs and activities administered by the commissioner.
4.25 	(g) The commissioner shall administer and supervise child welfare activities, including 
4.26 	promoting the enforcement of laws preventing child maltreatment and protecting children 
4.27 	with a disability and children who are in need of protection or services, licensing and 
4.28 	supervising child care and child-placing agencies, and supervising the care of children in 
4.29 	foster care. The commissioner shall coordinate with the commissioner of human services 
4.30 	on activities impacting children overseen by the Department of Human Services, such as 
4.31 	disability services, behavioral health, and substance use disorder treatment.
4.32 	(h) The commissioner shall assist and cooperate with local, state, and federal departments, 
4.33 	agencies, and institutions.
5.1 	(i) The commissioner shall establish and maintain any administrative units reasonably 
5.2 	necessary for the performance of administrative functions common to all divisions of the 
5.3 	department.
5.4 	(j) The commissioner shall act as designated guardian of children pursuant to chapter 
5.5 	260C. For children under the guardianship of the commissioner or a Tribe in Minnesota 
5.6 	recognized by the Secretary of the Interior whose interests would be best served by adoptive 
5.7 	placement, the commissioner may contract with a licensed child-placing agency or a 
5.8 	Minnesota Tribal social services agency to provide adoption services. A contract with a 
5.9 	licensed child-placing agency must be designed to supplement existing county efforts and 
5.10 	may not replace existing county programs or Tribal social services, unless the replacement 
5.11 	is agreed to by the county board and the appropriate exclusive bargaining representative, 
5.12 	Tribal governing body, or the commissioner has evidence that child placements of the county 
5.13 	continue to be substantially below that of other counties. Funds encumbered and obligated 
5.14 	under an agreement for a specific child shall remain available until the terms of the agreement 
5.15 	are fulfilled or the agreement is terminated.
5.16 	(k) The commissioner has the authority to conduct and administer experimental projects 
5.17 	to test methods and procedures of administering assistance and services to recipients or 
5.18 	potential recipients of public benefits. To carry out the experimental projects, the 
5.19 	commissioner may waive the enforcement of existing specific statutory program 
5.20 	requirements, rules, and standards in one or more counties. The order establishing the waiver 
5.21 	must provide alternative methods and procedures of administration and must not conflict 
5.22 	with the basic purposes, coverage, or benefits provided by law. No project under this 
5.23 	paragraph shall exceed four years. No order establishing an experimental project as authorized 
5.24 	by this paragraph is effective until the following conditions have been met:
5.25 	(1) the United States Secretary of Health and Human Services has agreed, for the same 
5.26 	project, to waive state plan requirements relative to statewide uniformity; and
5.27 	(2) a comprehensive plan, including estimated project costs, has been approved by the 
5.28 	Legislative Advisory Commission and filed with the commissioner of administration.
5.29 	(l) The commissioner shall, according to federal requirements and in coordination with 
5.30 	the commissioner of human services, establish procedures to be followed by local welfare 
5.31 	boards in creating citizen advisory committees, including procedures for selection of 
5.32 	committee members.
5.33 	(m) The commissioner shall allocate federal fiscal disallowances or sanctions that are 
5.34 	based on quality control error rates for the aid to families with dependent children (AFDC) 
6.1 	program formerly codified in sections 256.72 to 256.87 or the Supplemental Nutrition 
6.2 	Assistance Program (SNAP) in the following manner:
6.3 	(1) one-half of the total amount of the disallowance shall be borne by the county boards 
6.4 	responsible for administering the programs. For AFDC, disallowances shall be shared by 
6.5 	each county board in the same proportion as that county's expenditures to the total of all 
6.6 	counties' expenditures for AFDC. For SNAP, sanctions shall be shared by each county 
6.7 	board, with 50 percent of the sanction being distributed to each county in the same proportion 
6.8 	as that county's administrative costs for SNAP benefits are to the total of all SNAP 
6.9 	administrative costs for all counties, and 50 percent of the sanctions being distributed to 
6.10 	each county in the same proportion as that county's value of SNAP benefits issued are to 
6.11 	the total of all benefits issued for all counties. Each county shall pay its share of the 
6.12 	disallowance to the state of Minnesota. When a county fails to pay the amount due under 
6.13 	this paragraph, the commissioner may deduct the amount from reimbursement otherwise 
6.14 	due the county, or the attorney general, upon the request of the commissioner, may institute 
6.15 	civil action to recover the amount due; and
6.16 	(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing 
6.17 	noncompliance by one or more counties with a specific program instruction, and that knowing 
6.18 	noncompliance is a matter of official county board record, the commissioner may require 
6.19 	payment or recover from the county or counties, in the manner prescribed in clause (1), an 
6.20 	amount equal to the portion of the total disallowance that resulted from the noncompliance 
6.21 	and may distribute the balance of the disallowance according to clause (1).
6.22 	(n) The commissioner shall develop and implement special projects that maximize 
6.23 	reimbursements and result in the recovery of money to the state. For the purpose of recovering 
6.24 	state money, the commissioner may enter into contracts with third parties. Any recoveries 
6.25 	that result from projects or contracts entered into under this paragraph shall be deposited 
6.26 	in the state treasury and credited to a special account until the balance in the account reaches 
6.27 	$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be 
6.28 	transferred and credited to the general fund. All money in the account is appropriated to the 
6.29 	commissioner for the purposes of this paragraph.
6.30 	(o) The commissioner has the authority to establish and enforce the following county 
6.31 	reporting requirements:
6.32 	(1) the commissioner shall establish fiscal and statistical reporting requirements necessary 
6.33 	to account for the expenditure of funds allocated to counties for programs administered by 
6.34 	the commissioner. When establishing financial and statistical reporting requirements, the 
7.1 	commissioner shall evaluate all reports, in consultation with the counties, to determine if 
7.2 	the reports can be simplified or the number of reports can be reduced;
7.3 	(2) the county board shall submit monthly or quarterly reports to the department as 
7.4 	required by the commissioner. Monthly reports are due no later than 15 working days after 
7.5 	the end of the month. Quarterly reports are due no later than 30 calendar days after the end 
7.6 	of the quarter, unless the commissioner determines that the deadline must be shortened to 
7.7 	20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss 
7.8 	of federal funding. Only reports that are complete, legible, and in the required format shall 
7.9 	be accepted by the commissioner;
7.10 	(3) if the required reports are not received by the deadlines established in clause (2), the 
7.11 	commissioner may delay payments and withhold funds from the county board until the next 
7.12 	reporting period. When the report is needed to account for the use of federal funds and the 
7.13 	late report results in a reduction in federal funding, the commissioner shall withhold from 
7.14 	the county boards with late reports an amount equal to the reduction in federal funding until 
7.15 	full federal funding is received;
7.16 	(4) a county board that submits reports that are late, illegible, incomplete, or not in the 
7.17 	required format for two out of three consecutive reporting periods is considered 
7.18 	noncompliant. When a county board is found to be noncompliant, the commissioner shall 
7.19 	notify the county board of the reason the county board is considered noncompliant and 
7.20 	request that the county board develop a corrective action plan stating how the county board 
7.21 	plans to correct the problem. The corrective action plan must be submitted to the 
7.22 	commissioner within 45 days after the date the county board received notice of 
7.23 	noncompliance;
7.24 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after 
7.25 	the date the report was originally due. If the commissioner does not receive a report by the 
7.26 	final deadline, the county board forfeits the funding associated with the report for that 
7.27 	reporting period and the county board must repay any funds associated with the report 
7.28 	received for that reporting period;
7.29 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
7.30 	under clause (3) or (5) if the county demonstrates that the commissioner failed to provide 
7.31 	appropriate forms, guidelines, and technical assistance to enable the county to comply with 
7.32 	the requirements. If the county board disagrees with an action taken by the commissioner 
7.33 	under clause (3) or (5), the county board may appeal the action according to sections 14.57 
7.34 	to 14.69; and
8.1 	(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment 
8.2 	of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover 
8.3 	costs incurred due to actions taken by the commissioner under clause (3) or (5).
8.4 	(p) The commissioner shall allocate federal fiscal disallowances or sanctions for audit 
8.5 	exceptions when federal fiscal disallowances or sanctions are based on a statewide random 
8.6 	sample in direct proportion to each county's claim for that period.
8.7 	(q) The commissioner is responsible for ensuring the detection, prevention, investigation, 
8.8 	and resolution of fraudulent activities or behavior by applicants, recipients, and other 
8.9 	participants in the programs administered by the department. The commissioner shall 
8.10 	cooperate with the commissioner of education to enforce the requirements for program 
8.11 	integrity and fraud prevention for investigation for child care assistance under chapter 142E.
8.12 	(r) The commissioner shall require county agencies to identify overpayments, establish 
8.13 	claims, and utilize all available and cost-beneficial methodologies to collect and recover 
8.14 	these overpayments in the programs administered by the department.
8.15 	(s) The commissioner shall develop recommended standards for child foster care homes 
8.16 	that address the components of specialized therapeutic services to be provided by child 
8.17 	foster care homes with those services.
8.18 	(t) The commissioner shall authorize the method of payment to or from the department 
8.19 	as part of the programs administered by the department. This authorization includes the 
8.20 	receipt or disbursement of funds held by the department in a fiduciary capacity as part of 
8.21 	the programs administered by the department.
8.22 	(u) In coordination with the commissioner of human services, the commissioner shall 
8.23 	create and provide county and Tribal agencies with blank applications, affidavits, and other 
8.24 	forms as necessary for public assistance programs.
8.25 	(v) The commissioner shall cooperate with the federal government and its public welfare 
8.26 	agencies in any reasonable manner as may be necessary to qualify for federal aid for 
8.27 	temporary assistance for needy families and in conformity with Title I of Public Law 104-193, 
8.28 	the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor 
8.29 	amendments, including making reports that contain information required by the federal 
8.30 	Social Security Advisory Board and complying with any provisions the board may find 
8.31 	necessary to assure the correctness and verification of the reports.
8.32 	(w) On or before January 15 in each even-numbered year, the commissioner shall make 
8.33 	a biennial report to the governor concerning the activities of the agency.
9.1 	(x) The commissioner shall enter into agreements with other departments of the state as 
9.2 	necessary to meet all requirements of the federal government.
9.3 	(y) The commissioner may cooperate with other state agencies in establishing reciprocal 
9.4 	agreements in instances where a child receiving Minnesota family investment program 
9.5 	(MFIP) assistance or its out-of-state equivalent moves or contemplates moving into or out 
9.6 	of the state, in order that the child may continue to receive MFIP or equivalent aid from the 
9.7 	state moved from until the child has resided for one year in the state moved to.
9.8 	(z) The commissioner shall provide appropriate technical assistance to county agencies 
9.9 	to develop methods to have county financial workers remind and encourage recipients of 
9.10 	aid to families with dependent children, the Minnesota family investment program, the 
9.11 	Minnesota family investment plan, family general assistance, or SNAP benefits whose 
9.12 	assistance unit includes at least one child under the age of five to have each young child 
9.13 	immunized against childhood diseases. The commissioner must examine the feasibility of 
9.14 	utilizing the capacity of a statewide computer system to assist county agency financial 
9.15 	workers in performing this function at appropriate intervals.
9.16 	(aa) The commissioner shall have the power and authority to accept on behalf of the 
9.17 	state contributions and gifts for the use and benefit of children under the guardianship or 
9.18 	custody of the commissioner. The commissioner may also receive and accept on behalf of 
9.19 	such children money due and payable to them as old age and survivors insurance benefits, 
9.20 	veterans benefits, pensions, or other such monetary benefits. Gifts, contributions, pensions, 
9.21 	and benefits under this paragraph must be deposited in and disbursed from the social welfare 
9.22 	fund provided for in sections 256.88 to 256.92.
9.23 	(bb) The specific enumeration of powers and duties in this section must not be construed 
9.24 	to be a limitation upon the general powers granted to the commissioner.

9.25 	Sec. 3. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
9.26 	subdivision to read:
9.27 		Subd. 3.Subpoena power. (a) The commissioner may administer oaths and affirmations, 
9.28 	take depositions, certify to official acts, and issue subpoenas to compel the attendance of 
9.29 	individuals and the production of documents and other personal property necessary in 
9.30 	connection with the administration of programs administered by the Department of Children, 
9.31 	Youth, and Families.
10.1 	(b) The fees for service of a subpoena in paragraph (a) must be paid in the same manner 
10.2 	as prescribed by law for a service of process issued by a district court. Witnesses must 
10.3 	receive the same fees and mileage as in civil actions.
10.4 	(c) The subpoena in paragraph (a) shall be enforceable through the district court in the 
10.5 	district where the subpoena is issued.
10.6 	(d) A subpoena issued under this subdivision must state that the person to whom the 
10.7 	subpoena is directed may not disclose the fact that the subpoena was issued or the fact that 
10.8 	the requested records have been given to law enforcement personnel or agents of the 
10.9 	commissioner except:
10.10 	(1) insofar as the disclosure is necessary and agreed upon by the commissioner, to find 
10.11 	and disclose the records; or
10.12 	(2) pursuant to court order.

10.13 	Sec. 4. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
10.14 	subdivision to read:
10.15 		Subd. 4.Advisory task forces. The commissioner may appoint advisory task forces to 
10.16 	provide consultation on any of the programs under the commissioner's administration and 
10.17 	supervision. A task force shall expire and the compensation, terms of office and removal 
10.18 	of members shall be as provided in section 15.059. Notwithstanding section 15.059, the 
10.19 	commissioner may pay a per diem of $35 to consumers and family members whose 
10.20 	participation is needed in legislatively authorized state-level task forces, and whose 
10.21 	participation on the task force is not as a paid representative of any agency, organization, 
10.22 	or association.

10.23 	Sec. 5. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
10.24 	subdivision to read:
10.25 		Subd. 5.Centralized disbursement system. The commissioner may establish a system 
10.26 	for the centralized disbursement of benefits administered by the commissioner as well as 
10.27 	any related documents. Benefits must be issued by the state or county subject to section 
10.28 	142A.10.

11.1 	Sec. 6. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
11.2 	subdivision to read:
11.3 		Subd. 6.Contracting with financial institutions. The state agency may contract with 
11.4 	banks or other financial institutions to provide services associated with the processing of 
11.5 	public assistance checks and may pay a service fee for these services, provided the fee 
11.6 	charged does not exceed the fee charged to other customers of the institution for similar 
11.7 	services.

11.8 	Sec. 7. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
11.9 	subdivision to read:
11.10 		Subd. 9.American Indian child welfare projects. (a) The commissioner of children, 
11.11 	youth, and families may authorize projects to initiate Tribal delivery of child welfare services 
11.12 	to American Indian children and their parents and custodians living on the reservation. The 
11.13 	commissioner has authority to solicit and determine which Tribes may participate in a 
11.14 	project. Grants may be issued to Minnesota Indian Tribes to support the projects. The 
11.15 	commissioner may waive existing state rules as needed to accomplish the projects. The 
11.16 	commissioner may authorize projects to use alternative methods of (1) screening, 
11.17 	investigating, and assessing reports of child maltreatment, and (2) administrative 
11.18 	reconsideration, administrative appeal, and judicial appeal of maltreatment determinations, 
11.19 	provided the alternative methods used by the projects comply with the provisions of sections 
11.20 	142A.20 and 256.045 and chapter 260E that deal with the rights of individuals who are the 
11.21 	subjects of reports or investigations, including notice and appeal rights and data practices 
11.22 	requirements. The commissioner shall only authorize alternative methods that comply with 
11.23 	the public policy under section 260E.01. The commissioner may seek any federal approval 
11.24 	necessary to carry out the projects as well as seek and use any funds available to the 
11.25 	commissioner, including use of federal funds, foundation funds, existing grant funds, and 
11.26 	other funds. The commissioner is authorized to advance state funds as necessary to operate 
11.27 	the projects. Federal reimbursement applicable to the projects is appropriated to the 
11.28 	commissioner for the purposes of the projects. The projects must be required to address 
11.29 	responsibility for safety, permanency, and well-being of children.
11.30 	(b) For the purposes of this section, "American Indian child" means a person under 21 
11.31 	years old and who is a Tribal member or eligible for membership in one of the Tribes chosen 
11.32 	for a project under this subdivision and who is residing on the reservation of that Tribe.
11.33 	(c) In order to qualify for an American Indian child welfare project, a Tribe must:
11.34 	(1) be one of the existing Tribes with reservation land in Minnesota;
12.1 	(2) have a Tribal court with jurisdiction over child custody proceedings;
12.2 	(3) have a substantial number of children for whom determinations of maltreatment have 
12.3 	occurred;
12.4 	(4)(i) have capacity to respond to reports of abuse and neglect under chapter 260E; or 
12.5 	(ii) have codified the Tribe's screening, investigation, and assessment of reports of child 
12.6 	maltreatment procedures, if authorized to use an alternative method by the commissioner 
12.7 	under paragraph (a);
12.8 	(5) provide a wide range of services to families in need of child welfare services;
12.9 	(6) have a Tribal-state title IV-E agreement in effect; and
12.10 	(7) enter into host Tribal contracts pursuant to section 142A.07, subdivision 6.
12.11 	(d) Grants awarded under this section may be used for the nonfederal costs of providing 
12.12 	child welfare services to American Indian children on the Tribe's reservation, including 
12.13 	costs associated with:
12.14 	(1) assessment and prevention of child abuse and neglect;
12.15 	(2) family preservation;
12.16 	(3) facilitative, supportive, and reunification services;
12.17 	(4) out-of-home placement for children removed from the home for child protective 
12.18 	purposes; and
12.19 	(5) other activities and services approved by the commissioner that further the goals of 
12.20 	providing safety, permanency, and well-being of American Indian children.
12.21 	(e) When a Tribe has initiated a project and has been approved by the commissioner to 
12.22 	assume child welfare responsibilities for American Indian children of that Tribe under this 
12.23 	section, the affected county social service agency is relieved of responsibility for responding 
12.24 	to reports of abuse and neglect under chapter 260E for those children during the time within 
12.25 	which the Tribal project is in effect and funded. The commissioner shall work with Tribes 
12.26 	and affected counties to develop procedures for data collection, evaluation, and clarification 
12.27 	of ongoing role and financial responsibilities of the county and Tribe for child welfare 
12.28 	services prior to initiation of the project. Children who have not been identified by the Tribe 
12.29 	as participating in the project shall remain the responsibility of the county. Nothing in this 
12.30 	section shall alter responsibilities of the county for law enforcement or court services.
13.1 	(f) Participating Tribes may conduct children's mental health screenings under section 
13.2 	245.4874, subdivision 1, paragraph (a), clause (12), for children who are eligible for the 
13.3 	initiative and living on the reservation and who meet one of the following criteria:
13.4 	(1) the child must be receiving child protective services;
13.5 	(2) the child must be in foster care; or
13.6 	(3) the child's parents must have had parental rights suspended or terminated.
13.7 	Tribes may access reimbursement from available state funds for conducting the screenings. 
13.8 	Nothing in this section shall alter responsibilities of the county for providing services under 
13.9 	section 245.487.
13.10 	(g) Participating Tribes may establish a local child mortality review panel. In establishing 
13.11 	a local child mortality review panel, the Tribe agrees to conduct local child mortality reviews 
13.12 	for child deaths or near-fatalities occurring on the reservation under subdivision 7. Tribes 
13.13 	with established child mortality review panels shall have access to nonpublic data and shall 
13.14 	protect nonpublic data under subdivision 7, paragraphs (c) to (e). The Tribe shall provide 
13.15 	written notice to the commissioner and affected counties when a local child mortality review 
13.16 	panel has been established and shall provide data upon request of the commissioner for 
13.17 	purposes of sharing nonpublic data with members of the state child mortality review panel 
13.18 	in connection to an individual case.
13.19 	(h) The commissioner shall collect information on outcomes relating to child safety, 
13.20 	permanency, and well-being of American Indian children who are served in the projects. 
13.21 	Participating Tribes must provide information to the state in a format and completeness 
13.22 	deemed acceptable by the state to meet state and federal reporting requirements.
13.23 	(i) In consultation with the White Earth Band, the commissioner shall develop and submit 
13.24 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
13.25 	over health and human services a plan to transfer legal responsibility for providing child 
13.26 	protective services to White Earth Band member children residing in Hennepin County to 
13.27 	the White Earth Band. The plan shall include a financing proposal, definitions of key terms, 
13.28 	statutory amendments required, and other provisions required to implement the plan.

13.29 	Sec. 8. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
13.30 	subdivision to read:
13.31 		Subd. 11.Information for persons with limited English-language proficiency. The 
13.32 	commissioner shall implement a procedure for public assistance applicants and recipients 
14.1 	to identify a language preference other than English in order to receive information pertaining 
14.2 	to the public assistance programs in that preferred language.

14.3 	Sec. 9. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
14.4 	subdivision to read:
14.5 		Subd. 12.Appropriation transfers to be reported. When the commissioner transfers 
14.6 	operational money between programs under section 16A.285, in addition to the requirements 
14.7 	of that section the commissioner must provide the chairs of the legislative committees that 
14.8 	have jurisdiction over the agency's budget with sufficient detail to identify the account to 
14.9 	which the money was originally appropriated, and the account to which the money is being 
14.10 	transferred.

14.11 	Sec. 10. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
14.12 	subdivision to read:
14.13 		Subd. 13.Immigration status verifications. (a) Notwithstanding any waiver of this 
14.14 	requirement by the secretary of the United States Department of Health and Human Services, 
14.15 	the commissioner shall utilize the Systematic Alien Verification for Entitlements (SAVE) 
14.16 	program to conduct immigration status verifications:
14.17 	(1) as required under United States Code, title 8, section 1642; and
14.18 	(2) for all applicants for food assistance benefits, whether under the federal SNAP, the 
14.19 	MFIP or work first program, or the Minnesota food assistance program.
14.20 	(b) The commissioner shall comply with the reporting requirements under United States 
14.21 	Code, title 42, section 611a, and any federal regulation or guidance adopted under that law.

14.22 	Sec. 11. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
14.23 	subdivision to read:
14.24 		Subd. 14.Public Assistance Reporting Information System. (a) The commissioner 
14.25 	shall comply with the federal requirements in Public Law 110-379 in implementing the 
14.26 	Public Assistance Reporting Information System (PARIS) to determine eligibility for all 
14.27 	individuals applying for public benefits under chapter 142E and the Supplemental Nutrition 
14.28 	Assistance Program.
14.29 	(b) The commissioner shall determine eligibility under paragraph (a) by performing data 
14.30 	matches, including matching with medical assistance, cash, child care, and supplemental 
14.31 	assistance programs operated by other states.

15.1 	Sec. 12. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
15.2 	subdivision to read:
15.3 		Subd. 15.Drug convictions. (a) The state court administrator shall provide a report 
15.4 	every six months by electronic means to the commissioner of children, youth, and families, 
15.5 	including the name, address, date of birth, and, if available, driver's license or state 
15.6 	identification card number, date of the sentence, effective date of the sentence, and county 
15.7 	in which the conviction occurred, of each person convicted of a felony under chapter 152, 
15.8 	except for convictions under section 152.0263 or 152.0264, during the previous six months.
15.9 	(b) The commissioner shall determine whether the individuals who are the subject of 
15.10 	the data reported under paragraph (a) are receiving public assistance under chapter 142F or 
15.11 	142G, and if an individual is receiving assistance under chapter 142F or 142G, the 
15.12 	commissioner shall instruct the county to proceed under section 142G.18 or 256D.024, 
15.13 	whichever is applicable, for this individual.
15.14 	(c) The commissioner shall not retain any data received under paragraph (a) that does 
15.15 	not relate to an individual receiving publicly funded assistance under chapter 142G or 256D.

15.16 	Sec. 13. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
15.17 	subdivision to read:
15.18 		Subd. 16.Data sharing with Department of Children, Youth, and Families; multiple 
15.19 	identification cards. (a) The commissioner of public safety shall, on a monthly basis, 
15.20 	provide the commissioner of children, youth, and families with the first, middle, and last 
15.21 	name, the address, date of birth, driver's license or state identification card number, and all 
15.22 	photographs or electronically produced images of all applicants and holders whose drivers' 
15.23 	licenses and state identification cards have been canceled under section 171.14, paragraph 
15.24 	(a), clause (2) or (3), by the commissioner of public safety. After the initial data report has 
15.25 	been provided by the commissioner of public safety to the commissioner of children, youth, 
15.26 	and families under this paragraph, subsequent reports shall only include cancellations that 
15.27 	occurred after the end date of the cancellations represented in the previous data report.
15.28 	(b) The commissioner of children, youth, and families shall compare the information 
15.29 	provided under paragraph (a) with the commissioner's data regarding recipients of all public 
15.30 	assistance programs managed by the Department of Children, Youth, and Families to 
15.31 	determine whether any individual with multiple identification cards issued by the Department 
15.32 	of Public Safety has illegally or improperly enrolled in any public assistance program 
15.33 	managed by the Department of Children, Youth, and Families.
16.1 	(c) If the commissioner of children, youth, and families determines that an applicant or 
16.2 	recipient has illegally or improperly enrolled in any public assistance program, the 
16.3 	commissioner shall provide all due process protections to the individual before terminating 
16.4 	the individual from the program according to applicable statute and notifying the county 
16.5 	attorney.

16.6 	Sec. 14. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
16.7 	subdivision to read:
16.8 		Subd. 17.Data sharing with Department of Children, Youth, and Families; legal 
16.9 	presence date. (a) The commissioner of public safety shall, on a monthly basis, provide 
16.10 	the commissioner of children, youth, and families with the first, middle, and last name, and 
16.11 	address, date of birth, and driver's license or state identification card number of all applicants 
16.12 	and holders of drivers' licenses and state identification cards whose temporary legal presence 
16.13 	date has expired and as a result the driver's license or identification card has been accordingly 
16.14 	canceled under section 171.14 by the commissioner of public safety.
16.15 	(b) The commissioner of children, youth, and families shall use the information provided 
16.16 	under paragraph (a) to determine whether the eligibility of any recipients of public assistance 
16.17 	programs managed by the Department of Children, Youth, and Families has changed as a 
16.18 	result of the status change in the Department of Public Safety data.
16.19 	(c) If the commissioner of children, youth, and families determines that a recipient has 
16.20 	illegally or improperly received benefits from any public assistance program, the 
16.21 	commissioner shall provide all due process protections to the individual before terminating 
16.22 	the individual from the program according to applicable statute and notifying the county 
16.23 	attorney.

16.24 	Sec. 15. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
16.25 	subdivision to read:
16.26 		Subd. 18.Homeless services. The commissioner of children, youth, and families may 
16.27 	contract directly with nonprofit organizations providing homeless services in two or more 
16.28 	counties.

16.29 	Sec. 16. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
16.30 	subdivision to read:
16.31 		Subd. 19.Nonstate funding for program costs. Notwithstanding sections 16A.013 to 
16.32 	16A.016, the commissioner may accept, on behalf of the state, additional funding from 
17.1 	sources other than state funds for the purpose of financing the cost of assistance program 
17.2 	grants or nongrant administration. All additional funding is appropriated to the commissioner 
17.3 	for use as designated by the grantor of funding.

17.4 	Sec. 17. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
17.5 	subdivision to read:
17.6 		Subd. 20.Systems continuity. In the event of disruption of technical systems or computer 
17.7 	operations, the commissioner may use available grant appropriations to ensure continuity 
17.8 	of payments for maintaining the health, safety, and well-being of clients served by programs 
17.9 	administered by the Department of Children, Youth, and Families. Grant funds must be 
17.10 	used in a manner consistent with the original intent of the appropriation.

17.11 	Sec. 18. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
17.12 	subdivision to read:
17.13 		Subd. 21.Federal administrative reimbursement dedicated. Federal administrative 
17.14 	reimbursement resulting from the federal child support grant expenditures authorized under 
17.15 	United States Code, title 42, section 1315, is appropriated to the commissioner.

17.16 	Sec. 19. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
17.17 	subdivision to read:
17.18 		Subd. 23.DCYF receipt center accounting. The commissioner may transfer 
17.19 	appropriations to, and account for DCYF receipt center operations in, the special revenue 
17.20 	fund.

17.21 	Sec. 20. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
17.22 	subdivision to read:
17.23 		Subd. 24.Nonfederal share transfers. The nonfederal share of activities for which 
17.24 	federal administrative reimbursement is appropriated to the commissioner may be transferred 
17.25 	to the special revenue fund.

17.26 	Sec. 21. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
17.27 	subdivision to read:
17.28 		Subd. 25.Interview expenses. Job applicants for professional, administrative, or highly 
17.29 	technical positions recruited by the commissioner may be reimbursed for necessary travel 
17.30 	expenses to and from interviews arranged by the commissioner.

18.1 	Sec. 22. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
18.2 	subdivision to read:
18.3 		Subd. 26.Changes to grant programs. Prior to implementing any substantial changes 
18.4 	to a grant funding formula disbursed through allocations administered by the commissioner, 
18.5 	the commissioner must provide a report on the nature of the changes, the effect the changes 
18.6 	will have, whether any funding will change, and other relevant information, to the chairs 
18.7 	and ranking minority members of the legislative committees with jurisdiction over children, 
18.8 	youth, and families. The report must be provided prior to the start of a regular session, and 
18.9 	the proposed changes cannot be implemented until after the adjournment of that regular 
18.10 	session.

18.11 	Sec. 23. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
18.12 	subdivision to read:
18.13 		Subd. 27.Federal grants for Minnesota Indians. The commissioner of children, youth, 
18.14 	and families is authorized to enter into contracts with the United States Departments of 
18.15 	Health and Human Services, Education, and Interior, and the Bureau of Indian Affairs, for 
18.16 	the purpose of receiving federal grants for the support of Minnesota's Indian communities.

18.17 	Sec. 24. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
18.18 	subdivision to read:
18.19 		Subd. 28.Reimbursement of counties for certain Indian benefits costs. (a) The 
18.20 	commissioner, to the extent that state and federal money is available, shall reimburse any 
18.21 	county for all benefits costs expended by the county to any Indian who is an enrolled member 
18.22 	of the Red Lake Band of Chippewa and resides upon the Red Lake Indian Reservation. The 
18.23 	commissioner may advance payments to a county on an estimated basis subject to audit and 
18.24 	adjustment at the end of each state fiscal year. Reimbursements shall be prorated if the state 
18.25 	appropriation for this purpose is insufficient to provide full reimbursement.
18.26 	(b) The commissioner may promulgate rules for the carrying out of the provisions of 
18.27 	this subdivision and may negotiate for and accept grants from the United States government 
18.28 	for the purposes of this section.

18.29 	Sec. 25. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
18.30 	subdivision to read:
18.31 		Subd. 29.Rules on physical control of clients for facilities. For any applicable facility 
18.32 	licensed or operated by the commissioner, the commissioner shall abide by and enforce the 
19.1 	nonrulemaking provisions of sections 245.825 and 245.8251 and any rules adopted by the 
19.2 	commissioner of human services pursuant to those sections. The commissioner shall 
19.3 	cooperate with the commissioner of human services in any data collection and reviews of 
19.4 	rules related to sections 245.825 and 245.8251.

19.5 	Sec. 26. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
19.6 	subdivision to read:
19.7 		Subd. 30.Court-awarded funds; disposition. (a) The commissioner shall notify the 
19.8 	house of representatives Ways and Means and senate Finance Committees of the terms of 
19.9 	any contractual arrangement entered into by the commissioner and the attorney general, 
19.10 	pursuant to an order of any court of law that provides for the receipt of funds by the 
19.11 	commissioner.
19.12 	(b) Any funds recovered or received by the commissioner pursuant to an order of any 
19.13 	court of law shall be placed in the general fund.

19.14 	Sec. 27. Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a 
19.15 	subdivision to read:
19.16 		Subd. 31.Donated funds from private postsecondary institutions. The commissioner 
19.17 	may accept, on behalf of the state, funds donated from private postsecondary institutions, 
19.18 	as the state's share in claiming federal Title IV-E reimbursement, to support the Child 
19.19 	Welfare State/University Partnership, consistent with Code of Federal Regulations, title 45, 
19.20 	chapter 235, section 235.66, Sources of State Funds, if the funds:
19.21 	(1) are transferred to the state and under the state's administrative control;
19.22 	(2) are donated with no restriction that the funds be used for the training of a particular 
19.23 	individual or at a particular facility or institution; and
19.24 	(3) do not revert to the donor's facility or use.

19.25 	Sec. 28. [142A.06] ADMINISTRATION OF FEDERAL GRANTS-IN-AID.
19.26 		Subdivision 1.Administration of grants-in-aid. If, when and during such time as 
19.27 	grants-in-aid are provided by the federal government for relief of the poor and accepted by 
19.28 	this state, such aid shall be administered pursuant to and in accordance with rules promulgated 
19.29 	and adopted by the commissioner of children, youth, and families; and during such time 
19.30 	any provision of Minnesota Statutes 1945, chapter 261, as amended by Laws 1947, chapter 
19.31 	546, of Minnesota Statutes 1945, chapter 262, and of Minnesota Statutes 1945, chapter 263, 
20.1 	in conflict with such rules shall be and remain, to the extent of such conflict, inoperative 
20.2 	and suspended.
20.3 		Subd. 2.Treatment of grants-in-aid. Grants-in-aid received from the federal government 
20.4 	for any welfare, assistance or relief program or for administration under the jurisdiction of 
20.5 	the commissioner shall, in the first instance, be credited to a federal grant fund and shall be 
20.6 	transferred therefrom to the credit of the commissioner in the appropriate account upon 
20.7 	certification of the commissioner that the amounts so requested to be transferred have been 
20.8 	earned or are required for the purposes and programs intended. Moneys received by the 
20.9 	federal grant fund need not be budgeted as such, provided transfers from the fund are 
20.10 	budgeted for allotment purposes in the appropriate appropriations.
20.11 		Subd. 3.Securing grants-in-aid. The commissioner shall negotiate with the federal 
20.12 	government, or any agency, bureau, or department thereof, for the purpose of securing or 
20.13 	obtaining any grants or aids. Any grants or aids thus secured or received are appropriated 
20.14 	to the commissioner and made available for the uses and purposes for which they were 
20.15 	received but shall be used to reduce the direct appropriations provided by law unless federal 
20.16 	law prohibits such action or unless the commissioner obtains approval of the governor who 
20.17 	shall seek the advice of the Legislative Advisory Commission.
20.18 		Subd. 4.Exclusion. This section does not apply to federal grants or aids received from 
20.19 	the United States Department of Education.

20.20 	Sec. 29. [142A.07] GRANTS AND PURCHASE OF SERVICE CONTRACTS.
20.21 		Subdivision 1.Authority. The local agency may purchase community social services 
20.22 	by grant or purchase of service contract from agencies or individuals approved as vendors.
20.23 		Subd. 2.Duties of local agency. The local agency must:
20.24 	(1) use a written grant or purchase of service contract when purchasing community social 
20.25 	services. Every grant and purchase of service contract must be completed, signed, and 
20.26 	approved by all parties to the agreement, including the county board, unless the county 
20.27 	board has designated the local agency to sign on its behalf. No service shall be provided 
20.28 	before the effective date of the grant or purchase of service contract;
20.29 	(2) determine a client's eligibility for purchased services, or delegate the responsibility 
20.30 	for making the preliminary determination to the approved vendor under the terms of the 
20.31 	grant or purchase of service contract;
20.32 	(3) ensure the development of an individual social service plan based on the client's 
20.33 	needs;
21.1 	(4) monitor purchased services and evaluate grants and contracts on the basis of client 
21.2 	outcomes; and
21.3 	(5) purchase only from approved vendors.
21.4 		Subd. 3.Local agency criteria. When the local agency chooses to purchase community 
21.5 	social services from a vendor that is not subject to state licensing laws or department rules, 
21.6 	the local agency must establish written criteria for vendor approval to ensure the health, 
21.7 	safety, and well being of clients.
21.8 		Subd. 4.Case records and reporting requirements. Case records and data reporting 
21.9 	requirements for grants and purchased services are the same as case record and data reporting 
21.10 	requirements for direct services.
21.11 		Subd. 5.Files. The local agency must keep an administrative file for each grant and 
21.12 	contract.
21.13 		Subd. 6.Contracting within and across county lines; lead county contracts; lead 
21.14 	Tribal contracts. (a) Paragraphs (b) to (f) govern contracting within and across county 
21.15 	lines and lead county contracts. Paragraphs (b) to (f) govern contracting within and across 
21.16 	reservation boundaries and lead Tribal contracts for initiative Tribes under section 142A.03, 
21.17 	subdivision 9. For purposes of this subdivision, "local agency" includes a Tribe or a county 
21.18 	agency.
21.19 	(b) Once a local agency and an approved vendor execute a contract that meets the 
21.20 	requirements of this subdivision, the contract governs all other purchases of service from 
21.21 	the vendor by all other local agencies for the term of the contract. The local agency that 
21.22 	negotiated and entered into the contract becomes the lead Tribe or county for the contract.
21.23 	(c) When the local agency in the county or reservation where a vendor is located wants 
21.24 	to purchase services from that vendor and the vendor has no contract with the local agency 
21.25 	or any other Tribe or county, the local agency must negotiate and execute a contract with 
21.26 	the vendor.
21.27 	(d) When a local agency wants to purchase services from a vendor located in another 
21.28 	county or reservation, it must notify the local agency in the county or reservation where the 
21.29 	vendor is located. Within 30 days of being notified, the local agency in the vendor's county 
21.30 	or reservation must:
21.31 	(1) if it has a contract with the vendor, send a copy to the inquiring local agency;
21.32 	(2) if there is a contract with the vendor for which another local agency is the lead Tribe 
21.33 	or county, identify the lead Tribe or county to the inquiring agency; or
22.1 	(3) if no local agency has a contract with the vendor, inform the inquiring agency whether 
22.2 	it will negotiate a contract and become the lead Tribe or county. If the agency where the 
22.3 	vendor is located will not negotiate a contract with the vendor because of concerns related 
22.4 	to clients' health and safety, the agency must share those concerns with the inquiring local 
22.5 	agency.
22.6 	(e) If the local agency in the county where the vendor is located declines to negotiate a 
22.7 	contract with the vendor or fails to respond within 30 days of receiving the notification 
22.8 	under paragraph (d), the inquiring agency is authorized to negotiate a contract and must 
22.9 	notify the local agency that declined or failed to respond.
22.10 	(f) When the inquiring local agency under paragraph (e) becomes the lead Tribe or 
22.11 	county for a contract and the contract expires and needs to be renegotiated, that Tribe or 
22.12 	county must again follow the requirements under paragraph (d) and notify the local agency 
22.13 	where the vendor is located. The local agency where the vendor is located has the option 
22.14 	of becoming the lead Tribe or county for the new contract. If the local agency does not 
22.15 	exercise the option, paragraph (e) applies.
22.16 		Subd. 7.Contracting for performance. A local agency may negotiate a supplemental 
22.17 	agreement to a contract executed between a lead agency and an approved vendor under 
22.18 	subdivision 6 for the purposes of contracting for specific performance. The supplemental 
22.19 	agreement may augment the lead contract requirements and rates for services authorized 
22.20 	by that local agency only. The additional provisions must be negotiated with the vendor 
22.21 	and designed to encourage successful, timely, and cost-effective outcomes for clients, and 
22.22 	may establish incentive payments, penalties, performance-related reporting requirements, 
22.23 	and similar conditions. The per diem rate allowed under this subdivision must not be less 
22.24 	than the rate established in the lead county contract. Nothing in the supplemental agreement 
22.25 	between a local agency and an approved vendor binds the lead agency or other local agencies 
22.26 	to the terms and conditions of the supplemental agreement.

22.27 	Sec. 30. [142A.08] PLAIN LANGUAGE IN WRITTEN MATERIALS.
22.28 	(a) To the extent reasonable and consistent with the goals of providing easily 
22.29 	understandable and readable materials and complying with federal and state laws governing 
22.30 	the programs, all written materials relating to services and determinations of eligibility for 
22.31 	or amounts of benefits that will be given to applicants for or recipients of assistance under 
22.32 	a program administered or supervised by the commissioner must be understandable to a 
22.33 	person who reads at the seventh-grade level, using the Flesch scale analysis readability 
22.34 	score as determined under section 72C.09.
23.1 	(b) All written materials relating to determinations of eligibility for or amounts of benefits 
23.2 	that will be  given to applicants for or recipients of assistance under programs administered 
23.3 	or supervised by the  commissioner must be developed to satisfy the plain language 
23.4 	requirements of the Plain Language Contract Act under sections 325G.29 to 325G.36. 
23.5 	Materials may be submitted to the attorney general for review and certification. 
23.6 	Notwithstanding section 325G.35, subdivision 1, the attorney general shall review submitted 
23.7 	materials to determine whether they comply with the requirements of section 325G.31. The 
23.8 	remedies available pursuant to sections 8.31 and 325G.33 to 325G.36 do not apply to these 
23.9 	materials. Failure to comply with this section does not provide a basis for suspending the 
23.10 	implementation or operation of other laws governing programs administered by the 
23.11 	commissioner.
23.12 	(c) The requirements of this section do not apply to materials that must be submitted to 
23.13 	a federal agency for approval, to the extent that application of the requirements prevents 
23.14 	federal approval.
23.15 	(d) Nothing in this section may be construed to prohibit a lawsuit brought to require the 
23.16 	commissioner to comply with this section or to affect individual appeal rights granted 
23.17 	pursuant to section 256.045.

23.18 	Sec. 31. [142A.09] BACKGROUND STUDIES ON LICENSEES AND OTHER 
23.19 	PERSONNEL.
23.20 		Subdivision 1.Background studies required. The commissioner of children, youth, 
23.21 	and families shall contract with the commissioner of human services to conduct background 
23.22 	studies of individuals specified in section 245C.03, subdivision 1, affiliated with:
23.23 	(1) a facility or program licensed or seeking a license under chapter 142B;
23.24 	(2) a license-exempt child care center certified under chapter 142C; or
23.25 	(3) a legal nonlicensed child care provider authorized under chapter 142E.
23.26 		Subd. 2.Responsibilities of commissioner of human services. (a) The commissioner 
23.27 	of human services shall conduct the background studies required by subdivision 1 in 
23.28 	compliance with the provisions of chapter 245C. The commissioner of human services shall 
23.29 	provide necessary forms and instructions, shall conduct the necessary background studies 
23.30 	of individuals, and shall provide notification of the results of the studies to the facilities, 
23.31 	individuals, and the commissioner of children, youth, and families.
23.32 	(b) If the commissioner of human services determines that an individual is disqualified 
23.33 	pursuant to chapter 245C, the commissioner of human services shall notify the license 
24.1 	holder; the commissioner of children, youth, and families; and the individual and shall 
24.2 	inform the individual of the right to request a reconsideration of the disqualification.
24.3 		Subd. 3.Reconsiderations. (a) Notwithstanding any provision of chapter 245C, the 
24.4 	commissioner of children, youth, and families shall review and decide reconsideration 
24.5 	requests, including requests for variances, for all background studies of individuals in 
24.6 	subdivision 1, paragraph (a), except for facilities or programs that are also licensed by the 
24.7 	commissioner of human services. The commissioner of children, youth, and families must 
24.8 	review and decide reconsideration requests in accordance with the procedures and criteria 
24.9 	contained in chapter 245C.
24.10 	(b) The commissioner of human services is solely responsible for reviewing and deciding 
24.11 	a reconsideration request for a background study of an individual affiliated with a facility 
24.12 	or program licensed or certified by both the commissioner of children, youth, and families 
24.13 	and the commissioner of human services.
24.14 	(c) The commissioner of children, youth, and family's decision must be provided to the 
24.15 	individual and to the commissioner of human services. The commissioner's decision to grant 
24.16 	or deny a reconsideration of disqualification is the final administrative agency action, except 
24.17 	under the circumstances described in sections 245C.25, 245C.27, and 245C.28, subdivision 
24.18 	3.
24.19 		Subd. 4.Responsibilities of facilities and programs. Facilities and programs described 
24.20 	in subdivision 1 shall be responsible for cooperating with the departments in implementing 
24.21 	the provisions of this section. The responsibilities imposed on applicants, certification 
24.22 	holders, and licensees under chapters 245A and 245C shall apply to these facilities. The 
24.23 	provision of section 245C.09 shall apply to the refusal to cooperate with the completion of 
24.24 	the background studies by an applicant, a licensee, a registrant, or an individual.

24.25 	Sec. 32. [142A.10] COMPLIANCE SYSTEM.
24.26 	(a) The commissioner shall coordinate with the commissioner of human services to 
24.27 	administer the compliance system in section 256.017.
24.28 	(b) The commissioner shall administer the compliance system for the Minnesota family 
24.29 	investment program, the Supplemental Nutrition Assistance Program (SNAP), the child 
24.30 	care assistance program, and all other programs administered by the commissioner or on 
24.31 	behalf of the commissioner under the powers and authorities named in section 142A.03, 
24.32 	subdivision 2.
25.1 	(c) The purpose of this section is to permit the commissioner to supervise the 
25.2 	administration of public assistance programs; to enforce timely and accurate distribution 
25.3 	of benefits, completeness of service, and efficient and effective program management and 
25.4 	operations; to increase uniformity and consistency in the administration and delivery of 
25.5 	public assistance programs throughout the state; and to reduce the possibility of sanctions 
25.6 	and fiscal disallowances for noncompliance with federal regulations and state statutes. The 
25.7 	commissioner, or the commissioner's representative, may issue administrative subpoenas 
25.8 	as needed in administering the compliance system.
25.9 	(d) The commissioner shall utilize training, technical assistance, and monitoring activities, 
25.10 	as specified in section 142A.03, subdivision 2, to encourage county agency compliance 
25.11 	with written policies and procedures.
25.12 	(e) The commissioner shall coordinate with the commissioner of human services in 
25.13 	funding and awarding grants from the county public assistance incentive fund under section 
25.14 	256.018.

25.15 	Sec. 33. [142A.11] COUNTY PUBLIC ASSISTANCE INCENTIVE FUND.
25.16 	(a) The commissioner of children, youth, and families, in coordination with the 
25.17 	commissioner of human services, shall grant incentive awards of money specifically 
25.18 	appropriated for this purpose to counties that: (1) have not been assessed an administrative 
25.19 	penalty under section 256.017 in the corresponding fiscal year; and (2) perform satisfactorily 
25.20 	according to indicators established by the commissioner.
25.21 	(b) After consultation with county agencies, the commissioner shall inform county 
25.22 	agencies in writing of the performance indicators that govern the awarding of the incentive 
25.23 	fund for each fiscal year by April of the preceding fiscal year.
25.24 	(c) The commissioner may set performance indicators to govern the awarding of the 
25.25 	total fund, may allocate portions of the fund to be awarded by unique indicators, or may set 
25.26 	a sole indicator to govern the awarding of funds.
25.27 	(d) The funds shall be awarded to qualifying county agencies according to their share 
25.28 	of benefits for the programs related to the performance indicators governing the distribution 
25.29 	of the fund or part of the fund as compared to the total benefits of all qualifying county 
25.30 	agencies for the programs related to the performance indicators governing the distribution 
25.31 	of the fund or part of the fund.

26.1 	Sec. 34. [142A.12] LIMITS ON RECEIVING PUBLIC FUNDS.
26.2 		Subdivision 1.Prohibition. (a) If a provider, vendor, or individual enrolled, licensed, 
26.3 	receiving funds under a grant contract, or registered in any program administered by the 
26.4 	commissioner, including under the commissioner's powers and authorities in section 142A.03, 
26.5 	is excluded from that program, the commissioner shall:
26.6 	(1) prohibit the excluded provider, vendor, or individual from enrolling, becoming 
26.7 	licensed, receiving grant funds, or registering in any other program administered by the 
26.8 	commissioner; and
26.9 	(2) disenroll, revoke or suspend a license, disqualify, or debar the excluded provider, 
26.10 	vendor, or individual in any other program administered by the commissioner.
26.11 	(b) If a provider, vendor, or individual enrolled, licensed, receiving funds under a grant 
26.12 	contract, or registered in any program administered by the commissioner, including under 
26.13 	the commissioner's powers and authorities in section 142A.03, is excluded from that program, 
26.14 	the commissioner may:
26.15 	(1) prohibit any associated entities or associated individuals from enrolling, becoming 
26.16 	licensed, receiving grant funds, or registering in any other program administered by the 
26.17 	commissioner; and
26.18 	(2) disenroll, revoke or suspend a license of, disqualify, or debar any associated entities 
26.19 	or associated individuals in any other program administered by the commissioner.
26.20 	(c) If a provider, vendor, or individual enrolled, licensed, or otherwise receiving funds 
26.21 	under any contract or registered in any program administered by a Minnesota state or federal 
26.22 	agency is excluded from that program, the commissioner of children, youth, and families 
26.23 	may:
26.24 	(1) prohibit the excluded provider, vendor, individual, or any associated entities or 
26.25 	associated individuals from enrolling, becoming licensed, receiving grant funds, or registering 
26.26 	in any program administered by the commissioner; and
26.27 	(2) disenroll, revoke or suspend a license of, disqualify, or debar the excluded provider, 
26.28 	vendor, individual, or any associated entities or associated individuals in any program 
26.29 	administered by the commissioner.
26.30 	(d) The duration of a prohibition, disenrollment, revocation, suspension, disqualification, 
26.31 	or debarment under paragraph (a) must last for the longest applicable sanction or 
26.32 	disqualifying period in effect for the provider, vendor, or individual permitted by state or 
26.33 	federal law. The duration of a prohibition, disenrollment, revocation, suspension, 
27.1 	disqualification, or debarment under paragraphs (b) and (c) may last until up to the longest 
27.2 	applicable sanction or disqualifying period in effect for the provider, vendor, individual, 
27.3 	associated entity, or associated individual as permitted by state or federal law.
27.4 		Subd. 2.Definitions. (a) For purposes of this section, the following definitions have the 
27.5 	meanings given.
27.6 	(b) "Associated entity" means a provider or vendor owned or controlled by an excluded 
27.7 	individual.
27.8 	(c) "Associated individual" means an individual or entity that has a relationship with 
27.9 	the business or its owners or controlling individuals, such that the individual or entity would 
27.10 	have knowledge of the financial practices of the program in question.
27.11 	(d) "Excluded" means removed under other authorities from a program administered by 
27.12 	a Minnesota state or federal agency, including a final determination to stop payments.
27.13 	(e) "Individual" means a natural person providing products or services as a provider or 
27.14 	vendor.
27.15 	(f) "Provider" means any entity, individual, owner, controlling individual, license holder, 
27.16 	director, or managerial official of an entity receiving payment from a program administered 
27.17 	by a Minnesota state or federal agency.
27.18 		Subd. 3.Notice. Within five days of taking an action under subdivision (1), paragraph 
27.19 	(a), (b), or (c), against a provider, vendor, individual, associated individual, or associated 
27.20 	entity, the commissioner must send notice of the action to the provider, vendor, individual, 
27.21 	associated individual, or associated entity. The notice must state:
27.22 	(1) the basis for the action;
27.23 	(2) the effective date of the action;
27.24 	(3) the right to appeal the action; and
27.25 	(4) the requirements and procedures for reinstatement.
27.26 		Subd. 4.Appeal. Upon receipt of a notice under subdivision 3, a provider, vendor, 
27.27 	individual, associated individual, or associated entity may request a contested case hearing, 
27.28 	as defined in section 14.02, subdivision 3, by filing with the commissioner a written request 
27.29 	of appeal. The scope of any contested case hearing is solely limited to action taken under 
27.30 	this section. The commissioner must receive the appeal request no later than 30 days after 
27.31 	the date the notice was mailed to the provider, vendor, individual, associated individual, or 
27.32 	associated entity. The appeal request must specify:
28.1 	(1) each disputed item and the reason for the dispute;
28.2 	(2) the authority in statute or rule upon which the provider, vendor, individual, associated 
28.3 	individual, or associated entity relies for each disputed item;
28.4 	(3) the name and address of the person or entity with whom contacts may be made 
28.5 	regarding the appeal; and
28.6 	(4) any other information required by the commissioner.
28.7 		Subd. 5.Withholding of payments. (a) Except as otherwise provided by state or federal 
28.8 	law, the commissioner may withhold payments to a provider, vendor, individual, associated 
28.9 	individual, or associated entity in any program administered by the commissioner if the 
28.10 	commissioner determines there is a credible allegation of fraud for which an investigation 
28.11 	is pending for a program administered by a Minnesota state or federal agency.
28.12 	(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation 
28.13 	that has been verified by the commissioner from any source, including but not limited to:
28.14 	(1) fraud hotline complaints;
28.15 	(2) claims data mining;
28.16 	(3) patterns identified through provider audits, civil false claims cases, and law 
28.17 	enforcement investigations; and
28.18 	(4) court filings and other legal documents, including but not limited to police reports, 
28.19 	complaints, indictments, informations, affidavits, declarations, and search warrants.
28.20 	(c) The commissioner must send notice of the withholding of payments within five days 
28.21 	of taking such action. The notice must:
28.22 	(1) state that payments are being withheld according to this subdivision;
28.23 	(2) set forth the general allegations related to the withholding action, except the notice 
28.24 	need not disclose specific information concerning an ongoing investigation;
28.25 	(3) state that the withholding is for a temporary period and cite the circumstances under 
28.26 	which the withholding will be terminated; and
28.27 	(4) inform the provider, vendor, individual, associated individual, or associated entity 
28.28 	of the right to submit written evidence to contest the withholding action for consideration 
28.29 	by the commissioner.
28.30 	(d) If the commissioner withholds payments under this subdivision, the provider, vendor, 
28.31 	individual, associated individual, or associated entity has a right to request administrative 
29.1 	reconsideration. A request for administrative reconsideration must be made in writing, state 
29.2 	with specificity the reasons the payment withholding decision is in error, and include 
29.3 	documents to support the request. Within 60 days from receipt of the request, the 
29.4 	commissioner shall judiciously review allegations, facts, evidence available to the 
29.5 	commissioner, and information submitted by the provider, vendor, individual, associated 
29.6 	individual, or associated entity to determine whether the payment withholding should remain 
29.7 	in place.
29.8 	(e) The commissioner shall stop withholding payments if the commissioner determines 
29.9 	there is insufficient evidence of fraud by the provider, vendor, individual, associated 
29.10 	individual, or associated entity or when legal proceedings relating to the alleged fraud are 
29.11 	completed, unless the commissioner has sent notice under subdivision 3 to the provider, 
29.12 	vendor, individual, associated individual, or associated entity.
29.13 	(f) The withholding of payments is a temporary action and is not subject to appeal under 
29.14 	section 142A.21 or chapter 14.

29.15 	Sec. 35. [142A.13] ELECTRONIC BENEFIT TRANSFER CARD.
29.16 		Subdivision 1.Electronic benefit transfer (EBT) card. Cash benefits for the general 
29.17 	assistance and Minnesota supplemental aid programs under chapter 256D and programs 
29.18 	under chapter 142G must be issued on an EBT card with the name of the head of household 
29.19 	printed on the card. The card must include the following statement: "It is unlawful to use 
29.20 	this card to purchase tobacco products or alcoholic beverages." This card must be issued 
29.21 	within 30 calendar days of an eligibility determination. During the initial 30 calendar days 
29.22 	of eligibility, a recipient may have cash benefits issued on an EBT card without a name 
29.23 	printed on the card. This card may be the same card on which Supplemental Nutrition 
29.24 	Assistance Program (SNAP) benefits are issued and does not need to meet the requirements 
29.25 	of this section.

29.26 	Sec. 36. [142A.14] TAX REBATES.
29.27 	Any federal or state tax rebate received by a recipient of a public assistance program 
29.28 	shall not be counted as income or as an asset for purposes of any of the public assistance 
29.29 	programs under this chapter or any other chapter, including, but not limited to, chapter 
29.30 	142E, 142F, and 142G to the extent permitted under federal law.

30.1 	Sec. 37. [142A.15] PUBLIC ASSISTANCE LIEN ON RECIPIENT'S CAUSE OF 
30.2 	ACTION.
30.3 		Subdivision 1.State agency has lien. When the state agency provides, pays for, or 
30.4 	becomes liable for medical care or furnishes subsistence or other payments to a person, the 
30.5 	agency shall have a lien for the cost of the care and payments on any and all causes of action 
30.6 	or recovery rights under any policy, plan, or contract providing benefits for health care or 
30.7 	injury that accrue to the person to whom the care or payments were furnished, or to the 
30.8 	person's legal representatives, as a result of the occurrence that necessitated the medical 
30.9 	care, subsistence, or other payments. For purposes of this section, "state agency" includes 
30.10 	prepaid health plans under contract with the commissioner according to sections 256B.69, 
30.11 	256L.01, subdivision 7, 256L.03, subdivision 6, and 256L.12, and Minnesota Statutes 2009 
30.12 	Supplement, section 256D.03, subdivision 4, paragraph (c); children's mental health 
30.13 	collaboratives under section 245.493; demonstration projects for persons with disabilities 
30.14 	under section 256B.77; nursing homes reimbursed under chapter 256R; and county-based 
30.15 	purchasing entities under section 256B.692.
30.16 		Subd. 2.Perfection; enforcement. (a) The state agency may perfect and enforce its lien 
30.17 	under sections 514.69, 514.70, and 514.71, and must file the verified lien statement with 
30.18 	the appropriate court administrator in the county of financial responsibility. The verified 
30.19 	lien statement must contain the following: the name and address of the person to whom 
30.20 	medical care, subsistence, or other payment was furnished; the date of injury; the name and 
30.21 	address of vendors furnishing medical care; the dates of the service or payment; the amount 
30.22 	claimed to be due for the care or payment; and to the best of the state agency's knowledge, 
30.23 	the names and addresses of all persons, firms, or corporations claimed to be liable for 
30.24 	damages arising from the injuries.
30.25 	(b) This section does not affect the priority of any attorney's lien. The state agency is 
30.26 	not subject to any limitations period referred to in section 514.69 or 514.71 and has one 
30.27 	year from the date notice is first received by it under subdivision 4, paragraph (c), even if 
30.28 	the notice is untimely, or one year from the date medical bills are first paid by the state 
30.29 	agency, whichever is later, to file its verified lien statement. The state agency may commence 
30.30 	an action to enforce the lien within one year of (1) the date the notice required by subdivision 
30.31 	4, paragraph (c), is received, or (2) the date the person's cause of action is concluded by 
30.32 	judgment, award, settlement, or otherwise, whichever is later.
30.33 	(c) If the notice required in subdivision 4 is not provided by any of the parties to the 
30.34 	claim at any stage of the claim, the state agency will have one year from the date the state 
30.35 	agency learns of the lack of notice to commence an action. If amounts on the claim or cause 
31.1 	of action are paid and the amount required to be paid to the state agency under subdivision 
31.2 	5 is not paid to the state agency, the state agency may commence an action to recover on 
31.3 	the lien against any or all of the parties or entities that have either paid or received the 
31.4 	payments.
31.5 		Subd. 3.Prosecutor. (a) The attorney general shall represent the commissioner to enforce 
31.6 	the lien created under this section or, if no action has been brought, may initiate and prosecute 
31.7 	an independent action on behalf of the commissioner against a person, firm, or corporation 
31.8 	that may be liable to the person to whom the care or payment was furnished.
31.9 	(b) Any prepaid health plan providing services under sections 256B.69 and 256L.12 and 
31.10 	Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, paragraph (c); 
31.11 	children's mental health collaboratives under section 245.493; demonstration projects for 
31.12 	persons with disabilities under section 256B.77; nursing homes reimbursed under chapter 
31.13 	256R; or the county-based purchasing entity providing services under section 256B.692 
31.14 	may retain legal representation to enforce their lien created under this section or, if no action 
31.15 	has been brought, may initiate and prosecute an independent action on their behalf against 
31.16 	a person, firm, or corporation that may be liable to the person to whom the care or payment 
31.17 	was furnished.
31.18 		Subd. 4.Notice. (a) The state agency must be given notice of monetary claims against 
31.19 	a person, firm, or corporation that may be liable in damages to the injured person when the 
31.20 	state agency has paid for or become liable for the cost of medical care or payments related 
31.21 	to the injury. Notice must be given as provided in this subdivision.
31.22 	(b) Applicants for public assistance shall notify the state or county agency of any possible 
31.23 	claims they may have against a person, firm, or corporation when they submit the application 
31.24 	for assistance. Recipients of public assistance shall notify the state or county agency of any 
31.25 	possible claims when those claims arise.
31.26 	(c) A person providing medical care services to a recipient of public assistance shall 
31.27 	notify the state agency when the person has reason to believe that a third party may be liable 
31.28 	for payment of the cost of medical care.
31.29 	(d) A party to a claim upon which the state agency may be entitled to a lien under this 
31.30 	section shall notify the state agency of its potential lien claim at each of the following stages 
31.31 	of a claim:
31.32 	(1) when a claim is filed;
31.33 	(2) when an action is commenced; and
32.1 	(3) when a claim is concluded by payment, award, judgment, settlement, or otherwise.
32.2 	(e) Every party involved in any stage of a claim under this subdivision is required to 
32.3 	provide notice to the state agency at that stage of the claim. However, when one of the 
32.4 	parties to the claim provides notice at that stage, every other party to the claim is deemed 
32.5 	to have provided the required notice at that stage of the claim. If the required notice under 
32.6 	this paragraph is not provided to the state agency, every party will be deemed to have failed 
32.7 	to provide the required notice. A party to a claim includes the injured person or the person's 
32.8 	legal representative, the plaintiff, the defendants, or persons alleged to be responsible for 
32.9 	compensating the injured person or plaintiff, and any other party to the cause of action or 
32.10 	claim, regardless of whether the party knows the state agency has a potential or actual lien 
32.11 	claim.
32.12 	(f) Notice given to the county agency is not sufficient to meet the requirements of 
32.13 	paragraphs (c) and (d).
32.14 		Subd. 5.Costs deducted. Upon any judgment, award, or settlement of a cause of action, 
32.15 	or any part of it, upon which the state agency has filed its lien, including compensation for 
32.16 	liquidated, unliquidated, or other damages, reasonable costs of collection, including attorney 
32.17 	fees, must be deducted first. The full amount of public assistance paid to or on behalf of the 
32.18 	person as a result of the injury must be deducted next, and paid to the state agency. The rest 
32.19 	must be paid to the public assistance recipient or other plaintiff. The plaintiff, however, 
32.20 	must receive at least one-third of the net recovery after attorney fees and other collection 
32.21 	costs.
32.22 		Subd. 6.When effective. The lien created under this section is effective with respect to 
32.23 	any public assistance paid on or after August 1, 1987.
32.24 		Subd. 7.Cooperation with information requests required. (a) Upon the request of 
32.25 	the commissioner:
32.26 	(1) any state agency or third-party payer shall cooperate by furnishing information to 
32.27 	help establish a third-party liability, as required by the federal Deficit Reduction Act of 
32.28 	2005, Public Law 109-171;
32.29 	(2) any employer or third-party payer shall cooperate by furnishing a data file containing 
32.30 	information about group health insurance plan or medical benefit plan coverage of its 
32.31 	employees or insureds within 60 days of the request. The information in the data file must 
32.32 	include at least the following: full name, date of birth, Social Security number if collected 
32.33 	and stored in a system routinely used for producing data files by the employer or third-party 
33.1 	payer, employer name, policy identification number, group identification number, and plan 
33.2 	or coverage type.
33.3 	(b) For purposes of section 176.191, subdivision 4, the commissioner of labor and 
33.4 	industry may allow the commissioner of children, youth, and families and county agencies 
33.5 	direct access and data matching on information relating to workers' compensation claims 
33.6 	in order to determine whether the claimant has reported the fact of a pending claim and the 
33.7 	amount paid to or on behalf of the claimant to the commissioner of human services.
33.8 	(c) For the purpose of compliance with section 169.09, subdivision 13, and federal 
33.9 	requirements under Code of Federal Regulations, title 42, section 433.138 (d)(4), the 
33.10 	commissioner of public safety shall provide accident data as requested by the commissioner 
33.11 	of children, youth, and families. The disclosure shall not violate section 169.09, subdivision 
33.12 	13, paragraph (d).
33.13 	(d) The commissioner of children, youth, and families and county agencies shall limit 
33.14 	its use of information gained from agencies, third-party payers, and employers to purposes 
33.15 	directly connected with the administration of its public assistance and child support programs. 
33.16 	The provision of information by agencies, third-party payers, and employers to the department 
33.17 	under this subdivision is not a violation of any right of confidentiality or data privacy.

33.18 	Sec. 38. [142A.20] ADMINISTRATIVE AND JUDICIAL REVIEW OF CHILDREN, 
33.19 	YOUTH, AND FAMILIES MATTERS.
33.20 		Subdivision 1.Children, youth, and families judges; appointment. The commissioner 
33.21 	of children, youth, and families may appoint one or more state children, youth, and families 
33.22 	judges to conduct hearings and recommend orders in accordance with subdivisions 2, 3, 
33.23 	and 5. Children, youth, and families judges designated pursuant to this section may administer 
33.24 	oaths and shall be under the control and supervision of the commissioner of children, youth, 
33.25 	and families and shall not be a part of the Office of Administrative Hearings established 
33.26 	pursuant to sections 14.48 to 14.56. The commissioner shall only appoint as a full-time 
33.27 	children, youth, and families judge an individual who is licensed to practice law in Minnesota 
33.28 	and who is:
33.29 	(1) in active status;
33.30 	(2) an inactive resident;
33.31 	(3) retired;
33.32 	(4) on disabled status; or
34.1 	(5) on retired senior status.
34.2 		Subd. 2.State agency hearings. (a) State agency hearings are available for the following:
34.3 	(1) any person:
34.4 	(i) applying for, receiving, or having received public assistance or a program of social 
34.5 	services administered by the commissioner or a county agency on behalf of the commissioner 
34.6 	or the federal Food and Nutrition Act; and
34.7 	(ii) whose application for assistance is denied, not acted upon with reasonable promptness, 
34.8 	or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly 
34.9 	paid;
34.10 	(2) any person whose claim for foster care payment according to a placement of the 
34.11 	child resulting from a child protection assessment under chapter 260E is denied or not acted 
34.12 	upon with reasonable promptness, regardless of funding source;
34.13 	(3) any person to whom a right of appeal according to this section is given by other 
34.14 	provision of law;
34.15 	(4) except as provided under chapter 142B, an individual or facility determined to have 
34.16 	maltreated a minor under chapter 260E, after the individual or facility has exercised the 
34.17 	right to administrative reconsideration under chapter 260E;
34.18 	(5) except as provided under chapter 245C, an individual disqualified under sections 
34.19 	245C.14 and 245C.15, following a reconsideration decision issued under section 245C.23, 
34.20 	on the basis of serious or recurring maltreatment; of a preponderance of the evidence that 
34.21 	the individual has committed an act or acts that meet the definition of any of the crimes 
34.22 	listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports required under 
34.23 	section 260E.06, subdivision 1, or 626.557, subdivision 3. Hearings regarding a maltreatment 
34.24 	determination under clause (4) and a disqualification under this clause in which the basis 
34.25 	for a disqualification is serious or recurring maltreatment shall be consolidated into a single 
34.26 	fair hearing. In such cases, the scope of review by the children, youth, and families judge 
34.27 	shall include both the maltreatment determination and the disqualification. The failure to 
34.28 	exercise the right to an administrative reconsideration shall not be a bar to a hearing under 
34.29 	this section if federal law provides an individual the right to a hearing to dispute a finding 
34.30 	of maltreatment; and
34.31 	(6) any person with an outstanding debt resulting from receipt of public assistance or 
34.32 	the federal Food and Nutrition Act who is contesting a setoff claim by the commissioner 
34.33 	of children, youth, and families or a county agency. The scope of the appeal is the validity 
35.1 	of the claimant agency's intention to request a setoff of a refund under chapter 270A against 
35.2 	the debt.
35.3 	(b) The hearing for an individual or facility under paragraph (a), clause (4) or (5), is the 
35.4 	only administrative appeal to the final agency determination specifically, including a 
35.5 	challenge to the accuracy and completeness of data under section 13.04. A hearing for an 
35.6 	individual or facility under paragraph (a), clause (4) or (5), is only available when there is 
35.7 	no district court action pending. If such action is filed in district court while an administrative 
35.8 	review is pending that arises out of some or all of the events or circumstances on which the 
35.9 	appeal is based, the administrative review must be suspended until the judicial actions are 
35.10 	completed. If the district court proceedings are completed, dismissed, or overturned, the 
35.11 	matter may be considered in an administrative hearing.
35.12 	(c) For purposes of this section, bargaining unit grievance procedures are not an 
35.13 	administrative appeal.
35.14 	(d) The scope of hearings involving claims to foster care payments under paragraph (a), 
35.15 	clause (2), shall be limited to the issue of whether the county is legally responsible for a 
35.16 	child's placement under court order or voluntary placement agreement and, if so, the correct 
35.17 	amount of foster care payment to be made on the child's behalf and shall not include review 
35.18 	of the propriety of the county's child protection determination or child placement decision.
35.19 	(e) An applicant or recipient is not entitled to receive social services beyond the services 
35.20 	prescribed under chapter 256M or other social services the person is eligible for under state 
35.21 	law.
35.22 	(f) The commissioner may summarily affirm the county or state agency's proposed action 
35.23 	without a hearing when the sole issue is an automatic change due to a change in state or 
35.24 	federal law.
35.25 	(g) Unless federal or Minnesota law specifies a different time frame in which to file an 
35.26 	appeal, an individual or organization specified in this section may contest the specified 
35.27 	action, decision, or final disposition before the state agency by submitting a written request 
35.28 	for a hearing to the state agency within 30 days after receiving written notice of the action, 
35.29 	decision, or final disposition or within 90 days of such written notice if the applicant, 
35.30 	recipient, patient, or relative shows good cause, as defined in section 142A.21, subdivision 
35.31 	13, why the request was not submitted within the 30-day time limit. The individual filing 
35.32 	the appeal has the burden of proving good cause by a preponderance of the evidence.
35.33 		Subd. 3.Standard of evidence for maltreatment and disqualification hearings. (a) 
35.34 	The state children, youth, and families judge shall determine that maltreatment has occurred 
36.1 	if a preponderance of evidence exists to support the final disposition under chapter 260E 
36.2 	or section 626.557. For purposes of hearings regarding disqualification, the state children, 
36.3 	youth, and families judge shall affirm the proposed disqualification in an appeal under 
36.4 	subdivision 2, paragraph (a), clause (5), if a preponderance of the evidence shows the 
36.5 	individual has:
36.6 	(1) committed maltreatment under section 626.557 or chapter 260E that is serious or 
36.7 	recurring;
36.8 	(2) committed an act or acts meeting the definition of any of the crimes listed in section 
36.9 	245C.15, subdivisions 1 to 4; or
36.10 	(3) failed to make required reports under section 626.557 or chapter 260E, for incidents 
36.11 	in which the final disposition under section 626.557 or chapter 260E was substantiated 
36.12 	maltreatment that was serious or recurring.
36.13 	(b) If the disqualification is affirmed, the state children, youth, and families judge shall 
36.14 	determine whether the individual poses a risk of harm in accordance with the requirements 
36.15 	of section 245C.22, and whether the disqualification should be set aside or not set aside. In 
36.16 	determining whether the disqualification should be set aside, the children, youth, and families 
36.17 	judge shall consider all of the characteristics that cause the individual to be disqualified, 
36.18 	including those characteristics that were not subject to review under paragraph (a), in order 
36.19 	to determine whether the individual poses a risk of harm. A decision to set aside a 
36.20 	disqualification that is the subject of the hearing constitutes a determination that the individual 
36.21 	does not pose a risk of harm and that the individual may provide direct contact services in 
36.22 	the individual program specified in the set aside.
36.23 	(c) If a disqualification is based solely on a conviction or is conclusive for any reason 
36.24 	under section 245C.29, the disqualified individual does not have a right to a hearing under 
36.25 	this section.
36.26 	(d) The state children, youth, and families judge shall recommend an order to the 
36.27 	commissioner of health; education; children, youth, and families; or human services, as 
36.28 	applicable, who shall issue a final order. The commissioner shall affirm, reverse, or modify 
36.29 	the final disposition. Any order of the commissioner issued in accordance with this 
36.30 	subdivision is conclusive upon the parties unless appeal is taken in the manner provided in 
36.31 	subdivision 7. In any licensing appeal under chapters 142B and 245C and sections 144.50 
36.32 	to 144.58 and 144A.02 to 144A.482, the commissioner's determination as to maltreatment 
36.33 	is conclusive, as provided under section 245C.29.
37.1 		Subd. 4.Conduct of hearings. (a) All hearings held pursuant to subdivision 2 or 3 shall 
37.2 	be conducted according to the provisions of the federal Social Security Act and the 
37.3 	regulations implemented in accordance with that act to enable this state to qualify for federal 
37.4 	grants-in-aid and according to the rules and written policies of the commissioner. County 
37.5 	agencies shall install equipment necessary to conduct telephone hearings. A state children, 
37.6 	youth, and families judge may schedule a telephone conference hearing when the distance 
37.7 	or time required to travel to the county agency offices will cause a delay in the issuance of 
37.8 	an order, or to promote efficiency, or at the mutual request of the parties. Hearings may be 
37.9 	conducted by telephone conferences unless the applicant, recipient, former recipient, person, 
37.10 	or facility contesting maltreatment objects. A children, youth, and families judge may grant 
37.11 	a request for a hearing in person by holding the hearing by interactive video technology or 
37.12 	in person. The children, youth, and families judge must hear the case in person if the person 
37.13 	asserts that either the person or a witness has a physical or mental disability that would 
37.14 	impair the person's or witness's ability to fully participate in a hearing held by interactive 
37.15 	video technology. The hearing shall not be held earlier than five days after filing of the 
37.16 	required notice with the county or state agency. The state children, youth, and families judge 
37.17 	shall notify all interested persons of the time, date, and location of the hearing at least five 
37.18 	days before the date of the hearing. Interested persons may be represented by legal counsel 
37.19 	or other representative of their choice, including a provider of therapy services, at the hearing 
37.20 	and may appear personally, testify and offer evidence, and examine and cross-examine 
37.21 	witnesses. The applicant, recipient, former recipient, person, or facility contesting 
37.22 	maltreatment shall have the opportunity to examine the contents of the case file and all 
37.23 	documents and records to be used by the county or state agency at the hearing at a reasonable 
37.24 	time before the date of the hearing and during the hearing. In hearings under subdivision 
37.25 	2, paragraph (a), clauses (4) and (5), either party may subpoena the private data relating to 
37.26 	the investigation prepared by the agency under section 626.557 or chapter 260E that are 
37.27 	not otherwise accessible under section 13.04, provided the identity of the reporter may not 
37.28 	be disclosed.
37.29 	(b) The private data obtained by subpoena in a hearing under subdivision 2, paragraph 
37.30 	(a), clause (2), must be subject to a protective order that prohibits its disclosure for any other 
37.31 	purpose outside the hearing provided for in this section without prior order of the district 
37.32 	court. Disclosure without court order is punishable by a sentence of not more than 90 days 
37.33 	imprisonment or a fine of not more than $1,000, or both. These restrictions on the use of 
37.34 	private data do not prohibit access to the data under section 13.03, subdivision 6. Except 
37.35 	for appeals under subdivision 2, paragraph (a), clause (2), upon request, the county agency 
37.36 	shall provide reimbursement for transportation, child care, photocopying, medical assessment, 
38.1 	witness fee, and other necessary and reasonable costs incurred by the applicant, recipient, 
38.2 	or former recipient in connection with the appeal. All evidence, except that privileged by 
38.3 	law, commonly accepted by reasonable people in the conduct of their affairs as having 
38.4 	probative value with respect to the issues, shall be submitted at the hearing and the hearing 
38.5 	shall not be "a contested case" within the meaning of section 14.02, subdivision 3. The 
38.6 	agency must present its evidence prior to or at the hearing and may not submit evidence 
38.7 	after the hearing except by agreement of the parties at the hearing, provided the petitioner 
38.8 	has the opportunity to respond.
38.9 	(c) In hearings under subdivision 2, paragraph (a), clauses (2) and (5), involving 
38.10 	determinations of maltreatment or disqualification made by more than one county agency, 
38.11 	by a county agency and a state agency, or by more than one state agency, the hearings may 
38.12 	be consolidated into a single fair hearing upon the consent of all parties and the state children, 
38.13 	youth, and families judge.
38.14 		Subd. 5.Orders of the commissioner of children, youth, and families. (a) A state 
38.15 	children, youth, and families judge shall conduct a hearing on the appeal and shall recommend 
38.16 	an order to the commissioner of children, youth, and families. The recommended order must 
38.17 	be based on all relevant evidence and must not be limited to a review of the propriety of 
38.18 	the state or county agency's action. A children, youth, and families judge may take official 
38.19 	notice of adjudicative facts. The commissioner of children, youth, and families may accept 
38.20 	the recommended order of a state children, youth, and families judge and issue the order to 
38.21 	the county agency and the applicant, recipient, or former recipient. If the commissioner 
38.22 	refuses to accept the recommended order of the state children, youth, and families judge, 
38.23 	the commissioner shall notify the petitioner or the agency of the commissioner's refusal and 
38.24 	shall state reasons for the refusal. The commissioner shall allow each party ten days' time 
38.25 	to submit additional written argument on the matter. After the expiration of the ten-day 
38.26 	period, the commissioner shall issue an order on the matter to the petitioner and the agency.
38.27 	(b) A party aggrieved by an order of the commissioner may appeal under subdivision 7 
38.28 	or request reconsideration by the commissioner within 30 days after the date the 
38.29 	commissioner issues the order. The commissioner may reconsider an order upon request of 
38.30 	any party or on the commissioner's own motion. A request for reconsideration does not stay 
38.31 	implementation of the commissioner's order. The person seeking reconsideration has the 
38.32 	burden to demonstrate why the matter should be reconsidered. The request for reconsideration 
38.33 	may include legal argument and proposed additional evidence supporting the request. If 
38.34 	proposed additional evidence is submitted, the person must explain why the proposed 
38.35 	additional evidence was not provided at the time of the hearing. If reconsideration is granted, 
39.1 	the other participants must be sent a copy of all material submitted in support of the request 
39.2 	for reconsideration and must be given ten days to respond. Upon reconsideration, the 
39.3 	commissioner may issue an amended order or an order affirming the original order.
39.4 	(c) Any order of the commissioner issued under this subdivision shall be conclusive 
39.5 	upon the parties unless appeal is taken in the manner provided by subdivision 7. Any order 
39.6 	of the commissioner is binding on the parties and must be implemented by the state agency 
39.7 	or a county agency until the order is reversed by the district court or unless the commissioner 
39.8 	or a district court orders monthly assistance or aid or services paid or provided under 
39.9 	subdivision 10.
39.10 	(d) A vendor under contract with a county agency to provide social services is not a 
39.11 	party and may not request a hearing or seek judicial review of an order issued under this 
39.12 	section, unless assisting a recipient as provided in subdivision 4.
39.13 		Subd. 6.Additional powers of commissioner; subpoenas. (a) The commissioner may 
39.14 	initiate a review of any action or decision of a county agency and direct that the matter be 
39.15 	presented to a state children, youth, and families judge for a hearing held under subdivision 
39.16 	2 or 3. In all matters dealing with children, youth, and families committed by law to the 
39.17 	discretion of the county agency, the commissioner's judgment may be substituted for that 
39.18 	of the county agency. The commissioner may order an independent examination when 
39.19 	appropriate.
39.20 	(b) Any party to a hearing held pursuant to subdivision 2 or 3 may request that the 
39.21 	commissioner issue a subpoena to compel the attendance of witnesses and the production 
39.22 	of records at the hearing. A local agency may request that the commissioner issue a subpoena 
39.23 	to compel the release of information from third parties prior to a request for a hearing under 
39.24 	section 142A.21 upon a showing of relevance to such a proceeding. The issuance, service, 
39.25 	and enforcement of subpoenas under this subdivision is governed by section 357.22 and 
39.26 	the Minnesota Rules of Civil Procedure.
39.27 	(c) The commissioner may issue a temporary order staying a proposed demission by a 
39.28 	residential facility licensed under chapter 142B:
39.29 	(1) while an appeal by a recipient under subdivision 3 is pending; or
39.30 	(2) for the period of time necessary for the case management provider to implement the 
39.31 	commissioner's order.
39.32 		Subd. 7.Judicial review. Any party who is aggrieved by an order of the commissioner 
39.33 	of children, youth, and families may appeal the order to the district court of the county 
40.1 	responsible for furnishing assistance, or, in appeals under subdivision 3, the county where 
40.2 	the maltreatment occurred, by serving a written copy of a notice of appeal upon the 
40.3 	commissioner and any adverse party of record within 30 days after the date the commissioner 
40.4 	issued the order, the amended order, or order affirming the original order, and by filing the 
40.5 	original notice and proof of service with the court administrator of the district court. Service 
40.6 	may be made personally or by mail; service by mail is complete upon mailing. The court 
40.7 	administrator shall not require a filing fee in appeals taken pursuant to this subdivision, 
40.8 	except for appeals taken under subdivision 3. The commissioner may elect to become a 
40.9 	party to the proceedings in the district court. Except for appeals under subdivision 3, any 
40.10 	party may demand that the commissioner furnish all parties to the proceedings with a copy 
40.11 	of the decision, and a transcript of any testimony, evidence, or other supporting papers from 
40.12 	the hearing held before the children, youth, and families judge, by serving a written demand 
40.13 	upon the commissioner within 30 days after service of the notice of appeal. Any party 
40.14 	aggrieved by the failure of an adverse party to obey an order issued by the commissioner 
40.15 	under subdivision 5 may compel performance according to the order in the manner prescribed 
40.16 	in sections 586.01 to 586.12.
40.17 		Subd. 8.Hearing. Any party may obtain a hearing at a special term of the district court 
40.18 	by serving a written notice of the time and place of the hearing at least ten days prior to the 
40.19 	date of the hearing. The court may consider the matter in or out of chambers, and shall take 
40.20 	no new or additional evidence unless it determines that such evidence is necessary for a 
40.21 	more equitable disposition of the appeal.
40.22 		Subd. 9.Appeal. Any party aggrieved by the order of the district court may appeal the 
40.23 	order as in other civil cases. Except for appeals under subdivision 3, no costs or disbursements 
40.24 	shall be taxed against any party nor shall any filing fee or bond be required of any party.
40.25 		Subd. 10.Payments pending appeal. If the commissioner of children, youth, and 
40.26 	families or district court orders monthly assistance or aid or services paid or provided in 
40.27 	any proceeding under this section, it shall be paid or provided pending appeal to the 
40.28 	commissioner of children, youth, and families, district court, court of appeals, or supreme 
40.29 	court. The state or county agency has a claim for Supplemental Nutrition Assistance Program 
40.30 	(SNAP) benefits or cash payments made to or on behalf of a recipient or former recipient 
40.31 	while an appeal is pending if the recipient or former recipient is determined ineligible for 
40.32 	SNAP benefits or cash payments as a result of the appeal.
40.33 		Subd. 11.Interagency agreement with DHS. The commissioner of children, youth, 
40.34 	and families may enter into an agreement with the commissioner of human services so that 
40.35 	the commissioner of human services may conduct hearings and recommend and issue orders 
41.1 	on behalf of the commissioner of children, youth, and families in accordance with this 
41.2 	section.

