HF 4525
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/23/2026 03:22 p.m.
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A bill for an act
relating to human services; modifying human services background studies and
variances; aligning data and language for licensing laws; clarifying human services
licensing procedures; adding program integrity provisions; amending Minnesota
Statutes 2024, sections 13A.03, by adding a subdivision; 245.095, subdivisions 2,
5; 245A.02, subdivision 13; 245A.043, subdivision 2; 245A.07, subdivision 2a;
245C.02, subdivision 18; 245C.03, subdivision 1; 245C.04, subdivision 1; 245C.15,
subdivisions 2, 3, 4; 245C.24, subdivision 2; 245D.04, subdivision 3; 245D.10,
subdivision 4; 256B.02, by adding a subdivision; 256B.04, subdivision 10;
256B.064, subdivision 2; 256B.27, subdivision 3; Minnesota Statutes 2025
Supplement, sections 245A.03, subdivision 2; 245A.043, subdivision 2a; 245A.07,
subdivision 3; 245A.10, subdivision 4; 245A.142, subdivision 3; 245A.242,
subdivision 2; 245C.07; 245C.13, subdivision 2; 245C.15, subdivision 4a; 245C.22,
subdivision 5; 260E.03, subdivision 6; 260E.11, subdivision 1; 260E.14, subdivision
1; 626.5572, subdivision 13; repealing Minnesota Statutes 2024, section 245A.02,
subdivision 10b; Minnesota Statutes 2025 Supplement, section 245A.10,
subdivision 3a; Minnesota Rules, part 9505.2165, subpart 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 13A.03, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Exception. new text end
new text begin
Law enforcement may delay notification under section 13A.02,
subdivision 3, or authorize another government authority to delay notification to a customer
without a court order if law enforcement determines in writing that notification would
compromise the integrity of a current and ongoing criminal investigation. The written
determination from law enforcement must be renewed every 90 days.
new text end
Sec. 2.
Minnesota Statutes 2024, section 245.095, subdivision 2, is amended to read:
Subd. 2.
Definitions.
(a) For purposes of this section, the following definitions have the
meanings given.
(b) "Associated entity" means a provider or vendor owned or controlled by an excluded
individual.
(c) "Associated individual" means an individual or entity that has a relationship with
the business or its owners or controlling individuals, such that the individual or entity would
have knowledge of the financial practices of the program in question.
new text begin
(d) "Convicted" means a judgment of conviction has been entered by a federal, state, or
local court, regardless of whether an appeal from the judgment is pending, and includes a
stay of adjudication, a court-ordered diversion program, or a plea of guilty or nolo contendere.
new text end
new text begin
(e) "Credible allegation of fraud" means an allegation that has been verified by the
commissioner from any source, including but not limited to:
new text end
new text begin
(1) fraud hotline complaints;
new text end
new text begin
(2) claims data mining;
new text end
new text begin
(3) patterns identified through provider audits, civil false claims cases, and law
enforcement investigations; and
new text end
new text begin
(4) court filings and other legal documents, including but not limited to police reports,
complaints, indictments, informations, affidavits, declarations, and search warrants.
new text end
deleted text begin (d)deleted text end new text begin (f)new text end "Excluded" means removed under other authorities from a program administered
by a Minnesota state or federal agencydeleted text begin , includingdeleted text end new text begin . Excluded includes but is not limited to:
new text end
new text begin (1)new text end a final determination to stop paymentsdeleted text begin .deleted text end new text begin ;
new text end
new text begin
(2) a conclusive background study disqualification, except for a disqualification issued
under section 245C.15, subdivision 4c, that has not been set aside or had a variance granted
under section 245C.15; and
new text end
new text begin
(3) a final agency decision regarding a denial of a license application.
new text end
new text begin
(g) "Fraud" has the meaning given in section 256B.02, subdivision 20.
new text end
deleted text begin (e)deleted text end new text begin (h)new text end "Individual" means a natural person providing products or services as a provider
or vendor.
deleted text begin (f)deleted text end new text begin (i)new text end "Provider" means any entity, individual, owner, controlling individual, license
holder, director, or managerial official of an entity receiving payment from a program
administered by a Minnesota state or federal agency.
Sec. 3.
Minnesota Statutes 2024, section 245.095, subdivision 5, is amended to read:
Subd. 5.
Withholding of payments.