41.3 	Sec. 39. [142A.21] HEARING PROCEDURES.
41.4 		Subdivision 1.Scope. (a) The requirements in this section apply to all fair hearings and 
41.5 	appeals under section 142A.20, subdivision 2, paragraph (a), clauses (1), (2), (3), and (6). 
41.6 	Except as provided in subdivisions 3 and 19, the requirements under this section apply to 
41.7 	fair hearings and appeals under section 142A.20, subdivision 2, paragraph (a), clause (2).
41.8 	(b) For purposes of this section, "person" means an individual who, on behalf of 
41.9 	themselves or their household, is appealing, disputing, or challenging an action, a decision, 
41.10 	or a failure to act by an agency in the children, youth, and families system. When a person 
41.11 	involved in a proceeding under this section is represented by an attorney or by an authorized 
41.12 	representative, the term "person" also means the person's attorney or authorized 
41.13 	representative. Any notice sent to the person involved in the hearing must also be sent to 
41.14 	the person's attorney or authorized representative.
41.15 	(c) For purposes of this section, "agency" means the county human services agency, the 
41.16 	Department of Children, Youth, and Families, and, where applicable, any entity involved 
41.17 	under a contract, subcontract, grant, or subgrant with the state agency or with a county 
41.18 	agency, that provides or operates programs or services in which appeals are governed by 
41.19 	section 142A.20.
41.20 		Subd. 2.Access to files. A person involved in a fair hearing appeal has the right of access 
41.21 	to the person's complete case files and to examine all private welfare data on the person that 
41.22 	has been generated, collected, stored, or disseminated by the agency. A person involved in 
41.23 	a fair hearing appeal has the right to a free copy of all documents in the case file involved 
41.24 	in a fair hearing appeal. For purposes of this section, "case file" means the information, 
41.25 	documents, and data, in whatever form, that have been generated, collected, stored, or 
41.26 	disseminated by the agency in connection with the person and the program or service 
41.27 	involved.
41.28 		Subd. 3.Agency appeal summary. (a) Except in fair hearings and appeals under section 
41.29 	142A.20, subdivision 2, paragraph (a), clauses (4) and (5), the agency involved in an appeal 
41.30 	must prepare a state agency appeal summary for each fair hearing appeal. The state agency 
41.31 	appeal summary shall be mailed or otherwise delivered to the person who is involved in the 
41.32 	appeal at least three working days before the date of the hearing. The state agency appeal 
41.33 	summary must also be mailed or otherwise delivered to the department's Appeals Office at 
41.34 	least three working days before the date of the fair hearing appeal.
42.1 	(b) In addition, the children, youth, and families judge shall confirm that the state agency 
42.2 	appeal summary is mailed or otherwise delivered to the person involved in the appeal as 
42.3 	required under paragraph (a). The person involved in the fair hearing should be provided, 
42.4 	through the state agency appeal summary or other reasonable methods, appropriate 
42.5 	information about the procedures for the fair hearing and an adequate opportunity to prepare. 
42.6 	These requirements apply equally to the state agency or an entity under contract when 
42.7 	involved in the appeal.
42.8 	(c) The contents of the state agency appeal summary must be adequate to inform the 
42.9 	person involved in the appeal of the evidence on which the agency relies and the legal basis 
42.10 	for the agency's action or determination.
42.11 		Subd. 4.Enforcing access to files. A person involved in a fair hearing appeal may 
42.12 	enforce the right of access to data and copies of the case file by making a request to the 
42.13 	children, youth, and families judge. The children, youth, and families judge will make an 
42.14 	appropriate order enforcing the person's rights under the Minnesota Government Data 
42.15 	Practices Act, including but not limited to, ordering access to files, data, and documents; 
42.16 	continuing a hearing to allow adequate time for access to data; or prohibiting use by the 
42.17 	agency of files, data, or documents that have been generated, collected, stored, or 
42.18 	disseminated without compliance with the Minnesota Government Data Practices Act and 
42.19 	that have not been provided to the person involved in the appeal.
42.20 		Subd. 5.Prehearing conferences. (a) The children, youth, and families judge prior to 
42.21 	a fair hearing appeal may hold a prehearing conference to further the interests of justice or 
42.22 	efficiency and must include the person involved in the appeal. A person involved in a fair 
42.23 	hearing appeal or the agency may request a prehearing conference. The prehearing conference 
42.24 	may be conducted by telephone, in person, or in writing. The prehearing conference may 
42.25 	address the following:
42.26 	(1) disputes regarding access to files, evidence, subpoenas, or testimony;
42.27 	(2) the time required for the hearing or any need for expedited procedures or decision;
42.28 	(3) identification or clarification of legal or other issues that may arise at the hearing;
42.29 	(4) identification of and possible agreement to factual issues; and
42.30 	(5) scheduling and any other matter that will aid in the proper and fair functioning of 
42.31 	the hearing.
42.32 	(b) The children, youth, and families judge shall make a record or otherwise 
42.33 	contemporaneously summarize the prehearing conference in writing, which shall be sent 
43.1 	to both the person involved in the hearing, the person's attorney or authorized representative, 
43.2 	and the agency. A children, youth, and families judge may make and issue rulings and orders 
43.3 	while the appeal is pending. During the pendency of the appeal, these rulings and orders 
43.4 	are not subject to a request for reconsideration or appeal. These rulings and orders are subject 
43.5 	to review under subdivision 24 and section 142A.20, subdivision 7.
43.6 		Subd. 6.Appeal request for emergency assistance or urgent matter. (a) When an 
43.7 	appeal involves an application for emergency assistance, the agency involved shall mail or 
43.8 	otherwise deliver the state agency appeal summary to the department's Appeals Office 
43.9 	within two working days of receiving the request for an appeal. A person may also request 
43.10 	that a fair hearing be held on an emergency basis when the issue requires an immediate 
43.11 	resolution. The children, youth, and families judge shall schedule the fair hearing on the 
43.12 	earliest available date according to the urgency of the issue involved. Issuance of the 
43.13 	recommended decision after an emergency hearing shall be expedited.
43.14 	(b) The commissioner shall issue a written decision within five working days of receiving 
43.15 	the recommended decision, shall immediately inform the parties of the outcome by telephone, 
43.16 	and shall mail the decision no later than two working days following the date of the decision.
43.17 		Subd. 7.Continuance, rescheduling, or adjourning a hearing. (a) A person involved 
43.18 	in a fair hearing, or the agency, may request a continuance, a rescheduling, or an adjournment 
43.19 	of a hearing for a reasonable period of time. The grounds for granting a request for a 
43.20 	continuance, a rescheduling, or adjournment of a hearing include, but are not limited to, the 
43.21 	following:
43.22 	(1) to reasonably accommodate the appearance of a witness;
43.23 	(2) to ensure that the person has adequate opportunity for preparation and for presentation 
43.24 	of evidence and argument;
43.25 	(3) to ensure that the person or the agency has adequate opportunity to review, evaluate, 
43.26 	and respond to new evidence, or where appropriate, to require that the person or agency 
43.27 	review, evaluate, and respond to new evidence;
43.28 	(4) to permit the person involved and the agency to negotiate toward resolution of some 
43.29 	or all of the issues where both agree that additional time is needed;
43.30 	(5) to permit the agency to reconsider a previous action or determination;
43.31 	(6) to permit or to require the performance of actions not previously taken; and
43.32 	(7) to provide additional time or to permit or require additional activity by the person 
43.33 	or agency as the interests of fairness may require.
44.1 	(b) Requests for continuances or for rescheduling may be made orally or in writing. The 
44.2 	person or agency requesting the continuance or rescheduling must first make reasonable 
44.3 	efforts to contact the other participants in the hearing or their representatives and seek to 
44.4 	obtain an agreement on the request. Requests for continuance or rescheduling should be 
44.5 	made no later than three working days before the scheduled date of the hearing, unless there 
44.6 	is a good cause as specified in subdivision 13. Granting a continuance or rescheduling may 
44.7 	be conditioned upon a waiver by the requester of applicable time limits but should not cause 
44.8 	unreasonable delay.
44.9 		Subd. 8.Subpoenas. (a) A person involved in a fair hearing or the agency may request 
44.10 	a subpoena for a witness, for evidence, or for both. A reasonable number of subpoenas shall 
44.11 	be issued to require the attendance and the testimony of witnesses, and the production of 
44.12 	evidence relating to any issue of fact in the appeal hearing. The request for a subpoena must 
44.13 	show a need for the subpoena and the general relevance to the issues involved. The subpoena 
44.14 	shall be issued in the name of the department and shall be served and enforced as provided 
44.15 	in section 357.22 and the Minnesota Rules of Civil Procedure.
44.16 	(b) An individual or entity served with a subpoena may petition the children, youth, and 
44.17 	families judge in writing to vacate or modify a subpoena. The children, youth, and families 
44.18 	judge shall resolve such a petition in a prehearing conference involving all parties and shall 
44.19 	make a written decision. A subpoena may be vacated or modified if the children, youth, 
44.20 	and families judge determines that the testimony or evidence sought does not relate with 
44.21 	reasonable directness to the issues of the fair hearing appeal; that the subpoena is 
44.22 	unreasonable, over broad, or oppressive; that the evidence sought is repetitious or cumulative; 
44.23 	or that the subpoena has not been served reasonably in advance of the time when the appeal 
44.24 	hearing will be held.
44.25 		Subd. 9.No ex parte contact. The children, youth, and families judge shall not have ex 
44.26 	parte contact on substantive issues with the agency or with any person or witness in a fair 
44.27 	hearing appeal. No employee of the department or agency shall review, interfere with, 
44.28 	change, or attempt to influence the recommended decision of the children, youth, and 
44.29 	families judge in any fair hearing appeal, except through the procedure allowed in subdivision 
44.30 	18. The limitations in this subdivision do not affect the commissioner's authority to review 
44.31 	or reconsider decisions or make final decisions.
44.32 		Subd. 10.Telephone or face-to-face hearing. A fair hearing appeal may be conducted 
44.33 	by telephone, by other electronic media, or by an in-person, face-to-face hearing. At the 
44.34 	request of the person involved in a fair hearing appeal or their representative, a face-to-face 
45.1 	hearing shall be conducted with all participants personally present before the children, youth, 
45.2 	and families judge.
45.3 		Subd. 11.Hearing facilities and equipment. The children, youth, and families judge 
45.4 	shall conduct the hearing in the county where the person involved resides, unless an alternate 
45.5 	location is mutually agreed upon before the hearing, or unless the person has agreed to a 
45.6 	hearing by telephone. Hearings under section 142A.20, subdivision 2, paragraph (a), clauses 
45.7 	(4) and (5), must be conducted in the county where the determination was made, unless an 
45.8 	alternate location is mutually agreed upon before the hearing. The hearing room shall be of 
45.9 	sufficient size and layout to adequately accommodate both the number of individuals 
45.10 	participating in the hearing and any identified special needs of any individual participating 
45.11 	in the hearing. The children, youth, and families judge shall ensure that all communication 
45.12 	and recording equipment that is necessary to conduct the hearing and to create an adequate 
45.13 	record is present and functioning properly. If any necessary communication or recording 
45.14 	equipment fails or ceases to operate effectively, the children, youth, and families judge shall 
45.15 	take any steps necessary, including stopping or adjourning the hearing, until the necessary 
45.16 	equipment is present and functioning properly. All reasonable efforts shall be undertaken 
45.17 	to prevent and avoid any delay in the hearing process caused by defective communication 
45.18 	or recording equipment.
45.19 		Subd. 12.Interpreter and translation services. The children, youth, and families judge 
45.20 	has a duty to inquire and to determine whether any participant in the hearing needs the 
45.21 	services of an interpreter or translator in order to participate in or to understand the hearing 
45.22 	process. Necessary interpreter or translation services must be provided at no charge to the 
45.23 	person involved in the hearing. If it appears that interpreter or translation services are needed 
45.24 	but are not available for the scheduled hearing, the children, youth, and families judge shall 
45.25 	continue or postpone the hearing until appropriate services can be provided.
45.26 		Subd. 13.Failure to appear; good cause. If a person involved in a fair hearing appeal 
45.27 	fails to appear at the hearing, the children, youth, and families judge may dismiss the appeal. 
45.28 	The children, youth, and families judge may reopen the appeal if within ten working days 
45.29 	after the date of the dismissal the person files information in writing with the children, youth, 
45.30 	and families judge to show good cause for not appearing. Good cause can be shown when 
45.31 	there is:
45.32 	(1) a death or serious illness in the person's family;
45.33 	(2) a personal injury or illness that reasonably prevents the person from attending the 
45.34 	hearing;
46.1 	(3) an emergency, crisis, or unforeseen event that reasonably prevents the person from 
46.2 	attending the hearing;
46.3 	(4) an obligation or responsibility of the person that a reasonable person, in the conduct 
46.4 	of one's affairs, could reasonably determine takes precedence over attending the hearing;
46.5 	(5) lack of or failure to receive timely notice of the hearing in the preferred language of 
46.6 	the person involved in the hearing; and
46.7 	(6) excusable neglect, excusable inadvertence, excusable mistake, or other good cause 
46.8 	as determined by the children, youth, and families judge.
46.9 		Subd. 14.Commencement of hearing. The children, youth, and families judge shall 
46.10 	begin each hearing by describing the process to be followed in the hearing, including the 
46.11 	swearing in of witnesses, how testimony and evidence are presented, the order of examining 
46.12 	and cross-examining witnesses, and the opportunity for an opening statement and a closing 
46.13 	statement. The children, youth, and families judge shall identify for the participants the 
46.14 	issues to be addressed at the hearing and shall explain to the participants the burden of proof 
46.15 	that applies to the person involved and the agency. The children, youth, and families judge 
46.16 	shall confirm, prior to proceeding with the hearing, that the state agency appeal summary, 
46.17 	if required under subdivision 3, has been properly completed and provided to the person 
46.18 	involved in the hearing, and that the person has been provided documents and an opportunity 
46.19 	to review the case file, as provided in this section.
46.20 		Subd. 15.Conduct of the hearing. The children, youth, and families judge shall act in 
46.21 	a fair and impartial manner at all times. At the beginning of the hearing the agency must 
46.22 	designate one person as their representative who shall be responsible for presenting the 
46.23 	agency's evidence and questioning any witnesses. The children, youth, and families judge 
46.24 	shall make sure that the person and the agency are provided sufficient time to present 
46.25 	testimony and evidence, to confront and cross-examine all adverse witnesses, and to make 
46.26 	any relevant statement at the hearing. The children, youth, and families judge shall make 
46.27 	reasonable efforts to explain the hearing process to persons who are not represented and 
46.28 	shall ensure that the hearing is conducted fairly and efficiently. Upon the reasonable request 
46.29 	of the person or the agency involved, the children, youth, and families judge may direct 
46.30 	witnesses to remain outside the hearing room, except during their individual testimony. The 
46.31 	children, youth, and families judge shall not terminate the hearing before affording the 
46.32 	person and the agency a complete opportunity to submit all admissible evidence and 
46.33 	reasonable opportunity for oral or written statement. If a hearing lasts longer than anticipated, 
46.34 	the hearing shall be rescheduled or continued from day-to-day until completion. Hearings 
47.1 	that have been continued shall be timely scheduled to minimize delay in the disposition of 
47.2 	the appeal.
47.3 		Subd. 16.Scope of issues addressed at the hearing. The hearing shall address the 
47.4 	correctness and legality of the agency's action and shall not be limited simply to a review 
47.5 	of the propriety of the agency's action. The person involved may raise and present evidence 
47.6 	on all legal claims or defenses arising under state or federal law as a basis for appealing or 
47.7 	disputing an agency action but not constitutional claims beyond the jurisdiction of the fair 
47.8 	hearing. The children, youth, and families judge may take official notice of adjudicative 
47.9 	facts.
47.10 		Subd. 17.Burden of persuasion. The burden of persuasion is governed by specific state 
47.11 	or federal law and regulations that apply to the subject of the hearing. If there is no specific 
47.12 	law, then the participant in the hearing who asserts the truth of a claim is under the burden 
47.13 	to persuade the children, youth, and families judge that the claim is true.
47.14 		Subd. 18.Inviting comment by department. The children, youth, and families judge 
47.15 	or the commissioner may determine that a written comment by the department about the 
47.16 	policy implications of a specific legal issue could help resolve a pending appeal. Such a 
47.17 	written policy comment from the department shall be obtained only by a written request 
47.18 	that is also sent to the person involved and to the agency or its representative. When such 
47.19 	a written comment is received, both the person involved in the hearing and the agency shall 
47.20 	have adequate opportunity to review, evaluate, and respond to the written comment, including 
47.21 	submission of additional testimony or evidence, and cross-examination concerning the 
47.22 	written comment.
47.23 		Subd. 19.Developing the record. The children, youth, and families judge shall accept 
47.24 	all evidence, except evidence privileged by law, that is commonly accepted by reasonable 
47.25 	people in the conduct of their affairs as having probative value on the issues to be addressed 
47.26 	at the hearing. Except in fair hearings and appeals under section 142A.20, subdivision 2, 
47.27 	paragraph (a), clauses (4) and (5), in cases involving medical issues such as a diagnosis, a 
47.28 	physician's report, or a review team's decision, the children, youth, and families judge shall 
47.29 	consider whether it is necessary to have a medical assessment other than that of the individual 
47.30 	making the original decision. When necessary, the children, youth, and families judge shall 
47.31 	require an additional assessment be obtained at agency expense and made part of the hearing 
47.32 	record. The children, youth, and families judge shall ensure for all cases that the record is 
47.33 	sufficiently complete to make a fair and accurate decision.
48.1 		Subd. 20.Unrepresented persons. In cases involving unrepresented persons, the children, 
48.2 	youth, and families judge shall take appropriate steps to identify and develop in the hearing 
48.3 	relevant facts necessary for making an informed and fair decision. These steps may include, 
48.4 	but are not limited to, asking questions of witnesses and referring the person to a legal 
48.5 	services office. An unrepresented person shall be provided an adequate opportunity to 
48.6 	respond to testimony or other evidence presented by the agency at the hearing. The children, 
48.7 	youth, and families judge shall ensure that an unrepresented person has a full and reasonable 
48.8 	opportunity at the hearing to establish a record for appeal.
48.9 		Subd. 21.Closing of the record. The agency must present its evidence prior to or at the 
48.10 	hearing. The agency shall not be permitted to submit evidence after the hearing except by 
48.11 	agreement at the hearing between the person involved, the agency, and the children, youth, 
48.12 	and families judge. If evidence is submitted after the hearing, based on such an agreement, 
48.13 	the person involved and the agency must be allowed sufficient opportunity to respond to 
48.14 	the evidence. When necessary, the record shall remain open to permit a person to submit 
48.15 	additional evidence on the issues presented at the hearing.
48.16 		Subd. 22.Decisions. (a) A timely, written decision must be issued in every appeal. Each 
48.17 	decision must contain a clear ruling on the issues presented in the appeal hearing and should 
48.18 	contain a ruling only on questions directly presented by the appeal and the arguments raised 
48.19 	in the appeal.
48.20 	(b) A written decision must be issued within 90 days of the date the person involved 
48.21 	requested the appeal unless a shorter time is required by law. An additional 30 days is 
48.22 	provided in those cases where the commissioner refuses to accept the recommended decision. 
48.23 	In appeals of maltreatment determinations or disqualifications filed pursuant to section 
48.24 	142A.20, subdivision 2, paragraph (a), clause (4) or (5), that also give rise to possible 
48.25 	licensing actions, the 90-day period for issuing final decisions does not begin until the later 
48.26 	of the date that the licensing authority provides notice to the appeals division that the 
48.27 	authority has made the final determination in the matter or the date the appellant files the 
48.28 	last appeal in the consolidated matters.
48.29 	(c) The decision must contain both findings of fact and conclusions of law, clearly 
48.30 	separated and identified. The findings of fact must be based on the entire record. Each 
48.31 	finding of fact made by the children, youth, and families judge shall be supported by a 
48.32 	preponderance of the evidence unless a different standard is required under the regulations 
48.33 	of a particular program. The "preponderance of the evidence" means, in light of the record 
48.34 	as a whole, the evidence leads the children, youth, and families judge to believe that the 
48.35 	finding of fact is more likely to be true than not true. The legal claims or arguments of a 
49.1 	participant do not constitute either a finding of fact or a conclusion of law, except to the 
49.2 	extent the children, youth, and families judge adopts an argument as a finding of fact or 
49.3 	conclusion of law.
49.4 	(d) The decision shall contain at least the following:
49.5 	(1) a listing of the date and place of the hearing and the participants at the hearing;
49.6 	(2) a clear and precise statement of the issues, including the dispute under consideration 
49.7 	and the specific points that must be resolved in order to decide the case;
49.8 	(3) a listing of the material, including exhibits, records, reports, placed into evidence at 
49.9 	the hearing, and upon which the hearing decision is based;
49.10 	(4) the findings of fact based upon the entire hearing record. The findings of fact must 
49.11 	be adequate to inform the participants and any interested person in the public of the basis 
49.12 	of the decision. If the evidence is in conflict on an issue that must be resolved, the findings 
49.13 	of fact must state the reasoning used in resolving the conflict;
49.14 	(5) conclusions of law that address the legal authority for the hearing and the ruling and 
49.15 	give appropriate attention to the claims of the participants to the hearing;
49.16 	(6) a clear and precise statement of the decision made resolving the dispute under 
49.17 	consideration in the hearing; and
49.18 	(7) written notice of the right to appeal to district court or to request reconsideration, 
49.19 	and of the actions required and the time limits for taking appropriate action to appeal to 
49.20 	district court or to request a reconsideration.
49.21 	(e) The children, youth, and families judge shall not independently investigate facts or 
49.22 	otherwise rely on information not presented at the hearing. The children, youth, and families 
49.23 	judge may not contact other agency personnel, except as provided in subdivision 18. The 
49.24 	children, youth, and families judge's recommended decision must be based exclusively on 
49.25 	the testimony and evidence presented at the hearing, and legal arguments presented, and 
49.26 	the children, youth, and families judge's research and knowledge of the law.
49.27 	(f) The commissioner will review the recommended decision and accept or refuse to 
49.28 	accept the decision according to section 142A.20, subdivision 5.
49.29 		Subd. 23.Refusal to accept recommended orders. (a) If the commissioner refuses to 
49.30 	accept the recommended order from the children, youth, and families judge, the person 
49.31 	involved, the person's attorney or authorized representative, and the agency shall be sent a 
50.1 	copy of the recommended order, a detailed explanation of the basis for refusing to accept 
50.2 	the recommended order, and the proposed modified order.
50.3 	(b) The person involved and the agency shall have at least ten business days to respond 
50.4 	to the proposed modification of the recommended order. The person involved and the agency 
50.5 	may submit a legal argument concerning the proposed modification, and may propose to 
50.6 	submit additional evidence that relates to the proposed modified order.
50.7 		Subd. 24.Reconsideration. (a) Reconsideration may be requested within 30 days of 
50.8 	the date of the commissioner's final order. If reconsideration is requested under section 
50.9 	142A.20, subdivision 5, the other participants in the appeal shall be informed of the request. 
50.10 	The person seeking reconsideration has the burden to demonstrate why the matter should 
50.11 	be reconsidered. The request for reconsideration may include legal argument and may 
50.12 	include proposed additional evidence supporting the request. The other participants shall 
50.13 	be sent a copy of all material submitted in support of the request for reconsideration and 
50.14 	must be given ten days to respond.
50.15 	(b) When the requesting party raises a question as to the appropriateness of the findings 
50.16 	of fact, the commissioner shall review the entire record.
50.17 	(c) When the requesting party questions the appropriateness of a conclusion of law, the 
50.18 	commissioner shall consider the recommended decision, the decision under reconsideration, 
50.19 	and the material submitted in connection with the reconsideration. The commissioner shall 
50.20 	review the remaining record as necessary to issue a reconsidered decision.
50.21 	(d) The commissioner shall issue a written decision on reconsideration in a timely fashion. 
50.22 	The decision must clearly inform the parties that this constitutes the final administrative 
50.23 	decision, advise the participants of the right to seek judicial review, and the deadline for 
50.24 	doing so.
50.25 		Subd. 25.Access to appeal decisions. Appeal decisions must be maintained in a manner 
50.26 	so that the public has ready access to previous decisions on particular topics, subject to 
50.27 	appropriate procedures for safeguarding names, personal identifying information, and other 
50.28 	private data on the individual persons involved in the appeal.

50.29 	Sec. 40. [142A.22] OVERPAYMENTS BECOME JUDGMENTS BY OPERATION 
50.30 	OF LAW.
50.31 		Subdivision 1.Qualifying overpayment. Any overpayment for assistance granted under 
50.32 	chapters 142E and 142G and the Supplemental Nutrition Assistance Program (SNAP), 
50.33 	except agency error claims, become a judgment by operation of law 90 days after the notice 
51.1 	of overpayment is personally served upon the recipient in a manner that is sufficient under 
51.2 	rule 4.03(a) of the Rules of Civil Procedure for district courts, or by certified mail, return 
51.3 	receipt requested. This judgment shall be entitled to full faith and credit in this and any 
51.4 	other state.
51.5 		Subd. 2.Overpayments included. This section is limited to overpayments for which 
51.6 	notification is issued within the time period specified under section 541.05.
51.7 		Subd. 3.Notification requirements. A judgment is only obtained after:
51.8 	(1) a notice of overpayment has been personally served on the recipient or former recipient 
51.9 	in a manner sufficient under rule 4.03(a) of the Rules of Civil Procedure for district courts, 
51.10 	or mailed to the recipient or former recipient certified mail return receipt requested; and
51.11 	(2) the time period under section 142A.20, subdivision 3, has elapsed without a request 
51.12 	for a hearing, or a hearing decision has been rendered under section 142A.20 or 142A.27 
51.13 	that concludes the existence of an overpayment that meets the requirements of this section.
51.14 		Subd. 4.Notice of overpayment. The notice of overpayment shall include the amount 
51.15 	and cause of the overpayment, appeal rights, and an explanation of the consequences of the 
51.16 	judgment that will be established if an appeal is not filed timely or if the administrative 
51.17 	hearing decision establishes that there is an overpayment that qualifies for judgment.
51.18 		Subd. 5.Judgments entered and docketed. A judgment shall be entered and docketed 
51.19 	under section 548.09 only after at least three months have elapsed since:
51.20 	(1) the notice of overpayment was served on the recipient pursuant to subdivision 3; and
51.21 	(2) the last time a monthly recoupment was applied to the overpayment.
51.22 		Subd. 6.Docketing of overpayments. On or after the date an unpaid overpayment 
51.23 	becomes a judgment by operation of law under subdivision 1, the agency or public authority 
51.24 	may file with the court administrator:
51.25 	(1) a statement identifying, or a copy of, the overpayment notice that provides for an 
51.26 	appeal process and requires payment of the overpayment;
51.27 	(2) proof of service of the notice of overpayment;
51.28 	(3) an affidavit of default, stating the full name, occupation, place of residence, and last 
51.29 	known post office address of the debtor; the name and post office address of the agency or 
51.30 	public authority; the date or dates the overpayment was incurred; the program that was 
51.31 	overpaid; and the total amount of the judgment; and
52.1 	(4) an affidavit of service of a notice of entry of judgment shall be made by first class 
52.2 	mail at the address where the debtor was served with the notice of overpayment. Service is 
52.3 	completed upon mailing in the manner designated.
52.4 		Subd. 7.Administrative renewal of overpayment judgments. Overpayment judgments 
52.5 	may be renewed by service of notice upon the debtor. Service must be by first class mail at 
52.6 	the last known address of the debtor, with service deemed complete upon mailing in that 
52.7 	manner designated, or in the manner provided for the service of civil process. Upon filing 
52.8 	of the notice and proof of service, the court administrator shall administratively renew the 
52.9 	judgment for the overpayment without any additional filing fee in the same court file as the 
52.10 	original overpayment judgment. The judgment must be renewed in an amount equal to the 
52.11 	unpaid principal plus the accrued unpaid interest. Overpayment judgments may be renewed 
52.12 	multiple times until satisfied.
52.13 		Subd. 8.Does not impede other methods. Nothing in this section shall be construed 
52.14 	to impede or restrict alternative recovery methods for these overpayments or overpayments 
52.15 	that do not meet the requirements of this section.

52.16 	Sec. 41. [142A.25] WRONGFULLY OBTAINING ASSISTANCE; 
52.17 	DISQUALIFICATION.
52.18 	Section 256.98 applies to:
52.19 	(1) all applicants for and recipients of benefits administered by the commissioner; and
52.20 	(2) child care providers receiving child care assistance under chapter 142E.

52.21 	Sec. 42. [142A.26] FRAUD PREVENTION PROGRAM.
52.22 	(a) The commissioner of children, youth, and families shall work with the commissioner 
52.23 	of human services to oversee and administer the fraud prevention program in sections 
52.24 	256.981 to 256.9861.
52.25 	(b) All recipients of benefits administered by the commissioner of children, youth, and 
52.26 	families are subject to the requirements of sections 256.981 to 256.9861 and 256.9866.

52.27 	Sec. 43. [142A.27] ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS.
52.28 		Subdivision 1.Hearing authority. A local agency must initiate an administrative fraud 
52.29 	disqualification hearing for individuals accused of wrongfully obtaining assistance or 
52.30 	intentional program violations, in lieu of a criminal action when it has not been pursued, in 
52.31 	the Minnesota family investment program and any affiliated program to include the 
53.1 	diversionary work program and the work participation cash benefit program, child care 
53.2 	assistance programs,  and the Supplemental Nutrition Assistance Program (SNAP). The 
53.3 	Department of Children, Youth, and Families, in lieu of a local agency, may initiate an 
53.4 	administrative fraud disqualification hearing when the state agency is directly responsible 
53.5 	for administration or investigation of the program for which benefits were wrongfully 
53.6 	obtained. The hearing is subject to the requirements of sections 142A.20 and 142A.21 and 
53.7 	the requirements in Code of Federal Regulations, title 7, section 273.16.
53.8 		Subd. 2.Combined hearing. The children, youth, and families judge may combine a 
53.9 	fair hearing under section 142A.20 and administrative fraud disqualification hearing under 
53.10 	this section into a single hearing if the factual issues arise out of the same, or related, 
53.11 	circumstances and the individual receives prior notice that the hearings will be combined. 
53.12 	If the administrative fraud disqualification hearing and fair hearing are combined, the time 
53.13 	frames for administrative fraud disqualification hearings specified in Code of Federal 
53.14 	Regulations, title 7, section 273.16, apply. If the individual accused of wrongfully obtaining 
53.15 	assistance is charged under section 142A.25 or 256.98 for the same act or acts that are the 
53.16 	subject of the hearing, the individual may request that the hearing be delayed until the 
53.17 	criminal charge is decided by the court or withdrawn.
53.18 	(b) A human services judge may combine a fair hearing and administrative fraud 
53.19 	disqualification hearing pursuant to section 142A.27, subdivision 2, or 256.046, subdivision 
53.20 	2, if either is under the jurisdiction of the commissioner of human services or the 
53.21 	commissioner of children, youth, and families.

53.22 	Sec. 44. [142A.28] RECOVERY OF MONEY; APPORTIONMENT.
53.23 		Subdivision 1.Retention rates. (a) When an assistance recovery amount is collected 
53.24 	and posted by a county agency under the provisions governing public assistance programs, 
53.25 	the county may keep one-half of the recovery made by the county agency using any method 
53.26 	other than recoupment.
53.27 	(b) This section does not apply to recoveries by the attorney general's office or child 
53.28 	support collections. In the Supplemental Nutrition Assistance Program (SNAP), the 
53.29 	nonfederal share of recoveries in the federal tax offset program only will be divided equally 
53.30 	between the state agency and the involved county agency.
53.31 		Subd. 2.Retention rates for AFDC and MFIP. (a) When an assistance recovery amount 
53.32 	is collected and posted by a county agency under the provisions governing the aid to families 
53.33 	with dependent children program formerly codified in 1996 in sections 256.72 to 256.87 
54.1 	or MFIP under chapter 142G, the commissioner shall reimburse the county agency from 
54.2 	the proceeds of the recovery using the applicable rate specified in paragraph (b) or (c).
54.3 	(b) For recoveries of overpayments made on or before September 30, 1996, from the 
54.4 	aid to families with dependent children program including the emergency assistance program, 
54.5 	the commissioner shall reimburse the county agency at a rate of one-quarter of the recovery 
54.6 	made by any method other than recoupment.
54.7 	(c) For recoveries of overpayments made after September 30, 1996, from the aid to 
54.8 	families with dependent children including the emergency assistance program and programs 
54.9 	funded in whole or in part by the temporary assistance to needy families program under 
54.10 	section 142G.03, subdivision 2, and recoveries of nonfederally funded food assistance under 
54.11 	section 142G.11, the commissioner shall reimburse the county agency at a rate of one-quarter 
54.12 	of the recovery made by any method other than recoupment.

54.13 	Sec. 45. Minnesota Statutes 2022, section 245.814, subdivision 5, is amended to read:
54.14 		Subd. 5.Foster care parent liability insurance. The commissioner of children, youth, 
54.15 	and families may use federal reimbursement money earned on an expenditure for foster 
54.16 	care parent liability insurance premiums to offset the costs of the premiums. The 
54.17 	commissioner of children, youth, and families and human services will work with the 
54.18 	insurance provider to transition coverage and responsibility as appropriate while avoiding 
54.19 	a lapse in coverage.

54.20 	Sec. 46. Minnesota Statutes 2022, section 256.01, subdivision 1, is amended to read:
54.21 		Subdivision 1.Powers transferred. All the powers and duties now vested in or imposed 
54.22 	upon the State Board of Control by the laws of this state or by any law of the United States 
54.23 	are hereby transferred to, vested in, and imposed upon the commissioner of human services, 
54.24 	except the powers and duties otherwise specifically transferred by Laws 1939, chapter 431, 
54.25 	to other agencies. The commissioner of human services is hereby constituted the "state 
54.26 	agency" as defined by the Social Security Act of the United States and the laws of this state, 
54.27 	except for the purposes of Title IV of the Social Security Act.

54.28 	Sec. 47. Minnesota Statutes 2022, section 256.01, subdivision 2, is amended to read:
54.29 		Subd. 2.Specific powers. Subject to the provisions of section 241.021, subdivision 2, 
54.30 	the commissioner of human services shall carry out the specific duties in paragraphs (a) 
54.31 	through (bb):
55.1 	(a) Administer and supervise all the forms of public assistance provided for by state law 
55.2 	and other welfare activities or services as that are vested in the commissioner. Administration 
55.3 	and supervision of human services activities or services includes, but is not limited to, 
55.4 	assuring timely and accurate distribution of benefits, completeness of service, and quality 
55.5 	program management. In addition to administering and supervising human services activities 
55.6 	vested by law in the department, the commissioner shall have the authority to:
55.7 	(1) require county agency participation in training and technical assistance programs to 
55.8 	promote compliance with statutes, rules, federal laws, regulations, and policies governing 
55.9 	human services;
55.10 	(2) monitor, on an ongoing basis, the performance of county agencies in the operation 
55.11 	and administration of human services, enforce compliance with statutes, rules, federal laws, 
55.12 	regulations, and policies governing welfare services and promote excellence of administration 
55.13 	and program operation;
55.14 	(3) develop a quality control program or other monitoring program to review county 
55.15 	performance and accuracy of benefit determinations;
55.16 	(4) require county agencies to make an adjustment to the public assistance benefits issued 
55.17 	to any individual consistent with federal law and regulation and state law and rule and to 
55.18 	issue or recover benefits as appropriate;
55.19 	(5) delay or deny payment of all or part of the state and federal share of benefits and 
55.20 	administrative reimbursement according to the procedures set forth in section 256.017;
55.21 	(6) make contracts with and grants to public and private agencies and organizations, 
55.22 	both profit and nonprofit, and individuals, using appropriated funds; and
55.23 	(7) enter into contractual agreements with federally recognized Indian Tribes with a 
55.24 	reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved 
55.25 	family assistance program or any other program under the supervision of the commissioner. 
55.26 	The commissioner shall consult with the affected county or counties in the contractual 
55.27 	agreement negotiations, if the county or counties wish to be included, in order to avoid the 
55.28 	duplication of county and Tribal assistance program services. The commissioner may 
55.29 	establish necessary accounts for the purposes of receiving and disbursing funds as necessary 
55.30 	for the operation of the programs.
55.31 	The commissioner shall work in conjunction with the commissioner of children, youth, and 
55.32 	families to carry out the duties of this paragraph when necessary and feasible.
56.1 	(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, 
56.2 	regulation, and policy necessary to county agency administration of the programs.
56.3 	(c) Administer and supervise all child welfare activities; promote the enforcement of 
56.4 	laws protecting children with a disability and children who are dependent, neglected, or 
56.5 	delinquent, and children born to mothers who were not married to the children's fathers at 
56.6 	the times of the conception nor at the births of the children; license and supervise child-caring 
56.7 	and child-placing agencies and institutions; supervise the care of children in boarding and 
56.8 	foster homes or in private institutions; and generally perform all functions relating to the 
56.9 	field of child welfare now vested in the State Board of Control.
56.10 	(d) (c) Administer and supervise all noninstitutional service to persons with disabilities, 
56.11 	including persons who have vision impairments, and persons who are deaf, deafblind, and 
56.12 	hard-of-hearing or with other disabilities. The commissioner may provide and contract for 
56.13 	the care and treatment of qualified indigent children in facilities other than those located 
56.14 	and available at state hospitals when it is not feasible to provide the service in state hospitals.
56.15 	(e) (d) Assist and actively cooperate with other departments, agencies and institutions, 
56.16 	local, state, and federal, by performing services in conformity with the purposes of Laws 
56.17 	1939, chapter 431.
56.18 	(f) (e) Act as the agent of and cooperate with the federal government in matters of mutual 
56.19 	concern relative to and in conformity with the provisions of Laws 1939, chapter 431, 
56.20 	including the administration of any federal funds granted to the state to aid in the performance 
56.21 	of any functions of the commissioner as specified in Laws 1939, chapter 431, and including 
56.22 	the promulgation of rules making uniformly available medical care benefits to all recipients 
56.23 	of public assistance, at such times as the federal government increases its participation in 
56.24 	assistance expenditures for medical care to recipients of public assistance, the cost thereof 
56.25 	to be borne in the same proportion as are grants of aid to said recipients.
56.26 	(g) (f) Establish and maintain any administrative units reasonably necessary for the 
56.27 	performance of administrative functions common to all divisions of the department.
56.28 	(h) (g) Act as designated guardian of both the estate and the person of all the wards of 
56.29 	the state of Minnesota, whether by operation of law or by an order of court, without any 
56.30 	further act or proceeding whatever, except as to persons committed as developmentally 
56.31 	disabled. For children under the guardianship of the commissioner or a Tribe in Minnesota 
56.32 	recognized by the Secretary of the Interior whose interests would be best served by adoptive 
56.33 	placement, the commissioner may contract with a licensed child-placing agency or a 
56.34 	Minnesota Tribal social services agency to provide adoption services. A contract with a 
57.1 	licensed child-placing agency must be designed to supplement existing county efforts and 
57.2 	may not replace existing county programs or Tribal social services, unless the replacement 
57.3 	is agreed to by the county board and the appropriate exclusive bargaining representative, 
57.4 	Tribal governing body, or the commissioner has evidence that child placements of the county 
57.5 	continue to be substantially below that of other counties. Funds encumbered and obligated 
57.6 	under an agreement for a specific child shall remain available until the terms of the agreement 
57.7 	are fulfilled or the agreement is terminated.
57.8 	(i) (h) Act as coordinating referral and informational center on requests for service for 
57.9 	newly arrived immigrants coming to Minnesota.
57.10 	(j) (i) The specific enumeration of powers and duties as hereinabove set forth shall in 
57.11 	no way be construed to be a limitation upon the general transfer of powers herein contained.
57.12 	(k) (j) Establish county, regional, or statewide schedules of maximum fees and charges 
57.13 	which may be paid by county agencies for medical, dental, surgical, hospital, nursing and 
57.14 	nursing home care and medicine and medical supplies under all programs of medical care 
57.15 	provided by the state and for congregate living care under the income maintenance programs.
57.16 	(l) (k) Have the authority to conduct and administer experimental projects to test methods 
57.17 	and procedures of administering assistance and services to recipients or potential recipients 
57.18 	of public welfare. To carry out such experimental projects, it is further provided that the 
57.19 	commissioner of human services is authorized to waive the enforcement of existing specific 
57.20 	statutory program requirements, rules, and standards in one or more counties. The order 
57.21 	establishing the waiver shall provide alternative methods and procedures of administration, 
57.22 	shall not be in conflict with the basic purposes, coverage, or benefits provided by law, and 
57.23 	in no event shall the duration of a project exceed four years. It is further provided that no 
57.24 	order establishing an experimental project as authorized by the provisions of this section 
57.25 	shall become effective until the following conditions have been met:
57.26 	(1) the secretary of health and human services of the United States Secretary of Health 
57.27 	and Human Services has agreed, for the same project, to waive state plan requirements 
57.28 	relative to statewide uniformity; and
57.29 	(2) a comprehensive plan, including estimated project costs, shall be approved by the 
57.30 	Legislative Advisory Commission and filed with the commissioner of administration.
57.31 	(m) (l) According to federal requirements and in coordination with the commissioner 
57.32 	of children, youth, and families, establish procedures to be followed by local welfare boards 
57.33 	in creating citizen advisory committees, including procedures for selection of committee 
57.34 	members.
58.1 	(n) (m) Allocate federal fiscal disallowances or sanctions which are based on quality 
58.2 	control error rates for the aid to families with dependent children program formerly codified 
58.3 	in sections 256.72 to 256.87, medical assistance, or the Supplemental Nutrition Assistance 
58.4 	Program (SNAP) in the following manner:
58.5 	(1) one-half of the total amount of the disallowance shall be borne by the county boards 
58.6 	responsible for administering the programs. For the medical assistance and the AFDC 
58.7 	program formerly codified in sections 256.72 to 256.87, Disallowances shall be shared by 
58.8 	each county board in the same proportion as that county's expenditures for the sanctioned 
58.9 	program are to the total of all counties' expenditures for the AFDC program formerly codified 
58.10 	in sections 256.72 to 256.87, and medical assistance programs. For SNAP, sanctions shall 
58.11 	be shared by each county board, with 50 percent of the sanction being distributed to each 
58.12 	county in the same proportion as that county's administrative costs for SNAP benefits are 
58.13 	to the total of all SNAP administrative costs for all counties, and 50 percent of the sanctions 
58.14 	being distributed to each county in the same proportion as that county's value of SNAP 
58.15 	benefits issued are to the total of all benefits issued for all counties. Each county shall pay 
58.16 	its share of the disallowance to the state of Minnesota. When a county fails to pay the amount 
58.17 	due hereunder, the commissioner may deduct the amount from reimbursement otherwise 
58.18 	due the county, or the attorney general, upon the request of the commissioner, may institute 
58.19 	civil action to recover the amount due; and
58.20 	(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing 
58.21 	noncompliance by one or more counties with a specific program instruction, and that knowing 
58.22 	noncompliance is a matter of official county board record, the commissioner may require 
58.23 	payment or recover from the county or counties, in the manner prescribed in clause (1), an 
58.24 	amount equal to the portion of the total disallowance which resulted from the noncompliance, 
58.25 	and may distribute the balance of the disallowance according to clause (1).
58.26 	(o) (n) Develop and implement special projects that maximize reimbursements and result 
58.27 	in the recovery of money to the state. For the purpose of recovering state money, the 
58.28 	commissioner may enter into contracts with third parties. Any recoveries that result from 
58.29 	projects or contracts entered into under this paragraph shall be deposited in the state treasury 
58.30 	and credited to a special account until the balance in the account reaches $1,000,000. When 
58.31 	the balance in the account exceeds $1,000,000, the excess shall be transferred and credited 
58.32 	to the general fund. All money in the account is appropriated to the commissioner for the 
58.33 	purposes of this paragraph.
58.34 	(p) (o) Have the authority to establish and enforce the following county reporting 
58.35 	requirements:
59.1 	(1) the commissioner shall establish fiscal and statistical reporting requirements necessary 
59.2 	to account for the expenditure of funds allocated to counties for human services programs. 
59.3 	When establishing financial and statistical reporting requirements, the commissioner shall 
59.4 	evaluate all reports, in consultation with the counties, to determine if the reports can be 
59.5 	simplified or the number of reports can be reduced;
59.6 	(2) the county board shall submit monthly or quarterly reports to the department as 
59.7 	required by the commissioner. Monthly reports are due no later than 15 working days after 
59.8 	the end of the month. Quarterly reports are due no later than 30 calendar days after the end 
59.9 	of the quarter, unless the commissioner determines that the deadline must be shortened to 
59.10 	20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss 
59.11 	of federal funding. Only reports that are complete, legible, and in the required format shall 
59.12 	be accepted by the commissioner;
59.13 	(3) if the required reports are not received by the deadlines established in clause (2), the 
59.14 	commissioner may delay payments and withhold funds from the county board until the next 
59.15 	reporting period. When the report is needed to account for the use of federal funds and the 
59.16 	late report results in a reduction in federal funding, the commissioner shall withhold from 
59.17 	the county boards with late reports an amount equal to the reduction in federal funding until 
59.18 	full federal funding is received;
59.19 	(4) a county board that submits reports that are late, illegible, incomplete, or not in the 
59.20 	required format for two out of three consecutive reporting periods is considered 
59.21 	noncompliant. When a county board is found to be noncompliant, the commissioner shall 
59.22 	notify the county board of the reason the county board is considered noncompliant and 
59.23 	request that the county board develop a corrective action plan stating how the county board 
59.24 	plans to correct the problem. The corrective action plan must be submitted to the 
59.25 	commissioner within 45 days after the date the county board received notice of 
59.26 	noncompliance;
59.27 	(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after 
59.28 	the date the report was originally due. If the commissioner does not receive a report by the 
59.29 	final deadline, the county board forfeits the funding associated with the report for that 
59.30 	reporting period and the county board must repay any funds associated with the report 
59.31 	received for that reporting period;
59.32 	(6) the commissioner may not delay payments, withhold funds, or require repayment 
59.33 	under clause (3) or (5) if the county demonstrates that the commissioner failed to provide 
59.34 	appropriate forms, guidelines, and technical assistance to enable the county to comply with 
60.1 	the requirements. If the county board disagrees with an action taken by the commissioner 
60.2 	under clause (3) or (5), the county board may appeal the action according to sections 14.57
60.3 	to 14.69; and
60.4 	(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment 
60.5 	of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover 
60.6 	costs incurred due to actions taken by the commissioner under clause (3) or (5).
60.7 	(q) (p) Allocate federal fiscal disallowances or sanctions for audit exceptions when 
60.8 	federal fiscal disallowances or sanctions are based on a statewide random sample in direct 
60.9 	proportion to each county's claim for that period.
60.10 	(r) (q) Be responsible for ensuring the detection, prevention, investigation, and resolution 
60.11 	of fraudulent activities or behavior by applicants, recipients, and other participants in the 
60.12 	human services programs administered by the department.
60.13 	(s) (r) Require county agencies to identify overpayments, establish claims, and utilize 
60.14 	all available and cost-beneficial methodologies to collect and recover these overpayments 
60.15 	in the human services programs administered by the department.
60.16 	(t) (s) Have the authority to administer the federal drug rebate program for drugs 
60.17 	purchased under the medical assistance program as allowed by section 1927 of title XIX of 
60.18 	the Social Security Act and according to the terms and conditions of section 1927. Rebates 
60.19 	shall be collected for all drugs that have been dispensed or administered in an outpatient 
60.20 	setting and that are from manufacturers who have signed a rebate agreement with the United 
60.21 	States Department of Health and Human Services.
60.22 	(u) (t) Have the authority to administer a supplemental drug rebate program for drugs 
60.23 	purchased under the medical assistance program. The commissioner may enter into 
60.24 	supplemental rebate contracts with pharmaceutical manufacturers and may require prior 
60.25 	authorization for drugs that are from manufacturers that have not signed a supplemental 
60.26 	rebate contract. Prior authorization of drugs shall be subject to the provisions of section 
60.27 	256B.0625, subdivision 13.
60.28 	(v) (u) Operate the department's communication systems account established in Laws 
60.29 	1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared 
60.30 	communication costs necessary for the operation of the programs the commissioner 
60.31 	supervises. A communications account may also be established for each regional treatment 
60.32 	center which operates communications systems. Each account must be used to manage 
60.33 	shared communication costs necessary for the operations of the programs the commissioner 
60.34 	supervises. The commissioner may distribute the costs of operating and maintaining 
61.1 	communication systems to participants in a manner that reflects actual usage. Costs may 
61.2 	include acquisition, licensing, insurance, maintenance, repair, staff time and other costs as 
61.3 	determined by the commissioner. Nonprofit organizations and state, county, and local 
61.4 	government agencies involved in the operation of programs the commissioner supervises 
61.5 	may participate in the use of the department's communications technology and share in the 
61.6 	cost of operation. The commissioner may accept on behalf of the state any gift, bequest, 
61.7 	devise or personal property of any kind, or money tendered to the state for any lawful 
61.8 	purpose pertaining to the communication activities of the department. Any money received 
61.9 	for this purpose must be deposited in the department's communication systems accounts. 
61.10 	Money collected by the commissioner for the use of communication systems must be 
61.11 	deposited in the state communication systems account and is appropriated to the 
61.12 	commissioner for purposes of this section.
61.13 	(w) (v) Receive any federal matching money that is made available through the medical 
61.14 	assistance program for the consumer satisfaction survey. Any federal money received for 
61.15 	the survey is appropriated to the commissioner for this purpose. The commissioner may 
61.16 	expend the federal money received for the consumer satisfaction survey in either year of 
61.17 	the biennium.
61.18 	(x) (w) Designate community information and referral call centers and incorporate cost 
61.19 	reimbursement claims from the designated community information and referral call centers 
61.20 	into the federal cost reimbursement claiming processes of the department according to 
61.21 	federal law, rule, and regulations. Existing information and referral centers provided by 
61.22 	Greater Twin Cities United Way or existing call centers for which Greater Twin Cities 
61.23 	United Way has legal authority to represent, shall be included in these designations upon 
61.24 	review by the commissioner and assurance that these services are accredited and in 
61.25 	compliance with national standards. Any reimbursement is appropriated to the commissioner 
61.26 	and all designated information and referral centers shall receive payments according to 
61.27 	normal department schedules established by the commissioner upon final approval of 
61.28 	allocation methodologies from the United States Department of Health and Human Services 
61.29 	Division of Cost Allocation or other appropriate authorities.
61.30 	(y) (x) Develop recommended standards for adult foster care homes that address the 
61.31 	components of specialized therapeutic services to be provided by adult foster care homes 
61.32 	with those services.
61.33 	(z) (y) Authorize the method of payment to or from the department as part of the human 
61.34 	services programs administered by the department. This authorization includes the receipt 
62.1 	or disbursement of funds held by the department in a fiduciary capacity as part of the human 
62.2 	services programs administered by the department.
62.3 	(aa) (z) Designate the agencies that operate the Senior LinkAge Line under section 
62.4 	256.975, subdivision 7, and the Disability Hub under subdivision 24 as the state of Minnesota 
62.5 	Aging and Disability Resource Center under United States Code, title 42, section 3001, the 
62.6 	Older Americans Act Amendments of 2006, and incorporate cost reimbursement claims 
62.7 	from the designated centers into the federal cost reimbursement claiming processes of the 
62.8 	department according to federal law, rule, and regulations. Any reimbursement must be 
62.9 	appropriated to the commissioner and treated consistent with section 256.011. All Aging 
62.10 	and Disability Resource Center designated agencies shall receive payments of grant funding 
62.11 	that supports the activity and generates the federal financial participation according to Board 
62.12 	on Aging administrative granting mechanisms.

62.13 	Sec. 48. Minnesota Statutes 2022, section 256.01, subdivision 4, is amended to read:
62.14 		Subd. 4.Duties as state agency. (a) The state agency shall:
62.15 	(1) supervise the administration of assistance to dependent children under Laws 1937, 
62.16 	chapter 438, by the county agencies in an integrated program with other service for dependent 
62.17 	children maintained under the direction of the state agency;
62.18 	(2) establish adequate standards for personnel employed by the counties and the state 
62.19 	agency in the administration of Laws 1937, chapter 438, and make the necessary rules to 
62.20 	maintain such standards;
62.21 	(3) (1) in coordination with the commissioner of children, youth, and families, prescribe 
62.22 	the form of and print and supply to the county agencies blanks for applications, reports, 
62.23 	affidavits, and such other forms as it may deem necessary and advisable;
62.24 	(4) cooperate with the federal government and its public welfare agencies in any 
62.25 	reasonable manner as may be necessary to qualify for federal aid for temporary assistance 
62.26 	for needy families and in conformity with title I of Public Law 104-193, the Personal 
62.27 	Responsibility and Work Opportunity Reconciliation Act of 1996 and successor amendments, 
62.28 	including the making of such reports and such forms and containing such information as 
62.29 	the Federal Social Security Board may from time to time require, and comply with such 
62.30 	provisions as such board may from time to time find necessary to assure the correctness 
62.31 	and verification of such reports;
62.32 	(5) (2) on or before October 1 in each even-numbered year make a biennial report to the 
62.33 	governor concerning the activities of the agency;
63.1 	(6) (3) enter into agreements with other departments of the state as necessary to meet 
63.2 	all requirements of the federal government; and
63.3 	(7) cooperate with the commissioner of education to enforce the requirements for program 
63.4 	integrity and fraud prevention for investigation for child care assistance under chapter 119B; 
63.5 	and
63.6 	(8) (4) require that the county or Tribal case manager for any person who is notified that 
63.7 	their services will be terminated under section 245D.10, subdivision 3a, from residential 
63.8 	supports and services as defined in section 245D.03, subdivision 1, paragraph (c), clause 
63.9 	(3), develop an initial action plan within five business days of being notified of the 
63.10 	termination; request technical assistance from the state agency; and proceed to promptly 
63.11 	work to resolve the issues that led to the termination or arrange for alternative services as 
63.12 	expeditiously as possible within the 60-day notice period.
63.13 	(b) The state agency may:
63.14 	(1) subpoena witnesses and administer oaths, make rules, and take such action as may 
63.15 	be necessary or desirable for carrying out the provisions of Laws 1937, chapter 438. All 
63.16 	rules made by the state agency shall be binding on the counties and shall be complied with 
63.17 	by the respective county agencies; and
63.18 	(2) cooperate with other state agencies in establishing reciprocal agreements in instances 
63.19 	where a child receiving Minnesota family investment program assistance moves or 
63.20 	contemplates moving into or out of the state, in order that the child may continue to receive 
63.21 	supervised aid from the state moved from until the child has resided for one year in the state 
63.22 	moved to; and
63.23 	(3) (2) administer oaths and affirmations, take depositions, certify to official acts, and 
63.24 	issue subpoenas to compel the attendance of individuals and the production of documents 
63.25 	and other personal property necessary in connection with the administration of programs 
63.26 	administered by, or for the purpose of any investigation, hearing, proceeding, or inquiry 
63.27 	related to the duties and responsibilities of, the Department of Human Services.
63.28 	(c) The fees for service of a subpoena in paragraph (b), clause (3) (2), must be paid in 
63.29 	the same manner as prescribed by law for a service of process issued by a district court. 
63.30 	Witnesses must receive the same fees and mileage as in civil actions.
63.31 	(d) The subpoena in paragraph (b), clause (3) (2), shall be enforceable through the district 
63.32 	court in the district where the subpoena is issued.
64.1 	(e) A subpoena issued under this subdivision must state that the person to whom the 
64.2 	subpoena is directed may not disclose the fact that the subpoena was issued or the fact that 
64.3 	the requested records have been given to law enforcement personnel or agents of the 
64.4 	commissioner except:
64.5 	(1) insofar as the disclosure is necessary and agreed upon by the commissioner, to find 
64.6 	and disclose the records; or
64.7 	(2) pursuant to court order.

64.8 	Sec. 49. Minnesota Statutes 2022, section 256.01, subdivision 5, is amended to read:
64.9 		Subd. 5.Gifts, contributions, pensions and benefits; acceptance. The commissioner 
64.10 	shall have the power and authority to accept in behalf of the state contributions and gifts 
64.11 	for the use and benefit of children under the guardianship or custody of the commissioner;
64.12 	The commissioner may also receive and accept on behalf of such children, and on behalf 
64.13 	of patients and residents at the several state hospitals for persons with mental illness or 
64.14 	developmental disabilities during the period of their hospitalization and while on provisional 
64.15 	discharge therefrom, money due and payable to them as old age and survivors insurance 
64.16 	benefits, veterans benefits, pensions or other such monetary benefits. Such gifts, 
64.17 	contributions, pensions and benefits shall be deposited in and disbursed from the social 
64.18 	welfare fund provided for in sections 256.88 to 256.92.

64.19 	Sec. 50. Minnesota Statutes 2022, section 256.01, subdivision 12, is amended to read:
64.20 		Subd. 12.Child mortality review panel. (a) The commissioner shall establish a child 
64.21 	mortality review panel to review deaths of children in Minnesota, including deaths attributed 
64.22 	to maltreatment or in which maltreatment may be a contributing cause and to review near 
64.23 	fatalities as defined in section 260E.35. The commissioners of health, education, human 
64.24 	services, and public safety and the attorney general shall each designate a representative to 
64.25 	the child mortality review panel. Other panel members shall be appointed by the 
64.26 	commissioner, including a board-certified pathologist and a physician who is a coroner or 
64.27 	a medical examiner. The purpose of the panel shall be to make recommendations to the 
64.28 	state and to county agencies for improving the child protection system, including 
64.29 	modifications in statute, rule, policy, and procedure.
64.30 	(b) The commissioner may require a county agency to establish a local child mortality 
64.31 	review panel. The commissioner may establish procedures for conducting local reviews 
64.32 	and may require that all professionals with knowledge of a child mortality case participate 
64.33 	in the local review. In this section, "professional" means a person licensed to perform or a 
65.1 	person performing a specific service in the child protective service system. "Professional" 
65.2 	includes law enforcement personnel, social service agency attorneys, educators, and social 
65.3 	service, health care, and mental health care providers.
65.4 	(c) If the commissioner of human services has reason to believe that a child's death was 
65.5 	caused by maltreatment or that maltreatment was a contributing cause, the commissioner 
65.6 	has access to not public data under chapter 13 maintained by state agencies, statewide 
65.7 	systems, or political subdivisions that are related to the child's death or circumstances 
65.8 	surrounding the care of the child. The commissioner shall also have access to records of 
65.9 	private hospitals as necessary to carry out the duties prescribed by this section. Access to 
65.10 	data under this paragraph is limited to police investigative data; autopsy records and coroner 
65.11 	or medical examiner investigative data; hospital, public health, or other medical records of 
65.12 	the child; hospital and other medical records of the child's parent that relate to prenatal care; 
65.13 	and records created by social service agencies that provided services to the child or family 
65.14 	within three years preceding the child's death. A state agency, statewide system, or political 
65.15 	subdivision shall provide the data upon request of the commissioner. Not public data may 
65.16 	be shared with members of the state or local child mortality review panel in connection with 
65.17 	an individual case.
65.18 	(d) Notwithstanding the data's classification in the possession of any other agency, data 
65.19 	acquired by a local or state child mortality review panel in the exercise of its duties is 
65.20 	protected nonpublic or confidential data as defined in section 13.02, but may be disclosed 
65.21 	as necessary to carry out the purposes of the review panel. The data is not subject to subpoena 
65.22 	or discovery. The commissioner may disclose conclusions of the review panel, but shall 
65.23 	not disclose data that was classified as confidential or private data on decedents, under 
65.24 	section 13.10, or private, confidential, or protected nonpublic data in the disseminating 
65.25 	agency, except that the commissioner may disclose local social service agency data as 
65.26 	provided in section 260E.35, on individual cases involving a fatality or near fatality of a 
65.27 	person served by the local social service agency prior to the date of death.
65.28 	(e) A person attending a child mortality review panel meeting shall not disclose what 
65.29 	transpired at the meeting, except to carry out the purposes of the mortality review panel. 
65.30 	The proceedings and records of the mortality review panel are protected nonpublic data as 
65.31 	defined in section 13.02, subdivision 13, and are not subject to discovery or introduction 
65.32 	into evidence in a civil or criminal action against a professional, the state or a county agency, 
65.33 	arising out of the matters the panel is reviewing. Information, documents, and records 
65.34 	otherwise available from other sources are not immune from discovery or use in a civil or 
65.35 	criminal action solely because they were presented during proceedings of the review panel. 
66.1 	A person who presented information before the review panel or who is a member of the 
66.2 	panel shall not be prevented from testifying about matters within the person's knowledge. 
66.3 	However, in a civil or criminal proceeding a person shall not be questioned about the person's 
66.4 	presentation of information to the review panel or opinions formed by the person as a result 
66.5 	of the review meetings.

66.6 	Sec. 51. Minnesota Statutes 2022, section 256.01, subdivision 16, is amended to read:
66.7 		Subd. 16.Information for persons with limited English-language proficiency. By 
66.8 	July 1, 1998, The commissioner shall implement a procedure for public assistance applicants 
66.9 	and recipients to identify a language preference other than English in order to receive 
66.10 	information pertaining to the public assistance programs in that preferred language.

66.11 	Sec. 52. Minnesota Statutes 2022, section 256.01, subdivision 18, is amended to read:
66.12 		Subd. 18.Immigration status verifications. (a) Notwithstanding any waiver of this 
66.13 	requirement by the secretary of the United States Department of Health and Human Services, 
66.14 	effective July 1, 2001, the commissioner shall utilize the Systematic Alien Verification for 
66.15 	Entitlements (SAVE) program to conduct immigration status verifications:
66.16 	(1) as required under United States Code, title 8, section 1642; and
66.17 	(2) for all applicants for food assistance benefits, whether under the federal SNAP, the 
66.18 	MFIP or work first program, or the Minnesota food assistance program; and
66.19 	(3) (2) for all applicants for general assistance, Minnesota supplemental aid, 
66.20 	MinnesotaCare, or housing support under chapter 256I, when the benefits provided by these 
66.21 	programs would fall under the definition of "federal public benefit" under United States 
66.22 	Code, title 8, section 1642, if federal funds were used to pay for all or part of the benefits.
66.23 	(b) The commissioner shall comply with the reporting requirements under United States 
66.24 	Code, title 42, section 611a, and any federal regulation or guidance adopted under that law.

66.25 	Sec. 53. Minnesota Statutes 2022, section 256.01, subdivision 18a, is amended to read:
66.26 		Subd. 18a.Public Assistance Reporting Information System. (a) Effective October 
66.27 	1, 2009, The commissioner shall comply with the federal requirements in Public Law 
66.28 	110-379 in implementing the Public Assistance Reporting Information System (PARIS) to 
66.29 	determine eligibility for all individuals applying for:
66.30 	(1) health care benefits under chapters 256B and 256L; and
67.1 	(2) public benefits under chapters 119B, 256D, and 256I, and the supplemental nutrition 
67.2 	assistance program.
67.3 	(b) The commissioner shall determine eligibility under paragraph (a) by performing data 
67.4 	matches, including matching with medical assistance, cash, child care, and supplemental 
67.5 	assistance programs operated by other states.

67.6 	Sec. 54. Minnesota Statutes 2022, section 256.01, subdivision 34, is amended to read:
67.7 		Subd. 34.Federal administrative reimbursement dedicated. Federal administrative 
67.8 	reimbursement resulting from the following activities is appropriated to the commissioner 
67.9 	for the designated purposes:
67.10 	(1) reimbursement for the Minnesota senior health options project; and
67.11 	(2) reimbursement related to prior authorization, review of medical necessity, and 
67.12 	inpatient admission certification by a professional review organization. A portion of these 
67.13 	funds must be used for activities to decrease unnecessary pharmaceutical costs in medical 
67.14 	assistance; and.
67.15 	(3) reimbursement resulting from the federal child support grant expenditures authorized 
67.16 	under United States Code, title 42, section 1315.

67.17 	Sec. 55. Minnesota Statutes 2022, section 256.012, subdivision 2, is amended to read:
67.18 		Subd. 2.Payment for services provided. (a) The cost of merit system operations shall 
67.19 	be paid by counties and other entities that utilize merit system services. Total costs shall be 
67.20 	determined by the commissioner annually and must be set at a level that neither significantly 
67.21 	overrecovers nor underrecovers the costs of providing the service. The costs of merit system 
67.22 	services shall be prorated among participating counties in accordance with an agreement 
67.23 	between the commissioner and these counties. Participating counties will be billed quarterly 
67.24 	in advance and shall pay their share of the costs upon receipt of the billing.
67.25 	(b) This subdivision does not apply to counties with personnel systems otherwise provided 
67.26 	by law that meet federal merit system requirements. A county that applies to withdraw from 
67.27 	the merit system must notify the commissioner of the county's intent to develop its own 
67.28 	personnel system. This notice must be provided in writing by December 31 of the year 
67.29 	preceding the year of final participation in the merit system. The county may withdraw after 
67.30 	the commissioner has certified that its personnel system meets federal merit system 
67.31 	requirements.
68.1 	(c) A county merit system operations account is established in the special revenue fund. 
68.2 	Payments received by the commissioner for merit system costs must be deposited in the 
68.3 	merit system operations account and must be used for the purpose of providing the services 
68.4 	and administering the merit system.
68.5 	(d) County payment of merit system costs is effective July 1, 2003, however payment 
68.6 	for the period from July 1, 2003, through December 31, 2003, shall be made no later than 
68.7 	January 31, 2004.

68.8 	Sec. 56. Minnesota Statutes 2022, section 256.012, is amended by adding a subdivision 
68.9 	to read:
68.10 		Subd. 4.Consultation with commissioner of children, youth, and families 
68.11 	required. The commissioner must consult with the commissioner of children, youth, and 
68.12 	families on the administration of the merit system, including on the requirements in this 
68.13 	section.

68.14 	Sec. 57. Minnesota Statutes 2022, section 256.016, is amended to read:
68.15 	256.016 PLAIN LANGUAGE IN WRITTEN MATERIALS.
68.16 	(a) To the extent reasonable and consistent with the goals of providing easily 
68.17 	understandable and readable materials and complying with federal and state laws governing 
68.18 	the programs, all written materials relating to services and determinations of eligibility for 
68.19 	or amounts of benefits that will be given to applicants for or recipients of assistance under 
68.20 	a program administered or supervised by the commissioner of human services must be 
68.21 	understandable to a person who reads at the seventh-grade level, using the Flesch scale 
68.22 	analysis readability score as determined under section 72C.09.
68.23 	(b) All written materials relating to determinations of eligibility for or amounts of benefits 
68.24 	that will be given to applicants for or recipients of assistance under programs administered 
68.25 	or supervised by the commissioner of human services must be developed to satisfy the plain 
68.26 	language requirements of the Plain Language Contract Act under sections 325G.29 to 
68.27 	325G.36. Materials may be submitted to the attorney general for review and certification. 
68.28 	Notwithstanding section 325G.35, subdivision 1, the attorney general shall review submitted 
68.29 	materials to determine whether they comply with the requirements of section 325G.31. The 
68.30 	remedies available pursuant to sections 8.31 and 325G.33 to 325G.36 do not apply to these 
68.31 	materials. Failure to comply with this section does not provide a basis for suspending the 
68.32 	implementation or operation of other laws governing programs administered by the 
68.33 	commissioner.
69.1 	(c) The requirements of this section apply to all materials modified or developed by the 
69.2 	commissioner on or after July 1, 1988. The requirements of this section do not apply to 
69.3 	materials that must be submitted to a federal agency for approval, to the extent that 
69.4 	application of the requirements prevents federal approval.
69.5 	(d) Nothing in this section may be construed to prohibit a lawsuit brought to require the 
69.6 	commissioner to comply with this section or to affect individual appeal rights granted 
69.7 	pursuant to section 256.045.

69.8 	Sec. 58. Minnesota Statutes 2022, section 256.017, subdivision 1, is amended to read:
69.9 		Subdivision 1.Authority and purpose. (a) The commissioner of human services shall 
69.10 	directly administer the compliance system for general assistance, medical assistance, 
69.11 	emergency general assistance, Minnesota supplemental assistance, housing support, 
69.12 	preadmission screening, alternative care grants, and all other programs administered by the 
69.13 	commissioner or on behalf of the commissioner under the powers and authorities named in 
69.14 	section 256.01, subdivision 2.
69.15 	(b) The commissioner of children, youth, and families shall administer the compliance 
69.16 	system for the Minnesota family investment program, the Supplemental Nutrition Assistance 
69.17 	Program (SNAP), the child care assistance program, and all other programs administered 
69.18 	by the commissioner or on behalf of the commissioner under the powers and authorities 
69.19 	named in section 142A.03, subdivision 2.
69.20 	(c) The commissionercommissioners of human services and children, youth, and families 
69.21 	shall cooperate as necessary to administer a compliance system for systems related to the 
69.22 	Minnesota family investment program, the Supplemental Nutrition Assistance Program 
69.23 	(SNAP), emergency assistance, general assistance, medical assistance, emergency general 
69.24 	assistance, Minnesota supplemental assistance, housing support, preadmission screening, 
69.25 	alternative care grants, the child care assistance program, and all other programs administered 
69.26 	by the commissioner of human services or on behalf of the commissioner of human services 
69.27 	under the powers and authorities named in section 256.01, subdivision 2.
69.28 	(d) The purpose of the compliance system is to permit the commissioner commissioners
69.29 	to supervise the administration of public assistance programs and to enforce timely and 
69.30 	accurate distribution of benefits, completeness of service and efficient and effective program 
69.31 	management and operations, to increase uniformity and consistency in the administration 
69.32 	and delivery of public assistance programs throughout the state, and to reduce the possibility 
69.33 	of sanctions and fiscal disallowances for noncompliance with federal regulations and state 
69.34 	statutes. The commissioner commissioners, or the commissioner's representative
70.1 	commissioners' representatives, may issue administrative subpoenas as needed in 
70.2 	administering the compliance system.
70.3 	(e) The commissioner commissioners shall utilize training, technical assistance, and 
70.4 	monitoring activities, as specified in section sections 142A.03, subdivision 2, and256.01, 
70.5 	subdivision 2, to encourage county agency compliance with written policies and procedures.

70.6 	Sec. 59. Minnesota Statutes 2022, section 256.017, subdivision 2, is amended to read:
70.7 		Subd. 2.Definitions. The following terms have the meanings given for purposes of this 
70.8 	section.
70.9 	(a) "Administrative penalty" means an adjustment against the county agency's state and 
70.10 	federal benefit and federal administrative reimbursement when the commissioner determines 
70.11 	that the county agency is not in compliance with the policies and procedures established by 
70.12 	the commissioner.
70.13 	(b) "Commissioner" means the commissioner of human services for programs listed in 
70.14 	subdivision 1, paragraph (b), and the commissioner of children, youth, and families for 
70.15 	programs listed in subdivision 1, paragraph (c).
70.16 	(b) (c) "Quality control case penalty" means an adjustment against the county agency's 
70.17 	federal administrative reimbursement and state and federal benefit reimbursement when 
70.18 	the commissioner determines through a quality control review that the county agency has 
70.19 	made incorrect payments, terminations, or denials of benefits as determined by state quality 
70.20 	control procedures for the aid to families with dependent children program formerly codified 
70.21 	in sections 256.72 to 256.87, Minnesota family investment program, SNAP, or medical 
70.22 	assistance programs, or any other programs for which the commissioner has developed a 
70.23 	quality control system. Quality control case penalties apply only to agency errors as defined 
70.24 	by state quality control procedures.
70.25 	(c) (d) "Quality control/quality assurance" means a review system of a statewide random 
70.26 	sample of cases, designed to provide data on program outcomes and the accuracy with which 
70.27 	state and federal policies are being applied in issuing benefits and as a fiscal audit to ensure 
70.28 	the accuracy of expenditures. The quality control/quality assurance system is administered 
70.29 	by the department. For the aid to families with dependent children program formerly codified 
70.30 	in sections 256.72 to 256.87, SNAP, and medical assistance, the quality control system is 
70.31 	that required by federal regulation, or those developed by the commissioner.

71.1 	Sec. 60. Minnesota Statutes 2022, section 256.017, subdivision 3, is amended to read:
71.2 		Subd. 3.Quality control case penalty. The department commissioner shall disallow, 
71.3 	withhold, or deny state and federal benefit reimbursement and federal administrative 
71.4 	reimbursement payment to a county when the commissioner determines that the county has 
71.5 	incorrectly issued benefits or incorrectly denied or terminated benefits. These cases shall 
71.6 	be identified by state quality control reviews.

71.7 	Sec. 61. Minnesota Statutes 2022, section 256.017, subdivision 5, is amended to read:
71.8 		Subd. 5.Administrative penalties. The department commissioner shall disallow or 
71.9 	withhold state and federal benefit reimbursement and federal administrative reimbursement 
71.10 	from county agencies when the actions performed by the county agency are not in compliance 
71.11 	with the written policies and procedures established by the commissioner. The policies and 
71.12 	procedures must be previously communicated to the county agency. A county agency shall 
71.13 	not be penalized for complying with a written policy or procedure, even if the policy or 
71.14 	procedure is found to be erroneous and is subsequently rescinded by the commissioner.

71.15 	Sec. 62. Minnesota Statutes 2022, section 256.017, subdivision 7, is amended to read:
71.16 		Subd. 7.Process and exception. (a)(1) The department commissioner shall notify the 
71.17 	county agency in writing of all proposed quality control case penalties.
71.18 	(2) The county agency may submit a written exception of the quality control error claim 
71.19 	and proposed penalty. The exception must be submitted to the commissioner within ten 
71.20 	calendar days of the receipt of the penalty notice.
71.21 	(3) Within 20 calendar days of receipt of the written exception, the commissioner shall 
71.22 	sustain, dismiss, or amend the quality control findings and case penalty and notify the county 
71.23 	agency, in writing, of the decision and the amount of any penalty. The commissioner's 
71.24 	decision is not subject to judicial review.
71.25 	(b)(1) The department commissioner shall notify the county agency in writing of any 
71.26 	proposed administrative penalty, the date by which the county agency must correct the 
71.27 	issues noted in the penalty, and the time period within which the county agency must submit 
71.28 	a corrective action plan for compliance.
71.29 	(2) If the county agency fails to submit a corrective action plan within the stated time 
71.30 	period, or if the corrective action plan does not bring the agency into compliance as 
71.31 	determined by the department commissioner, or if the county agency fails to meet the 
72.1 	commitments in the corrective action plan, the department commissioner shall issue the 
72.2 	administrative penalty and notify the county agency in writing.
72.3 	(3) The county agency may file written exception to the administrative penalty with the 
72.4 	commissioner within 30 days of the receipt of the department's commissioner's notice of 
72.5 	issuing the administrative penalty. The county agency must notify the commissioner of its 
72.6 	intent to file a written exception within ten days of the delivery of the department's
72.7 	commissioner's notice of the administrative penalty. If the county agency does not notify 
72.8 	the commissioner of its intent to file and does not file a written exception within the 
72.9 	prescribed time periods, the department's initial decision shall be final.
72.10 	(4) The commissioner shall sustain, dismiss, or amend the administrative penalty findings, 
72.11 	and shall issue a written order to the county agency within 30 calendar days after receiving 
72.12 	the county agency's written exception.

72.13 	Sec. 63. Minnesota Statutes 2022, section 256.018, is amended to read:
72.14 	256.018 COUNTY PUBLIC ASSISTANCE INCENTIVE FUND.
72.15 	The commissioner of human services, in coordination with the commissioner of children, 
72.16 	youth, and families, shall grant incentive awards of money specifically appropriated for this 
72.17 	purpose to counties: (1) that have not been assessed an administrative penalty under section 
72.18 	256.017 in the corresponding fiscal year; and (2) that perform satisfactorily according to 
72.19 	indicators established by the commissioner.
72.20 	After consultation with county agencies, the commissioner shall inform county agencies 
72.21 	in writing of the performance indicators that govern the awarding of the incentive fund for 
72.22 	each fiscal year by April of the preceding fiscal year.
72.23 	The commissioner may set performance indicators to govern the awarding of the total 
72.24 	fund, may allocate portions of the fund to be awarded by unique indicators, or may set a 
72.25 	sole indicator to govern the awarding of funds.
72.26 	The funds shall be awarded to qualifying county agencies according to their share of 
72.27 	benefits for the programs related to the performance indicators governing the distribution 
72.28 	of the fund or part of it as compared to the total benefits of all qualifying county agencies 
72.29 	for the programs related to the performance indicators governing the distribution of the fund 
72.30 	or part of it.

73.1 	Sec. 64. Minnesota Statutes 2022, section 256.019, subdivision 1, is amended to read:
73.2 		Subdivision 1.Retention rates. When an assistance recovery amount is collected and 
73.3 	posted by a county agency under the provisions governing public assistance programs 
73.4 	including general assistance medical care formerly codified in chapter 256D, general 
73.5 	assistance, and Minnesota supplemental aid, the county may keep one-half of the recovery 
73.6 	made by the county agency using any method other than recoupment. For medical assistance, 
73.7 	if the recovery is made by a county agency using any method other than recoupment, the 
73.8 	county may keep one-half of the nonfederal share of the recovery. For MinnesotaCare, if 
73.9 	the recovery is collected and posted by the county agency, the county may keep one-half 
73.10 	of the nonfederal share of the recovery.
73.11 	This does not apply to recoveries from medical providers or to recoveries begun by the 
73.12 	Department of Human Services' Surveillance and Utilization Review Division, State Hospital 
73.13 	Collections Unit, and the Benefit Recoveries Division or, by the attorney general's office, 
73.14 	or child support collections. In the Supplemental Nutrition Assistance Program (SNAP), 
73.15 	the nonfederal share of recoveries in the federal tax offset program only will be divided 
73.16 	equally between the state agency and the involved county agency.

73.17 	Sec. 65. Minnesota Statutes 2022, section 256.019, subdivision 2, is amended to read:
73.18 		Subd. 2.Retention rates for AFDC and MFIP. (a) When an assistance recovery amount 
73.19 	is collected and posted by a county agency under the provisions governing the aid to families 
73.20 	with dependent children program formerly codified in 1996 in sections 256.72 to 256.87
73.21 	or MFIP under chapter 256J, the commissioner shall reimburse the county agency from the 
73.22 	proceeds of the recovery using the applicable rate specified in paragraph (b) or (c).
73.23 	(b) For recoveries of overpayments made on or before September 30, 1996, from the 
73.24 	aid to families with dependent children program including the emergency assistance program, 
73.25 	the commissioner shall reimburse the county agency at a rate of one-quarter of the recovery 
73.26 	made by any method other than recoupment.
73.27 	(c) (b) For recoveries of overpayments made after September 30, 1996, from the aid to 
73.28 	families with dependent children including the emergency assistance program and from
73.29 	programs funded in whole or in part by the temporary assistance to needy families program 
73.30 	under section 256J.02, subdivision 2, and recoveries of nonfederally funded food assistance 
73.31 	under section 256J.11, the commissioner shall reimburse the county agency at a rate of 
73.32 	one-quarter of the recovery made by any method other than recoupment.

74.1 	Sec. 66. Minnesota Statutes 2022, section 256.029, is amended to read:
74.2 	256.029 DOMESTIC VIOLENCE INFORMATIONAL BROCHURE.
74.3 	(a) The commissioner shall provide a domestic violence informational brochure that 
74.4 	provides information about the existence of domestic violence waivers for eligible public 
74.5 	assistance applicants to all applicants of general assistance, Minnesota family investment 
74.6 	program, medical assistance, and MinnesotaCare. The brochure must explain that eligible 
74.7 	applicants may be temporarily waived from certain program requirements due to domestic 
74.8 	violence. The brochure must provide information about services and other programs to help 
74.9 	victims of domestic violence.
74.10 	(b) The brochure must be funded with TANF funds.

74.11 	Sec. 67. Minnesota Statutes 2023 Supplement, section 256.045, subdivision 3, is amended 
74.12 	to read:
74.13 		Subd. 3.State agency hearings. (a) State agency hearings are available for the following:
74.14 	(1) any person:
74.15 	(i) applying for, receiving or having received public assistance, medical care, or a program 
74.16 	of social services granted by the state agency administered by the commissioner or a county 
74.17 	agency or the federal Food and Nutrition Act on behalf of the commissioner; and
74.18 	(ii) whose application for assistance is denied, not acted upon with reasonable promptness, 
74.19 	or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly 
74.20 	paid;
74.21 	(2) any patient or relative aggrieved by an order of the commissioner under section 
74.22 	252.27;
74.23 	(3) a party aggrieved by a ruling of a prepaid health plan;
74.24 	(4) except as provided under chapter 245C, any individual or facility determined by a 
74.25 	lead investigative agency to have maltreated a vulnerable adult under section 626.557 after 
74.26 	they have exercised their right to administrative reconsideration under section 626.557;
74.27 	(5) any person whose claim for foster care payment according to a placement of the 
74.28 	child resulting from a child protection assessment under chapter 260E is denied or not acted 
74.29 	upon with reasonable promptness, regardless of funding source;
74.30 	(6) (5) any person to whom a right of appeal according to this section is given by other 
74.31 	provision of law;
75.1 	(7) (6) an applicant aggrieved by an adverse decision to an application for a hardship 
75.2 	waiver under section 256B.15;
75.3 	(8) (7) an applicant aggrieved by an adverse decision to an application or redetermination 
75.4 	for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;
75.5 	(9) except as provided under chapter 245A, an individual or facility determined to have 
75.6 	maltreated a minor under chapter 260E, after the individual or facility has exercised the 
75.7 	right to administrative reconsideration under chapter 260E;
75.8 	(10) (8) except as provided under chapter 245C and except for a subject of a background 
75.9 	study that the commissioner has conducted on behalf of another agency for a program or 
75.10 	facility not otherwise overseen by the commissioner, an individual disqualified under sections 
75.11 	245C.14 and 245C.15, following a reconsideration decision issued under section 245C.23, 
75.12 	on the basis of serious or recurring maltreatment; a preponderance of the evidence that the 
75.13 	individual has committed an act or acts that meet the definition of any of the crimes listed 
75.14 	in section 245C.15, subdivisions 1 to 4; or for failing to make reports required under section 
75.15 	260E.06, subdivision 1, or 626.557, subdivision 3. Hearings regarding a maltreatment 
75.16 	determination under clause (4) or (9) (8) or section 142A.20, subdivision 3, clause (4), and 
75.17 	a disqualification under this clause in which the basis for a disqualification is serious or 
75.18 	recurring maltreatment, shall be consolidated into a single fair hearing. In such cases, the 
75.19 	scope of review by the human services judge shall include both the maltreatment 
75.20 	determination and the disqualification. The failure to exercise the right to an administrative 
75.21 	reconsideration shall not be a bar to a hearing under this section if federal law provides an 
75.22 	individual the right to a hearing to dispute a finding of maltreatment;
75.23 	(11) (9) any person with an outstanding debt resulting from receipt of public assistance,
75.24 	administered by the commissioner or medical care, or the federal Food and Nutrition Act
75.25 	who is contesting a setoff claim by the Department of Human Services or a county agency. 
75.26 	The scope of the appeal is the validity of the claimant agency's intention to request a setoff 
75.27 	of a refund under chapter 270A against the debt;
75.28 	(12) (10) a person issued a notice of service termination under section 245D.10, 
75.29 	subdivision 3a, by a licensed provider of any residential supports or services listed in section 
75.30 	245D.03, subdivision 1, paragraphs (b) and (c), that is not otherwise subject to appeal under 
75.31 	subdivision 4a;
75.32 	(13) (11) an individual disability waiver recipient based on a denial of a request for a 
75.33 	rate exception under section 256B.4914;
76.1 	(14) (12) a person issued a notice of service termination under section 245A.11, 
76.2 	subdivision 11, that is not otherwise subject to appeal under subdivision 4a; or
76.3 	(15) (13) a recovery community organization seeking medical assistance vendor eligibility 
76.4 	under section 254B.01, subdivision 8, that is aggrieved by a membership or accreditation 
76.5 	determination and that believes the organization meets the requirements under section 
76.6 	254B.05, subdivision 1, paragraph (d), clauses (1) to (10). The scope of the review by the 
76.7 	human services judge shall be limited to whether the organization meets each of the 
76.8 	requirements under section 254B.05, subdivision 1, paragraph (d), clauses (1) to (10).
76.9 	(b) The hearing for an individual or facility under paragraph (a), clause (4), (9) (8), or 
76.10 	(10) (9), is the only administrative appeal to the final agency determination specifically, 
76.11 	including a challenge to the accuracy and completeness of data under section 13.04. Hearings 
76.12 	requested under paragraph (a), clause (4), apply only to incidents of maltreatment that occur 
76.13 	on or after October 1, 1995. Hearings requested by nursing assistants in nursing homes 
76.14 	alleged to have maltreated a resident prior to October 1, 1995, shall be held as a contested 
76.15 	case proceeding under the provisions of chapter 14. Hearings requested under paragraph 
76.16 	(a), clause (9) (8), apply only to incidents of maltreatment that occur on or after July 1, 
76.17 	1997. A hearing for an individual or facility under paragraph (a), clauses (4), (9), and (10)
76.18 	clause (4), (8), or (9), is only available when there is no district court action pending. If 
76.19 	such action is filed in district court while an administrative review is pending that arises 
76.20 	out of some or all of the events or circumstances on which the appeal is based, the 
76.21 	administrative review must be suspended until the judicial actions are completed. If the 
76.22 	district court proceedings are completed, dismissed, or overturned, the matter may be 
76.23 	considered in an administrative hearing.
76.24 	(c) For purposes of this section, bargaining unit grievance procedures are not an 
76.25 	administrative appeal.
76.26 	(d) The scope of hearings involving claims to foster care payments under paragraph (a), 
76.27 	clause (5), shall be limited to the issue of whether the county is legally responsible for a 
76.28 	child's placement under court order or voluntary placement agreement and, if so, the correct 
76.29 	amount of foster care payment to be made on the child's behalf and shall not include review 
76.30 	of the propriety of the county's child protection determination or child placement decision.
76.31 	(e) (d) The scope of hearings under paragraph (a), clauses (12) (11) and (14) (13), shall 
76.32 	be limited to whether the proposed termination of services is authorized under section 
76.33 	245D.10, subdivision 3a, paragraph (b), or 245A.11, subdivision 11, and whether the 
76.34 	requirements of section 245D.10, subdivision 3a, paragraphs (c) to (e), or 245A.11, 
77.1 	subdivision 2a, paragraphs (d) to (f) and (e), were met. If the appeal includes a request for 
77.2 	a temporary stay of termination of services, the scope of the hearing shall also include 
77.3 	whether the case management provider has finalized arrangements for a residential facility, 
77.4 	a program, or services that will meet the assessed needs of the recipient by the effective 
77.5 	date of the service termination.
77.6 	(f) (e) A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor 
77.7 	under contract with a county agency to provide social services is not a party and may not 
77.8 	request a hearing under this section, except if assisting a recipient as provided in subdivision 
77.9 	4.
77.10 	(g) (f) An applicant or recipient is not entitled to receive social services beyond the 
77.11 	services prescribed under chapter 256M or other social services the person is eligible for 
77.12 	under state law.
77.13 	(h) (g) The commissioner may summarily affirm the county or state agency's proposed 
77.14 	action without a hearing when the sole issue is an automatic change due to a change in state 
77.15 	or federal law.
77.16 	(i) (h) Unless federal or Minnesota law specifies a different time frame in which to file 
77.17 	an appeal, an individual or organization specified in this section may contest the specified 
77.18 	action, decision, or final disposition before the state agency by submitting a written request 
77.19 	for a hearing to the state agency within 30 days after receiving written notice of the action, 
77.20 	decision, or final disposition, or within 90 days of such written notice if the applicant, 
77.21 	recipient, patient, or relative shows good cause, as defined in section 256.0451, subdivision 
77.22 	13, why the request was not submitted within the 30-day time limit. The individual filing 
77.23 	the appeal has the burden of proving good cause by a preponderance of the evidence.

77.24 	Sec. 68. Minnesota Statutes 2022, section 256.045, subdivision 3b, is amended to read:
77.25 		Subd. 3b.Standard of evidence for maltreatment and disqualification hearings. (a) 
77.26 	The state human services judge shall determine that maltreatment has occurred if a 
77.27 	preponderance of evidence exists to support the final disposition under section 626.557 and 
77.28 	chapter 260E. For purposes of hearings regarding disqualification, the state human services 
77.29 	judge shall affirm the proposed disqualification in an appeal under subdivision 3, paragraph 
77.30 	(a), clause (10) (9), if a preponderance of the evidence shows the individual has:
77.31 	(1) committed maltreatment under section 626.557 or chapter 260E, which that is serious 
77.32 	or recurring;
78.1 	(2) committed an act or acts meeting the definition of any of the crimes listed in section 
78.2 	245C.15, subdivisions 1 to 4; or
78.3 	(3) failed to make required reports under section 626.557 or chapter 260E, for incidents 
78.4 	in which the final disposition under section 626.557 or chapter 260E was substantiated 
78.5 	maltreatment that was serious or recurring.
78.6 	(b) If the disqualification is affirmed, the state human services judge shall determine 
78.7 	whether the individual poses a risk of harm in accordance with the requirements of section 
78.8 	245C.22, and whether the disqualification should be set aside or not set aside. In determining 
78.9 	whether the disqualification should be set aside, the human services judge shall consider 
78.10 	all of the characteristics that cause the individual to be disqualified, including those 
78.11 	characteristics that were not subject to review under paragraph (a), in order to determine 
78.12 	whether the individual poses a risk of harm. A decision to set aside a disqualification that 
78.13 	is the subject of the hearing constitutes a determination that the individual does not pose a 
78.14 	risk of harm and that the individual may provide direct contact services in the individual 
78.15 	program specified in the set aside.
78.16 	(c) If a disqualification is based solely on a conviction or is conclusive for any reason 
78.17 	under section 245C.29, the disqualified individual does not have a right to a hearing under 
78.18 	this section.
78.19 	(d) The state human services judge shall recommend an order to the commissioner of 
78.20 	health, education, or human services, as applicable, who shall issue a final order. The 
78.21 	commissioner shall affirm, reverse, or modify the final disposition. Any order of the 
78.22 	commissioner issued in accordance with this subdivision is conclusive upon the parties 
78.23 	unless appeal is taken in the manner provided in subdivision 7. In any licensing appeal under 
78.24 	chapters 245A and 245C and sections 144.50 to 144.58 and 144A.02 to 144A.482, the 
78.25 	commissioner's determination as to maltreatment is conclusive, as provided under section 
78.26 	245C.29.

78.27 	Sec. 69. Minnesota Statutes 2022, section 256.045, subdivision 4, is amended to read:
78.28 		Subd. 4.Conduct of hearings. (a) All hearings held pursuant to subdivision 3, 3a, 3b, 
78.29 	or 4a shall be conducted according to the provisions of the federal Social Security Act and 
78.30 	the regulations implemented in accordance with that act to enable this state to qualify for 
78.31 	federal grants-in-aid, and according to the rules and written policies of the commissioner 
78.32 	of human services. County agencies shall install equipment necessary to conduct telephone 
78.33 	hearings. A state human services judge may schedule a telephone conference hearing when 
78.34 	the distance or time required to travel to the county agency offices will cause a delay in the 
79.1 	issuance of an order, or to promote efficiency, or at the mutual request of the parties. Hearings 
79.2 	may be conducted by telephone conferences unless the applicant, recipient, former recipient, 
79.3 	person, or facility contesting maltreatment objects. A human services judge may grant a 
79.4 	request for a hearing in person by holding the hearing by interactive video technology or 
79.5 	in person. The human services judge must hear the case in person if the person asserts that 
79.6 	either the person or a witness has a physical or mental disability that would impair the 
79.7 	person's or witness's ability to fully participate in a hearing held by interactive video 
79.8 	technology. The hearing shall not be held earlier than five days after filing of the required 
79.9 	notice with the county or state agency. The state human services judge shall notify all 
79.10 	interested persons of the time, date, and location of the hearing at least five days before the 
79.11 	date of the hearing. Interested persons may be represented by legal counsel or other 
79.12 	representative of their choice, including a provider of therapy services, at the hearing and 
79.13 	may appear personally, testify and offer evidence, and examine and cross-examine witnesses. 
79.14 	The applicant, recipient, former recipient, person, or facility contesting maltreatment shall 
79.15 	have the opportunity to examine the contents of the case file and all documents and records 
79.16 	to be used by the county or state agency at the hearing at a reasonable time before the date 
79.17 	of the hearing and during the hearing. In hearings under subdivision 3, paragraph (a), clauses 
79.18 	(4), (9) (8), and (10) (9), either party may subpoena the private data relating to the 
79.19 	investigation prepared by the agency under section 626.557 or chapter 260E that is not 
79.20 	otherwise accessible under section 13.04, provided the identity of the reporter may not be 
79.21 	disclosed.
79.22 	(b) The private data obtained by subpoena in a hearing under subdivision 3, paragraph 
79.23 	(a), clause (4), (9) (8), or (10) (9), must be subject to a protective order which prohibits its 
79.24 	disclosure for any other purpose outside the hearing provided for in this section without 
79.25 	prior order of the district court. Disclosure without court order is punishable by a sentence 
79.26 	of not more than 90 days imprisonment or a fine of not more than $1,000, or both. These 
79.27 	restrictions on the use of private data do not prohibit access to the data under section 13.03, 
79.28 	subdivision 6. Except for appeals under subdivision 3, paragraph (a), clauses (4), (5), (9)
79.29 	(8), and (10) (9), upon request, the county agency shall provide reimbursement for 
79.30 	transportation, child care, photocopying, medical assessment, witness fee, and other necessary 
79.31 	and reasonable costs incurred by the applicant, recipient, or former recipient in connection 
79.32 	with the appeal. All evidence, except that privileged by law, commonly accepted by 
79.33 	reasonable people in the conduct of their affairs as having probative value with respect to 
79.34 	the issues shall be submitted at the hearing and such hearing shall not be "a contested case" 
79.35 	within the meaning of section 14.02, subdivision 3. The agency must present its evidence 
80.1 	prior to or at the hearing, and may not submit evidence after the hearing except by agreement 
80.2 	of the parties at the hearing, provided the petitioner has the opportunity to respond.
80.3 	(c) In hearings under subdivision 3, paragraph (a), clauses (4), (9), and (10) clause (4), 
80.4 	(8), or (9), involving determinations of maltreatment or disqualification made by more than 
80.5 	one county agency, by a county agency and a state agency, or by more than one state agency, 
80.6 	the hearings may be consolidated into a single fair hearing upon the consent of all parties 
80.7 	and the state human services judge.
80.8 	(d) For hearings under subdivision 3, paragraph (a), clause (4) or (10) (9), involving a 
80.9 	vulnerable adult, the human services judge shall notify the vulnerable adult who is the 
80.10 	subject of the maltreatment determination and, if known, a guardian of the vulnerable adult 
80.11 	appointed under section 524.5-310, or a health care agent designated by the vulnerable adult 
80.12 	in a health care directive that is currently effective under section 145C.06 and whose authority 
80.13 	to make health care decisions is not suspended under section 524.5-310, of the hearing. The 
80.14 	notice must be sent by certified mail and inform the vulnerable adult of the right to file a 
80.15 	signed written statement in the proceedings. A guardian or health care agent who prepares 
80.16 	or files a written statement for the vulnerable adult must indicate in the statement that the 
80.17 	person is the vulnerable adult's guardian or health care agent and sign the statement in that 
80.18 	capacity. The vulnerable adult, the guardian, or the health care agent may file a written 
80.19 	statement with the human services judge hearing the case no later than five business days 
80.20 	before commencement of the hearing. The human services judge shall include the written 
80.21 	statement in the hearing record and consider the statement in deciding the appeal. This 
80.22 	subdivision does not limit, prevent, or excuse the vulnerable adult from being called as a 
80.23 	witness testifying at the hearing or grant the vulnerable adult, the guardian, or health care 
80.24 	agent a right to participate in the proceedings or appeal the human services judge's decision 
80.25 	in the case. The lead investigative agency must consider including the vulnerable adult 
80.26 	victim of maltreatment as a witness in the hearing. If the lead investigative agency determines 
80.27 	that participation in the hearing would endanger the well-being of the vulnerable adult or 
80.28 	not be in the best interests of the vulnerable adult, the lead investigative agency shall inform 
80.29 	the human services judge of the basis for this determination, which must be included in the 
80.30 	final order. If the human services judge is not reasonably able to determine the address of 
80.31 	the vulnerable adult, the guardian, or the health care agent, the human services judge is not 
80.32 	required to send a hearing notice under this subdivision.

81.1 	Sec. 70. Minnesota Statutes 2022, section 256.045, subdivision 6, is amended to read:
81.2 		Subd. 6.Additional powers of commissioner; subpoenas. (a) The commissioner of 
81.3 	human services, or the commissioner of health for matters within the commissioner's 
81.4 	jurisdiction under subdivision 3b, may initiate a review of any action or decision of a county 
81.5 	agency and direct that the matter be presented to a state human services judge for a hearing 
81.6 	held under subdivision 3, 3a, 3b, or 4a. In all matters dealing with human services committed 
81.7 	by law to the discretion of the county agency, the commissioner's judgment may be 
81.8 	substituted for that of the county agency. The commissioner may order an independent 
81.9 	examination when appropriate.
81.10 	(b) Any party to a hearing held pursuant to subdivision 3, 3a, 3b, or 4a may request that 
81.11 	the commissioner issue a subpoena to compel the attendance of witnesses and the production 
81.12 	of records at the hearing. A local agency may request that the commissioner issue a subpoena 
81.13 	to compel the release of information from third parties prior to a request for a hearing under 
81.14 	section 256.046 upon a showing of relevance to such a proceeding. The issuance, service, 
81.15 	and enforcement of subpoenas under this subdivision is governed by section 357.22 and 
81.16 	the Minnesota Rules of Civil Procedure.
81.17 	(c) The commissioner may issue a temporary order staying a proposed demission by a 
81.18 	residential facility licensed under chapter 245A:
81.19 	(1) while an appeal by a recipient under subdivision 3 is pending;
81.20 	(2) for the period of time necessary for the case management provider to implement the 
81.21 	commissioner's order; or
81.22 	(3) for appeals under subdivision 3, paragraph (a), clause (12) (11), when the individual 
81.23 	is seeking a temporary stay of demission on the basis that the county has not yet finalized 
81.24 	an alternative arrangement for a residential facility, a program, or services that will meet 
81.25 	the assessed needs of the individual by the effective date of the service termination, a 
81.26 	temporary stay of demission may be issued for no more than 30 calendar days to allow for 
81.27 	such arrangements to be finalized.

81.28 	Sec. 71. Minnesota Statutes 2022, section 256.045, subdivision 10, is amended to read:
81.29 		Subd. 10.Payments pending appeal. If the commissioner of human services or district 
81.30 	court orders monthly assistance or aid or services paid or provided in any proceeding under 
81.31 	this section, it shall be paid or provided pending appeal to the commissioner of human 
81.32 	services, district court, court of appeals, or supreme court. The human services judge may 
81.33 	order the local human services agency to reduce or terminate medical assistance to a recipient 
82.1 	before a final order is issued under this section if: (1) the human services judge determines 
82.2 	at the hearing that the sole issue on appeal is one of a change in state or federal law; and 
82.3 	(2) the commissioner or the local agency notifies the recipient before the action. The state 
82.4 	or county agency has a claim for Supplemental Nutrition Assistance Program (SNAP) 
82.5 	benefits, cash payments, medical assistance, and MinnesotaCare program payments made 
82.6 	to or on behalf of a recipient or former recipient while an appeal is pending if the recipient 
82.7 	or former recipient is determined ineligible for SNAP benefits, cash payments, medical 
82.8 	assistance, or MinnesotaCare as a result of the appeal, except for medical assistance made 
82.9 	on behalf of a recipient pursuant to a court order. In enforcing a claim on MinnesotaCare 
82.10 	program payments, the state or county agency shall reduce the claim amount by the value 
82.11 	of any premium payments made by a recipient or former recipient during the period for 
82.12 	which the recipient or former recipient has been determined to be ineligible. Provision of 
82.13 	a health care service by the state agency under medical assistance or MinnesotaCare pending 
82.14 	appeal shall not render moot the state agency's position in a court of law.

82.15 	Sec. 72. Minnesota Statutes 2022, section 256.0451, subdivision 1, is amended to read:
82.16 		Subdivision 1.Scope. (a) The requirements in this section apply to all fair hearings and 
82.17 	appeals under section 256.045, subdivision 3, paragraph (a), clauses (1), (2), (3), (5), (6), 
82.18 	(7), (8), (11), and (13). Except as provided in subdivisions 3 and 19, the requirements under 
82.19 	this section apply to fair hearings and appeals under section 256.045, subdivision 3, paragraph 
82.20 	(a), clauses (4), (9), (10), and (12).
82.21 	The term "person" is used in this section to mean (b) For purposes of this section, "person" 
82.22 	means an individual who, on behalf of themselves or their household, is appealing or 
82.23 	disputing or challenging an action, a decision, or a failure to act, by an agency in the human 
82.24 	services system. When a person involved in a proceeding under this section is represented 
82.25 	by an attorney or by an authorized representative, the term "person" also refers to means
82.26 	the person's attorney or authorized representative. Any notice sent to the person involved 
82.27 	in the hearing must also be sent to the person's attorney or authorized representative.
82.28 	The term "agency" includes (c) For purposes of this section, "agency" means the county 
82.29 	human services agency, the state human services agency, and, where applicable, any entity 
82.30 	involved under a contract, subcontract, grant, or subgrant with the state agency or with a 
82.31 	county agency, that provides or operates programs or services in which appeals are governed 
82.32 	by section 256.045.

83.1 	Sec. 73. Minnesota Statutes 2022, section 256.0451, subdivision 2, is amended to read:
83.2 		Subd. 2.Access to files. A person involved in a fair hearing appeal has the right of access 
83.3 	to the person's complete case files and to examine all private welfare data on the person 
83.4 	which has been generated, collected, stored, or disseminated by the agency. A person 
83.5 	involved in a fair hearing appeal has the right to a free copy of all documents in the case 
83.6 	file involved in a fair hearing appeal. For purposes of this section, "case file" means the 
83.7 	information, documents, and data, in whatever form, which have been generated, collected, 
83.8 	stored, or disseminated by the agency in connection with the person and the program or 
83.9 	service involved.

83.10 	Sec. 74. Minnesota Statutes 2023 Supplement, section 256.046, subdivision 1, is amended 
83.11 	to read:
83.12 		Subdivision 1.Hearing authority. A local agency must initiate an administrative fraud 
83.13 	disqualification hearing for individuals accused of wrongfully obtaining assistance or 
83.14 	intentional program violations, in lieu of a criminal action when it has not been pursued, in 
83.15 	the Minnesota family investment program and any affiliated program to include the work 
83.16 	participation cash benefit program, child care assistance programs, general assistance, family 
83.17 	general assistance program formerly codified in section 256D.05, subdivision 1, clause (15), 
83.18 	Minnesota supplemental aid, the Supplemental Nutrition Assistance Program (SNAP),
83.19 	MinnesotaCare for adults without children, and upon federal approval, all categories of 
83.20 	medical assistance and remaining categories of MinnesotaCare except for children through 
83.21 	age 18. The Department of Human Services, in lieu of a local agency, may initiate an 
83.22 	administrative fraud disqualification hearing when the state agency is directly responsible 
83.23 	for administration or investigation of the program for which benefits were wrongfully 
83.24 	obtained. The hearing is subject to the requirements of sections 256.045 and 256.0451 and 
83.25 	the requirements in Code of Federal Regulations, title 7, section 273.16.

83.26 	Sec. 75. Minnesota Statutes 2022, section 256.046, subdivision 2, is amended to read:
83.27 		Subd. 2.Combined hearing. (a) The human services judge may combine a fair hearing 
83.28 	under section 142A.20 or 256.045 and administrative fraud disqualification hearing under 
83.29 	this section or section 142A.27 into a single hearing if the factual issues arise out of the 
83.30 	same, or related, circumstances; the commissioner of human services has jurisdiction over 
83.31 	at least one of the hearings; and the individual receives prior notice that the hearings will 
83.32 	be combined. If the administrative fraud disqualification hearing and fair hearing are 
83.33 	combined, the time frames for administrative fraud disqualification hearings specified in 
84.1 	Code of Federal Regulations, title 7, section 273.16, apply. If the individual accused of 
84.2 	wrongfully obtaining assistance is charged under section 256.98 for the same act or acts 
84.3 	which are the subject of the hearing, the individual may request that the hearing be delayed 
84.4 	until the criminal charge is decided by the court or withdrawn.
84.5 	(b) The human services judge must conduct any hearings under section 142A.20 or 
84.6 	142A.27 pursuant to the relevant laws and rules governing children, youth, and families 
84.7 	judges.

84.8 	Sec. 76. Minnesota Statutes 2023 Supplement, section 256.0471, subdivision 1, is amended 
84.9 	to read:
84.10 		Subdivision 1.Qualifying overpayment. Any overpayment for assistance granted under 
84.11 	the MFIP program formerly codified under sections 256.031 to 256.0361 and the AFDC 
84.12 	program formerly codified under sections 256.72 to 256.871; for assistance granted under 
84.13 	chapters 119B, 256D, 256I, 256J, and 256K; for assistance granted pursuant to section 
84.14 	256.045, subdivision 10; for state-funded medical assistance and state-funded MinnesotaCare 
84.15 	under chapters 256B and 256L; and for assistance granted under the Supplemental Nutrition 
84.16 	Assistance Program (SNAP),chapter 256B for state-funded medical assistance; and chapters 
84.17 	256D, 256I, 256K, and 256L for state-funded MinnesotaCare except agency error claims, 
84.18 	become a judgment by operation of law 90 days after the notice of overpayment is personally 
84.19 	served upon the recipient in a manner that is sufficient under rule 4.03(a) of the Rules of 
84.20 	Civil Procedure for district courts, or by certified mail, return receipt requested. This 
84.21 	judgment shall be entitled to full faith and credit in this and any other state.

84.22 	Sec. 77. Minnesota Statutes 2022, section 256.82, is amended to read:
84.23 	256.82 PAYMENTS BY STATE.
84.24 		Subd. 2.Foster care maintenance payments. (a) For the purpose of foster care 
84.25 	maintenance payments under title IV-E of the Social Security Act, United States Code, title 
84.26 	42, sections 670 to 676, the county or American Indian child welfare initiative Tribes under 
84.27 	section 256.01, subdivision 14b, paying the maintenance costs must be reimbursed for the 
84.28 	costs from the federal money available for the purpose. Beginning July 1, 1997, For the 
84.29 	purposes of determining a child's eligibility under title IV-E of the Social Security Act, the 
84.30 	placing agency shall use AFDC requirements in effect on July 16, 1996.
84.31 	(b) For the purpose of foster care maintenance payments under title IV-E of the Social 
84.32 	Security Act, United States Code, title 42, sections 670 to 676, the state is responsible for 
84.33 	approving of child care institutions for the county paying the facility's maintenance costs 
85.1 	to be reimbursed from the federal money available for the purpose. The facility must be 
85.2 	licensed by the state or approved or licensed by a Tribe.
85.3 		Subd. 3.Setting foster care standard rates. (a) The commissioner shall annually 
85.4 	establish minimum rates for foster care maintenance including supplemental difficulty of 
85.5 	care payments for all children eligible for Northstar Care for Children under chapter 256N.
85.6 	(b) All children entering foster care on or after January 1, 2015, are eligible for Northstar 
85.7 	Care for Children under chapter 256N. Any increase in rates shall in no case exceed three 
85.8 	percent per annum.
85.9 	(c) All children in foster care on December 31, 2014, must remain in the pre-Northstar 
85.10 	Care for Children foster care program under sections 256N.21, subdivision 6, and 260C.4411, 
85.11 	subdivision 1. The rates for the pre-Northstar Care for Children foster care program shall 
85.12 	remain those in effect on January 1, 2013.
85.13 	(d) The commissioner of children, youth, and families may promulgate rules as necessary 
85.14 	to implement this section.

85.15 	Sec. 78. Minnesota Statutes 2023 Supplement, section 256.98, subdivision 8, is amended 
85.16 	to read:
85.17 		Subd. 8.Disqualification from program. (a) Any person found to be guilty of 
85.18 	wrongfully obtaining assistance by a federal or state court or by an administrative hearing 
85.19 	determination, or waiver thereof, through a disqualification consent agreement, or as part 
85.20 	of any approved diversion plan under section 401.065, or any court-ordered stay which 
85.21 	carries with it any probationary or other conditions, in the Minnesota family investment 
85.22 	program and any affiliated program to include the work participation cash benefit program, 
85.23 	the Supplemental Nutrition Assistance Program (SNAP), the general assistance program, 
85.24 	housing support under chapter 256I, or the Minnesota supplemental aid program shall be 
85.25 	disqualified from that program. In addition, any person disqualified from the Minnesota 
85.26 	family investment program shall also be disqualified from SNAP. The needs of that individual 
85.27 	shall not be taken into consideration in determining the grant level for that assistance unit:
85.28 	(1) for one year after the first offense;
85.29 	(2) for two years after the second offense; and
85.30 	(3) permanently after the third or subsequent offense.
85.31 	The period of program disqualification shall begin on the date stipulated on the advance 
85.32 	notice of disqualification without possibility of postponement for administrative stay or 
86.1 	administrative hearing and shall continue through completion unless and until the findings 
86.2 	upon which the sanctions were imposed are reversed by a court of competent jurisdiction. 
86.3 	The period for which sanctions are imposed is not subject to review. The sanctions provided 
86.4 	under this subdivision are in addition to, and not in substitution for, any other sanctions that 
86.5 	may be provided for by law for the offense involved. A disqualification established through 
86.6 	hearing or waiver shall result in the disqualification period beginning immediately unless 
86.7 	the person has become otherwise ineligible for assistance. If the person is ineligible for 
86.8 	assistance, the disqualification period begins when the person again meets the eligibility 
86.9 	criteria of the program from which they were disqualified and makes application for that 
86.10 	program.
86.11 	(b) A family receiving assistance through child care assistance programs under chapter 
86.12 	119B with a family member who is found to be guilty of wrongfully obtaining child care 
86.13 	assistance by a federal court, state court, or an administrative hearing determination or 
86.14 	waiver, through a disqualification consent agreement, as part of an approved diversion plan 
86.15 	under section 401.065, or a court-ordered stay with probationary or other conditions, is 
86.16 	disqualified from child care assistance programs. The disqualifications must be for periods 
86.17 	of one year and two years for the first and second offenses, respectively. Subsequent 
86.18 	violations must result in permanent disqualification. During the disqualification period, 
86.19 	disqualification from any child care program must extend to all child care programs and 
86.20 	must be immediately applied.
86.21 	(c) A provider caring for children receiving assistance through child care assistance 
86.22 	programs under chapter 119B is disqualified from receiving payment for child care services 
86.23 	from the child care assistance program under chapter 119B when the provider is found to 
86.24 	have wrongfully obtained child care assistance by a federal court, state court, or an 
86.25 	administrative hearing determination or waiver under section 142A.27; 142E.51, subdivision 
86.26 	5; or256.046, through a disqualification consent agreement, as part of an approved diversion 
86.27 	plan under section 401.065, or a court-ordered stay with probationary or other conditions. 
86.28 	The disqualification must be for a period of three years for the first offense. Any subsequent 
86.29 	violation must result in permanent disqualification. The disqualification period must be 
86.30 	imposed immediately after a determination is made under this paragraph. During the 
86.31 	disqualification period, the provider is disqualified from receiving payment from any child 
86.32 	care program under chapter 119B.
86.33 	(d) Any person found to be guilty of wrongfully obtaining MinnesotaCare for adults 
86.34 	without children and upon federal approval, all categories of medical assistance and 
86.35 	remaining categories of MinnesotaCare, except for children through age 18, by a federal or 
87.1 	state court or by an administrative hearing determination, or waiver thereof, through a 
87.2 	disqualification consent agreement, or as part of any approved diversion plan under section 
87.3 	401.065, or any court-ordered stay which carries with it any probationary or other conditions, 
87.4 	is disqualified from that program. The period of disqualification is one year after the first 
87.5 	offense, two years after the second offense, and permanently after the third or subsequent 
87.6 	offense. The period of program disqualification shall begin on the date stipulated on the 
87.7 	advance notice of disqualification without possibility of postponement for administrative 
87.8 	stay or administrative hearing and shall continue through completion unless and until the 
87.9 	findings upon which the sanctions were imposed are reversed by a court of competent 
87.10 	jurisdiction. The period for which sanctions are imposed is not subject to review. The 
87.11 	sanctions provided under this subdivision are in addition to, and not in substitution for, any 
87.12 	other sanctions that may be provided for by law for the offense involved.

87.13 	Sec. 79. Minnesota Statutes 2022, section 256.981, is amended to read:
87.14 	256.981 TRAINING OF WELFARE FRAUD PROSECUTORS.
87.15 	The commissioner commissioners of human services and children, youth, and families 
87.16 	shall, to the extent an appropriation is provided for this purpose, contract with the county 
87.17 	attorney's council or other public or private entity experienced in providing training for 
87.18 	prosecutors to conduct quarterly workshops and seminars focusing on current Minnesota 
87.19 	family investment program issues, other income maintenance program changes, recovery 
87.20 	issues, alternative sentencing methods, use of technical aids for interviews and interrogations, 
87.21 	and other matters affecting prosecution of welfare fraud cases.

87.22 	Sec. 80. Minnesota Statutes 2022, section 256.982, is amended to read:
87.23 	256.982 TRAINING OF WELFARE FRAUD INVESTIGATORS.
87.24 	The commissioner commissioners of human services and children, youth, and families 
87.25 	shall, to the extent an appropriation is provided for this purpose, establish a pilot project 
87.26 	for further education and training of welfare fraud investigators. The commissioner may 
87.27 	enter into contractual agreements with other state, federal, or county agencies as part of 
87.28 	cooperative projects employing experienced investigators to provide on-the-job training to 
87.29 	county investigators.

88.1 	Sec. 81. Minnesota Statutes 2022, section 256.983, as amended by Laws 2023, chapter 
88.2 	70, article 13, section 24, is amended to read:
88.3 	256.983 FRAUD PREVENTION INVESTIGATIONS.
88.4 		Subdivision 1.Programs established. Within the limits of available appropriations, the 
88.5 	commissioner commissioners of human services and children, youth, and families shall 
88.6 	require the maintenance of budget neutral fraud prevention investigation programs in the 
88.7 	counties or Tribal agencies participating in the fraud prevention investigation project 
88.8 	established under this section. If funds are sufficient, the commissioner commissioners may 
88.9 	also extend fraud prevention investigation programs to other counties or Tribal agencies 
88.10 	provided the expansion is budget neutral to the state. Under any expansion, the commissioner 
88.11 	has commissioners jointly have the final authority in decisions regarding the creation and 
88.12 	realignment of individual county, Tribal agency, or regional operations. The commissioners 
88.13 	may establish a joint office or interagency agreement to facilitate joint oversight and 
88.14 	administration of sections 256.981 to 256.9861 and 256.9866.
88.15 		Subd. 2.County and Tribal agency proposals. Each participating county and Tribal 
88.16 	agency shall develop and submit an annual staffing and funding proposal to the commissioner
88.17 	commissioners no later than April 30 of each year. Each proposal shall include, but not be 
88.18 	limited to, the staffing and funding of the fraud prevention investigation program, a job 
88.19 	description for investigators involved in the fraud prevention investigation program, and 
88.20 	the organizational structure of the county or Tribal agency unit, training programs for case 
88.21 	workers, and the operational requirements which may be directed by the commissioner
88.22 	commissioners. The proposal shall be approved, to include any changes directed or negotiated 
88.23 	by the commissioner commissioners, no later than June 30 of each year.
88.24 		Subd. 3.Department responsibilities. The commissioner commissioners shall establish 
88.25 	training programs which shall be attended by all investigative and supervisory staff of the 
88.26 	involved county and Tribal agencies. The commissioner commissioners shall also develop 
88.27 	the necessary operational guidelines, forms, and reporting mechanisms, which that shall be 
88.28 	used by the involved county or Tribal agencies. An individual's application or redetermination 
88.29 	form for public assistance benefits, including child care assistance programs and medical 
88.30 	care programs, must include an authorization for release by the individual to obtain 
88.31 	documentation for any information on that form which is involved in a fraud prevention 
88.32 	investigation. The authorization for release is effective for six months after public assistance 
88.33 	benefits have ceased.
89.1 		Subd. 4.Funding. (a) County and Tribal agency reimbursement shall be made through 
89.2 	the settlement provisions applicable to the Supplemental Nutrition Assistance Program 
89.3 	(SNAP), MFIP, child care assistance programs, the medical assistance program, and other 
89.4 	federal and state-funded programs.
89.5 	(b) The commissioner commissioners will maintain program compliance if for any three 
89.6 	consecutive month period, a county or Tribal agency fails to comply with fraud prevention 
89.7 	investigation program guidelines, or fails to meet the cost-effectiveness standards developed 
89.8 	by the commissioner commissioners. This result is contingent on the commissioner
89.9 	commissioners providing written notice, including an offer of technical assistance, within 
89.10 	30 days of the end of the third or subsequent month of noncompliance. The county or Tribal 
89.11 	agency shall be required to submit a corrective action plan to the commissioner
89.12 	commissioners within 30 days of receipt of a notice of noncompliance. Failure to submit a 
89.13 	corrective action plan or, continued deviation from standards of more than ten percent after 
89.14 	submission of a corrective action plan, will result in denial of funding for each subsequent 
89.15 	month, or billing the county or Tribal agency for fraud prevention investigation (FPI) service 
89.16 	provided by the commissioner commissioners, or reallocation of program grant funds, or 
89.17 	investigative resources, or both, to other counties or Tribal agencies. The denial of funding 
89.18 	shall apply to the general settlement received by the county or Tribal agency on a quarterly 
89.19 	basis and shall not reduce the grant amount applicable to the FPI project.
89.20 		Subd. 5.Child care providers; financial misconduct. (a) A county or Tribal agency 
89.21 	may conduct investigations of financial misconduct by child care providers as described in 
89.22 	chapter 245E. Prior to opening an investigation, a county or Tribal agency must contact the 
89.23 	commissioner commissioners to determine whether an investigation under this chapter may 
89.24 	compromise an ongoing investigation.
89.25 	(b) If, upon investigation, a preponderance of evidence shows a provider committed an 
89.26 	intentional program violation, intentionally gave the county or Tribe materially false 
89.27 	information on the provider's billing forms, provided false attendance records to a county, 
89.28 	Tribe, or the commissioner commissioners, or committed financial misconduct as described 
89.29 	in section 245E.01, subdivision 8, the county or Tribal agency may recommend that the 
89.30 	commissioner commissioners suspend a provider's payment pursuant to chapter 245E, or 
89.31 	deny or revoke a provider's authorization pursuant to section 119B.13, subdivision 6, 
89.32 	paragraph (d), clause (2), prior to pursuing other available remedies.

90.1 	Sec. 82. Minnesota Statutes 2022, section 256.9831, subdivision 1, is amended to read:
90.2 		Subdivision 1.Definition Gambling establishments. (a) For purposes of this section, 
90.3 	"gambling establishment" means a racetrack licensed under section 240.06 or 240.09, a 
90.4 	casino operated under a Tribal-state compact under section 3.9221, or any other establishment 
90.5 	that receives at least 50 percent of its gross revenue from the conduct of gambling.
90.6 	(b) The commissioner shall take all actions necessary to ensure that no person may obtain 
90.7 	benefits under chapter 256, 256D, or 256J through the use of a financial transaction card, 
90.8 	as defined in section 609.821, subdivision 1, paragraph (a), at a terminal located in or 
90.9 	attached to a gambling establishment, liquor store, tobacco store, or tattoo parlor.
90.10 	(c) The commissioner shall take all actions necessary to ensure that warrants issued to 
90.11 	pay benefits under chapter 256 or 256D bear a restrictive endorsement that prevents their 
90.12 	being cashed in a gambling establishment.

90.13 	Sec. 83. Minnesota Statutes 2022, section 256.986, is amended to read:
90.14 	256.986 COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.
90.15 	(a) The county agency shall prepare and submit to the commissioner commissioners of 
90.16 	human services and children, youth, and families by April 30 of each state fiscal year a plan 
90.17 	to coordinate county duties related to the prevention, investigation, and prosecution of fraud 
90.18 	in public assistance programs. Each county must submit its first annual plan prior to April 
90.19 	30, 1998.
90.20 	(b) Within the limits of appropriations specifically made available for this purpose, the 
90.21 	commissioner commissioners may make grants to counties submitting plans under paragraph 
90.22 	(a) to implement coordination activities.

90.23 	Sec. 84. Minnesota Statutes 2022, section 256.9861, is amended to read:
90.24 	256.9861 FRAUD CONTROL; PROGRAM INTEGRITY REINVESTMENT 
90.25 	PROJECT.
90.26 		Subdivision 1.Program established. Within the limits of available state and federal 
90.27 	appropriations, the commissioner commissioners of human services and children, youth, 
90.28 	and families shall make funding available to county agencies for fraud control efforts and 
90.29 	require the maintenance of county efforts and financial contributions that were in place 
90.30 	during fiscal year 1996.
90.31 		Subd. 2.County proposals. Each included county shall develop and submit annual 
90.32 	funding, staffing, and operating grant proposals to the commissioner commissioners no later 
91.1 	than April 30 of each year for the purpose of allocating federal and state funding and 
91.2 	appropriations. Each proposal shall provide information on:
91.3 	(1) the staffing and funding of the fraud investigation and prosecution operations;
91.4 	(2) job descriptions for agency fraud control staff;
91.5 	(3) contracts covering outside investigative agencies;
91.6 	(4) operational methods to integrate the use of fraud prevention investigation techniques; 
91.7 	and
91.8 	(5) implementation and utilization of administrative disqualification hearings and 
91.9 	diversions by the existing county fraud control and prosecution procedures.
91.10 		Subd. 3.Department responsibilities. The commissioner commissioners shall provide 
91.11 	written instructions outlining the contents of the proposals to be submitted under this section. 
91.12 	Instructions shall be made available 30 days prior to the date by which proposals under 
91.13 	subdivision 2 must be submitted. The commissioner commissioners shall establish training 
91.14 	programs which shall be attended by fraud control staff of all involved counties. The 
91.15 	commissioner commissioners shall also develop the necessary operational guidelines, forms, 
91.16 	and reporting mechanisms which shall be used by the involved counties.
91.17 		Subd. 4.Standards. The commissioner commissioners shall, after consultation with the 
91.18 	involved counties, establish standards governing the performance levels of county 
91.19 	investigative units based on grant agreements with the county agencies. The standards shall 
91.20 	take into consideration and may include investigative caseloads, grant savings levels, the 
91.21 	comparison of fraud prevention and prosecution directed investigations, utilization levels 
91.22 	of administrative disqualification hearings, the timely reporting and implementation of 
91.23 	disqualifications, and the timeliness of the submission of statistical reports.
91.24 		Subd. 5.Funding. (a) State funding shall be made available contingent on counties 
91.25 	submitting a plan that is approved by the Department Departments of Human Services and 
91.26 	Children, Youth, and Families. Failure or delay in obtaining that approval shall not, however, 
91.27 	eliminate the obligation to maintain fraud control efforts at the June 30, 1996, level. County 
91.28 	agency reimbursement shall be made through the settlement provisions applicable to the 
91.29 	MFIP, Supplemental Nutrition Assistance Program (SNAP), and medical assistance program.
91.30 	(b) Should a county agency fail to comply with the standards set, or fail to meet 
91.31 	cost-effectiveness standards developed by the commissioner commissioners for any 
91.32 	three-month period, the commissioner commissioners shall deny reimbursement or 
91.33 	administrative costs, after allowing an opportunity to establish compliance.
92.1 	(c) Any denial of reimbursement under paragraph (b) is contingent on the commissioner
92.2 	commissioners providing written notice, including an offer of technical assistance, within 
92.3 	30 days of the end of the third or subsequent months of noncompliance. The county agency 
92.4 	shall be required to submit a corrective action plan to the commissioner commissioners
92.5 	within 30 days of receipt of a notice of noncompliance. Failure to submit a corrective action 
92.6 	plan or continued deviation from standards of more than ten percent after submission of 
92.7 	corrective action plan, will result in denial of funding for each such month during the grant 
92.8 	year, or billing of the county agency for program integrity reinvestment project services 
92.9 	provided by the commissioner commissioners or reallocation of grant funds to other counties. 
92.10 	The denial of funding shall apply to the general settlement received by the county agency 
92.11 	on a quarterly basis and shall not reduce the grant amount applicable to the program integrity 
92.12 	reinvestment project.

92.13 	Sec. 85. Minnesota Statutes 2022, section 256.987, subdivision 1, is amended to read:
92.14 		Subdivision 1.Electronic benefit transfer (EBT) card. Cash benefits for the general 
92.15 	assistance and Minnesota supplemental aid programs under chapter 256D and programs 
92.16 	under chapter 256J must be issued on an EBT card with the name of the head of household 
92.17 	printed on the card. The card must include the following statement: "It is unlawful to use 
92.18 	this card to purchase tobacco products or alcoholic beverages." This card must be issued 
92.19 	within 30 calendar days of an eligibility determination. During the initial 30 calendar days 
92.20 	of eligibility, a recipient may have cash benefits issued on an EBT card without a name 
92.21 	printed on the card. This card may be the same card on which Supplemental Nutrition 
92.22 	Assistance Program (SNAP) benefits are issued and does not need to meet the requirements 
92.23 	of this section. that meets the requirements in section 142A.13.

92.24 	Sec. 86. Minnesota Statutes 2022, section 256.998, subdivision 7, is amended to read:
92.25 		Subd. 7.Access to data. The commissioner of human services shall retain the information 
92.26 	reported to the work reporting system for a period of six months. Data in the work reporting 
92.27 	system may be disclosed to the commissioner of children, youth, and families; the public 
92.28 	authority responsible for child support enforcement,; federal agencies,; state and local 
92.29 	agencies of other states for the purposes of enforcing state and federal laws governing child 
92.30 	support,; and agencies responsible for the administration of programs under title IV-A of 
92.31 	the Social Security Act, the Department of Employment and Economic Development, and 
92.32 	the Department of Labor and Industry.

93.1 	Sec. 87. Minnesota Statutes 2022, section 256E.21, subdivision 1, is amended to read:
93.2 		Subdivision 1.Applicability. The definitions in this section apply to Laws 1986, chapter 
93.3 	423, sections 1 to 9 sections 142A.41 to 142A.416 and 144.226, subdivision 3.

93.4 	Sec. 88. Minnesota Statutes 2022, section 256E.22, subdivision 7, is amended to read:
93.5 		Subd. 7.Responsibilities of commissioner. (a) The commissioner shall:
93.6 	(1) provide for the coordination and exchange of information on the establishment and 
93.7 	maintenance of prevention programs;
93.8 	(2) develop and publish criteria for receiving trust fund money by prevention programs;
93.9 	(3) review, approve, and monitor the spending of trust fund money by prevention 
93.10 	programs;
93.11 	(4) provide statewide educational and public informational seminars to develop public 
93.12 	awareness on preventing child abuse; to encourage professional persons and groups to 
93.13 	recognize instances of child abuse and work to prevent them; to make information on child 
93.14 	abuse prevention available to the public and to organizations and agencies; and to encourage 
93.15 	the development of prevention programs, including programs that provide support for 
93.16 	adolescent parents, fathering education programs, and other prevention activities designed 
93.17 	to prevent teen pregnancy;
93.18 	(5) establish a procedure for an annual, internal evaluation of the functions, 
93.19 	responsibilities, and performance of the commissioner in carrying out Laws 1986, chapter 
93.20 	423 sections 142A.41 to 142A.416 and 144.226, subdivision 3;
93.21 	(6) provide technical assistance to local councils and agencies working in the area of 
93.22 	child abuse prevention; and
93.23 	(7) accept and review grant applications beginning June 1, 1987.
93.24 	(b) The commissioner shall recommend to the governor changes in state programs, 
93.25 	statutes, policies, budgets, and standards that will reduce the problems of child abuse, 
93.26 	improve coordination among state agencies that provide prevention services, and improve 
93.27 	the condition of children, parents, or guardians in need of prevention program services.

94.1 	Sec. 89. Minnesota Statutes 2022, section 256E.24, is amended to read:
94.2 	256E.24 LOCAL CHILD ABUSE PREVENTION COUNCILS.
94.3 	A child abuse prevention council may be established in any county or group of counties 
94.4 	that was eligible to receive funds under Minnesota Statutes 1986, section 145.917 as of 
94.5 	January 1, 1986. A council organized in such a county or group of counties shall be 
94.6 	authorized by the commissioner to review programs seeking trust fund money on finding 
94.7 	that the council meets the criteria in this section:
94.8 	(a) The council has submitted a plan for the prevention of child abuse that includes a 
94.9 	rank ordering of needed programs and services, assesses the need for additional programs 
94.10 	or services, and demonstrates that standards and procedures have been established to ensure 
94.11 	that funds will be distributed and used according to Laws 1986, chapter 423 sections 142A.41 
94.12 	to 142A.416 and 144.226, subdivision 3.
94.13 	(b) A single-county council shall consist of:
94.14 	(1) a minimum of nine members with the majority consisting of members from the 
94.15 	community-at-large who do not represent service-providing agencies. These members shall 
94.16 	represent the demographic and geographic composition of the county and, to the extent 
94.17 	possible, represent the following groups: parents, businesses, racial and ethnic minority 
94.18 	communities, and the faith communities; and
94.19 	(2) if necessary, enough additional members with knowledge in the area of child abuse 
94.20 	prevention so that a majority of the council is composed of members who do not represent 
94.21 	public agencies.
94.22 	(c) A multicounty council shall be composed of the combined membership of persons 
94.23 	in paragraph (b).

94.24 	Sec. 90. Minnesota Statutes 2022, section 256E.25, subdivision 5, is amended to read:
94.25 		Subd. 5.Local council as recipient of funds. The commissioner may disburse funds 
94.26 	to a local council for community education purposes, or for administrative costs in carrying 
94.27 	out Laws 1986, chapter 423 sections 142A.41 to 142A.416 and 144.226, subdivision 3, if 
94.28 	all criteria and standards are met.

94.29 	Sec. 91. Minnesota Statutes 2022, section 256E.25, subdivision 6, is amended to read:
94.30 		Subd. 6.Contracts. The commissioner shall use state or local resources and staff if 
94.31 	practicable, but may enter into contracts with public or nonprofit private agencies to fulfill 
95.1 	the requirements of Laws 1986, chapter 423 sections 142A.41 to 142A.416 and 144.226, 
95.2 	subdivision 3.

95.3 	Sec. 92. Minnesota Statutes 2022, section 256E.25, subdivision 7, is amended to read:
95.4 		Subd. 7.Rules. The commissioner may adopt rules to carry out Laws 1986, chapter 423
95.5 	sections 142A.41 to 142A.416 and 144.226, subdivision 3.

95.6 	Sec. 93. Minnesota Statutes 2022, section 256E.26, is amended to read:
95.7 	256E.26 ACCEPTANCE OF FEDERAL FUNDS AND OTHER DONATIONS.
95.8 	The commissioner may accept federal money and gifts, donations, and bequests for the 
95.9 	purposes of Laws 1986, chapter 423 sections 142A.41 to 142A.416 and 144.226, subdivision 
95.10 	3. Money so received and proceeds from the sale of promotional items, minus sales 
95.11 	promotional costs, must be deposited in the trust fund and must be made available to the 
95.12 	commissioner.

95.13 	Sec. 94. Minnesota Statutes 2022, section 256E.27, is amended to read:
95.14 	256E.27 ANNUAL APPROPRIATION.
95.15 	All earnings from trust fund assets, all sums received under section 256E.26, and 60 
95.16 	percent of the amount collected under section 144.226, subdivision 3, are appropriated 
95.17 	annually from the children's trust fund for the prevention of child abuse to the commissioner 
95.18 	of human services to carry out sections 256E.20 to 256E.26. In fiscal year 1987 only, the 
95.19 	first $75,000 collected under section 144.226, subdivision 3, is appropriated from the 
95.20 	children's trust fund for the prevention of child abuse to the commissioner of human services 
95.21 	to carry out sections 256E.20 to 256E.26.

95.22 	Sec. 95. Minnesota Statutes 2022, section 299A.72, is amended to read:
95.23 	299A.72 JUVENILE JUSTICE PROGRAM.
95.24 	The governor shall designate the Department of Public Safety Children, Youth, and 
95.25 	Families as the sole agency responsible for supervising the preparation and administration 
95.26 	of the state plan for juvenile justice required by the Juvenile Justice and Delinquency 
95.27 	Prevention Act of 1974, as amended.
95.28 	The governor shall designate the Juvenile Justice Advisory Committee as the supervisory 
95.29 	board for the Department of Public Safety Children, Youth, and Families with respect to 
95.30 	preparation and administration of the state plan and award of grants.
96.1 	The governor shall appoint members to the Juvenile Justice Advisory Committee in 
96.2 	accordance with the membership requirements of the Juvenile Justice and Delinquency 
96.3 	Prevention Act of 1974, as amended. Section 15.059, subdivision 3, governs the 
96.4 	compensation of the members.

96.5 	Sec. 96. REVISOR INSTRUCTION.
 96.6 	The revisor of statutes must renumber sections or subdivisions in Column A as Column 
96.7 	B.

96.8		Column A
	Column B
	
96.9		256.01, subdivision 12
	142A.03, subdivision 7
	
96.10		256.01, subdivision 12a
	142A.03, subdivision 8
	
96.11		256.01, subdivision 15
	142A.03, subdivision 10
	
96.12		256.01, subdivision 36
	142A.03, subdivision 22
	
96.13		256.0112, subdivision 10
	142A.07, subdivision 8
	
96.14		256.019, subdivision 2
	142A.28, subdivision 2
	
96.15		256.4793
	142A.45
	
96.16		256.4794
	142A.451
	
96.17		256.82
	142A.418
	
96.18		256.9831
	142A.13, subdivision 14
	
96.19		256.9862, subdivision 1
	142A.13, subdivision 10
	
96.20		256.9862, subdivision 2
	142A.13, subdivision 11
	
96.21		256.9863
	142A.13, subdivision 5
	
96.22		256.9865, subdivision 1
	142A.13, subdivision 6
	
96.23		256.9865, subdivision 2
	142A.13, subdivision 7
	
96.24		256.9865, subdivision 3
	142A.13, subdivision 8
	
96.25		256.9865, subdivision 4
	142A.13, subdivision 9
	
96.26		256.987, subdivision 2
	142A.13, subdivision 2
	
96.27		256.987, subdivision 3
	142A.13, subdivision 3
	
96.28		256.987, subdivision 4
	142A.13, subdivision 4
	
96.29		256.9871
	142A.13, subdivision 12
	
96.30		256.9872
	142A.13, subdivision 13
	
96.31		256.997
	142A.30
	
96.32		256.998
	142A.29
	
96.33		256B.06, subdivision 6
	142A.40
	
96.34		256E.20
	142A.41
	
96.35		256E.21
	142A.411
	
96.36		256E.22
	142A.412
	
97.1		256E.24
	142A.413
	
97.2		256E.25
	142A.414
	
97.3		256E.26
	142A.415
	
97.4		256E.27
	142A.416
	
97.5		256E.28
	142A.417
	
97.6		256N.001
	142A.60
	
97.7		256N.01
	142A.601
	
97.8		256N.02
	142A.602
	
97.9		256N.20
	142A.603
	
97.10		256N.21
	142A.604
	
97.11		256N.22
	142A.605
	
97.12		256N.23
	142A.606
	
97.13		256N.24
	142A.607
	
97.14		256N.25
	142A.608
	
97.15		256N.26
	142A.609
	
97.16		256N.261
	142A.61
	
97.17		256N.27
	142A.611
	
97.18		256N.28
	142A.612
	
97.19		257.175
	142A.03, subdivision 32
	
97.20		257.33, subdivision 1
	142A.03, subdivision 33
	
97.21		257.33, subdivision 2
	142A.03, subdivision 34
	
97.22		260.014
	142A.452
	
97.23		299A.72
	142A.75
	
97.24		299A.73
	142A.43
	
97.25		299A.95
	142A.76
	
97.26 	The revisor of statutes must correct any statutory cross-references consistent with this 
97.27 	renumbering.

97.28 	Sec. 97. REPEALER.
 97.29 	Minnesota Statutes 2022, sections 256.01, subdivision 30; and 256.9831, subdivisions 
97.30 	2 and 3, are repealed.

98.1 	ARTICLE 2
98.2 	CHAPTER 142B; LICENSING

98.3 	Section 1. [142B.01] DEFINITIONS.
98.4 		Subdivision 1.Scope. The terms used in this chapter have the meanings given them in 
98.5 	this section.
98.6 		Subd. 2.Annual or annually. With the exception of subdivision 3, "annual" or "annually" 
98.7 	means prior to or within the same month of the subsequent calendar year.
98.8 		Subd. 3.Applicant. "Applicant" means an individual, organization, or government 
98.9 	entity, as defined in section 13.02, subdivision 7a, that is subject to licensure under this 
98.10 	chapter and that has applied for but not yet been granted a license under this chapter.
98.11 		Subd. 4.Authorized agent. "Authorized agent" means the controlling individual 
98.12 	designated by the license holder responsible for communicating with the commissioner of 
98.13 	children, youth, and families on all matters related to this chapter and on whom service of 
98.14 	all notices and orders must be made pursuant to section 142B.10, subdivision 1.
98.15 		Subd. 5.Child. "Child" means a person who has not reached age 18.
98.16 		Subd. 6.Commissioner. "Commissioner" means the commissioner of children, youth, 
98.17 	and families or the commissioner's designated representative including county agencies and 
98.18 	private agencies.
98.19 		Subd. 7.Controlling individual. (a) "Controlling individual" means an owner of a 
98.20 	program or service provider licensed under this chapter and the following individuals, if 
98.21 	applicable:
98.22 	(1) each officer of the organization, including the chief executive officer and chief 
98.23 	financial officer;
98.24 	(2) the individual designated as the authorized agent under section 142B.10, subdivision 
98.25 	1, paragraph (b);
98.26 	(3) the individual designated as the compliance officer under section 256B.04, subdivision 
98.27 	21, paragraph (g);
98.28 	(4) each managerial official whose responsibilities include the direction of the 
98.29 	management or policies of a program;
98.30 	(5) the individual designated as the primary provider of care for a special family child 
98.31 	care program under section 142B.41, subdivision 4, paragraph (d); and
99.1 	(6) the president and treasurer of the board of directors of a nonprofit corporation.
99.2 	(b) Controlling individual does not include:
99.3 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
99.4 	loan and thrift company, investment banking firm, or insurance company unless the entity 
99.5 	operates a program directly or through a subsidiary;
99.6 	(2) an individual who is a state or federal official, or state or federal employee, or a 
99.7 	member or employee of the governing body of a political subdivision of the state or federal 
99.8 	government that operates one or more programs, unless the individual is also an officer, 
99.9 	owner, or managerial official of the program, receives remuneration from the program, or 
99.10 	owns any of the beneficial interests not excluded in this subdivision;
99.11 	(3) an individual who owns less than five percent of the outstanding common shares of 
99.12 	a corporation:
99.13 	(i) whose securities are exempt under section 80A.45, clause (6); or
99.14 	(ii) whose transactions are exempt under section 80A.46, clause (2);
99.15 	(4) an individual who is a member of an organization exempt from taxation under section 
99.16 	290.05, unless the individual is also an officer, owner, or managerial official of the program 
99.17 	or owns any of the beneficial interests not excluded in this subdivision. This clause does 
99.18 	not exclude from the definition of controlling individual an organization that is exempt from 
99.19 	taxation; or
99.20 	(5) an employee stock ownership plan trust, or a participant or board member of an 
99.21 	employee stock ownership plan, unless the participant or board member is a controlling 
99.22 	individual according to paragraph (a).
99.23 	(c) For purposes of this subdivision, "managerial official" means an individual who has 
99.24 	the decision-making authority related to the operation of the program, and the responsibility 
99.25 	for the ongoing management of or direction of the policies, services, or employees of the 
99.26 	program. A site director who has no ownership interest in the program is not considered to 
99.27 	be a managerial official for purposes of this definition.
99.28 		Subd. 8.County agency. "County agency" means the agency designated by the county 
99.29 	board of commissioners, human service boards, local social services agencies or multicounty 
99.30 	local social services agencies, or departments where those have been established under the 
99.31 	law.
100.1 		Subd. 9.Cradleboard. "Cradleboard" means a board or frame on which an infant is 
100.2 	secured using blankets or other material, such as fabric or leather sides, and laces and often 
100.3 	has a frame extending to protect the infant's head. The infant is always placed with the 
100.4 	infant's head facing outward, and the infant remains supervised in the cradleboard while 
100.5 	sleeping or being carried.
100.6 		Subd. 10.Foster family setting. "Foster family setting" has the meaning given in 
100.7 	Minnesota Rules, part 2960.3010, subpart 23, and includes settings licensed by the 
100.8 	commissioner of children, youth, and families or the commissioner of corrections.
100.9 		Subd. 11.Foster residence setting. "Foster residence setting" has the meaning given 
100.10 	in Minnesota Rules, part 2960.3010, subpart 26, and includes settings licensed by the 
100.11 	commissioner of children, youth, and families or the commissioner of corrections.
100.12 		Subd. 12.Individual who is related. "Individual who is related" means a spouse, a 
100.13 	parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece, 
100.14 	a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle, or a legal guardian.
100.15 		Subd. 13.License. "License" means a certificate issued by the commissioner under 
100.16 	section 142B.10 authorizing the license holder to provide a specified program for a specified 
100.17 	period of time and in accordance with the terms of the license and the rules of the 
100.18 	commissioner.
100.19 		Subd. 14.License holder. "License holder" means an individual, organization, or 
100.20 	government entity that is legally responsible for the operation of the program or service, 
100.21 	and has been granted a license by the commissioner under this chapter and the rules of the 
100.22 	commissioner.
100.23 		Subd. 15.Nonresidential program. "Nonresidential program" means care, supervision, 
100.24 	rehabilitation, training, or habilitation of a child provided outside the child's home and 
100.25 	provided for fewer than 24 hours a day, including child care programs.
100.26 		Subd. 16.Owner. "Owner" means an individual or organization that has a direct or 
100.27 	indirect ownership interest of five percent or more in a program licensed under this chapter. 
100.28 	For purposes of this subdivision, "direct ownership interest" means the possession of equity 
100.29 	in capital, stock, or profits of an organization, and "indirect ownership interest" means a 
100.30 	direct ownership interest in an entity that has a direct or indirect ownership interest in a 
100.31 	licensed program. For purposes of this chapter, "owner of an employee stock ownership 
100.32 	plan" means the president and treasurer of the entity. A government entity or nonprofit 
100.33 	corporation that is issued a license under this chapter shall be designated the owner.
101.1 		Subd. 17.Organization. "Organization" means a domestic or foreign corporation, 
101.2 	nonprofit corporation, limited liability company, partnership, limited partnership, limited 
101.3 	liability partnership, association, voluntary association, and any other legal or commercial 
101.4 	entity. For purposes of this chapter, organization does not include a government entity.
101.5 		Subd. 18.Residential program. "Residential program" means a program that provides 
101.6 	24-hour-a-day care, supervision, food, or lodging to a child or youth outside of the child or 
101.7 	youth's home, including foster care.
101.8 		Subd. 19.Respite care services. "Respite care services" means temporary services 
101.9 	provided to a person due to the absence or need for relief of the primary caregiver, the 
101.10 	person's family member, or legal representative who is the primary caregiver and principally 
101.11 	responsible for the care and supervision of the person. Respite care services are those that 
101.12 	provide the level of supervision and care that is necessary to ensure the health and safety 
101.13 	of the person. Respite care services do not include services that are specifically directed 
101.14 	toward the training and habilitation of the person.
101.15 		Subd. 20.Youth. "Youth" means a child as defined in section 260C.007, subdivision 4, 
101.16 	and includes individuals under 21 years of age who are in foster care pursuant to section 
101.17 	260C.451.

101.18 	Sec. 2. [142B.02] RULES.
101.19 		Subdivision 1.Commissioner's authority. The commissioner shall adopt rules under 
101.20 	chapter 14 to govern the operation, maintenance, and licensure of programs subject to 
101.21 	licensure under this chapter. The commissioner shall not adopt any rules that are inconsistent 
101.22 	with or duplicative of existing state or federal regulations. Nothing in this subdivision shall 
101.23 	be construed to prohibit the commissioner from incorporating existing state or federal 
101.24 	regulations or accreditation standards by reference.
101.25 		Subd. 2.Standards and regulatory methods. This subdivision applies to rules governing 
101.26 	this chapter. As appropriate for each type of license:
101.27 	(a) The commissioner shall give preference in rule to standards that describe program 
101.28 	outcomes and the practices that have been shown to result in the desired program outcomes.
101.29 	(b) The rules may include model program standards for each type of program licensed 
101.30 	by the commissioner.
101.31 	(c) The rules shall include basic licensing standards governing licensure of each type of 
101.32 	program licensed by the commissioner. The basic licensing standards must be met by all 
102.1 	applicants and license holders. Basic licensing standards must include, but are not limited 
102.2 	to:
102.3 	(1) standards for adequate staff that take into account the age distribution and severity 
102.4 	of the disability of persons served by the program;
102.5 	(2) safety standards that take into account the size and conditions of the physical plant 
102.6 	and studies of fire safety including studies of the interaction between fire detection factors, 
102.7 	fire spread factors, and evacuation factors in case of a fire;
102.8 	(3) standards for program services that describe, when appropriate, adequate levels of 
102.9 	shelter, nutrition, planned activities, materials, and qualifications of individuals responsible 
102.10 	for administering and delivering program services;
102.11 	(4) standards that describe the characteristics of the settings where program services are 
102.12 	to be delivered; and
102.13 	(5) health and sanitation standards.
102.14 		Subd. 3.Reduction of fees. The commissioner may adopt rules under subdivision 1 to 
102.15 	provide for the reduction of fees established under section 142B.12 when a license holder 
102.16 	substantially exceeds the basic standards for licensure.
102.17 		Subd. 4.Evaluation of rules. The commissioner shall evaluate the effects of the rules 
102.18 	within three years after the date of adoption and at least once every five years thereafter. 
102.19 	The evaluation must include an assessment of any discrepancies between the actual and 
102.20 	intended effects of the rules, identification of necessary revisions, if any, and a discussion 
102.21 	of the rules' effect on the availability and quality of licensed programs. The commissioner 
102.22 	shall consider the results of the evaluation in amending and writing rules.
102.23 		Subd. 5.Other duties of commissioner. The commissioner shall:
102.24 	(1) summarize the rules in language understandable to the general public and inform 
102.25 	license holders and applicants where they may obtain a copy of the rules and the summary;
102.26 	(2) develop and provide each applicant with information describing the services offered 
102.27 	to applicants by the commissioner and explaining the penalties for operating an unlicensed 
102.28 	program or failing to fully comply with the commissioner's correction orders or applicable 
102.29 	laws or rules;
102.30 	(3) upon request, interpret rules for applicants and license holders; and
102.31 	(4) take measures to ensure that rules are enforced uniformly throughout the state.
103.1 		Subd. 6.Consultation with affected parties. In developing rules, the commissioner 
103.2 	shall request and receive consultation from: other state departments and agencies; counties 
103.3 	and other affected political subdivisions that reflect the diversity of political subdivisions 
103.4 	affected by the rule; persons and relatives of persons using the program governed by the 
103.5 	rule; advocacy groups; and representatives of license holders affected by the rule. In choosing 
103.6 	parties for consultation, the commissioner shall choose individuals and representatives of 
103.7 	groups that reflect a cross section of urban, suburban, and rural areas of the state.
103.8 		Subd. 7.Regulatory methods. (a) Where appropriate and feasible, the commissioner 
103.9 	shall identify and implement alternative methods of regulation and enforcement to the extent 
103.10 	authorized in this subdivision. These methods shall include:
103.11 	(1) expansion of the types and categories of licenses that may be granted;
103.12 	(2) when the standards of another state or federal governmental agency or an independent 
103.13 	accreditation body have been shown to require the same standards, methods, or alternative 
103.14 	methods to achieve substantially the same intended outcomes as the licensing standards, 
103.15 	the commissioner shall consider compliance with the governmental or accreditation standards 
103.16 	to be equivalent to partial compliance with the licensing standards; and
103.17 	(3) use of an abbreviated inspection that employs key standards that have been shown 
103.18 	to predict full compliance with the rules.
103.19 	(b) If the commissioner accepts accreditation as documentation of compliance with a 
103.20 	licensing standard under paragraph (a), the commissioner shall continue to investigate 
103.21 	complaints related to noncompliance with all licensing standards. The commissioner may 
103.22 	take a licensing action for noncompliance under this chapter and shall recognize all existing 
103.23 	appeal rights regarding any licensing actions taken under this chapter.
103.24 	(c) The commissioner shall work with the commissioners of human services, health, 
103.25 	public safety, administration, and education in consolidating duplicative licensing and 
103.26 	certification rules and standards if the commissioner determines that consolidation is 
103.27 	administratively feasible, would significantly reduce the cost of licensing, and would not 
103.28 	reduce the protection given to persons receiving services in licensed programs. Where 
103.29 	administratively feasible and appropriate, the commissioner shall work with the 
103.30 	commissioners of human services, health, public safety, administration, and education in 
103.31 	conducting joint agency inspections of programs.
103.32 	(d) The commissioner shall work with the commissioners of human services, health, 
103.33 	public safety, administration, and education in establishing a single point of application for 
104.1 	applicants who are required to obtain concurrent licensure from more than one of the 
104.2 	commissioners listed in this paragraph.
104.3 	(e) Unless otherwise specified in statute, the commissioner may conduct routine 
104.4 	inspections biennially.
104.5 	(f) For a licensed child care center, the commissioner shall conduct one unannounced 
104.6 	licensing inspection at least once per calendar year.
104.7 		Subd. 8.Interpretive guidelines; authority. The commissioner of children, youth, and 
104.8 	families may develop and publish interpretive guidelines.
104.9 		Subd. 9.Effect of interpretive guidelines. Interpretive guidelines do not have the force 
104.10 	and effect of law and have no precedential effect, but may be relied on by consumers, 
104.11 	providers of service, county agencies, the Department of Children, Youth, and Families, 
104.12 	and others concerned until revoked or modified. A guideline may be expressly revoked or 
104.13 	modified by the commissioner, by the issuance of another interpretive guideline, but may 
104.14 	not be revoked or modified retroactively to the detriment of consumers, providers of service, 
104.15 	county agencies, the Department of Children, Youth, and Families, or others concerned. A 
104.16 	change in the law or an interpretation of the law occurring after the interpretive guidelines 
104.17 	are issued, whether in the form of a statute, court decision, administrative ruling, or 
104.18 	subsequent interpretive guideline, results in the revocation or modification of the previously 
104.19 	adopted guidelines to the extent that the change affects the guidelines.
104.20 		Subd. 10.Issuance; discretion of commissioner. The issuance of interpretive guidelines 
104.21 	is at the discretion of the commissioner of children, youth, and families.

104.22 	Sec. 3. [142B.03] SYSTEMS AND RECORDS.
104.23 		Subdivision 1.Record retention; license holder requirements. (a) A license holder 
104.24 	must maintain and store records in a manner that will allow for review by the commissioner 
104.25 	as identified in section 142B.10, subdivision 5. The following records must be maintained 
104.26 	as specified and in accordance with applicable state or federal law, regulation, or rule:
104.27 	(1) service recipient records, including verification of service delivery, must be maintained 
104.28 	for a minimum of five years following discharge or termination of service;
104.29 	(2) personnel records must be maintained for a minimum of five years following 
104.30 	termination of employment; and
104.31 	(3) program administration and financial records must be maintained for a minimum of 
104.32 	five years from the date the program closes.
105.1 	(b) A license holder who ceases to provide services must maintain all records related to 
105.2 	the licensed program for five years from the date the program closes. The license holder 
105.3 	must notify the commissioner of the location where the licensing records will be stored and 
105.4 	the name of the person responsible for maintaining the stored records.
105.5 	(c) If the ownership of a licensed program or service changes, the transferor, unless 
105.6 	otherwise provided by law or written agreement with the transferee, is responsible for 
105.7 	maintaining, preserving, and making available to the commissioner on demand the license 
105.8 	records generated before the date of the transfer.
105.9 	(d) In the event of a contested case, the license holder must retain records as required 
105.10 	in paragraph (a) or until the final agency decision is issued and the conclusion of any related 
105.11 	appeal, whichever period is longer.
105.12 		Subd. 2.Electronic records; license holder use. A license holder's use of electronic 
105.13 	record keeping or electronic signatures must meet the following requirements:
105.14 	(1) use of electronic record keeping or electronic signatures does not alter the license 
105.15 	holder's obligations under state or federal law, regulation, or rule;
105.16 	(2) the license holder must ensure that the use of electronic record keeping does not limit 
105.17 	the commissioner's access to records as specified under section 142B.10, subdivision 5;
105.18 	(3) upon request, the license holder must assist the commissioner in accessing and 
105.19 	copying all records, including encrypted records and electronic signatures; and
105.20 	(4) the license holder must establish a mechanism or procedure to ensure that:
105.21 	(i) the act of creating the electronic record or signature is attributable to the license 
105.22 	holder, according to section 325L.09;
105.23 	(ii) the electronic records and signatures are maintained in a form capable of being 
105.24 	retained and accurately reproduced;
105.25 	(iii) the commissioner has access to information that establishes the date and time that 
105.26 	data and signatures were entered into the electronic record; and
105.27 	(iv) the license holder's use of electronic record keeping or electronic signatures does 
105.28 	not compromise the security of the records.
105.29 		Subd. 3.First date of working in a setting; documentation requirements. Foster 
105.30 	residence setting license holders must document the first date that a person who is a 
105.31 	background study subject begins working in the license holder's setting. If the license holder 
105.32 	does not maintain documentation of each background study subject's first date of working 
106.1 	in the setting in the license holder's personnel files, the license holder must provide 
106.2 	documentation to the commissioner that contains the first date that each background study 
106.3 	subject began working in the license holder's program upon the commissioner's request.
106.4 		Subd. 4.First date of direct contact; documentation requirements. Except for family 
106.5 	child care and family foster care for children, license holders must document the first date 
106.6 	that a background study subject has direct contact, as defined in section 245C.02, subdivision 
106.7 	11, with a person served by the license holder's program. Unless this chapter otherwise 
106.8 	requires, if the license holder does not maintain the documentation required by this 
106.9 	subdivision in the license holder's personnel files, the license holder must provide the 
106.10 	documentation to the commissioner upon the commissioner's request.

106.11 	Sec. 4. [142B.05] WHO MUST BE LICENSED.
106.12 		Subdivision 1.License required. Unless licensed by the commissioner under this chapter, 
106.13 	an individual, organization, or government entity must not:
106.14 	(1) operate a residential or a nonresidential program;
106.15 	(2) receive a child or youth for care, supervision, or placement in foster care or adoption;
106.16 	(3) help plan the placement of a child or youth in foster care or adoption or engage in 
106.17 	placement activities as defined in section 259.21, subdivision 9, in this state, whether or not 
106.18 	the adoption occurs in this state; or
106.19 	(4) advertise a residential or nonresidential program.
106.20 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
106.21 	(1) residential or nonresidential programs that are provided to a person by an individual 
106.22 	who is related unless the residential program is a child foster care placement made by a 
106.23 	local social services agency or a licensed child-placing agency, except as provided in 
106.24 	subdivision 3;
106.25 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
106.26 	a single related family;
106.27 	(3) programs operated by a public school for children 33 months or older;
106.28 	(4) nonresidential programs primarily for children that provide care or supervision for 
106.29 	periods of less than three hours a day while the child's parent or legal guardian is in the 
106.30 	same building as the nonresidential program or present within another building that is 
106.31 	directly contiguous to the building in which the nonresidential program is located;
107.1 	(5) homes providing programs for persons placed by a county or a licensed agency for 
107.2 	legal adoption, unless the adoption is not completed within two years;
107.3 	(6) programs licensed or certified by the commissioner of corrections;
107.4 	(7) recreation programs for children or adults that are operated or approved by a park 
107.5 	and recreation board whose primary purpose is to provide social and recreational activities;
107.6 	(8) programs operated by a school as defined in section 120A.22, subdivision 4; YMCA 
107.7 	as defined in section 315.44; YWCA as defined in section 315.44; or JCC as defined in 
107.8 	section 315.51, whose primary purpose is to provide child care or services to school-age 
107.9 	children;
107.10 	(9) Head Start nonresidential programs that operate for less than 45 days in each calendar 
107.11 	year;
107.12 	(10) programs for children such as scouting, boys clubs, girls clubs, and sports and art 
107.13 	programs, and nonresidential programs for children provided for a cumulative total of less 
107.14 	than 30 days in any 12-month period;
107.15 	(11) the religious instruction of school-age children; Sabbath or Sunday schools; or the 
107.16 	congregate care of children by a church, congregation, or religious society during the period 
107.17 	used by the church, congregation, or religious society for its regular worship;
107.18 	(12) camps licensed by the commissioner of health under Minnesota Rules, chapter 
107.19 	4630;
107.20 	(13) residential programs serving school-age children whose sole purpose is cultural or 
107.21 	educational exchange, until the commissioner adopts appropriate rules;
107.22 	(14) community support services programs as defined in section 245.462, subdivision 
107.23 	6, and family community support services as defined in section 245.4871, subdivision 17;
107.24 	(15) the placement of a child by a birth parent or legal guardian in a preadoptive home 
107.25 	for purposes of adoption as authorized by section 259.47;
107.26 	(16) a program serving only children who are age 33 months or older, that is operated 
107.27 	by a nonpublic school, for no more than four hours per day per child, with no more than 20 
107.28 	children at any one time, and that is accredited by:
107.29 	(i) an accrediting agency that is formally recognized by the commissioner of education 
107.30 	as a nonpublic school accrediting organization; or
107.31 	(ii) an accrediting agency that requires background studies and that receives and 
107.32 	investigates complaints about the services provided.
108.1 	A program that asserts its exemption from licensure under item (ii) shall, upon request from 
108.2 	the commissioner, provide the commissioner with documentation from the accrediting 
108.3 	agency that verifies that the accreditation is current, that the accrediting agency investigates 
108.4 	complaints about services, and that the accrediting agency's standards require background 
108.5 	studies on all people providing direct contact services;
108.6 	(17) a program operated by a nonprofit organization incorporated in Minnesota or another 
108.7 	state that serves youth in kindergarten through grade 12; provides structured, supervised 
108.8 	youth development activities; and has learning opportunities take place before or after 
108.9 	school, on weekends, or during the summer or other seasonal breaks in the school calendar. 
108.10 	A program exempt under this clause is not eligible for child care assistance under chapter 
108.11 	119B. A program exempt under this clause must:
108.12 	(i) have a director or supervisor on site who is responsible for overseeing written policies 
108.13 	relating to the management and control of the daily activities of the program, ensuring the 
108.14 	health and safety of program participants, and supervising staff and volunteers;
108.15 	(ii) have obtained written consent from a parent or legal guardian for each youth 
108.16 	participating in activities at the site; and
108.17 	(iii) have provided written notice to a parent or legal guardian for each youth at the site 
108.18 	that the program is not licensed or supervised by the state of Minnesota and is not eligible 
108.19 	to receive child care assistance payments;
108.20 	(18) Head Start programs that serve only children who are at least three years old but 
108.21 	not yet six years old; or
108.22 	(19) programs licensed by the commissioner of human services under chapter 245A.
108.23 	(b) For purposes of paragraph (a), clause (4), a building is directly contiguous to a 
108.24 	building in which a nonresidential program is located if it shares a common wall with the 
108.25 	building in which the nonresidential program is located or is attached to that building by 
108.26 	skyway, tunnel, atrium, or common roof.
108.27 	(c) Nothing in this chapter shall be construed to require licensure for any services 
108.28 	provided and funded according to an approved federal waiver plan where licensure is 
108.29 	specifically identified as not being a condition for the services and funding.
108.30 		Subd. 3.Unlicensed programs. (a) It is a misdemeanor for an individual, organization, 
108.31 	or government entity to provide a residential or nonresidential program without a license 
108.32 	issued under this chapter and in willful disregard of this chapter unless the program is 
108.33 	excluded from licensure under subdivision 2.
109.1 	(b) The commissioner may ask the appropriate county attorney or the attorney general 
109.2 	to begin proceedings to secure a court order against the continued operation of the program, 
109.3 	if an individual, organization, or government entity has:
109.4 	(1) failed to apply for a license under this chapter after receiving notice that a license is 
109.5 	required or continues to operate without a license after receiving notice that a license is 
109.6 	required;
109.7 	(2) continued to operate without a license after a license issued under this chapter has 
109.8 	been revoked or suspended under this chapter, and the commissioner has issued a final order 
109.9 	affirming the revocation or suspension, or the license holder did not timely appeal the 
109.10 	sanction; or
109.11 	(3) continued to operate without a license after a temporary immediate suspension of a 
109.12 	license has been issued under this chapter.
109.13 	(c) The county attorney and the attorney general have a duty to cooperate with the 
109.14 	commissioner.
109.15 		Subd. 4.Licensing moratorium. (a) The commissioner shall not issue an initial license 
109.16 	for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, under 
109.17 	this chapter for a physical location that will not be the primary residence of the license 
109.18 	holder for the entire period of licensure. If a family child foster care home license is issued 
109.19 	during this moratorium and the license holder changes the license holder's primary residence 
109.20 	away from the physical location of the foster care license, the commissioner shall revoke 
109.21 	the license according to section 142B.18. When approving an exception under this paragraph, 
109.22 	the commissioner shall consider the resource need determination process in paragraph (e), 
109.23 	the availability of foster care licensed beds in the geographic area in which the licensee 
109.24 	seeks to operate, the results of a person's choices during their annual assessment and service 
109.25 	plan review, and the recommendation of the local county board. The determination by the 
109.26 	commissioner is final and not subject to appeal. Exceptions to the moratorium include:
109.27 	(1) foster care licenses replacing foster care licenses in existence on May 15, 2009, and 
109.28 	determined to be needed by the commissioner under paragraph (b); and
109.29 	(2) new foster care licenses determined to be needed by the commissioner under paragraph 
109.30 	(b) for persons requiring hospital-level care.
109.31 	(b) The commissioner shall determine the need for newly licensed foster care homes. 
109.32 	As part of the determination, the commissioner shall consider the availability of foster care 
109.33 	capacity in the area in which the licensee seeks to operate, and the recommendation of the 
110.1 	local county board. The determination by the commissioner must be final. A determination 
110.2 	of need is not required for a change in ownership at the same address.
110.3 	(c) At the time of application and reapplication for licensure, the applicant and the license 
110.4 	holder that are subject to the moratorium or an exclusion established in paragraph (a) are 
110.5 	required to inform the commissioner whether the physical location where the foster care 
110.6 	will be provided is or will be the primary residence of the license holder for the entire period 
110.7 	of licensure. If the primary residence of the applicant or license holder changes, the applicant 
110.8 	or license holder must notify the commissioner immediately. The commissioner shall print 
110.9 	on the foster care license certificate whether or not the physical location is the primary 
110.10 	residence of the license holder.
110.11 	(d) License holders of foster care homes identified under paragraph (c) that are not the 
110.12 	primary residence of the license holder and that also provide services in the foster care home 
110.13 	that are covered by a federally approved home and community-based services waiver, as 
110.14 	authorized under chapter 256S or section 256B.092 or 256B.49, must inform the children, 
110.15 	youth, and families licensing division that the license holder provides or intends to provide 
110.16 	these waiver-funded services.
110.17 	(e) The commissioner may adjust capacity to address needs identified in section 
110.18 	144A.351. Under this authority, the commissioner may approve new licensed settings or 
110.19 	delicense existing settings. Delicensing of settings will be accomplished through a process 
110.20 	identified in section 256B.493.