(a) Except as otherwise provided by state or federal
law, the commissioner may withhold payments to a provider, vendor, individual, associated
individual, or associated entity in any program administered by the commissioner if the
commissioner determinesnew text begin :
new text end
new text begin (1)new text end there is a credible allegation of fraud for which an investigation is pending for a
program administered by a Minnesota state or federal agencydeleted text begin .deleted text end new text begin ;
new text end
new text begin
(2) the individual, the entity, or an associated individual or entity was convicted of a
crime, in state or federal court, for an offense that involves fraud or theft against a program
administered by the commissioner or another state or federal agency;
new text end
new text begin
(3) the provider is operating after a state or federal agency orders the suspension,
revocation, or decertification of the provider's license or certification, or if the provider is
subject to a temporary immediate suspension, regardless of whether the action is under
appeal; or
new text end
new text begin
(4) the provider, vendor, individual, associated individual, or associated entity, including
those receiving funds under any contract or registered program, has a background study
disqualification under section 245C.15, subdivisions 1 to 4b, that has not been set aside and
for which no variance has been issued.
new text end
deleted text begin
(b) For purposes of this subdivision, "credible allegation of fraud" means an allegation
that has been verified by the commissioner from any source, including but not limited to:
deleted text end
deleted text begin
(1) fraud hotline complaints;
deleted text end
deleted text begin
(2) claims data mining;
deleted text end
deleted text begin
(3) patterns identified through provider audits, civil false claims cases, and law
enforcement investigations; and
deleted text end
deleted text begin
(4) court filings and other legal documents, including but not limited to police reports,
complaints, indictments, informations, affidavits, declarations, and search warrants.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end The commissioner must send notice of the withholding of payments within five
days of taking such action. The notice must:
(1) state that payments are being withheld according to this subdivision;
(2) set forth the general allegations related to the withholding action, except the notice
need not disclose specific information concerning an ongoing investigation;
(3) state that the withholding is for a temporary period and cite the circumstances under
which the withholding will be terminated; and
(4) inform the provider, vendor, individual, associated individual, or associated entity
of the right to submit written evidence to contest the withholding action for consideration
by the commissioner.
deleted text begin (d)deleted text end new text begin (c)new text end If the commissioner withholds payments under this subdivision, the provider,
vendor, individual, associated individual, or associated entity has a right to request
administrative reconsideration. A request for administrative reconsideration must be made
in writing, state with specificity the reasons the payment withholding decision is in error,
and include documents to support the request. Within 60 days from receipt of the request,
the commissioner shall judiciously review allegations, facts, evidence available to the
commissioner, and information submitted by the provider, vendor, individual, associated
individual, or associated entity to determine whether the payment withholding should remain
in place.
deleted text begin (e)deleted text end new text begin (d)new text end The commissioner shall stop withholding payments if the commissioner determines
there is insufficient evidence of fraud by the provider, vendor, individual, associated
individual, or associated entity or when legal proceedings relating to the alleged fraud are
completed, unless the commissioner has sent notice under subdivision 3 to the provider,
vendor, individual, associated individual, or associated entity.
deleted text begin (f)deleted text end new text begin (e)new text end The withholding of payments new text begin under this section new text end is a temporary action and is not
subject to appeal under section 256.045 or chapter 14.
new text begin
(f) Section 15.013 does not apply to the commissioner taking action under this section.
new text end
Sec. 4.
Minnesota Statutes 2024, section 245A.02, subdivision 13, is amended to read:
Subd. 13.
Individual who is related.
"Individual who is related" means a spouse, a
parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece,
a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle, new text begin a cousin, new text end or a legal
guardiannew text begin , including an individual who has a relationship named in this subdivision through
marriagenew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
Sec. 5.
Minnesota Statutes 2025 Supplement, section 245A.03, subdivision 2, is amended
to read:
Subd. 2.
Exclusion from licensure.