110.21 	Sec. 5. [142B.10] APPLICATION PROCEDURES.
110.22 		Subdivision 1.Application for licensure. (a) An individual, organization, or government 
110.23 	entity that is subject to licensure under section 142B.05 must apply for a license. The 
110.24 	application must be made on the forms and in the manner prescribed by the commissioner. 
110.25 	The commissioner shall provide the applicant with instruction in completing the application 
110.26 	and provide information about the rules and requirements of other state agencies that affect 
110.27 	the applicant. An applicant seeking licensure in Minnesota with headquarters outside of 
110.28 	Minnesota must have a program office located within 30 miles of the Minnesota border. 
110.29 	An applicant who intends to buy or otherwise acquire a program or services licensed under 
110.30 	this chapter that is owned by another license holder must apply for a license under this 
110.31 	chapter and comply with the application procedures in this section and section 142B.11.
110.32 	The commissioner shall act on the application within 90 working days after a complete 
110.33 	application and any required reports have been received from other state agencies or 
110.34 	departments, counties, municipalities, or other political subdivisions. The commissioner 
111.1 	shall not consider an application to be complete until the commissioner receives all of the 
111.2 	required information.
111.3 	When the commissioner receives an application for initial licensure that is incomplete 
111.4 	because the applicant failed to submit required documents or that is substantially deficient 
111.5 	because the documents submitted do not meet licensing requirements, the commissioner 
111.6 	shall provide the applicant written notice that the application is incomplete or substantially 
111.7 	deficient. In the written notice to the applicant the commissioner shall identify documents 
111.8 	that are missing or deficient and give the applicant 45 days to resubmit a second application 
111.9 	that is substantially complete. An applicant's failure to submit a substantially complete 
111.10 	application after receiving notice from the commissioner is a basis for license denial under 
111.11 	section 142B.11.
111.12 	(b) An application for licensure must identify all controlling individuals as defined in 
111.13 	section 142B.01, subdivision 8, and must designate one individual to be the authorized 
111.14 	agent. The application must be signed by the authorized agent and must include the authorized 
111.15 	agent's first, middle, and last name; mailing address; and email address. By submitting an 
111.16 	application for licensure, the authorized agent consents to electronic communication with 
111.17 	the commissioner throughout the application process. The authorized agent must be 
111.18 	authorized to accept service on behalf of all of the controlling individuals. A government 
111.19 	entity that holds multiple licenses under this chapter may designate one authorized agent 
111.20 	for all licenses issued under this chapter or may designate a different authorized agent for 
111.21 	each license. Service on the authorized agent is service on all of the controlling individuals. 
111.22 	It is not a defense to any action arising under this chapter that service was not made on each 
111.23 	controlling individual. The designation of a controlling individual as the authorized agent 
111.24 	under this paragraph does not affect the legal responsibility of any other controlling individual 
111.25 	under this chapter.
111.26 	(c) An applicant or license holder must have a policy that prohibits license holders, 
111.27 	employees, subcontractors, and volunteers, when directly responsible for persons served 
111.28 	by the program, from abusing prescription medication or being in any manner under the 
111.29 	influence of a chemical that impairs the individual's ability to provide services or care. The 
111.30 	license holder must train employees, subcontractors, and volunteers about the program's 
111.31 	drug and alcohol policy.
111.32 	(d) An applicant and license holder must have a program grievance procedure that permits 
111.33 	persons served by the program and their authorized representatives to bring a grievance to 
111.34 	the highest level of authority in the program.
112.1 	(e) The commissioner may limit communication during the application process to the 
112.2 	authorized agent or the controlling individuals identified on the license application and for 
112.3 	whom a background study was initiated under chapter 245C. Upon implementation of the 
112.4 	provider licensing and reporting hub, applicants and license holders must use the hub in the 
112.5 	manner prescribed by the commissioner. The commissioner may require the applicant, 
112.6 	except for child foster care, to demonstrate competence in the applicable licensing 
112.7 	requirements by successfully completing a written examination. The commissioner may 
112.8 	develop a prescribed written examination format.
112.9 	(f) When an applicant is an individual, the applicant must provide:
112.10 	(1) the applicant's taxpayer identification numbers including the Social Security number 
112.11 	or Minnesota tax identification number, and federal employer identification number if the 
112.12 	applicant has employees;
112.13 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
112.14 	of state that includes the complete business name, if any;
112.15 	(3) if doing business under a different name, the doing business as (DBA) name, as 
112.16 	registered with the secretary of state;
112.17 	(4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique 
112.18 	Minnesota Provider Identifier (UMPI) number; and
112.19 	(5) at the request of the commissioner, the notarized signature of the applicant or 
112.20 	authorized agent.
112.21 	(g) When an applicant is an organization, the applicant must provide:
112.22 	(1) the applicant's taxpayer identification numbers including the Minnesota tax 
112.23 	identification number and federal employer identification number;
112.24 	(2) at the request of the commissioner, a copy of the most recent filing with the secretary 
112.25 	of state that includes the complete business name, and if doing business under a different 
112.26 	name, the doing business as (DBA) name, as registered with the secretary of state;
112.27 	(3) the first, middle, and last name, and address for all individuals who will be controlling 
112.28 	individuals, including all officers, owners, and managerial officials as defined in section 
112.29 	142B.01, subdivision 8, and the date that the background study was initiated by the applicant 
112.30 	for each controlling individual;
112.31 	(4) if applicable, the applicant's NPI number and UMPI number;
113.1 	(5) the documents that created the organization and that determine the organization's 
113.2 	internal governance and the relations among the persons that own the organization, have 
113.3 	an interest in the organization, or are members of the organization, in each case as provided 
113.4 	or authorized by the organization's governing statute, which may include a partnership 
113.5 	agreement, bylaws, articles of organization, organizational chart, and operating agreement, 
113.6 	or comparable documents as provided in the organization's governing statute; and
113.7 	(6) the notarized signature of the applicant or authorized agent.
113.8 	(h) When the applicant is a government entity, the applicant must provide:
113.9 	(1) the name of the government agency, political subdivision, or other unit of government 
113.10 	seeking the license and the name of the program or services that will be licensed;
113.11 	(2) the applicant's taxpayer identification numbers including the Minnesota tax 
113.12 	identification number and federal employer identification number;
113.13 	(3) a letter signed by the manager, administrator, or other executive of the government 
113.14 	entity authorizing the submission of the license application; and
113.15 	(4) if applicable, the applicant's NPI number and UMPI number.
113.16 	(i) At the time of application for licensure or renewal of a license under this chapter, the 
113.17 	applicant or license holder must acknowledge on the form provided by the commissioner 
113.18 	if the applicant or license holder elects to receive any public funding reimbursement from 
113.19 	the commissioner for services provided under the license that:
113.20 	(1) the applicant's or license holder's compliance with the provider enrollment agreement 
113.21 	or registration requirements for receipt of public funding may be monitored by the 
113.22 	commissioner as part of a licensing investigation or licensing inspection; and
113.23 	(2) noncompliance with the provider enrollment agreement or registration requirements 
113.24 	for receipt of public funding that is identified through a licensing investigation or licensing 
113.25 	inspection, or noncompliance with a licensing requirement that is a basis of enrollment for 
113.26 	reimbursement for a service, may result in:
113.27 	(i) a correction order or a conditional license under section 142B.16, or sanctions under 
113.28 	section 142B.18;
113.29 	(ii) nonpayment of claims submitted by the license holder for public program 
113.30 	reimbursement;
113.31 	(iii) recovery of payments made for the service;
113.32 	(iv) disenrollment in the public payment program; or
114.1 	(v) other administrative, civil, or criminal penalties as provided by law.
114.2 		Subd. 2.Notification of affected municipality. The commissioner must not issue a 
114.3 	license under this chapter without giving 30 calendar days' written notice to the affected 
114.4 	municipality or other political subdivision unless the program is considered a permitted 
114.5 	single-family residential use under sections 142B.40 and 142B.41. The commissioner may 
114.6 	provide notice through electronic communication. The notification must be given before 
114.7 	the first issuance of a license under this chapter and annually after that time if annual 
114.8 	notification is requested in writing by the affected municipality or other political subdivision. 
114.9 	State funds must not be made available to or be spent by an agency or department of state, 
114.10 	county, or municipal government for payment to a residential or nonresidential program 
114.11 	licensed under this chapter until the provisions of this subdivision have been complied with 
114.12 	in full. The provisions of this subdivision shall not apply to programs located in hospitals.
114.13 		Subd. 3.Meeting fire and safety codes. An applicant or license holder under sections 
114.14 	142B.01 to 142B.50 must document compliance with applicable building codes, fire and 
114.15 	safety codes, health rules, and zoning ordinances, or document that an appropriate waiver 
114.16 	has been granted.
114.17 		Subd. 4.Background study. Individuals and organizations that are required under 
114.18 	section 245C.03 to have or initiate background studies shall comply with the requirements 
114.19 	in chapter 245C.
114.20 		Subd. 5.Notice of background study results; determination of risk of harm. The 
114.21 	notice of background study results and the commissioner's determination of the background 
114.22 	subject's risk of harm shall be governed according to sections 245C.16 and 245C.17.
114.23 		Subd. 6.Reconsideration of disqualification. Reconsideration of a disqualification 
114.24 	shall be governed according to sections 245C.21 to 245C.27.
114.25 		Subd. 7.Contested case. Contested case hearing rights related to a disqualification shall 
114.26 	be governed according to section 245C.28.
114.27 		Subd. 8.Disqualification. Disqualification shall be governed according to sections 
114.28 	245C.14 and 245C.15.
114.29 		Subd. 9.Variance for a disqualified individual. A variance for a disqualified individual 
114.30 	shall be governed according to section 245C.30.
114.31 		Subd. 10.Conclusive determinations or dispositions. Whether a disqualification 
114.32 	determination or maltreatment determination or disposition is deemed conclusive shall be 
114.33 	governed according to section 245C.29.
115.1 		Subd. 11.Inspections; waiver. (a) Before issuing a license under this chapter, the 
115.2 	commissioner shall conduct an inspection of the program. The inspection must include but 
115.3 	is not limited to:
115.4 	(1) an inspection of the physical plant;
115.5 	(2) an inspection of records and documents;
115.6 	(3) observation of the program in operation; and
115.7 	(4) an inspection for the health, safety, and fire standards in licensing requirements for 
115.8 	a child care license holder.
115.9 	(b) The observation in paragraph (a), clause (3), is not required prior to issuing a license 
115.10 	under subdivision 14. If the commissioner issues a license under this chapter, these 
115.11 	requirements must be completed within one year after the issuance of the license.
115.12 	(c) Before completing a licensing inspection in a family child care program or child care 
115.13 	center, the licensing agency must offer the license holder an exit interview to discuss 
115.14 	violations or potential violations of law or rule observed during the inspection and offer 
115.15 	technical assistance on how to comply with applicable laws and rules. The commissioner 
115.16 	shall not issue a correction order or negative licensing action for violations of law or rule 
115.17 	not discussed in an exit interview, unless a license holder chooses not to participate in an 
115.18 	exit interview or not to complete the exit interview. If the license holder is unable to complete 
115.19 	the exit interview, the licensing agency must offer an alternate time for the license holder 
115.20 	to complete the exit interview.
115.21 	(d) If a family child care license holder disputes a county licensor's interpretation of a 
115.22 	licensing requirement during a licensing inspection or exit interview, the license holder 
115.23 	may, within five business days after the exit interview or licensing inspection, request 
115.24 	clarification from the commissioner, in writing, in a manner prescribed by the commissioner. 
115.25 	The license holder's request must describe the county licensor's interpretation of the licensing 
115.26 	requirement at issue, and explain why the license holder believes the county licensor's 
115.27 	interpretation is inaccurate. The commissioner and the county must include the license 
115.28 	holder in all correspondence regarding the disputed interpretation, and must provide an 
115.29 	opportunity for the license holder to contribute relevant information that may impact the 
115.30 	commissioner's decision. The county licensor must not issue a correction order related to 
115.31 	the disputed licensing requirement until the commissioner has provided clarification to the 
115.32 	license holder about the licensing requirement.
116.1 	(e) The commissioner or the county shall inspect at least once each calendar year a child 
116.2 	care provider licensed under this chapter and Minnesota Rules, chapter 9502 or 9503, for 
116.3 	compliance with applicable licensing standards.
116.4 	(f) The commissioner shall make publicly available on the department's website the 
116.5 	results of inspection reports of all child care providers licensed under this chapter and under 
116.6 	Minnesota Rules, chapter 9502 or 9503, and the number of deaths, serious injuries, and 
116.7 	instances of substantiated child maltreatment that occurred in licensed child care settings 
116.8 	each year.
116.9 		Subd. 12.Commissioner's right of access. (a) When the commissioner is exercising 
116.10 	the powers conferred by this chapter, section 626.557, and chapter 260E, the commissioner 
116.11 	must be given access to:
116.12 	(1) the physical plant and grounds where the program is provided;
116.13 	(2) documents and records, including records maintained in electronic format;
116.14 	(3) persons served by the program; and
116.15 	(4) staff and personnel records of current and former staff whenever the program is in 
116.16 	operation and the information is relevant to inspections or investigations conducted by the 
116.17 	commissioner. Upon request, the license holder must provide the commissioner verification 
116.18 	of documentation of staff work experience, training, or educational requirements.
116.19 	The commissioner must be given access without prior notice and as often as the commissioner 
116.20 	considers necessary if the commissioner is investigating alleged maltreatment, conducting 
116.21 	a licensing inspection, or investigating an alleged violation of applicable laws or rules. In 
116.22 	conducting inspections, the commissioner may request and shall receive assistance from 
116.23 	other state, county, and municipal governmental agencies and departments. The applicant 
116.24 	or license holder shall allow the commissioner to photocopy, photograph, and make audio 
116.25 	and video recordings during the inspection of the program at the commissioner's expense. 
116.26 	The commissioner shall obtain a court order or the consent of the subject of the records or 
116.27 	the parents or legal guardian of the subject before photocopying hospital medical records.
116.28 	(b) Persons served by the program have the right to refuse to consent to be interviewed, 
116.29 	photographed, or audio or video recorded. Failure or refusal of an applicant or license holder 
116.30 	to fully comply with this subdivision is reasonable cause for the commissioner to deny the 
116.31 	application or immediately suspend or revoke the license.
116.32 		Subd. 13.Commissioner's evaluation. (a) Before issuing, denying, suspending, revoking, 
116.33 	or making conditional a license, the commissioner shall evaluate information gathered under 
117.1 	this section. The commissioner's evaluation shall consider the applicable requirements of 
117.2 	statutes and rules for the program or services for which the applicant seeks a license, 
117.3 	including the disqualification standards set forth in chapter 245C, and shall evaluate facts, 
117.4 	conditions, or circumstances concerning:
117.5 	(1) the program's operation;
117.6 	(2) the well-being of persons served by the program;
117.7 	(3) available evaluations of the program by persons receiving services;
117.8 	(4) information about the qualifications of the personnel employed by the applicant or 
117.9 	license holder; and
117.10 	(5) the applicant's or license holder's ability to demonstrate competent knowledge of the 
117.11 	applicable requirements of statutes and rules, including this chapter and chapter 245C, for 
117.12 	which the applicant seeks a license or the license holder is licensed.
117.13 	(b) The commissioner shall review the results of the study required in subdivision 4 and 
117.14 	determine whether the commissioner of human services correctly determined whether a 
117.15 	risk of harm to the person served by the program exists under the standards set forth in 
117.16 	chapter 245C.
117.17 		Subd. 14.Grant of license; license extension. (a) If the commissioner determines that 
117.18 	the program complies with all applicable rules and laws, the commissioner shall issue a 
117.19 	license consistent with this section or, if applicable, a temporary change of ownership license 
117.20 	under section 142B.11. At minimum, the license shall state:
117.21 	(1) the name of the license holder;
117.22 	(2) the address of the program;
117.23 	(3) the effective date and expiration date of the license;
117.24 	(4) the type of license;
117.25 	(5) the maximum number and ages of persons that may receive services from the program; 
117.26 	and
117.27 	(6) any special conditions of licensure.
117.28 	(b) The commissioner may issue a license for a period not to exceed two years if:
117.29 	(1) the commissioner is unable to conduct the observation required by subdivision 11, 
117.30 	paragraph (a), clause (3), because the program is not yet operational;
118.1 	(2) certain records and documents are not available because persons are not yet receiving 
118.2 	services from the program; and
118.3 	(3) the applicant complies with applicable laws and rules in all other respects.
118.4 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
118.5 	or persons will be placed or cared for in the licensed program.
118.6 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
118.7 	license if the applicant, license holder, or an affiliated controlling individual has:
118.8 	(1) been disqualified and the disqualification was not set aside and no variance has been 
118.9 	granted;
118.10 	(2) been denied a license under this chapter or chapter 245A within the past two years;
118.11 	(3) had a license issued under this chapter or chapter 245A revoked within the past five 
118.12 	years; or
118.13 	(4) failed to submit the information required of an applicant under subdivision 1, 
118.14 	paragraph (f), (g), or (h), after being requested by the commissioner.
118.15 	When a license issued under this chapter or chapter 245A is revoked, the license holder 
118.16 	and each affiliated controlling individual with a revoked license may not hold any license 
118.17 	under chapter 142B for five years following the revocation, and other licenses held by the 
118.18 	applicant or license holder or licenses affiliated with each controlling individual shall also 
118.19 	be revoked.
118.20 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
118.21 	affiliated with a license holder or controlling individual that had a license revoked within 
118.22 	the past five years if the commissioner determines that (1) the license holder or controlling 
118.23 	individual is operating the program in substantial compliance with applicable laws and rules 
118.24 	and (2) the program's continued operation is in the best interests of the community being 
118.25 	served.
118.26 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
118.27 	to an application that is affiliated with an applicant, license holder, or controlling individual 
118.28 	that had an application denied within the past two years or a license revoked within the past 
118.29 	five years if the commissioner determines that (1) the applicant or controlling individual 
118.30 	has operated one or more programs in substantial compliance with applicable laws and rules 
118.31 	and (2) the program's operation would be in the best interests of the community to be served.
119.1 	(g) In determining whether a program's operation would be in the best interests of the 
119.2 	community to be served, the commissioner shall consider factors such as the number of 
119.3 	persons served, the availability of alternative services available in the surrounding 
119.4 	community, the management structure of the program, whether the program provides 
119.5 	culturally specific services, and other relevant factors.
119.6 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
119.7 	living in the household where the services will be provided as specified under section 
119.8 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
119.9 	and no variance has been granted.
119.10 	(i) Pursuant to section 142B.18, subdivision 1, paragraph (b), when a license issued 
119.11 	under this chapter has been suspended or revoked and the suspension or revocation is under 
119.12 	appeal, the program may continue to operate pending a final order from the commissioner. 
119.13 	If the license under suspension or revocation will expire before a final order is issued, a 
119.14 	temporary provisional license may be issued provided any applicable license fee is paid 
119.15 	before the temporary provisional license is issued.
119.16 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
119.17 	a controlling individual or license holder, and the controlling individual or license holder 
119.18 	is ordered under section 245C.17 to be immediately removed from direct contact with 
119.19 	persons receiving services or is ordered to be under continuous, direct supervision when 
119.20 	providing direct contact services, the program may continue to operate only if the program 
119.21 	complies with the order and submits documentation demonstrating compliance with the 
119.22 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
119.23 	if the disqualification is not set aside and no variance is granted, the order to immediately 
119.24 	remove the individual from direct contact or to be under continuous, direct supervision 
119.25 	remains in effect pending the outcome of a hearing and final order from the commissioner.
119.26 	(k) For purposes of reimbursement for meals only, under the Child and Adult Care Food 
119.27 	Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, part 226, 
119.28 	relocation within the same county by a licensed family day care provider, shall be considered 
119.29 	an extension of the license for a period of no more than 30 calendar days or until the new 
119.30 	license is issued, whichever occurs first, provided the county agency has determined the 
119.31 	family day care provider meets licensure requirements at the new location.
119.32 	(l) Unless otherwise specified by statute, all licenses issued under this chapter expire at 
119.33 	12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
120.1 	apply for and be granted a new license to operate the program or the program must not be 
120.2 	operated after the expiration date.
120.3 	(m) The commissioner shall not issue or reissue a license under this chapter if it has 
120.4 	been determined that a tribal licensing authority has established jurisdiction to license the 
120.5 	program or service.
120.6 	(n) The commissioner of children, youth, and families shall coordinate and share data 
120.7 	with the commissioner of human services to enforce this section.
120.8 		Subd. 15.Notification required. (a) A license holder must notify the commissioner, in 
120.9 	a manner prescribed by the commissioner, and obtain the commissioner's approval before 
120.10 	making any change that would alter the license information listed under subdivision 14, 
120.11 	paragraph (a).
120.12 	(b) A license holder must also notify the commissioner, in a manner prescribed by the 
120.13 	commissioner, before making any change:
120.14 	(1) to the license holder's authorized agent as defined in section 142B.01, subdivision 
120.15 	5;
120.16 	(2) to the license holder's controlling individual as defined in section 142B.01, subdivision 
120.17 	8;
120.18 	(3) to the license holder information on file with the secretary of state;
120.19 	(4) in the location of the program or service licensed under this chapter; and
120.20 	(5) to the federal or state tax identification number associated with the license holder.
120.21 	(c) When, for reasons beyond the license holder's control, a license holder cannot provide 
120.22 	the commissioner with prior notice of the changes in paragraph (b), clauses (1) to (3), the 
120.23 	license holder must notify the commissioner by the tenth business day after the change and 
120.24 	must provide any additional information requested by the commissioner.
120.25 	(d) When a license holder notifies the commissioner of a change to the license holder 
120.26 	information on file with the secretary of state, the license holder must provide amended 
120.27 	articles of incorporation and other documentation of the change.
120.28 	(e) Upon implementation of the provider licensing and reporting hub, license holders 
120.29 	must enter and update information in the hub in a manner prescribed by the commissioner.
120.30 		Subd. 16.Variances. (a) The commissioner may grant variances to rules that do not 
120.31 	affect the health or safety of persons in a licensed program if the following conditions are 
120.32 	met:
121.1 	(1) the variance must be requested by an applicant or license holder on a form and in a 
121.2 	manner prescribed by the commissioner;
121.3 	(2) the request for a variance must include the reasons that the applicant or license holder 
121.4 	cannot comply with a requirement as stated in the rule and the alternative equivalent measures 
121.5 	that the applicant or license holder will follow to comply with the intent of the rule; and
121.6 	(3) the request must state the period of time for which the variance is requested.
121.7 	The commissioner may grant a permanent variance when conditions under which the variance 
121.8 	is requested do not affect the health or safety of persons being served by the licensed program, 
121.9 	nor compromise the qualifications of staff to provide services. The permanent variance shall 
121.10 	expire as soon as the conditions that warranted the variance are modified in any way. Any 
121.11 	applicant or license holder must inform the commissioner of any changes or modifications 
121.12 	that have occurred in the conditions that warranted the permanent variance. Failure to advise 
121.13 	the commissioner shall result in revocation of the permanent variance and may be cause for 
121.14 	other sanctions under sections 142B.17 and 142B.18.
121.15 	The commissioner's decision to grant or deny a variance request is final and not subject to 
121.16 	appeal under the provisions of chapter 14.
121.17 	(b) The commissioner shall consider variances for child care center staff qualification 
121.18 	requirements under Minnesota Rules, parts 9503.0032 and 9503.0033, that do not affect 
121.19 	the health and safety of children served by the center. A variance request must be submitted 
121.20 	to the commissioner in accordance with paragraph (a) and must include a plan for the staff 
121.21 	person to gain additional experience, education, or training, as requested by the commissioner. 
121.22 	When reviewing a variance request under this section, the commissioner shall consider the 
121.23 	staff person's level of professional development, including but not limited to steps completed 
121.24 	on the Minnesota career lattice.
121.25 	(c) Counties shall use a uniform application form developed by the commissioner for 
121.26 	variance requests by family child care license holders.
121.27 		Subd. 17.Education program; permitted ages; additional requirement. (a) A program 
121.28 	licensed by the commissioner under Minnesota Rules, chapter 2960, may serve a person 
121.29 	who is over the age of 18 but under the age of 21 if the person is:
121.30 	(1) completing secondary education or a program leading to an equivalent credential;
121.31 	(2) enrolled in an institution that provides postsecondary or vocational education;
121.32 	(3) participating in a program or activity designed to promote or remove barriers to 
121.33 	employment;
122.1 	(4) employed for at least 80 hours per month; or
122.2 	(5) incapable of doing any of the activities described in clauses (1) to (4) due to a medical 
122.3 	condition, which incapability is supported by regularly updated information in the case plan 
122.4 	of the person.
122.5 	(b) Nothing in this subdivision precludes the license holder from seeking other variances 
122.6 	under subdivision 16.
122.7 		Subd. 18.Funds and property; other requirements. (a) A license holder must ensure 
122.8 	that persons served by the program retain the use and availability of personal funds or 
122.9 	property unless restrictions are justified in the person's individual plan.
122.10 	(b) The license holder must ensure separation of funds of persons served by the program 
122.11 	from funds of the license holder, the program, or program staff.
122.12 	(c) Whenever the license holder assists a person served by the program with the 
122.13 	safekeeping of funds or other property, the license holder must:
122.14 	(1) immediately document receipt and disbursement of the person's funds or other 
122.15 	property at the time of receipt or disbursement, including the person's signature, or the 
122.16 	signature of the conservator or payee; and
122.17 	(2) return to the person upon the person's request, funds and property in the license 
122.18 	holder's possession subject to restrictions in the person's treatment plan, as soon as possible, 
122.19 	but no later than three working days after the date of request.
122.20 	(d) License holders and program staff must not:
122.21 	(1) borrow money from a person served by the program;
122.22 	(2) purchase personal items from a person served by the program;
122.23 	(3) sell merchandise or personal services to a person served by the program;
122.24 	(4) require a person served by the program to purchase items for which the license holder 
122.25 	is eligible for reimbursement; or
122.26 	(5) use funds of persons served by the program to purchase items for which the facility 
122.27 	is already receiving public or private payments.
122.28 		Subd. 19.Policies and procedures for program administration required and 
122.29 	enforceable. (a) The license holder shall develop program policies and procedures necessary 
122.30 	to maintain compliance with licensing requirements under Minnesota Statutes and Minnesota 
122.31 	Rules.
123.1 	(b) The license holder shall:
123.2 	(1) provide training to program staff related to their duties in implementing the program's 
123.3 	policies and procedures developed under paragraph (a);
123.4 	(2) document the provision of this training; and
123.5 	(3) monitor implementation of policies and procedures by program staff.
123.6 	(c) The license holder shall keep program policies and procedures readily accessible to 
123.7 	staff and index the policies and procedures with a table of contents or another method 
123.8 	approved by the commissioner.
123.9 		Subd. 20.Pandemic planning. Upon request, the license holder must cooperate with 
123.10 	state and local government disaster planning agencies working to prepare for or react to 
123.11 	emergencies presented by a pandemic outbreak.
123.12 		Subd. 21.Plan for transfer of clients and records upon closure. (a) Except for license 
123.13 	holders who reside on the premises and child care providers, an applicant for initial or 
123.14 	continuing licensure or certification must submit a written plan indicating how the program 
123.15 	will ensure the transfer of clients and records for both open and closed cases if the program 
123.16 	closes. The plan must provide for managing private and confidential information concerning 
123.17 	program clients. The plan must also provide for notifying affected clients of the closure at 
123.18 	least 25 days prior to closure, including information on how to access their records. A 
123.19 	controlling individual of the program must annually review and sign the plan.
123.20 	(b) Plans for the transfer of open cases and case records must specify arrangements the 
123.21 	program will make to transfer clients to another provider or county agency for continuation 
123.22 	of services and to transfer the case record with the client.
123.23 	(c) Plans for the transfer of closed case records must be accompanied by a signed 
123.24 	agreement or other documentation indicating that a county or a similarly licensed provider 
123.25 	has agreed to accept and maintain the program's closed case records and to provide follow-up 
123.26 	services as necessary to affected clients.
123.27 		Subd. 22.Program policy; reporting a death in the program. Unless such reporting 
123.28 	is otherwise already required under statute or rule, programs licensed under this chapter 
123.29 	must have a written policy for reporting the death of an individual served by the program 
123.30 	to the commissioner of children, youth, and families. Within 24 hours of receiving knowledge 
123.31 	of the death of an individual served by the program, the license holder shall notify the 
123.32 	commissioner of the individual's death. If the license holder has reason to know that the 
123.33 	death has been reported to the commissioner, a subsequent report is not required.

124.1 	Sec. 6. [142B.11] LICENSE APPLICATION AFTER CHANGE OF OWNERSHIP.
124.2 		Subdivision 1.Transfer prohibited. A license issued under this chapter is only valid 
124.3 	for a premises and individual, organization, or government entity identified by the 
124.4 	commissioner on the license. A license is not transferable or assignable.
124.5 		Subd. 2.Change in ownership. (a) If the commissioner determines that there is a change 
124.6 	in ownership, the commissioner shall require submission of a new license application. This 
124.7 	subdivision does not apply to a licensed program or service located in a home where the 
124.8 	license holder resides. A change in ownership occurs when:
124.9 	(1) the license holder sells or transfers 100 percent of the property, stock, or assets;
124.10 	(2) the license holder merges with another organization;
124.11 	(3) the license holder consolidates with two or more organizations, resulting in the 
124.12 	creation of a new organization;
124.13 	(4) there is a change to the federal tax identification number associated with the license 
124.14 	holder; or
124.15 	(5) all controlling individuals associated with the original application have changed.
124.16 	(b) Notwithstanding paragraph (a), clauses (1) and (5), no change in ownership has 
124.17 	occurred if at least one controlling individual has been listed as a controlling individual for 
124.18 	the license for at least the previous 12 months.
124.19 		Subd. 3.Change of ownership process. (a) When a change in ownership is proposed 
124.20 	and the party intends to assume operation without an interruption in service longer than 60 
124.21 	days after acquiring the program or service, the license holder must provide the commissioner 
124.22 	with written notice of the proposed change on a form provided by the commissioner at least 
124.23 	60 days before the anticipated date of the change in ownership. For purposes of this 
124.24 	subdivision and subdivision 4, "party" means the party that intends to operate the service 
124.25 	or program.
124.26 	(b) The party must submit a license application under this chapter on the form and in 
124.27 	the manner prescribed by the commissioner at least 30 days before the change in ownership 
124.28 	is complete and must include documentation to support the upcoming change. The party 
124.29 	must comply with background study requirements under chapter 245C and shall pay the 
124.30 	application fee required under section 245A.10.
124.31 	(c) The commissioner may streamline application procedures when the party is an existing 
124.32 	license holder under this chapter and is acquiring a program licensed under this chapter or 
125.1 	service in the same service class as one or more licensed programs or services the party 
125.2 	operates and those licenses are in substantial compliance. For purposes of this subdivision, 
125.3 	"substantial compliance" means within the previous 12 months the commissioner did not 
125.4 	(1) issue a sanction under section 245A.07 against a license held by the party, or (2) make 
125.5 	a license held by the party conditional according to section 245A.06.
125.6 	(d) Except when a temporary change in ownership license is issued pursuant to 
125.7 	subdivision 4, the existing license holder is solely responsible for operating the program 
125.8 	according to applicable laws and rules until a license under this chapter is issued to the 
125.9 	party.
125.10 	(e) If a licensing inspection of the program or service was conducted within the previous 
125.11 	12 months and the existing license holder's license record demonstrates substantial 
125.12 	compliance with the applicable licensing requirements, the commissioner may waive the 
125.13 	party's inspection required by section 245A.04, subdivision 4. The party must submit to the 
125.14 	commissioner (1) proof that the premises was inspected by a fire marshal or that the fire 
125.15 	marshal deemed that an inspection was not warranted, and (2) proof that the premises was 
125.16 	inspected for compliance with the building code or that no inspection was deemed warranted.
125.17 	(f) If the party is seeking a license for a program or service that has an outstanding action 
125.18 	under section 245A.06 or 245A.07, the party must submit a letter as part of the application 
125.19 	process identifying how the party has or will come into full compliance with the licensing 
125.20 	requirements.
125.21 	(g) The commissioner shall evaluate the party's application according to section 245A.04, 
125.22 	subdivision 6. If the commissioner determines that the party has remedied or demonstrates 
125.23 	the ability to remedy the outstanding actions under section 245A.06 or 245A.07 and has 
125.24 	determined that the program otherwise complies with all applicable laws and rules, the 
125.25 	commissioner shall issue a license or conditional license under this chapter. The conditional 
125.26 	license remains in effect until the commissioner determines that the grounds for the action 
125.27 	are corrected or no longer exist.
125.28 	(h) The commissioner may deny an application as provided in section 245A.05. An 
125.29 	applicant whose application was denied by the commissioner may appeal the denial according 
125.30 	to section 245A.05.
125.31 	(i) This subdivision does not apply to a licensed program or service located in a home 
125.32 	where the license holder resides.
125.33 		Subd. 4.Temporary change in ownership license. (a) After receiving the party's 
125.34 	application pursuant to subdivision 3, upon the written request of the existing license holder 
126.1 	and the party, the commissioner may issue a temporary change in ownership license to the 
126.2 	party while the commissioner evaluates the party's application. Until a decision is made to 
126.3 	grant or deny a license under this chapter, the existing license holder and the party shall 
126.4 	both be responsible for operating the program or service according to applicable laws and 
126.5 	rules, and the sale or transfer of the existing license holder's ownership interest in the licensed 
126.6 	program or service does not terminate the existing license.
126.7 	(b) The commissioner may issue a temporary change in ownership license when a license 
126.8 	holder's death, divorce, or other event affects the ownership of the program and an applicant 
126.9 	seeks to assume operation of the program or service to ensure continuity of the program or 
126.10 	service while a license application is evaluated.
126.11 	(c) This subdivision applies to any program or service licensed under this chapter.

126.12 	Sec. 7. [142B.12] FEES.
126.13 		Subdivision 1.Application or license fee required, programs exempt from fee. (a) 
126.14 	Unless exempt under paragraph (b), the commissioner shall charge a fee for evaluation of 
126.15 	applications and inspection of programs that are licensed under this chapter.
126.16 	(b) Except as provided under subdivision 2, no application or license fee shall be charged 
126.17 	for child foster care or family and group family child care.
126.18 		Subd. 2.County fees for applications and licensing inspections. (a) A county agency 
126.19 	may charge a license fee to an applicant or license holder not to exceed $50 for a one-year 
126.20 	license or $100 for a two-year license.
126.21 	(b) Counties may allow providers to pay the applicant fee in paragraph (a) on an 
126.22 	installment basis for up to one year. If the provider is receiving child care assistance payments 
126.23 	from the state, the provider may have the fee under paragraph (a) deducted from the child 
126.24 	care assistance payments for up to one year and the state shall reimburse the county for the 
126.25 	county fees collected in this manner.
126.26 	(c) For purposes of child foster care licensing under this chapter, a county agency may 
126.27 	charge a fee to a corporate applicant or corporate license holder to recover the actual cost 
126.28 	of licensing inspections, not to exceed $500 annually.
126.29 	(d) Counties may elect to reduce or waive the fees in paragraph (c) under the following 
126.30 	circumstances:
126.31 	(1) in cases of financial hardship;
126.32 	(2) if the county has a shortage of providers in the county's area; or
127.1 	(3) for new providers.
127.2 		Subd. 3.Application fee for initial license. (a) For fees required under subdivision 1, 
127.3 	an applicant for an initial license issued by the commissioner shall submit a $500 application 
127.4 	fee with each new application required under this subdivision. The application fee shall not 
127.5 	be prorated, is nonrefundable, and is in lieu of the annual license fee that expires on December 
127.6 	31. The commissioner shall not process an application until the application fee is paid.
127.7 	(b) An applicant shall apply for a license to provide services at a specific location, except 
127.8 	an applicant for a license for a private agency to provide foster care or adoption services 
127.9 	under Minnesota Rules, parts 9545.0755 to 9545.0845, shall submit a single application to 
127.10 	provide services statewide.
127.11 		Subd. 4.License fee for certain programs. (a) Child care centers shall pay an annual 
127.12 	nonrefundable license fee based on the following schedule:

127.14127.13
		Licensed Capacity
	Child Care Center
License Fee
	
127.15		1 to 24 persons
	$200
	
127.16		25 to 49 persons
	$300
	
127.17		50 to 74 persons
	$400
	
127.18		75 to 99 persons
	$500
	
127.19		100 to 124 persons
	$600
	
127.20		125 to 149 persons
	$700
	
127.21		150 to 174 persons
	$800
	
127.22		175 to 199 persons
	$900
	
127.23		200 to 224 persons
	$1,000
	
127.24		225 or more persons
	$1,100
	
127.25 	(b) A private agency licensed to provide foster care and adoption services under 
127.26 	Minnesota Rules, parts 9545.0755 to 9545.0845, shall pay an annual nonrefundable license 
127.27 	fee of $875.
127.28 		Subd. 5.License not issued until license fee is paid. The commissioner shall not issue 
127.29 	or reissue a license until the license fee is paid. The commissioner shall send a bill for the 
127.30 	license fee to the billing address identified by the license holder. If the license holder does 
127.31 	not submit the license fee payment by the due date, the commissioner shall send the license 
127.32 	holder a past due notice. If the license holder fails to pay the license fee by the due date on 
127.33 	the past due notice, the commissioner shall send a final notice to the license holder informing 
127.34 	the license holder that the program license will expire on December 31 unless the license 
127.35 	fee is paid before December 31. If a license expires, the program is no longer licensed and, 
128.1 	unless exempt from licensure under section 142B.05, subdivision 2, must not operate after 
128.2 	the expiration date. After a license expires, if the former license holder wishes to provide 
128.3 	licensed services, the former license holder must submit a new license application and 
128.4 	application fee under subdivision 3.
128.5 		Subd. 6.Children, youth, and families licensing fees to recover 
128.6 	expenditures. Notwithstanding section 16A.1285, subdivision 2, related to activities for 
128.7 	which the commissioner charges a fee, the commissioner must plan to fully recover direct 
128.8 	expenditures for licensing activities under this chapter over a five-year period. The 
128.9 	commissioner may have anticipated expenditures in excess of anticipated revenues in a 
128.10 	biennium by using surplus revenues accumulated in previous bienniums.
128.11 		Subd. 7.Deposit of license fees. A children, youth, and families licensing account is 
128.12 	created in the state government special revenue fund. Fees collected under subdivisions 3 
128.13 	and 4 must be deposited in the children, youth, and families licensing account and are 
128.14 	annually appropriated to the commissioner for licensing activities authorized under this 
128.15 	chapter.
128.16 		Subd. 8.License not reissued until outstanding debt is paid. The commissioner shall 
128.17 	not reissue a license until the license holder has paid all outstanding debts related to a 
128.18 	licensing fine or settlement agreement for which payment is delinquent. If the payment is 
128.19 	past due, the commissioner shall send a past due notice informing the license holder that 
128.20 	the program license will expire on December 31 unless the outstanding debt is paid before 
128.21 	December 31. If a license expires, the program is no longer licensed and must not operate 
128.22 	after the expiration date. After a license expires, if the former license holder wishes to 
128.23 	provide licensed services, the former license holder must submit a new license application 
128.24 	and application fee under subdivision 3.

128.25 	Sec. 8. [142B.15] DENIAL OF APPLICATION.
128.26 	(a) The commissioner may deny a license if an applicant or controlling individual:
128.27 	(1) fails to submit a substantially complete application after receiving notice from the 
128.28 	commissioner under section 142B.10, subdivision 1;
128.29 	(2) fails to comply with applicable laws or rules;
128.30 	(3) knowingly withholds relevant information from or gives false or misleading 
128.31 	information to the commissioner in connection with an application for a license or during 
128.32 	an investigation;
129.1 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
129.2 	variance has been granted;
129.3 	(5) has an individual living in the household who received a background study under 
129.4 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
129.5 	has not been set aside under section 245C.22, and no variance has been granted;
129.6 	(6) is associated with an individual who received a background study under section 
129.7 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
129.8 	children or vulnerable adults, and who has a disqualification that has not been set aside 
129.9 	under section 245C.22, and no variance has been granted;
129.10 	(7) fails to comply with section 142B.10, subdivision 1, paragraph (f) or (g);
129.11 	(8) fails to demonstrate competent knowledge as required by section 142B.10, subdivision 
129.12 	13;
129.13 	(9) has a history of noncompliance as a license holder or controlling individual with 
129.14 	applicable laws or rules, including but not limited to this chapter and chapters 142E, 245A, 
129.15 	and 245C;
129.16 	(10) is prohibited from holding a license according to section 142A.12 or 245.095; or
129.17 	(11) for a family foster setting, has or has an individual who is living in the household 
129.18 	where the licensed services are provided or is otherwise subject to a background study who 
129.19 	has nondisqualifying background study information, as described in section 245C.05, 
129.20 	subdivision 4, that reflects on the applicant's ability to safely provide care to foster children.
129.21 	(b) An applicant whose application has been denied by the commissioner must be given 
129.22 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
129.23 	must be given by certified mail, by personal service, or through the provider licensing and 
129.24 	reporting hub. The notice must state the reasons the application was denied and must inform 
129.25 	the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules, 
129.26 	parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the 
129.27 	commissioner in writing by certified mail, by personal service, or through the provider 
129.28 	licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the 
129.29 	commissioner within 20 calendar days after the applicant received the notice of denial. If 
129.30 	an appeal request is made by personal service, it must be received by the commissioner 
129.31 	within 20 calendar days after the applicant received the notice of denial. If the order is issued 
129.32 	through the provider hub, the appeal must be received by the commissioner within 20 
130.1 	calendar days from the date the commissioner issued the order through the hub. Section 
130.2 	142B.20 applies to hearings held to appeal the commissioner's denial of an application.

130.3 	Sec. 9. [142B.16] CORRECTION ORDER AND CONDITIONAL LICENSE.
130.4 		Subdivision 1.Contents of correction orders and conditional licenses. (a) If the 
130.5 	commissioner finds that the applicant or license holder has failed to comply with an 
130.6 	applicable law or rule and this failure does not imminently endanger the health, safety, or 
130.7 	rights of the persons served by the program, the commissioner may issue a correction order 
130.8 	and an order of conditional license to the applicant or license holder. When issuing a 
130.9 	conditional license, the commissioner shall consider the nature, chronicity, or severity of 
130.10 	the violation of law or rule and the effect of the violation on the health, safety, or rights of 
130.11 	persons served by the program. The correction order or conditional license must state the 
130.12 	following in plain language:
130.13 	(1) the conditions that constitute a violation of the law or rule;
130.14 	(2) the specific law or rule violated;
130.15 	(3) the time allowed to correct each violation; and
130.16 	(4) if a license is made conditional, the length and terms of the conditional license, and 
130.17 	the reasons for making the license conditional.
130.18 	(b) Nothing in this section prohibits the commissioner from proposing a sanction as 
130.19 	specified in section 142B.18, prior to issuing a correction order or conditional license.
130.20 	(c) The commissioner may issue a correction order and an order of conditional license 
130.21 	to the applicant or license holder through the provider licensing and reporting hub.
130.22 		Subd. 2.Reconsideration of correction orders. (a) If the applicant or license holder 
130.23 	believes that the contents of the commissioner's correction order are in error, the applicant 
130.24 	or license holder may ask the Department of Children, Youth, and Families to reconsider 
130.25 	the parts of the correction order that are alleged to be in error. The request for reconsideration 
130.26 	must be made in writing and must be postmarked and sent to the commissioner within 20 
130.27 	calendar days after receipt of the correction order by the applicant or license holder or 
130.28 	submitted in the provider licensing and reporting hub within 20 calendar days from the date 
130.29 	the commissioner issued the order through the hub, and:
130.30 	(1) specify the parts of the correction order that are alleged to be in error;
130.31 	(2) explain why they are in error; and
130.32 	(3) include documentation to support the allegation of error.
131.1 	Upon implementation of the provider licensing and reporting hub, the provider must use 
131.2 	the hub to request reconsideration. A request for reconsideration does not stay any provisions 
131.3 	or requirements of the correction order. The commissioner's disposition of a request for 
131.4 	reconsideration is final and not subject to appeal under chapter 14.
131.5 	(b) This paragraph applies only to licensed family child care providers. A licensed family 
131.6 	child care provider who requests reconsideration of a correction order under paragraph (a) 
131.7 	may also request, on a form and in the manner prescribed by the commissioner, that the 
131.8 	commissioner expedite the review if:
131.9 	(1) the provider is challenging a violation and provides a description of how complying 
131.10 	with the corrective action for that violation would require the substantial expenditure of 
131.11 	funds or a significant change to their program; and
131.12 	(2) describes what actions the provider will take in lieu of the corrective action ordered 
131.13 	to ensure the health and safety of children in care pending the commissioner's review of the 
131.14 	correction order.
131.15 		Subd. 3.Failure to comply. If the commissioner finds that the applicant or license holder 
131.16 	has not corrected the violations specified in the correction order or conditional license, the 
131.17 	commissioner may impose a fine and order other licensing sanctions pursuant to section 
131.18 	142B.18.
131.19 		Subd. 4.Notice of conditional license; reconsideration of conditional license. (a) If 
131.20 	a license is made conditional, the license holder must be notified of the order by certified 
131.21 	mail, by personal service, or through the provider licensing and reporting hub. If mailed, 
131.22 	the notice must be mailed to the address shown on the application or the last known address 
131.23 	of the license holder. The notice must state the reasons the conditional license was ordered 
131.24 	and must inform the license holder of the right to request reconsideration of the conditional 
131.25 	license by the commissioner. The license holder may request reconsideration of the order 
131.26 	of conditional license by notifying the commissioner by certified mail, by personal service, 
131.27 	or through the provider licensing and reporting hub. The request must be made in writing. 
131.28 	If sent by certified mail, the request must be postmarked and sent to the commissioner within 
131.29 	ten calendar days after the license holder received the order. If a request is made by personal 
131.30 	service, it must be received by the commissioner within ten calendar days after the license 
131.31 	holder received the order. If the order is issued through the provider hub, the request must 
131.32 	be received by the commissioner within ten calendar days from the date the commissioner 
131.33 	issued the order through the hub. The license holder may submit with the request for 
131.34 	reconsideration written argument or evidence in support of the request for reconsideration. 
132.1 	A timely request for reconsideration shall stay imposition of the terms of the conditional 
132.2 	license until the commissioner issues a decision on the request for reconsideration. If the 
132.3 	commissioner issues a dual order of conditional license under this section and an order to 
132.4 	pay a fine under section 142B.18, subdivision 6, the license holder has a right to a contested 
132.5 	case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The 
132.6 	scope of the contested case hearing shall include the fine and the conditional license. In this 
132.7 	case, a reconsideration of the conditional license will not be conducted under this section. 
132.8 	If the license holder does not appeal the fine, the license holder does not have a right to a 
132.9 	contested case hearing and a reconsideration of the conditional license must be conducted 
132.10 	under this subdivision.
132.11 	(b) The commissioner's disposition of a request for reconsideration is final and not 
132.12 	subject to appeal under chapter 14.

132.13 	Sec. 10. [142B.18] SANCTIONS.
132.14 		Subdivision 1.Sanctions; appeals; license. (a) In addition to making a license conditional 
132.15 	under section 142B.16, the commissioner may suspend or revoke the license, impose a fine, 
132.16 	or secure an injunction against the continuing operation of the program of a license holder 
132.17 	who:
132.18 	(1) does not comply with applicable law or rule;
132.19 	(2) has nondisqualifying background study information, as described in section 245C.05, 
132.20 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
132.21 	children; or
132.22 	(3) has an individual living in the household where the licensed services are provided 
132.23 	or is otherwise subject to a background study, and the individual has nondisqualifying 
132.24 	background study information, as described in section 245C.05, subdivision 4, that reflects 
132.25 	on the license holder's ability to safely provide care to foster children.
132.26 	When applying sanctions authorized under this section, the commissioner shall consider 
132.27 	the nature, chronicity, or severity of the violation of law or rule and the effect of the violation 
132.28 	on the health, safety, or rights of persons served by the program.
132.29 	(b) If a license holder appeals the suspension or revocation of a license and the license 
132.30 	holder continues to operate the program pending a final order on the appeal, the commissioner 
132.31 	shall issue the license holder a temporary provisional license. Unless otherwise specified 
132.32 	by the commissioner, variances in effect on the date of the license sanction under appeal 
132.33 	continue under the temporary provisional license. If a license holder fails to comply with 
133.1 	applicable law or rule while operating under a temporary provisional license, the 
133.2 	commissioner may impose additional sanctions under this section and section 142B.16 and 
133.3 	may terminate any prior variance. If a temporary provisional license is set to expire, a new 
133.4 	temporary provisional license shall be issued to the license holder upon payment of any fee 
133.5 	required under section 142B.12. The temporary provisional license shall expire on the date 
133.6 	the final order is issued. If the license holder prevails on the appeal, a new nonprovisional 
133.7 	license shall be issued for the remainder of the current license period.
133.8 	(c) If a license holder is under investigation and the license issued under this chapter is 
133.9 	due to expire before completion of the investigation, the program shall be issued a new 
133.10 	license upon completion of the reapplication requirements and payment of any applicable 
133.11 	license fee. Upon completion of the investigation, a licensing sanction may be imposed 
133.12 	against the new license under this section or section 142B.16 or 142B.20.
133.13 	(d) Failure to reapply or closure of a license issued under this chapter by the license 
133.14 	holder prior to the completion of any investigation shall not preclude the commissioner 
133.15 	from issuing a licensing sanction under this section or section 142B.16 at the conclusion of 
133.16 	the investigation.
133.17 		Subd. 2.Temporary immediate suspension. (a) The commissioner shall act immediately 
133.18 	to temporarily suspend a license issued under this chapter if:
133.19 	(1) the license holder's actions or failure to comply with applicable law or rule, or the 
133.20 	actions of other individuals or conditions in the program, pose an imminent risk of harm to 
133.21 	the health, safety, or rights of persons served by the program;
133.22 	(2) while the program continues to operate pending an appeal of an order of revocation, 
133.23 	the commissioner identifies one or more subsequent violations of law or rule that may 
133.24 	adversely affect the health or safety of persons served by the program; or
133.25 	(3) the license holder is criminally charged in state or federal court with an offense that 
133.26 	involves fraud or theft against a program administered by the commissioner.
133.27 	(b) No state funds shall be made available or be expended by any agency or department 
133.28 	of state, county, or municipal government for use by a license holder regulated under this 
133.29 	chapter while a license issued under this chapter is under immediate suspension. A notice 
133.30 	stating the reasons for the immediate suspension and informing the license holder of the 
133.31 	right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 
133.32 	1400.8612, must be delivered by personal service to the address shown on the application 
133.33 	or the last known address of the license holder. The license holder may appeal an order 
133.34 	immediately suspending a license. The appeal of an order immediately suspending a license 
134.1 	must be made in writing by certified mail, personal service, or other means expressly set 
134.2 	forth in the commissioner's order. If mailed, the appeal must be postmarked and sent to the 
134.3 	commissioner within five calendar days after the license holder receives notice that the 
134.4 	license has been immediately suspended. If a request is made by personal service, it must 
134.5 	be received by the commissioner within five calendar days after the license holder received 
134.6 	the order. A license holder and any controlling individual shall discontinue operation of the 
134.7 	program upon receipt of the commissioner's order to immediately suspend the license.
134.8 		Subd. 3.Immediate suspension expedited hearing. (a) Within five working days of 
134.9 	receipt of the license holder's timely appeal, the commissioner shall request assignment of 
134.10 	an administrative law judge. The request must include a proposed date, time, and place of 
134.11 	a hearing. A hearing must be conducted by an administrative law judge within 30 calendar 
134.12 	days of the request for assignment, unless an extension is requested by either party and 
134.13 	granted by the administrative law judge for good cause. The commissioner shall issue a 
134.14 	notice of hearing by certified mail or personal service at least ten working days before the 
134.15 	hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary 
134.16 	immediate suspension should remain in effect pending the commissioner's final order under 
134.17 	section 142B.20, regarding a licensing sanction issued under subdivision 5 following the 
134.18 	immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the 
134.19 	burden of proof in expedited hearings under this subdivision shall be limited to the 
134.20 	commissioner's demonstration that reasonable cause exists to believe that the license holder's 
134.21 	actions or failure to comply with applicable law or rule poses, or the actions of other 
134.22 	individuals or conditions in the program poses an imminent risk of harm to the health, safety, 
134.23 	or rights of persons served by the program. "Reasonable cause" means there exist specific 
134.24 	articulable facts or circumstances that provide the commissioner with a reasonable suspicion 
134.25 	that there is an imminent risk of harm to the health, safety, or rights of persons served by 
134.26 	the program. When the commissioner has determined there is reasonable cause to order the 
134.27 	temporary immediate suspension of a license based on a violation of safe sleep requirements, 
134.28 	as defined in section 142B.46, the commissioner is not required to demonstrate that an infant 
134.29 	died or was injured as a result of the safe sleep violations. For suspensions under subdivision 
134.30 	2, paragraph (a), clause (2), the burden of proof in expedited hearings under this subdivision 
134.31 	shall be limited to the commissioner's demonstration by a preponderance of the evidence 
134.32 	that, since the license was revoked, the license holder committed additional violations of 
134.33 	law or rule that may adversely affect the health or safety of persons served by the program.
134.34 	(b) The administrative law judge shall issue findings of fact, conclusions, and a 
134.35 	recommendation within ten working days from the date of hearing. The parties shall have 
135.1 	ten calendar days to submit exceptions to the administrative law judge's report. The record 
135.2 	shall close at the end of the ten-day period for submission of exceptions. The commissioner's 
135.3 	final order shall be issued within ten working days from the close of the record. When an 
135.4 	appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner 
135.5 	shall issue a final order affirming the temporary immediate suspension within ten calendar 
135.6 	days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days 
135.7 	after an immediate suspension has been issued and the license holder has not submitted a 
135.8 	timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final 
135.9 	order affirming an immediate suspension, the commissioner shall determine:
135.10 	(1) whether a final licensing sanction shall be issued under subdivision 5, paragraph (a), 
135.11 	clauses (1) to (6). The license holder shall continue to be prohibited from operation of the 
135.12 	program during this 90-day period; or
135.13 	(2) whether the outcome of related, ongoing investigations or judicial proceedings are 
135.14 	necessary to determine if a final licensing sanction under subdivision 5, paragraph (a), 
135.15 	clauses (1) to (6), will be issued and whether persons served by the program remain at an 
135.16 	imminent risk of harm during the investigation period or proceedings. If so, the commissioner 
135.17 	shall issue a suspension order under subdivision 5, paragraph (a), clause (7).
135.18 	(c) When the final order under paragraph (b) affirms an immediate suspension, or the 
135.19 	license holder does not submit a timely appeal of the immediate suspension, and a final 
135.20 	licensing sanction is issued under subdivision 5 and the license holder appeals that sanction, 
135.21 	the license holder continues to be prohibited from operation of the program pending a final 
135.22 	commissioner's order under section 142B.20, subdivision 6, regarding the final licensing 
135.23 	sanction.
135.24 	(d) The license holder shall continue to be prohibited from operation of the program 
135.25 	while a suspension order issued under paragraph (b), clause (2), remains in effect.
135.26 	(e) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof 
135.27 	in expedited hearings under this subdivision shall be limited to the commissioner's 
135.28 	demonstration by a preponderance of the evidence that a criminal complaint and warrant 
135.29 	or summons was issued for the license holder that was not dismissed, and that the criminal 
135.30 	charge is an offense that involves fraud or theft against a program administered by the 
135.31 	commissioner.
135.32 		Subd. 4.Immediate suspension of residential programs. For suspensions issued to a 
135.33 	licensed residential program as defined in section 142B.01, subdivision 24, the effective 
135.34 	date of the order may be delayed for up to 30 calendar days to provide for the continuity of 
136.1 	care of service recipients. The license holder must cooperate with the commissioner to 
136.2 	ensure service recipients receive continued care during the period of the delay and to facilitate 
136.3 	the transition of service recipients to new providers. In these cases, the suspension order 
136.4 	takes effect when all service recipients have been transitioned to a new provider or 30 days 
136.5 	after the suspension order was issued, whichever comes first.
136.6 		Subd. 5.License suspension, revocation, or fine. (a) The commissioner may suspend 
136.7 	or revoke a license, or impose a fine if:
136.8 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
136.9 	limited to the requirements of this chapter and chapter 245C;
136.10 	(2) a license holder, a controlling individual, or an individual living in the household 
136.11 	where the licensed services are provided or is otherwise subject to a background study has 
136.12 	been disqualified and the disqualification was not set aside and no variance has been granted;
136.13 	(3) a license holder knowingly withholds relevant information from or gives false or 
136.14 	misleading information to the commissioner in connection with an application for a license, 
136.15 	in connection with the background study status of an individual, during an investigation, 
136.16 	or regarding compliance with applicable laws or rules;
136.17 	(4) a license holder is excluded from any program administered by the commissioner 
136.18 	under section 142A.12;
136.19 	(5) revocation is required under section 142B.10, subdivision 14, paragraph (d);
136.20 	(6) for a family foster setting, a license holder, or an individual living in the household 
136.21 	where the licensed services are provided or who is otherwise subject to a background study, 
136.22 	has nondisqualifying background study information, as described in section 245C.05, 
136.23 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
136.24 	children; or
136.25 	(7) suspension is necessary under subdivision 3, paragraph (b), clause (2).
136.26 	A license holder who has had a license issued under this chapter suspended, revoked, or 
136.27 	has been ordered to pay a fine must be given notice of the action by certified mail, by 
136.28 	personal service, or through the provider licensing and reporting hub. If mailed, the notice 
136.29 	must be mailed to the address shown on the application or the last known address of the 
136.30 	license holder. The notice must state in plain language the reasons the license was suspended 
136.31 	or revoked, or a fine was ordered.
136.32 	(b) If the license was suspended or revoked, the notice must inform the license holder 
136.33 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
137.1 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
137.2 	a license. The appeal of an order suspending or revoking a license must be made in writing 
137.3 	by certified mail, by personal service, or through the provider licensing and reporting hub. 
137.4 	If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar 
137.5 	days after the license holder receives notice that the license has been suspended or revoked. 
137.6 	If a request is made by personal service, it must be received by the commissioner within 
137.7 	ten calendar days after the license holder received the order. If the order is issued through 
137.8 	the provider hub, the appeal must be received by the commissioner within ten calendar days 
137.9 	from the date the commissioner issued the order through the hub. Except as provided in 
137.10 	subdivision 3, paragraph (c), if a license holder submits a timely appeal of an order 
137.11 	suspending or revoking a license, the license holder may continue to operate the program 
137.12 	as provided under section 142B.10, subdivision 14, paragraphs (i) and (j), until the 
137.13 	commissioner issues a final order on the suspension or revocation.
137.14 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
137.15 	holder of the responsibility for payment of fines and the right to a contested case hearing 
137.16 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
137.17 	order to pay a fine must be made in writing by certified mail, by personal service, or through 
137.18 	the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent 
137.19 	to the commissioner within ten calendar days after the license holder receives notice that 
137.20 	the fine has been ordered. If a request is made by personal service, it must be received by 
137.21 	the commissioner within ten calendar days after the license holder received the order. If the 
137.22 	order is issued through the provider hub, the appeal must be received by the commissioner 
137.23 	within ten calendar days from the date the commissioner issued the order through the hub.
137.24 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
137.25 	If the license holder fails to fully comply with the order, the commissioner may issue a 
137.26 	second fine or suspend the license until the license holder complies. If the license holder 
137.27 	receives state funds, the state, county, or municipal agencies or departments responsible for 
137.28 	administering the funds shall withhold payments and recover any payments made while the 
137.29 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
137.30 	until the commissioner issues a final order.
137.31 	(3) A license holder shall promptly notify the commissioner of children, youth, and 
137.32 	families, in writing, when a violation specified in the order to forfeit a fine is corrected. If 
137.33 	upon reinspection the commissioner determines that a violation has not been corrected as 
137.34 	indicated by the order to forfeit a fine, the commissioner may issue a second fine. The 
137.35 	commissioner shall notify the license holder by certified mail, by personal service, or through 
138.1 	the provider licensing and reporting hub that a second fine has been assessed. The license 
138.2 	holder may appeal the second fine as provided under this subdivision.
138.3 	(4) Fines shall be assessed as follows:
138.4 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
138.5 	child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 
138.6 	for which the license holder is determined responsible for the maltreatment under section 
138.7 	260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
138.8 	(ii) if the commissioner determines that a determination of maltreatment for which the 
138.9 	license holder is responsible is the result of maltreatment that meets the definition of serious 
138.10 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
138.11 	$5,000;
138.12 	(iii) for a program that operates out of the license holder's home and a program licensed 
138.13 	under Minnesota Rules, parts 9502.0300 to 9502.0445, the fine assessed against the license 
138.14 	holder shall not exceed $1,000 for each determination of maltreatment;
138.15 	(iv) the license holder shall forfeit $200 for each occurrence of a violation of law or rule 
138.16 	governing matters of health, safety, or supervision, including but not limited to the provision 
138.17 	of adequate staff-to-child or adult ratios, and failure to comply with background study 
138.18 	requirements under chapter 245C; and
138.19 	(v) the license holder shall forfeit $100 for each occurrence of a violation of law or rule 
138.20 	other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).
138.21 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
138.22 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
138.23 	license holder will be personally liable for payment. In the case of a corporation, each 
138.24 	controlling individual is personally and jointly liable for payment.
138.25 	(d) Except for background study violations involving the failure to comply with an order 
138.26 	to immediately remove an individual or an order to provide continuous, direct supervision, 
138.27 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
138.28 	violation to a license holder who self-corrects a background study violation before the 
138.29 	commissioner discovers the violation. A license holder who has previously exercised the 
138.30 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
138.31 	a fine for a subsequent background study violation unless at least 365 days have passed 
138.32 	since the license holder self-corrected the earlier background study violation.
139.1 		Subd. 6.Appeal of multiple sanctions. (a) When the license holder appeals more than 
139.2 	one licensing action or sanction that were simultaneously issued by the commissioner, the 
139.3 	license holder shall specify the actions or sanctions that are being appealed.
139.4 	(b) If there are different timelines prescribed in statutes for the licensing actions or 
139.5 	sanctions being appealed, the license holder must submit the appeal within the longest of 
139.6 	those timelines specified in statutes.
139.7 	(c) The appeal must be made in writing by certified mail or personal service. If mailed, 
139.8 	the appeal must be postmarked and sent to the commissioner within the prescribed timeline 
139.9 	with the first day beginning the day after the license holder receives the certified letter. If 
139.10 	a request is made by personal service, it must be received by the commissioner within the 
139.11 	prescribed timeline with the first day beginning the day after the license holder receives the 
139.12 	certified letter.
139.13 	(d) When there are different timelines prescribed in statutes for the appeal of licensing 
139.14 	actions or sanctions simultaneously issued by the commissioner, the commissioner shall 
139.15 	specify in the notice to the license holder the timeline for appeal as specified under paragraph 
139.16 	(b).
139.17 		Subd. 7.Time frame for conducting hearing. Within 15 working days of receipt of 
139.18 	the license holder's timely appeal of a sanction under this section other than a temporary 
139.19 	immediate suspension, the commissioner shall request assignment of an administrative law 
139.20 	judge. The commissioner's request must include a proposed date, time, and place of a hearing. 
139.21 	A hearing must be conducted by an administrative law judge within 90 calendar days of the 
139.22 	request for assignment, unless an extension is requested by either party and granted by the 
139.23 	administrative law judge for good cause or for purposes of discussing settlement. In no case 
139.24 	shall one or more extensions be granted for a total of more than 90 calendar days unless 
139.25 	there is a criminal or juvenile court action pending against the license holder or another 
139.26 	individual subject to a background study.

139.27 	Sec. 11. [142B.19] DISQUALIFIED INDIVIDUAL; DENIAL, CONDITIONAL 
139.28 	LICENSE, REVOCATION.
139.29 	(a) For the purpose of keeping a disqualified individual away from individuals receiving 
139.30 	services in a license holder's home, when the disqualified individual has not received a 
139.31 	set-aside and a variance has not been granted under chapter 245C, the commissioner may 
139.32 	issue:
139.33 	(1) an order of denial of an application;
140.1 	(2) an order of conditional license; or
140.2 	(3) an order of revocation.
140.3 	(b) An order issued by the commissioner under this section is subject to notice and appeal 
140.4 	rights provided under this chapter as follows:
140.5 	(1) an order of denial of an application according to section 142B.15;
140.6 	(2) an order of conditional license according to section 142B.16; and
140.7 	(3) an order of revocation of a license according to section 142B.18.

140.8 	Sec. 12. [142B.20] HEARINGS.
140.9 		Subdivision 1.Receipt of appeal; conduct of hearing. Upon receiving a timely appeal 
140.10 	or petition pursuant to section 142B.15; 142B.18, subdivision 6; or 245C.28, the 
140.11 	commissioner shall issue a notice of and order for hearing to the appellant under chapter 
140.12 	14 and Minnesota Rules, parts 1400.8505 to 1400.8612.
140.13 		Subd. 2.Conduct of hearings. At any hearing provided for by section 142B.15; 142B.18, 
140.14 	subdivision 6; or 245C.28, the appellant may be represented by counsel and has the right 
140.15 	to call, examine, and cross-examine witnesses. The administrative law judge may require 
140.16 	the presence of witnesses and evidence by subpoena on behalf of any party.
140.17 		Subd. 3.Consolidated contested case hearings. (a) When a denial of a license under 
140.18 	section 142B.15 or a licensing sanction under section 142B.18, subdivision 6, is based on 
140.19 	a disqualification for which reconsideration was timely requested and which was not set 
140.20 	aside under section 245C.22, the scope of the contested case hearing shall include the 
140.21 	disqualification and the licensing sanction or denial of a license, unless otherwise specified 
140.22 	in this subdivision. When the licensing sanction or denial of a license is based on a 
140.23 	determination of maltreatment under section 626.557 or chapter 260E, or a disqualification 
140.24 	for serious or recurring maltreatment that was not set aside, the scope of the contested case 
140.25 	hearing shall include the maltreatment determination, disqualification, and the licensing 
140.26 	sanction or denial of a license, unless otherwise specified in this subdivision. In these cases, 
140.27 	a fair hearing under section 142A.20 shall not be conducted as provided in sections 245C.27, 
140.28 	260E.33, and 626.557, subdivision 9d.
140.29 	(b) Except for family child care and child foster care, reconsideration of a maltreatment 
140.30 	determination under sections 260E.33 and 626.557, subdivision 9d, and reconsideration of 
140.31 	a disqualification under section 245C.22, shall not be conducted when:
141.1 	(1) a denial of a license under section 142B.15, or a licensing sanction under section 
141.2 	142B.18, is based on a determination that the license holder is responsible for maltreatment 
141.3 	or the disqualification of a license holder is based on serious or recurring maltreatment;
141.4 	(2) the denial of a license or licensing sanction is issued at the same time as the 
141.5 	maltreatment determination or disqualification; and
141.6 	(3) the license holder appeals the maltreatment determination or disqualification, and 
141.7 	denial of a license or licensing sanction. In these cases, a fair hearing shall not be conducted 
141.8 	under sections 245C.27, 260E.33, and 626.557, subdivision 9d. The scope of the contested 
141.9 	case hearing must include the maltreatment determination, disqualification, and denial of 
141.10 	a license or licensing sanction.
141.11 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
141.12 	determination or disqualification, but does not appeal the denial of a license or a licensing 
141.13 	sanction, reconsideration of the maltreatment determination shall be conducted under sections 
141.14 	260E.33 and 626.557, subdivision 9d, and reconsideration of the disqualification shall be 
141.15 	conducted under section 245C.22. In such cases, a fair hearing shall also be conducted as 
141.16 	provided under sections 245C.27, 260E.33, and 626.557, subdivision 9d.
141.17 	(c) In consolidated contested case hearings regarding sanctions issued in family child 
141.18 	care and child foster care, the county attorney shall defend the commissioner's orders in 
141.19 	accordance with section 142B.30, subdivision 4.
141.20 	(d) The commissioner's final order under subdivision 6 is the final agency action on the 
141.21 	issue of maltreatment and disqualification, including for purposes of subsequent background 
141.22 	studies under chapter 245C and is the only administrative appeal of the final agency 
141.23 	determination, including a challenge to the accuracy and completeness of data under section 
141.24 	13.04.
141.25 	(e) When consolidated hearings under this subdivision involve a licensing sanction based 
141.26 	on a previous maltreatment determination for which the commissioner has issued a final 
141.27 	order in an appeal of that determination under section 142A.20 or the individual failed to 
141.28 	exercise the right to appeal the previous maltreatment determination under section 260E.33 
141.29 	or 626.557, subdivision 9d, the commissioner's order is conclusive on the issue of 
141.30 	maltreatment. In such cases, the scope of the administrative law judge's review shall be 
141.31 	limited to the disqualification and the licensing sanction or denial of a license. In the case 
141.32 	of a denial of a license or a licensing sanction issued to a facility based on a maltreatment 
141.33 	determination regarding an individual who is not the license holder or a household member, 
141.34 	the scope of the administrative law judge's review includes the maltreatment determination.
142.1 	(f) The hearings of all parties may be consolidated into a single contested case hearing 
142.2 	upon consent of all parties and the administrative law judge, if:
142.3 	(1) a maltreatment determination or disqualification that was not set aside under section 
142.4 	245C.22 is the basis for a denial of a license under section 245A.05 or a licensing sanction 
142.5 	under section 245A.07;
142.6 	(2) the disqualified subject is an individual other than the license holder and upon whom 
142.7 	a background study must be conducted under section 245C.03; and
142.8 	(3) the individual has a hearing right under section 245C.27.
142.9 	(g) When a denial of a license under section 142B.15 or a licensing sanction under 
142.10 	section 142B.18 is based on a disqualification for which reconsideration was requested and 
142.11 	was not set aside under section 245C.22, and the individual otherwise has no hearing right 
142.12 	under section 245C.27, the scope of the administrative law judge's review shall include the 
142.13 	denial or sanction and a determination whether the disqualification should be set aside, 
142.14 	unless section 245C.24 prohibits the set-aside of the disqualification. In determining whether 
142.15 	the disqualification should be set aside, the administrative law judge shall consider the 
142.16 	factors under section 245C.22, subdivision 4, to determine whether the individual poses a 
142.17 	risk of harm to any person receiving services from the license holder.
142.18 	(h) Notwithstanding section 245C.30, subdivision 5, when a licensing sanction under 
142.19 	section 142B.18 is based on the termination of a variance under section 245C.30, subdivision 
142.20 	4, the scope of the administrative law judge's review shall include the sanction and a 
142.21 	determination whether the disqualification should be set aside, unless section 245C.24 
142.22 	prohibits the set-aside of the disqualification. In determining whether the disqualification 
142.23 	should be set aside, the administrative law judge shall consider the factors under section 
142.24 	245C.22, subdivision 4, to determine whether the individual poses a risk of harm to any 
142.25 	person receiving services from the license holder.
142.26 		Subd. 4.Burden of proof. (a) At a hearing regarding a licensing sanction under section 
142.27 	142B.18, including consolidated hearings under subdivision 3, the commissioner may 
142.28 	demonstrate reasonable cause for action taken by submitting statements, reports, or affidavits 
142.29 	to substantiate the allegations that the license holder failed to comply fully with applicable 
142.30 	law or rule. If the commissioner demonstrates that reasonable cause existed, the burden of 
142.31 	proof shifts to the license holder to demonstrate by a preponderance of the evidence that 
142.32 	the license holder was in full compliance with those laws or rules that the commissioner 
142.33 	alleges the license holder violated, at the time that the commissioner alleges the violations 
142.34 	of law or rules occurred.
143.1 	(b) At a hearing on denial of an application, the applicant bears the burden of proof to 
143.2 	demonstrate by a preponderance of the evidence that the appellant has complied fully with 
143.3 	this chapter and other applicable law or rule and that the application should be approved 
143.4 	and a license granted.
143.5 		Subd. 5.Recommendation of administrative law judge. The administrative law judge 
143.6 	shall recommend whether or not the commissioner's order should be affirmed. The 
143.7 	recommendations must be consistent with this chapter and the rules of the commissioner. 
143.8 	The recommendations must be in writing and accompanied by findings of fact and 
143.9 	conclusions and must be mailed to the parties by certified mail to their last known addresses 
143.10 	as shown on the license or application.
143.11 		Subd. 6.Notice of commissioner's final order. After considering the findings of fact, 
143.12 	conclusions, and recommendations of the administrative law judge, the commissioner shall 
143.13 	issue a final order. The commissioner shall consider, but shall not be bound by, the 
143.14 	recommendations of the administrative law judge. The appellant must be notified of the 
143.15 	commissioner's final order as required by chapter 14 and Minnesota Rules, parts 1400.8505 
143.16 	to 1400.8612. The notice must also contain information about the appellant's rights under 
143.17 	chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The institution of 
143.18 	proceedings for judicial review of the commissioner's final order shall not stay the 
143.19 	enforcement of the final order except as provided in section 14.65.
143.20 		Subd. 7.Granting subsequent license. (a) A license holder and each controlling 
143.21 	individual of a license holder whose license has been revoked under this chapter or chapter 
143.22 	245A because of noncompliance with applicable law or rule must not be granted a license 
143.23 	for five years following the revocation. Notwithstanding the five-year restriction, when a 
143.24 	license is revoked under this chapter or chapter 245A because a person, other than the license 
143.25 	holder, resides in the home where services are provided and that person has a disqualification 
143.26 	that is not set aside and no variance has been granted, the former license holder may reapply 
143.27 	for a license when:
143.28 	(1) the person with a disqualification, who is not a minor child, is no longer residing in 
143.29 	the home and is prohibited from residing in or returning to the home; or
143.30 	(2) the person with the disqualification is a minor child, the restriction applies until the 
143.31 	minor child becomes an adult and permanently moves away from the home or five years, 
143.32 	whichever is less.
143.33 	(b) An applicant or controlling individual whose application was denied under this 
143.34 	chapter or chapter 245A must not be granted a license for two years following a denial, 
144.1 	unless the applicant's subsequent application contains new information which constitutes a 
144.2 	substantial change in the conditions that caused the previous denial. The addition of a new 
144.3 	co-applicant in a subsequent application does not constitute a substantial change. If an 
144.4 	applicant or controlling individual whose application was denied under this chapter or 
144.5 	chapter 245A is affiliated with a subsequent application, and two years have not passed 
144.6 	since the denial, the subsequent application must be denied.

144.7 	Sec. 13. [142B.21] SETTLEMENT AGREEMENT.
144.8 	(a) A license holder who has made a timely appeal pursuant to section 142B.16, 
144.9 	subdivision 4, or 142B.18, subdivision 6, or the commissioner may initiate a discussion 
144.10 	about a possible settlement agreement related to the licensing sanction. For the purposes of 
144.11 	this section, the following conditions apply to a settlement agreement reached by the parties:
144.12 	(1) if the parties enter into a settlement agreement, the effect of the agreement shall be 
144.13 	that the appeal is withdrawn and the agreement shall constitute the full agreement between 
144.14 	the commissioner and the party who filed the appeal; and
144.15 	(2) the settlement agreement must identify the agreed-upon actions the license holder 
144.16 	has taken and will take in order to achieve and maintain compliance with the licensing 
144.17 	requirements that the commissioner determined the license holder had violated.
144.18 	(b) Neither the license holder nor the commissioner is required to initiate a settlement 
144.19 	discussion under this section.
144.20 	(c) If a settlement discussion is initiated by the license holder, the commissioner shall 
144.21 	respond to the license holder within 14 calendar days of receipt of the license holder's 
144.22 	submission.
144.23 	(d) If the commissioner agrees to engage in settlement discussions, the commissioner 
144.24 	may decide at any time not to continue settlement discussions with a license holder.

144.25 	Sec. 14. [142B.22] CONSOLIDATION OF HEARINGS; RECONSIDERATION.
144.26 	Hearings authorized under this chapter, sections 142A.20 and 626.557, and chapters 
144.27 	245C and 260E pursuant to the commissioner's power under section 142A.09 must be 
144.28 	consolidated if feasible and in accordance with other applicable statutes and rules.

144.29 	Sec. 15. [142B.25] CLOSING A LICENSE.
144.30 		Subdivision 1.Inactive programs. The commissioner may close a license if the 
144.31 	commissioner determines that a licensed program has not been serving any client for a 
145.1 	consecutive period of 12 months or longer. The license holder is not prohibited from 
145.2 	reapplying for a license if the license holder's license was closed under this chapter.
145.3 		Subd. 2.Reconsideration of closure. If a license is closed, the commissioner must 
145.4 	notify the license holder of closure by certified mail, by personal service, or through the 
145.5 	provider licensing and reporting hub. If mailed, the notice of closure must be mailed to the 
145.6 	last known address of the license holder and must inform the license holder why the license 
145.7 	was closed and that the license holder has the right to request reconsideration of the closure. 
145.8 	If the license holder believes that the license was closed in error, the license holder may ask 
145.9 	the commissioner to reconsider the closure. The license holder's request for reconsideration 
145.10 	must be made in writing and must include documentation that the licensed program has 
145.11 	served a client in the previous 12 months. The request for reconsideration must be postmarked 
145.12 	and sent to the commissioner or submitted through the provider licensing and reporting hub 
145.13 	within 20 calendar days after the license holder receives the notice of closure. Upon 
145.14 	implementation of the provider licensing and reporting hub, the provider must use the hub 
145.15 	to request reconsideration. If the order is issued through the provider hub, the reconsideration 
145.16 	must be received by the commissioner within 20 calendar days from the date the 
145.17 	commissioner issued the order through the hub. A timely request for reconsideration stays 
145.18 	imposition of the license closure until the commissioner issues a decision on the request for 
145.19 	reconsideration.
145.20 		Subd. 3.Reconsideration final. The commissioner's disposition of a request for 
145.21 	reconsideration is final and not subject to appeal under chapter 14.

145.22 	Sec. 16. [142B.30] STANDARDS FOR COUNTY AGENCIES AND PRIVATE 
145.23 	AGENCIES.
145.24 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and private 
145.25 	agencies that have been designated or licensed by the commissioner to perform licensing 
145.26 	functions and activities under section 142B.10 and background studies for family child care 
145.27 	under chapter 245C; to recommend denial of applicants under section 142B.15; to issue 
145.28 	correction orders, to issue variances, and to recommend a conditional license under section 
145.29 	142B.16; or to recommend suspending or revoking a license or issuing a fine under section 
145.30 	142B.18, shall comply with rules and directives of the commissioner governing those 
145.31 	functions and with this section. The following variances are excluded from the delegation 
145.32 	of variance authority and may be issued only by the commissioner:
145.33 	(1) dual licensure of family child care and family child foster care, dual licensure of 
145.34 	family child foster care and family adult foster care, dual licensure of child foster residence 
146.1 	setting and community residential setting, and dual licensure of family adult foster care and 
146.2 	family child care;
146.3 	(2) child foster care maximum age requirement;
146.4 	(3) variances regarding disqualified individuals;
146.5 	(4) variances to requirements relating to chemical use problems of a license holder or a 
146.6 	household member of a license holder; and
146.7 	(5) variances to section 142B.74 for a time-limited period. If the commissioner grants 
146.8 	a variance under this clause, the license holder must provide notice of the variance to all 
146.9 	parents and guardians of the children in care.
146.10 	Except as provided in section 142B.41, subdivision 4, paragraph (e), a county agency must 
146.11 	not grant a license holder a variance to exceed the maximum allowable family child care 
146.12 	license capacity of 14 children.
146.13 	(b) A county agency that has been designated by the commissioner to issue family child 
146.14 	care variances must:
146.15 	(1) publish the county agency's policies and criteria for issuing variances on the county's 
146.16 	public website and update the policies as necessary; and
146.17 	(2) annually distribute the county agency's policies and criteria for issuing variances to 
146.18 	all family child care license holders in the county.
146.19 	(c) Before the implementation of NETStudy 2.0, county agencies must report information 
146.20 	about disqualification reconsiderations under sections 245C.25 and 245C.27, subdivision 
146.21 	2, paragraphs (a) and (b), and variances granted under paragraph (a), clause (5), to the 
146.22 	commissioner at least monthly in a format prescribed by the commissioner.
146.23 	(d) For family child care programs, the commissioner shall require a county agency to 
146.24 	conduct one unannounced licensing review at least annually.
146.25 	(e) A license issued under this section may be issued for up to two years.
146.26 	(f) A county agency shall report to the commissioner, in a manner prescribed by the 
146.27 	commissioner, the following information for a licensed family child care program:
146.28 	(1) the results of each licensing review completed, including the date of the review, and 
146.29 	any licensing correction order issued;
146.30 	(2) any death, serious injury, or determination of substantiated maltreatment; and
147.1 	(3) any fires that require the service of a fire department within 48 hours of the fire. The 
147.2 	information under this clause must also be reported to the state fire marshal within two 
147.3 	business days of receiving notice from a licensed family child care provider.
147.4 		Subd. 2.Investigations. (a) The county or private agency shall conduct timely 
147.5 	investigations of allegations of license violations in programs for which the county or private 
147.6 	agency is the commissioner's designated representative and record a disposition of each 
147.7 	complaint in accordance with applicable law or rule.
147.8 	(b) If an investigation conducted under paragraph (a) results in evidence that the 
147.9 	commissioner should deny an application or suspend, revoke, or make conditional a license, 
147.10 	the county or private agency shall make that recommendation to the commissioner within 
147.11 	ten working days.
147.12 		Subd. 3.Recommendations to commissioner. The county or private agency shall not 
147.13 	make recommendations to the commissioner regarding licensure without first conducting 
147.14 	an inspection. The county or private agency must forward its recommendation to the 
147.15 	commissioner regarding the appropriate licensing action within 20 working days of receipt 
147.16 	of a completed application.
147.17 		Subd. 4.Enforcement of commissioner's orders. The county or private agency shall 
147.18 	enforce the orders of the commissioner of children, youth, and families under sections 
147.19 	142B.18 and 142B.20, subdivision 6, and the orders of the commissioner of human services 
147.20 	under chapter 245C, according to the instructions of the commissioner of children, youth, 
147.21 	and families. The county attorney shall assist the county agency in the enforcement and 
147.22 	defense of the orders of the commissioner of children, youth, and families under sections 
147.23 	142B.18 and 142B.20, subdivision 6, and the orders of the commissioner of human services 
147.24 	under chapter 245C, according to the instructions of the commissioner of children, youth, 
147.25 	and families, unless a conflict of interest exists between the county attorney and the 
147.26 	commissioner. For purposes of this section, a conflict of interest means that the county 
147.27 	attorney has a direct or shared financial interest with the license holder or has a personal 
147.28 	relationship or family relationship with a party in the licensing action.
147.29 		Subd. 5.Instruction and technical assistance. (a) The commissioner shall provide 
147.30 	instruction and technical assistance to county and private agencies that are subject to this 
147.31 	section. County and private agencies shall cooperate with the commissioner in carrying out 
147.32 	this section by ensuring that affected employees participate in instruction and technical 
147.33 	assistance provided by the commissioner.
148.1 	(b) The commissioner shall provide training to county agencies that perform child care 
148.2 	licensing functions on identifying and preventing fraud relating to provider reimbursement 
148.3 	in the child care assistance program.
148.4 		Subd. 6.Certification by commissioner. The commissioner shall ensure that rules are 
148.5 	uniformly enforced throughout the state by reviewing each county and private agency for 
148.6 	compliance with this section and other applicable laws and rules at least every four years. 
148.7 	County agencies that comply with this section shall be certified by the commissioner. If a 
148.8 	county agency fails to be certified by the commissioner, the commissioner shall certify a 
148.9 	reduction of state administrative aids in an amount up to 20 percent of the county's state 
148.10 	portion of Vulnerable Children and Adults Act funding.
148.11 		Subd. 7.Notice of county recommendation. The county or private agency shall provide 
148.12 	written notice to the license holder when the agency recommends a licensing action to the 
148.13 	commissioner under subdivision 2 or 3. The written notice shall inform the license holder 
148.14 	about the process for determining a licensing action and how the license holder will be 
148.15 	notified of a licensing action determination. The notice shall include the following:
148.16 	(1) that the county or private agency made a recommendation to the commissioner to 
148.17 	deny an application or suspend, revoke, or make conditional a license;
148.18 	(2) that the commissioner will review the recommendation from the county or private 
148.19 	agency and then determine if a licensing action will be issued;
148.20 	(3) that the license holder will receive written notice from the commissioner indicating 
148.21 	the reasons for the licensing action issued; and
148.22 	(4) instructions on how to request reconsideration or appeal, if a licensing action is 
148.23 	issued.
148.24 	County or private agency recommendations under this section are classified as confidential 
148.25 	data under chapter 13 and may only be disclosed as permitted by law.
148.26 		Subd. 8.Licensing and reporting hub. Upon implementation of the provider licensing 
148.27 	and reporting hub, county staff who perform licensing functions must use the hub in the 
148.28 	manner prescribed by the commissioner.

148.29 	Sec. 17. [142B.31] PUBLIC FUNDS PROGRAM INTEGRITY MONITORING.
148.30 	(a) An applicant or a license holder that has enrolled to receive public funding 
148.31 	reimbursement for services is required to comply with the registration or enrollment 
148.32 	requirements as licensing standards.
149.1 	(b) Compliance with the licensing standards established under paragraph (a) may be 
149.2 	monitored during a licensing investigation or inspection. Noncompliance with these licensure 
149.3 	standards may result in:
149.4 	(1) a correction order or a conditional license under section 142B.16, or sanctions under 
149.5 	section 142B.18;
149.6 	(2) nonpayment of claims submitted by the license holder for public program 
149.7 	reimbursement according to the statute applicable to that program;
149.8 	(3) recovery of payments made for the service according to the statute applicable to that 
149.9 	program;
149.10 	(4) disenrollment in the public payment program according to the statute applicable to 
149.11 	that program; or
149.12 	(5) a referral for other administrative, civil, or criminal penalties as provided by law.

149.13 	Sec. 18. [142B.40] SPECIAL CONDITIONS FOR RESIDENTIAL PROGRAMS.
149.14 		Subdivision 1.Policy statement. It is the policy of the state that persons shall not be 
149.15 	excluded by municipal zoning ordinances or other land use regulations from the benefits 
149.16 	of normal residential surroundings.
149.17 		Subd. 2.Permitted single-family residential use. Residential programs with a licensed 
149.18 	capacity of six or fewer persons shall be considered a permitted single-family residential 
149.19 	use of property for the purposes of zoning and other land use regulations, except that a 
149.20 	residential program whose primary purpose is to treat juveniles who have violated criminal 
149.21 	statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct 
149.22 	in violation of criminal statutes relating to sex offenses shall not be considered a permitted 
149.23 	use. This exception shall not apply to residential programs licensed before July 1, 1995. 
149.24 	Programs otherwise allowed under this subdivision shall not be prohibited by operation of 
149.25 	restrictive covenants or similar restrictions, regardless of when entered into, that cannot be 
149.26 	met because of the nature of the licensed program, including provisions that require the 
149.27 	home's occupants be related, and that the home must be occupied by the owner, or similar 
149.28 	provisions.
149.29 		Subd. 3.License holder qualifications for child foster care.  (a) Child foster care 
149.30 	license holders must maintain the ability to care for a foster child and ensure a safe home 
149.31 	environment for children placed in their care. License holders must immediately notify the 
149.32 	licensing agency of:
150.1 	(1) any changes to the license holder or household member's physical or behavioral 
150.2 	health that may affect the license holder's ability to care for a foster child or pose a risk to 
150.3 	a foster child's health; or
150.4 	(2) changes related to the care of a child or vulnerable adult for whom the license holder 
150.5 	is a parent or legally responsible, including living out of the home for treatment for physical 
150.6 	or behavioral health, modified parenting time arrangements, legal custody, or placement in 
150.7 	foster care.
150.8 	(b) The licensing agency may request a license holder or household member to undergo 
150.9 	an evaluation by a specialist in areas such as physical or behavioral health to evaluate the 
150.10 	license holder's ability to provide a safe environment for a foster child. Prior to assigning 
150.11 	a specialist to evaluate, the licensing agency must tell the license holder or household 
150.12 	member why the licensing agency has requested a specialist evaluation and request a release 
150.13 	of information from the license holder or household member.

150.14 	Sec. 19. [142B.41] SPECIAL CONDITIONS FOR NONRESIDENTIAL PROGRAMS.
150.15 		Subdivision 1.Permitted single-family residential use. A licensed nonresidential 
150.16 	program with a licensed capacity of 12 or fewer persons and a group family day care facility 
150.17 	licensed under Minnesota Rules, parts 9502.0315 to 9502.0445, to serve 14 or fewer children 
150.18 	shall be considered a permitted single-family residential use of property for the purposes 
150.19 	of zoning and other land use regulations.
150.20 		Subd. 2.Permitted multifamily use. Except as otherwise provided in subdivision 1 or 
150.21 	in a town, municipal, or county regulation, a licensed nonresidential program with a licensed 
150.22 	capacity of 13 to 16 persons shall be considered a permitted multifamily residential use of 
150.23 	property for purposes of zoning. A town, municipal, or county zoning authority may require 
150.24 	a conditional use or special use permit in order to assure proper maintenance and operation 
150.25 	of the program. Conditions imposed on the nonresidential program must not be more 
150.26 	restrictive than those imposed on other conditional uses or special uses of residential property 
150.27 	in the same zones unless the additional conditions are necessary to protect the health and 
150.28 	safety of the persons being served by the nonresidential program. Nothing in this chapter 
150.29 	shall be construed to exclude or prohibit nonresidential programs from single-family zones 
150.30 	if otherwise permitted by local zoning regulations.
150.31 		Subd. 3.Attendance records for publicly funded services. (a) A child care center 
150.32 	licensed under this chapter and according to Minnesota Rules, chapter 9503, must maintain 
150.33 	documentation of actual attendance for each child receiving care for which the license holder 
150.34 	is reimbursed by a governmental program. The records must be accessible to the 
151.1 	commissioner during the program's hours of operation, they must be completed on the actual 
151.2 	day of attendance, and they must include:
151.3 	(1) the first and last name of the child;
151.4 	(2) the time of day that the child was dropped off; and
151.5 	(3) the time of day that the child was picked up.
151.6 	(b) A family child care provider licensed under this chapter and according to Minnesota 
151.7 	Rules, chapter 9502, must maintain documentation of actual attendance for each child 
151.8 	receiving care for which the license holder is reimbursed for the care of that child by a 
151.9 	governmental program. The records must be accessible to the commissioner during the 
151.10 	program's hours of operation, they must be completed on the actual day of attendance, and 
151.11 	they must include:
151.12 	(1) the first and last name of the child;
151.13 	(2) the time of day that the child was dropped off; and
151.14 	(3) the time of day that the child was picked up.

151.15 	Sec. 20. [142B.42] VOLUNTARY RECEIVERSHIP FOR RESIDENTIAL OR 
151.16 	NONRESIDENTIAL PROGRAMS.
151.17 		Subdivision 1.Definitions. For purposes of this section and section 142B.43, the 
151.18 	following terms have the meanings given.
151.19 	(a) "Controlling individual" has the meaning in section 142B.01, subdivision 8. When 
151.20 	used in this section and section 142B.43, it means only those individuals controlling the 
151.21 	residential or nonresidential program prior to the commencement of the receivership period.
151.22 	(b) "Physical plant" means the building or buildings in which a residential or 
151.23 	nonresidential program is located; all equipment affixed to the building and not easily subject 
151.24 	to transfer as specified in the building and fixed equipment tables of the depreciation 
151.25 	guidelines; and auxiliary buildings in the nature of sheds, garages, and storage buildings 
151.26 	located on the same site if used for purposes related to resident or client care.
151.27 	(c) "Related party" means a person who is a close relative of a provider or a provider 
151.28 	group; an affiliate of a provider or a provider group; a close relative of an affiliate of a 
151.29 	provider or provider group; or an affiliate of a close relative of an affiliate of a provider or 
151.30 	provider group. For the purposes of this paragraph, the following terms have the meanings 
151.31 	given them.
152.1 	(1) "Affiliate" means a person that directly, or indirectly through one or more 
152.2 	intermediaries, controls, or is controlled by, or is under common control with another person.
152.3 	(2) "Person" means an individual, a corporation, a partnership, an association, a trust, 
152.4 	an unincorporated organization, or a government or political subdivision.
152.5 	(3) "Close relative of an affiliate of a provider or provider group" means an individual 
152.6 	whose relationship by blood, marriage, or adoption to an individual who is an affiliate to a 
152.7 	provider or a provider group is no more remote than first cousin.
152.8 	(4) "Control" includes the terms "controlling," "controlled by," and "under common 
152.9 	control with" and means the possession, direct or indirect, of the power to direct or cause 
152.10 	the direction of the management, operations, or policies of a person, whether through the 
152.11 	ownership of voting securities, by contract, or otherwise.
152.12 	(5) "Provider or provider group" means the license holder or controlling individual prior 
152.13 	to the effective date of the receivership.
152.14 		Subd. 2.Receivership agreement. A majority of controlling individuals of a residential 
152.15 	or nonresidential program licensed or certified by the commissioner may at any time ask 
152.16 	the commissioner to assume operation of the program through appointment of a receiver. 
152.17 	On receiving the request for a receiver, the commissioner may enter into an agreement with 
152.18 	a majority of controlling individuals and become the receiver and operate the residential or 
152.19 	nonresidential program under conditions acceptable to both the commissioner and the 
152.20 	majority of controlling individuals. The agreement must specify the terms and conditions 
152.21 	of the receivership and preserve the rights of the persons being served by the program. A 
152.22 	receivership set up under this section terminates at the time specified by the parties to the 
152.23 	agreement.
152.24 		Subd. 3.Management agreement. When the commissioner agrees to become the 
152.25 	receiver of a residential or nonresidential program, the commissioner may enter into a 
152.26 	management agreement with another entity or group to act as the managing agent during 
152.27 	the receivership period. The managing agent will be responsible for the day-to-day operations 
152.28 	of the program subject at all times to the review and approval of the commissioner. A 
152.29 	reasonable fee may be paid to the managing agent for the performance of these services.
152.30 		Subd. 4.Controlling individuals; restrictions on licensure. No controlling individual 
152.31 	of a residential or nonresidential program placed into receivership under this section shall 
152.32 	apply for or receive a license or certification from the commissioner to operate a residential 
152.33 	or nonresidential program for five years from the commencement of the receivership period. 
152.34 	This subdivision does not apply to residential programs that are owned or operated by 
153.1 	controlling individuals, that were in existence prior to the date of the receivership agreement, 
153.2 	and that have not been placed into receivership.
153.3 		Subd. 5.Liability. The controlling individuals of a residential or nonresidential program 
153.4 	placed into receivership remain liable for any claims made against the program that arose 
153.5 	from incidents or events that occurred prior to the commencement of the receivership period. 
153.6 	Neither the commissioner nor the managing agent of the commissioner assumes this liability.
153.7 		Subd. 6.Liability for financial obligations. Neither the commissioner nor the managing 
153.8 	agent of the commissioner shall be liable for payment of any financial obligations of the 
153.9 	residential or nonresidential program or of its controlling individuals incurred prior to the 
153.10 	commencement of the receivership period unless such liability is expressly assumed in the 
153.11 	receivership agreement. Those financial obligations remain the liability of the program and 
153.12 	its controlling individuals. Financial obligations of the program incurred after the 
153.13 	commencement of the receivership period are the responsibility of the commissioner or the 
153.14 	managing agent of the commissioner to the extent such obligations are expressly assumed 
153.15 	by each in the receivership or management agreements. The controlling individuals of the 
153.16 	residential or nonresidential program remain liable for any financial obligations incurred 
153.17 	after the commencement of the receivership period to the extent these obligations are not 
153.18 	reimbursed in the rate paid to the program and are reasonable and necessary to the operation 
153.19 	of the program. These financial obligations, or any other financial obligations incurred by 
153.20 	the program prior to the commencement of the receivership period that are necessary to the 
153.21 	continued operation of the program, may be deducted from any rental payments owed to 
153.22 	the controlling individuals of the program as part of the receivership agreement.
153.23 		Subd. 7.Physical plant of the residential or nonresidential program. Occupation of 
153.24 	the physical plant after commencement of the receivership period shall be controlled by 
153.25 	paragraphs (a) and (b).
153.26 	(a) If the physical plant of a residential or nonresidential program placed in receivership 
153.27 	is owned by a controlling individual or related party, the physical plant may be used by the 
153.28 	commissioner or the managing agent for purposes of the receivership as long as the 
153.29 	receivership period continues. A fair monthly rental for the physical plant shall be paid by 
153.30 	the commissioner or managing agent to the owner of the physical plant. This fair monthly 
153.31 	rental shall be determined by considering all relevant factors necessary to meet required 
153.32 	arm's-length obligations of controlling individuals such as the mortgage payments owed on 
153.33 	the physical plant, the real estate taxes, and special assessments. This rental shall not include 
153.34 	any allowance for profit or be based on any formula that includes an allowance for profit.
154.1 	(b) If the owner of the physical plant of a residential or nonresidential program placed 
154.2 	in receivership is not a related party, the controlling individual shall continue as the lessee 
154.3 	of the property. However, during the receivership period, rental payments shall be made to 
154.4 	the owner of the physical plant by the commissioner or the managing agent on behalf of 
154.5 	the controlling individual. Neither the commissioner nor the managing agent assumes the 
154.6 	obligations of the lease unless expressly stated in the receivership agreement. Should the 
154.7 	lease expire during the receivership, the commissioner or the managing agent may negotiate 
154.8 	a new lease for the term of the receivership period.
154.9 		Subd. 8.Receivership accounting. The commissioner may use the medical assistance 
154.10 	account and funds for receivership cash flow and accounting purposes.
154.11 		Subd. 9.Receivership costs. The commissioner may use the accounts and funds that 
154.12 	would have been available for the room and board, services, and program costs of persons 
154.13 	in the program for costs, cash flow, and accounting purposes related to the receivership.

154.14 	Sec. 21. [142B.43] INVOLUNTARY RECEIVERSHIP FOR RESIDENTIAL OR 
154.15 	NONRESIDENTIAL PROGRAMS.
154.16 		Subdivision 1.Application. (a) In addition to any other remedy provided by law, the 
154.17 	commissioner may petition the district court in Ramsey County for an order directing the 
154.18 	controlling individuals of a residential or nonresidential program licensed or certified by 
154.19 	the commissioner to show cause why the commissioner should not be appointed receiver 
154.20 	to operate the program. The petition to the district court must contain proof by affidavit that 
154.21 	one or more of the following circumstances exists:
154.22 	(1) the commissioner has commenced proceedings to suspend or revoke the program's 
154.23 	license or refused to renew the program's license;
154.24 	(2) there is a threat of imminent abandonment by the program or its controlling 
154.25 	individuals;
154.26 	(3) the program has shown a pattern of failure to meet ongoing financial obligations 
154.27 	such as failing to pay for food, pharmaceuticals, personnel costs, or required insurance;
154.28 	(4) the health, safety, or rights of the residents or persons receiving care from the program 
154.29 	appear to be in jeopardy due to the manner in which the program may close, the program's 
154.30 	financial condition, or violations of federal or state law or rules committed by the program; 
154.31 	or
155.1 	(5) the commissioner has notified the program or its controlling individuals that the 
155.2 	program's federal Medicare or Medicaid provider agreement will be terminated, revoked, 
155.3 	canceled, or not renewed.
155.4 	(b) If the license holder, applicant, or controlling individual operates more than one 
155.5 	program, the commissioner's petition must specify and be limited to the program for which 
155.6 	it seeks receivership.
155.7 	(c) The order to show cause must be personally served on the program through its 
155.8 	authorized agent or, in the event the authorized agent cannot be located, on any controlling 
155.9 	individual for the program.
155.10 		Subd. 2.Appointment of receiver. (a) If the court finds that involuntary receivership 
155.11 	is necessary as a means of protecting the health, safety, or rights of persons being served 
155.12 	by the program, the court shall appoint the commissioner as receiver to operate the program. 
155.13 	The commissioner as receiver may contract with another entity or group to act as the 
155.14 	managing agent during the receivership period. The managing agent will be responsible for 
155.15 	the day-to-day operations of the program subject at all times to the review and approval of 
155.16 	the commissioner. A managing agent shall not:
155.17 	(1) be the license holder or controlling individual of the program;
155.18 	(2) have a financial interest in the program at the time of the receivership;
155.19 	(3) be otherwise affiliated with the program; or
155.20 	(4) have had a licensed program that has been ordered into receivership.
155.21 	(b) Notwithstanding state contracting requirements in chapter 16C, the commissioner 
155.22 	shall establish and maintain a list of qualified persons or entities with experience in delivering 
155.23 	services and with winding down programs under this chapter. The list shall be a resource 
155.24 	for selecting a managing agent, and the commissioner may update the list at any time.
155.25 		Subd. 3.Powers and duties of receiver. (a) A receiver appointed pursuant to this section 
155.26 	shall, within 18 months after the receivership order, determine whether to close the program 
155.27 	or to make other provisions with the intent to keep the program open. If the receiver 
155.28 	determines that program closure is appropriate, the commissioner shall provide for the 
155.29 	orderly transfer of individuals served by the program to other programs or make other 
155.30 	provisions to protect the health, safety, and rights of individuals served by the program.
155.31 	(b) During the receivership, the receiver or the managing agent shall correct or eliminate 
155.32 	deficiencies in the program that the commissioner determines endanger the health, safety, 
155.33 	or welfare of the persons being served by the program unless the correction or elimination 
156.1 	of deficiencies at a residential program involves major alteration in the structure of the 
156.2 	physical plant. If the correction or elimination of the deficiencies at a residential program 
156.3 	requires major alterations in the structure of the physical plant, the receiver shall take actions 
156.4 	designed to result in the immediate transfer of persons served by the residential program. 
156.5 	During the period of the receivership, the receiver and the managing agent shall operate the 
156.6 	residential or nonresidential program in a manner designed to preserve the health, safety, 
156.7 	rights, adequate care, and supervision of the persons served by the program.
156.8 	(c) The receiver or the managing agent may make contracts and incur lawful expenses.
156.9 	(d) The receiver or the managing agent shall use the building, fixtures, furnishings, and 
156.10 	any accompanying consumable goods in the provision of care and services to the clients 
156.11 	during the receivership period. The receiver shall take action as is reasonably necessary to 
156.12 	protect or conserve the tangible assets or property during receivership.
156.13 	(e) The receiver or the managing agent shall collect incoming payments from all sources 
156.14 	and apply them to the cost incurred in the performance of the functions of the receivership, 
156.15 	including the fee set under subdivision 7. No security interest in any real or personal property 
156.16 	comprising the program or contained within it, or in any fixture of the physical plant, shall 
156.17 	be impaired or diminished in priority by the receiver or the managing agent.
156.18 	(f) The receiver has authority to hire, direct, manage, and discharge any employees of 
156.19 	the program, including management-level staff for the program.
156.20 	(g) The commissioner, as the receiver appointed by the court, may hire a managing agent 
156.21 	to work on the commissioner's behalf to operate the program during the receivership. The 
156.22 	managing agent is entitled to a reasonable fee. The receiver and managing agent shall be 
156.23 	liable only in an official capacity for injury to persons and property by reason of the 
156.24 	conditions of the program. The receiver and managing agent shall not be personally liable, 
156.25 	except for gross negligence or intentional acts. The commissioner shall assist the managing 
156.26 	agent in carrying out the managing agent's duties.
156.27 		Subd. 4.Liability. The provisions contained in section 142B.42, subdivision 5, shall 
156.28 	also apply to receiverships ordered according to this section.
156.29 		Subd. 5.Liability for financial obligations. The provisions contained in section 142B.42, 
156.30 	subdivision 6, also apply to receiverships ordered according to this section.
156.31 		Subd. 6.Physical plant of the program. Occupation of the physical plant under an 
156.32 	involuntary receivership shall be governed by paragraphs (a) and (b).
157.1 	(a) The physical plant owned by a controlling individual of the program or related party 
157.2 	must be made available for the use of the program throughout the receivership period. The 
157.3 	court shall determine a fair monthly rental for the physical plant, taking into account all 
157.4 	relevant factors necessary to meet required arm's-length obligations of controlling individuals 
157.5 	such as mortgage payments, real estate taxes, and special assessments. The rental fee must 
157.6 	be paid by the receiver to the appropriate controlling individuals or related parties for each 
157.7 	month that the receivership remains in effect. No payment made to a controlling individual 
157.8 	or related party by the receiver or the managing agent or any state agency during a period 
157.9 	of the receivership shall include any allowance for profit or be based on any formula that 
157.10 	includes an allowance for profit.
157.11 	(b) If the owner of the physical plant of a program is not a related party, the court shall 
157.12 	order the controlling individual to continue as the lessee of the property during the 
157.13 	receivership period. Rental payments during the receivership period shall be made to the 
157.14 	owner of the physical plant by the commissioner or the managing agent on behalf of the 
157.15 	controlling individual.
157.16 		Subd. 7.Fee. A receiver appointed under an involuntary receivership or the managing 
157.17 	agent is entitled to a reasonable fee as determined by the court.
157.18 		Subd. 8.Termination. An involuntary receivership terminates 18 months after the date 
157.19 	on which it was ordered or at any other time designated by the court or when any of the 
157.20 	following events occurs:
157.21 	(1) the commissioner determines that the program's license or certification application 
157.22 	should be granted or should not be suspended or revoked;
157.23 	(2) a new license or certification is granted to the program;
157.24 	(3) the commissioner determines that all persons residing in a residential program have 
157.25 	been provided with alternative residential programs or that all persons receiving services 
157.26 	in a nonresidential program have been referred to other programs; or
157.27 	(4) the court determines that the receivership is no longer necessary because the conditions 
157.28 	that gave rise to the receivership no longer exist.
157.29 		Subd. 9.Emergency procedure. (a) If it appears from the petition filed under subdivision 
157.30 	1, from an affidavit or affidavits filed with the petition, or from testimony of witnesses 
157.31 	under oath if the court determines it necessary, that there is probable cause to believe that 
157.32 	an emergency exists in a residential or nonresidential program, the court shall issue a 
157.33 	temporary order for appointment of a receiver within two days after receipt of the petition.
158.1 	(b) Notice of the petition must be served on the authorized agent of the program that is 
158.2 	subject to the receivership petition or, if the authorized agent is not immediately available 
158.3 	for service, on at least one of the controlling individuals for the program. A hearing on the 
158.4 	petition must be held within five days after notice is served unless the authorized agent or 
158.5 	other controlling individual consents to a later date. After the hearing, the court may continue, 
158.6 	modify, or terminate the temporary order.
158.7 		Subd. 10.Receivership costs. The commissioner may use the accounts and funds that 
158.8 	would have been available for the room and board, services, and program costs of persons 
158.9 	in the program for costs, cash flow, and accounting purposes related to the receivership.
158.10 		Subd. 11.Controlling individuals; restrictions on licensure. No controlling individual 
158.11 	of a program placed into receivership under this section may apply for or receive a license 
158.12 	or certification to operate a residential or nonresidential program for five years from the 
158.13 	commencement of the receivership period. This subdivision does not apply to programs 
158.14 	that are owned or operated by controlling individuals that were in existence before the date 
158.15 	of the receivership agreement, and that have not been placed into receivership.

158.16 	Sec. 22. [142B.44] FIRE MARSHAL INSPECTION.
158.17 	When licensure under this chapter or certification under chapter 142C requires an 
158.18 	inspection by a fire marshal to determine compliance with the State Fire Code under section 
158.19 	299F.011, a local fire code inspector approved by the state fire marshal may conduct the 
158.20 	inspection. If a community does not have a local fire code inspector or if the local fire code 
158.21 	inspector does not perform the inspection, the state fire marshal must conduct the inspection. 
158.22 	A local fire code inspector or the state fire marshal may recover the cost of these inspections 
158.23 	through a fee of no more than $50 per inspection charged to the applicant or license holder 
158.24 	or license-exempt child care center certification holder. The fees collected by the state fire 
158.25 	marshal under this section are appropriated to the commissioner of public safety for the 
158.26 	purpose of conducting the inspections.

158.27 	Sec. 23. [142B.45] CRIB SAFETY REQUIREMENTS.
158.28 		Subdivision 1.Consumer product safety web link. The commissioners of children, 
158.29 	youth, and families and human services shall maintain a link from the licensing division 
158.30 	website to the United States Consumer Product Safety Commission website that addresses 
158.31 	crib safety information.

159.1 	Sec. 24. [142B.46] REDUCTION OF RISK OF SUDDEN UNEXPECTED INFANT 
159.2 	DEATH IN LICENSED PROGRAMS.
159.3 	(a) When a license holder is placing an infant to sleep, the license holder must place the 
159.4 	infant on the infant's back, unless the license holder has documentation from the infant's 
159.5 	physician, advanced practice registered nurse, or physician assistant directing an alternative 
159.6 	sleeping position for the infant. The physician, advanced practice registered nurse, or 
159.7 	physician assistant directive must be on a form developed by the commissioner and must 
159.8 	remain on file at the licensed location. An infant who independently rolls onto its stomach 
159.9 	after being placed to sleep on its back may be allowed to remain sleeping on its stomach if 
159.10 	the infant is at least six months of age or the license holder has a signed statement from the 
159.11 	parent indicating that the infant regularly rolls over at home.
159.12 	(b) The license holder must place the infant in a crib directly on a firm mattress with a 
159.13 	fitted sheet that is appropriate to the mattress size, that fits tightly on the mattress, and 
159.14 	overlaps the underside of the mattress so it cannot be dislodged by pulling on the corner of 
159.15 	the sheet with reasonable effort. The license holder must not place anything in the crib with 
159.16 	the infant except for the infant's pacifier, as defined in Code of Federal Regulations, title 
159.17 	16, part 1511. The pacifier must be free from any sort of attachment. The requirements of 
159.18 	this section apply to license holders serving infants younger than one year of age. Licensed 
159.19 	child care providers must meet the crib requirements under section 142B.45. A correction 
159.20 	order shall not be issued under this paragraph unless there is evidence that a violation 
159.21 	occurred when an infant was present in the license holder's care.
159.22 	(c) If an infant falls asleep before being placed in a crib, the license holder must move 
159.23 	the infant to a crib as soon as practicable, and must keep the infant within sight of the license 
159.24 	holder until the infant is placed in a crib. When an infant falls asleep while being held, the 
159.25 	license holder must consider the supervision needs of other children in care when determining 
159.26 	how long to hold the infant before placing the infant in a crib to sleep. The sleeping infant 
159.27 	must not be in a position where the airway may be blocked or with anything covering the 
159.28 	infant's face.
159.29 	(d) When a license holder places an infant under one year of age down to sleep, the 
159.30 	infant's clothing or sleepwear must not have weighted materials, a hood, or a bib.
159.31 	(e) A license holder may place an infant under one year of age down to sleep wearing 
159.32 	a helmet if the license holder has signed documentation by a physician, advanced practice 
159.33 	registered nurse, physician assistant, licensed occupational therapist, or licensed physical 
159.34 	therapist on a form developed by the commissioner.
160.1 	(f) Placing a swaddled infant down to sleep in a licensed setting is not recommended 
160.2 	for an infant of any age and is prohibited for any infant who has begun to roll over 
160.3 	independently. However, with the written consent of a parent or guardian according to this 
160.4 	paragraph, a license holder may place the infant who has not yet begun to roll over on its 
160.5 	own down to sleep in a swaddle. A swaddle is defined as a one-piece sleepwear that wraps 
160.6 	over the infant's arms, fastens securely only across the infant's upper torso, and does not 
160.7 	constrict the infant's hips or legs. If a swaddle is used by a license holder, the license holder 
160.8 	must ensure that it meets the requirements of paragraph (d) and is not so tight that it restricts 
160.9 	the infant's ability to breathe or so loose that the fabric could cover the infant's nose and 
160.10 	mouth. Prior to any use of swaddling for sleep by a provider licensed under this chapter, 
160.11 	the license holder must obtain informed written consent for the use of swaddling from the 
160.12 	parent or guardian of the infant on a form developed by the commissioner.
160.13 	(g) A license holder may request a variance to this section to permit the use of a 
160.14 	cradleboard when requested by a parent or guardian for a cultural accommodation. A variance 
160.15 	for the use of a cradleboard may be issued only by the commissioner licensing the program. 
160.16 	The variance request must be submitted on a form developed by the commissioner in 
160.17 	partnership with Tribal welfare agencies and the Department of Health.

160.18 	Sec. 25. [142B.49] CARE OF INDIVIDUALS ON MEDICAL MONITORING 
160.19 	EQUIPMENT.
160.20 		Subdivision 1.Licensed foster care and respite care. This section applies to foster 
160.21 	care agencies and licensed foster care providers who place, supervise, or care for individuals 
160.22 	who rely on medical monitoring equipment to sustain life or monitor a medical condition 
160.23 	that could become life-threatening without proper use of the medical equipment in respite 
160.24 	care or foster care.
160.25 		Subd. 2.Foster care agency requirements. In order for an agency to place an individual 
160.26 	who relies on medical equipment to sustain life or monitor a medical condition that could 
160.27 	become life-threatening without proper use of the medical equipment with a foster care 
160.28 	provider, the agency must ensure that the foster care provider has received the training to 
160.29 	operate such equipment as observed and confirmed by a qualified source, and that the 
160.30 	provider:
160.31 	(1) is currently caring for an individual who is using the same equipment in the foster 
160.32 	home; or
160.33 	(2) has written documentation that the foster care provider has cared for an individual 
160.34 	who relied on such equipment within the past six months; or
161.1 	(3) has successfully completed training with the individual being placed with the provider.
161.2 		Subd. 3.Foster care provider requirements. A foster care provider shall not care for 
161.3 	an individual who relies on medical equipment to sustain life or monitor a medical condition 
161.4 	unless the provider has received the training to operate such equipment as observed and 
161.5 	confirmed by a qualified source, and:
161.6 	(1) is currently caring for an individual who is using the same equipment in the foster 
161.7 	home; or
161.8 	(2) has written documentation that the foster care provider has cared for an individual 
161.9 	who relied on such equipment within the past six months; or
161.10 	(3) has successfully completed training with the individual being placed with the provider.
161.11 		Subd. 4.Qualified source definition. For purposes of this section, a "qualified source" 
161.12 	includes a health care professional or an individual who provides training on such equipment.
161.13 		Subd. 5.Foster care provider training and skills form. The agency supervising the 
161.14 	foster care provider shall keep a training and skills form on file for each foster care provider 
161.15 	and update the form annually. The agency placing the individual shall obtain a copy of the 
161.16 	training and skills form from the foster care provider or the agency supervising the foster 
161.17 	care provider and shall keep it and any updated information on file for the duration of the 
161.18 	placement. The form must be made available to the parents or the primary caregiver and 
161.19 	social worker of the individual, or the individual, whichever is applicable, in order to make 
161.20 	an informed placement decision. The agency shall use the training and skills form developed 
161.21 	by the commissioner of children, youth, and families.

161.22 	Sec. 26. [142B.50] DISCLOSURE OF COMMUNICABLE DISEASE.
161.23 		Subdivision 1.Licensed foster care. This section applies to county agencies, private 
161.24 	child-placing agencies, and individuals who place children or youth who have a known 
161.25 	communicable disease, as defined in section 144.4172, subdivision 2, in foster care settings 
161.26 	licensed under this chapter.
161.27 		Subd. 2.Placing agency's or individual's duties. Notwithstanding sections 144.291 to 
161.28 	144.298, before a county agency, private child-placing agency, or individual places a child 
161.29 	or youth with a known communicable disease with a licensed foster care provider, the 
161.30 	agency or individual must:
161.31 	(1) disclose to the foster care license holder the child's communicable disease; and
162.1 	(2) determine that the foster care provider has the ability to provide care to the child or 
162.2 	youth.

162.3 	Sec. 27. [142B.51] CHILD PASSENGER RESTRAINT SYSTEMS.
162.4 		Subdivision 1.Seat belt and child passenger restraint system use. When a child is 
162.5 	transported, a license holder must comply with all seat belt and child passenger restraint 
162.6 	system requirements under sections 169.685 and 169.686.
162.7 		Subd. 2.Child passenger restraint systems; training requirement. (a) Programs 
162.8 	licensed by the Department of Human Services under chapter 245A or the Department of 
162.9 	Children, Youth, and Families under this chapter and Minnesota Rules, chapter 2960, that 
162.10 	serve a child or children under eight years of age must document training that fulfills the 
162.11 	requirements in this subdivision.
162.12 	(b) Before a license holder, staff person, or caregiver transports a child or children under 
162.13 	age eight in a motor vehicle, the person transporting the child must satisfactorily complete 
162.14 	training on the proper use and installation of child restraint systems in motor vehicles. 
162.15 	Training completed under this section may be used to meet initial or ongoing training under 
162.16 	Minnesota Rules, part 2960.3070, subparts 1 and 2.
162.17 	(c) Training required under this section must be completed at orientation or initial training 
162.18 	and repeated at least once every five years. At a minimum, the training must address the 
162.19 	proper use of child restraint systems based on the child's size, weight, and age, and the 
162.20 	proper installation of a car seat or booster seat in the motor vehicle used by the license 
162.21 	holder to transport the child or children.
162.22 	(d) Training under paragraph (c) must be provided by individuals who are certified and 
162.23 	approved by the Office of Traffic Safety within the Department of Public Safety. License 
162.24 	holders may obtain a list of certified and approved trainers through the Department of Public 
162.25 	Safety website or by contacting the agency.
162.26 	(e) Notwithstanding paragraph (a), for an emergency relative placement under section 
162.27 	142B.06, the commissioner may grant a variance to the training required by this subdivision 
162.28 	for a relative who completes a child seat safety check up. The child seat safety check up 
162.29 	trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and 
162.30 	must provide one-on-one instruction on placing a child of a specific age in the exact child 
162.31 	passenger restraint in the motor vehicle in which the child will be transported. Once granted 
162.32 	a variance, and if all other licensing requirements are met, the relative applicant may receive 
162.33 	a license and may transport a relative foster child younger than eight years of age. A child 
163.1 	seat safety check up must be completed each time a child requires a different size car seat 
163.2 	according to car seat and vehicle manufacturer guidelines. A relative license holder must 
163.3 	complete training that meets the other requirements of this subdivision prior to placement 
163.4 	of another foster child younger than eight years of age in the home or prior to the renewal 
163.5 	of the child foster care license.

163.6 	Sec. 28. [142B.52] PRONE RESTRAINT PROHIBITION.
163.7 	Programs licensed under this chapter must comply with the requirements of section 
163.8 	245A.211.

163.9 	Sec. 29. [142B.53] MANDATORY REPORTING.
163.10 	Any individual engaging in licensing functions and activities under this chapter, including 
163.11 	authorities delegated under section 142B.30, must immediately report any suspected fraud 
163.12 	to county children, youth, and families investigators or the Department of Children, Youth, 
163.13 	and Families Office of Inspector General.

163.14 	Sec. 30. [142B.54] REQUIREMENTS; MALTREATMENT OF MINORS OR 
163.15 	VULNERABLE ADULTS.
163.16 		Subdivision 1.Maltreatment of minors internal review. Except for family child care 
163.17 	settings and foster care for children in the license holder's residence, license holders serving 
163.18 	children shall:
163.19 	(1) establish and maintain policies and procedures to ensure that an internal review is 
163.20 	completed within 30 calendar days and that corrective action is taken if necessary to protect 
163.21 	the health and safety of children in care when the facility has reason to know that an internal 
163.22 	or external report of alleged or suspected maltreatment has been made. The review must 
163.23 	include an evaluation of whether:
163.24 	(i) related policies and procedures were followed;
163.25 	(ii) the policies and procedures were adequate;
163.26 	(iii) there is a need for additional staff training;
163.27 	(iv) the reported event is similar to past events with the children or the services involved; 
163.28 	and
163.29 	(v) there is a need for corrective action by the license holder to protect the health and 
163.30 	safety of children in care.
164.1 	Based on the results of this review, the license holder must develop, document, and 
164.2 	implement a corrective action plan designed to correct current lapses and prevent future 
164.3 	lapses in performance by individuals or the license holder, if any;
164.4 	(2) identify the primary and secondary person or position who will ensure that, when 
164.5 	required, internal reviews are completed. The secondary person shall be involved when 
164.6 	there is reason to believe that the primary person was involved in the alleged or suspected 
164.7 	maltreatment; and
164.8 	(3) document and make internal reviews accessible to the commissioner immediately 
164.9 	upon the commissioner's request. For the purposes of this section, the documentation provided 
164.10 	to the commissioner by the license holder may consist of a completed checklist that verifies 
164.11 	completion of each of the requirements of the review.
164.12 		Subd. 2.Maltreatment of minors ongoing training requirement. (a) In addition to 
164.13 	the orientation training required by the applicable licensing rules and statutes, private 
164.14 	child-placing agency license holders must provide a training annually on the maltreatment 
164.15 	of minors reporting requirements and definitions in chapter 260E to each mandatory reporter, 
164.16 	as described in section 260E.06, subdivision 1.
164.17 	(b) In addition to the orientation training required by the applicable licensing rules and 
164.18 	statutes, all family child foster care license holders and caregivers and foster residence 
164.19 	setting staff and volunteers who are mandatory reporters as described in section 260E.06, 
164.20 	subdivision 1, must complete training each year on the maltreatment of minors reporting 
164.21 	requirements and definitions in chapter 260E.
164.22 		Subd. 3.Vulnerable adults. License holders serving vulnerable adults are subject to 
164.23 	the requirements of section 245A.65.

164.24 	Sec. 31. [142B.80] CHILD FOSTER CARE TRAINING REQUIREMENT; MENTAL 
164.25 	HEALTH TRAINING; FETAL ALCOHOL SPECTRUM DISORDERS TRAINING.
164.26 	Prior to a nonemergency placement of a child in a foster care home, the child foster care 
164.27 	license holder and caregivers in foster family and treatment foster care settings, and all staff 
164.28 	providing care in foster residence settings must complete two hours of training that addresses 
164.29 	the causes, symptoms, and key warning signs of mental health disorders; cultural 
164.30 	considerations; and effective approaches for dealing with a child's behaviors. At least one 
164.31 	hour of the annual training requirement for the foster family license holder and caregivers, 
164.32 	and foster residence staff must be on children's mental health issues and treatment. Except 
164.33 	for providers and services under chapter 245D, the annual training must also include at least 
165.1 	one hour of training on fetal alcohol spectrum disorders, which must be counted toward the 
165.2 	12 hours of required in-service training per year. Short-term substitute caregivers are exempt 
165.3 	from these requirements. Training curriculum shall be approved by the commissioner of 
165.4 	children, youth, and families.

165.5 	Sec. 32. Minnesota Statutes 2023 Supplement, section 245A.02, subdivision 5a, is amended 
165.6 	to read:
165.7 		Subd. 5a.Controlling individual. (a) "Controlling individual" means an owner of a 
165.8 	program or service provider licensed under this chapter and the following individuals, if 
165.9 	applicable:
165.10 	(1) each officer of the organization, including the chief executive officer and chief 
165.11 	financial officer;
165.12 	(2) the individual designated as the authorized agent under section 245A.04, subdivision 
165.13 	1, paragraph (b);
165.14 	(3) the individual designated as the compliance officer under section 256B.04, subdivision 
165.15 	21, paragraph (g);
165.16 	(4) each managerial official whose responsibilities include the direction of the 
165.17 	management or policies of a program; and
165.18 	(5) the individual designated as the primary provider of care for a special family child 
165.19 	care program under section 245A.14, subdivision 4, paragraph (d); and
165.20 	(6) (5) the president and treasurer of the board of directors of a nonprofit corporation.
165.21 	(b) Controlling individual does not include:
165.22 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
165.23 	loan and thrift company, investment banking firm, or insurance company unless the entity 
165.24 	operates a program directly or through a subsidiary;
165.25 	(2) an individual who is a state or federal official, or state or federal employee, or a 
165.26 	member or employee of the governing body of a political subdivision of the state or federal 
165.27 	government that operates one or more programs, unless the individual is also an officer, 
165.28 	owner, or managerial official of the program, receives remuneration from the program, or 
165.29 	owns any of the beneficial interests not excluded in this subdivision;
165.30 	(3) an individual who owns less than five percent of the outstanding common shares of 
165.31 	a corporation:
166.1 	(i) whose securities are exempt under section 80A.45, clause (6); or
166.2 	(ii) whose transactions are exempt under section 80A.46, clause (2);
166.3 	(4) an individual who is a member of an organization exempt from taxation under section 
166.4 	290.05, unless the individual is also an officer, owner, or managerial official of the program 
166.5 	or owns any of the beneficial interests not excluded in this subdivision. This clause does 
166.6 	not exclude from the definition of controlling individual an organization that is exempt from 
166.7 	taxation; or
166.8 	(5) an employee stock ownership plan trust, or a participant or board member of an 
166.9 	employee stock ownership plan, unless the participant or board member is a controlling 
166.10 	individual according to paragraph (a).
166.11 	(c) For purposes of this subdivision, "managerial official" means an individual who has 
166.12 	the decision-making authority related to the operation of the program, and the responsibility 
166.13 	for the ongoing management of or direction of the policies, services, or employees of the 
166.14 	program. A site director who has no ownership interest in the program is not considered to 
166.15 	be a managerial official for purposes of this definition.

166.16 	Sec. 33. Minnesota Statutes 2022, section 245A.02, subdivision 6e, is amended to read:
166.17 		Subd. 6e.Foster residence setting. "Foster residence setting" has the meaning given 
166.18 	in Minnesota Rules, part 2960.3010, subpart 26, and includes settings licensed by the 
166.19 	commissioner of human services children, youth, and families or the commissioner of 
166.20 	corrections.

166.21 	Sec. 34. Minnesota Statutes 2022, section 245A.03, subdivision 1, is amended to read:
166.22 		Subdivision 1.License required. Unless licensed by the commissioner under this chapter, 
166.23 	an individual, organization, or government entity must not:
166.24 	(1) operate a residential or a nonresidential program;
166.25 	(2) receive a child or adult for care, supervision, or placement in foster care or adoption;
166.26 	or
166.27 	(3) help plan the placement of a child or adult in foster care or adoption or engage in 
166.28 	placement activities as defined in section 259.21, subdivision 9, in this state, whether or not 
166.29 	the adoption occurs in this state; or
166.30 	(4) (3) advertise a residential or nonresidential program.

167.1 	Sec. 35. Minnesota Statutes 2023 Supplement, section 245A.03, subdivision 2, is amended 
167.2 	to read:
167.3 		Subd. 2.Exclusion from licensure. (a) This chapter does not apply to:
167.4 	(1) residential or nonresidential programs that are provided to a person by an individual 
167.5 	who is related unless the residential program is a child foster care placement made by a 
167.6 	local social services agency or a licensed child-placing agency, except as provided in 
167.7 	subdivision 2a;
167.8 	(2) nonresidential programs that are provided by an unrelated individual to persons from 
167.9 	a single related family;
167.10 	(3) residential or nonresidential programs that are provided to adults who do not misuse 
167.11 	substances or have a substance use disorder, a mental illness, a developmental disability, a 
167.12 	functional impairment, or a physical disability;
167.13 	(4) sheltered workshops or work activity programs that are certified by the commissioner 
167.14 	of employment and economic development;
167.15 	(5) programs operated by a public school for children 33 months or older;
167.16 	(6) nonresidential programs primarily for children that provide care or supervision for 
167.17 	periods of less than three hours a day while the child's parent or legal guardian is in the 
167.18 	same building as the nonresidential program or present within another building that is 
167.19 	directly contiguous to the building in which the nonresidential program is located;
167.20 	(7) nursing homes or hospitals licensed by the commissioner of health except as specified 
167.21 	under section 245A.02;
167.22 	(8) board and lodge facilities licensed by the commissioner of health that do not provide 
167.23 	children's residential services under Minnesota Rules, chapter 2960, mental health or 
167.24 	substance use disorder treatment;
167.25 	(9) homes providing programs for persons placed by a county or a licensed agency for 
167.26 	legal adoption, unless the adoption is not completed within two years;
167.27 	(10) (9) programs licensed by the commissioner of corrections;
167.28 	(11) (10) recreation programs for children or adults that are operated or approved by a 
167.29 	park and recreation board whose primary purpose is to provide social and recreational 
167.30 	activities;
167.31 	(12) programs operated by a school as defined in section 120A.22, subdivision 4; YMCA 
167.32 	as defined in section 315.44; YWCA as defined in section 315.44; or JCC as defined in 
168.1 	section 315.51, whose primary purpose is to provide child care or services to school-age 
168.2 	children;
168.3 	(13) Head Start nonresidential programs which operate for less than 45 days in each 
168.4 	calendar year;
168.5 	(14) (11) noncertified boarding care homes unless they provide services for five or more 
168.6 	persons whose primary diagnosis is mental illness or a developmental disability;
168.7 	(15) (12) programs for children such as scouting, boys clubs, girls clubs, and sports and 
168.8 	art programs, and nonresidential programs for children provided for a cumulative total of 
168.9 	less than 30 days in any 12-month period;
168.10 	(16) (13) residential programs for persons with mental illness, that are located in hospitals;
168.11 	(17) the religious instruction of school-age children; Sabbath or Sunday schools; or the 
168.12 	congregate care of children by a church, congregation, or religious society during the period 
168.13 	used by the church, congregation, or religious society for its regular worship;
168.14 	(18) (14) camps licensed by the commissioner of health under Minnesota Rules, chapter 
168.15 	4630;
168.16 	(19) (15) mental health outpatient services for adults with mental illness or children with 
168.17 	emotional disturbance;
168.18 	(20) (16) residential programs serving school-age children whose sole purpose is cultural 
168.19 	or educational exchange, until the commissioner adopts appropriate rules;
168.20 	(21) (17) community support services programs as defined in section 245.462, subdivision 
168.21 	6, and family community support services as defined in section 245.4871, subdivision 17;
168.22 	(22) the placement of a child by a birth parent or legal guardian in a preadoptive home 
168.23 	for purposes of adoption as authorized by section 259.47;
168.24 	(23) (18) settings registered under chapter 144D which provide home care services 
168.25 	licensed by the commissioner of health to fewer than seven adults;
168.26 	(24) (19) substance use disorder treatment activities of licensed professionals in private 
168.27 	practice as defined in section 245G.01, subdivision 17;
168.28 	(25) (20) consumer-directed community support service funded under the Medicaid 
168.29 	waiver for persons with developmental disabilities when the individual who provided the 
168.30 	service is:
169.1 	(i) the same individual who is the direct payee of these specific waiver funds or paid by 
169.2 	a fiscal agent, fiscal intermediary, or employer of record; and
169.3 	(ii) not otherwise under the control of a residential or nonresidential program that is 
169.4 	required to be licensed under this chapter when providing the service;
169.5 	(26) a program serving only children who are age 33 months or older, that is operated 
169.6 	by a nonpublic school, for no more than four hours per day per child, with no more than 20 
169.7 	children at any one time, and that is accredited by:
169.8 	(i) an accrediting agency that is formally recognized by the commissioner of education 
169.9 	as a nonpublic school accrediting organization; or
169.10 	(ii) an accrediting agency that requires background studies and that receives and 
169.11 	investigates complaints about the services provided.
169.12 	A program that asserts its exemption from licensure under item (ii) shall, upon request 
169.13 	from the commissioner, provide the commissioner with documentation from the accrediting 
169.14 	agency that verifies: that the accreditation is current; that the accrediting agency investigates 
169.15 	complaints about services; and that the accrediting agency's standards require background 
169.16 	studies on all people providing direct contact services;
169.17 	(27) a program operated by a nonprofit organization incorporated in Minnesota or another 
169.18 	state that serves youth in kindergarten through grade 12; provides structured, supervised 
169.19 	youth development activities; and has learning opportunities take place before or after 
169.20 	school, on weekends, or during the summer or other seasonal breaks in the school calendar. 
169.21 	A program exempt under this clause is not eligible for child care assistance under chapter 
169.22 	119B. A program exempt under this clause must:
169.23 	(i) have a director or supervisor on site who is responsible for overseeing written policies 
169.24 	relating to the management and control of the daily activities of the program, ensuring the 
169.25 	health and safety of program participants, and supervising staff and volunteers;
169.26 	(ii) have obtained written consent from a parent or legal guardian for each youth 
169.27 	participating in activities at the site; and
169.28 	(iii) have provided written notice to a parent or legal guardian for each youth at the site 
169.29 	that the program is not licensed or supervised by the state of Minnesota and is not eligible 
169.30 	to receive child care assistance payments;
169.31 	(28) (21) a county that is an eligible vendor under section 254B.05 to provide care 
169.32 	coordination and comprehensive assessment services;
170.1 	(29) (22) a recovery community organization that is an eligible vendor under section 
170.2 	254B.05 to provide peer recovery support services; or
170.3 	(30) Head Start programs that serve only children who are at least three years old but 
170.4 	not yet six years old.
170.5 	(23) programs licensed by the commissioner of children, youth, and families in chapter 
170.6 	142B.
170.7 	(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a 
170.8 	building in which a nonresidential program is located if it shares a common wall with the 
170.9 	building in which the nonresidential program is located or is attached to that building by 
170.10 	skyway, tunnel, atrium, or common roof.
170.11 	(c) (b) Except for the home and community-based services identified in section 245D.03, 
170.12 	subdivision 1, nothing in this chapter shall be construed to require licensure for any services 
170.13 	provided and funded according to an approved federal waiver plan where licensure is 
170.14 	specifically identified as not being a condition for the services and funding.

170.15 	Sec. 36. Minnesota Statutes 2022, section 245A.03, subdivision 4, is amended to read:
170.16 		Subd. 4.Excluded child care programs; right to seek licensure. Nothing in this section 
170.17 	shall prohibit a child care program that is excluded from licensure under subdivision 2, 
170.18 	paragraph (a), clause (2), or under Laws 1997, chapter 248, section 46, as amended by Laws 
170.19 	1997, First Special Session chapter 5, section 10, from seeking a license under this chapter. 
170.20 	The commissioner shall ensure that any application received from such an excluded provider 
170.21 	is processed in the same manner as all other applications for licensed family day care.

170.22 	Sec. 37. Minnesota Statutes 2023 Supplement, section 245A.03, subdivision 7, is amended 
170.23 	to read:
170.24 		Subd. 7.Licensing moratorium. (a) The commissioner shall not issue an initial license 
170.25 	for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, or adult 
170.26 	foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under this chapter 
170.27 	for a physical location that will not be the primary residence of the license holder for the 
170.28 	entire period of licensure. If a family child foster care home or family adult foster care home 
170.29 	license is issued during this moratorium, and the license holder changes the license holder's 
170.30 	primary residence away from the physical location of the foster care license, the 
170.31 	commissioner shall revoke the license according to section 245A.07. The commissioner 
170.32 	shall not issue an initial license for a community residential setting licensed under chapter 
171.1 	245D. When approving an exception under this paragraph, the commissioner shall consider 
171.2 	the resource need determination process in paragraph (h), the availability of foster care 
171.3 	licensed beds in the geographic area in which the licensee seeks to operate, the results of a 
171.4 	person's choices during their annual assessment and service plan review, and the 
171.5 	recommendation of the local county board. The determination by the commissioner is final 
171.6 	and not subject to appeal. Exceptions to the moratorium include:
171.7 	(1) a license for a person in a foster care setting that is not the primary residence of the 
171.8 	license holder and where at least 80 percent of the residents are 55 years of age or older;
171.9 	(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or 
171.10 	community residential setting licenses replacing adult foster care licenses in existence on 
171.11 	December 31, 2013, and determined to be needed by the commissioner under paragraph 
171.12 	(b);
171.13 	(3) new foster care licenses or community residential setting licenses determined to be 
171.14 	needed by the commissioner under paragraph (b) for the closure of a nursing facility, ICF/DD, 
171.15 	or regional treatment center; restructuring of state-operated services that limits the capacity 
171.16 	of state-operated facilities; or allowing movement to the community for people who no 
171.17 	longer require the level of care provided in state-operated facilities as provided under section 
171.18 	256B.092, subdivision 13, or 256B.49, subdivision 24;
171.19 	(4) new foster care licenses or community residential setting licenses determined to be 
171.20 	needed by the commissioner under paragraph (b) for persons requiring hospital-level care; 
171.21 	or
171.22 	(5) new foster care licenses or community residential setting licenses for people receiving 
171.23 	customized living or 24-hour customized living services under the brain injury or community 
171.24 	access for disability inclusion waiver plans under section 256B.49 or elderly waiver plan 
171.25 	under chapter 256S and residing in the customized living setting for which a license is 
171.26 	required. A customized living service provider subject to this exception may rebut the 
171.27 	presumption that a license is required by seeking a reconsideration of the commissioner's 
171.28 	determination. The commissioner's disposition of a request for reconsideration is final and 
171.29 	not subject to appeal under chapter 14. The exception is available until December 31, 2023. 
171.30 	This exception is available when:
171.31 	(i) the person's customized living services are provided in a customized living service 
171.32 	setting serving four or fewer people in a single-family home operational on or before June 
171.33 	30, 2021. Operational is defined in section 256B.49, subdivision 28;
172.1 	(ii) the person's case manager provided the person with information about the choice of 
172.2 	service, service provider, and location of service, including in the person's home, to help 
172.3 	the person make an informed choice; and
172.4 	(iii) the person's services provided in the licensed foster care or community residential 
172.5 	setting are less than or equal to the cost of the person's services delivered in the customized 
172.6 	living setting as determined by the lead agency.
172.7 	(b) The commissioner shall determine the need for newly licensed foster care homes or 
172.8 	community residential settings as defined under this subdivision. As part of the determination, 
172.9 	the commissioner shall consider the availability of foster care capacity in the area in which 
172.10 	the licensee seeks to operate, and the recommendation of the local county board. The 
172.11 	determination by the commissioner must be final. A determination of need is not required 
172.12 	for a change in ownership at the same address.
172.13 	(c) When an adult resident served by the program moves out of a foster home that is not 
172.14 	the primary residence of the license holder according to section 256B.49, subdivision 15, 
172.15 	paragraph (f), or the adult community residential setting, the county shall immediately 
172.16 	inform the Department of Human Services Licensing Division. The department may decrease 
172.17 	the statewide licensed capacity for adult foster care settings.
172.18 	(d) Residential settings that would otherwise be subject to the decreased license capacity 
172.19 	established in paragraph (c) shall be exempt if the license holder's beds are occupied by 
172.20 	residents whose primary diagnosis is mental illness and the license holder is certified under 
172.21 	the requirements in subdivision 6a or section 245D.33.
172.22 	(e) A resource need determination process, managed at the state level, using the available 
172.23 	data required by section 144A.351, and other data and information shall be used to determine 
172.24 	where the reduced capacity determined under section 256B.493 will be implemented. The 
172.25 	commissioner shall consult with the stakeholders described in section 144A.351, and employ 
172.26 	a variety of methods to improve the state's capacity to meet the informed decisions of those 
172.27 	people who want to move out of corporate foster care or community residential settings, 
172.28 	long-term service needs within budgetary limits, including seeking proposals from service 
172.29 	providers or lead agencies to change service type, capacity, or location to improve services, 
172.30 	increase the independence of residents, and better meet needs identified by the long-term 
172.31 	services and supports reports and statewide data and information.
172.32 	(f) At the time of application and reapplication for licensure, the applicant and the license 
172.33 	holder that are subject to the moratorium or an exclusion established in paragraph (a) are 
172.34 	required to inform the commissioner whether the physical location where the foster care 
173.1 	will be provided is or will be the primary residence of the license holder for the entire period 
173.2 	of licensure. If the primary residence of the applicant or license holder changes, the applicant 
173.3 	or license holder must notify the commissioner immediately. The commissioner shall print 
173.4 	on the foster care license certificate whether or not the physical location is the primary 
173.5 	residence of the license holder.
173.6 	(g) License holders of foster care homes identified under paragraph (f) that are not the 
173.7 	primary residence of the license holder and that also provide services in the foster care home 
173.8 	that are covered by a federally approved home and community-based services waiver, as 
173.9 	authorized under chapter 256S or section 256B.092 or 256B.49, must inform the human 
173.10 	services licensing division that the license holder provides or intends to provide these 
173.11 	waiver-funded services.
173.12 	(h) The commissioner may adjust capacity to address needs identified in section 
173.13 	144A.351. Under this authority, the commissioner may approve new licensed settings or 
173.14 	delicense existing settings. Delicensing of settings will be accomplished through a process 
173.15 	identified in section 256B.493.
173.16 	(i) The commissioner must notify a license holder when its corporate foster care or 
173.17 	community residential setting licensed beds are reduced under this section. The notice of 
173.18 	reduction of licensed beds must be in writing and delivered to the license holder by certified 
173.19 	mail or personal service. The notice must state why the licensed beds are reduced and must 
173.20 	inform the license holder of its right to request reconsideration by the commissioner. The 
173.21 	license holder's request for reconsideration must be in writing. If mailed, the request for 
173.22 	reconsideration must be postmarked and sent to the commissioner within 20 calendar days 
173.23 	after the license holder's receipt of the notice of reduction of licensed beds. If a request for 
173.24 	reconsideration is made by personal service, it must be received by the commissioner within 
173.25 	20 calendar days after the license holder's receipt of the notice of reduction of licensed beds.
173.26 	(j) The commissioner shall not issue an initial license for children's residential treatment 
173.27 	services licensed under Minnesota Rules, parts 2960.0580 to 2960.0700, under this chapter 
173.28 	for a program that Centers for Medicare and Medicaid Services would consider an institution 
173.29 	for mental diseases. Facilities that serve only private pay clients are exempt from the 
173.30 	moratorium described in this paragraph. The commissioner has the authority to manage 
173.31 	existing statewide capacity for children's residential treatment services subject to the 
173.32 	moratorium under this paragraph and may issue an initial license for such facilities if the 
173.33 	initial license would not increase the statewide capacity for children's residential treatment 
173.34 	services subject to the moratorium under this paragraph.

174.1 	Sec. 38. Minnesota Statutes 2022, section 245A.035, subdivision 4, is amended to read:
174.2 		Subd. 4.Applicant study. When the county agency has received the information required 
174.3 	by section 245C.05, the county agency shall submit the information to the commissioner 
174.4 	of human services according to section 245C.05.

174.5 	Sec. 39. Minnesota Statutes 2023 Supplement, section 245A.04, subdivision 4, is amended 
174.6 	to read:
174.7 		Subd. 4.Inspections; waiver. (a) Before issuing a license under this chapter, the 
174.8 	commissioner shall conduct an inspection of the program. The inspection must include but 
174.9 	is not limited to:
174.10 	(1) an inspection of the physical plant;
174.11 	(2) an inspection of records and documents;
174.12 	(3) observation of the program in operation; and
174.13 	(4) an inspection for the health, safety, and fire standards in licensing requirements for 
174.14 	a child care license holder.
174.15 	(b) The observation in paragraph (a), clause (3), is not required prior to issuing a license 
174.16 	under subdivision 7. If the commissioner issues a license under this chapter, these 
174.17 	requirements must be completed within one year after the issuance of the license.
174.18 	(c) Before completing a licensing inspection in a family child care program or child care 
174.19 	center, the licensing agency must offer the license holder an exit interview to discuss 
174.20 	violations or potential violations of law or rule observed during the inspection and offer 
174.21 	technical assistance on how to comply with applicable laws and rules. The commissioner 
174.22 	shall not issue a correction order or negative licensing action for violations of law or rule 
174.23 	not discussed in an exit interview, unless a license holder chooses not to participate in an 
174.24 	exit interview or not to complete the exit interview. If the license holder is unable to complete 
174.25 	the exit interview, the licensing agency must offer an alternate time for the license holder 
174.26 	to complete the exit interview.
174.27 	(d) If a family child care license holder disputes a county licensor's interpretation of a 
174.28 	licensing requirement during a licensing inspection or exit interview, the license holder 
174.29 	may, within five business days after the exit interview or licensing inspection, request 
174.30 	clarification from the commissioner, in writing, in a manner prescribed by the commissioner. 
174.31 	The license holder's request must describe the county licensor's interpretation of the licensing 
174.32 	requirement at issue, and explain why the license holder believes the county licensor's 
175.1 	interpretation is inaccurate. The commissioner and the county must include the license 
175.2 	holder in all correspondence regarding the disputed interpretation, and must provide an 
175.3 	opportunity for the license holder to contribute relevant information that may impact the 
175.4 	commissioner's decision. The county licensor must not issue a correction order related to 
175.5 	the disputed licensing requirement until the commissioner has provided clarification to the 
175.6 	license holder about the licensing requirement.
175.7 	(e) The commissioner or the county shall inspect at least once each calendar year a child 
175.8 	care provider licensed under this chapter and Minnesota Rules, chapter 9502 or 9503, for 
175.9 	compliance with applicable licensing standards.
175.10 	(f) No later than November 19, 2017, the commissioner shall make publicly available 
175.11 	on the department's website the results of inspection reports of all child care providers 
175.12 	licensed under this chapter and under Minnesota Rules, chapter 9502 or 9503, and the 
175.13 	number of deaths, serious injuries, and instances of substantiated child maltreatment that 
175.14 	occurred in licensed child care settings each year.

175.15 	Sec. 40. Minnesota Statutes 2023 Supplement, section 245A.04, subdivision 7, is amended 
175.16 	to read:
175.17 		Subd. 7.Grant of license; license extension. (a) If the commissioner determines that 
175.18 	the program complies with all applicable rules and laws, the commissioner shall issue a 
175.19 	license consistent with this section or, if applicable, a temporary change of ownership license 
175.20 	under section 245A.043. At minimum, the license shall state:
175.21 	(1) the name of the license holder;
175.22 	(2) the address of the program;
175.23 	(3) the effective date and expiration date of the license;
175.24 	(4) the type of license;
175.25 	(5) the maximum number and ages of persons that may receive services from the program; 
175.26 	and
175.27 	(6) any special conditions of licensure.
175.28 	(b) The commissioner may issue a license for a period not to exceed two years if:
175.29 	(1) the commissioner is unable to conduct the observation required by subdivision 4, 
175.30 	paragraph (a), clause (3), because the program is not yet operational;
176.1 	(2) certain records and documents are not available because persons are not yet receiving 
176.2 	services from the program; and
176.3 	(3) the applicant complies with applicable laws and rules in all other respects.
176.4 	(c) A decision by the commissioner to issue a license does not guarantee that any person 
176.5 	or persons will be placed or cared for in the licensed program.
176.6 	(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a 
176.7 	license if the applicant, license holder, or an affiliated controlling individual has:
176.8 	(1) been disqualified and the disqualification was not set aside and no variance has been 
176.9 	granted;
176.10 	(2) been denied a license under this chapter, or chapter 142B within the past two years;
176.11 	(3) had a license issued under this chapter or chapter 142B revoked within the past five 
176.12 	years; or
176.13 	(4) failed to submit the information required of an applicant under subdivision 1, 
176.14 	paragraph (f), (g), or (h), after being requested by the commissioner.
176.15 	When a license issued under this chapter or chapter 142B is revoked, the license holder 
176.16 	and each affiliated controlling individual with a revoked license may not hold any license 
176.17 	under chapter 245A for five years following the revocation, and other licenses held by the 
176.18 	applicant or license holder or licenses affiliated with each controlling individual shall also 
176.19 	be revoked.
176.20 	(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license 
176.21 	affiliated with a license holder or controlling individual that had a license revoked within 
176.22 	the past five years if the commissioner determines that (1) the license holder or controlling 
176.23 	individual is operating the program in substantial compliance with applicable laws and rules 
176.24 	and (2) the program's continued operation is in the best interests of the community being 
176.25 	served.
176.26 	(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response 
176.27 	to an application that is affiliated with an applicant, license holder, or controlling individual 
176.28 	that had an application denied within the past two years or a license revoked within the past 
176.29 	five years if the commissioner determines that (1) the applicant or controlling individual 
176.30 	has operated one or more programs in substantial compliance with applicable laws and rules 
176.31 	and (2) the program's operation would be in the best interests of the community to be served.
177.1 	(g) In determining whether a program's operation would be in the best interests of the 
177.2 	community to be served, the commissioner shall consider factors such as the number of 
177.3 	persons served, the availability of alternative services available in the surrounding 
177.4 	community, the management structure of the program, whether the program provides 
177.5 	culturally specific services, and other relevant factors.
177.6 	(h) The commissioner shall not issue or reissue a license under this chapter if an individual 
177.7 	living in the household where the services will be provided as specified under section 
177.8 	245C.03, subdivision 1, has been disqualified and the disqualification has not been set aside 
177.9 	and no variance has been granted.
177.10 	(i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued 
177.11 	under this chapter has been suspended or revoked and the suspension or revocation is under 
177.12 	appeal, the program may continue to operate pending a final order from the commissioner. 
177.13 	If the license under suspension or revocation will expire before a final order is issued, a 
177.14 	temporary provisional license may be issued provided any applicable license fee is paid 
177.15 	before the temporary provisional license is issued.
177.16 	(j) Notwithstanding paragraph (i), when a revocation is based on the disqualification of 
177.17 	a controlling individual or license holder, and the controlling individual or license holder 
177.18 	is ordered under section 245C.17 to be immediately removed from direct contact with 
177.19 	persons receiving services or is ordered to be under continuous, direct supervision when 
177.20 	providing direct contact services, the program may continue to operate only if the program 
177.21 	complies with the order and submits documentation demonstrating compliance with the 
177.22 	order. If the disqualified individual fails to submit a timely request for reconsideration, or 
177.23 	if the disqualification is not set aside and no variance is granted, the order to immediately 
177.24 	remove the individual from direct contact or to be under continuous, direct supervision 
177.25 	remains in effect pending the outcome of a hearing and final order from the commissioner.
177.26 	(k) For purposes of reimbursement for meals only, under the Child and Adult Care Food 
177.27 	Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A, part 226, 
177.28 	relocation within the same county by a licensed family day care provider, shall be considered 
177.29 	an extension of the license for a period of no more than 30 calendar days or until the new 
177.30 	license is issued, whichever occurs first, provided the county agency has determined the 
177.31 	family day care provider meets licensure requirements at the new location.
177.32 	(l) (k) Unless otherwise specified by statute, all licenses issued under this chapter expire 
177.33 	at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must 
178.1 	apply for and be granted a new license to operate the program or the program must not be 
178.2 	operated after the expiration date.
178.3 	(m) (l) The commissioner shall not issue or reissue a license under this chapter if it has 
178.4 	been determined that a Tribal licensing authority has established jurisdiction to license the 
178.5 	program or service.
178.6 	(m) The commissioner of human services may coordinate and share data with the 
178.7 	commissioner of children, youth, and families to enforce this section.

178.8 	Sec. 41. Minnesota Statutes 2022, section 245A.04, subdivision 9, is amended to read:
178.9 		Subd. 9.Variances. (a) The commissioner may grant variances to rules that do not affect 
178.10 	the health or safety of persons in a licensed program if the following conditions are met:
178.11 	(1) the variance must be requested by an applicant or license holder on a form and in a 
178.12 	manner prescribed by the commissioner;
178.13 	(2) the request for a variance must include the reasons that the applicant or license holder 
178.14 	cannot comply with a requirement as stated in the rule and the alternative equivalent measures 
178.15 	that the applicant or license holder will follow to comply with the intent of the rule; and
178.16 	(3) the request must state the period of time for which the variance is requested.
178.17 	The commissioner may grant a permanent variance when conditions under which the 
178.18 	variance is requested do not affect the health or safety of persons being served by the licensed 
178.19 	program, nor compromise the qualifications of staff to provide services. The permanent 
178.20 	variance shall expire as soon as the conditions that warranted the variance are modified in 
178.21 	any way. Any applicant or license holder must inform the commissioner of any changes or 
178.22 	modifications that have occurred in the conditions that warranted the permanent variance. 
178.23 	Failure to advise the commissioner shall result in revocation of the permanent variance and 
178.24 	may be cause for other sanctions under sections 245A.06 and 245A.07.
178.25 	The commissioner's decision to grant or deny a variance request is final and not subject 
178.26 	to appeal under the provisions of chapter 14.
178.27 	(b) The commissioner shall consider variances for child care center staff qualification 
178.28 	requirements under Minnesota Rules, parts 9503.0032 and 9503.0033, that do not affect 
178.29 	the health and safety of children served by the center. A variance request must be submitted 
178.30 	to the commissioner in accordance with paragraph (a) and must include a plan for the staff 
178.31 	person to gain additional experience, education, or training, as requested by the commissioner. 
178.32 	When reviewing a variance request under this section, the commissioner shall consider the 
179.1 	staff person's level of professional development, including but not limited to steps completed 
179.2 	on the Minnesota career lattice.
179.3 	(c) Beginning January 1, 2021, counties shall use a uniform application form developed 
179.4 	by the commissioner for variance requests by family child care license holders.

179.5 	Sec. 42. Minnesota Statutes 2023 Supplement, section 245A.041, subdivision 6, is amended 
179.6 	to read:
179.7 		Subd. 6.First date of direct contact; documentation requirements. Except for family 
179.8 	child care, family foster care for children, and family adult day services that the license 
179.9 	holder provides in the license holder's residence, license holders must document the first 
179.10 	date that a background study subject has direct contact, as defined in section 245C.02, 
179.11 	subdivision 11, with a person served by the license holder's program. Unless this chapter 
179.12 	otherwise requires, if the license holder does not maintain the documentation required by 
179.13 	this subdivision in the license holder's personnel files, the license holder must provide the 
179.14 	documentation to the commissioner upon the commissioner's request.

179.15 	Sec. 43. Minnesota Statutes 2023 Supplement, section 245A.05, is amended to read:
179.16 	245A.05 DENIAL OF APPLICATION.
179.17 	(a) The commissioner may deny a license if an applicant or controlling individual:
179.18 	(1) fails to submit a substantially complete application after receiving notice from the 
179.19 	commissioner under section 245A.04, subdivision 1;
179.20 	(2) fails to comply with applicable laws or rules;
179.21 	(3) knowingly withholds relevant information from or gives false or misleading 
179.22 	information to the commissioner in connection with an application for a license or during 
179.23 	an investigation;
179.24 	(4) has a disqualification that has not been set aside under section 245C.22 and no 
179.25 	variance has been granted;
179.26 	(5) has an individual living in the household who received a background study under 
179.27 	section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that 
179.28 	has not been set aside under section 245C.22, and no variance has been granted;
179.29 	(6) is associated with an individual who received a background study under section 
179.30 	245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to 
180.1 	children or vulnerable adults, and who has a disqualification that has not been set aside 
180.2 	under section 245C.22, and no variance has been granted;
180.3 	(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g);
180.4 	(8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 
180.5 	6;
180.6 	(9) has a history of noncompliance as a license holder or controlling individual with 
180.7 	applicable laws or rules, including but not limited to this chapter and chapters 119B and 
180.8 	245C; or
180.9 	(10) is prohibited from holding a license according to section 245.095; or.
180.10 	(11) for a family foster setting, has or has an individual who is living in the household 
180.11 	where the licensed services are provided or is otherwise subject to a background study who 
180.12 	has nondisqualifying background study information, as described in section 245C.05, 
180.13 	subdivision 4, that reflects on the applicant's ability to safely provide care to foster children.
180.14 	(b) An applicant whose application has been denied by the commissioner must be given 
180.15 	notice of the denial, which must state the reasons for the denial in plain language. Notice 
180.16 	must be given by certified mail, by personal service, or through the provider licensing and 
180.17 	reporting hub. The notice must state the reasons the application was denied and must inform 
180.18 	the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules, 
180.19 	parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the 
180.20 	commissioner in writing by certified mail, by personal service, or through the provider 
180.21 	licensing and reporting hub. If mailed, the appeal must be postmarked and sent to the 
180.22 	commissioner within 20 calendar days after the applicant received the notice of denial. If 
180.23 	an appeal request is made by personal service, it must be received by the commissioner 
180.24 	within 20 calendar days after the applicant received the notice of denial. If the order is issued 
180.25 	through the provider hub, the appeal must be received by the commissioner within 20 
180.26 	calendar days from the date the commissioner issued the order through the hub. Section 
180.27 	245A.08 applies to hearings held to appeal the commissioner's denial of an application.

180.28 	Sec. 44. Minnesota Statutes 2023 Supplement, section 245A.07, subdivision 1, is amended 
180.29 	to read:
180.30 		Subdivision 1.Sanctions; appeals; license. (a) In addition to making a license conditional 
180.31 	under section 245A.06, the commissioner may suspend or revoke the license, impose a fine, 
180.32 	or secure an injunction against the continuing operation of the program of a license holder 
180.33 	who:
181.1 	(1) does not comply with applicable law or rule;.
181.2 	(2) has nondisqualifying background study information, as described in section 245C.05, 
181.3 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
181.4 	children; or
181.5 	(3) has an individual living in the household where the licensed services are provided 
181.6 	or is otherwise subject to a background study, and the individual has nondisqualifying 
181.7 	background study information, as described in section 245C.05, subdivision 4, that reflects 
181.8 	on the license holder's ability to safely provide care to foster children.
181.9 	When applying sanctions authorized under this section, the commissioner shall consider 
181.10 	the nature, chronicity, or severity of the violation of law or rule and the effect of the violation 
181.11 	on the health, safety, or rights of persons served by the program.
181.12 	(b) If a license holder appeals the suspension or revocation of a license and the license 
181.13 	holder continues to operate the program pending a final order on the appeal, the commissioner 
181.14 	shall issue the license holder a temporary provisional license. Unless otherwise specified 
181.15 	by the commissioner, variances in effect on the date of the license sanction under appeal 
181.16 	continue under the temporary provisional license. If a license holder fails to comply with 
181.17 	applicable law or rule while operating under a temporary provisional license, the 
181.18 	commissioner may impose additional sanctions under this section and section 245A.06, and 
181.19 	may terminate any prior variance. If a temporary provisional license is set to expire, a new 
181.20 	temporary provisional license shall be issued to the license holder upon payment of any fee 
181.21 	required under section 245A.10. The temporary provisional license shall expire on the date 
181.22 	the final order is issued. If the license holder prevails on the appeal, a new nonprovisional 
181.23 	license shall be issued for the remainder of the current license period.
181.24 	(c) If a license holder is under investigation and the license issued under this chapter is 
181.25 	due to expire before completion of the investigation, the program shall be issued a new 
181.26 	license upon completion of the reapplication requirements and payment of any applicable 
181.27 	license fee. Upon completion of the investigation, a licensing sanction may be imposed 
181.28 	against the new license under this section, section 245A.06, or 245A.08.
181.29 	(d) Failure to reapply or closure of a license issued under this chapter by the license 
181.30 	holder prior to the completion of any investigation shall not preclude the commissioner 
181.31 	from issuing a licensing sanction under this section or section 245A.06 at the conclusion 
181.32 	of the investigation.

182.1 	Sec. 45. Minnesota Statutes 2023 Supplement, section 245A.07, subdivision 3, is amended 
182.2 	to read:
182.3 		Subd. 3.License suspension, revocation, or fine. (a) The commissioner may suspend 
182.4 	or revoke a license, or impose a fine if:
182.5 	(1) a license holder fails to comply fully with applicable laws or rules including but not 
182.6 	limited to the requirements of this chapter and chapter 245C;
182.7 	(2) a license holder, a controlling individual, or an individual living in the household 
182.8 	where the licensed services are provided or is otherwise subject to a background study has 
182.9 	been disqualified and the disqualification was not set aside and no variance has been granted;
182.10 	(3) a license holder knowingly withholds relevant information from or gives false or 
182.11 	misleading information to the commissioner in connection with an application for a license, 
182.12 	in connection with the background study status of an individual, during an investigation, 
182.13 	or regarding compliance with applicable laws or rules;
182.14 	(4) a license holder is excluded from any program administered by the commissioner 
182.15 	under section 245.095;
182.16 	(5) revocation is required under section 245A.04, subdivision 7, paragraph (d); or
182.17 	(6) for a family foster setting, a license holder, or an individual living in the household 
182.18 	where the licensed services are provided or who is otherwise subject to a background study, 
182.19 	has nondisqualifying background study information, as described in section 245C.05, 
182.20 	subdivision 4, that reflects on the license holder's ability to safely provide care to foster 
182.21 	children; or
182.22 	(7) (6) suspension is necessary under subdivision 2a, paragraph (b), clause (2).
182.23 	A license holder who has had a license issued under this chapter suspended, revoked, 
182.24 	or has been ordered to pay a fine must be given notice of the action by certified mail, by 
182.25 	personal service, or through the provider licensing and reporting hub. If mailed, the notice 
182.26 	must be mailed to the address shown on the application or the last known address of the 
182.27 	license holder. The notice must state in plain language the reasons the license was suspended 
182.28 	or revoked, or a fine was ordered.
182.29 	(b) If the license was suspended or revoked, the notice must inform the license holder 
182.30 	of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 
182.31 	1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking 
182.32 	a license. The appeal of an order suspending or revoking a license must be made in writing 
182.33 	by certified mail, by personal service, or through the provider licensing and reporting hub. 
183.1 	If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar 
183.2 	days after the license holder receives notice that the license has been suspended or revoked. 
183.3 	If a request is made by personal service, it must be received by the commissioner within 
183.4 	ten calendar days after the license holder received the order. If the order is issued through 
183.5 	the provider hub, the appeal must be received by the commissioner within ten calendar days 
183.6 	from the date the commissioner issued the order through the hub. Except as provided in 
183.7 	subdivision 2a, paragraph (c), if a license holder submits a timely appeal of an order 
183.8 	suspending or revoking a license, the license holder may continue to operate the program 
183.9 	as provided in section 245A.04, subdivision 7, paragraphs (i) and (j), until the commissioner 
183.10 	issues a final order on the suspension or revocation.
183.11 	(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license 
183.12 	holder of the responsibility for payment of fines and the right to a contested case hearing 
183.13 	under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an 
183.14 	order to pay a fine must be made in writing by certified mail, by personal service, or through 
183.15 	the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent 
183.16 	to the commissioner within ten calendar days after the license holder receives notice that 
183.17 	the fine has been ordered. If a request is made by personal service, it must be received by 
183.18 	the commissioner within ten calendar days after the license holder received the order. If the 
183.19 	order is issued through the provider hub, the appeal must be received by the commissioner 
183.20 	within ten calendar days from the date the commissioner issued the order through the hub.
183.21 	(2) The license holder shall pay the fines assessed on or before the payment date specified. 
183.22 	If the license holder fails to fully comply with the order, the commissioner may issue a 
183.23 	second fine or suspend the license until the license holder complies. If the license holder 
183.24 	receives state funds, the state, county, or municipal agencies or departments responsible for 
183.25 	administering the funds shall withhold payments and recover any payments made while the 
183.26 	license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine 
183.27 	until the commissioner issues a final order.
183.28 	(3) A license holder shall promptly notify the commissioner of human services, in writing, 
183.29 	when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the 
183.30 	commissioner determines that a violation has not been corrected as indicated by the order 
183.31 	to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify 
183.32 	the license holder by certified mail, by personal service, or through the provider licensing 
183.33 	and reporting hub that a second fine has been assessed. The license holder may appeal the 
183.34 	second fine as provided under this subdivision.
183.35 	(4) Fines shall be assessed as follows:
184.1 	(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a 
184.2 	child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 
184.3 	for which the license holder is determined responsible for the maltreatment under section 
184.4 	260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
184.5 	(ii) if the commissioner determines that a determination of maltreatment for which the 
184.6 	license holder is responsible is the result of maltreatment that meets the definition of serious 
184.7 	maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit 
184.8 	$5,000;
184.9 	(iii) for a program that operates out of the license holder's home and a program licensed 
184.10 	under Minnesota Rules, parts 9502.0300 to 9502.0445, the fine assessed against the license 
184.11 	holder shall not exceed $1,000 for each determination of maltreatment;
184.12 	(iv) (iii) the license holder shall forfeit $200 for each occurrence of a violation of law 
184.13 	or rule governing matters of health, safety, or supervision, including but not limited to the 
184.14 	provision of adequate staff-to-child or adult ratios, and failure to comply with background 
184.15 	study requirements under chapter 245C; and
184.16 	(v) (iv) the license holder shall forfeit $100 for each occurrence of a violation of law or 
184.17 	rule other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).
184.18 	For purposes of this section, "occurrence" means each violation identified in the 
184.19 	commissioner's fine order. Fines assessed against a license holder that holds a license to 
184.20 	provide home and community-based services, as identified in section 245D.03, subdivision 
184.21 	1, and a community residential setting or day services facility license under chapter 245D 
184.22 	where the services are provided, may be assessed against both licenses for the same 
184.23 	occurrence, but the combined amount of the fines shall not exceed the amount specified in 
184.24 	this clause for that occurrence.
184.25 	(5) When a fine has been assessed, the license holder may not avoid payment by closing, 
184.26 	selling, or otherwise transferring the licensed program to a third party. In such an event, the 
184.27 	license holder will be personally liable for payment. In the case of a corporation, each 
184.28 	controlling individual is personally and jointly liable for payment.
184.29 	(d) Except for background study violations involving the failure to comply with an order 
184.30 	to immediately remove an individual or an order to provide continuous, direct supervision, 
184.31 	the commissioner shall not issue a fine under paragraph (c) relating to a background study 
184.32 	violation to a license holder who self-corrects a background study violation before the 
184.33 	commissioner discovers the violation. A license holder who has previously exercised the 
184.34 	provisions of this paragraph to avoid a fine for a background study violation may not avoid 
185.1 	a fine for a subsequent background study violation unless at least 365 days have passed 
185.2 	since the license holder self-corrected the earlier background study violation.

185.3 	Sec. 46. Minnesota Statutes 2022, section 245A.08, subdivision 2a, is amended to read:
185.4 		Subd. 2a.Consolidated contested case hearings. (a) When a denial of a license under 
185.5 	section 245A.05 or a licensing sanction under section 245A.07, subdivision 3, is based on 
185.6 	a disqualification for which reconsideration was timely requested and which was not set 
185.7 	aside under section 245C.22, the scope of the contested case hearing shall include the 
185.8 	disqualification and the licensing sanction or denial of a license, unless otherwise specified 
185.9 	in this subdivision. When the licensing sanction or denial of a license is based on a 
185.10 	determination of maltreatment under section 626.557 or chapter 260E, or a disqualification 
185.11 	for serious or recurring maltreatment which was not set aside, the scope of the contested 
185.12 	case hearing shall include the maltreatment determination, disqualification, and the licensing 
185.13 	sanction or denial of a license, unless otherwise specified in this subdivision. In such cases, 
185.14 	a fair hearing under section 256.045 shall not be conducted as provided for in sections 
185.15 	245C.27, 260E.33, and 626.557, subdivision 9d.
185.16 	(b) Except for family child care and child foster care, Reconsideration of a maltreatment 
185.17 	determination under sections 260E.33 and 626.557, subdivision 9d, and reconsideration of 
185.18 	a disqualification under section 245C.22, shall not be conducted when:
185.19 	(1) a denial of a license under section 245A.05, or a licensing sanction under section 
185.20 	245A.07, is based on a determination that the license holder is responsible for maltreatment 
185.21 	or the disqualification of a license holder is based on serious or recurring maltreatment;
185.22 	(2) the denial of a license or licensing sanction is issued at the same time as the 
185.23 	maltreatment determination or disqualification; and
185.24 	(3) the license holder appeals the maltreatment determination or disqualification, and 
185.25 	denial of a license or licensing sanction. In these cases, a fair hearing shall not be conducted 
185.26 	under sections 245C.27, 260E.33, and 626.557, subdivision 9d. The scope of the contested 
185.27 	case hearing must include the maltreatment determination, disqualification, and denial of 
185.28 	a license or licensing sanction.
185.29 	Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment 
185.30 	determination or disqualification, but does not appeal the denial of a license or a licensing 
185.31 	sanction, reconsideration of the maltreatment determination shall be conducted under sections 
185.32 	260E.33 and 626.557, subdivision 9d, and reconsideration of the disqualification shall be 
186.1 	conducted under section 245C.22. In such cases, a fair hearing shall also be conducted as 
186.2 	provided under sections 245C.27, 260E.33, and 626.557, subdivision 9d.
186.3 	(c) In consolidated contested case hearings regarding sanctions issued in family child 
186.4 	care, child foster care, family adult day services, adult foster care, and community residential 
186.5 	settings, the county attorney shall defend the commissioner's orders in accordance with 
186.6 	section 245A.16, subdivision 4.
186.7 	(d) The commissioner's final order under subdivision 5 is the final agency action on the 
186.8 	issue of maltreatment and disqualification, including for purposes of subsequent background 
186.9 	studies under chapter 245C and is the only administrative appeal of the final agency 
186.10 	determination, specifically, including a challenge to the accuracy and completeness of data 
186.11 	under section 13.04.
186.12 	(e) When consolidated hearings under this subdivision involve a licensing sanction based 
186.13 	on a previous maltreatment determination for which the commissioner has issued a final 
186.14 	order in an appeal of that determination under section 256.045, or the individual failed to 
186.15 	exercise the right to appeal the previous maltreatment determination under section 260E.33
186.16 	or 626.557, subdivision 9d, the commissioner's order is conclusive on the issue of 
186.17 	maltreatment. In such cases, the scope of the administrative law judge's review shall be 
186.18 	limited to the disqualification and the licensing sanction or denial of a license. In the case 
186.19 	of a denial of a license or a licensing sanction issued to a facility based on a maltreatment 
186.20 	determination regarding an individual who is not the license holder or a household member, 
186.21 	the scope of the administrative law judge's review includes the maltreatment determination.
186.22 	(f) The hearings of all parties may be consolidated into a single contested case hearing 
186.23 	upon consent of all parties and the administrative law judge, if:
186.24 	(1) a maltreatment determination or disqualification, which was not set aside under 
186.25 	section 245C.22, is the basis for a denial of a license under section 245A.05 or a licensing 
186.26 	sanction under section 245A.07;
186.27 	(2) the disqualified subject is an individual other than the license holder and upon whom 
186.28 	a background study must be conducted under section 245C.03; and
186.29 	(3) the individual has a hearing right under section 245C.27.
186.30 	(g) When a denial of a license under section 245A.05 or a licensing sanction under 
186.31 	section 245A.07 is based on a disqualification for which reconsideration was requested and 
186.32 	was not set aside under section 245C.22, and the individual otherwise has no hearing right 
186.33 	under section 245C.27, the scope of the administrative law judge's review shall include the 
187.1 	denial or sanction and a determination whether the disqualification should be set aside, 
187.2 	unless section 245C.24 prohibits the set-aside of the disqualification. In determining whether 
187.3 	the disqualification should be set aside, the administrative law judge shall consider the 
187.4 	factors under section 245C.22, subdivision 4, to determine whether the individual poses a 
187.5 	risk of harm to any person receiving services from the license holder.
187.6 	(h) Notwithstanding section 245C.30, subdivision 5, when a licensing sanction under 
187.7 	section 245A.07 is based on the termination of a variance under section 245C.30, subdivision 
187.8 	4, the scope of the administrative law judge's review shall include the sanction and a 
187.9 	determination whether the disqualification should be set aside, unless section 245C.24 
187.10 	prohibits the set-aside of the disqualification. In determining whether the disqualification 
187.11 	should be set aside, the administrative law judge shall consider the factors under section 
187.12 	245C.22, subdivision 4, to determine whether the individual poses a risk of harm to any 
187.13 	person receiving services from the license holder.

187.14 	Sec. 47. Minnesota Statutes 2022, section 245A.09, subdivision 7, is amended to read:
187.15 		Subd. 7.Regulatory methods. (a) Where appropriate and feasible the commissioner 
187.16 	shall identify and implement alternative methods of regulation and enforcement to the extent 
187.17 	authorized in this subdivision. These methods shall include:
187.18 	(1) expansion of the types and categories of licenses that may be granted;
187.19 	(2) when the standards of another state or federal governmental agency or an independent 
187.20 	accreditation body have been shown to require the same standards, methods, or alternative 
187.21 	methods to achieve substantially the same intended outcomes as the licensing standards, 
187.22 	the commissioner shall consider compliance with the governmental or accreditation standards 
187.23 	to be equivalent to partial compliance with the licensing standards; and
187.24 	(3) use of an abbreviated inspection that employs key standards that have been shown 
187.25 	to predict full compliance with the rules.
187.26 	(b) If the commissioner accepts accreditation as documentation of compliance with a 
187.27 	licensing standard under paragraph (a), the commissioner shall continue to investigate 
187.28 	complaints related to noncompliance with all licensing standards. The commissioner may 
187.29 	take a licensing action for noncompliance under this chapter and shall recognize all existing 
187.30 	appeal rights regarding any licensing actions taken under this chapter.
187.31 	(c) The commissioner shall work with the commissioners of health,; public safety,;
187.32 	administration,; children, youth, and families; and education in consolidating duplicative 
187.33 	licensing and certification rules and standards if the commissioner determines that 
188.1 	consolidation is administratively feasible, would significantly reduce the cost of licensing, 
188.2 	and would not reduce the protection given to persons receiving services in licensed programs. 
188.3 	Where administratively feasible and appropriate, the commissioner shall work with the 
188.4 	commissioners of health, public safety, administration, and education in conducting joint 
188.5 	agency inspections of programs.
188.6 	(d) The commissioner shall work with the commissioners of health,; public safety,;
188.7 	administration,; children, youth, and families; and education in establishing a single point 
188.8 	of application for applicants who are required to obtain concurrent licensure from more 
188.9 	than one of the commissioners listed in this clause.
188.10 	(e) Unless otherwise specified in statute, the commissioner may conduct routine 
188.11 	inspections biennially.
188.12 	(f) For a licensed child care center, the commissioner shall conduct one unannounced 
188.13 	licensing inspection at least annually.

188.14 	Sec. 48. Minnesota Statutes 2022, section 245A.10, subdivision 1, is amended to read:
188.15 		Subdivision 1.Application or license fee required, programs exempt from fee. (a) 
188.16 	Unless exempt under paragraph (b), the commissioner shall charge a fee for evaluation of 
188.17 	applications and inspection of programs which are licensed under this chapter.
188.18 	(b) Except as provided under subdivision 2, no application or license fee shall be charged 
188.19 	for child foster care, adult foster care, family and group family child care, or a community 
188.20 	residential setting.

188.21 	Sec. 49. Minnesota Statutes 2022, section 245A.10, subdivision 2, is amended to read:
188.22 		Subd. 2.County fees for background studies applications and licensing 
188.23 	inspections. (a) Before the implementation of NETStudy 2.0, for purposes of family and 
188.24 	group family child care licensing under this chapter, a county agency may charge a fee to 
188.25 	an applicant or license holder to recover the actual cost of background studies, but in any 
188.26 	case not to exceed $100 annually. A county agency may also charge a license fee to an 
188.27 	applicant or license holder not to exceed $50 for a one-year license or $100 for a two-year 
188.28 	license.
188.29 	(b) Before the implementation of NETStudy 2.0, a county agency may charge a fee to 
188.30 	a legal nonlicensed child care provider or applicant for authorization to recover the actual 
188.31 	cost of background studies completed under section 119B.125, but in any case not to exceed 
188.32 	$100 annually.
189.1 	(c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):
189.2 	(1) in cases of financial hardship;
189.3 	(2) if the county has a shortage of providers in the county's area;
189.4 	(3) for new providers; or
189.5 	(4) for providers who have attained at least 16 hours of training before seeking initial 
189.6 	licensure.
189.7 	(d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on an 
189.8 	installment basis for up to one year. If the provider is receiving child care assistance payments 
189.9 	from the state, the provider may have the fees under paragraph (a) or (b) deducted from the 
189.10 	child care assistance payments for up to one year and the state shall reimburse the county 
189.11 	for the county fees collected in this manner.
189.12 	(e) (a) For purposes of adult foster care and child foster care licensing, and licensing the 
189.13 	physical plant of a community residential setting, under this chapter, a county agency may 
189.14 	charge a fee to a corporate applicant or corporate license holder to recover the actual cost 
189.15 	of licensing inspections, not to exceed $500 annually.
189.16 	(f) (b) Counties may elect to reduce or waive the fees in paragraph (e) (a) under the 
189.17 	following circumstances:
189.18 	(1) in cases of financial hardship;
189.19 	(2) if the county has a shortage of providers in the county's area; or
189.20 	(3) for new providers.

189.21 	Sec. 50. Minnesota Statutes 2023 Supplement, section 245A.10, subdivision 3, is amended 
189.22 	to read:
189.23 		Subd. 3.Application fee for initial license or certification. (a) For fees required under 
189.24 	subdivision 1, an applicant for an initial license or certification issued by the commissioner 
189.25 	shall submit a $500 application fee with each new application required under this subdivision. 
189.26 	An applicant for an initial day services facility license under chapter 245D shall submit a 
189.27 	$250 application fee with each new application. The application fee shall not be prorated, 
189.28 	is nonrefundable, and is in lieu of the annual license or certification fee that expires on 
189.29 	December 31. The commissioner shall not process an application until the application fee 
189.30 	is paid.
190.1 	(b) Except as provided in clauses (1) and (2) paragraph (c), an applicant shall apply for 
190.2 	a license to provide services at a specific location.
190.3 	(1) (c) For a license to provide home and community-based services to persons with 
190.4 	disabilities or age 65 and older under chapter 245D, an applicant shall submit an application 
190.5 	to provide services statewide. Notwithstanding paragraph (a), applications received by the 
190.6 	commissioner between July 1, 2013, and December 31, 2013, for licensure of services 
190.7 	provided under chapter 245D must include an application fee that is equal to the annual 
190.8 	license renewal fee under subdivision 4, paragraph (b), or $500, whichever is less. 
190.9 	Applications received by the commissioner after January 1, 2014, must include the application 
190.10 	fee required under paragraph (a). Applicants who meet the modified application criteria 
190.11 	identified in section 245A.042, subdivision 2, are exempt from paying an application fee.
190.12 	(2) For a license for a private agency to provide foster care or adoption services under 
190.13 	Minnesota Rules, parts 9545.0755 to 9545.0845, an applicant shall submit a single application 
190.14 	to provide services statewide.
190.15 	(c) The initial application fee charged under this subdivision does not include the 
190.16 	temporary license surcharge under section 16E.22.

190.17 	Sec. 51. Minnesota Statutes 2023 Supplement, section 245A.10, subdivision 4, is amended 
190.18 	to read:
190.19 		Subd. 4.License or certification fee for certain programs. (a) Child care centers shall 
190.20 	pay an annual nonrefundable license fee based on the following schedule:

190.22190.21
		Licensed Capacity
	Child Care Center
License Fee
	
190.23		1 to 24 persons
	$200
	
190.24		25 to 49 persons
	$300
	
190.25		50 to 74 persons
	$400
	
190.26		75 to 99 persons
	$500
	
190.27		100 to 124 persons
	$600
	
190.28		125 to 149 persons
	$700
	
190.29		150 to 174 persons
	$800
	
190.30		175 to 199 persons
	$900
	
190.31		200 to 224 persons
	$1,000
	
190.32		225 or more persons
	$1,100
	
190.33 	(b) (a)(1) A program licensed to provide one or more of the home and community-based 
190.34 	services and supports identified under chapter 245D to persons with disabilities or age 65 
191.1 	and older, shall pay an annual nonrefundable license fee based on revenues derived from 
191.2 	the provision of services that would require licensure under chapter 245D during the calendar 
191.3 	year immediately preceding the year in which the license fee is paid, according to the 
191.4 	following schedule:

191.5	License Holder Annual Revenue
		License Fee
	
191.6	less than or equal to $10,000
		$200
	
191.7
191.8	greater than $10,000 but less than or 
equal to $25,000
		$300
	
191.9191.10
	greater than $25,000 but less than or 
equal to $50,000
		$400
	
191.11
191.12	greater than $50,000 but less than or 
equal to $100,000
		$500
	
191.13
191.14	greater than $100,000 but less than or 
equal to $150,000
		$600
	
191.15
191.16	greater than $150,000 but less than or 
equal to $200,000
		$800
	
191.17
191.18	greater than $200,000 but less than or 
equal to $250,000
		$1,000
	
191.19
191.20	greater than $250,000 but less than or 
equal to $300,000
		$1,200
	
191.21
191.22	greater than $300,000 but less than or 
equal to $350,000
		$1,400
	
191.23
191.24	greater than $350,000 but less than or 
equal to $400,000
		$1,600
	
191.25
191.26	greater than $400,000 but less than or 
equal to $450,000
		$1,800
	
191.27
191.28	greater than $450,000 but less than or 
equal to $500,000
		$2,000
	
191.29
191.30	greater than $500,000 but less than or 
equal to $600,000
		$2,250
	
191.31
191.32	greater than $600,000 but less than or 
equal to $700,000
		$2,500
	
191.33
191.34	greater than $700,000 but less than or 
equal to $800,000
		$2,750
	
191.35
191.36	greater than $800,000 but less than or 
equal to $900,000
		$3,000
	
191.37
191.38	greater than $900,000 but less than or 
equal to $1,000,000
		$3,250
	
191.39
191.40	greater than $1,000,000 but less than or 
equal to $1,250,000
		$3,500
	
191.41
191.42	greater than $1,250,000 but less than or 
equal to $1,500,000
		$3,750
	
191.43
191.44	greater than $1,500,000 but less than or 
equal to $1,750,000
		$4,000
	
192.1
192.2	greater than $1,750,000 but less than or 
equal to $2,000,000
		$4,250
	
192.3
192.4	greater than $2,000,000 but less than or 
equal to $2,500,000
		$4,500
	
192.5
192.6	greater than $2,500,000 but less than or 
equal to $3,000,000
		$4,750
	
192.7
192.8	greater than $3,000,000 but less than or 
equal to $3,500,000
		$5,000
	
192.9192.10
	greater than $3,500,000 but less than or 
equal to $4,000,000
		$5,500
	
192.11
192.12	greater than $4,000,000 but less than or 
equal to $4,500,000
		$6,000
	
192.13
192.14	greater than $4,500,000 but less than or 
equal to $5,000,000
		$6,500
	
192.15
192.16	greater than $5,000,000 but less than or 
equal to $7,500,000
		$7,000
	
192.17
192.18	greater than $7,500,000 but less than or 
equal to $10,000,000
		$8,500
	
192.19
192.20	greater than $10,000,000 but less than or 
equal to $12,500,000
		$10,000
	
192.21
192.22	greater than $12,500,000 but less than or 
equal to $15,000,000
		$14,000
	
192.23	greater than $15,000,000
		$18,000
	
192.24 	(2) If requested, the license holder shall provide the commissioner information to verify 
192.25 	the license holder's annual revenues or other information as needed, including copies of 
192.26 	documents submitted to the Department of Revenue.
192.27 	(3) At each annual renewal, a license holder may elect to pay the highest renewal fee, 
192.28 	and not provide annual revenue information to the commissioner.
192.29 	(4) A license holder that knowingly provides the commissioner incorrect revenue amounts 
192.30 	for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount 
192.31 	of double the fee the provider should have paid.
192.32 	(5) Notwithstanding clause (1), a license holder providing services under one or more 
192.33 	licenses under chapter 245B that are in effect on May 15, 2013, shall pay an annual license 
192.34 	fee for calendar years 2014, 2015, and 2016, equal to the total license fees paid by the license 
192.35 	holder for all licenses held under chapter 245B for calendar year 2013. For calendar year 
192.36 	2017 and thereafter, the license holder shall pay an annual license fee according to clause 
192.37 	(1).
193.1 	(c) (b) A substance use disorder treatment program licensed under chapter 245G, to 
193.2 	provide substance use disorder treatment shall pay an annual nonrefundable license fee 
193.3 	based on the following schedule:

193.4		Licensed Capacity
	License Fee
	
193.5		1 to 24 persons
	$600
	
193.6		25 to 49 persons
	$800
	
193.7		50 to 74 persons
	$1,000
	
193.8		75 to 99 persons
	$1,200
	
193.9		100 or more persons
	$1,400
	
193.10 	(d) (c) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to 
193.11 	9530.6590, or a withdrawal management program licensed under chapter 245F shall pay 
193.12 	an annual nonrefundable license fee based on the following schedule:

193.13		Licensed Capacity
	License Fee
	
193.14		1 to 24 persons
	$760
	
193.15		25 to 49 persons
	$960
	
193.16		50 or more persons
	$1,160
	
193.17 	A detoxification program that also operates a withdrawal management program at the same 
193.18 	location shall only pay one fee based upon the licensed capacity of the program with the 
193.19 	higher overall capacity.
193.20 	(e) (d)Except for child foster care, A children's residential facility licensed under 
193.21 	Minnesota Rules, chapter 2960, to serve children shall pay an annual nonrefundable license 
193.22 	fee based on the following schedule:

193.23		Licensed Capacity
	License Fee
	
193.24		1 to 24 persons
	$1,000
	
193.25		25 to 49 persons
	$1,100
	
193.26		50 to 74 persons
	$1,200
	
193.27		75 to 99 persons
	$1,300
	
193.28		100 or more persons
	$1,400
	
193.29 	(f) (e) A residential facility licensed under section 245I.23 or Minnesota Rules, parts 
193.30 	9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual 
193.31 	nonrefundable license fee based on the following schedule:

193.32		Licensed Capacity
	License Fee
	
193.33		1 to 24 persons
	$2,525
	
193.34		25 or more persons
	$2,725
	
194.1 	(g) (f) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 
194.2 	9570.3400, to serve persons with physical disabilities shall pay an annual nonrefundable 
194.3 	license fee based on the following schedule:

194.4		Licensed Capacity
	License Fee
	
194.5		1 to 24 persons
	$450
	
194.6		25 to 49 persons
	$650
	
194.7		50 to 74 persons
	$850
	
194.8		75 to 99 persons
	$1,050
	
194.9		100 or more persons
	$1,250
	
194.10 	(h) A private agency licensed to provide foster care and adoption services under 
194.11 	Minnesota Rules, parts 9545.0755 to 9545.0845, shall pay an annual nonrefundable license 
194.12 	fee of $875.
194.13 	(i) (g) A program licensed as an adult day care center licensed under Minnesota Rules, 
194.14 	parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the 
194.15 	following schedule:

194.16		Licensed Capacity
	License Fee
	
194.17		1 to 24 persons
	$500
	
194.18		25 to 49 persons
	$700
	
194.19		50 to 74 persons
	$900
	
194.20		75 to 99 persons
	$1,100
	
194.21		100 or more persons
	$1,300
	
194.22 	(j) (h) A program licensed to provide treatment services to persons with sexual 
194.23 	psychopathic personalities or sexually dangerous persons under Minnesota Rules, parts 
194.24 	9515.3000 to 9515.3110, shall pay an annual nonrefundable license fee of $20,000.
194.25 	(k) (i) A mental health clinic certified under section 245I.20 shall pay an annual 
194.26 	nonrefundable certification fee of $1,550. If the mental health clinic provides services at a 
194.27 	primary location with satellite facilities, the satellite facilities shall be certified with the 
194.28 	primary location without an additional charge.