(a) This chapter does not apply to:
(1) residential or nonresidential programs that are provided to a person by an individual
who is related;
(2) nonresidential programs that are provided by an unrelated individual to persons from
a single related family;
(3) residential or nonresidential programs that are provided to adults who do not misuse
substances or have a substance use disorder, a mental illness, a developmental disability, a
functional impairment, or a physical disability;
(4) sheltered workshops or work activity programs that are certified by the commissioner
of employment and economic development;
(5) programs operated by a public school for children 33 months or older;
(6) nonresidential programs primarily for children that provide care or supervision for
periods of less than three hours a day while the child's parent or legal guardian is in the
same building as the nonresidential program or present within another building that is
directly contiguous to the building in which the nonresidential program is located;
(7) nursing homes or hospitals licensed by the commissioner of health except as specified
under section 245A.02;
(8) board and lodge facilities licensed by the commissioner of health that do not provide
children's residential services under Minnesota Rules, chapter 2960, mental health or
substance use disorder treatment;
(9) programs licensed by the commissioner of corrections;
(10) recreation programs for children or adults that are operated or approved by a park
and recreation board whose primary purpose is to provide social and recreational activities;
(11) noncertified boarding care homes unless they provide services for five or more
persons whose primary diagnosis is mental illness or a developmental disability;
(12) programs for children such as scouting, boys clubs, girls clubs, and sports and art
programs, and nonresidential programs for children provided for a cumulative total of less
than 30 days in any 12-month period;
(13) residential programs for persons with mental illness, that are located in hospitals;
(14) camps licensed by the commissioner of health under Minnesota Rules, chapter
4630;
(15) mental health outpatient services for adults with mental illness or children with
mental illness;
(16) residential programs serving school-age children whose sole purpose is cultural or
educational exchange, until the commissioner adopts appropriate rules;
(17) community support services programs as defined in section 245.462, subdivision
6, and family community support services as defined in section 245.4871, subdivision 17;
(18) assisted living facilities licensed by the commissioner of health under chapter 144G;
(19) substance use disorder treatment activities of licensed professionals in private
practice as defined in section 245G.01, subdivision 17;
(20) consumer-directed community support service funded under the Medicaid waiver
for persons with developmental disabilities when the individual who provided the service
is:
(i) the same individual who is the direct payee of these specific waiver funds or paid by
a fiscal agent, fiscal intermediary, or employer of record; and
(ii) not otherwise under the control of a residential or nonresidential program that is
required to be licensed under this chapter when providing the service;
(21) a county that is an eligible vendor under section 254B.0501 to provide care
coordination and comprehensive assessment services;
(22) a recovery community organization that is an eligible vendor under section
254B.0501 to provide peer recovery support services; or
(23) programs licensed by the commissioner of children, youth, and families in chapter
142B.
(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a
building in which a nonresidential program is located if it shares a common wall with the
building in which the nonresidential program is located or is attached to that building by
skyway, tunnel, atrium, or common roof.
(c) Except for the home and community-based services identified in section 245D.03,
subdivision 1, nothing in this chapter shall be construed to require licensure for any services
provided and funded according to an approved federal waiver plan where licensure is
specifically identified as not being a condition for the services and funding.
new text begin
(d) Notwithstanding section 245A.02, subdivision 13, programs initially licensed prior
to July 1, 2026, may continue to operate under the definition of related individual in
Minnesota Statutes 2024, section 245A.02, subdivision 13, until the service recipient related
to the license holder by marriage or as a cousin is no longer receiving services licensed
under this chapter.
new text end
Sec. 6.
Minnesota Statutes 2024, section 245A.043, subdivision 2, is amended to read:
Subd. 2.
Change in ownership.
deleted text begin (a)deleted text end If the commissioner determines that there is a change
in ownership, the commissioner shall require submission of a new license application. This
subdivision does not apply to a licensed program or service located in a home where the
license holder resides. A change in ownership occurs when:
(1) deleted text begin except as provided in paragraph (b),deleted text end the license holder sells or transfers 100 percent
of the property, stock, or assets;
(2) the license holder merges with another organization;
(3) the license holder consolidates with two or more organizations, resulting in the
creation of a new organization;
(4) there is a change to the federal tax identification number associated with the license
holder; or
(5) deleted text begin except as provided in paragraph (b),deleted text end all controlling individuals for the original license
have changed.
deleted text begin
(b) For changes under paragraph (a), clause (1) or (5), no change in ownership has
occurred and a new license application is not required if at least one controlling individual
has been affiliated as a controlling individual for the license for at least the previous 12
months immediately preceding the change.
deleted text end
Sec. 7.
Minnesota Statutes 2025 Supplement, section 245A.043, subdivision 2a, is amended
to read:
Subd. 2a.
Review of change in ownership.
deleted text begin (a)deleted text end After a change in ownership under
subdivision 2, deleted text begin paragraph (a),deleted text end the commissioner may complete a review for all new license
holders within 12 months after the new license is issued.
deleted text begin
(b) For all license holders subject to the exception in subdivision 2, paragraph (b), the
license holder must notify the commissioner of the date of the change in controlling
individuals pursuant to section 245A.04, subdivision 7a, and the commissioner may complete
a review within 12 months following the change.
deleted text end
Sec. 8.