194.29 	Sec. 52. Minnesota Statutes 2023 Supplement, section 245A.13, subdivision 7, is amended 
194.30 	to read:
194.31 		Subd. 7.Rate recommendation. For any program receiving Medicaid funds and ordered 
194.32 	into receivership, the commissioner of human services may review rates of a residential or 
194.33 	nonresidential program that has needs or deficiencies documented by the Department of 
195.1 	Health; the Department of Children, Youth, and Families; or the Department of Human 
195.2 	Services. If the commissioner of human services determines that a review of the rate 
195.3 	established under sections 256B.5012 and 256B.5013 is needed, the commissioner shall:
195.4 	(1) review the order or determination that cites the deficiencies or needs; and
195.5 	(2) determine the need for additional staff, additional annual hours by type of employee, 
195.6 	and additional consultants, services, supplies, equipment, repairs, or capital assets necessary 
195.7 	to satisfy the needs or deficiencies.

195.8 	Sec. 53. Minnesota Statutes 2022, section 245A.14, subdivision 1, is amended to read:
195.9 		Subdivision 1.Permitted single-family residential use. A licensed nonresidential 
195.10 	program with a licensed capacity of 12 or fewer persons and a group family day care facility 
195.11 	licensed under Minnesota Rules, parts 9502.0315 to 9502.0445, to serve 14 or fewer children
195.12 	shall be considered a permitted single-family residential use of property for the purposes 
195.13 	of zoning and other land use regulations.

195.14 	Sec. 54. Minnesota Statutes 2022, section 245A.14, subdivision 14, is amended to read:
195.15 		Subd. 14.Attendance records for publicly funded services. (a) A child care center 
195.16 	licensed under this chapter and according to Minnesota Rules, chapter 9503, must maintain 
195.17 	documentation of actual attendance for each child receiving care for which the license holder 
195.18 	is reimbursed by a governmental program. The records must be accessible to the 
195.19 	commissioner during the program's hours of operation, they must be completed on the actual 
195.20 	day of attendance, and they must include:
195.21 	(1) the first and last name of the child;
195.22 	(2) the time of day that the child was dropped off; and
195.23 	(3) the time of day that the child was picked up.
195.24 	(b) A family child care provider licensed under this chapter and according to Minnesota 
195.25 	Rules, chapter 9502, must maintain documentation of actual attendance for each child 
195.26 	receiving care for which the license holder is reimbursed for the care of that child by a 
195.27 	governmental program. The records must be accessible to the commissioner during the 
195.28 	program's hours of operation, they must be completed on the actual day of attendance, and 
195.29 	they must include:
195.30 	(1) the first and last name of the child;
195.31 	(2) the time of day that the child was dropped off; and
196.1 	(3) the time of day that the child was picked up.
196.2 	(c) (a) An adult day services program licensed under this chapter and according to 
196.3 	Minnesota Rules, parts 9555.5105 to 9555.6265, must maintain documentation of actual 
196.4 	attendance for each adult day service recipient for which the license holder is reimbursed 
196.5 	by a governmental program. The records must be accessible to the commissioner during 
196.6 	the program's hours of operation, they must be completed on the actual day of attendance, 
196.7 	and they must include:
196.8 	(1) the first, middle, and last name of the recipient;
196.9 	(2) the time of day that the recipient was dropped off; and
196.10 	(3) the time of day that the recipient was picked up.
196.11 	(d) (b) Adult day services programs licensed under this chapter that are designated for 
196.12 	remote adult day services must maintain documentation of actual participation for each 
196.13 	adult day service recipient for whom the license holder is reimbursed by a governmental 
196.14 	program. The records must be accessible to the commissioner during the program's hours 
196.15 	of operation, must be completed on the actual day service is provided, and must include 
196.16 	the:
196.17 	(1) first, middle, and last name of the recipient;
196.18 	(2) time of day the remote services started;
196.19 	(3) time of day that the remote services ended; and
196.20 	(4) means by which the remote services were provided, through audio remote services 
196.21 	or through audio and video remote services.

196.22 	Sec. 55. Minnesota Statutes 2023 Supplement, section 245A.1435, is amended to read:
196.23 	245A.1435 REDUCTION OF RISK OF SUDDEN UNEXPECTED INFANT DEATH 
196.24 	IN LICENSED PROGRAMS.
196.25 	(a) When a license holder is placing an infant to sleep, the license holder must place the 
196.26 	infant on the infant's back, unless the license holder has documentation from the infant's 
196.27 	physician, advanced practice registered nurse, or physician assistant directing an alternative 
196.28 	sleeping position for the infant. The physician, advanced practice registered nurse, or 
196.29 	physician assistant directive must be on a form developed by the commissioner and must 
196.30 	remain on file at the licensed location. An infant who independently rolls onto its stomach 
196.31 	after being placed to sleep on its back may be allowed to remain sleeping on its stomach if 
197.1 	the infant is at least six months of age or the license holder has a signed statement from the 
197.2 	parent indicating that the infant regularly rolls over at home.
197.3 	(b) The license holder must place the infant in a crib directly on a firm mattress with a 
197.4 	fitted sheet that is appropriate to the mattress size, that fits tightly on the mattress, and 
197.5 	overlaps the underside of the mattress so it cannot be dislodged by pulling on the corner of 
197.6 	the sheet with reasonable effort. The license holder must not place anything in the crib with 
197.7 	the infant except for the infant's pacifier, as defined in Code of Federal Regulations, title 
197.8 	16, part 1511. The pacifier must be free from any sort of attachment. The requirements of 
197.9 	this section apply to license holders serving infants younger than one year of age. Licensed 
197.10 	child care providers must meet the crib requirements under section 245A.146. A correction 
197.11 	order shall not be issued under this paragraph unless there is evidence that a violation 
197.12 	occurred when an infant was present in the license holder's care.
197.13 	(c) If an infant falls asleep before being placed in a crib, the license holder must move 
197.14 	the infant to a crib as soon as practicable, and must keep the infant within sight of the license 
197.15 	holder until the infant is placed in a crib. When an infant falls asleep while being held, the 
197.16 	license holder must consider the supervision needs of other children in care when determining 
197.17 	how long to hold the infant before placing the infant in a crib to sleep. The sleeping infant 
197.18 	must not be in a position where the airway may be blocked or with anything covering the 
197.19 	infant's face.
197.20 	(d) When a license holder places an infant under one year of age down to sleep, the 
197.21 	infant's clothing or sleepwear must not have weighted materials, a hood, or a bib.
197.22 	(e) A license holder may place an infant under one year of age down to sleep wearing 
197.23 	a helmet if the license holder has signed documentation by a physician, advanced practice 
197.24 	registered nurse, physician assistant, licensed occupational therapist, or licensed physical 
197.25 	therapist on a form developed by the commissioner.
197.26 	(f) Placing a swaddled infant down to sleep in a licensed setting is not recommended 
197.27 	for an infant of any age and is prohibited for any infant who has begun to roll over 
197.28 	independently. However, with the written consent of a parent or guardian according to this 
197.29 	paragraph, a license holder may place the infant who has not yet begun to roll over on its 
197.30 	own down to sleep in a swaddle. A swaddle is defined as a one-piece sleepwear that wraps 
197.31 	over the infant's arms, fastens securely only across the infant's upper torso, and does not 
197.32 	constrict the infant's hips or legs. If a swaddle is used by a license holder, the license holder 
197.33 	must ensure that it meets the requirements of paragraph (d) and is not so tight that it restricts 
197.34 	the infant's ability to breathe or so loose that the fabric could cover the infant's nose and 
198.1 	mouth. Prior to any use of swaddling for sleep by a provider licensed under this chapter, 
198.2 	the license holder must obtain informed written consent for the use of swaddling from the 
198.3 	parent or guardian of the infant on a form developed by the commissioner.
198.4 	(g) A license holder may request a variance to this section to permit the use of a 
198.5 	cradleboard when requested by a parent or guardian for a cultural accommodation. A variance 
198.6 	for the use of a cradleboard may be issued only by the commissioner. The variance request 
198.7 	must be submitted on a form developed by the commissioner in partnership with Tribal 
198.8 	welfare agencies and the Department of Health.
198.9 	Programs licensed under this chapter must comply with the requirements of section 
198.10 	142B.46 whenever caring for infants.

198.11 	Sec. 56. Minnesota Statutes 2022, section 245A.1443, subdivision 2, is amended to read:
198.12 		Subd. 2.Requirements for providing education. (a) On or before the date of a child's 
198.13 	initial physical presence at the facility, the license holder must provide education to the 
198.14 	child's parent related to safe bathing and reducing the risk of sudden unexpected infant death 
198.15 	and abusive head trauma from shaking infants and young children. The license holder must 
198.16 	use the educational material developed by the commissioner to comply with this requirement. 
198.17 	At a minimum, the education must address:
198.18 	(1) instruction that a child or infant should never be left unattended around water, a tub 
198.19 	should be filled with only two to four inches of water for infants, and an infant should never 
198.20 	be put into a tub when the water is running; and
198.21 	(2) the risk factors related to sudden unexpected infant death and abusive head trauma 
198.22 	from shaking infants and young children, and means of reducing the risks, including the 
198.23 	safety precautions identified in section 245A.1435 142B.46 and the risks of co-sleeping.
198.24 	(b) The license holder must document the parent's receipt of the education and keep the 
198.25 	documentation in the parent's file. The documentation must indicate whether the parent 
198.26 	agrees to comply with the safeguards. If the parent refuses to comply, program staff must 
198.27 	provide additional education to the parent as described in the parental supervision plan. The 
198.28 	parental supervision plan must include the intervention, frequency, and staff responsible 
198.29 	for the duration of the parent's participation in the program or until the parent agrees to 
198.30 	comply with the safeguards.

199.1 	Sec. 57. Minnesota Statutes 2022, section 245A.1444, is amended to read:
199.2 	245A.1444 TRAINING BY OTHER PROGRAMS ON RISK OF SUDDEN 
199.3 	UNEXPECTED INFANT DEATH AND ABUSIVE HEAD TRAUMA.
199.4 	A licensed substance use disorder treatment program that serves clients with infants or 
199.5 	children through five years of age, who sleep at the program and a licensed children's 
199.6 	residential facility that serves infants or children through five years of age, must document 
199.7 	that before program staff persons or volunteers assist in the care of infants or children 
199.8 	through five years of age, they are instructed on the standards in section 245A.1435142B.46
199.9 	and receive training on reducing the risk of sudden unexpected infant death and abusive 
199.10 	head trauma from shaking infants and young children. The training conducted under this 
199.11 	section may be used to fulfill training requirements under section 245G.19, subdivision 4, 
199.12 	clause (2), and Minnesota Rules, part 2960.0100, subpart 3.
199.13 	This section does not apply to child care centers or family child care programs governed 
199.14 	by sections 245A.40 and 245A.50.

199.15 	Sec. 58. Minnesota Statutes 2022, section 245A.146, subdivision 1, is amended to read:
199.16 		Subdivision 1.Consumer product safety web link Crib safety requirements. The 
199.17 	commissioner shall maintain a link from the licensing division website to the United States 
199.18 	Consumer Product Safety Commission website that addresses crib safety information. The 
199.19 	commissioner and all licensed children's residential facilities, substance use disorder treatment 
199.20 	programs with children in care, and residential habilitation programs serving children with 
199.21 	developmental disabilities must follow the requirements of section 142B.45.

199.22 	Sec. 59. Minnesota Statutes 2022, section 245A.146, subdivision 2, is amended to read:
199.23 		Subd. 2.Documentation requirement for license holders. (a) All licensed child care 
199.24 	providers, children's residential facilities, substance use disorder treatment programs with 
199.25 	children in care, and residential habilitation programs serving children with developmental 
199.26 	disabilities must maintain the following documentation for every crib used by or that is 
199.27 	accessible to any child in care:
199.28 	(1) the crib's brand name; and
199.29 	(2) the crib's model number.
199.30 	(b) Any crib for which the license holder does not have the documentation required 
199.31 	under paragraph (a) must not be used by or be accessible to children in care.
200.1 	(c) Effective December 28, 2012, The licensed program must maintain documentation 
200.2 	that meets federal documentation requirements to show that every full-size and non-full-size 
200.3 	crib that is used by or is accessible to any child in care is compliant with federal crib standards 
200.4 	under Code of Federal Regulations, title 16, part 1219, for full-size baby cribs, or Code of 
200.5 	Federal Regulations, title 16, part 1220, for non-full-size baby cribs.

200.6 	Sec. 60. Minnesota Statutes 2022, section 245A.146, subdivision 5, is amended to read:
200.7 		Subd. 5.Commissioner of the licensed program inspection. During routine licensing 
200.8 	inspections, and when investigating complaints regarding alleged violations of this section, 
200.9 	the commissioner of the licensed program shall review the provider's documentation required 
200.10 	under subdivisions 3 and 4.

200.11 	Sec. 61. Minnesota Statutes 2022, section 245A.146, subdivision 6, is amended to read:
200.12 		Subd. 6.Failure to comply. The commissioner of the licensed program may issue a 
200.13 	licensing action under section 245A.06 or 245A.07 if a license holder fails to comply with 
200.14 	the requirements of this section.

200.15 	Sec. 62. Minnesota Statutes 2022, section 245A.147, subdivision 1, is amended to read:
200.16 		Subdivision 1.In-person checks on infants. (a) License holders of family child care 
200.17 	programs that serve infants are encouraged to monitor sleeping infants by conducting 
200.18 	in-person checks on each infant in their care every 30 minutes.
200.19 	(b) Upon enrollment of an infant in a family child care program, the license holder is 
200.20 	encouraged to conduct in-person checks on the sleeping infant every 15 minutes, during 
200.21 	the first four months of care.
200.22 	(c) When an infant has an upper respiratory infection, the license holder is encouraged 
200.23 	to conduct in-person checks on the sleeping infant every 15 minutes throughout the hours 
200.24 	of sleep.

200.25 	Sec. 63. Minnesota Statutes 2022, section 245A.156, subdivision 1, is amended to read:
200.26 		Subdivision 1.Licensed foster care. This section applies to county agencies, private 
200.27 	child-placing agencies, and individuals who place children or adults who have a known 
200.28 	communicable disease, as defined in section 144.4172, subdivision 2, in foster care settings 
200.29 	licensed under this chapter.

201.1 	Sec. 64. Minnesota Statutes 2022, section 245A.156, subdivision 2, is amended to read:
201.2 		Subd. 2.Placing agency's or individual's duties. Notwithstanding sections 144.291 to 
201.3 	144.298, before a county or private child-placing agency or individual places a child or 
201.4 	adult with a known communicable disease with a licensed foster care provider, the agency 
201.5 	or individual must:
201.6 	(1) disclose to the foster care license holder the individual's communicable disease; and
201.7 	(2) determine that the foster care provider has the ability to provide care to the individual.

201.8 	Sec. 65. Minnesota Statutes 2023 Supplement, section 245A.16, subdivision 1, is amended 
201.9 	to read:
201.10 		Subdivision 1.Delegation of authority to agencies. (a) County agencies and private 
201.11 	agencies that have been designated or licensed by the commissioner to perform licensing 
201.12 	functions and activities under section 245A.04; to recommend denial of applicants under 
201.13 	section 245A.05; to issue correction orders, to issue variances, and recommend a conditional 
201.14 	license under section 245A.06; or to recommend suspending or revoking a license or issuing 
201.15 	a fine under section 245A.07, shall comply with rules and directives of the commissioner 
201.16 	governing those functions and with this section. The following variances are excluded from 
201.17 	the delegation of variance authority and may be issued only by the commissioner:
201.18 	(1) dual licensure of family child care and family child foster care, dual licensure of 
201.19 	family child foster care and family adult foster care, dual licensure of child foster residence 
201.20 	setting and community residential setting, and dual licensure of family adult foster care and 
201.21 	family child care;
201.22 	(2) adult foster care maximum capacity;
201.23 	(3) adult foster care minimum age requirement;
201.24 	(4) child foster care maximum age requirement;
201.25 	(5) variances regarding disqualified individuals;
201.26 	(6) the required presence of a caregiver in the adult foster care residence during normal 
201.27 	sleeping hours;
201.28 	(7) variances to requirements relating to chemical use problems of a license holder or a 
201.29 	household member of a license holder; and
202.1 	(8) variances to section 245A.53 for a time-limited period. If the commissioner grants 
202.2 	a variance under this clause, the license holder must provide notice of the variance to all 
202.3 	parents and guardians of the children in care; and
202.4 	(9) (8) variances to section 245A.1435142B.46 for the use of a cradleboard for a cultural 
202.5 	accommodation.
202.6 	Except as provided in section 245A.14, subdivision 4, paragraph (a), clause (5), a county 
202.7 	agency must not grant a license holder a variance to exceed the maximum allowable family 
202.8 	child care license capacity of 14 children.
202.9 	(b) A county agency that has been designated by the commissioner to issue family child 
202.10 	care variances must:
202.11 	(1) publish the county agency's policies and criteria for issuing variances on the county's 
202.12 	public website and update the policies as necessary; and
202.13 	(2) annually distribute the county agency's policies and criteria for issuing variances to 
202.14 	all family child care license holders in the county.
202.15 	(c) For family child care programs, the commissioner shall require a county agency to 
202.16 	conduct one unannounced licensing review at least annually.
202.17 	(d) (b) For family adult day services programs, the commissioner may authorize licensing 
202.18 	reviews every two years after a licensee has had at least one annual review.
202.19 	(e) (c) A license issued under this section may be issued for up to two years.
202.20 	(f) (d) During implementation of chapter 245D, the commissioner shall consider:
202.21 	(1) the role of counties in quality assurance;
202.22 	(2) the duties of county licensing staff; and
202.23 	(3) the possible use of joint powers agreements, according to section 471.59, with counties 
202.24 	through which some licensing duties under chapter 245D may be delegated by the 
202.25 	commissioner to the counties.
202.26 	Any consideration related to this paragraph must meet all of the requirements of the corrective 
202.27 	action plan ordered by the federal Centers for Medicare and Medicaid Services.
202.28 	(g) (e) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or 
202.29 	successor provisions; and section 245D.061 or successor provisions, for family child foster 
202.30 	care programs providing out-of-home respite, as identified in section 245D.03, subdivision 
203.1 	1, paragraph (b), clause (1), is excluded from the delegation of authority to county and 
203.2 	private agencies.
203.3 	(h) A county agency shall report to the commissioner, in a manner prescribed by the 
203.4 	commissioner, the following information for a licensed family child care program:
203.5 	(1) the results of each licensing review completed, including the date of the review, and 
203.6 	any licensing correction order issued;
203.7 	(2) any death, serious injury, or determination of substantiated maltreatment; and
203.8 	(3) any fires that require the service of a fire department within 48 hours of the fire. The 
203.9 	information under this clause must also be reported to the state fire marshal within two 
203.10 	business days of receiving notice from a licensed family child care provider.

203.11 	Sec. 66. Minnesota Statutes 2022, section 245A.16, subdivision 3, is amended to read:
203.12 		Subd. 3.Recommendations to commissioner. The county or private agency shall not 
203.13 	make recommendations to the commissioner regarding licensure without first conducting 
203.14 	an inspection, and for family child care, a background study of the applicant under chapter 
203.15 	245C. The county or private agency must forward its recommendation to the commissioner 
203.16 	regarding the appropriate licensing action within 20 working days of receipt of a completed 
203.17 	application.

203.18 	Sec. 67. Minnesota Statutes 2022, section 245A.16, subdivision 5, is amended to read:
203.19 		Subd. 5.Instruction and technical assistance. (a) The commissioner shall provide 
203.20 	instruction and technical assistance to county and private agencies that are subject to this 
203.21 	section. County and private agencies shall cooperate with the commissioner in carrying out 
203.22 	this section by ensuring that affected employees participate in instruction and technical 
203.23 	assistance provided by the commissioner.
203.24 	(b) Within existing appropriations, the commissioner shall provide training to county 
203.25 	and private licensing agencies that perform child care licensing functions on identifying 
203.26 	and preventing fraud relating to provider reimbursement in the child care assistance program, 
203.27 	by December 31, 2019.

203.28 	Sec. 68. Minnesota Statutes 2022, section 245A.18, subdivision 1, is amended to read:
203.29 		Subdivision 1.Seat belt and child passenger restraint system use. When a child is 
203.30 	transported, a license holder must comply with all seat belt and child passenger restraint 
203.31 	system requirements under sections 169.685 and 169.686.
204.1 	All license holders that transport children must comply with the requirements of section 
204.2 	142B.51, subdivision 1, and license holders that transport a child or children under eight 
204.3 	years of age must document training that fulfills the requirements in section 142B.51, 
204.4 	subdivision 2.

204.5 	Sec. 69. Minnesota Statutes 2022, section 245A.25, subdivision 1, is amended to read:
204.6 		Subdivision 1.Certification scope and applicability. (a) This section establishes the 
204.7 	requirements that a children's residential facility or child foster residence setting must meet 
204.8 	to be certified for the purposes of Title IV-E funding requirements as:
204.9 	(1) a qualified residential treatment program;
204.10 	(2) a residential setting specializing in providing care and supportive services for youth 
204.11 	who have been or are at risk of becoming victims of sex trafficking or commercial sexual 
204.12 	exploitation;
204.13 	(3) a residential setting specializing in providing prenatal, postpartum, or parenting 
204.14 	support for youth; or
204.15 	(4) a supervised independent living setting for youth who are 18 years of age or older.
204.16 	(b) This section does not apply to a foster family setting in which the license holder 
204.17 	resides in the foster home.
204.18 	(c) Children's residential facilities licensed as detention settings according to Minnesota 
204.19 	Rules, parts 2960.0230 to 2960.0290, or secure programs according to Minnesota Rules, 
204.20 	parts 2960.0300 to 2960.0420, may not be certified under this section.
204.21 	(d) For purposes of this section, "license holder" means an individual, organization, or 
204.22 	government entity that was issued a children's residential facility or foster residence setting 
204.23 	license by the commissioner of human services under this chapter; by the commissioner of 
204.24 	children, youth, and families under chapter 142B; or by the commissioner of corrections 
204.25 	under chapter 241.
204.26 	(e) Certifications issued under this section for foster residence settings may only be 
204.27 	issued by the commissioner of human services and are not delegated to county or private 
204.28 	licensing agencies under section 245A.16.

204.29 	Sec. 70. Minnesota Statutes 2022, section 245A.25, subdivision 6, is amended to read:
204.30 		Subd. 6.Residential settings specializing in providing prenatal, postpartum, or 
204.31 	parenting supports for youth; certification requirements. (a) To be certified as a 
205.1 	residential setting specializing in providing prenatal, postpartum, or parenting supports for 
205.2 	youth, a license holder must meet the requirements of this subdivision.
205.3 	(b) The license holder must collaborate with the responsible social services agency and 
205.4 	other appropriate parties to implement each youth's out-of-home placement plan required 
205.5 	by section 260C.212, subdivision 1.
205.6 	(c) The license holder must specialize in providing prenatal, postpartum, or parenting 
205.7 	supports for youth and must:
205.8 	(1) provide equitable, culturally responsive, and individualized services to each youth;
205.9 	(2) assist each youth with accessing postpartum services during the same period of time 
205.10 	that a woman is considered pregnant for the purposes of medical assistance eligibility under 
205.11 	section 256B.055, subdivision 6, including providing each youth with:
205.12 	(i) sexual and reproductive health services and education; and
205.13 	(ii) a postpartum mental health assessment and follow-up services; and
205.14 	(3) discharge planning that includes the youth and the youth's family.
205.15 	(d) On or before the date of a child's initial physical presence at the facility, the license 
205.16 	holder must provide education to the child's parent related to safe bathing and reducing the 
205.17 	risk of sudden unexpected infant death and abusive head trauma from shaking infants and 
205.18 	young children. The license holder must use the educational material developed by the 
205.19 	commissioner of human services to comply with this requirement. At a minimum, the 
205.20 	education must address:
205.21 	(1) instruction that: (i) a child or infant should never be left unattended around water; 
205.22 	(ii) a tub should be filled with only two to four inches of water for infants; and (iii) an infant 
205.23 	should never be put into a tub when the water is running; and
205.24 	(2) the risk factors related to sudden unexpected infant death and abusive head trauma 
205.25 	from shaking infants and young children and means of reducing the risks, including the 
205.26 	safety precautions identified in section 245A.1435 142B.46 and the risks of co-sleeping.
205.27 	The license holder must document the parent's receipt of the education and keep the 
205.28 	documentation in the parent's file. The documentation must indicate whether the parent 
205.29 	agrees to comply with the safeguards described in this paragraph. If the parent refuses to 
205.30 	comply, program staff must provide additional education to the parent as described in the 
205.31 	parental supervision plan. The parental supervision plan must include the intervention, 
206.1 	frequency, and staff responsible for the duration of the parent's participation in the program 
206.2 	or until the parent agrees to comply with the safeguards described in this paragraph.
206.3 	(e) On or before the date of a child's initial physical presence at the facility, the license 
206.4 	holder must document the parent's capacity to meet the health and safety needs of the child 
206.5 	while on the facility premises considering the following factors:
206.6 	(1) the parent's physical and mental health;
206.7 	(2) the parent being under the influence of drugs, alcohol, medications, or other chemicals;
206.8 	(3) the child's physical and mental health; and
206.9 	(4) any other information available to the license holder indicating that the parent may 
206.10 	not be able to adequately care for the child.
206.11 	(f) The license holder must have written procedures specifying the actions that staff shall 
206.12 	take if a parent is or becomes unable to adequately care for the parent's child.
206.13 	(g) If the parent refuses to comply with the safeguards described in paragraph (d) or is 
206.14 	unable to adequately care for the child, the license holder must develop a parental supervision 
206.15 	plan in conjunction with the parent. The plan must account for any factors in paragraph (e) 
206.16 	that contribute to the parent's inability to adequately care for the child. The plan must be 
206.17 	dated and signed by the staff person who completed the plan.
206.18 	(h) The license holder must have written procedures addressing whether the program 
206.19 	permits a parent to arrange for supervision of the parent's child by another youth in the 
206.20 	program. If permitted, the facility must have a procedure that requires staff approval of the 
206.21 	supervision arrangement before the supervision by the nonparental youth occurs. The 
206.22 	procedure for approval must include an assessment of the nonparental youth's capacity to 
206.23 	assume the supervisory responsibilities using the criteria in paragraph (e). The license holder 
206.24 	must document the license holder's approval of the supervisory arrangement and the 
206.25 	assessment of the nonparental youth's capacity to supervise the child and must keep this 
206.26 	documentation in the file of the parent whose child is being supervised by the nonparental 
206.27 	youth.
206.28 	(i) The license holder must maintain a service delivery plan that describes how the 
206.29 	program provides services according to paragraphs (b) to (h).

206.30 	Sec. 71. Minnesota Statutes 2022, section 245A.25, subdivision 8, is amended to read:
206.31 		Subd. 8.Monitoring and inspections. (a) For a program licensed by the commissioner 
206.32 	of human services, the commissioner of human services may review a program's compliance 
207.1 	with certification requirements by conducting an inspection, a licensing review, or an 
207.2 	investigation of the program. The commissioner may issue a correction order to the license 
207.3 	holder for a program's noncompliance with the certification requirements of this section. 
207.4 	For a program licensed by the commissioner of human services, a license holder must make 
207.5 	a request for reconsideration of a correction order according to section 245A.06, subdivision 
207.6 	2.
207.7 	(b) For a program licensed by the commissioner of children, youth, and families or the 
207.8 	commissioner of corrections, the commissioner of human services may review the program's 
207.9 	compliance with the requirements for a certification issued under this section biennially 
207.10 	and may issue a correction order identifying the program's noncompliance with the 
207.11 	requirements of this section. The correction order must state the following:
207.12 	(1) the conditions that constitute a violation of a law or rule;
207.13 	(2) the specific law or rule violated; and
207.14 	(3) the time allowed for the program to correct each violation.
207.15 	(c) For a program licensed by the commissioner of children, youth, and families or the 
207.16 	commissioner of corrections, if a license holder believes that there are errors in the correction 
207.17 	order of the commissioner of human services, the license holder may ask the Department 
207.18 	of Human Services to reconsider the parts of the correction order that the license holder 
207.19 	alleges are in error. To submit a request for reconsideration, the license holder must send a 
207.20 	written request for reconsideration by United States mail to the commissioner of human 
207.21 	services. The request for reconsideration must be postmarked within 20 calendar days of 
207.22 	the date that the correction order was received by the license holder and must:
207.23 	(1) specify the parts of the correction order that are alleged to be in error;
207.24 	(2) explain why the parts of the correction order are in error; and
207.25 	(3) include documentation to support the allegation of error.
207.26 	A request for reconsideration does not stay any provisions or requirements of the correction 
207.27 	order. The commissioner of human services' disposition of a request for reconsideration is 
207.28 	final and not subject to appeal under chapter 14.
207.29 	(d) Nothing in this subdivision prohibits the commissioner of human services from 
207.30 	decertifying a license holder according to subdivision 9 prior to issuing a correction order.

208.1 	Sec. 72. Minnesota Statutes 2022, section 245A.66, subdivision 1, is amended to read:
208.2 		Subdivision 1.Internal review. Except for family child care settings and foster care for 
208.3 	children in the license holder's residence, License holders serving children shall: are subject 
208.4 	to the requirements of section 142B.54, subdivision 1.
208.5 	(1) establish and maintain policies and procedures to ensure that an internal review is 
208.6 	completed within 30 calendar days and that corrective action is taken if necessary to protect 
208.7 	the health and safety of children in care when the facility has reason to know that an internal 
208.8 	or external report of alleged or suspected maltreatment has been made. The review must 
208.9 	include an evaluation of whether:
208.10 	(i) related policies and procedures were followed;
208.11 	(ii) the policies and procedures were adequate;
208.12 	(iii) there is a need for additional staff training;
208.13 	(iv) the reported event is similar to past events with the children or the services involved; 
208.14 	and
208.15 	(v) there is a need for corrective action by the license holder to protect the health and 
208.16 	safety of children in care.
208.17 	Based on the results of this review, the license holder must develop, document, and 
208.18 	implement a corrective action plan designed to correct current lapses and prevent future 
208.19 	lapses in performance by individuals or the license holder, if any;
208.20 	(2) identify the primary and secondary person or position who will ensure that, when 
208.21 	required, internal reviews are completed. The secondary person shall be involved when 
208.22 	there is reason to believe that the primary person was involved in the alleged or suspected 
208.23 	maltreatment; and
208.24 	(3) document and make internal reviews accessible to the commissioner immediately 
208.25 	upon the commissioner's request. For the purposes of this section, the documentation provided 
208.26 	to the commissioner by the license holder may consist of a completed checklist that verifies 
208.27 	completion of each of the requirements of the review.

208.28 	Sec. 73. Minnesota Statutes 2023 Supplement, section 245A.66, subdivision 4, is amended 
208.29 	to read:
208.30 		Subd. 4.Ongoing training requirement. (a) In addition to the orientation training 
208.31 	required by the applicable licensing rules and statutes, children's residential facility and 
208.32 	private child-placing agency license holders must provide a training annually on the 
209.1 	maltreatment of minors reporting requirements and definitions in chapter 260E to each 
209.2 	mandatory reporter, as described in section 260E.06, subdivision 1.
209.3 	(b) In addition to the orientation training required by the applicable licensing rules and 
209.4 	statutes, all family child foster care license holders and caregivers and foster residence 
209.5 	setting staff and volunteers that are mandatory reporters as described in section 260E.06, 
209.6 	subdivision 1, must complete training each year on the maltreatment of minors reporting 
209.7 	requirements and definitions in chapter 260E.

209.8 	Sec. 74. REVISOR INSTRUCTION.
 209.9 	The revisor of statutes must renumber sections or subdivisions in column A as column 
209.10 	B.

209.11		Column A
	Column B
	
209.12		245A.02, subdivision 2c
	142B.01, subdivision 3
	
209.13		245A.02, subdivision 6a
	142B.01, subdivision 11
	
209.14		245A.02, subdivision 6b
	142B.01, subdivision 12
	
209.15		245A.02, subdivision 10a
	142B.01, subdivision 22
	
209.16		245A.02, subdivision 12
	142B.01, subdivision 23
	
209.17		245A.02, subdivision 16
	142B.01, subdivision 26
	
209.18		245A.02, subdivision 17
	142B.01, subdivision 27
	
209.19		245A.02, subdivision 18
	142B.01, subdivision 28
	
209.20		245A.02, subdivision 19
	142B.01, subdivision 13
	
209.21		245A.03, subdivision 2a
	142B.05, subdivision 3
	
209.22		245A.03, subdivision 2b
	142B.05, subdivision 4
	
209.23		245A.03, subdivision 4
	142B.05, subdivision 6
	
209.24		245A.03, subdivision 4a
	142B.05, subdivision 7
	
209.25		245A.03, subdivision 8
	142B.05, subdivision 10
	
209.26		245A.035
	142B.06
	
209.27		245A.04, subdivision 9a
	142B.10, subdivision 17
	
209.28		245A.04, subdivision 10
	142B.10, subdivision 18
	
209.29		245A.06, subdivision 8
	142B.16, subdivision 5
	
209.30		245A.06, subdivision 9
	142B.16, subdivision 6
	
209.31		245A.065
	142B.17
	
209.32		245A.07, subdivision 4
	142B.18, subdivision 6
	
209.33		245A.07, subdivision 5
	142B.18, subdivision 7
	
209.34		245A.14, subdivision 3
	142B.41, subdivision 3
	
209.35		245A.14, subdivision 4
	142B.41, subdivision 4
	
210.1		245A.14, subdivision 4a
	142B.41, subdivision 5
	
210.2		245A.14, subdivision 6
	142B.41, subdivision 6
	
210.3		245A.14, subdivision 8
	142B.41, subdivision 7
	
210.4		245A.14, subdivision 10
	142B.41, subdivision 8
	
210.5		245A.14, subdivision 11
	142B.41, subdivision 9
	
210.6		245A.14, subdivision 15
	142B.41, subdivision 11
	
210.7		245A.14, subdivision 16
	142B.41, subdivision 12
	
210.8		245A.14, subdivision 17
	142B.41, subdivision 13
	
210.9		245A.1434
	142B.60
	
210.10		245A.144
	142B.47
	
210.11		245A.1445
	142B.48
	
210.12		245A.145
	142B.61
	
210.13		245A.146, subdivision 2
	142B.45, subdivision 2
	
210.14		245A.146, subdivision 3
	142B.45, subdivision 3
	
210.15		245A.146, subdivision 4
	142B.45, subdivision 4
	
210.16		245A.146, subdivision 5
	142B.45, subdivision 5
	
210.17		245A.146, subdivision 6
	142B.45, subdivision 6
	
210.18		245A.147
	142B.75
	
210.19		245A.148
	142B.76
	
210.20		245A.149
	142B.77
	
210.21		245A.15
	142B.78
	
210.22		245A.1511
	142B.79
	
210.23		245A.152
	142B.62
	
210.24		245A.16, subdivision 7
	142B.30, subdivision 7
	
210.25		245A.16, subdivision 9
	142B.30, subdivision 9
	
210.26		245A.16, subdivision 11
	142B.30, subdivision 11
	
210.27		245A.23
	142B.63
	
210.28		245A.40
	142B.65
	
210.29		245A.41
	142B.66
	
210.30		245A.42
	142B.67
	
210.31		245A.50
	142B.70
	
210.32		245A.51
	142B.71
	
210.33		245A.52
	142B.72
	
210.34		245A.53
	142B.74
	
210.35		245A.66, subdivision 2
	142B.54, subdivision 2
	
210.36		245A.66, subdivision 3
	142B.54, subdivision 3
	
211.1 	The revisor of statutes must correct any statutory cross-references consistent with this 
211.2 	renumbering.

211.3 	Sec. 75. REPEALER.
 211.4 	(a) Minnesota Statutes 2022, sections 245A.04, subdivision 17; and 245A.09, subdivision 
211.5 	10, are repealed.
211.6 	(b) Minnesota Statutes 2023 Supplement, section 245A.18, subdivision 2, is repealed.

211.7 	ARTICLE 3
211.8 	CHAPTER 142C; CERTIFIED CHILD CARE CENTERS

211.9 	Section 1. [142C.17] PRONE RESTRAINT PROHIBITION.
211.10 	Programs certified under this chapter must comply with the requirements of section 
211.11 	245A.211.

211.12 	Sec. 2. Minnesota Statutes 2023 Supplement, section 245H.05, is amended to read:
211.13 	245H.05 MONITORING AND INSPECTIONS.
211.14 	(a) The commissioner must conduct an on-site inspection of a certified license-exempt 
211.15 	child care center at least once each calendar year to determine compliance with the health, 
211.16 	safety, and fire standards specific to a certified license-exempt child care center.
211.17 	(b) No later than November 19, 2017, The commissioner shall make publicly available 
211.18 	on the department's website the results of inspection reports for all certified centers including 
211.19 	the number of deaths, serious injuries, and instances of substantiated child maltreatment 
211.20 	that occurred in certified centers each year.

211.21 	Sec. 3. REVISOR INSTRUCTION.
 211.22 	The revisor of statutes must renumber sections or subdivisions in Column A as Column 
211.23 	B.

211.24		Column A
	Column B
	
211.25		245H.01
	142C.01
	
211.26		245H.02
	142C.02
	
211.27		245H.03
	142C.03
	
211.28		245H.04
	142C.04
	
211.29		245H.05
	142C.05
	
211.30		245H.06
	142C.06
	
212.1		245H.07
	142C.07
	
212.2		245H.08
	142C.08
	
212.3		245H.10
	142C.09
	
212.4		245H.11
	142C.10
	
212.5		245H.13
	142C.11
	
212.6		245H.14
	142C.12
	
212.7		245H.15
	142C.13
	
212.8		245H.16
	142C.14
	
212.9		245H.17
	142C.15
	
212.10		245H.18
	142C.16
	
212.11 	The revisor of statutes must correct any statutory cross-references consistent with this 
212.12 	renumbering.

212.13 	Sec. 4. REPEALER.
 212.14 	Minnesota Statutes 2022, section 245H.12, is repealed.

212.15 	ARTICLE 4
212.16 	CHAPTER 142D; EARLY CARE AND LEARNING

212.17 	Section 1. Minnesota Statutes 2022, section 119A.5411, is amended to read:
212.18 	119A.5411 FULL-DAY REQUIREMENTS.
212.19 	The following phase-in of full-day services in Head Start programs or licensed child 
212.20 	care as defined in chapter 245A is required:
212.21 	(1) by fiscal year 2009, a minimum of 25 percent of the total state-funded enrollment 
212.22 	throughout the state must be provided in full-day services;
212.23 	(2) by fiscal year 2011, a minimum of 40 percent of the total state-funded enrollment 
212.24 	throughout the state must be provided in full-day services; and
212.25 	(3) by fiscal year 2013, (a) A minimum of 50 percent of the total state-funded enrollment
212.26 	in Head Start programs, including in licensed child care programs, throughout the state must 
212.27 	be provided in full-day services.
212.28 	(b) Head Start programs may provide full-day services as part of their own program 
212.29 	model or through agreements with licensed full-day licensed child care programs. If licensed 
212.30 	child care providers programs do not exist in a geographic area, choose not to participate, 
212.31 	cannot meet the federal Head Start performance standards after sufficient opportunity, or a 
213.1 	Head Start program is unable to establish the full-day services as a part of their own program 
213.2 	model, the Head Start program may request exemption from the commissioner.

213.3 	Sec. 2. Minnesota Statutes 2023 Supplement, section 121A.19, is amended to read:
213.4 	121A.19 DEVELOPMENTAL SCREENING AID.
213.5 	(a) Each school year, the state must pay a district for each child or student screened by 
213.6 	the district according to the requirements of section 121A.17. The amount of state aid for 
213.7 	each child or student screened shall be: (1) $98 for a child screened at age three; (2) $65 
213.8 	for a child screened at age four; (3) $52 for a child screened at age five or six prior to 
213.9 	kindergarten; and (4) $39 for a student screened within 30 days after first enrolling in a 
213.10 	public school kindergarten if the student has not previously been screened according to the 
213.11 	requirements of section 121A.17. If this amount of aid is insufficient, the district may 
213.12 	permanently transfer from the general fund an amount that, when added to the aid, is 
213.13 	sufficient. Developmental screening aid shall not be paid for any student who is screened 
213.14 	more than 30 days after the first day of attendance at a public school kindergarten, except 
213.15 	if a student transfers to another public school kindergarten within 30 days after first enrolling 
213.16 	in a Minnesota public school kindergarten program. In this case, if the student has not been 
213.17 	screened, the district to which the student transfers may receive developmental screening 
213.18 	aid for screening that student when the screening is performed within 30 days of the transfer 
213.19 	date.
213.20 	(b) The commissioner and the commissioner of education shall enter into an agreement 
213.21 	under which the commissioner of education shall distribute funds appropriated for programs 
213.22 	under this section.

213.23 	Sec. 3. Minnesota Statutes 2022, section 124D.13, subdivision 2, is amended to read:
213.24 		Subd. 2.Program requirements. (a) Early childhood family education programs are 
213.25 	programs for children in the period of life from birth to kindergarten, for the parents and 
213.26 	other relatives of these children, and for expectant parents. To the extent that funds are 
213.27 	insufficient to provide programs for all children, early childhood family education programs 
213.28 	should emphasize programming for a child from birth to age three and encourage parents 
213.29 	and other relatives to involve four- and five-year-old children in school readiness programs, 
213.30 	and other public and nonpublic early learning programs. A district may not limit participation 
213.31 	to school district residents. Early childhood family education programs must provide:
214.1 	(1) programs to educate parents and other relatives about the physical, cognitive, social, 
214.2 	and emotional development of children and to enhance the skills of parents and other relatives 
214.3 	in providing for their children's learning and development;
214.4 	(2) structured learning activities requiring interaction between children and their parents 
214.5 	or relatives;
214.6 	(3) structured learning activities for children that promote children's development and 
214.7 	positive interaction with peers, which are held while parents or relatives attend parent 
214.8 	education classes;
214.9 	(4) information on related community resources;
214.10 	(5) information, materials, and activities that support the safety of children, including 
214.11 	prevention of child abuse and neglect;
214.12 	(6) a community needs assessment that identifies new and underserved populations, 
214.13 	identifies child and family risk factors, particularly those that impact children's learning and 
214.14 	development, and assesses family and parenting education needs in the community;
214.15 	(7) programming and services that are tailored to the needs of families and parents 
214.16 	prioritized in the community needs assessment; and
214.17 	(8) information about and, if needed, assist in making arrangements for an early childhood 
214.18 	health and developmental screening under sections 121A.16 and 121A.17, when the child 
214.19 	nears the third birthday.
214.20 	(b) Early childhood family education programs should prioritize programming and 
214.21 	services for families and parents identified in the community needs assessment, particularly 
214.22 	those families and parents with children with the most risk factors birth to age three.
214.23 	(c) Early childhood family education programs are encouraged to provide parents of 
214.24 	English learners with translated oral and written information to monitor the program's impact 
214.25 	on their children's English language development, to know whether their children are 
214.26 	progressing in developing their English and native language proficiency, and to actively 
214.27 	engage with and support their children in developing their English and native language 
214.28 	proficiency.
214.29 	The (d) Early childhood family education programs must include learning experiences 
214.30 	for children, parents, and other relatives that promote children's early literacy and, where 
214.31 	practicable, their native language skills and activities for children that require substantial 
214.32 	involvement of the children's parents or other relatives. The program Programs may provide 
214.33 	parenting education programming or services to anyone identified in the community needs 
215.1 	assessment. Providers must review the program periodically to assure the instruction and 
215.2 	materials are not racially, culturally, or sexually biased. The programs must encourage 
215.3 	parents to be aware of practices that may affect equitable development of children.
215.4 	(b) (e) For the purposes of this section, "relative" or "relatives" means noncustodial 
215.5 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
215.6 	placement, excluding parents.

215.7 	Sec. 4. Minnesota Statutes 2022, section 124D.13, subdivision 3, is amended to read:
215.8 		Subd. 3.Substantial parental involvement. The requirement of substantial parental or 
215.9 	other relative involvement in subdivision 2 means that:
215.10 	(a) (1) parents or other relatives must be physically present much of the time in classes 
215.11 	with their children or be in concurrent classes;
215.12 	(b) (2) parenting education or family education must be an integral part of every early 
215.13 	childhood family education program;
215.14 	(c) (3) early childhood family education appropriations must not be used for traditional 
215.15 	day care or nursery school, or similar programs; and
215.16 	(d) (4) the form of parent involvement common to kindergarten, elementary school, or 
215.17 	early childhood special education programs such as parent conferences, newsletters, and 
215.18 	notes to parents do not qualify a program under subdivision 2.

215.19 	Sec. 5. Minnesota Statutes 2022, section 124D.13, subdivision 4, is amended to read:
215.20 		Subd. 4.Home visiting program. (a) A district that levies for home visiting under 
215.21 	section 124D.135, subdivision 6, shall use this revenue to include as part of the early 
215.22 	childhood family education programs a parent education component that is designed to 
215.23 	reach isolated or at-risk families.
215.24 	(b) The home visiting program must:
215.25 	(1) incorporate evidence-informed parenting education practices designed to support 
215.26 	the healthy growth and development of children, with a priority focus on those children 
215.27 	who have high needs;
215.28 	(2) establish clear objectives and protocols for home visits;
215.29 	(3) encourage families to make a transition from home visits to site-based parenting 
215.30 	programs;
216.1 	(4) provide program services that are community-based, accessible, and culturally 
216.2 	relevant;
216.3 	(5) foster collaboration among existing agencies and community-based organizations 
216.4 	that serve young children and their families, such as public health evidence-based models 
216.5 	of home visiting and Head Start home visiting; and
216.6 	(6) provide information about and assist in making arrangements for an early childhood 
216.7 	health and developmental screening when the child nears his or her third birthday.
216.8 	(c) The home visiting program should be provided by licensed parenting educators, 
216.9 	certified family life educators, or professionals with an equivalent license that reflect the 
216.10 	demographic composition of the community to the extent possible.

216.11 	Sec. 6. Minnesota Statutes 2022, section 124D.135, subdivision 1, is amended to read:
216.12 		Subdivision 1.Revenue. The revenue for early childhood family education programs 
216.13 	for a school district equals $120 for fiscal year 2014 and the formula allowance for the year 
216.14 	times 0.023 for fiscal year 2015 and later, times the greater of:
216.15 	(1) 150; or
216.16 	(2) the number of people under five years of age residing in the district on October 1 of 
216.17 	the previous school year.

216.18 	Sec. 7. Minnesota Statutes 2022, section 124D.135, subdivision 3, is amended to read:
216.19 		Subd. 3.Early childhood family education levy.  By September 30 of each year, the 
216.20 	commissioner of education shall establish a tax rate for early childhood family education 
216.21 	revenue that raises $22,135,000 in each fiscal year. If After consulting with the commissioner 
216.22 	of children, youth, and families, if the commissioner of education determines that the amount 
216.23 	of the early childhood family education levy would exceed the early childhood family 
216.24 	education revenue, then the early childhood family education levy must equal the early 
216.25 	childhood family education revenue. A district may not certify an early childhood family 
216.26 	education levy unless it has met the annual program data reporting requirements under 
216.27 	section 124D.13, subdivision 13.

217.1 	Sec. 8. Minnesota Statutes 2022, section 124D.135, is amended by adding a subdivision 
217.2 	to read:
217.3 		Subd. 10.Funding. The commissioner and the commissioner of education shall enter 
217.4 	into an agreement under which the commissioner of education shall distribute funds 
217.5 	appropriated for programs under this section.

217.6 	Sec. 9. Minnesota Statutes 2022, section 124D.142, subdivision 1, is amended to read:
217.7 		Subdivision 1.System established. There is established A quality rating and improvement 
217.8 	system (QRIS) framework, known as Parent Aware, is established to ensure that Minnesota's 
217.9 	children have access to high-quality early learning and care programs in a range of settings 
217.10 	so that they are fully ready for kindergarten.

217.11 	Sec. 10. Minnesota Statutes 2023 Supplement, section 124D.142, subdivision 2, is amended 
217.12 	to read:
217.13 		Subd. 2.System components. (a) The standards-based voluntary quality rating and 
217.14 	improvement system includes:
217.15 	(1) at least a one-star rating for all programs licensed under Minnesota Rules, chapter 
217.16 	9502 or 9503, or Tribally licensed that do not opt out of the system under paragraph (b) and 
217.17 	that are not:
217.18 	(i) the subject of a finding of fraud for which the program or individual is currently 
217.19 	serving a penalty or exclusion;
217.20 	(ii) prohibited from receiving public funds under section 245.095, regardless of whether 
217.21 	the action is under appeal;
217.22 	(iii) under revocation, suspension, temporary immediate suspension, or decertification, 
217.23 	or is operating under a conditional license, regardless of whether the action is under appeal; 
217.24 	or
217.25 	(iv) the subject of suspended, denied, or terminated payments to a provider under section 
217.26 	119B.13, subdivision 6, paragraph (d), clause (1) or (2); 245E.02, subdivision 4, paragraph 
217.27 	(c), clause (4); or 256.98, subdivision 1, regardless of whether the action is under appeal;
217.28 	(2) quality opportunities in order to improve the educational outcomes of children so 
217.29 	that they are ready for school;
217.30 	(3) a framework based on the Minnesota quality rating system rating tool and a common 
217.31 	set of child outcome and program standards informed by evaluation results;
218.1 	(4) a tool to increase the number of publicly funded and regulated early learning and 
218.2 	care services in both public and private market programs that are high quality;
218.3 	(5) voluntary participation ensuring that if a program or provider chooses to participate, 
218.4 	the program or provider will be rated and may receive public funding associated with the 
218.5 	rating; and
218.6 	(6) tracking progress toward statewide access to high-quality early learning and care 
218.7 	programs, progress toward the number of low-income children whose parents can access 
218.8 	quality programs, and progress toward increasing the number of children who are fully 
218.9 	prepared to enter kindergarten.
218.10 	(b) By July 1, 2026, the commissioner of human services children, youth, and families
218.11 	shall establish a process by which a program may opt out of the rating under paragraph (a), 
218.12 	clause (1). The commissioner shall consult with Tribes to develop a process for rating 
218.13 	Tribally licensed programs that is consistent with the goal outlined in paragraph (a), clause 
218.14 	(1).

218.15 	Sec. 11. Minnesota Statutes 2022, section 124D.15, subdivision 3a, is amended to read:
218.16 		Subd. 3a.Application and reporting requirements. (a) A school readiness program 
218.17 	provider must include a biennial plan in the district's world's best workforce plan under 
218.18 	section 120B.11, describing how the school readiness program meets the program 
218.19 	requirements under subdivision 3.
218.20 	(b) Programs receiving school readiness funds annually must submit a report to the 
218.21 	department of education for transfer to the department of children, youth, and families.

218.22 	Sec. 12. Minnesota Statutes 2023 Supplement, section 124D.151, subdivision 5, is amended 
218.23 	to read:
218.24 		Subd. 5.Application process; priority for high poverty schools. (a) To qualify for 
218.25 	program approval for fiscal year 2017, a district or charter school must submit an application 
218.26 	to the commissioner by July 1, 2016. To qualify for program approval for fiscal year 2018 
218.27 	and later, a district or charter school must submit an application to the commissioner by 
218.28 	January 30 of the fiscal year prior to the fiscal year in which the program will be 
218.29 	implemented. The application must include:
218.30 	(1) a description of the proposed program, including the number of hours per week the 
218.31 	program will be offered at each school site or mixed-delivery location;
219.1 	(2) an estimate of the number of eligible children to be served in the program at each 
219.2 	school site or mixed-delivery location; and
219.3 	(3) a statement of assurances signed by the superintendent or charter school director that 
219.4 	the proposed program meets the requirements of subdivision 2.
219.5 	(b) The commissioner must review all applications submitted for fiscal year 2017 by 
219.6 	August 1, 2016, and must review all applications submitted for fiscal year 2018 and later
219.7 	by March 1 of the fiscal year in which the applications are received and determine whether 
219.8 	each application meets the requirements of paragraph (a).
219.9 	(c) The commissioner must divide all applications for new or expanded voluntary 
219.10 	prekindergarten programs under this section meeting the requirements of paragraph (a) and 
219.11 	school readiness plus programs into four groups as follows: the Minneapolis and St. Paul 
219.12 	school districts; other school districts located in the metropolitan equity region as defined 
219.13 	in section 126C.10, subdivision 28; school districts located in the rural equity region as 
219.14 	defined in section 126C.10, subdivision 28; and charter schools. Within each group, the 
219.15 	applications must be ordered by rank using a sliding scale based on the following criteria:
219.16 	(1) concentration of kindergarten students eligible for free or reduced-price meals by 
219.17 	school site on October 1 of the previous school year. A school site may contract to partner 
219.18 	with a community-based provider or Head Start under subdivision 3 or establish an early 
219.19 	childhood center and use the concentration of kindergarten students eligible for free or 
219.20 	reduced-price meals from a specific school site as long as those eligible children are 
219.21 	prioritized and guaranteed services at the mixed-delivery site or early education center. For 
219.22 	school district programs to be operated at locations that do not have free and reduced-price 
219.23 	meals concentration data for kindergarten programs for October 1 of the previous school 
219.24 	year, including mixed-delivery programs, the school district average concentration of 
219.25 	kindergarten students eligible for free or reduced-price meals must be used for the rank 
219.26 	ordering;
219.27 	(2) presence or absence of a three- or four-star Parent Aware rated program within the 
219.28 	school district or close proximity of the district. School sites with the highest concentration 
219.29 	of kindergarten students eligible for free or reduced-price meals that do not have a three- 
219.30 	or four-star Parent Aware program within the district or close proximity of the district shall 
219.31 	receive the highest priority, and school sites with the lowest concentration of kindergarten 
219.32 	students eligible for free or reduced-price meals that have a three- or four-star Parent Aware 
219.33 	rated program within the district or close proximity of the district shall receive the lowest 
219.34 	priority; and
220.1 	(3) whether the district has implemented a mixed delivery system.
220.2 	(d) The limit on participation for the programs as specified in subdivision 6 must initially 
220.3 	be allocated among the four groups based on each group's percentage share of the statewide 
220.4 	kindergarten enrollment on October 1 of the previous school year. Within each group, the 
220.5 	participation limit for fiscal years 2018 and 2019 must first be allocated to school sites 
220.6 	approved for aid in the previous year to ensure that those sites are funded for the same 
220.7 	number of participants as approved for the previous year. The remainder of the participation 
220.8 	limit for each group must be allocated among school sites in priority order until that region's 
220.9 	share of the participation limit is reached. If the participation limit is not reached for all 
220.10 	groups, the remaining amount must be allocated to the highest priority school sites, as 
220.11 	designated under this section, not funded in the initial allocation on a statewide basis. For 
220.12 	fiscal year 2020 and later, the participation limit must first be allocated to school sites 
220.13 	approved for aid in fiscal year 2017, and then to school sites approved for aid in fiscal year 
220.14 	2018 based on the statewide rankings under paragraph (c).
220.15 	(e) Once a school site or a mixed delivery site under subdivision 3 is approved for aid 
220.16 	under this subdivision, it shall remain eligible for aid if it continues to meet program 
220.17 	requirements, regardless of changes in the concentration of students eligible for free or 
220.18 	reduced-price meals.
220.19 	(f) If the total number of participants approved based on applications submitted under 
220.20 	paragraph (a) is less than the participation limit under subdivision 6, the commissioner must 
220.21 	notify all school districts and charter schools of the amount that remains available within 
220.22 	30 days of the initial application deadline under paragraph (a), and complete a second round 
220.23 	of allocations based on applications received within 60 days of the initial application deadline.
220.24 	(g) Procedures for approving applications submitted under paragraph (f) shall be the 
220.25 	same as specified in paragraphs (a) to (d), except that the allocations shall be made to the 
220.26 	highest priority school sites not funded in the initial allocation on a statewide basis.

220.27 	Sec. 13. Minnesota Statutes 2022, section 124D.151, subdivision 7, is amended to read:
220.28 		Subd. 7.Financial accounting. An eligible school district or charter school must record 
220.29 	expenditures attributable to voluntary prekindergarten pupils according to guidelines prepared 
220.30 	by the commissioner of education under section 127A.17.

221.1 	Sec. 14. Minnesota Statutes 2022, section 124D.151, is amended by adding a subdivision 
221.2 	to read:
221.3 		Subd. 8.Funding. The commissioner and the commissioner of education shall enter 
221.4 	into an agreement under which the commissioner of education shall distribute funds 
221.5 	appropriated for programs under this section.

221.6 	Sec. 15. Minnesota Statutes 2022, section 124D.16, is amended by adding a subdivision 
221.7 	to read:
221.8 		Subd. 8.Funding. The commissioner and the commissioner of education shall enter 
221.9 	into an agreement under which the commissioner of education shall distribute funds 
221.10 	appropriated for programs under this section.

221.11 	Sec. 16. Minnesota Statutes 2022, section 124D.165, subdivision 1, is amended to read:
221.12 		Subdivision 1.Establishment; purpose. There is established An early learning 
221.13 	scholarships program in order is established to close the opportunity gap by increasing 
221.14 	access to high-quality early childhood programs.

221.15 	Sec. 17. Minnesota Statutes 2023 Supplement, section 125A.02, subdivision 1, is amended 
221.16 	to read:
221.17 		Subdivision 1.Child with a disability. "Child with a disability" means a child identified 
221.18 	under federal and state special education law as deaf or hard-of-hearing, blind or visually 
221.19 	impaired, deafblind, or having a speech or language impairment, a physical impairment, 
221.20 	other health disability, developmental cognitive disability, an emotional or behavioral 
221.21 	disorder, specific learning disability, autism spectrum disorder, traumatic brain injury, or 
221.22 	severe multiple impairments, and who needs special education and related services, as 
221.23 	determined by the rules of the commissioner of children, youth, and families for children 
221.24 	from birth through age two and by the rules of the commissioner of education for all other 
221.25 	children. A licensed physician, an advanced practice registered nurse, a physician assistant, 
221.26 	or a licensed psychologist is qualified to make a diagnosis and determination of attention 
221.27 	deficit disorder or attention deficit hyperactivity disorder for purposes of identifying a child 
221.28 	with a disability.

221.29 	Sec. 18. Minnesota Statutes 2022, section 125A.02, subdivision 1a, is amended to read:
221.30 		Subd. 1a.Children ages three through from birth through age seven experiencing 
221.31 	developmental delays. In addition to subdivision 1, every child under age three, and at 
222.1 	local district discretion from age three to age seven, who needs special instruction and 
222.2 	services, as determined by the rules of the commissioner of children, youth, and families 
222.3 	for children from birth through age two and by the rules of the commissioner of education 
222.4 	for children ages three through seven, because the child has a substantial delay or has an 
222.5 	identifiable physical or mental condition known to hinder normal development is a child 
222.6 	with a disability.

222.7 	Sec. 19. Minnesota Statutes 2022, section 125A.02, subdivision 2, is amended to read:
222.8 		Subd. 2.Not a child with a disability. A child with a short-term or temporary physical 
222.9 	or emotional illness or disability, as determined by the rules of the commissioner of children, 
222.10 	youth, and families for children from birth through age two and by the rules of the 
222.11 	commissioner of education for all other children, is not a child with a disability.

222.12 	Sec. 20. Minnesota Statutes 2022, section 125A.28, is amended to read:
222.13 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
222.14 		Subdivision 1.Membership. An Interagency Coordinating Council of at least 1718, 
222.15 	but not more than 2526 members is established, in compliance with Public Law 108-446, 
222.16 	section 641. The members must be appointed by the governor and reasonably represent the 
222.17 	population of Minnesota. Council members must elect the council chair, who may not be 
222.18 	a representative of the Department of EducationChildren, Youth, and Families. The council 
222.19 	must be composed of at least five parents, including persons of color, of children with 
222.20 	disabilities under age 12, including at least three parents of a child with a disability under 
222.21 	age seven, five representatives of public or private providers of services for children with 
222.22 	disabilities under age five, including a special education director, county social service 
222.23 	director, local Head Start director, and a community health services or public health nursing 
222.24 	administrator, one member of the senate, one member of the house of representatives, one 
222.25 	representative of teacher preparation programs in early childhood-special education or other 
222.26 	preparation programs in early childhood intervention, at least one representative of advocacy 
222.27 	organizations for children with disabilities under age five, one physician who cares for 
222.28 	young children with special health care needs, one representative each from the 
222.29 	commissioners of commerce, education, health, human services, and children, youth, and 
222.30 	families, a representative from the state agency responsible for child care, foster care, mental 
222.31 	health, homeless coordinator of education of homeless children and youth, and a 
222.32 	representative from Indian health services or a tribal council. Section 15.059, subdivisions 
222.33 	2 to 4, apply to the council. The council must meet at least quarterly.
223.1 		Subd. 2.Implementing policy; duties. (a) The council must address methods of 
223.2 	implementing the state policy of developing and implementing comprehensive, coordinated, 
223.3 	multidisciplinary interagency programs of early intervention services for children with 
223.4 	disabilities and their families.
223.5 	(b) The duties of the council include recommending policies to ensure a comprehensive 
223.6 	and coordinated system of all state and local agency services for children under age five 
223.7 	with disabilities and their families. The policies must address how to incorporate each 
223.8 	agency's services into a unified state and local system of multidisciplinary assessment 
223.9 	practices, individual intervention plans, comprehensive systems to find children in need of 
223.10 	services, methods to improve public awareness, and assistance in determining the role of 
223.11 	interagency early intervention committees.
223.12 		Subd. 3.Recommendations; report. (a) Within 30 days of receiving the annual 
223.13 	determination from the federal Office of Special Education on the Minnesota Part C Annual 
223.14 	Performance Report, the council must recommend to the governor and the commissioners 
223.15 	of children, youth, and families; education,; health,; human services,; commerce,; and 
223.16 	employment and economic development policies for a comprehensive and coordinated 
223.17 	system.
223.18 	(b) Annually, the council must prepare and submit a report to the governor and the 
223.19 	secretary of the federal Department of Education on the status of early intervention services 
223.20 	and programs for infants and toddlers with disabilities and their families under the Individuals 
223.21 	with Disabilities Education Act, United States Code, title 20, sections 1471 to 1485 (Part 
223.22 	C, Public Law 102-119), as operated in Minnesota. The Minnesota Part C annual performance 
223.23 	report may serve as the report.
223.24 		Subd. 4.Expiration. Notwithstanding any other law to the contrary, the State Interagency 
223.25 	Coordinating Council does not expire unless federal law no longer requires the existence 
223.26 	of the council or committee.

223.27 	Sec. 21. Minnesota Statutes 2022, section 125A.35, subdivision 1, is amended to read:
223.28 		Subdivision 1.Lead agency; allocation of resources. The state lead agency must 
223.29 	administer the early intervention account that consists of federal allocations. The Part C 
223.30 	state plan must state the amount of federal resources in the early intervention account 
223.31 	available for use by local agencies. The state lead agency must enter into an agreement 
223.32 	under which the commissioner of education must distribute the funds to the local primary 
223.33 	agency designated by an Interagency Early Intervention Committee based on a formula that 
224.1 	includes a December 1 count of the prior year of Part C eligible children for the following 
224.2 	purposes:
224.3 	(1) as provided in Code of Federal Regulations, title 34, part 303.430, to arrange for 
224.4 	payment for early intervention services not elsewhere available, or to pay for services during 
224.5 	the pendency of a conflict procedure, including mediation, complaints, due process hearings, 
224.6 	and interagency disputes; and
224.7 	(2) to support interagency child find system activities.

224.8 	Sec. 22. Minnesota Statutes 2022, section 125A.45, is amended to read:
224.9 	125A.45 INTERAGENCY DISPUTE PROCEDURE.
224.10 	(a) A dispute between a school board and a county board that is responsible for 
224.11 	implementing the provisions of section 125A.29 regarding early identification, child and 
224.12 	family assessment, service coordination, and IFSP development and implementation must 
224.13 	be resolved according to this subdivision when the dispute involves services provided to 
224.14 	children and families eligible under the Individuals with Disabilities Education Act, United 
224.15 	States Code, title 20, section 1471 et seq. (Part C, Public Law 108-446).
224.16 	(b) A dispute occurs when the school board and county board are unable to agree as to 
224.17 	who is responsible to coordinate, provide, pay for, or facilitate payment for services from 
224.18 	public and private sources.
224.19 	(c) Written and signed disputes must be filed with the local primary agency.
224.20 	(d) The local primary agency must attempt to resolve the matter with the involved school 
224.21 	board and county board and may request mediation from the commissioner of the state lead 
224.22 	agency for this purpose.
224.23 	(e) When interagency disputes have not been resolved within 30 calendar days, the local 
224.24 	primary agency must request the commissioner of the state lead agency to review the matter 
224.25 	with the commissioners of education, health, and human services and make a decision. The 
224.26 	commissioner must provide a consistent process for reviewing those procedures. The 
224.27 	commissioners' decision is binding subject to the right of an aggrieved party to appeal to 
224.28 	the state court of appeals.
224.29 	(f) The local primary agency must ensure that eligible children and their families receive 
224.30 	early intervention services during resolution of a dispute. While a local dispute is pending, 
224.31 	the local primary agency must either assign financial responsibility to an agency or pay for 
224.32 	the service from the early intervention account under section 125A.35. If in resolving the 
225.1 	dispute, it is determined that the assignment of financial responsibility was inappropriate, 
225.2 	the responsibility for payment must be reassigned to the appropriate agency and the 
225.3 	responsible agency must make arrangements for reimbursing any expenditures incurred by 
225.4 	the agency originally assigned financial responsibility.

225.5 	Sec. 23. Minnesota Statutes 2022, section 125A.48, is amended to read:
225.6 	125A.48 STATE INTERAGENCY AGREEMENT.
225.7 	(a) The commissioners of the Departments ofchildren, youth, and families; education,;
225.8 	health,; and human services must enter into an agreement to implement this section and 
225.9 	Part C, Public Law 108-446, and as required by Code of Federal Regulations, title 34, section 
225.10 	303.523, to promote the development and implementation of interagency, coordinated, 
225.11 	multidisciplinary state and local early childhood intervention service systems for serving 
225.12 	eligible young children with disabilities, birth through age two, and their families and to 
225.13 	ensure the meaningful involvement of underserved groups, including children with disabilities 
225.14 	from minority, low-income, homeless, and rural families, and children with disabilities who 
225.15 	are wards of the state. The agreement must be reviewed annually.
225.16 	(b) The state interagency agreement must outline at a minimum the conditions, 
225.17 	procedures, purposes, and responsibilities of the participating state and local agencies for 
225.18 	the following:
225.19 	(1) membership, roles, and responsibilities of a state interagency committee for the 
225.20 	oversight of priorities and budget allocations under Part C, Public Law 108-446, and other 
225.21 	state allocations for this program;
225.22 	(2) child find;
225.23 	(3) establishment of local interagency agreements;
225.24 	(4) review by a state interagency committee of the allocation of additional state and 
225.25 	federal early intervention funds by local agencies;
225.26 	(5) fiscal responsibilities of the state and local agencies;
225.27 	(6) intra-agency and interagency dispute resolution;
225.28 	(7) payor of last resort;
225.29 	(8) maintenance of effort;
225.30 	(9) procedural safeguards, including mediation;
225.31 	(10) complaint resolution;
226.1 	(11) quality assurance;
226.2 	(12) data collection;
226.3 	(13) an annual summary to the state Interagency Coordinating Council regarding conflict 
226.4 	resolution activities including disputes, due process hearings, and complaints; and
226.5 	(14) other components of the state and local early intervention system consistent with 
226.6 	Public Law 108-446.
226.7 	Written materials must be developed for parents, IEIC's, and local service providers that 
226.8 	describe procedures developed under this section as required by Code of Federal Regulations, 
226.9 	title 34, section 303.

226.10 	Sec. 24. Minnesota Statutes 2022, section 125A.76, is amended by adding a subdivision 
226.11 	to read:
226.12 		Subd. 9.Funding. The commissioner and the commissioner of children, youth, and 
226.13 	families shall enter into an agreement, upon federal approval, under which the commissioner 
226.14 	of education shall distribute funds appropriated for programs under this section.

226.15 	Sec. 25. Laws 2017, First Special Session chapter 5, article 8, section 9, is amended by 
226.16 	adding a subdivision to read:
226.17 		Subd. 7.Funding. The commissioner and the commissioner of education shall enter 
226.18 	into an agreement under which the commissioner of education shall distribute funds 
226.19 	appropriated for programs under this section.

226.20 	Sec. 26. REVISOR INSTRUCTION.
 226.21 	(a) The revisor of statutes shall renumber each section of Minnesota Statutes listed in 
226.22 	column A with the number listed in column B. The revisor shall also make necessary 
226.23 	cross-reference changes consistent with the renumbering. The revisor shall also make any 
226.24 	technical, language, and other changes necessitated by the renumbering and cross-reference 
226.25 	changes in this act.

226.26	Column A
	Column B
	
226.27	119A.50
	142D.12
	
226.28	119A.52
	142D.121
	
226.29	119A.53
	142D.122
	
226.30	119A.535
	142D.123
	
226.31	119A.5411
	142D.124
	
227.1	119A.545
	142D.125
	
227.2	119B.195
	142D.30
	
227.3	119B.196
	142D.24
	
227.4	119B.25
	142D.20
	
227.5	119B.251
	142D.31
	
227.6	119B.252
	142D.32
	
227.7	119B.27
	142D.21
	
227.8	119B.28
	142D.22
	
227.9	119B.29
	142D.23
	
227.10	121A.16
	142D.09
	
227.11	121A.17
	142D.091
	
227.12	121A.18
	142D.092
	
227.13	121A.19
	142D.093
	
227.14	124D.13
	142D.10
	
227.15	124D.135
	142D.11
	
227.16	124D.141
	142D.16
	
227.17	124D.142
	142D.13
	
227.18	124D.15
	142D.05
	
227.19	124D.151
	142D.08
	
227.20	124D.16
	142D.06
	
227.21	124D.165
	142D.25
	
227.22	124D.2211
	142D.14
	
227.23	124D.23
	142D.15
	
227.24 	(b) The revisor of statutes shall codify Laws 2017, First Special Session chapter 5, article 
227.25 	8, section 9, as amended by article 4, section 25, as Minnesota Statutes, section 142D.07.
227.26 	(c) The revisor of statutes shall change "commissioner of education" to "commissioner 
227.27 	of children, youth, and families" and change "Department of Education" to "Department of 
227.28 	Children, Youth, and Families" as necessary in Minnesota Statutes, chapters 119A and 120 
227.29 	to 129C, to reflect the changes in this act and Laws 2023, chapter 70, article 12. The revisor 
227.30 	shall also make any technical, language, and other changes resulting from the change of 
227.31 	term to the statutory language, sentence structure, or both, if necessary to preserve the 
227.32 	meaning of the text.

228.1 	ARTICLE 5
228.2 	CHAPTER 142E; CHILD CARE PROGRAMS

228.3 	Section 1. Minnesota Statutes 2022, section 119B.03, subdivision 8, is amended to read:
228.4 		Subd. 8.Guaranteed floor. (a) Beginning January 1, 1996, Each county's guaranteed 
228.5 	floor shall equal 90 percent of the allocation received in the preceding calendar year. For 
228.6 	the period January 1, 1999, to December 31, 1999, each county's guaranteed floor must be 
228.7 	equal to its original calendar year 1998 allocation or its actual earnings for calendar year 
228.8 	1998, whichever is less.
228.9 	(b) When the amount of funds available for allocation is less than the amount available 
228.10 	in the previous year, each county's previous year allocation shall be reduced in proportion 
228.11 	to the reduction in the statewide funding, for the purpose of establishing the guaranteed 
228.12 	floor.

228.13 	Sec. 2. Minnesota Statutes 2022, section 119B.09, subdivision 12, is amended to read:
228.14 		Subd. 12.Sliding fee. Child care services to families must be made available on a sliding 
228.15 	fee basis. The commissioner shall convert eligibility requirements in this section and parent 
228.16 	fee schedules in section 119B.12 to state median income, based on a family size of three, 
228.17 	adjusted for family size, by July 1, 2008. The commissioner shall report to the 2008 
228.18 	legislature with the necessary statutory changes to codify this conversion to state median 
228.19 	income.

228.20 	Sec. 3. Minnesota Statutes 2023 Supplement, section 119B.125, subdivision 1a, is amended 
228.21 	to read:
228.22 		Subd. 1a.Background study required. (a) This subdivision only applies to legal, 
228.23 	nonlicensed family child care providers.
228.24 	(b) Prior to authorization, the commissioner of human services shall perform a background 
228.25 	study on individuals identified under section 245C.02, subdivision 6a.
228.26 	(c) After authorization, a background study shall must also be performed when an 
228.27 	individual identified under section 245C.02, subdivision 6a, joins the household. The provider 
228.28 	must report all family changes that would require a new background study.
228.29 	(d) At each reauthorization, the commissioner of children, youth, and families must 
228.30 	ensure that a background study through NETStudy 2.0 has been performed on all individuals 
228.31 	in the provider's household for whom a background study is required under paragraphs (b) 
228.32 	and (c).
229.1 	(e) Prior to a background study through NETStudy 2.0 expiring, another background 
229.2 	study must be completed on all individuals for whom the background study is expiring.
229.3 	(f) The commissioner of human services shall forward the background study 
229.4 	determination to the commissioner of children, youth, and families, who shall grant or deny 
229.5 	authorization as a legal nonlicensed family child care provider based on the commissioner 
229.6 	of human service's determination.

229.7 	Sec. 4. Minnesota Statutes 2023 Supplement, section 119B.125, subdivision 2, is amended 
229.8 	to read:
229.9 		Subd. 2.Persons who cannot be authorized. (a) The provider seeking authorization 
229.10 	under this section shall collect the information required under section 245C.05 and forward 
229.11 	the information to the commissioner of human services. The background study must include 
229.12 	a review of the information required under section 245C.08, subdivision 3.
229.13 	(b) A legal nonlicensed family child care provider is not authorized under this section 
229.14 	if:
229.15 	(1) the commissioner of human services determines that any household member who is 
229.16 	the subject of a background study is disqualified from direct contact with, or from access 
229.17 	to, persons served by the program and that disqualification has not been set aside or a 
229.18 	variance has not been granted under chapter 245C;
229.19 	(2) the person has refused to give written consent for disclosure of criminal history 
229.20 	records;
229.21 	(3) the person has been denied a family child care license;
229.22 	(4) the person has a family child care licensing disqualification that has not been set 
229.23 	aside; or
229.24 	(5) the person has admitted or a county has found that there is a preponderance of 
229.25 	evidence that fraudulent information was given to the county for child care assistance 
229.26 	application purposes or was used in submitting child care assistance bills for payment.

229.27 	Sec. 5. Minnesota Statutes 2023 Supplement, section 119B.125, subdivision 3, is amended 
229.28 	to read:
229.29 		Subd. 3.Authorization exception. When the commissioner denies a person authorization 
229.30 	as a legal nonlicensed family child care provider under subdivision 2 1a, paragraph (f), the 
230.1 	commissioner later may authorize that person as a provider if the following conditions are 
230.2 	met:
230.3 	(1) after receiving notice of the denial of the authorization, the person applies for and 
230.4 	obtains a valid child care license issued under chapter 245A, issued by a Tribe, or issued 
230.5 	by another state;
230.6 	(2) the person maintains the valid child care license; and
230.7 	(3) the person is providing child care in the state of licensure or in the area under the 
230.8 	jurisdiction of the licensing Tribe.

230.9 	Sec. 6. Minnesota Statutes 2022, section 119B.24, is amended to read:
230.10 	119B.24 DUTIES OF COMMISSIONER.
230.11 	In addition to the powers and duties already conferred by law, The commissioner of 
230.12 	human services shall:
230.13 	(1) administer the child care fund, including the basic sliding fee program authorized 
230.14 	under sections 119B.011 to 119B.16;
230.15 	(2) monitor the child care resource and referral programs established under section 
230.16 	119B.19; and
230.17 	(3) encourage child care providers to participate in a nationally recognized accreditation 
230.18 	system for early childhood and school-age care programs. Subject to approval by the 
230.19 	commissioner, family child care providers and early childhood and school-age care programs 
230.20 	shall be reimbursed for one-half of the direct cost of accreditation fees, upon successful 
230.21 	completion of accreditation.

230.22 	Sec. 7. REVISOR INSTRUCTION.
 230.23 	(a) The revisor of statutes must renumber sections or subdivisions in column A as column 
230.24 	B.

230.25		Column A
	Column B
	
230.26		119B.011
	142E.01
	
230.27		119B.011, subdivision 8
	142E.01, subdivision 8
	
230.28		119B.02
	142E.02
	
230.29		119B.025
	142E.03
	
230.30		119B.03
	142E.04
	
230.31		119B.035
	142E.05
	
231.1		119B.04
	142E.06
	
231.2		119B.05
	142E.08
	
231.3		119B.06
	142E.07
	
231.4		119B.08
	142E.09
	
231.5		119B.09
	142E.10
	
231.6		119B.095
	142E.11
	
231.7		119B.097
	142E.11, subdivision 4
	
231.8		119B.10
	142E.12
	
231.9		119B.105
	142E.13
	
231.10		119B.11
	142E.14
	
231.11		119B.12
	142E.15
	
231.12		119B.125
	142E.16
	
231.13		119B.13
	142E.17
	
231.14		119B.14
	142E.03, subdivision 6
	
231.15		119B.15
	142E.02, subdivision 9
	
231.16		119B.16
	142E.18
	
231.17		119B.161
	142E.19
	
231.18		119B.162
	142E.20
	
231.19		119B.189
	142E.30
	
231.20		119B.19
	142E.31
	
231.21		119B.21
	142E.32
	
231.22		119B.24
	142E.02, subdivision 8
	
231.23		119B.26
	142E.021
	
231.24		245E.01
	142E.50
	
231.25		245E.02
	142E.51
	
231.26		245E.03
	142E.52
	
231.27		245E.04
	142E.53
	
231.28		245E.05
	142E.54
	
231.29		245E.06
	142E.55
	
231.30		245E.07
	142E.56
	
231.31		245E.08
	142E.57
	
231.32		245E.09
	142E.58
	
231.33		256.046, subdivision 3
	142E.51, subdivision 5
	
231.34 	(b) The revisor of statutes must correct any statutory cross-references consistent with 
231.35 	this renumbering.

232.1 	ARTICLE 6
232.2 	CHAPTER 142F; FOOD, HOUSING, COMMUNITY SUPPORT

232.3 	Section 1. Minnesota Statutes 2022, section 256D.64, subdivision 1, is amended to read:
232.4 		Subdivision 1.Program established. The Minnesota food assistance program is 
232.5 	established to provide food assistance to legal noncitizens residing in this state who are 
232.6 	ineligible to participate in the federal Supplemental Nutrition Assistance Program (SNAP) 
232.7 	solely due to the provisions of section 402 or 403 of Public Law 104-193, as authorized by 
232.8 	Title VII of the 1997 Emergency Supplemental Appropriations Act, Public Law 105-18, 
232.9 	and as amended by Public Law 105-185.
232.10 	Beginning July 1, 2003, The Minnesota food assistance program is limited to those 
232.11 	noncitizens described in this subdivision who are 50 years of age or older.

232.12 	Sec. 2. Minnesota Statutes 2022, section 256D.64, subdivision 3, is amended to read:
232.13 		Subd. 3.Program administration. (a) The rules for the Minnesota food assistance 
232.14 	program shall follow exactly the regulations for the federal SNAP, except for the provisions 
232.15 	pertaining to immigration status under section 402 or 403 of Public Law 104-193.
232.16 	(b) The county agency shall use the income, budgeting, and benefit allotment regulations 
232.17 	of the federal SNAP to calculate an eligible recipient's monthly Minnesota food assistance 
232.18 	program benefit. Until September 30, 1998, eligible recipients under this subdivision shall 
232.19 	receive the average per person SNAP benefit issuance in Minnesota in the fiscal year ending 
232.20 	June 30, 1997. Beginning October 1, 1998, Eligible recipients shall receive the same level 
232.21 	of benefits as those provided by the federal SNAP to similarly situated citizen recipients. 
232.22 	The monthly Minnesota food assistance program benefits shall not exceed an amount equal 
232.23 	to the amount of federal SNAP benefits the household would receive if all members of the 
232.24 	household were eligible for the federal SNAP benefits.
232.25 	(c) Minnesota food assistance program benefits must be disregarded as income in all 
232.26 	programs that do not count SNAP benefits as income.
232.27 	(d) The county agency must redetermine a Minnesota food assistance program recipient's 
232.28 	eligibility for the federal SNAP when the agency receives information that the recipient's 
232.29 	legal immigration status has changed in such a way that would make the recipient potentially 
232.30 	eligible for the federal SNAP.
232.31 	(e) Until October 1, 1998, the commissioner may provide benefits under this section in 
232.32 	cash.

233.1 	Sec. 3. Minnesota Statutes 2023 Supplement, section 256D.65, subdivision 1, is amended 
233.2 	to read:
233.3 		Subdivision 1.SNAP outreach program. The commissioner of human services children, 
233.4 	youth, and families shall implement a Supplemental Nutrition Assistance Program (SNAP) 
233.5 	outreach program to inform low-income households about the availability, eligibility 
233.6 	requirements, application procedures, and benefits of SNAP that meets the requirements of 
233.7 	the United States Department of Agriculture.

233.8 	Sec. 4. REVISOR INSTRUCTION.
 233.9 	(a) The revisor of statutes must renumber each section of Minnesota Statutes in Column 
233.10 	A with the number in Column B.

233.11		Column A
	Column B
	
233.12		245.771
	142F.05
	
233.13		256D.60
	142F.10
	
233.14		256D.61
	142F.11
	
233.15		256D.62
	142F.101
	
233.16		256D.63
	142F.102
	
233.17		256D.64
	142F.13
	
233.18		256D.65
	142F.12
	
233.19		256E.30
	142F.30
	
233.20		256E.31
	142F.301
	
233.21		256E.32
	142F.302
	
233.22		256E.34
	142F.14
	
233.23		256E.35
	142F.20
	
233.24 	(b) The revisor of statutes must correct any statutory cross-references consistent with 
233.25 	this renumbering.

233.26 	ARTICLE 7
233.27 	CHAPTER 142G; MINNESOTA FAMILY INVESTMENT PROGRAM

233.28 	Section 1. Minnesota Statutes 2022, section 256J.01, subdivision 2, is amended to read:
233.29 		Subd. 2.Implementation of temporary assistance for needy families (TANF). The 
233.30 	Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 
233.31 	104-193, eliminates the entitlement program of aid to families with dependent children 
233.32 	(AFDC) and replaces it with block grants to states for temporary assistance for needy families 
233.33 	(TANF). TANF provides cash assistance for a limited time to families with children and to 
234.1 	pregnant women. Minnesota's TANF assistance will be provided through a statewide 
234.2 	expansion of MFIP. The modifications specified in this chapter are necessary to comply 
234.3 	with the new federal law and to improve MFIP. Eligible applicants and recipients of AFDC, 
234.4 	family general assistance, and the Supplemental Nutrition Assistance Program (SNAP) 
234.5 	benefits will be converted to the MFIP program. Effective January 1, 1998, Any new 
234.6 	application received for family cash assistance will be processed under the rules of this 
234.7 	chapter. Case maintenance conversion for existing AFDC and FGA cases to MFIP-S as 
234.8 	described in this chapter will begin January 1, 1998, and continue through March 31, 1998.