Minnesota Statutes 2024, section 245A.07, subdivision 2a, is amended to read:
Subd. 2a.
Immediate suspension expedited hearing.
(a) Within five working days of
receipt of the license holder's timely appeal, the commissioner shall request assignment of
an administrative law judge. The request must include a proposed date, time, and place of
a hearing. A hearing must be conducted by an administrative law judge within 30 calendar
days of the request for assignment, unless an extension is requested by either party and
granted by the administrative law judge for good cause. The commissioner shall issue a
notice of hearing by certified mail or personal service at least ten working days before the
hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary
immediate suspension should remain in effect pending the commissioner's final order under
section 245A.08, regarding a licensing sanction issued under subdivision 3 following the
immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the
burden of proof in expedited hearings under this subdivision deleted text begin shall be limited todeleted text end new text begin is met only
ifnew text end the deleted text begin commissioner's demonstrationdeleted text end new text begin commissioner demonstratesnew text end that reasonable cause exists
to believe that the license holder's new text begin or controlling individual's new text end actions or failure to comply
with applicable law or rule poses, or the actions of other individuals or conditions in the
program poses an imminent risk of harm to the health, safety, or rights of persons served
by the program. "Reasonable cause" means there exist specific articulable facts or
circumstances which provide the commissioner with a reasonable suspicion that there is an
imminent risk of harm to the health, safety, or rights of persons served by the program.
When the commissioner has determined there is reasonable cause to order the temporary
immediate suspension of a license based on a violation of safe sleep requirements, as defined
in section 245A.1435, the commissioner is not required to demonstrate that an infant died
or was injured as a result of the safe sleep violations. For suspensions under subdivision 2,
paragraph (a), clause (2), the burden of proof in expedited hearings under this subdivision
deleted text begin shall be limited todeleted text end new text begin is met only ifnew text end the deleted text begin commissioner's demonstrationdeleted text end new text begin commissioner
demonstratesnew text end by a preponderance of the evidence that, since the license was revoked, the
license holder committed additional violations of law or rule which may adversely affect
the health or safety of persons served by the program.
(b) The administrative law judge shall issue findings of fact, conclusions, and a
recommendation within ten working days from the date of hearing. The parties shall have
ten calendar days to submit exceptions to the administrative law judge's report. The record
shall close at the end of the ten-day period for submission of exceptions. The commissioner's
final order shall be issued within ten working days from the close of the record. When an
appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner
shall issue a final order affirming the temporary immediate suspension within ten calendar
days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days
after an immediate suspension has been issued and the license holder has not submitted a
timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final
order affirming an immediate suspension, the commissioner shall determine:
(1) whether a final licensing sanction shall be issued under subdivision 3, paragraph (a),
clauses (1) to deleted text begin (6)deleted text end new text begin (5)new text end . The license holder shall continue to be prohibited from operation of
the program during this 90-day period; or
(2) whether the outcome of related, ongoing investigations or judicial proceedings are
necessary to determine if a final licensing sanction under subdivision 3, paragraph (a),
clauses (1) to deleted text begin (6)deleted text end new text begin (5)new text end , will be issued and whether persons served by the program remain at
an imminent risk of harm during the investigation period or proceedings. If so, the
commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause deleted text begin (7).deleted text end new text begin
(6); or
new text end
new text begin
(3) whether the license holder or controlling individual remains the subject of a pending
administrative, civil, or criminal investigation or subject to an administrative or civil action
related to fraud against a program administered by a state or federal agency. If so, the
commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause (6).
new text end
(c) When the final order under paragraph (b) affirms an immediate suspension, or the
license holder does not submit a timely appeal of the immediate suspension, and a final
licensing sanction is issued under subdivision 3 and the license holder appeals that sanction,
the license holder continues to be prohibited from operation of the program pending a final
commissioner's order under section 245A.08, subdivision 5, regarding the final licensing
sanction.
(d) The license holder shall continue to be prohibited from operation of the program
while a suspension order issued under paragraph (b), clause (2)new text begin or (3)new text end , remains in effect.
(e) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof
in expedited hearings under this subdivision deleted text begin shall be limited todeleted text end new text begin is met only ifnew text end the
deleted text begin commissioner's demonstrationdeleted text end new text begin commissioner demonstratesnew text end by a preponderance of the
evidence that a criminal complaint and warrant or summons was issued for the license holder
new text begin or controlling individual new text end that was not dismissed, and that the criminal charge is an offense
that involves fraud or theft against a program administered by the commissioner.
new text begin
(f) For suspensions under subdivision 2, paragraph (c), the burden of proof in expedited
hearings under this subdivision is met only if the commissioner demonstrates by a
preponderance of the evidence that the license holder or controlling individual is the subject
of a pending administrative, civil, or criminal investigation or is subject to an administrative
or civil action related to fraud against a program administered by a state or federal agency.
new text end
Sec. 9.