234.9 	Sec. 2. Minnesota Statutes 2022, section 256J.021, is amended to read:
234.10 	256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.
234.11 	(a) Families receiving assistance under this section shall comply with all applicable 
234.12 	requirements in this chapter.
234.13 	(b) Beginning October 1, 2006, The commissioner of human services must treat MFIP 
234.14 	expenditures made to or on behalf of any minor child under section 256J.02, subdivision 
234.15 	2, clause (1), who is part of a two-parent household, as expenditures under a separately 
234.16 	funded state program. These expenditures shall not count toward the state's maintenance of 
234.17 	effort (MOE) requirements under the federal Temporary Assistance to Needy Families 
234.18 	(TANF) program.
234.19 	(c) Beginning February 1, 2008, The commissioner of human services shall treat MFIP 
234.20 	expenditures made to or on behalf of any minor child who is part of a household that meets 
234.21 	criteria in section 256J.575, subdivision 3, as expenditures under a separately funded state 
234.22 	program under section 256J.575, subdivision 8.

234.23 	Sec. 3. Minnesota Statutes 2022, section 256J.08, subdivision 32, is amended to read:
234.24 		Subd. 32.Fair hearing or hearing. "Fair hearing" or "hearing" means the evidentiary 
234.25 	hearing conducted by the department human services of children, youth, and families judge 
234.26 	to resolve disputes as specified in section 256J.40, or if not applicable, section 256.045.

234.27 	Sec. 4. Minnesota Statutes 2022, section 256J.09, is amended by adding a subdivision to 
234.28 	read:
234.29 		Subd. 11.Domestic violence informational brochure. (a) The commissioner shall 
234.30 	provide a domestic violence informational brochure that provides information about the 
234.31 	existence of domestic violence waivers to all MFIP applicants. The brochure must explain 
234.32 	that eligible applicants may be temporarily waived from certain program requirements due 
235.1 	to domestic violence. The brochure must provide information about services and other 
235.2 	programs to help victims of domestic violence.
235.3 	(b) The brochure must be funded with TANF funds.

235.4 	Sec. 5. Minnesota Statutes 2023 Supplement, section 256J.35, is amended to read:
235.5 	256J.35 AMOUNT OF ASSISTANCE PAYMENT.
235.6 	Except as provided in paragraphs (a) to (e), the amount of an assistance payment is equal 
235.7 	to the difference between the MFIP standard of need or the Minnesota family wage level 
235.8 	in section 256J.24 and countable income.
235.9 	(a) Beginning July 1, 2015, MFIP assistance units are eligible for an MFIP housing 
235.10 	assistance grant of $110 per month, unless:
235.11 	(1) the housing assistance unit is currently receiving public and assisted rental subsidies 
235.12 	provided through the Department of Housing and Urban Development (HUD) and is subject 
235.13 	to section 256J.37, subdivision 3a; or
235.14 	(2) the assistance unit is a child-only case under section 256J.88.
235.15 	(b) On October 1 of each year, the commissioner shall adjust the MFIP housing assistance 
235.16 	grant in paragraph (a) for inflation based on the CPI-U for the prior calendar year.
235.17 	(c) When MFIP eligibility exists for the month of application, the amount of the assistance 
235.18 	payment for the month of application must be prorated from the date of application or the 
235.19 	date all other eligibility factors are met for that applicant, whichever is later. This provision 
235.20 	applies when an applicant loses at least one day of MFIP eligibility.
235.21 	(d) MFIP overpayments to an assistance unit must be recouped according to section 
235.22 	256P.08, subdivision 6.
235.23 	(e) An initial assistance payment must not be made to an applicant who is not eligible 
235.24 	on the date payment is made.

235.25 	Sec. 6. Minnesota Statutes 2022, section 256J.351, is amended to read:
235.26 	256J.351 HOUSING ASSISTANCE GRANTS; FORECASTED PROGRAM.
235.27 	Beginning July 1, 2015, Housing assistance grants under section 256J.35, paragraph (a), 
235.28 	must be a forecasted program and the commissioner, with the approval of the commissioner 
235.29 	of management and budget, may transfer unencumbered appropriation balances within fiscal 
235.30 	years of each biennium with other forecasted programs of the department of Human Services. 
235.31 	The commissioner shall inform the chairs and ranking minority members of the senate 
236.1 	Health and Human Services Finance Division and the house of representatives Health and 
236.2 	Human Services Finance committee house of representatives and senate committees and 
236.3 	divisions with primary jurisdiction over the housing assistance grants quarterly about transfers 
236.4 	made under this provision.

236.5 	Sec. 7. Minnesota Statutes 2023 Supplement, section 256J.37, subdivision 3a, is amended 
236.6 	to read:
236.7 		Subd. 3a.Rental subsidies; unearned income. (a) Effective July 1, 2003, The agency 
236.8 	shall count $50 of the value of public and assisted rental subsidies provided through the 
236.9 	Department of Housing and Urban Development (HUD) as unearned income to the cash 
236.10 	portion of the MFIP grant. The full amount of the subsidy must be counted as unearned 
236.11 	income when the subsidy is less than $50. The income from this subsidy shall be budgeted 
236.12 	according to section 256P.09.
236.13 	(b) The provisions of this subdivision shall not apply to an MFIP assistance unit which 
236.14 	includes a participant who is:
236.15 	(1) age 60 or older;
236.16 	(2) a caregiver who is suffering from an illness, injury, or incapacity that has been 
236.17 	certified by a qualified professional when the illness, injury, or incapacity is expected to 
236.18 	continue for more than 30 days and severely limits the person's ability to obtain or maintain 
236.19 	suitable employment; or
236.20 	(3) a caregiver whose presence in the home is required due to the illness or incapacity 
236.21 	of another member in the assistance unit, a relative in the household, or a foster child in the 
236.22 	household when the illness or incapacity and the need for the participant's presence in the 
236.23 	home has been certified by a qualified professional and is expected to continue for more 
236.24 	than 30 days.
236.25 	(c) The provisions of this subdivision shall not apply to an MFIP assistance unit where 
236.26 	the parental caregiver is an SSI participant.

236.27 	Sec. 8. Minnesota Statutes 2022, section 256J.395, subdivision 1, is amended to read:
236.28 		Subdivision 1.Vendor payment. (a) Effective July 1, 1997, When a county is required 
236.29 	to provide assistance to a participant in vendor form for shelter costs and utilities under this 
236.30 	chapter or chapter 256D, the cost of utilities for a given family may be assumed to be:
236.31 	(1) the average of the actual monthly cost of utilities for that family for the prior 12 
236.32 	months at the family's current residence, if applicable;
237.1 	(2) the monthly plan amount, if any, set by the local utilities for that family at the family's 
237.2 	current residence; or
237.3 	(3) the estimated monthly utility costs for the dwelling in which the family currently 
237.4 	resides.
237.5 	(b) For purposes of this section, "utility" means any of the following: municipal water 
237.6 	and sewer service; electric, gas, or heating fuel service; or wood, if that is the heating source.
237.7 	(c) In any instance where a vendor payment for rent is directed to a landlord not legally 
237.8 	entitled to the payment, the county social services agency shall immediately institute 
237.9 	proceedings to collect the amount of the vendored rent payment, which shall be considered 
237.10 	a debt under section 270A.03, subdivision 5.

237.11 	Sec. 9. Minnesota Statutes 2023 Supplement, section 256J.40, is amended to read:
237.12 	256J.40 FAIR HEARINGS.
237.13 	Caregivers receiving a notice of intent to sanction or a notice of adverse action that 
237.14 	includes a sanction, reduction in benefits, suspension of benefits, denial of benefits, or 
237.15 	termination of benefits may request a fair hearing. A request for a fair hearing must be 
237.16 	submitted in writing to the county agency or to the commissioner and must be mailed within 
237.17 	30 days after a participant or former participant receives written notice of the agency's action 
237.18 	or within 90 days when a participant or former participant shows good cause for not 
237.19 	submitting the request within 30 days. A former participant who receives a notice of adverse 
237.20 	action due to an overpayment may appeal the adverse action according to the requirements 
237.21 	in this section. Issues that may be appealed are:
237.22 	(1) the amount of the assistance payment;
237.23 	(2) a suspension, reduction, denial, or termination of assistance;
237.24 	(3) the basis for an overpayment, the calculated amount of an overpayment, and the level 
237.25 	of recoupment;
237.26 	(4) the eligibility for an assistance payment; and
237.27 	(5) the use of protective or vendor payments under section 256J.39, subdivision 2, clauses 
237.28 	(1) to (3).
237.29 	A county agency must not reduce, suspend, or terminate payment when an aggrieved 
237.30 	participant requests a fair hearing prior to the effective date of the adverse action or within 
237.31 	ten days of the mailing of the notice of adverse action, whichever is later, unless the 
237.32 	participant requests in writing not to receive continued assistance pending a hearing decision. 
238.1 	Assistance issued pending a fair hearing is subject to recovery under section 256P.08 when 
238.2 	as a result of the fair hearing decision the participant is determined ineligible for assistance 
238.3 	or the amount of the assistance received. A county agency may increase or reduce an 
238.4 	assistance payment while an appeal is pending when the circumstances of the participant 
238.5 	change and are not related to the issue on appeal. The commissioner's order is binding on 
238.6 	a county agency. No additional notice is required to enforce the commissioner's order.
238.7 	A county agency shall reimburse appellants for reasonable and necessary expenses of 
238.8 	attendance at the hearing, such as child care and transportation costs and for the transportation 
238.9 	expenses of the appellant's witnesses and representatives to and from the hearing. Reasonable 
238.10 	and necessary expenses do not include legal fees. Fair hearings must be conducted at a 
238.11 	reasonable time and date by an impartial human services children, youth, and families judge 
238.12 	employed by the department. The hearing may be conducted by telephone or at a site that 
238.13 	is readily accessible to persons with disabilities.
238.14 	The appellant may introduce new or additional evidence relevant to the issues on appeal. 
238.15 	Recommendations of the human services children, youth, and families judge and decisions 
238.16 	of the commissioner must be based on evidence in the hearing record and are not limited 
238.17 	to a review of the county agency action.

238.18 	Sec. 10. Minnesota Statutes 2022, section 256J.425, subdivision 8, is amended to read:
238.19 		Subd. 8.County extension request. A county may make a request to the commissioner 
238.20 	of human services, and the commissioner may grant, an extension for a category of 
238.21 	participants that are not extended under this section, provided the new category of participants 
238.22 	is consistent with the existing extension policy in which an extension is provided to 
238.23 	participants whose MFIP requirements conflict with other statutory requirements or 
238.24 	obligations. By January 15 of each year, the commissioner must report to the chairs and 
238.25 	ranking minority members of the senate and house of representatives committees having 
238.26 	jurisdiction over health and human services children, youth, and families the extensions 
238.27 	that were granted under this section during the previous calendar year. The legislature must 
238.28 	act in order for the extensions to continue. If the legislature fails to act by the end of the 
238.29 	legislative session in which the extensions were reported, the extensions granted under this 
238.30 	section during the previous calendar year expire on June 30 of that year.

238.31 	Sec. 11. Minnesota Statutes 2022, section 256J.645, subdivision 1, is amended to read:
238.32 		Subdivision 1.Authorization to enter into agreements. Effective July 1, 1997, The 
238.33 	commissioner may enter into agreements with federally recognized Indian tribes with a 
239.1 	reservation in the state to provide MFIP employment services to members of the Indian 
239.2 	tribe and to other caregivers who are a part of the tribal member's MFIP assistance unit. For 
239.3 	purposes of this section, "Indian tribe" means a tribe, band, nation, or other federally 
239.4 	recognized group or community of Indians. The commissioner may also enter into an 
239.5 	agreement with a consortium of Indian tribes providing the governing body of each Indian 
239.6 	tribe in the consortium complies with the provisions of this section.

239.7 	Sec. 12. REVISOR INSTRUCTION.
 239.8 	The revisor of statutes must renumber sections or subdivisions in Column A as Column 
239.9 	B.

239.10		Column A
	Column B
	
239.11		256.935
	142G.95
	
239.12		256J.01
	142G.01
	
239.13		256J.02
	142G.03
	
239.14		256J.021
	142G.04
	
239.15		256J.06
	142G.01, subdivision 6
	
239.16		256J.08
	142G.02
	
239.17		256J.09
	142G.05
	
239.18		256J.10
	142G.10, subdivision 1
	
239.19		256J.11
	142G.11
	
239.20		256J.12
	142G.12
	
239.21		256J.13
	142G.13
	
239.22		256J.14
	142G.14
	
239.23		256J.15
	142G.15
	
239.24		256J.21
	142G.16
	
239.25		256J.24
	142G.17
	
239.26		256J.26
	142G.18
	
239.27		256J.28
	142G.19
	
239.28		256J.30
	142G.20
	
239.29		256J.31
	142G.21
	
239.30		256J.315
	142G.01, subdivision 7
	
239.31		256J.32, subdivision 1
	142G.10, subdivision 2
	
239.32		256J.33
	142G.22
	
239.33		256J.34
	142G.30
	
239.34		256J.35
	142G.32, subdivision 1
	
239.35		256J.351
	142G.32, subdivision 2
	
239.36		256J.36
	142G.33
	
240.1		256J.37
	142G.31
	
240.2		256J.39
	142G.35
	
240.3		256J.395
	142G.36
	
240.4		256J.396
	142G.34
	
240.5		256J.40
	142G.45
	
240.6		256J.415
	142G.41
	
240.7		256J.42
	142G.40
	
240.8		256J.425
	142G.42
	
240.9		256J.45
	142G.27
	
240.10		256J.46
	142G.70
	
240.11		256J.49
	142G.50
	
240.12		256J.50
	142G.54
	
240.13		256J.51
	142G.65
	
240.14		256J.515
	142G.55
	
240.15		256J.521
	142G.56
	
240.16		256J.53
	142G.58
	
240.17		256J.531
	142G.59
	
240.18		256J.54
	142G.57
	
240.19		256J.545
	142G.53
	
240.20		256J.55
	142G.51
	
240.21		256J.561
	142G.52
	
240.22		256J.57
	142G.71
	
240.23		256J.575
	142G.75
	
240.24		256J.61
	142G.25
	
240.25		256J.621
	142G.37
	
240.26		256J.626
	142G.76
	
240.27		256J.645
	142G.77
	
240.28		256J.66
	142G.60
	
240.29		256J.67
	142G.61
	
240.30		256J.68
	142G.62
	
240.31		256J.69
	142G.64
	
240.32		256J.72
	142G.63
	
240.33		256J.74
	142G.26
	
240.34		256J.75
	142G.78
	
240.35		256J.751
	142G.79
	
240.36		256J.77
	142G.38
	
240.37		256J.78
	142G.85
	
241.1		256J.88
	142G.01, subdivision 8
	
241.2		256J.95
	142G.90
	
241.3 	The revisor of statutes must correct any statutory cross-references consistent with this 
241.4 	renumbering.

241.5 	Sec. 13. REPEALER.
 241.6 	Minnesota Statutes 2022, sections 256J.01, subdivision 5; and 256J.78, subdivision 3,
241.7 	are repealed.

241.8 	ARTICLE 8
241.9 	MISCELLANEOUS

241.10 	Section 1. Minnesota Statutes 2022, section 13.46, subdivision 1, is amended to read:
241.11 		Subdivision 1.Definitions. As used in this section:
241.12 	(a) "Individual" means an individual according to section 13.02, subdivision 8, but does 
241.13 	not include a vendor of services.
241.14 	(b) "Program" includes all programs for which authority is vested in a component of the 
241.15 	welfare system according to statute or federal law, including, but not limited to, Native 
241.16 	American Tribe programs that provide a service component of the welfare system, the aid 
241.17 	to families with dependent children program formerly codified in sections 256.72 to 256.87, 
241.18 	Minnesota family investment program, temporary assistance for needy families program,
241.19 	medical assistance, general assistance, general assistance medical care formerly codified in 
241.20 	chapter 256D, child care assistance program, and child support collections.
241.21 	(c) "Welfare system" includes the Department of Human Services,; the Department of 
241.22 	Children, Youth, and Families; local social services agencies,; county welfare agencies,;
241.23 	county public health agencies,; county veteran services agencies,; county housing agencies,;
241.24 	private licensing agencies,; the public authority responsible for child support enforcement,;
241.25 	human services boards,; community mental health center boards, state hospitals, state nursing 
241.26 	homes, the ombudsman for mental health and developmental disabilities,; Native American 
241.27 	Tribes to the extent a Tribe provides a service component of the welfare system,; and persons, 
241.28 	agencies, institutions, organizations, and other entities under contract to any of the above 
241.29 	agencies to the extent specified in the contract.
241.30 	(d) "Mental health data" means data on individual clients and patients of community 
241.31 	mental health centers, established under section 245.62, mental health divisions of counties 
242.1 	and other providers under contract to deliver mental health services, or the ombudsman for 
242.2 	mental health and developmental disabilities.
242.3 	(e) "Fugitive felon" means a person who has been convicted of a felony and who has 
242.4 	escaped from confinement or violated the terms of probation or parole for that offense.
242.5 	(f) "Private licensing agency" means an agency licensed by the commissioner of human 
242.6 	services children, youth, and families under chapter 245A 142B to perform the duties under 
242.7 	section 245A.16 142B.30.

242.8 	Sec. 2. Minnesota Statutes 2023 Supplement, section 13.46, subdivision 2, is amended to 
242.9 	read:
242.10 		Subd. 2.General. (a) Data on individuals collected, maintained, used, or disseminated 
242.11 	by the welfare system are private data on individuals, and shall not be disclosed except:
242.12 	(1) according to section 13.05;
242.13 	(2) according to court order;
242.14 	(3) according to a statute specifically authorizing access to the private data;
242.15 	(4) to an agent of the welfare system and an investigator acting on behalf of a county, 
242.16 	the state, or the federal government, including a law enforcement person or attorney in the 
242.17 	investigation or prosecution of a criminal, civil, or administrative proceeding relating to the 
242.18 	administration of a program;
242.19 	(5) to personnel of the welfare system who require the data to verify an individual's 
242.20 	identity; determine eligibility, amount of assistance, and the need to provide services to an 
242.21 	individual or family across programs; coordinate services for an individual or family; 
242.22 	evaluate the effectiveness of programs; assess parental contribution amounts; and investigate 
242.23 	suspected fraud;
242.24 	(6) to administer federal funds or programs;
242.25 	(7) between personnel of the welfare system working in the same program;
242.26 	(8) to the Department of Revenue to assess parental contribution amounts for purposes 
242.27 	of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs 
242.28 	and to identify individuals who may benefit from these programs, and prepare the databases 
242.29 	for reports required under section 270C.13 and Laws 2008, chapter 366, article 17, section 
242.30 	6. The following information may be disclosed under this paragraph: an individual's and 
242.31 	their dependent's names, dates of birth, Social Security or individual taxpayer identification 
242.32 	numbers, income, addresses, and other data as required, upon request by the Department 
243.1 	of Revenue. Disclosures by the commissioner of revenue to the commissioner of human 
243.2 	services for the purposes described in this clause are governed by section 270B.14, 
243.3 	subdivision 1. Tax refund or tax credit programs include, but are not limited to, the dependent 
243.4 	care credit under section 290.067, the Minnesota working family credit under section 
243.5 	290.0671, the property tax refund under section 290A.04, and the Minnesota education 
243.6 	credit under section 290.0674;
243.7 	(9) between the Department of Human Services,; the Department of Employment and 
243.8 	Economic Development,; the Department of Children, Youth, and Families; and, when 
243.9 	applicable, the Department of Education, for the following purposes:
243.10 	(i) to monitor the eligibility of the data subject for unemployment benefits, for any 
243.11 	employment or training program administered, supervised, or certified by that agency;
243.12 	(ii) to administer any rehabilitation program or child care assistance program, whether 
243.13 	alone or in conjunction with the welfare system;
243.14 	(iii) to monitor and evaluate the Minnesota family investment program or the child care 
243.15 	assistance program by exchanging data on recipients and former recipients of Supplemental 
243.16 	Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D, 
243.17 	256J, or 256K, child care assistance under chapter 119B, medical programs under chapter 
243.18 	256B or 256L, or a medical program formerly codified under chapter 256D; and
243.19 	(iv) to analyze public assistance employment services and program utilization, cost, 
243.20 	effectiveness, and outcomes as implemented under the authority established in Title II, 
243.21 	Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999. 
243.22 	Health records governed by sections 144.291 to 144.298 and "protected health information" 
243.23 	as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code 
243.24 	of Federal Regulations, title 45, parts 160-164, including health care claims utilization 
243.25 	information, must not be exchanged under this clause;
243.26 	(10) to appropriate parties in connection with an emergency if knowledge of the 
243.27 	information is necessary to protect the health or safety of the individual or other individuals 
243.28 	or persons;
243.29 	(11) data maintained by residential programs as defined in section 245A.02 may be 
243.30 	disclosed to the protection and advocacy system established in this state according to Part 
243.31 	C of Public Law 98-527 to protect the legal and human rights of persons with developmental 
243.32 	disabilities or other related conditions who live in residential facilities for these persons if 
243.33 	the protection and advocacy system receives a complaint by or on behalf of that person and 
244.1 	the person does not have a legal guardian or the state or a designee of the state is the legal 
244.2 	guardian of the person;
244.3 	(12) to the county medical examiner or the county coroner for identifying or locating 
244.4 	relatives or friends of a deceased person;
244.5 	(13) data on a child support obligor who makes payments to the public agency may be 
244.6 	disclosed to the Minnesota Office of Higher Education to the extent necessary to determine 
244.7 	eligibility under section 136A.121, subdivision 2, clause (5);
244.8 	(14) participant Social Security or individual taxpayer identification numbers and names 
244.9 	collected by the telephone assistance program may be disclosed to the Department of 
244.10 	Revenue to conduct an electronic data match with the property tax refund database to 
244.11 	determine eligibility under section 237.70, subdivision 4a;
244.12 	(15) the current address of a Minnesota family investment program participant may be 
244.13 	disclosed to law enforcement officers who provide the name of the participant and notify 
244.14 	the agency that:
244.15 	(i) the participant:
244.16 	(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after 
244.17 	conviction, for a crime or attempt to commit a crime that is a felony under the laws of the 
244.18 	jurisdiction from which the individual is fleeing; or
244.19 	(B) is violating a condition of probation or parole imposed under state or federal law;
244.20 	(ii) the location or apprehension of the felon is within the law enforcement officer's 
244.21 	official duties; and
244.22 	(iii) the request is made in writing and in the proper exercise of those duties;
244.23 	(16) the current address of a recipient of general assistance may be disclosed to probation 
244.24 	officers and corrections agents who are supervising the recipient and to law enforcement 
244.25 	officers who are investigating the recipient in connection with a felony level offense;
244.26 	(17) information obtained from a SNAP applicant or recipient households may be 
244.27 	disclosed to local, state, or federal law enforcement officials, upon their written request, for 
244.28 	the purpose of investigating an alleged violation of the Food and Nutrition Act, according 
244.29 	to Code of Federal Regulations, title 7, section 272.1(c);
244.30 	(18) the address, Social Security or individual taxpayer identification number, and, if 
244.31 	available, photograph of any member of a household receiving SNAP benefits shall be made 
245.1 	available, on request, to a local, state, or federal law enforcement officer if the officer 
245.2 	furnishes the agency with the name of the member and notifies the agency that:
245.3 	(i) the member:
245.4 	(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a 
245.5 	crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
245.6 	(B) is violating a condition of probation or parole imposed under state or federal law; 
245.7 	or
245.8 	(C) has information that is necessary for the officer to conduct an official duty related 
245.9 	to conduct described in subitem (A) or (B);
245.10 	(ii) locating or apprehending the member is within the officer's official duties; and
245.11 	(iii) the request is made in writing and in the proper exercise of the officer's official duty;
245.12 	(19) the current address of a recipient of Minnesota family investment program, general 
245.13 	assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing, 
245.14 	provide the name of the recipient and notify the agency that the recipient is a person required 
245.15 	to register under section 243.166, but is not residing at the address at which the recipient is 
245.16 	registered under section 243.166;
245.17 	(20) certain information regarding child support obligors who are in arrears may be 
245.18 	made public according to section 518A.74;
245.19 	(21) data on child support payments made by a child support obligor and data on the 
245.20 	distribution of those payments excluding identifying information on obligees may be 
245.21 	disclosed to all obligees to whom the obligor owes support, and data on the enforcement 
245.22 	actions undertaken by the public authority, the status of those actions, and data on the income 
245.23 	of the obligor or obligee may be disclosed to the other party;
245.24 	(22) data in the work reporting system may be disclosed under section 256.998, 
245.25 	subdivision 7;
245.26 	(23) to the Department of Education for the purpose of matching Department of Education 
245.27 	student data with public assistance data to determine students eligible for free and 
245.28 	reduced-price meals, meal supplements, and free milk according to United States Code, 
245.29 	title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state 
245.30 	funds that are distributed based on income of the student's family; and to verify receipt of 
245.31 	energy assistance for the telephone assistance plan;
246.1 	(24) the current address and telephone number of program recipients and emergency 
246.2 	contacts may be released to the commissioner of health or a community health board as 
246.3 	defined in section 145A.02, subdivision 5, when the commissioner or community health 
246.4 	board has reason to believe that a program recipient is a disease case, carrier, suspect case, 
246.5 	or at risk of illness, and the data are necessary to locate the person;
246.6 	(25) to other state agencies, statewide systems, and political subdivisions of this state, 
246.7 	including the attorney general, and agencies of other states, interstate information networks, 
246.8 	federal agencies, and other entities as required by federal regulation or law for the 
246.9 	administration of the child support enforcement program;
246.10 	(26) to personnel of public assistance programs as defined in section 256.741, for access 
246.11 	to the child support system database for the purpose of administration, including monitoring 
246.12 	and evaluation of those public assistance programs;
246.13 	(27) to monitor and evaluate the Minnesota family investment program by exchanging 
246.14 	data between the Departments of Human Services; Children, Youth, and Families; and 
246.15 	Education, on recipients and former recipients of SNAP benefits, cash assistance under 
246.16 	chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, medical 
246.17 	programs under chapter 256B or 256L, or a medical program formerly codified under chapter 
246.18 	256D;
246.19 	(28) to evaluate child support program performance and to identify and prevent fraud 
246.20 	in the child support program by exchanging data between the Department of Human 
246.21 	Services,; Department of Children, Youth, and Families; Department of Revenue under 
246.22 	section 270B.14, subdivision 1, paragraphs (a) and (b), without regard to the limitation of 
246.23 	use in paragraph (c),; Department of Health,; Department of Employment and Economic 
246.24 	Development,; and other state agencies as is reasonably necessary to perform these functions;
246.25 	(29) counties and the Department of Human Services Children, Youth, and Families
246.26 	operating child care assistance programs under chapter 119B may disseminate data on 
246.27 	program participants, applicants, and providers to the commissioner of education;
246.28 	(30) child support data on the child, the parents, and relatives of the child may be 
246.29 	disclosed to agencies administering programs under titles IV-B and IV-E of the Social 
246.30 	Security Act, as authorized by federal law;
246.31 	(31) to a health care provider governed by sections 144.291 to 144.298, to the extent 
246.32 	necessary to coordinate services;
247.1 	(32) to the chief administrative officer of a school to coordinate services for a student 
247.2 	and family; data that may be disclosed under this clause are limited to name, date of birth, 
247.3 	gender, and address;
247.4 	(33) to county correctional agencies to the extent necessary to coordinate services and 
247.5 	diversion programs; data that may be disclosed under this clause are limited to name, client 
247.6 	demographics, program, case status, and county worker information; or
247.7 	(34) between the Department of Human Services and the Metropolitan Council for the 
247.8 	following purposes:
247.9 	(i) to coordinate special transportation service provided under section 473.386 with 
247.10 	services for people with disabilities and elderly individuals funded by or through the 
247.11 	Department of Human Services; and
247.12 	(ii) to provide for reimbursement of special transportation service provided under section 
247.13 	473.386.
247.14 	The data that may be shared under this clause are limited to the individual's first, last, and 
247.15 	middle names; date of birth; residential address; and program eligibility status with expiration 
247.16 	date for the purposes of informing the other party of program eligibility.
247.17 	(b) Information on persons who have been treated for drug or alcohol abuse substance 
247.18 	use disorder may only be disclosed according to the requirements of Code of Federal 
247.19 	Regulations, title 42, sections 2.1 to 2.67.
247.20 	(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), 
247.21 	(17), or (18), or paragraph (b), are investigative data and are confidential or protected 
247.22 	nonpublic while the investigation is active. The data are private after the investigation 
247.23 	becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
247.24 	(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are 
247.25 	not subject to the access provisions of subdivision 10, paragraph (b).
247.26 	For the purposes of this subdivision, a request will be deemed to be made in writing if 
247.27 	made through a computer interface system.

247.28 	Sec. 3. Minnesota Statutes 2022, section 13.46, subdivision 3, is amended to read:
247.29 		Subd. 3.Investigative data. (a) Data on persons, including data on vendors of services, 
247.30 	licensees, and applicants that is collected, maintained, used, or disseminated by the welfare 
247.31 	system in an investigation, authorized by statute, and relating to the enforcement of rules 
247.32 	or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or 
248.1 	protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and 
248.2 	shall not be disclosed except:
248.3 	(1) pursuant to section 13.05;
248.4 	(2) pursuant to statute or valid court order;
248.5 	(3) to a party named in a civil or criminal proceeding, administrative or judicial, for 
248.6 	preparation of defense;
248.7 	(4) to an agent of the welfare system or an investigator acting on behalf of a county, 
248.8 	state, or federal government, including a law enforcement officer or attorney in the 
248.9 	investigation or prosecution of a criminal, civil, or administrative proceeding, unless the 
248.10 	commissioner of human services or commissioner of children, youth, and families determines 
248.11 	that disclosure may compromise a Department of Human Services or Department of Children, 
248.12 	Youth, and Families ongoing investigation; or
248.13 	(5) to provide notices required or permitted by statute.
248.14 	The data referred to in this subdivision shall be classified as public data upon submission 
248.15 	to an administrative law judge or court in an administrative or judicial proceeding. Inactive 
248.16 	welfare investigative data shall be treated as provided in section 13.39, subdivision 3.
248.17 	(b) Notwithstanding any other provision in law, the commissioner of human services 
248.18 	shall provide all active and inactive investigative data, including the name of the reporter 
248.19 	of alleged maltreatment under section 626.557 or chapter 260E, to the ombudsman for 
248.20 	mental health and developmental disabilities upon the request of the ombudsman.
248.21 	(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation 
248.22 	by the commissioner of human services of possible overpayments of public funds to a service 
248.23 	provider or recipient may be disclosed if the commissioner determines that it will not 
248.24 	compromise the investigation.

248.25 	Sec. 4. Minnesota Statutes 2023 Supplement, section 13.46, subdivision 4, is amended to 
248.26 	read:
248.27 		Subd. 4.Licensing data. (a) As used in this subdivision:
248.28 	(1) "licensing data" are all data collected, maintained, used, or disseminated by the 
248.29 	welfare system pertaining to persons licensed or registered or who apply for licensure or 
248.30 	registration or who formerly were licensed or registered under the authority of the 
248.31 	commissioner of human services;
249.1 	(2) "client" means a person who is receiving services from a licensee or from an applicant 
249.2 	for licensure; and
249.3 	(3) "personal and personal financial data" are Social Security numbers, identity of and 
249.4 	letters of reference, insurance information, reports from the Bureau of Criminal 
249.5 	Apprehension, health examination reports, and social/home studies.
249.6 	(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license 
249.7 	holders, and former licensees are public: name, address, telephone number of licensees, 
249.8 	date of receipt of a completed application, dates of licensure, licensed capacity, type of 
249.9 	client preferred, variances granted, record of training and education in child care and child 
249.10 	development, type of dwelling, name and relationship of other family members, previous 
249.11 	license history, class of license, the existence and status of complaints, and the number of 
249.12 	serious injuries to or deaths of individuals in the licensed program as reported to the 
249.13 	commissioner of human services,; the commissioner of children, youth, and families; the 
249.14 	local social services agency,; or any other county welfare agency. For purposes of this 
249.15 	clause, a serious injury is one that is treated by a physician.
249.16 	(ii) Except as provided in item (v), when a correction order, an order to forfeit a fine, 
249.17 	an order of license suspension, an order of temporary immediate suspension, an order of 
249.18 	license revocation, an order of license denial, or an order of conditional license has been 
249.19 	issued, or a complaint is resolved, the following data on current and former licensees and 
249.20 	applicants are public: the general nature of the complaint or allegations leading to the 
249.21 	temporary immediate suspension; the substance and investigative findings of the licensing 
249.22 	or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence 
249.23 	of settlement negotiations; the record of informal resolution of a licensing violation; orders 
249.24 	of hearing; findings of fact; conclusions of law; specifications of the final correction order, 
249.25 	fine, suspension, temporary immediate suspension, revocation, denial, or conditional license 
249.26 	contained in the record of licensing action; whether a fine has been paid; and the status of 
249.27 	any appeal of these actions.
249.28 	(iii) When a license denial under section 142A.15 or245A.05 or a sanction under section
249.29 	142B.18 or245A.07 is based on a determination that a license holder, applicant, or controlling 
249.30 	individual is responsible for maltreatment under section 626.557 or chapter 260E, the identity 
249.31 	of the applicant, license holder, or controlling individual as the individual responsible for 
249.32 	maltreatment is public data at the time of the issuance of the license denial or sanction.
249.33 	(iv) When a license denial under section 142A.15 or245A.05 or a sanction under section
249.34 	142B.18 or245A.07 is based on a determination that a license holder, applicant, or controlling 
250.1 	individual is disqualified under chapter 245C, the identity of the license holder, applicant, 
250.2 	or controlling individual as the disqualified individual is public data at the time of the 
250.3 	issuance of the licensing sanction or denial. If the applicant, license holder, or controlling 
250.4 	individual requests reconsideration of the disqualification and the disqualification is affirmed, 
250.5 	the reason for the disqualification and the reason to not set aside the disqualification are 
250.6 	private data.
250.7 	(v) A correction order or fine issued to a child care provider for a licensing violation is 
250.8 	private data on individuals under section 13.02, subdivision 12, or nonpublic data under 
250.9 	section 13.02, subdivision 9, if the correction order or fine is seven years old or older.
250.10 	(2) For applicants who withdraw their application prior to licensure or denial of a license, 
250.11 	the following data are public: the name of the applicant, the city and county in which the 
250.12 	applicant was seeking licensure, the dates of the commissioner's receipt of the initial 
250.13 	application and completed application, the type of license sought, and the date of withdrawal 
250.14 	of the application.
250.15 	(3) For applicants who are denied a license, the following data are public: the name and 
250.16 	address of the applicant, the city and county in which the applicant was seeking licensure, 
250.17 	the dates of the commissioner's receipt of the initial application and completed application, 
250.18 	the type of license sought, the date of denial of the application, the nature of the basis for 
250.19 	the denial, the existence of settlement negotiations, the record of informal resolution of a 
250.20 	denial, orders of hearings, findings of fact, conclusions of law, specifications of the final 
250.21 	order of denial, and the status of any appeal of the denial.
250.22 	(4) When maltreatment is substantiated under section 626.557 or chapter 260E and the 
250.23 	victim and the substantiated perpetrator are affiliated with a program licensed under chapter 
250.24 	142B or 245A,; the commissioner of human services,; commissioner of children, youth, 
250.25 	and families; local social services agency,; or county welfare agency may inform the license 
250.26 	holder where the maltreatment occurred of the identity of the substantiated perpetrator and 
250.27 	the victim.
250.28 	(5) Notwithstanding clause (1), for child foster care, only the name of the license holder 
250.29 	and the status of the license are public if the county attorney has requested that data otherwise 
250.30 	classified as public data under clause (1) be considered private data based on the best interests 
250.31 	of a child in placement in a licensed program.
250.32 	(c) The following are private data on individuals under section 13.02, subdivision 12, 
250.33 	or nonpublic data under section 13.02, subdivision 9: personal and personal financial data 
251.1 	on family day care program and family foster care program applicants and licensees and 
251.2 	their family members who provide services under the license.
251.3 	(d) The following are private data on individuals: the identity of persons who have made 
251.4 	reports concerning licensees or applicants that appear in inactive investigative data, and the 
251.5 	records of clients or employees of the licensee or applicant for licensure whose records are 
251.6 	received by the licensing agency for purposes of review or in anticipation of a contested 
251.7 	matter. The names of reporters of complaints or alleged violations of licensing standards 
251.8 	under chapters142B,245A, 245B, 245C, and 245D, and applicable rules and alleged 
251.9 	maltreatment under section 626.557 and chapter 260E, are confidential data and may be 
251.10 	disclosed only as provided in section 260E.21, subdivision 4; 260E.35; or 626.557, 
251.11 	subdivision 12b.
251.12 	(e) Data classified as private, confidential, nonpublic, or protected nonpublic under this 
251.13 	subdivision become public data if submitted to a court or administrative law judge as part 
251.14 	of a disciplinary proceeding in which there is a public hearing concerning a license which 
251.15 	has been suspended, immediately suspended, revoked, or denied.
251.16 	(f) Data generated in the course of licensing investigations that relate to an alleged 
251.17 	violation of law are investigative data under subdivision 3.
251.18 	(g) Data that are not public data collected, maintained, used, or disseminated under this 
251.19 	subdivision that relate to or are derived from a report as defined in section 260E.03, or 
251.20 	626.5572, subdivision 18, are subject to the destruction provisions of sections 260E.35, 
251.21 	subdivision 6, and 626.557, subdivision 12b.
251.22 	(h) Upon request, not public data collected, maintained, used, or disseminated under 
251.23 	this subdivision that relate to or are derived from a report of substantiated maltreatment as 
251.24 	defined in section 626.557 or chapter 260E may be exchanged with the Department of 
251.25 	Health for purposes of completing background studies pursuant to section 144.057 and with 
251.26 	the Department of Corrections for purposes of completing background studies pursuant to 
251.27 	section 241.021.
251.28 	(i) Data on individuals collected according to licensing activities under chapters142B,
251.29 	245A, and 245C, data on individuals collected by the commissioner of human services 
251.30 	according to investigations under section 626.557 and chapters142B,245A, 245B, 245C, 
251.31 	245D, and 260E may be shared with the Department of Human Rights, the Department of 
251.32 	Health, the Department of Corrections, the ombudsman for mental health and developmental 
251.33 	disabilities, and the individual's professional regulatory board when there is reason to believe 
251.34 	that laws or standards under the jurisdiction of those agencies may have been violated or 
252.1 	the information may otherwise be relevant to the board's regulatory jurisdiction. Background 
252.2 	study data on an individual who is the subject of a background study under chapter 245C 
252.3 	for a licensed service for which the commissioner of human services or children, youth, 
252.4 	and families is the license holder may be shared with the commissioner and the 
252.5 	commissioner's delegate by the licensing division. Unless otherwise specified in this chapter, 
252.6 	the identity of a reporter of alleged maltreatment or licensing violations may not be disclosed.
252.7 	(j) In addition to the notice of determinations required under sections 260E.24, 
252.8 	subdivisions 5 and 7, and 260E.30, subdivision 6, paragraphs (b), (c), (d), (e), and (f), if the 
252.9 	commissioner of children, youth, and families or the local social services agency has 
252.10 	determined that an individual is a substantiated perpetrator of maltreatment of a child based 
252.11 	on sexual abuse, as defined in section 260E.03, and the commissioner or local social services 
252.12 	agency knows that the individual is a person responsible for a child's care in another facility, 
252.13 	the commissioner or local social services agency shall notify the head of that facility of this 
252.14 	determination. The notification must include an explanation of the individual's available 
252.15 	appeal rights and the status of any appeal. If a notice is given under this paragraph, the 
252.16 	government entity making the notification shall provide a copy of the notice to the individual 
252.17 	who is the subject of the notice.
252.18 	(k) All not public data collected, maintained, used, or disseminated under this subdivision 
252.19 	and subdivision 3 may be exchanged between the Department of Human Services, Licensing 
252.20 	Division, and the Department of Corrections for purposes of regulating services for which 
252.21 	the Department of Human Services and the Department of Corrections have regulatory 
252.22 	authority.

252.23 	Sec. 5. Minnesota Statutes 2022, section 116L.665, subdivision 2, is amended to read:
252.24 		Subd. 2.Membership. (a) The governor's Workforce Development Board is composed 
252.25 	of members appointed by the governor. In selecting the representatives of the board, the 
252.26 	governor shall ensure that a majority of the members come from the private sector, pursuant 
252.27 	to United States Code, title 29, section 3111. For the public members, membership terms, 
252.28 	compensation of members, and removal of members are governed by section 15.059, 
252.29 	subdivisions 2, 3, and 4. To the extent practicable, the membership should be balanced as 
252.30 	to gender and ethnic diversity.
252.31 	(b) No person shall serve as a member of more than one category described in paragraph 
252.32 	(c).
252.33 	(c) Voting members shall consist of the following:
253.1 	(1) the governor or the governor's designee;
253.2 	(2) two members of the house of representatives, one appointed by the speaker of the 
253.3 	house and one appointed by the minority leader of the house of representatives;
253.4 	(3) two members of the senate, one appointed by the senate majority leader and one 
253.5 	appointed by the senate minority leader;
253.6 	(4) a majority of the members must be representatives of businesses in the state appointed 
253.7 	by the governor who:
253.8 	(i) are owners of businesses, chief executives, or operating officers of businesses, or 
253.9 	other business executives or employers with optimum policy-making or hiring authority 
253.10 	and who, in addition, may be members of a local board under United States Code, title 29, 
253.11 	section 3122(b)(2)(A)(i);
253.12 	(ii) represent businesses, including small businesses, or organizations representing 
253.13 	businesses that provide employment opportunities that, at a minimum, include high-quality, 
253.14 	work-relevant training and development in in-demand industry sectors or occupations in 
253.15 	the state; and
253.16 	(iii) are appointed from individuals nominated by state business organizations and 
253.17 	business trade associations;
253.18 	(5) six representatives of labor organizations appointed by the governor, including:
253.19 	(i) representatives of labor organizations who have been nominated by state labor 
253.20 	federations; and
253.21 	(ii) a member of a labor organization or a training director from a joint labor organization;
253.22 	(6) commissioners of the state agencies with primary responsibility for core programs 
253.23 	identified within the state plan including:
253.24 	(i) the Department of Employment and Economic Development;
253.25 	(ii) the Department of Education; and
253.26 	(iii) the Department of Human Services; and
253.27 	(iv) the Department of Children, Youth, and Families;
253.28 	(7) two chief elected officials, appointed by the governor, collectively representing cities 
253.29 	and counties;
253.30 	(8) two representatives who are people of color or people with disabilities, appointed 
253.31 	by the governor, of community-based organizations that have demonstrated experience and 
254.1 	expertise in addressing the employment, training, or education needs of individuals with 
254.2 	barriers to employment; and
254.3 	(9) four officials responsible for education programs in the state, appointed by the 
254.4 	governor, including chief executive officers of community colleges and other institutions 
254.5 	of higher education, including:
254.6 	(i) the chancellor of the Minnesota State Colleges and Universities;
254.7 	(ii) the president of the University of Minnesota;
254.8 	(iii) a president from a private postsecondary school; and
254.9 	(iv) a representative of career and technical education.
254.10 	(d) The nonvoting members of the board shall be appointed by the governor and consist 
254.11 	of one of each of the following:
254.12 	(1) a representative of Adult Basic Education;
254.13 	(2) a representative of public libraries;
254.14 	(3) a person with expertise in women's economic security;
254.15 	(4) the chair or executive director of the Minnesota Workforce Council Association;
254.16 	(5) the commissioner of labor and industry;
254.17 	(6) the commissioner of the Office of Higher Education;
254.18 	(7) the commissioner of corrections;
254.19 	(8) the commissioner of management and budget;
254.20 	(9) two representatives of community-based organizations who are people of color or 
254.21 	people with disabilities who have demonstrated experience and expertise in addressing the 
254.22 	employment, training, and education needs of individuals with barriers to employment;
254.23 	(10) a representative of secondary, postsecondary, or career-technical education;
254.24 	(11) a representative of school-based service learning;
254.25 	(12) a representative of the Council on Asian-Pacific Minnesotans;
254.26 	(13) a representative of the Minnesota Council on Latino Affairs;
254.27 	(14) a representative of the Council for Minnesotans of African Heritage;
254.28 	(15) a representative of the Minnesota Indian Affairs Council;
254.29 	(16) a representative of the Minnesota State Council on Disability; and
255.1 	(17) a representative of the Office on the Economic Status of Women.
255.2 	(e) Each member shall be appointed for a term of three years from the first day of January 
255.3 	or July immediately following their appointment. Elected officials shall forfeit their 
255.4 	appointment if they cease to serve in elected office.

255.5 	Sec. 6. Minnesota Statutes 2022, section 116L.86, subdivision 1, is amended to read:
255.6 		Subdivision 1.Interagency agreements. By October 1, 1987 January 1, 2025, the 
255.7 	commissioner and, the commissioner of human services, and the commissioner of children, 
255.8 	youth, and families shall enter into a written contract for the design, delivery, and 
255.9 	administration of employment and training services for applicants for or recipients of 
255.10 	Supplemental Nutrition Assistance Program (SNAP) benefits, the Minnesota family 
255.11 	investment program, and general assistance. The contract must address:
255.12 	(1) specific roles and responsibilities of each department;
255.13 	(2) assignment and supervision of staff for interagency activities including any necessary 
255.14 	interagency employee mobility agreements under the administrative procedures of the 
255.15 	Department of Management and Budget;
255.16 	(3) mechanisms for determining the conditions under which individuals participate in 
255.17 	services, their rights and responsibilities while participating, and the standards by which 
255.18 	the services must be administered;
255.19 	(4) procedures for providing technical assistance to local service units, Indian Tribes, 
255.20 	and employment and training service providers;
255.21 	(5) access to appropriate staff for ongoing development and interpretation of policy, 
255.22 	rules, and program standards;
255.23 	(6) procedures for reimbursing appropriate agencies for administrative expenses; and
255.24 	(7) procedures for accessing available federal funds.

255.25 	Sec. 7. Minnesota Statutes 2022, section 116L.86, subdivision 3, is amended to read:
255.26 		Subd. 3.Inventory, referral, and intake services. The commissioner of employment 
255.27 	and economic development, in cooperation with the commissioner commissioners of human 
255.28 	services and children, youth, and families, shall develop an inventory, referral, and intake 
255.29 	system. The system must provide for coordinated delivery of employment and training and 
255.30 	income maintenance support services, efficient client referral among programs and services, 
255.31 	reduction of duplicate data collection, coordinated program intake by local agencies, and 
256.1 	effective evaluation of employment and training services. The system must, at a minimum, 
256.2 	include the following:
256.3 	(1) a listing of all available public and private employment and training services, income 
256.4 	maintenance and support services, and vocationally directed education and training programs;
256.5 	(2) the capability to assess client needs and match those needs with employment 
256.6 	opportunities, education and training programs, and employment and training and income 
256.7 	maintenance and support services, and to refer the client to the appropriate employer, 
256.8 	educational institution, or service provider;
256.9 	(3) a coordinated intake procedure for employment and training services, and income 
256.10 	maintenance and support services;
256.11 	(4) access to a statewide database for client tracking and program evaluation; and
256.12 	(5) internal security measures to protect private data from unauthorized access.
256.13 	In developing the system, the commissioner shall consult with the public postsecondary 
256.14 	educational systems, local agencies, employment and training service providers, and client 
256.15 	and employer representatives. The system must be available in each local agency or service 
256.16 	provider delivering programs administered by the commissioner of employment and 
256.17 	economic development or the commissioner commissioners of human services and children, 
256.18 	youth, and families. Access by intake workers, state agency personnel, clients, and any other 
256.19 	system users to information contained in the system must conform with all applicable federal 
256.20 	and state data privacy requirements.

256.21 	Sec. 8. Minnesota Statutes 2023 Supplement, section 144.225, subdivision 2, is amended 
256.22 	to read:
256.23 		Subd. 2.Data about births. (a) Except as otherwise provided in this subdivision, data 
256.24 	pertaining to the birth of a child to a woman who was not married to the child's father when 
256.25 	the child was conceived nor when the child was born, including the original record of birth 
256.26 	and the certified vital record, are confidential data. At the time of the birth of a child to a 
256.27 	woman who was not married to the child's father when the child was conceived nor when 
256.28 	the child was born, the mother may designate demographic data pertaining to the birth as 
256.29 	public. Notwithstanding the designation of the data as confidential, it may be disclosed:
256.30 	(1) to a parent or guardian of the child;
256.31 	(2) to the child when the child is 16 years of age or older, except as provided in clause 
256.32 	(3);
257.1 	(3) to the child if the child is a homeless youth;
257.2 	(4) under paragraph (b), (e), or (f); or
257.3 	(5) pursuant to a court order. For purposes of this section, a subpoena does not constitute 
257.4 	a court order.
257.5 	(b) Data pertaining to the birth of a child that are not accessible to the public become 
257.6 	public data if 100 years have elapsed since the birth of the child who is the subject of the 
257.7 	data, or as provided under section 13.10, whichever occurs first.
257.8 	(c) If a child is adopted, data pertaining to the child's birth are governed by the provisions 
257.9 	relating to adoption and birth records, including sections 13.10, subdivision 5; 144.218, 
257.10 	subdivision 1; and 144.2252.
257.11 	(d) The name and address of a mother under paragraph (a) and the child's date of birth 
257.12 	may be disclosed to the county social services, Tribal health department, or public health 
257.13 	member of a family services collaborative for purposes of providing services under section 
257.14 	124D.23.
257.15 	(e) The commissioner of human services shall have access to birth records for:
257.16 	(1) the purposes of administering medical assistance and the MinnesotaCare program;
257.17 	and
257.18 	(2) child support enforcement purposes; and
257.19 	(3) other public health purposes as determined by the commissioner of health.
257.20 	(f) Tribal child support programs shall have access to birth records for child support 
257.21 	enforcement purposes.
257.22 	(g) The commissioner of children, youth, and families shall have access to birth records 
257.23 	for child support enforcement purposes and other public health purposes as determined by 
257.24 	the commissioner of health.

257.25 	Sec. 9. Minnesota Statutes 2022, section 144.225, subdivision 2b, is amended to read:
257.26 		Subd. 2b.Commissioner of health; duties. Notwithstanding the designation of certain 
257.27 	of this data as confidential under subdivision 2 or private under subdivision 2a, the 
257.28 	commissioner shall give the commissioner commissioners of human services and children, 
257.29 	youth, and families access to birth record data and data contained in recognitions of parentage 
257.30 	prepared according to section 257.75 necessary to enable the commissioner commissioners
257.31 	of human services and children, youth, and families to identify a child who is subject to 
258.1 	threatened injury, as defined in section 260E.03, subdivision 23, by a person responsible 
258.2 	for the child's care, as defined in section 260E.03, subdivision 17. The commissioner
258.3 	commissioners shall be given access to all data included on official birth records.

258.4 	Sec. 10. Minnesota Statutes 2023 Supplement, section 245C.02, subdivision 22, is amended 
258.5 	to read:
258.6 		Subd. 22.Volunteer. "Volunteer" means an individual who:
258.7 	(1) provides or seeks to provide services for or through an entity without direct 
258.8 	compensation for services provided, or resides in the home where services are being provided;
258.9 	(2) is required to be affiliated in NETStudy 2.0 with the entity,; and
258.10 	(3) is subject to oversight by the entity, including but not limited to continuous, direct 
258.11 	supervision and immediate removal from providing direct contact services when required.
258.12 	This subdivision does not apply to child care background study subjects under subdivision 
258.13 	6a.

258.14 	Sec. 11. Minnesota Statutes 2023 Supplement, section 245C.03, subdivision 1, is amended 
258.15 	to read:
258.16 		Subdivision 1.Licensed Programs licensed by the commissioner. (a) The commissioner 
258.17 	shall conduct a background study on:
258.18 	(1) the person or persons applying for a license;
258.19 	(2) an individual age 13 and over living in the household where the licensed program 
258.20 	will be provided who is not receiving licensed services from the program;
258.21 	(3) current or prospective employees of the applicant or license holder who will have 
258.22 	direct contact with persons served by the facility, agency, or program;
258.23 	(4) volunteers or student volunteers who will have direct contact with persons served 
258.24 	by the program to provide program services if the contact is not under the continuous, direct 
258.25 	supervision by an individual listed in clause (1) or (3);
258.26 	(5) an individual age ten to 12 living in the household where the licensed services will 
258.27 	be provided when the commissioner has reasonable cause as defined in section 245C.02, 
258.28 	subdivision 15;
258.29 	(6) an individual who, without providing direct contact services at a licensed program, 
258.30 	may have unsupervised access to children or vulnerable adults receiving services from a 
259.1 	program, when the commissioner has reasonable cause as defined in section 245C.02, 
259.2 	subdivision 15; and
259.3 	(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
259.4 	(8) notwithstanding the other requirements in this subdivision, child care background 
259.5 	study subjects as defined in section 245C.02, subdivision 6a; and
259.6 	(9) (8) notwithstanding clause (3), for children's residential facilities and foster residence 
259.7 	settings, any adult working in the facility, whether or not the individual will have direct 
259.8 	contact with persons served by the facility.
259.9 	(b) For child foster care when the license holder resides in the home where foster care 
259.10 	services are provided, a short-term substitute caregiver providing direct contact services for 
259.11 	a child for less than 72 hours of continuous care is not required to receive a background 
259.12 	study under this chapter.
259.13 	(c) This subdivision applies to the following programs that must be licensed under 
259.14 	chapter 245A:
259.15 	(1) adult foster care;
259.16 	(2) child foster care;
259.17 	(3) (2) children's residential facilities;
259.18 	(4) family child care;
259.19 	(5) licensed child care centers;
259.20 	(6) (3) licensed home and community-based services under chapter 245D;
259.21 	(7) (4) residential mental health programs for adults;
259.22 	(8) (5) substance use disorder treatment programs under chapter 245G;
259.23 	(9) (6) withdrawal management programs under chapter 245F;
259.24 	(10) (7) adult day care centers;
259.25 	(11) (8) family adult day services;
259.26 	(12) (9) detoxification programs;
259.27 	(13) (10) community residential settings;
259.28 	(14) (11) intensive residential treatment services and residential crisis stabilization under 
259.29 	chapter 245I; and
260.1 	(15) (12) treatment programs for persons with sexual psychopathic personality or sexually 
260.2 	dangerous persons, licensed under chapter 245A and according to Minnesota Rules, parts 
260.3 	9515.3000 to 9515.3110.

260.4 	Sec. 12. Minnesota Statutes 2022, section 245C.03, is amended by adding a subdivision 
260.5 	to read:
260.6 		Subd. 5c.Programs licensed or regulated by the Department of Children, Youth, 
260.7 	and Families. (a) The commissioner shall conduct a background study on:
260.8 	(1) the person or persons applying for a license;
260.9 	(2) an individual age 13 and over, living in the household where the licensed program 
260.10 	will be provided, who is not receiving licensed services from the program;
260.11 	(3) current or prospective employees of the applicant or license holder who will have 
260.12 	direct contact with persons served by the facility, agency, or program;
260.13 	(4) volunteers or student volunteers who will have direct contact with persons served 
260.14 	by the program to provide program services if the contact is not under the continuous, direct 
260.15 	supervision by an individual listed in clause (1) or (3);
260.16 	(5) an individual age ten to 12 living in the household where the licensed services will 
260.17 	be provided when the commissioner has reasonable cause as defined in section 245C.02, 
260.18 	subdivision 15;
260.19 	(6) an individual who, without providing direct contact services at a licensed program, 
260.20 	may have unsupervised access to children receiving services from a program, when the 
260.21 	commissioner has reasonable cause as defined in section 245C.02, subdivision 15;
260.22 	(7) all controlling individuals as defined in section 142B.01, subdivision 11; and
260.23 	(8) notwithstanding the other requirements in this subdivision, child care background 
260.24 	study subjects as defined in section 245C.02, subdivision 6a.
260.25 	(b) For child foster care when the license holder resides in the home where foster care 
260.26 	services are provided, a short-term substitute caregiver providing direct contact services for 
260.27 	a child for less than 72 hours of continuous care is not required to receive a background 
260.28 	study under this chapter.
260.29 	(c) This subdivision applies to the following programs:
260.30 	(1) a child foster care program licensed or seeking a license under chapter 142B;
260.31 	(2) a child care center licensed or seeking a license under chapter 142B;
261.1 	(3) a license-exempt child care center certified under chapter 142C;
261.2 	(4) a legal nonlicensed child care provider authorized under chapter 142E; or
261.3 	(5) a Head Start program.

261.4 	Sec. 13. Minnesota Statutes 2022, section 245C.08, subdivision 3, is amended to read:
261.5 		Subd. 3.Arrest and investigative information. (a) For any background study completed 
261.6 	under this section, if the commissioner has reasonable cause to believe the information is 
261.7 	pertinent to the disqualification of an individual, the commissioner also may review arrest 
261.8 	and investigative information from:
261.9 	(1) the Bureau of Criminal Apprehension;
261.10 	(2) the commissioners of children, youth, and families; health; and human services;
261.11 	(3) a county attorney;
261.12 	(4) a county sheriff;
261.13 	(5) a county agency;
261.14 	(6) a local chief of police;
261.15 	(7) other states;
261.16 	(8) the courts;
261.17 	(9) the Federal Bureau of Investigation;
261.18 	(10) the National Criminal Records Repository; and
261.19 	(11) criminal records from other states.
261.20 	(b) Except when specifically required by law, the commissioner is not required to conduct 
261.21 	more than one review of a subject's records from the Federal Bureau of Investigation if a 
261.22 	review of the subject's criminal history with the Federal Bureau of Investigation has already 
261.23 	been completed by the commissioner and there has been no break in the subject's affiliation 
261.24 	with the entity that initiated the background study.
261.25 	(c) If the commissioner conducts a national criminal history record check when required 
261.26 	by law and uses the information from the national criminal history record check to make a 
261.27 	disqualification determination, the data obtained is private data and cannot be shared with 
261.28 	private agencies or prospective employers of the background study subject.
261.29 	(d) If the commissioner conducts a national criminal history record check when required 
261.30 	by law and uses the information from the national criminal history record check to make a 
262.1 	disqualification determination, the license holder or entity that submitted the study is not 
262.2 	required to obtain a copy of the background study subject's disqualification letter under 
262.3 	section 245C.17, subdivision 3.

262.4 	Sec. 14. Minnesota Statutes 2022, section 245C.22, is amended by adding a subdivision 
262.5 	to read:
262.6 		Subd. 8.Sharing of certain data for reconsiderations and appeals. (a) The following 
262.7 	commissioners shall be responsible for conducting reconsiderations and appeals of 
262.8 	background studies for programs under their jurisdictions:
262.9 	(1) the commissioner of human services for programs under section 245C.03, subdivision 
262.10 	1;
262.11 	(2) the commissioner of health for programs under section 245C.03, subdivision 5a;
262.12 	(3) the commissioner of corrections for programs under section 245C.03, subdivision 
262.13 	5b; and
262.14 	(4) the commissioner of the children, youth, and families for programs under section 
262.15 	245C.03, subdivision 5c.
262.16 	(b) The commissioner of human services shall share all relevant background study data 
262.17 	to allow the commissioners specified in paragraph (a) to complete reconsiderations and 
262.18 	appeals for programs licensed or regulated by their agencies.

262.19 	Sec. 15. Minnesota Statutes 2022, section 245C.25, is amended to read:
262.20 	245C.25 CONSOLIDATED RECONSIDERATION OF MALTREATMENT 
262.21 	DETERMINATION AND DISQUALIFICATION.
262.22 	(a) If an individual is disqualified on the basis of a determination of maltreatment under 
262.23 	section 626.557 or chapter 260E, which was serious or recurring, and the individual requests 
262.24 	reconsideration of the maltreatment determination under section 260E.33 or 626.557, 
262.25 	subdivision 9d, and also requests reconsideration of the disqualification under section 
262.26 	245C.21, the commissioner shall consolidate the reconsideration of the maltreatment 
262.27 	determination and the disqualification into a single reconsideration.
262.28 	(b) In cases where an individual seeks reconsideration of license denial or sanction by 
262.29 	the commissioners of children, youth, and families and human services based on the same 
262.30 	disqualification under chapter 245C or maltreatment determination under chapter 260E or 
262.31 	626, the individual shall send their reconsideration request to the commissioner of human 
263.1 	services. The commissioner of human services shall consolidate the requests pursuant to 
263.2 	this subdivision and review the decision of the commissioner of children, youth, and families 
263.3 	pursuant to chapter 142B.

263.4 	Sec. 16. Minnesota Statutes 2022, section 256.741, subdivision 1, is amended to read:
263.5 		Subdivision 1.Definitions. (a) The term "direct support" as used in this chapter and 
263.6 	chapters 142A, 257, 518, 518A, and 518C refers to an assigned support payment from an 
263.7 	obligor which is paid directly to a recipient of public assistance.
263.8 	(b) The term "public assistance" as used in this chapter and chapters 142A, 257, 518, 
263.9 	518A, and 518C, includes any form of assistance provided under the AFDC program formerly 
263.10 	codified in sections 256.72 to 256.87, MFIP and MFIP-R formerly codified under chapter 
263.11 	256, MFIP under chapter 256J, work first program formerly codified under chapter 256K; 
263.12 	child care assistance provided through the child care fund under chapter 119B; any form of 
263.13 	medical assistance under chapter 256B; and foster care as provided under title IV-E of the 
263.14 	Social Security Act. MinnesotaCare and health plans subsidized by federal premium tax 
263.15 	credits or federal cost-sharing reductions are not considered public assistance for purposes 
263.16 	of a child support referral.
263.17 	(c) The term "child support agency" as used in this section refers to the public authority 
263.18 	responsible for child support enforcement.
263.19 	(d) The term "public assistance agency" as used in this section refers to a public authority 
263.20 	providing public assistance to an individual.
263.21 	(e) The terms "child support" and "arrears" as used in this section have the meanings 
263.22 	provided in section 518A.26.
263.23 	(f) The term "maintenance" as used in this section has the meaning provided in section 
263.24 	518.003.

263.25 	Sec. 17. Minnesota Statutes 2022, section 256.741, subdivision 2, is amended to read:
263.26 		Subd. 2.Assignment of support and maintenance rights. (a) An individual receiving 
263.27 	public assistance in the form of assistance under any of the following programs: the AFDC 
263.28 	program formerly codified in sections 256.72 to 256.87, MFIP under chapter 256J, MFIP-R 
263.29 	and MFIP formerly codified under chapter 256, or work first program formerly codified 
263.30 	under chapter 256K is considered to have assigned to the state at the time of application all 
263.31 	rights to child support and maintenance from any other person the applicant or recipient 
263.32 	may have in the individual's own behalf or in the behalf of any other family member for 
264.1 	whom application for public assistance is made. An assistance unit is ineligible for the 
264.2 	Minnesota family investment program unless the caregiver assigns all rights to child support 
264.3 	and maintenance benefits according to this section.
264.4 	(1) The assignment is effective as to any current child support and current maintenance.
264.5 	(2) Any child support or maintenance arrears that accrue while an individual is receiving 
264.6 	public assistance in the form of assistance under any of the programs listed in this paragraph 
264.7 	are permanently assigned to the state.
264.8 	(3) The assignment of current child support and current maintenance ends on the date 
264.9 	the individual ceases to receive or is no longer eligible to receive public assistance under 
264.10 	any of the programs listed in this paragraph.
264.11 	(b) An individual receiving public assistance in the form of medical assistance is 
264.12 	considered to have assigned to the state at the time of application all rights to medical support 
264.13 	from any other person the individual may have in the individual's own behalf or in the behalf 
264.14 	of any other family member for whom medical assistance is provided.
264.15 	(1) An assignment made after September 30, 1997, is effective as to any medical support 
264.16 	accruing after the date of medical assistance eligibility.
264.17 	(2) Any medical support arrears that accrue while an individual is receiving public 
264.18 	assistance in the form of medical assistance are permanently assigned to the state.
264.19 	(3) The assignment of current medical support ends on the date the individual ceases to 
264.20 	receive or is no longer eligible to receive public assistance in the form of medical assistance.
264.21 	(c) An individual receiving public assistance in the form of child care assistance under 
264.22 	the child care fund pursuant to chapter 119B is considered to have assigned to the state at 
264.23 	the time of application all rights to child care support from any other person the individual 
264.24 	may have in the individual's own behalf or in the behalf of any other family member for 
264.25 	whom child care assistance is provided.
264.26 	(1) The assignment is effective as to any current child care support.
264.27 	(2) Any child care support arrears that accrue while an individual is receiving public 
264.28 	assistance in the form of child care assistance under the child care fund in chapter 119B are 
264.29 	permanently assigned to the state.
264.30 	(3) The assignment of current child care support ends on the date the individual ceases 
264.31 	to receive or is no longer eligible to receive public assistance in the form of child care 
264.32 	assistance under the child care fund under chapter 119B.

265.1 	Sec. 18. Minnesota Statutes 2022, section 256.741, subdivision 12a, is amended to read:
265.2 		Subd. 12a.Appeals of good cause determinations. According to section 256.045
265.3 	142A.20, an individual may appeal the determination or redetermination of good cause 
265.4 	under this section. To initiate an appeal of a good cause determination or redetermination, 
265.5 	the individual must make a request for a state agency hearing in writing within 30 calendar 
265.6 	days after the date that a notice of denial for good cause is mailed or otherwise transmitted 
265.7 	to the individual. Until a human services children, youth, and families judge issues a decision 
265.8 	under section 256.0451, subdivision 22 142A.21, subdivision 22, the child support agency 
265.9 	shall cease all child support enforcement efforts and shall not report the individual's 
265.10 	noncooperation to public assistance agencies.

265.11 	Sec. 19. Minnesota Statutes 2022, section 256.87, subdivision 1, is amended to read:
265.12 		Subdivision 1.Actions against parents for assistance furnished. A parent of a child 
265.13 	is liable for the amount of public assistance, as defined in section 256.741, furnished to and 
265.14 	for the benefit of the child, including any assistance furnished for the benefit of the caretaker 
265.15 	of the child, which the parent has had the ability to pay. Ability to pay must be determined 
265.16 	according to this chapter 518A. The parent's liability is limited to the two years immediately 
265.17 	preceding the commencement of the action, except that where child support has been 
265.18 	previously ordered, the state or county agency providing the assistance, as assignee of the 
265.19 	obligee, shall be entitled to judgments for child support payments accruing within ten years 
265.20 	preceding the date of the commencement of the action up to the full amount of assistance 
265.21 	furnished. The action may be ordered by the state agency or county agency and shall be 
265.22 	brought in the name of the county or in the name of the state agency against the parent for 
265.23 	the recovery of the amount of assistance granted, together with the costs and disbursements 
265.24 	of the action.

265.25 	Sec. 20. Minnesota Statutes 2022, section 256.87, subdivision 1a, is amended to read:
265.26 		Subd. 1a.Continuing support contributions. In addition to granting the county or state 
265.27 	agency a money judgment, the court may, upon a motion or order to show cause, order 
265.28 	continuing support contributions by a parent found able to reimburse the county or state 
265.29 	agency. The order shall be effective for the period of time during which the recipient receives 
265.30 	public assistance from any county or state agency and thereafter. The order shall require 
265.31 	support according to this chapter 518A and include the names and Social Security numbers 
265.32 	of the father, mother, and the child or children. An order for continuing contributions is 
265.33 	reinstated without further hearing upon notice to the parent by any county or state agency 
266.1 	that public assistance, as defined in section 256.741, is again being provided for the child 
266.2 	of the parent. The notice shall be in writing and shall indicate that the parent may request 
266.3 	a hearing for modification of the amount of support or maintenance.

266.4 	Sec. 21. Minnesota Statutes 2022, section 256.87, subdivision 5, is amended to read:
266.5 		Subd. 5.Child not receiving assistance. A person or entity having physical custody of 
266.6 	a dependent child not receiving public assistance as defined in section 256.741 has a cause 
266.7 	of action for child support against the child's noncustodial parents. Upon a motion served 
266.8 	on the noncustodial parent, the court shall order child support payments, including medical 
266.9 	support and child care support, from the noncustodial parent under this chapter 518A. A 
266.10 	noncustodial parent's liability may include up to the two years immediately preceding the 
266.11 	commencement of the action. This subdivision applies only if the person or entity has 
266.12 	physical custody with the consent of a custodial parent or approval of the court.

266.13 	Sec. 22. Minnesota Statutes 2022, section 256P.04, subdivision 13, is amended to read:
266.14 		Subd. 13.Notice to undocumented persons; release of private data. Agencies, in 
266.15 	consultation with the commissioner commissioners of human services and children, youth, 
266.16 	and families, shall provide notification to undocumented persons regarding the release of 
266.17 	personal data to the United States Citizenship and Immigration Services and develop 
266.18 	protocols regarding the release or sharing of data about undocumented persons with the 
266.19 	United States Citizenship and Immigration Services as required under sections 404, 411A, 
266.20 	and 434 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

266.21 	Sec. 23. Minnesota Statutes 2022, section 260.92, subdivision 1, is amended to read:
266.22 		Subdivision 1.Home study. The state must have procedures for the orderly and timely 
266.23 	interstate placement of children that are implemented in accordance with an interstate 
266.24 	compact and that,. Within 60 days after the state receives from another state a request to 
266.25 	conduct a study of a home environment for purposes of assessing the safety and suitability 
266.26 	of placing a child in the home, the state shall, directly or by contract, conduct and complete 
266.27 	a home study and return to the other state a report on the results of the study, which shall 
266.28 	address the extent to which placement in the home would meet the needs of the child; except 
266.29 	in the case of a home study begun before October 1, 2008,. If the state fails to comply with 
266.30 	conducting and completing the home study within the 60-day period and this is as a result 
266.31 	of circumstances beyond the control of the state, the state has 75 days to comply if the state 
266.32 	documents the circumstances involved and certifies that completing the home study is in 
266.33 	the best interests of the child.
267.1 	This subdivision does not require the completion within the applicable period of the 
267.2 	parts of the home study involving the education and training of the prospective foster or 
267.3 	adoptive parents.

267.4 	Sec. 24. Minnesota Statutes 2022, section 260C.178, subdivision 1, is amended to read:
267.5 		Subdivision 1.Hearing and release requirements. (a) If a child was taken into custody 
267.6 	under section 260C.175, subdivision 1, clause (1) or (2), item (ii), the court shall hold a 
267.7 	hearing within 72 hours of the time that the child was taken into custody, excluding 
267.8 	Saturdays, Sundays, and holidays, to determine whether the child should continue to be in 
267.9 	custody.
267.10 	(b) Unless there is reason to believe that the child would endanger self or others or not 
267.11 	return for a court hearing, or that the child's health or welfare would be immediately 
267.12 	endangered, the child shall be released to the custody of a parent, guardian, custodian, or 
267.13 	other suitable person, subject to reasonable conditions of release including, but not limited 
267.14 	to, a requirement that the child undergo a chemical use assessment as provided in section 
267.15 	260C.157, subdivision 1.
267.16 	(c) If the court determines that there is reason to believe that the child would endanger 
267.17 	self or others or not return for a court hearing, or that the child's health or welfare would be 
267.18 	immediately endangered if returned to the care of the parent or guardian who has custody 
267.19 	and from whom the child was removed, the court shall order the child:
267.20 	(1) into the care of the child's noncustodial parent and order the noncustodial parent to 
267.21 	comply with any conditions that the court determines appropriate to ensure the safety and 
267.22 	care of the child, including requiring the noncustodial parent to cooperate with paternity 
267.23 	establishment proceedings if the noncustodial parent has not been adjudicated the child's 
267.24 	father; or
267.25 	(2) into foster care as defined in section 260C.007, subdivision 18, under the legal 
267.26 	responsibility of the responsible social services agency or responsible probation or corrections 
267.27 	agency for the purposes of protective care as that term is used in the juvenile court rules. 
267.28 	The court shall not give the responsible social services legal custody and order a trial home 
267.29 	visit at any time prior to adjudication and disposition under section 260C.201, subdivision 
267.30 	1, paragraph (a), clause (3), but may order the child returned to the care of the parent or 
267.31 	guardian who has custody and from whom the child was removed and order the parent or 
267.32 	guardian to comply with any conditions the court determines to be appropriate to meet the 
267.33 	safety, health, and welfare of the child.
268.1 	(d) In determining whether the child's health or welfare would be immediately 
268.2 	endangered, the court shall consider whether the child would reside with a perpetrator of 
268.3 	domestic child abuse.
268.4 	(e) The court, before determining whether a child should be placed in or continue in 
268.5 	foster care under the protective care of the responsible agency, shall also make a 
268.6 	determination, consistent with section 260.012 as to whether reasonable efforts were made 
268.7 	to prevent placement or whether reasonable efforts to prevent placement are not required. 
268.8 	In the case of an Indian child, the court shall determine whether active efforts, according 
268.9 	to section 260.762 and the Indian Child Welfare Act of 1978, United States Code, title 25, 
268.10 	section 1912(d), were made to prevent placement. The court shall enter a finding that the 
268.11 	responsible social services agency has made reasonable efforts to prevent placement when 
268.12 	the agency establishes either:
268.13 	(1) that the agency has actually provided services or made efforts in an attempt to prevent 
268.14 	the child's removal but that such services or efforts have not proven sufficient to permit the 
268.15 	child to safely remain in the home; or
268.16 	(2) that there are no services or other efforts that could be made at the time of the hearing 
268.17 	that could safely permit the child to remain home or to return home. The court shall not 
268.18 	make a reasonable efforts determination under this clause unless the court is satisfied that 
268.19 	the agency has sufficiently demonstrated to the court that there were no services or other 
268.20 	efforts that the agency was able to provide at the time of the hearing enabling the child to 
268.21 	safely remain home or to safely return home. When reasonable efforts to prevent placement 
268.22 	are required and there are services or other efforts that could be ordered that would permit 
268.23 	the child to safely return home, the court shall order the child returned to the care of the 
268.24 	parent or guardian and the services or efforts put in place to ensure the child's safety. When 
268.25 	the court makes a prima facie determination that one of the circumstances under paragraph 
268.26 	(g) exists, the court shall determine that reasonable efforts to prevent placement and to 
268.27 	return the child to the care of the parent or guardian are not required.
268.28 	(f) If the court finds the social services agency's preventive or reunification efforts have 
268.29 	not been reasonable but further preventive or reunification efforts could not permit the child 
268.30 	to safely remain at home, the court may nevertheless authorize or continue the removal of 
268.31 	the child.
268.32 	(g) The court may not order or continue the foster care placement of the child unless the 
268.33 	court makes explicit, individualized findings that continued custody of the child by the 
269.1 	parent or guardian would be contrary to the welfare of the child and that placement is in the 
269.2 	best interest of the child.
269.3 	(h) At the emergency removal hearing, or at any time during the course of the proceeding, 
269.4 	and upon notice and request of the county attorney, the court shall determine whether a 
269.5 	petition has been filed stating a prima facie case that:
269.6 	(1) the parent has subjected a child to egregious harm as defined in section 260C.007, 
269.7 	subdivision 14;
269.8 	(2) the parental rights of the parent to another child have been involuntarily terminated;
269.9 	(3) the child is an abandoned infant under section 260C.301, subdivision 2, paragraph 
269.10 	(a), clause (2);
269.11 	(4) the parents' custodial rights to another child have been involuntarily transferred to a 
269.12 	relative under Minnesota Statutes 2010, section 260C.201, subdivision 11, paragraph (e), 
269.13 	clause (1); section 260C.515, subdivision 4; a juvenile protection proceeding or a similar 
269.14 	law process of another jurisdiction;
269.15 	(5) the parent has committed sexual abuse as defined in section 260E.03, against the 
269.16 	child or another child of the parent;
269.17 	(6) the parent has committed an offense that requires registration as a predatory offender 
269.18 	under section 243.166, subdivision 1b, paragraph (a) or (b); or
269.19 	(7) the provision of services or further services for the purpose of reunification is futile 
269.20 	and therefore unreasonable.
269.21 	(i) When a petition to terminate parental rights is required under section 260C.301, 
269.22 	subdivision 4, or 260C.503, subdivision 2, but the county attorney has determined not to 
269.23 	proceed with a termination of parental rights petition, and has instead filed a petition to 
269.24 	transfer permanent legal and physical custody to a relative under section 260C.507, the 
269.25 	court shall schedule a permanency hearing within 30 days of the filing of the petition.
269.26 	(j) If the county attorney has filed a petition under section 260C.307, the court shall 
269.27 	schedule a trial under section 260C.163 within 90 days of the filing of the petition except 
269.28 	when the county attorney determines that the criminal case shall proceed to trial first under 
269.29 	section 260C.503, subdivision 2, paragraph (c).
269.30 	(k) If the court determines the child should be ordered into foster care and the child's 
269.31 	parent refuses to give information to the responsible social services agency regarding the 
269.32 	child's father or relatives of the child, the court may order the parent to disclose the names, 
270.1 	addresses, telephone numbers, and other identifying information to the responsible social 
270.2 	services agency for the purpose of complying with sections 260C.150, 260C.151, 260C.212, 
270.3 	260C.215, 260C.219, and 260C.221.
270.4 	(l) If a child ordered into foster care has siblings, whether full, half, or step, who are 
270.5 	also ordered into foster care, the court shall inquire of the responsible social services agency 
270.6 	of the efforts to place the children together as required by section 260C.212, subdivision 2, 
270.7 	paragraph (d), if placement together is in each child's best interests, unless a child is in 
270.8 	placement for treatment or a child is placed with a previously noncustodial parent who is 
270.9 	not a parent to all siblings. If the children are not placed together at the time of the hearing, 
270.10 	the court shall inquire at each subsequent hearing of the agency's reasonable efforts to place 
270.11 	the siblings together, as required under section 260.012. If any sibling is not placed with 
270.12 	another sibling or siblings, the agency must develop a plan to facilitate visitation or ongoing 
270.13 	contact among the siblings as required under section 260C.212, subdivision 1, unless it is 
270.14 	contrary to the safety or well-being of any of the siblings to do so.
270.15 	(m) When the court has ordered the child into the care of a noncustodial parent or in 
270.16 	foster care, the court may order a chemical dependency evaluation, mental health evaluation, 
270.17 	medical examination, and parenting assessment for the parent as necessary to support the 
270.18 	development of a plan for reunification required under subdivision 7 and section 260C.212, 
270.19 	subdivision 1, or the child protective services plan under section 260E.26, and Minnesota 
270.20 	Rules, part 9560.0228.

270.21 	Sec. 25. Minnesota Statutes 2022, section 260C.201, subdivision 1, is amended to read:
270.22 		Subdivision 1.Dispositions. (a) If the court finds that the child is in need of protection 
270.23 	or services or neglected and in foster care, the court shall enter an order making any of the 
270.24 	following dispositions of the case:
270.25 	(1) place the child under the protective supervision of the responsible social services 
270.26 	agency or child-placing agency in the home of a parent of the child under conditions 
270.27 	prescribed by the court directed to the correction of the child's need for protection or services:
270.28 	(i) the court may order the child into the home of a parent who does not otherwise have 
270.29 	legal custody of the child, however, an order under this section does not confer legal custody 
270.30 	on that parent;
270.31 	(ii) if the court orders the child into the home of a father who is not adjudicated, the 
270.32 	father must cooperate with paternity establishment proceedings regarding the child in the 
271.1 	appropriate jurisdiction as one of the conditions prescribed by the court for the child to 
271.2 	continue in the father's home; and
271.3 	(iii) the court may order the child into the home of a noncustodial parent with conditions 
271.4 	and may also order both the noncustodial and the custodial parent to comply with the 
271.5 	requirements of a case plan under subdivision 2; or
271.6 	(2) transfer legal custody to one of the following:
271.7 	(i) a child-placing agency; or
271.8 	(ii) the responsible social services agency. In making a foster care placement of a child 
271.9 	whose custody has been transferred under this subdivision, the agency shall make an 
271.10 	individualized determination of how the placement is in the child's best interests using the 
271.11 	placement consideration order for relatives and the best interest factors in section 260C.212, 
271.12 	subdivision 2, and may include a child colocated with a parent in a licensed residential 
271.13 	family-based substance use disorder treatment program under section 260C.190; or
271.14 	(3) order a trial home visit without modifying the transfer of legal custody to the 
271.15 	responsible social services agency under clause (2). Trial home visit means the child is 
271.16 	returned to the care of the parent or guardian from whom the child was removed for a period 
271.17 	not to exceed six months. During the period of the trial home visit, the responsible social 
271.18 	services agency:
271.19 	(i) shall continue to have legal custody of the child, which means that the agency may 
271.20 	see the child in the parent's home, at school, in a child care facility, or other setting as the 
271.21 	agency deems necessary and appropriate;
271.22 	(ii) shall continue to have the ability to access information under section 260C.208;
271.23 	(iii) shall continue to provide appropriate services to both the parent and the child during 
271.24 	the period of the trial home visit;
271.25 	(iv) without previous court order or authorization, may terminate the trial home visit in 
271.26 	order to protect the child's health, safety, or welfare and may remove the child to foster care;
271.27 	(v) shall advise the court and parties within three days of the termination of the trial 
271.28 	home visit when a visit is terminated by the responsible social services agency without a 
271.29 	court order; and
271.30 	(vi) shall prepare a report for the court when the trial home visit is terminated whether 
271.31 	by the agency or court order that describes the child's circumstances during the trial home 
271.32 	visit and recommends appropriate orders, if any, for the court to enter to provide for the 
272.1 	child's safety and stability. In the event a trial home visit is terminated by the agency by 
272.2 	removing the child to foster care without prior court order or authorization, the court shall 
272.3 	conduct a hearing within ten days of receiving notice of the termination of the trial home 
272.4 	visit by the agency and shall order disposition under this subdivision or commence 
272.5 	permanency proceedings under sections 260C.503 to 260C.515. The time period for the 
272.6 	hearing may be extended by the court for good cause shown and if it is in the best interests 
272.7 	of the child as long as the total time the child spends in foster care without a permanency 
272.8 	hearing does not exceed 12 months;
272.9 	(4) if the child has been adjudicated as a child in need of protection or services because 
272.10 	the child is in need of special services or care to treat or ameliorate a physical or mental 
272.11 	disability or emotional disturbance as defined in section 245.4871, subdivision 15, the court 
272.12 	may order the child's parent, guardian, or custodian to provide it. The court may order the 
272.13 	child's health plan company to provide mental health services to the child. Section 62Q.535 
272.14 	applies to an order for mental health services directed to the child's health plan company. 
272.15 	If the health plan, parent, guardian, or custodian fails or is unable to provide this treatment 
272.16 	or care, the court may order it provided. Absent specific written findings by the court that 
272.17 	the child's disability is the result of abuse or neglect by the child's parent or guardian, the 
272.18 	court shall not transfer legal custody of the child for the purpose of obtaining special 
272.19 	treatment or care solely because the parent is unable to provide the treatment or care. If the 
272.20 	court's order for mental health treatment is based on a diagnosis made by a treatment 
272.21 	professional, the court may order that the diagnosing professional not provide the treatment 
272.22 	to the child if it finds that such an order is in the child's best interests; or
272.23 	(5) if the court believes that the child has sufficient maturity and judgment and that it is 
272.24 	in the best interests of the child, the court may order a child 16 years old or older to be 
272.25 	allowed to live independently, either alone or with others as approved by the court under 
272.26 	supervision the court considers appropriate, if the county board, after consultation with the 
272.27 	court, has specifically authorized this dispositional alternative for a child.
272.28 	(b) If the child was adjudicated in need of protection or services because the child is a 
272.29 	runaway or habitual truant, the court may order any of the following dispositions in addition 
272.30 	to or as alternatives to the dispositions authorized under paragraph (a):
272.31 	(1) counsel the child or the child's parents, guardian, or custodian;
272.32 	(2) place the child under the supervision of a probation officer or other suitable person 
272.33 	in the child's own home under conditions prescribed by the court, including reasonable rules 
273.1 	for the child's conduct and the conduct of the parents, guardian, or custodian, designed for 
273.2 	the physical, mental, and moral well-being and behavior of the child;
273.3 	(3) subject to the court's supervision, transfer legal custody of the child to one of the 
273.4 	following:
273.5 	(i) a reputable person of good moral character. No person may receive custody of two 
273.6 	or more unrelated children unless licensed to operate a residential program under sections 
273.7 	245A.01 to 245A.16; or
273.8 	(ii) a county probation officer for placement in a group foster home established under 
273.9 	the direction of the juvenile court and licensed pursuant to section 241.021;
273.10 	(4) require the child to pay a fine of up to $100. The court shall order payment of the 
273.11 	fine in a manner that will not impose undue financial hardship upon the child;
273.12 	(5) require the child to participate in a community service project;
273.13 	(6) order the child to undergo a chemical dependency evaluation and, if warranted by 
273.14 	the evaluation, order participation by the child in a drug awareness program or an inpatient 
273.15 	or outpatient chemical dependency treatment program;
273.16 	(7) if the court believes that it is in the best interests of the child or of public safety that 
273.17 	the child's driver's license or instruction permit be canceled, the court may order the 
273.18 	commissioner of public safety to cancel the child's license or permit for any period up to 
273.19 	the child's 18th birthday. If the child does not have a driver's license or permit, the court 
273.20 	may order a denial of driving privileges for any period up to the child's 18th birthday. The 
273.21 	court shall forward an order issued under this clause to the commissioner, who shall cancel 
273.22 	the license or permit or deny driving privileges without a hearing for the period specified 
273.23 	by the court. At any time before the expiration of the period of cancellation or denial, the 
273.24 	court may, for good cause, order the commissioner of public safety to allow the child to 
273.25 	apply for a license or permit, and the commissioner shall so authorize;
273.26 	(8) order that the child's parent or legal guardian deliver the child to school at the 
273.27 	beginning of each school day for a period of time specified by the court; or
273.28 	(9) require the child to perform any other activities or participate in any other treatment 
273.29 	programs deemed appropriate by the court.
273.30 	To the extent practicable, the court shall enter a disposition order the same day it makes 
273.31 	a finding that a child is in need of protection or services or neglected and in foster care, but 
273.32 	in no event more than 15 days after the finding unless the court finds that the best interests 
273.33 	of the child will be served by granting a delay. If the child was under eight years of age at 
274.1 	the time the petition was filed, the disposition order must be entered within ten days of the 
274.2 	finding and the court may not grant a delay unless good cause is shown and the court finds 
274.3 	the best interests of the child will be served by the delay.
274.4 	(c) If a child who is 14 years of age or older is adjudicated in need of protection or 
274.5 	services because the child is a habitual truant and truancy procedures involving the child 
274.6 	were previously dealt with by a school attendance review board or county attorney mediation 
274.7 	program under section 260A.06 or 260A.07, the court shall order a cancellation or denial 
274.8 	of driving privileges under paragraph (b), clause (7), for any period up to the child's 18th 
274.9 	birthday.
274.10 	(d) In the case of a child adjudicated in need of protection or services because the child 
274.11 	has committed domestic abuse and been ordered excluded from the child's parent's home, 
274.12 	the court shall dismiss jurisdiction if the court, at any time, finds the parent is able or willing 
274.13 	to provide an alternative safe living arrangement for the child, as defined in Laws 1997, 
274.14 	chapter 239, article 10, section 2 paragraph (f).
274.15 	(e) When a parent has complied with a case plan ordered under subdivision 6 and the 
274.16 	child is in the care of the parent, the court may order the responsible social services agency 
274.17 	to monitor the parent's continued ability to maintain the child safely in the home under such 
274.18 	terms and conditions as the court determines appropriate under the circumstances.
274.19 	(f) For the purposes of this subdivision, "alternative safe living arrangement" means a 
274.20 	living arrangement for a child proposed by a petitioning parent or guardian if a court excludes 
274.21 	the minor from the parent's or guardian's home that is separate from the victim of domestic 
274.22 	abuse and safe for the child respondent. A living arrangement proposed by a petitioning 
274.23 	parent or guardian is presumed to be an alternative safe living arrangement absent information 
274.24 	to the contrary presented to the court. In evaluating any proposed living arrangement, the 
274.25 	court shall consider whether the arrangement provides the child with necessary food, clothing, 
274.26 	shelter, and education in a safe environment. Any proposed living arrangement that would 
274.27 	place the child in the care of an adult who has been physically or sexually violent is presumed 
274.28 	unsafe.

274.29 	Sec. 26. Minnesota Statutes 2022, section 260C.215, subdivision 5, is amended to read:
274.30 		Subd. 5.Placement reports. Beginning December 1, 1996, The commissioner shall 
274.31 	provide to the Indian Affairs Council, the Minnesota Council on Latino Affairs, the Council 
274.32 	for Minnesotans of African Heritage, and the Council on Asian-Pacific Minnesotans the 
274.33 	annual report required under section 257.0725.

275.1 	Sec. 27. Minnesota Statutes 2022, section 260C.301, subdivision 1, is amended to read:
275.2 		Subdivision 1.Voluntary and involuntary. The juvenile court may upon petition, 
275.3 	terminate all rights of a parent to a child:
275.4 	(a) with the written consent of a parent who for good cause desires to terminate parental 
275.5 	rights; or
275.6 	(b) if it finds that one or more of the following conditions exist:
275.7 	(1) that the parent has abandoned the child;
275.8 	(2) that the parent has substantially, continuously, or repeatedly refused or neglected to 
275.9 	comply with the duties imposed upon that parent by the parent and child relationship, 
275.10 	including but not limited to providing the child with necessary food, clothing, shelter, 
275.11 	education, and other care and control necessary for the child's physical, mental, or emotional 
275.12 	health and development, if the parent is physically and financially able, and either reasonable 
275.13 	efforts by the social services agency have failed to correct the conditions that formed the 
275.14 	basis of the petition or reasonable efforts would be futile and therefore unreasonable;
275.15 	(3) that a parent has been ordered to contribute to the support of the child or financially 
275.16 	aid in the child's birth and has continuously failed to do so without good cause. This clause 
275.17 	shall not be construed to state a grounds for termination of parental rights of a noncustodial 
275.18 	parent if that parent has not been ordered to or cannot financially contribute to the support 
275.19 	of the child or aid in the child's birth;
275.20 	(4) that a parent is palpably unfit to be a party to the parent and child relationship because 
275.21 	of a consistent pattern of specific conduct before the child or of specific conditions directly 
275.22 	relating to the parent and child relationship either of which are determined by the court to 
275.23 	be of a duration or nature that renders the parent unable, for the reasonably foreseeable 
275.24 	future, to care appropriately for the ongoing physical, mental, or emotional needs of the 
275.25 	child. It is presumed that a parent is palpably unfit to be a party to the parent and child 
275.26 	relationship upon a showing that the parent's parental rights to one or more other children 
275.27 	were involuntarily terminated or that the parent's custodial rights to another child have been 
275.28 	involuntarily transferred to a relative under Minnesota Statutes 2010, section 260C.201, 
275.29 	subdivision 11, paragraph (e), clause (1), section 260C.515, subdivision 4, a juvenile 
275.30 	protection proceeding or a similar law process of another jurisdiction;
275.31 	(5) that following the child's placement out of the home, reasonable efforts, under the 
275.32 	direction of the court, have failed to correct the conditions leading to the child's placement. 
275.33 	It is presumed that reasonable efforts under this clause have failed upon a showing that:
276.1 	(i) a child has resided out of the parental home under court order for a cumulative period 
276.2 	of 12 months within the preceding 22 months. In the case of a child under age eight at the 
276.3 	time the petition was filed alleging the child to be in need of protection or services, the 
276.4 	presumption arises when the child has resided out of the parental home under court order 
276.5 	for six months unless the parent has maintained regular contact with the child and the parent 
276.6 	is complying with the out-of-home placement plan;
276.7 	(ii) the court has approved the out-of-home placement plan required under section 
276.8 	260C.212 and filed with the court under section 260C.178;
276.9 	(iii) conditions leading to the out-of-home placement have not been corrected. It is 
276.10 	presumed that conditions leading to a child's out-of-home placement have not been corrected 
276.11 	upon a showing that the parent or parents have not substantially complied with the court's 
276.12 	orders and a reasonable case plan; and
276.13 	(iv) reasonable efforts have been made by the social services agency to rehabilitate the 
276.14 	parent and reunite the family.
276.15 	This clause does not prohibit the termination of parental rights prior to one year, or in 
276.16 	the case of a child under age eight, prior to six months after a child has been placed out of 
276.17 	the home.
276.18 	It is also presumed that reasonable efforts have failed under this clause upon a showing 
276.19 	that:
276.20 	(A) the parent has been diagnosed as chemically dependent by a professional certified 
276.21 	to make the diagnosis;
276.22 	(B) the parent has been required by a case plan to participate in a chemical dependency 
276.23 	treatment program;
276.24 	(C) the treatment programs offered to the parent were culturally, linguistically, and 
276.25 	clinically appropriate;
276.26 	(D) the parent has either failed two or more times to successfully complete a treatment 
276.27 	program or has refused at two or more separate meetings with a caseworker to participate 
276.28 	in a treatment program; and
276.29 	(E) the parent continues to abuse chemicals.
276.30 	(6) that a child has experienced egregious harm in the parent's care which is of a nature, 
276.31 	duration, or chronicity that indicates a lack of regard for the child's well-being, such that a 
277.1 	reasonable person would believe it contrary to the best interest of the child or of any child 
277.2 	to be in the parent's care;
277.3 	(7) that in the case of a child born to a mother who was not married to the child's father 
277.4 	when the child was conceived nor when the child was born the person is not entitled to 
277.5 	notice of an adoption hearing under section 259.49 and the person has not registered with 
277.6 	the fathers' adoption registry under section 259.52;
277.7 	(8) that the child is neglected and in foster care; or
277.8 	(9) that the parent has been convicted of a crime listed in section 260.012, paragraph 
277.9 	(g), clauses (1) to (5).
277.10 	In an action involving an American Indian child, sections 260.751 to 260.835 and the 
277.11 	Indian Child Welfare Act, United States Code, title 25, sections 1901 to 1923, control to 
277.12 	the extent that the provisions of this section are inconsistent with those laws.

277.13 	Sec. 28. Minnesota Statutes 2023 Supplement, section 260C.317, subdivision 3, is amended 
277.14 	to read:
277.15 		Subd. 3.Order; retention of jurisdiction. (a) A certified copy of the findings and the 
277.16 	order terminating parental rights, and a summary of the court's information concerning the 
277.17 	child shall be furnished by the court to the commissioner or the agency to which guardianship 
277.18 	is transferred.
277.19 	(b) The orders shall be on a document separate from the findings. The court shall furnish 
277.20 	the guardian a copy of the order terminating parental rights.
277.21 	(c) When the court orders guardianship pursuant to this section, the guardian ad litem 
277.22 	and counsel for the child shall continue on the case until an adoption decree is entered. An 
277.23 	in-court appearance hearing must be held every 90 days following termination of parental 
277.24 	rights for the court to review progress toward an adoptive placement and the specific 
277.25 	recruitment efforts the agency has taken to find an adoptive family for the child and to 
277.26 	finalize the adoption or other permanency plan. Review of the progress toward adoption of 
277.27 	a child under guardianship of the commissioner of human services shall be conducted 
277.28 	according to section 260C.607.
277.29 	(d) Upon terminating parental rights or upon a parent's consent to adoption under section 
277.30 	260C.515, subdivision 3, this chapter resulting in an order for guardianship to the 
277.31 	commissioner of human services, the court shall retain jurisdiction:
277.32 	(1) until the child is adopted;
278.1 	(2) through the child's minority; or
278.2 	(3) as long as the child continues in or reenters foster care, until the individual becomes 
278.3 	21 years of age according to sections 260C.193, subdivision 6, and 260C.451.

278.4 	Sec. 29. Minnesota Statutes 2022, section 260D.02, subdivision 5, is amended to read:
278.5 		Subd. 5.Child in voluntary foster care for treatment. "Child in voluntary foster care 
278.6 	for treatment" means a child who is emotionally disturbed or developmentally disabled or 
278.7 	has with emotional disturbance or developmental disability, or who has a related condition 
278.8 	and is in foster care under a voluntary foster care agreement between the child's parent and 
278.9 	the agency due to concurrence between the agency and the parent when it is determined 
278.10 	that foster care is medically necessary:
278.11 	(1) due to a determination by the agency's screening team based on its review of the 
278.12 	diagnostic and functional assessment under section 245.4885; or
278.13 	(2) due to a determination by the agency's screening team under section 256B.092 and 
278.14 	Minnesota Rules, parts 9525.0004 to 9525.0016.
278.15 	A child is not in voluntary foster care for treatment under this chapter when there is a 
278.16 	current determination under chapter 260E that the child requires child protective services 
278.17 	or when the child is in foster care for any reason other than the child's emotional or 
278.18 	developmental disability or related condition.

278.19 	Sec. 30. Minnesota Statutes 2022, section 260D.02, subdivision 9, is amended to read:
278.20 		Subd. 9.Emotionally disturbed or Emotional disturbance. "Emotionally disturbed" 
278.21 	or "Emotional disturbance" means emotional disturbance as described in section 245.4871, 
278.22 	subdivision 15.

278.23 	Sec. 31. Minnesota Statutes 2023 Supplement, section 260E.02, subdivision 1, is amended 
278.24 	to read:
278.25 		Subdivision 1.Establishment of team. A county shall establish a multidisciplinary 
278.26 	child protection team that may include, but is not limited to, the director of the local welfare 
278.27 	agency or designees, the county attorney or designees, the county sheriff or designees, 
278.28 	representatives of health and education, representatives of mental health, representatives of 
278.29 	agencies providing specialized services or responding to youth who experience or are at 
278.30 	risk of experiencing sex trafficking or sexual exploitation, or other appropriate human 
278.31 	services, children's services, or community-based agencies, and parent groups. As used in 
279.1 	this section, a "community-based agency" may include, but is not limited to, schools, social 
279.2 	services agencies, family service and mental health collaboratives, children's advocacy 
279.3 	centers, early childhood and family education programs, Head Start, or other agencies 
279.4 	serving children and families. A member of the team must be designated as the lead person 
279.5 	of the team responsible for the planning process to develop standards for the team's activities 
279.6 	with battered women's and domestic abuse programs and services.

279.7 	Sec. 32. Minnesota Statutes 2022, section 260E.02, subdivision 2, is amended to read:
279.8 		Subd. 2.Duties of team. A multidisciplinary child protection team may provide public 
279.9 	and professional education, develop resources for prevention, intervention, and treatment, 
279.10 	and provide case consultation to the local welfare agency or other interested community-based 
279.11 	agencies. The community-based agencies may request case consultation from the 
279.12 	multidisciplinary child protection team regarding a child or family for whom the 
279.13 	community-based agency is providing services. As used in this section, "case consultation" 
279.14 	means a case review process in which recommendations are made concerning services to 
279.15 	be provided to the identified children and family. Case consultation may be performed by 
279.16 	a committee or subcommittee of members representing human services or children's services, 
279.17 	including mental health and substance use disorder providers; law enforcement, including 
279.18 	probation and parole; the county attorney; a children's advocacy center; health care; 
279.19 	education; community-based agencies and other necessary agencies; and persons directly 
279.20 	involved in an individual case as designated by other members performing case consultation.

279.21 	Sec. 33. Minnesota Statutes 2022, section 260E.03, subdivision 23, is amended to read:
279.22 		Subd. 23.Threatened injury. (a) "Threatened injury" means a statement, overt act, 
279.23 	condition, or status that represents a substantial risk of physical or sexual abuse or mental 
279.24 	injury.
279.25 	(b) Threatened injury includes, but is not limited to, exposing a child to a person 
279.26 	responsible for the child's care, as defined in subdivision 17, who has:
279.27 	(1) subjected a child to, or failed to protect a child from, an overt act or condition that 
279.28 	constitutes egregious harm under subdivision 5 or a similar law of another jurisdiction;
279.29 	(2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph 
279.30 	(b), clause (4), or a similar law of another jurisdiction;
279.31 	(3) committed an act that resulted in an involuntary termination of parental rights under 
279.32 	section 260C.301, or a similar law of another jurisdiction; or
280.1 	(4) committed an act that resulted in the involuntary transfer of permanent legal and 
280.2 	physical custody of a child to a relative under Minnesota Statutes 2010, section 260C.201, 
280.3 	subdivision 11, paragraph (d), clause (1), section 260C.515, subdivision 4, or a similar law 
280.4 	of another jurisdiction.
280.5 	(c) A child is the subject of a report of threatened injury when the local welfare agency 
280.6 	receives birth match data under section 260E.14, subdivision 4, from the Department of 
280.7 	Human Services.

280.8 	Sec. 34. Minnesota Statutes 2022, section 260E.14, subdivision 1, is amended to read:
280.9 		Subdivision 1.Facilities and schools. (a) The local welfare agency is the agency 
280.10 	responsible for investigating allegations of maltreatment in child foster care, family child 
280.11 	care, legally nonlicensed child care, and reports involving children served by an unlicensed 
280.12 	personal care provider organization under section 256B.0659. Copies of findings related to 
280.13 	personal care provider organizations under section 256B.0659 must be forwarded to the 
280.14 	Department of Human Services provider enrollment.
280.15 	(b) The Department of Human Services is the agency responsible for screening and 
280.16 	investigating allegations of maltreatment in juvenile correctional facilities listed under 
280.17 	section 241.021 located in the local welfare agency's county and in facilities licensed or 
280.18 	certified under chapters 245A, and245D, and 245H, except for child foster care and family 
280.19 	child care.
280.20 	(c) The Department of Health is the agency responsible for screening and investigating 
280.21 	allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43 
280.22 	to 144A.482 or chapter 144H.
280.23 	(d) The Department of Education is the agency responsible for screening and investigating 
280.24 	allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11, 
280.25 	and 13, and chapter 124E. The Department of Education's responsibility to screen and 
280.26 	investigate includes allegations of maltreatment involving students 18 to 21 years of age, 
280.27 	including students receiving special education services, up to and including graduation and 
280.28 	the issuance of a secondary or high school diploma.
280.29 	(e) A health or corrections agency receiving a report may request the local welfare agency 
280.30 	to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
280.31 	(f) The Department of Children, Youth, and Families is the agency responsible for 
280.32 	screening and investigating allegations of maltreatment in facilities or programs not listed 
280.33 	in paragraph (a) that are licensed or certified under chapters 142B and 142C.

281.1 	Sec. 35. Minnesota Statutes 2022, section 260E.20, subdivision 3, is amended to read:
281.2 		Subd. 3.Collection of information. (a) The local welfare agency responsible for 
281.3 	conducting a family assessment or investigation shall collect available and relevant 
281.4 	information to determine child safety, risk of subsequent maltreatment, and family strengths 
281.5 	and needs and share not public information with an Indian's Tribal social services agency 
281.6 	without violating any law of the state that may otherwise impose a duty of confidentiality 
281.7 	on the local welfare agency in order to implement the Tribal state agreement.
281.8 	(b) The local welfare agency or the agency responsible for investigating the report shall 
281.9 	collect available and relevant information to ascertain whether maltreatment occurred and 
281.10 	whether protective services are needed.
281.11 	(c) Information collected includes, when relevant, information with regard to regarding
281.12 	the person reporting the alleged maltreatment, including the nature of the reporter's 
281.13 	relationship to the child and to the alleged offender, and the basis of the reporter's knowledge 
281.14 	for the report; the child allegedly being maltreated; the alleged offender; the child's caretaker; 
281.15 	and other collateral sources having relevant information related to the alleged maltreatment.
281.16 	(d) Information relevant to the assessment or investigation must be asked for requested, 
281.17 	and may include:
281.18 	(1) the child's sex and age; prior reports of maltreatment, including any maltreatment 
281.19 	reports that were screened out and not accepted for assessment or investigation; information 
281.20 	relating to developmental functioning; credibility of the child's statement; and whether the 
281.21 	information provided under this clause is consistent with other information collected during 
281.22 	the course of the assessment or investigation;
281.23 	(2) the alleged offender's age, a record check for prior reports of maltreatment, and 
281.24 	criminal charges and convictions;
281.25 	(3) collateral source information regarding the alleged maltreatment and care of the 
281.26 	child. Collateral information includes, when relevant: (i) a medical examination of the child; 
281.27 	(ii) prior medical records relating to the alleged maltreatment or the care of the child 
281.28 	maintained by any facility, clinic, or health care professional and an interview with the 
281.29 	treating professionals; and (iii) interviews with the child's caretakers, including the child's 
281.30 	parent, guardian, foster parent, child care provider, teachers, counselors, family members, 
281.31 	relatives, and other persons who may have knowledge regarding the alleged maltreatment 
281.32 	and the care of the child; and
282.1 	(4) information on the existence of domestic abuse and violence in the home of the child, 
282.2 	and substance abuse.
282.3 	(e) Nothing in this subdivision precludes the local welfare agency, the local law 
282.4 	enforcement agency, or the agency responsible for assessing or investigating the report from 
282.5 	collecting other relevant information necessary to conduct the assessment or investigation.
282.6 	(f) Notwithstanding section 13.384 or 144.291 to 144.298, the local welfare agency has 
282.7 	access to medical data and records for purposes of paragraph (d), clause (3).

282.8 	Sec. 36. Minnesota Statutes 2022, section 260E.20, subdivision 5, is amended to read:
282.9 		Subd. 5.Law enforcement fact finding. If the report alleges maltreatment by a person 
282.10 	who is not a parent, guardian, sibling, person responsible for the child's care functioning 
282.11 	within the family unit, or a person who lives in the child's household and who has a 
282.12 	significant relationship to the child, in a setting other than a facility as defined in section 
282.13 	260E.03, the local welfare agency may rely on the fact-finding efforts of the law enforcement 
282.14 	investigation to make a determination whether or not determine if threatened injury or other 
282.15 	maltreatment has occurred under section 260E.03, subdivision 12, if an alleged offender 
282.16 	has minor children or lives with minors.

282.17 	Sec. 37. Minnesota Statutes 2022, section 260E.24, subdivision 5, is amended to read:
282.18 		Subd. 5.Notifications at conclusion of family investigation. (a) Within ten working 
282.19 	days of the conclusion of an investigation, the local welfare agency or agency responsible 
282.20 	for investigating the report shall notify the parent or guardian of the child and the person 
282.21 	determined to be maltreating the child, if not the parent or guardian of the child, of the 
282.22 	determination and a summary of the specific reasons for the determination.
282.23 	(b) The notice must include a certification that the information collection procedures 
282.24 	under section 260E.20 were followed and a notice of the right of a data subject to obtain 
282.25 	access to other private data on the subject collected, created, or maintained under this section.
282.26 	(c) In addition, the notice shall include the length of time that the records will be kept 
282.27 	under section 260E.35, subdivision 6. The investigating agency shall notify the parent or 
282.28 	guardian of the child who is the subject of the report and any person determined to have 
282.29 	maltreated the child of their appeal or review rights under this chapter.
282.30 	(d) The notice must also state that a finding of maltreatment may result in denial of a 
282.31 	license or certification application or background study disqualification under chapter 245C
282.32 	related to employment or services that are licensed or certified by the Department of Human 
283.1 	Services under chapter 245Aor 245H,; the Department of Children, Youth, and Families 
283.2 	under chapter 142B or 142C; the Department of Health under chapter 144 or 144A,; or the 
283.3 	Department of Corrections under section 241.021, and from providing services related to 
283.4 	an unlicensed personal care provider organization under chapter 256B.

283.5 	Sec. 38. Minnesota Statutes 2022, section 260E.28, subdivision 1, is amended to read:
283.6 		Subdivision 1.Immediate investigation for alleged maltreatment in a facility. (a) 
283.7 	The commissioner of human services,; children, youth, and families; health,; or education, 
283.8 	whichever is responsible for investigating the report, shall immediately investigate if the 
283.9 	report alleges that:
283.10 	(1) a child who is in the care of a facility as defined in section 260E.03 is the victim of 
283.11 	maltreatment in a facility by an individual in that facility or has been the victim of 
283.12 	maltreatment in a facility by an individual in that facility within the three years preceding 
283.13 	the report; or
283.14 	(2) a child is the victim of maltreatment in a facility by an individual in a facility defined 
283.15 	in section 260E.03, subdivision 6, while in the care of that facility within the three years 
283.16 	preceding the report.
283.17 	(b) The commissioner of the agency responsible for investigating the report shall arrange 
283.18 	for the transmittal to the commissioner of reports received by local agencies and may delegate 
283.19 	to a local welfare agency the duty to investigate reports. The commissioner of the agency 
283.20 	responsible for investigating the report or local welfare agency may interview any children 
283.21 	who are or have been in the care of a facility under investigation and the children's parents, 
283.22 	guardians, or legal custodians.
283.23 	(c) In conducting an investigation under this section, the commissioner has the powers 
283.24 	and duties specified for a local welfare agency under this chapter.

283.25 	Sec. 39. Minnesota Statutes 2022, section 260E.28, subdivision 3, is amended to read:
283.26 		Subd. 3.Facility records. The commissioner of human services,; the commissioner of 
283.27 	children, youth, and families; the ombudsman for mental health and developmental 
283.28 	disabilities,; the local welfare agencies responsible for investigating reports,; the 
283.29 	commissioner of education,; and the local law enforcement agencies have the right to enter 
283.30 	a facility as defined in section 260E.03 and to inspect and copy the facility's records, 
283.31 	including medical records, as part of the investigation. Notwithstanding the provisions of 
283.32 	chapter 13, the commissioner of human services,; the commissioner of children, youth, and 
284.1 	families; the ombudsman for mental health and developmental disabilities,; the local welfare 
284.2 	agencies responsible for investigating reports,; the commissioner of education,; and the 
284.3 	local law enforcement agencies also have the right to inform the facility under investigation 
284.4 	that an investigation is being conducted, to disclose to the facility the names of the individuals 
284.5 	under investigation for maltreating a child, and to provide the facility with a copy of the 
284.6 	report and the investigative findings.

284.7 	Sec. 40. Minnesota Statutes 2022, section 260E.29, subdivision 2, is amended to read:
284.8 		Subd. 2.Notification requirements for other types of facilities. When a report is 
284.9 	received that alleges maltreatment of a child while in the care of a licensed or unlicensed 
284.10 	day care facility, residential facility, agency, hospital, sanitarium, or other facility or 
284.11 	institution required to be licensed or certified according to sections 144.50 to 144.58; 
284.12 	241.021; or 245A.01 to 245A.16; or chapter 142B, 142C, 144H, or 245D, or 245H; or a 
284.13 	school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; or a 
284.14 	nonlicensed personal care provider organization as defined in section 256B.0625, subdivision 
284.15 	19a, the commissioner of the agency responsible for investigating the report or local welfare 
284.16 	agency investigating the report shall provide the following information to the parent, 
284.17 	guardian, or legal custodian of a child alleged to have been the victim of maltreatment in 
284.18 	the facility: the name of the facility; the fact that a report alleging maltreatment in the facility 
284.19 	has been received; the nature of the alleged maltreatment in the facility; that the agency is 
284.20 	conducting an investigation; any protective or corrective measures being taken pending the 
284.21 	outcome of the investigation; and that a written memorandum will be provided when the 
284.22 	investigation is completed.

284.23 	Sec. 41. Minnesota Statutes 2022, section 260E.30, subdivision 3, is amended to read:
284.24 		Subd. 3.Nonmaltreatment mistake. (a) If paragraph (b) applies, rather than making a 
284.25 	determination of substantiated maltreatment by the individual, the commissioner of human 
284.26 	services children, youth, and families shall determine that the individual made a 
284.27 	nonmaltreatment mistake was made by the individual.
284.28 	(b) A nonmaltreatment mistake occurs when:
284.29 	(1) at the time of the incident, the individual was performing duties identified in the 
284.30 	center's facility's child care program plan required under Minnesota Rules, part 9503.0045;
284.31 	(2) the individual has not been determined responsible for a similar incident that resulted 
284.32 	in a finding of maltreatment for at least seven years;
285.1 	(3) the individual has not been determined to have committed a similar nonmaltreatment 
285.2 	mistake under this paragraph for at least four years;
285.3 	(4) any injury to a child resulting from the incident, if treated, is treated only with 
285.4 	remedies that are available over the counter, whether ordered by a medical professional or 
285.5 	not; and
285.6 	(5) except for the period when the incident occurred, the facility and the individual 
285.7 	providing services were both in compliance with all licensing requirements relevant to the 
285.8 	incident.
285.9 	(c) This subdivision only applies to child care centers licensed under Minnesota Rules, 
285.10 	chapter 9503.

285.11 	Sec. 42. Minnesota Statutes 2022, section 260E.30, subdivision 6, is amended to read:
285.12 		Subd. 6.Notification to parent, child, or offender following investigation. (a) Within 
285.13 	ten working days of the conclusion of an investigation, the local welfare agency or agency 
285.14 	responsible for investigating the report of maltreatment in a facility shall notify the parent 
285.15 	or guardian of the child, the person determined to be maltreating the child, and the director 
285.16 	of the facility of the determination and a summary of the specific reasons for the 
285.17 	determination.
285.18 	(b) When the investigation involves a child foster care setting that is monitored by a 
285.19 	private licensing agency under section 245A.16, the local welfare agency responsible for 
285.20 	investigating the report shall notify the private licensing agency of the determination and 
285.21 	shall provide a summary of the specific reasons for the determination. The notice to the 
285.22 	private licensing agency must include identifying private data, but not the identity of the 
285.23 	reporter of maltreatment.
285.24 	(c) The notice must also include a certification that the information collection procedures 
285.25 	under section 260E.20, subdivision 3, were followed and a notice of the right of a data 
285.26 	subject to obtain access to other private data on the subject collected, created, or maintained 
285.27 	under this section.
285.28 	(d) In addition, the notice shall include the length of time that the records will be kept 
285.29 	under section 260E.35, subdivision 6.
285.30 	(e) The investigating agency shall notify the parent or guardian of the child who is the 
285.31 	subject of the report and any person or facility determined to have maltreated a child of 
285.32 	their appeal or review rights under this section.
286.1 	(f) The notice must also state that a finding of maltreatment may result in denial of a 
286.2 	license or certification application or background study disqualification under chapter 245C
286.3 	related to employment or services that are licensed by the Department of Human Services 
286.4 	under chapter 245Aor 245H,; the Department of Children, Youth, and Families under 
286.5 	chapter 142B or 142C; the Department of Health under chapter 144 or 144A,; or the 
286.6 	Department of Corrections under section 241.021, and from providing services related to 
286.7 	an unlicensed personal care provider organization under chapter 256B.

286.8 	Sec. 43. Minnesota Statutes 2022, section 260E.32, subdivision 3, is amended to read:
286.9 		Subd. 3.Report to Department of Health. Physicians shall report to the Department 
286.10 	of Health the results of tests performed under subdivisions 1 and 2. A report shall be made 
286.11 	on the certificate of live birth medical supplement or the report of fetal death medical 
286.12 	supplement filed on or after February 1, 1991. The reports are medical data under section 
286.13 	13.384.

286.14 	Sec. 44. Minnesota Statutes 2022, section 260E.33, subdivision 2, is amended to read:
286.15 		Subd. 2.Request for reconsideration. (a) Except as provided under subdivision 5, an 
286.16 	individual or facility that the commissioner of human services,; commissioner of children, 
286.17 	youth, and families; a local welfare agency,; or the commissioner of education determines 
286.18 	has maltreated a child, an interested person acting on behalf of the child, regardless of the 
286.19 	determination, who contests the investigating agency's final determination regarding 
286.20 	maltreatment may request the investigating agency to reconsider its final determination 
286.21 	regarding maltreatment. The request for reconsideration must be submitted in writing to the 
286.22 	investigating agency within 15 calendar days after receipt of notice of the final determination 
286.23 	regarding maltreatment or, if the request is made by an interested person who is not entitled 
286.24 	to notice, within 15 days after receipt of the notice by the parent or guardian of the child. 
286.25 	If mailed, the request for reconsideration must be postmarked and sent to the investigating 
286.26 	agency within 15 calendar days of the individual's or facility's receipt of the final 
286.27 	determination. If the request for reconsideration is made by personal service, it must be 
286.28 	received by the investigating agency within 15 calendar days after the individual's or facility's 
286.29 	receipt of the final determination.
286.30 	(b) An individual who was determined to have maltreated a child under this chapter and 
286.31 	who was disqualified on the basis of serious or recurring maltreatment under sections 
286.32 	245C.14 and 245C.15 may request reconsideration of the maltreatment determination and 
286.33 	the disqualification. The request for reconsideration of the maltreatment determination and 
287.1 	the disqualification must be submitted within 30 calendar days of the individual's receipt 
287.2 	of the notice of disqualification under sections 245C.16 and 245C.17. If mailed, the request 
287.3 	for reconsideration of the maltreatment determination and the disqualification must be 
287.4 	postmarked and sent to the investigating agency within 30 calendar days of the individual's 
287.5 	receipt of the maltreatment determination and notice of disqualification. If the request for 
287.6 	reconsideration is made by personal service, it must be received by the investigating agency 
287.7 	within 30 calendar days after the individual's receipt of the notice of disqualification.

287.8 	Sec. 45. Minnesota Statutes 2022, section 260E.33, subdivision 3, is amended to read:
287.9 		Subd. 3.Request for fair hearing. (a) Except as provided under subdivisions 5 and 6, 
287.10 	if the investigating agency denies the request or fails to act upon the request within 15 
287.11 	working days after receiving the request for reconsideration, the person or facility entitled 
287.12 	to a fair hearing under section 142A.20 or 256.045 may submit to the commissioner of 
287.13 	human services; the commissioner of children, youth, and families; or the commissioner of 
287.14 	education a written request for a hearing under section 142A.20 or 256.045. Section 256.045
287.15 	also governs hearings requested to contest a final determination of the commissioner of 
287.16 	education. Section 142A.20 governs hearings requested to contest a final determination of 
287.17 	the commissioner of children, youth, and families. The investigating agency shall notify 
287.18 	persons who request reconsideration of their rights under this paragraph. The hearings 
287.19 	specified under this section are the only administrative appeal of a decision issued under 
287.20 	subdivision 2. Determinations under this section are not subject to accuracy and completeness 
287.21 	challenges under section 13.04.
287.22 	(b) Except as provided under subdivision 6, if an individual or facility contests the 
287.23 	investigating agency's final determination regarding maltreatment by requesting a fair 
287.24 	hearing under section 142A.20 or 256.045, the commissioner of human services or children, 
287.25 	youth, and families shall ensure that the hearing is conducted and a decision is reached 
287.26 	within 90 days of receipt of the request for a hearing. The time for action on the decision 
287.27 	may be extended for as many days as the hearing is postponed or the record is held open 
287.28 	for the benefit of either party.

287.29 	Sec. 46. Minnesota Statutes 2022, section 260E.33, subdivision 5, is amended to read:
287.30 		Subd. 5.Consolidation. If an individual was disqualified under sections 245C.14 and 
287.31 	245C.15 on the basis of a determination of maltreatment which was serious or recurring, 
287.32 	and the individual requested reconsideration of the maltreatment determination under 
287.33 	subdivision 2 and requested reconsideration of the disqualification under sections 245C.21 
288.1 	to 245C.27, reconsideration of the maltreatment determination and reconsideration of the 
288.2 	disqualification shall be consolidated into a single fair hearing. If reconsideration of the 
288.3 	maltreatment determination is denied and the individual remains disqualified following a 
288.4 	reconsideration decision, the individual may request a fair hearing under section 142A.20 
288.5 	or 256.045. If an individual requests a fair hearing on the maltreatment determination and 
288.6 	the disqualification, the scope of the fair hearing shall include both the maltreatment 
288.7 	determination and the disqualification.

288.8 	Sec. 47. Minnesota Statutes 2022, section 260E.34, is amended to read:
288.9 	260E.34 IMMUNITY.
288.10 	(a) The following persons are immune from any civil or criminal liability that otherwise 
288.11 	might result from the person's actions if the person is acting in good faith:
288.12 	(1) a person making a voluntary or mandated report under this chapter or assisting in an 
288.13 	assessment under this chapter;
288.14 	(2) a person with responsibility for performing duties under this section or supervisor 
288.15 	employed by a local welfare agency, the commissioner of an agency responsible for operating 
288.16 	or supervising a licensed or unlicensed day care facility, residential facility, agency, hospital, 
288.17 	sanitarium, or other facility or institution required to be licensed or certified under sections 
288.18 	144.50 to 144.58; 241.021; 245A.01 to 245A.16; or chapter 245B or 245H 142B or 142C; 
288.19 	or a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E; or 
288.20 	a nonlicensed personal care provider organization as defined in section 256B.0625, 
288.21 	subdivision 19a, complying with sections 260E.23, subdivisions 2 and 3, and 260E.30; and
288.22 	(3) a public or private school, facility as defined in section 260E.03, or the employee of 
288.23 	any public or private school or facility who permits access by a local welfare agency, the 
288.24 	Department of Education, or a local law enforcement agency and assists in an investigation 
288.25 	or assessment pursuant to this chapter.
288.26 	(b) A person who is a supervisor or person with responsibility for performing duties 
288.27 	under this chapter employed by a local welfare agency,; the commissioner of human services,; 
288.28 	the commissioner of children, youth, and families; or the commissioner of education 
288.29 	complying with this chapter or any related rule or provision of law is immune from any 
288.30 	civil or criminal liability that might otherwise result from the person's actions if the person 
288.31 	is (1) acting in good faith and exercising due care, or (2) acting in good faith and following 
288.32 	the information collection procedures established under section 260E.20, subdivision 3.
289.1 	(c) Any physician or other medical personnel administering a toxicology test under 
289.2 	section 260E.32 to determine the presence of a controlled substance in a pregnant woman, 
289.3 	in a woman within eight hours after delivery, or in a child at birth or during the first month 
289.4 	of life is immune from civil or criminal liability arising from administration of the test if 
289.5 	the physician ordering the test believes in good faith that the test is required under this 
289.6 	section and the test is administered in accordance with an established protocol and reasonable 
289.7 	medical practice.
289.8 	(d) This section does not provide immunity to any person for failure to make a required 
289.9 	report or for committing maltreatment.
289.10 	(e) If a person who makes a voluntary or mandatory report under section 260E.06 prevails 
289.11 	in a civil action from which the person has been granted immunity under this section, the 
289.12 	court may award the person attorney fees and costs.

289.13 	Sec. 48. Minnesota Statutes 2022, section 260E.35, subdivision 3, is amended to read:
289.14 		Subd. 3.Classification and release of data. (a) A written copy of a report maintained 
289.15 	by personnel of agencies, other than welfare or law enforcement agencies, which are subject 
289.16 	to chapter 13 shall be confidential. An individual subject of the report may obtain access 
289.17 	to the original report as provided by paragraphs (g) to (o).
289.18 	(b) All reports and records created, collected, or maintained under this chapter by a local 
289.19 	welfare agency or law enforcement agency may be disclosed to a local welfare or other 
289.20 	child welfare agency of another state when the agency certifies that:
289.21 	(1) the reports and records are necessary to conduct an investigation of actions that would 
289.22 	qualify as maltreatment under this chapter; and
289.23 	(2) the reports and records will be used only for purposes of a child protection assessment 
289.24 	or investigation and will not be further disclosed to any other person or agency.
289.25 	(c) The local social services welfare agency or law enforcement agency in this state shall 
289.26 	keep a record of all records or reports disclosed pursuant to this subdivision and of any 
289.27 	agency to which the records or reports are disclosed. If, in any case, records or reports are 
289.28 	disclosed before a determination is made under section 260E.24, subdivision 3, paragraph 
289.29 	(a), or a disposition of a criminal proceeding is reached, the local social services welfare
289.30 	agency or law enforcement agency in this state shall forward the determination or disposition 
289.31 	to any agency that has received a report or record under this subdivision.
289.32 	(d) The responsible authority of a local welfare agency or the responsible authority's 
289.33 	designee may release private or confidential data on an active case involving assessment 
290.1 	or investigation of actions that are defined as maltreatment under this chapter to a court 
290.2 	services agency if:
290.3 	(1) the court services agency has an active case involving a common client who is the 
290.4 	subject of the data; and
290.5 	(2) the data are necessary for the court services agency to effectively process the court 
290.6 	services agency's case, including investigating or performing other duties relating to the 
290.7 	case required by law.
290.8 	(e) The data disclosed under paragraph (d) may be used only for purposes of the active 
290.9 	court services case described in paragraph (d), clause (1), and may not be further disclosed 
290.10 	to any other person or agency, except as authorized by law.
290.11 	(f) Records maintained under subdivision 4, paragraph (b), may be shared with another 
290.12 	local welfare agency that requests the information because it is conducting an assessment 
290.13 	or investigation under this section of the subject of the records.
290.14 	(g) Except as provided in paragraphs (b), (h), (i), (o), and (p); subdivision 1; and sections 
290.15 	260E.22, subdivision 2; and 260E.23, all records concerning individuals maintained by a 
290.16 	local welfare agency or agency responsible for assessing or investigating the report under 
290.17 	this chapter, including any written reports filed under sections 260E.06 and 260E.09, shall 
290.18 	be private data on individuals, except insofar as copies of reports are required by section 
290.19 	260E.12, subdivision 1 or 2, to be sent to the local police department or the county sheriff.
290.20 	(h) All records concerning determinations of maltreatment by a facility are nonpublic 
290.21 	data as maintained by the Department of Education, except insofar as copies of reports are 
290.22 	required by section 260E.12, subdivision 1 or 2, to be sent to the local police department 
290.23 	or the county sheriff.
290.24 	(i) Reports maintained by any police department or the county sheriff shall be private 
290.25 	data on individuals, except the reports shall be made available to the investigating, petitioning, 
290.26 	or prosecuting authority, including a county medical examiner or county coroner.
290.27 	(j) Section 13.82, subdivisions 8, 9, and 14, apply to law enforcement data other than 
290.28 	the reports.
290.29 	(k) The local welfare agency or agency responsible for assessing or investigating the 
290.30 	report shall make available to the investigating, petitioning, or prosecuting authority, 
290.31 	including a county medical examiner or county coroner or a professional delegate, any 
290.32 	records that contain information relating to a specific incident of maltreatment that is under 
290.33 	investigation, petition, or prosecution and information relating to any prior incident of 
291.1 	maltreatment involving any of the same persons. The records shall be collected and 
291.2 	maintained according to chapter 13.
291.3 	(l) An individual subject of a record shall have access to the record according to those 
291.4 	sections, except that the name of the reporter shall be confidential while the report is under 
291.5 	assessment or investigation except as otherwise permitted by this section.
291.6 	(m) Any person conducting an investigation or assessment under this section who 
291.7 	intentionally discloses the identity of a reporter before the completion of the investigation 
291.8 	or assessment is guilty of a misdemeanor. After the assessment or investigation is completed, 
291.9 	the name of the reporter shall be confidential. The subject of the report may compel disclosure 
291.10 	of the name of the reporter only with the consent of the reporter or upon a written finding 
291.11 	by the court that the report was false and that there is evidence that the report was made in 
291.12 	bad faith. This subdivision does not alter disclosure responsibilities or obligations under 
291.13 	the Rules of Criminal Procedure.
291.14 	(n) Upon request of the legislative auditor, data on individuals maintained under this 
291.15 	chapter must be released to the legislative auditor in order for the auditor to fulfill the 
291.16 	auditor's duties under section 3.971. The auditor shall maintain the data according to chapter 
291.17 	13.
291.18 	(o) Active law enforcement investigative data received by a local welfare agency or 
291.19 	agency responsible for assessing or investigating the report under this chapter are confidential 
291.20 	data on individuals. When this data become inactive in the law enforcement agency, the 
291.21 	data are private data on individuals.
291.22 	(p) Section 13.03, subdivision 4, applies to data received by the commissioner of 
291.23 	education from a licensing entity.

291.24 	Sec. 49. Minnesota Statutes 2022, section 260E.36, subdivision 4, is amended to read:
291.25 		Subd. 4.Joint training. The commissioners of human services children, youth, and 
291.26 	families and public safety shall cooperate in the development of developing and maintaining
291.27 	a joint program for training child maltreatment services professionals in the appropriate 
291.28 	techniques for child maltreatment assessment and investigation. The program shall include 
291.29 	but need not be limited to the following areas:
291.30 	(1) the public policy goals of the state as set forth in section 260C.001 and the role of 
291.31 	the assessment or investigation in meeting these goals;
291.32 	(2) the special duties of child protection workers and law enforcement officers under 
291.33 	this chapter;
292.1 	(3) the appropriate methods for directing and managing affiliated professionals who 
292.2 	may be utilized in providing protective services and strengthening family ties;
292.3 	(4) the appropriate methods for interviewing alleged victims of child maltreatment and 
292.4 	other children in the course of performing an assessment or an investigation;
292.5 	(5) the dynamics of child maltreatment within family systems and the appropriate methods 
292.6 	for interviewing parents in the course of the assessment or investigation, including training 
292.7 	in recognizing cases in which one of the parents is a victim of domestic abuse and in need 
292.8 	of special legal or medical services;
292.9 	(6) the legal, evidentiary considerations that may be relevant to the conduct of an 
292.10 	assessment or an investigation;
292.11 	(7) the circumstances under which it is appropriate to remove the alleged offender or 
292.12 	the alleged victim from the home;
292.13 	(8) the protective social services that are available to protect alleged victims from further 
292.14 	maltreatment, to prevent child maltreatment and domestic abuse, and to preserve the family 
292.15 	unit; and training in the preparation of case plans to coordinate services for the alleged child 
292.16 	victim with services for any parents who are victims of domestic abuse;
292.17 	(9) the methods by which child protection workers and law enforcement workers 
292.18 	cooperate in conducting assessments and investigations in order to avoid duplication of 
292.19 	efforts; and
292.20 	(10) appropriate methods for interviewing alleged victims and conducting investigations 
292.21 	in cases where the alleged victim is developmentally, physically, or mentally disabled.

292.22 	Sec. 50. Minnesota Statutes 2022, section 393.07, subdivision 1, is amended to read:
292.23 		Subdivision 1.Public child welfare program. (a) To assist in carrying out the child 
292.24 	protection, delinquency prevention and family assistance responsibilities of the state, the 
292.25 	local social services agency shall administer a program of social services and financial 
292.26 	assistance to be known as the public child welfare program. The public child welfare program 
292.27 	shall be supervised by the commissioner of human services children, youth, and families
292.28 	and administered by the local social services agency in accordance with law and with rules 
292.29 	of the commissioner.
292.30 	(b) The purpose of the public child welfare program is to assure protection for and 
292.31 	financial assistance to children who are confronted with social, physical, or emotional 
293.1 	problems requiring protection and assistance. These problems include, but are not limited 
293.2 	to the following:
293.3 	(1) mental, emotional, or physical disability;
293.4 	(2) birth of a child to a mother who was not married to the child's father when the child 
293.5 	was conceived nor when the child was born, including but not limited to costs of prenatal 
293.6 	care, confinement and other care necessary for the protection of a child born to a mother 
293.7 	who was not married to the child's father at the time of the child's conception nor at the 
293.8 	birth;
293.9 	(3) dependency, neglect;
293.10 	(4) delinquency;
293.11 	(5) abuse or rejection of a child by its parents;
293.12 	(6) absence of a parent or guardian able and willing to provide needed care and 
293.13 	supervision;
293.14 	(7) need of parents for assistance with child rearing problems, or in placing the child in 
293.15 	foster care.
293.16 	(c) A local social services agency shall make the services of its public child welfare 
293.17 	program available as required by law, by the commissioner, or by the courts and shall 
293.18 	cooperate with other agencies, public or private, dealing with the problems of children and 
293.19 	their parents as provided in this subdivision.
293.20 	(d) A local social services agency may rent, lease, or purchase property, or in any other 
293.21 	way approved by the commissioner, contract with individuals or agencies to provide needed 
293.22 	facilities for foster care of children. It may purchase services or child care from duly 
293.23 	authorized individuals, agencies or institutions when in its judgment the needs of a child or 
293.24 	the child's family can best be met in this way.

293.25 	Sec. 51. Minnesota Statutes 2022, section 393.07, subdivision 2, is amended to read:
293.26 		Subd. 2.Administration of public welfare. The local social services agency, subject 
293.27 	to the supervision of the commissioner commissioners of human services and children, 
293.28 	youth, and families, shall administer all forms of public welfare, both for children and adults, 
293.29 	responsibility for which now or hereafter may be imposed on the commissioner
293.30 	commissioners of human services and children, youth, and families by law, including general 
293.31 	assistance, aid to dependent children, county supplementation, if any, or state aid to recipients 
293.32 	of Supplemental Security Income for aged, blind and disabled, child welfare services, mental 
294.1 	health services, and other public assistance or public welfare services, provided that the 
294.2 	local social services agency shall not employ public health nursing or home health service 
294.3 	personnel other than homemaker-home help aides, but shall contract for or purchase the 
294.4 	necessary services from existing community agencies. The duties of the local social services 
294.5 	agency shall be performed in accordance with the standards and rules which may be 
294.6 	promulgated by the commissioner commissioners of human services and children, youth, 
294.7 	and families to achieve the purposes intended by law and in order to comply with the 
294.8 	requirements of the federal Social Security Act in respect to public assistance and child 
294.9 	welfare services, so that the state may qualify for grants-in-aid available under that act. To 
294.10 	avoid administrative penalties under section 256.017, the local social services agency must 
294.11 	comply with (1) policies established by state law and (2) instructions from the commissioner 
294.12 	relating (i) to public assistance program policies consistent with federal law and regulation 
294.13 	and state law and rule and (ii) to local agency program operations. The commissioner may 
294.14 	enforce local social services agency compliance with the instructions, and may delay, 
294.15 	withhold, or deny payment of all or part of the state and federal share of benefits and federal 
294.16 	administrative reimbursement, according to the provisions under section 256.017. The local 
294.17 	social services agency shall supervise wards of the commissioner and, when so designated, 
294.18 	act as agent of the commissioner of human services or children, youth, and families in the 
294.19 	placement of the commissioner's wards in adoptive homes or in other foster care facilities. 
294.20 	The local social services agency shall cooperate as needed when the commissioner of 
294.21 	children, youth, and families contracts with a licensed child placement agency for adoption 
294.22 	services for a child under the commissioner's guardianship of the commissioner of children, 
294.23 	youth, and families. The local social services agency may contract with a bank or other 
294.24 	financial institution to provide services associated with the processing of public assistance 
294.25 	checks and pay a service fee for these services, provided the fee charged does not exceed 
294.26 	the fee charged to other customers of the institution for similar services.

294.27 	Sec. 52. Minnesota Statutes 2022, section 393.07, subdivision 3, is amended to read:
294.28 		Subd. 3.Federal Social Security. The local social services agency shall be charged 
294.29 	with the duties of administration of all forms of public assistance and public child welfare 
294.30 	or other programs within the purview of the federal Social Security Act, other than public 
294.31 	health nursing and home health services, and which now are, or hereafter may be, imposed 
294.32 	on the commissioner commissioners of human services and children, youth, and families 
294.33 	by law, of both children and adults. The duties of such local social services agency shall be 
294.34 	performed in accordance with the standards and rules which may be promulgated by the 
294.35 	commissioner commissioners of human services and children, youth, and families in order 
295.1 	to achieve the purposes of the law and to comply with the requirements of the federal Social 
295.2 	Security Act needed to qualify the state to obtain grants-in-aid available under that act. 
295.3 	Notwithstanding the provisions of any other law to the contrary, the welfare board shall 
295.4 	delegate to the director the authority to determine eligibility and disburse funds without 
295.5 	first securing board action, provided that the director shall present to the board, at the next 
295.6 	scheduled meeting, any such action taken for ratification by the board.

295.7 	Sec. 53. Minnesota Statutes 2022, section 393.07, subdivision 4, is amended to read:
295.8 		Subd. 4.Rules. The commissioner commissioners of human services and children, youth, 
295.9 	and families shall be the authority to adopt and enforce rules concerning the use and 
295.10 	publication of lists of public assistance recipients and governing the custody, use, and 
295.11 	preservation of public assistance, mental health or child welfare records, files, and 
295.12 	communications. The commissioner commissioners of human services and children, youth, 
295.13 	and families shall adopt such rules as may be necessary to comply with the requirements 
295.14 	of the federal Social Security Act; but in any event shall provide for the annual publication 
295.15 	of a summary financial statement giving total expenditures for each of the several programs 
295.16 	of public assistance; and shall make all finance records available for such examinations and 
295.17 	audits as are required by law. No use or publication of the lists, records, files, and 
295.18 	communications herein referred to shall be made until such rules are adopted, and then only 
295.19 	in the manner and form therein provided. All other laws, or parts of laws, now in effect 
295.20 	inconsistent with the provisions of this chapter are hereby repealed, superseded, modified, 
295.21 	or amended so far as necessary to conform to and give full force and effect to the provisions 
295.22 	of this chapter. The provisions of this chapter will not be construed to apply to poor relief 
295.23 	or direct relief given solely in behalf of adult persons.

295.24 	Sec. 54. Minnesota Statutes 2022, section 393.07, subdivision 5, is amended to read:
295.25 		Subd. 5.Compliance with Social Security Act; merit system. The commissioner
295.26 	commissioners of human services and children, youth, and families shall have authority to 
295.27 	require such methods of administration as are necessary for compliance with requirements 
295.28 	of the federal Social Security Act, as amended, and for the proper and efficient operation 
295.29 	of all welfare programs. This authority to require methods of administration includes methods 
295.30 	relating to the establishment and maintenance of personnel standards on a merit basis as 
295.31 	concerns all employees of local social services agencies except those employed in an 
295.32 	institution, sanitarium, or hospital. The commissioner commissioners of human services 
295.33 	and children, youth, and families shall exercise no authority with respect to the selection, 
295.34 	tenure of office, and compensation of any individual employed in accordance with such 
296.1 	methods. The adoption of methods relating to the establishment and maintenance of personnel 
296.2 	standards on a merit basis of all such employees of the local social services agencies and 
296.3 	the examination thereof, and the administration thereof shall be directed and controlled 
296.4 	exclusively by the commissioner commissioners of human services and children, youth, 
296.5 	and families.
296.6 	Notwithstanding the provisions of any other law to the contrary, every employee of 
296.7 	every local social services agency who occupies a position which requires as prerequisite 
296.8 	to eligibility therefor graduation from an accredited four-year college or a certificate of 
296.9 	registration as a registered nurse under section 148.231, must be employed in such position 
296.10 	under the merit system established under authority of this subdivision. Every such employee 
296.11 	now employed by a local social services agency and who is not under said merit system is 
296.12 	transferred, as of January 1, 1962, to a position of comparable classification in the merit 
296.13 	system with the same status therein as the employee had in the county of employment prior 
296.14 	thereto and every such employee shall be subject to and have the benefit of the merit system, 
296.15 	including seniority within the local social services agency, as though the employee had 
296.16 	served thereunder from the date of entry into the service of the local social services agency.

296.17 	Sec. 55. Minnesota Statutes 2022, section 393.07, subdivision 7, is amended to read:
296.18 		Subd. 7.Volunteer programs. In accordance with procedures established by the 
296.19 	commissioner commissioners of human services and children, youth, and families, the local 
296.20 	social services agencies may establish volunteer service programs. Persons who participate 
296.21 	in these programs may be reimbursed for expenses incurred in performing assigned duties. 
296.22 	For purposes of this section, a volunteer worker shall not receive compensation for services 
296.23 	rendered but shall be entitled to workers' compensation coverage as provided for in section 
296.24 	176.011, subdivision 9.

296.25 	Sec. 56. Minnesota Statutes 2022, section 393.07, subdivision 8, is amended to read:
296.26 		Subd. 8.Citizens advisory committee. In accordance with procedures established by 
296.27 	the commissioner commissioners of human services and children, youth, and families, local 
296.28 	social services agencies may appoint citizen advisory committees to consult with the agency 
296.29 	on any of the programs or services administered by the agency. Within the limits of the 
296.30 	appropriation provided, the agency may authorize the reimbursement of committee members 
296.31 	for expenses incurred in the performance of their duties.

297.1 	Sec. 57. Minnesota Statutes 2022, section 393.07, subdivision 10, is amended to read:
297.2 		Subd. 10.SNAP; Maternal and Child Nutrition Act. (a) The local social services 
297.3 	agency shall establish and administer the Supplemental Nutrition Assistance Program 
297.4 	(SNAP) according to rules of the commissioner of human services children, youth, and 
297.5 	families, the supervision of the commissioner as specified in section 256.01, and all federal 
297.6 	laws and regulations. The commissioner of human services children, youth, and families
297.7 	shall monitor SNAP delivery on an ongoing basis to ensure that each county complies with 
297.8 	federal laws and regulations. Program requirements to be monitored include, but are not 
297.9 	limited to, number of applications, number of approvals, number of cases pending, length 
297.10 	of time required to process each application and deliver benefits, number of applicants 
297.11 	eligible for expedited issuance, length of time required to process and deliver expedited 
297.12 	issuance, number of terminations and reasons for terminations, client profiles by age, 
297.13 	household composition and income level and sources, and the use of phone certification 
297.14 	and home visits. The commissioner shall determine the county-by-county and statewide 
297.15 	participation rate.
297.16 	(b) On July 1 of each year, the commissioner of human services children, youth, and 
297.17 	families shall determine a statewide and county-by-county SNAP participation rate. The 
297.18 	commissioner may designate a different agency to administer the SNAP in a county if the 
297.19 	agency administering the program fails to increase the SNAP participation rate among 
297.20 	families or eligible individuals, or comply with all federal laws and regulations governing 
297.21 	the SNAP. The commissioner shall review agency performance annually to determine 
297.22 	compliance with this paragraph.
297.23 	(c) A person who commits any of the following acts has violated section 256.98 or 
297.24 	609.821, or both, and is subject to both the criminal and civil penalties provided under those 
297.25 	sections:
297.26 	(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a 
297.27 	willful statement or misrepresentation, or intentional concealment of a material fact, SNAP 
297.28 	benefits or vouchers issued according to sections 145.891 to 145.897 to which the person 
297.29 	is not entitled or in an amount greater than that to which that person is entitled or which 
297.30 	specify nutritional supplements to which that person is not entitled; or
297.31 	(2) presents or causes to be presented, coupons or vouchers issued according to sections 
297.32 	145.891 to 145.897 for payment or redemption knowing them to have been received, 
297.33 	transferred or used in a manner contrary to existing state or federal law; or
298.1 	(3) willfully uses, possesses, or transfers SNAP benefits, authorization to purchase cards 
298.2 	or vouchers issued according to sections 145.891 to 145.897 in any manner contrary to 
298.3 	existing state or federal law, rules, or regulations; or
298.4 	(4) buys or sells SNAP benefits, authorization to purchase cards, other assistance 
298.5 	transaction devices, vouchers issued according to sections 145.891 to 145.897, or any food 
298.6 	obtained through the redemption of vouchers issued according to sections 145.891 to 145.897
298.7 	for cash or consideration other than eligible food.
298.8 	(d) A peace officer or welfare fraud investigator may confiscate SNAP benefits, 
298.9 	authorization to purchase cards, or other assistance transaction devices found in the 
298.10 	possession of any person who is neither a recipient of SNAP benefits nor otherwise authorized 
298.11 	to possess and use such materials. Confiscated property shall be disposed of as the 
298.12 	commissioner may direct and consistent with state and federal SNAP law. The confiscated 
298.13 	property must be retained for a period of not less than 30 days to allow any affected person 
298.14 	to appeal the confiscation under section 256.045.
298.15 	(e) Establishment of an overpayment is limited to 12 months prior to the month of 
298.16 	discovery due to agency error. Establishment of an overpayment is limited to six years prior 
298.17 	to the month of discovery due to client error or an intentional program violation determined 
298.18 	under section 256.046.
298.19 	(f) With regard to the federal tax revenue offset program only, recovery incentives 
298.20 	authorized by the federal food and consumer service shall be retained at the rate of 50 percent 
298.21 	by the state agency and 50 percent by the certifying county agency.
298.22 	(g) A peace officer, welfare fraud investigator, federal law enforcement official, or the 
298.23 	commissioner of health may confiscate vouchers found in the possession of any person who 
298.24 	is neither issued vouchers under sections 145.891 to 145.897, nor otherwise authorized to 
298.25 	possess and use such vouchers. Confiscated property shall be disposed of as the commissioner 
298.26 	of health may direct and consistent with state and federal law. The confiscated property 
298.27 	must be retained for a period of not less than 30 days.
298.28 	(h) The commissioner of human services children, youth, and families may seek a waiver 
298.29 	from the United States Department of Agriculture to allow the state to specify foods that 
298.30 	may and may not be purchased in Minnesota with benefits funded by the federal 
298.31 	Supplemental Nutrition Assistance Program. The commissioner shall consult with the 
298.32 	members of the house of representatives and senate policy committees having jurisdiction 
298.33 	over SNAP issues in developing the waiver. The commissioner, in consultation with the 
298.34 	commissioners of health and education, shall develop a broad public health policy related 
299.1 	to improved nutrition and health status. The commissioner must seek legislative approval 
299.2 	prior to implementing the waiver.

299.3 	Sec. 58. Minnesota Statutes 2022, section 393.11, subdivision 2, is amended to read:
299.4 		Subd. 2.Paternity, child support. The local social services agency or the commissioner 
299.5 	of human services children, youth, and families may contract with the county attorney for 
299.6 	the provision of legal services to the local social services agency in paternity actions, child 
299.7 	support enforcement and related matters as specified in Title IV-D of the Social Security 
299.8 	Act. The county attorney may contract as to and perform the services and receive 
299.9 	reimbursement therefor as determined by the commissioner. The contract may specify that 
299.10 	the reimbursement shall be in addition to the salary of the county attorney as set by the 
299.11 	county commissioners pursuant to chapter 388.

299.12 	Sec. 59. Minnesota Statutes 2022, section 518A.26, is amended by adding a subdivision 
299.13 	to read:
299.14 		Subd. 5a.Commissioner. "Commissioner" means the commissioner of children, youth, 
299.15 	and families.

299.16 	Sec. 60. Minnesota Statutes 2022, section 518A.60, is amended to read:
299.17 	518A.60 COLLECTION; ARREARS ONLY.
299.18 	(a) Remedies available for the collection and enforcement of support in this chapter and 
299.19 	chapters 142A, 256, 257, 518, and 518C also apply to cases in which the child or children 
299.20 	for whom support is owed are emancipated and the obligor owes past support or has an 
299.21 	accumulated arrearage as of the date of the youngest child's emancipation. Child support 
299.22 	arrearages under this section include arrearages for child support, medical support, child 
299.23 	care, pregnancy and birth expenses, and unreimbursed medical expenses as defined in section 
299.24 	518A.41, subdivision 1, paragraph (h).
299.25 	(b) This section applies retroactively to any support arrearage that accrued on or before 
299.26 	June 3, 1997, and to all arrearages accruing after June 3, 1997.
299.27 	(c) Past support or pregnancy and confinement expenses ordered for which the obligor 
299.28 	has specific court ordered terms for repayment may not be enforced using drivers' and 
299.29 	occupational or professional license suspension and credit bureau reporting, unless the 
299.30 	obligor fails to comply with the terms of the court order for repayment.
300.1 	(d) If an arrearage exists at the time a support order would otherwise terminate and 
300.2 	section 518A.53, subdivision 10, paragraph (c), does not apply to this section, the arrearage 
300.3 	shall be repaid in an amount equal to the current support order until all arrears have been 
300.4 	paid in full, absent a court order to the contrary.
300.5 	(e) If an arrearage exists according to a support order which fails to establish a monthly 
300.6 	support obligation in a specific dollar amount, the public authority, if it provides child 
300.7 	support services, or the obligee, may establish a payment agreement which shall equal what 
300.8 	the obligor would pay for current support after application of section 518A.34, plus an 
300.9 	additional 20 percent of the current support obligation, until all arrears have been paid in 
300.10 	full. If the obligor fails to enter into or comply with a payment agreement, the public 
300.11 	authority, if it provides child support services, or the obligee, may move the district court 
300.12 	or child support magistrate, if section 484.702 applies, for an order establishing repayment 
300.13 	terms.
300.14 	(f) If there is no longer a current support order because all of the children of the order 
300.15 	are emancipated, the public authority may discontinue child support services and close its 
300.16 	case under title IV-D of the Social Security Act if:
300.17 	(1) the arrearage is under $500; or
300.18 	(2) the arrearage is considered unenforceable by the public authority because there have 
300.19 	been no collections for three years, and all administrative and legal remedies have been 
300.20 	attempted or are determined by the public authority to be ineffective because the obligor is 
300.21 	unable to pay, the obligor has no known income or assets, and there is no reasonable prospect 
300.22 	that the obligor will be able to pay in the foreseeable future.
300.23 	(g) At least 60 calendar days before the discontinuation of services under paragraph (f), 
300.24 	the public authority must mail a written notice to the obligee and obligor at the obligee's 
300.25 	and obligor's last known addresses that the public authority intends to close the child support 
300.26 	enforcement case and explaining each party's rights. Seven calendar days after the first 
300.27 	notice is mailed, the public authority must mail a second notice under this paragraph to the 
300.28 	obligee.
300.29 	(h) The case must be kept open if the obligee responds before case closure and provides 
300.30 	information that could reasonably lead to collection of arrears. If the case is closed, the 
300.31 	obligee may later request that the case be reopened by completing a new application for 
300.32 	services, if there is a change in circumstances that could reasonably lead to the collection 
300.33 	of arrears.

301.1 	Sec. 61. Minnesota Statutes 2023 Supplement, section 609A.015, subdivision 1, is amended 
301.2 	to read:
301.3 		Subdivision 1.Eligibility; dismissal; exoneration. (a) A person who is the subject of 
301.4 	a criminal record or delinquency record is eligible for a grant of expungement relief without 
301.5 	the filing of a petition:
301.6 	(1) if the person was arrested and all charges were dismissed after a case was filed unless 
301.7 	dismissal was based on a finding that the defendant was incompetent to proceed;
301.8 	(2) upon the dismissal and discharge of proceedings against a person under section 
301.9 	152.18, subdivision 1, for violation of section 152.024, 152.025, or 152.027 for possession 
301.10 	of a controlled substance; or
301.11 	(3) if all pending actions or proceedings were resolved in favor of the person.
301.12 	(b) For purposes of this chapter, a verdict of not guilty by reason of mental illness is not 
301.13 	a resolution in favor of the person. For purposes of this chapter, an action or proceeding is 
301.14 	resolved in favor of the person if the petitioner received an order under section 590.11 
301.15 	determining that the person is eligible for compensation based on exoneration.
301.16 	(c) The service requirements in section 609A.03, subdivision 8, do not apply to any 
301.17 	expungements ordered under this subdivision.
301.18 	(d) An expungement order does not apply to records held by the commissioners of 
301.19 	children, youth, and families; health; and human services.

301.20 	Sec. 62. Minnesota Statutes 2023 Supplement, section 609A.015, subdivision 2, is amended 
301.21 	to read:
301.22 		Subd. 2.Eligibility; diversion and stay of adjudication. (a) A person is eligible for a 
301.23 	grant of expungement relief if the person has successfully completed the terms of a diversion 
301.24 	program or stay of adjudication for a qualifying offense that is not a felony and has not been 
301.25 	petitioned or charged with a new offense, other than an offense that would be a petty 
301.26 	misdemeanor, in Minnesota:
301.27 	(1) for one year immediately following completion of the diversion program or stay of 
301.28 	adjudication; or
301.29 	(2) for one year immediately preceding a subsequent review performed pursuant to 
301.30 	subdivision 5, paragraph (a).
301.31 	(b) The service requirements in section 609A.03, subdivision 8, do not apply to any 
301.32 	expungements ordered under this subdivision.
302.1 	(c) An expungement order does not apply to records held by the commissioners of 
302.2 	children, youth, and families; health; and human services.

302.3 	Sec. 63. Minnesota Statutes 2023 Supplement, section 609A.015, subdivision 3, is amended 
302.4 	to read:
302.5 		Subd. 3.Eligibility; certain criminal proceedings. (a) A person is eligible for a grant 
302.6 	of expungement relief if the person:
302.7 	(1) was convicted of a qualifying offense;
302.8 	(2) has not been convicted of a new offense, other than an offense that would be a petty 
302.9 	misdemeanor, in Minnesota:
302.10 	(i) during the applicable waiting period immediately following discharge of the disposition 
302.11 	or sentence for the crime; or
302.12 	(ii) during the applicable waiting period immediately preceding a subsequent review 
302.13 	performed pursuant to subdivision 5, paragraph (a); and
302.14 	(3) is not charged with an offense, other than an offense that would be a petty 
302.15 	misdemeanor, in Minnesota at the time the person reaches the end of the applicable waiting 
302.16 	period or at the time of a subsequent review.
302.17 	(b) As used in this subdivision, "qualifying offense" means a conviction for:
302.18 	(1) any petty misdemeanor offense other than a violation of a traffic regulation relating 
302.19 	to the operation or parking of motor vehicles;
302.20 	(2) any misdemeanor offense other than:
302.21 	(i) section 169A.20 under the terms described in section 169A.27 (fourth-degree driving 
302.22 	while impaired);
302.23 	(ii) section 518B.01, subdivision 14 (violation of an order for protection);
302.24 	(iii) section 609.224 (assault in the fifth degree);
302.25 	(iv) section 609.2242 (domestic assault);
302.26 	(v) section 609.746 (interference with privacy);
302.27 	(vi) section 609.748 (violation of a harassment restraining order);
302.28 	(vii) section 609.78 (interference with emergency call);
302.29 	(viii) section 609.79 (obscene or harassing phone calls);
303.1 	(ix) section 617.23 (indecent exposure); or
303.2 	(x) section 629.75 (violation of domestic abuse no contact order);
303.3 	(3) any gross misdemeanor offense other than:
303.4 	(i) section 169A.25 (second-degree driving while impaired);
303.5 	(ii) section 169A.26 (third-degree driving while impaired);
303.6 	(iii) section 518B.01, subdivision 14 (violation of an order for protection);
303.7 	(iv) section 609.2113, subdivision 3 (criminal vehicular operation);
303.8 	(v) section 609.2231 (assault in the fourth degree);
303.9 	(vi) section 609.224 (assault in the fifth degree);
303.10 	(vii) section 609.2242 (domestic assault);
303.11 	(viii) section 609.233 (criminal neglect);
303.12 	(ix) section 609.3451 (criminal sexual conduct in the fifth degree);
303.13 	(x) section 609.377 (malicious punishment of child);
303.14 	(xi) section 609.485 (escape from custody);
303.15 	(xii) section 609.498 (tampering with witness);
303.16 	(xiii) section 609.582, subdivision 4 (burglary in the fourth degree);
303.17 	(xiv) section 609.746 (interference with privacy);
303.18 	(xv) section 609.748 (violation of a harassment restraining order);
303.19 	(xvi) section 609.749 (harassment; stalking);
303.20 	(xvii) section 609.78 (interference with emergency call);
303.21 	(xviii) section 617.23 (indecent exposure);
303.22 	(xix) section 617.261 (nonconsensual dissemination of private sexual images); or
303.23 	(xx) section 629.75 (violation of domestic abuse no contact order); or
303.24 	(4) any felony offense listed in section 609A.02, subdivision 3, paragraph (b), other 
303.25 	than:
303.26 	(i) section 152.023, subdivision 2 (possession of a controlled substance in the third 
303.27 	degree);
303.28 	(ii) 152.024, subdivision 2 (possession of a controlled substance in the fourth degree);
304.1 	(iii) section 609.485, subdivision 4, paragraph (a), clause (2) or (4) (escape from civil 
304.2 	commitment for mental illness); or
304.3 	(iv) section 609.746, subdivision 1, paragraph (e) (interference with privacy; subsequent 
304.4 	violation or minor victim).
304.5 	(c) As used in this subdivision, "applicable waiting period" means:
304.6 	(1) if the offense was a petty misdemeanor, two years since discharge of the sentence;
304.7 	(2) if the offense was a misdemeanor, two years since discharge of the sentence for the 
304.8 	crime;
304.9 	(3) if the offense was a gross misdemeanor, three years since discharge of the sentence 
304.10 	for the crime;
304.11 	(4) if the offense was a felony violation of section 152.025, four years since the discharge 
304.12 	of the sentence for the crime; and
304.13 	(5) if the offense was any other felony, five years since discharge of the sentence for the 
304.14 	crime.
304.15 	(d) Felony offenses deemed to be a gross misdemeanor or misdemeanor pursuant to 
304.16 	section 609.13, subdivision 1, remain ineligible for expungement under this section. Gross 
304.17 	misdemeanor offenses ineligible for a grant of expungement under this section remain 
304.18 	ineligible if deemed to be for a misdemeanor pursuant to section 609.13, subdivision 2.
304.19 	(e) The service requirements in section 609A.03, subdivision 8, do not apply to any 
304.20 	expungements ordered under this subdivision.
304.21 	(f) An expungement order does not apply to records held by the commissioners of 
304.22 	children, youth, and families; health; and human services.

304.23 	Sec. 64. Minnesota Statutes 2023 Supplement, section 609A.06, subdivision 7, is amended 
304.24 	to read:
304.25 		Subd. 7.Review and determination. (a) The Cannabis Expungement Board shall review 
304.26 	all available records to determine whether the conviction or stay of adjudication is eligible 
304.27 	for an expungement or resentencing to a lesser offense. An expungement under this section 
304.28 	is presumed to be in the public interest unless there is clear and convincing evidence that 
304.29 	an expungement or resentencing to a lesser offense would create a risk to public safety.
305.1 	(b) If the Cannabis Expungement Board determines that an expungement is in the public 
305.2 	interest, the board shall determine whether a person's conviction should be vacated and 
305.3 	charges should be dismissed.
305.4 	(c) If the Cannabis Expungement Board determines that an expungement is in the public 
305.5 	interest, the board shall determine whether the limitations under section 609A.03, subdivision 
305.6 	5a, apply.
305.7 	(d) If the Cannabis Expungement Board determines that an expungement is in the public 
305.8 	interest, the board shall determine whether the limitations under section 609A.03, subdivision 
305.9 	7a, paragraph (b), clause (5), apply.
305.10 	(e) If the Cannabis Expungement Board determines that an expungement is not in the 
305.11 	public interest, the board shall determine whether the person is eligible for resentencing to 
305.12 	a lesser offense.
305.13 	(f) In making a determination under this subdivision, the Cannabis Expungement Board 
305.14 	shall consider:
305.15 	(1) the nature and severity of the underlying crime, including but not limited to the total 
305.16 	amount of marijuana or tetrahydrocannabinols possessed by the person and whether the 
305.17 	offense involved a dangerous weapon, the intentional infliction of bodily harm on another, 
305.18 	an attempt to inflict bodily harm on another, or an act committed with the intent to cause 
305.19 	fear in another of immediate bodily harm or death;
305.20 	(2) whether an expungement or resentencing the person a lesser offense would increase 
305.21 	the risk, if any, the person poses to other individuals or society;
305.22 	(3) if the person is under sentence, whether an expungement or resentencing to a lesser 
305.23 	offense would result in the release of the person and whether release earlier than the date 
305.24 	that the person would be released under the sentence currently being served would present 
305.25 	a danger to the public or would be compatible with the welfare of society;
305.26 	(4) aggravating or mitigating factors relating to the underlying crime, including the 
305.27 	person's level of participation and the context and circumstances of the underlying crime;
305.28 	(5) statements from victims and law enforcement, if any;
305.29 	(6) if an expungement or resentencing the person to a lesser offense is considered, 
305.30 	whether there is good cause to restore the person's right to possess firearms and ammunition;
306.1 	(7) if an expungement is considered, whether an expunged record of a conviction or stay 
306.2 	of adjudication may be opened for purposes of a background check required under section 
306.3 	122A.18, subdivision 8; and
306.4 	(8) other factors deemed relevant by the Cannabis Expungement Board.
306.5 	(g) In making a determination under this subdivision, the Cannabis Expungement Board 
306.6 	shall not consider the impact the expungement would have on the offender based on any 
306.7 	records held by the Department of Health; Department of Children, Youth, and Families;
306.8 	or Department of Human Services.
306.9 	(h) The affirmative vote of three members is required for action taken at any meeting.

306.10 	Sec. 65. Minnesota Statutes 2023 Supplement, section 609A.06, subdivision 12, is amended 
306.11 	to read:
306.12 		Subd. 12.Order of expungement. (a) Upon receiving notice that an offense qualifies 
306.13 	for expungement, the court shall issue an order sealing all records relating to an arrest, 
306.14 	indictment or information, trial, verdict, or dismissal and discharge for an offense described 
306.15 	in subdivision 3. The courts shall not order the Department of Health; the Department of 
306.16 	Children, Youth, and Families; or the Department of Human Services to seal records under 
306.17 	this section. If the Cannabis Expungement Board determined that the person's conviction 
306.18 	should be vacated and charges should be dismissed, the order shall vacate and dismiss the 
306.19 	charges.
306.20 	(b) If the Cannabis Expungement Board determined that there is good cause to restore 
306.21 	the person's right to possess firearms and ammunition, the court shall issue an order pursuant 
306.22 	to section 609.165, subdivision 1d.
306.23 	(c) If the Cannabis Expungement Board determined that an expunged record of a 
306.24 	conviction or stay of adjudication may not be opened for purposes of a background check 
306.25 	required under section 122A.18, subdivision 8, the court shall direct the order specifically 
306.26 	to the Professional Educator Licensing and Standards Board.
306.27 	(d) The court administrator shall send a copy of an expungement order issued under this 
306.28 	section to each agency and jurisdiction whose records are affected by the terms of the order 
306.29 	and send a letter to the last known address of the person whose offense has been expunged 
306.30 	identifying each agency to which the order was sent.
306.31 	(e) In consultation with the commissioner of human services, the court shall establish a 
306.32 	schedule on which it shall provide the commissioner of human services a list identifying 
307.1 	the name and court file number or, if no court file number is available, the citation number 
307.2 	of each record for a person who received an expungement under this section.
307.3 	(f) Data on the person whose offense has been expunged in a letter sent under this 
307.4 	subdivision are private data on individuals as defined in section 13.02, subdivision 12.

307.5 	Sec. 66. Minnesota Statutes 2022, section 631.40, subdivision 3, is amended to read:
307.6 		Subd. 3.Departments of Human Services; Children, Youth, and Families; and 
307.7 	Health licensees. When a person who is affiliated with a program or facility governed by 
307.8 	the Department of Human Services, Department of Children, Youth, and Families, or 
307.9 	Department of Health is convicted of a disqualifying crime, the probation officer or 
307.10 	corrections agent shall notify the commissioner of the conviction, as provided in chapter 
307.11 	245C.

307.12 	Sec. 67. EXECUTIVE AGENCIES' PRINTED AND ONLINE MATERIALS AND 
307.13 	INFORMATION TECHNOLOGY SYSTEMS.
 307.14 	(a) Executive agencies are not required to immediately replace existing printed material 
307.15 	only to reflect changed statute numbers in this act and may do so when current printed 
307.16 	material is replaced and new printed material is obtained in the normal course of business.
307.17 	(b) Executive agencies are not required to immediately edit online cross-references only 
307.18 	to reflect changed statute numbers in this act and may do so when online documents, 
307.19 	information technology systems, and websites are edited in the normal course of business.

307.20 	Sec. 68. REVISOR INSTRUCTION.
 307.21 	(a) The revisor of statutes must renumber sections or subdivisions in column A as column 
307.22 	B.

307.23		Column A
	Column B
	
307.24		256.741
	518A.81
	
307.25		256.87
	518A.82
	
307.26		256.978
	518A.83
	
307.27		256.979
	518A.84
	
307.28		256E.12
	256K.10
	
307.29 	(b) The revisor of statutes must correct any statutory cross-references consistent with 
307.30 	this renumbering.

308.1 	Sec. 69. REVISOR INSTRUCTION.
 308.2 	The revisor of statutes shall make necessary cross-reference changes and remove statutory 
308.3 	cross-references in Minnesota Statutes to conform with this act and Laws 2023, chapter 70, 
308.4 	article 12. The revisor may make technical and other necessary changes to sentence structure 
308.5 	to preserve the meaning of the text. The revisor may alter the statutory coding in this act to 
308.6 	incorporate statutory changes made by other law in the 2024 regular legislative session. If 
308.7 	a provision repealed in this act is also amended in the 2024 regular legislative session by 
308.8 	other law, the revisor shall merge the amendment into the recodification, notwithstanding 
308.9 	Minnesota Statutes, section 645.30. The revisor of statutes must consult with executive 
308.10 	branch agencies that would be affected by the changes when making changes pursuant to 
308.11 	this section.

308.12 	Sec. 70. REVISOR INSTRUCTION.
 308.13 	The revisor of statutes shall change "the commissioner of human services" to "the 
308.14 	commissioner of children, youth, and families" and change "the Department of Human 
308.15 	Services" to "the Department of Children, Youth, and Families" as necessary to reflect the 
308.16 	changes in this act and Laws 2023, chapter 70, article 12. The revisor shall also make other 
308.17 	technical changes resulting from the change of term to the statutory language, sentence 
308.18 	structure, or both, if necessary to preserve the meaning of the text. The revisor of statutes 
308.19 	must consult with executive branch agencies that would be affected by the changes when 
308.20 	making changes pursuant to this section. If any potential commissioner changes identified 
308.21 	reflect policy changes not yet addressed in this act or Laws 2023, chapter 70, article 12, the 
308.22 	revisor of statutes shall notify the commissioners of human services and children, youth, 
308.23 	and families so that the change may be addressed in the 2025 legislative session.

308.24 	Sec. 71. REPEALER.
 308.25 	Minnesota Statutes 2022, section 256.741, subdivision 3, is repealed.

308.26 	Sec. 72. EFFECTIVE DATE; TRANSFER OF RESPONSIBILITIES.
 308.27 	(a) This act is effective July 1, 2024.
308.28 	(b) Notwithstanding paragraph (a), the powers and responsibilities transferred under this 
308.29 	act are effective upon notice of the commissioner of children, youth, and families to the 
308.30 	commissioners of administration, management and budget, and other relevant departments 
308.31 	along with the secretary of the senate, the chief clerk of the house of representatives, and 
309.1 	the chairs and ranking minority members of relevant legislative committees and divisions, 
309.2 	pursuant to Laws 2023, chapter 70, article 12, section 30, subdivision 1.
309.3 	(c) By August 1, 2025, the commissioners of human services and children, youth, and 
309.4 	families shall notify the chairs and ranking minority members of relevant legislative 
309.5 	committees and divisions and the revisor of statutes of any sections of this act or programs 
309.6 	to be transferred that are waiting for federal approval to become effective pursuant to Laws 
309.7 	2023, chapter 70, article 12, section 30, subdivision 1, paragraph (b).

APPENDIX 

Repealed Minnesota Statutes: S3770-2 

245A.04 APPLICATION PROCEDURES.Subd. 17.Plain-language handbook. 
By January 1, 2020, the commissioner of human services shall, following consultation with family child care license holders, parents, and county agencies, develop a plain-language handbook that describes the process and requirements to become a licensed family child care provider. The handbook shall include a list of the applicable statutory provisions and rules that apply to licensed family child care providers. The commissioner shall electronically publish the handbook on the Department of Human Services website, available at no charge to the public. Each county human services office and the Department of Human Services shall maintain physical copies of the handbook for public use. 

245A.09 RULES.Subd. 10.Rulemaking process; commissioner exempted. 
When developing, making, adopting, and issuing interpretive guidelines under the authority granted under subdivision 8, the commissioner is exempt from the rulemaking provisions of chapter 14 until July 1, 1998. 

245A.18 CHILD PASSENGER RESTRAINT SYSTEMS.Subd. 2.Child passenger restraint systems; training requirement. 
(a) Programs licensed by the Department of Human Services under this chapter and Minnesota Rules, chapter 2960, that serve a child or children under eight years of age must document training that fulfills the requirements in this subdivision. 

(b) Before a license holder, staff person, or caregiver transports a child or children under age eight in a motor vehicle, the person transporting the child must satisfactorily complete training on the proper use and installation of child restraint systems in motor vehicles. Training completed under this section may be used to meet initial or ongoing training under Minnesota Rules, part 2960.3070, subparts 1 and 2. 

(c) Training required under this section must be completed at orientation or initial training and repeated at least once every five years. At a minimum, the training must address the proper use of child restraint systems based on the child's size, weight, and age, and the proper installation of a car seat or booster seat in the motor vehicle used by the license holder to transport the child or children. 

(d) Training under paragraph (c) must be provided by individuals who are certified and approved by the Office of Traffic Safety within the Department of Public Safety. License holders may obtain a list of certified and approved trainers through the Department of Public Safety website or by contacting the agency. 

(e) Notwithstanding paragraph (a), for an emergency relative placement under section 245A.035, the commissioner may grant a variance to the training required by this subdivision for a relative who completes a child seat safety check up. The child seat safety check up trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and must provide one-on-one instruction on placing a child of a specific age in the exact child passenger restraint in the motor vehicle in which the child will be transported. Once granted a variance, and if all other licensing requirements are met, the relative applicant may receive a license and may transport a relative foster child younger than eight years of age. A child seat safety check up must be completed each time a child requires a different size car seat according to car seat and vehicle manufacturer guidelines. A relative license holder must complete training that meets the other requirements of this subdivision prior to placement of another foster child younger than eight years of age in the home or prior to the renewal of the child foster care license. 

245H.12 FEES.
The commissioner shall consult with stakeholders to develop an administrative fee to implement this chapter. By February 15, 2019, the commissioner shall provide recommendations on the amount of an administrative fee to the legislative committees with jurisdiction over health and human services policy and finance. 

256.01 COMMISSIONER OF HUMAN SERVICES; POWERS, DUTIES.Subd. 30.Donated funds from private postsecondary institutions. 
The commissioner may accept, on behalf of the state, funds donated from private postsecondary institutions, as the state's share in claiming federal Title IV-E reimbursement, to support the Child Welfare State/University Partnership, consistent with Code of Federal Regulations, title 45, chapter 235, section 235.66, Sources of State Funds, if the funds: 

(1) are transferred to the state and under the state's administrative control; 

(2) are donated with no restriction that the funds be used for the training of a particular individual or at a particular facility or institution; and 

(3) do not revert to the donor's facility or use. 

256.741 CHILD SUPPORT AND MAINTENANCE.Subd. 3.Existing assignments. 
Assignments based on the receipt of public assistance in existence prior to July 1, 1997, are permanently assigned to the state. Arrears that accrued prior to the receipt of assistance that were assigned to the state between July 1, 1997, and October 1, 2009, must no longer be assigned as of October 1, 2009. 

256.9831 BENEFITS; GAMBLING ESTABLISHMENTS.Subd. 2.Financial transaction cards. 
The commissioner shall take all actions necessary to ensure that no person may obtain benefits under chapter 256, 256D, or 256J through the use of a financial transaction card, as defined in section 609.821, subdivision 1, paragraph (a), at a terminal located in or attached to a gambling establishment, liquor store, tobacco store, or tattoo parlor. 

Subd. 3.Warrants. 
The commissioner shall take all actions necessary to ensure that warrants issued to pay benefits under chapter 256 or 256D bear a restrictive endorsement that prevents their being cashed in a gambling establishment. 

256J.01 ESTABLISHING MINNESOTA FAMILY INVESTMENT PROGRAM.Subd. 5.Compliance system. 
The commissioner shall administer a compliance system for the state's temporary assistance for needy families (TANF) program, the SNAP, general assistance, medical assistance, emergency general assistance, Minnesota supplemental aid, preadmission screening, child support program, and alternative care grants under the powers and authorities named in section 256.01, subdivision 2. The purpose of the compliance system is to permit the commissioner to supervise the administration of public assistance programs and to enforce timely and accurate distribution of benefits, completeness of service and efficient and effective program management and operations, to increase uniformity and consistency in the administration and delivery of public assistance programs throughout the state, and to reduce the possibility of sanction and fiscal disallowances for noncompliance with federal regulations and state statutes. 

256J.78 TANF DEMONSTRATION PROJECTS OR WAIVER FROM FEDERAL RULES AND REGULATIONS.Subd. 3.Report to legislature. 
The commissioner shall report to the members of the legislative committees having jurisdiction over human services issues by March 1, 2014, regarding the progress of this waiver or demonstration project.