Minnesota Statutes 2025 Supplement, section 245A.07, subdivision 3, is amended
to read:
Subd. 3.
License suspension, revocation, or fine.
(a) The commissioner may suspend
or revoke a license, or impose a fine if:
(1) a license holder fails to comply fully with applicable laws or rules including but not
limited to the requirements of this chapter and chapter 245C;
(2) a license holder, a controlling individual, or an individual living in the household
where the licensed services are provided or is otherwise subject to a background study has
been disqualified and the disqualification was not set aside and no variance has been granted;
(3) a license holder knowingly withholds relevant information from or gives false or
misleading information to the commissioner in connection with an application for a license,
in connection with the background study status of an individual, during an investigation,
or regarding compliance with applicable laws or rules;
(4) a license holder is excluded from any program administered by the commissioner
under section 245.095;
(5) revocation is required under section 245A.04, subdivision 7, paragraph (d); or
(6) suspension is necessary under subdivision 2a, paragraph (b), clause (2)new text begin or (3)new text end .
A license holder who has had a license issued under this chapter suspended, revoked,
or has been ordered to pay a fine must be given notice of the action by certified mail, by
personal service, or through the provider licensing and reporting hub. If mailed, the notice
must be mailed to the address shown on the application or the last known address of the
license holder. The notice must state in plain language the reasons the license was suspended
or revoked, or a fine was ordered.
(b) If the license was suspended or revoked, the notice must inform the license holder
of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts
1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking
a license. The appeal of an order suspending or revoking a license must be made in writing
by certified mail, by personal service, or through the provider licensing and reporting hub.
If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar
days after the license holder receives notice that the license has been suspended or revoked.
If a request is made by personal service, it must be received by the commissioner within
ten calendar days after the license holder received the order. If the order is issued through
the provider hub, the appeal must be received by the commissioner within ten calendar days
from the date the commissioner issued the order through the hub. Except as provided in
subdivision 2a, paragraph (c), if a license holder submits a timely appeal of an order
suspending or revoking a license, the license holder may continue to operate the program
as provided in section 245A.04, subdivision 7, paragraphs (i) and (j), until the commissioner
issues a final order on the suspension or revocation.
(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license
holder of the responsibility for payment of fines and the right to a contested case hearing
under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an
order to pay a fine must be made in writing by certified mail, by personal service, or through
the provider licensing and reporting hub. If mailed, the appeal must be postmarked and sent
to the commissioner within ten calendar days after the license holder receives notice that
the fine has been ordered. If a request is made by personal service, it must be received by
the commissioner within ten calendar days after the license holder received the order. If the
order is issued through the provider hub, the appeal must be received by the commissioner
within ten calendar days from the date the commissioner issued the order through the hub.
(2) The license holder shall pay the fines assessed on or before the payment date specified.
If the license holder fails to fully comply with the order, the commissioner may issue a
second fine or suspend the license until the license holder complies. If the license holder
receives state funds, the state, county, or municipal agencies or departments responsible for
administering the funds shall withhold payments and recover any payments made while the
license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine
until the commissioner issues a final order.
(3) A license holder shall promptly notify the commissioner of human services, in writing,
when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the
commissioner determines that a violation has not been corrected as indicated by the order
to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify
the license holder by certified mail, by personal service, or through the provider licensing
and reporting hub that a second fine has been assessed. The license holder may appeal the
second fine as provided under this subdivision.
(4) Fines shall be assessed as follows:
(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a
child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557
for which the license holder is determined responsible for the maltreatment under section
260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c);
(ii) if the commissioner determines that a determination of maltreatment for which the
license holder is responsible is the result of maltreatment that meets the definition of serious
maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit
$5,000;
(iii) the license holder shall forfeit $200 for each occurrence of a violation of law or rule
governing matters of health, safety, or supervision, including but not limited to the provision
of adequate staff-to-child or adult ratios, and failure to comply with background study
requirements under chapter 245C; and
(iv) the license holder shall forfeit $100 for each occurrence of a violation of law or rule
other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iii).
For purposes of this section, "occurrence" means each violation identified in the
commissioner's fine order. Fines assessed against a license holder that holds a license to
provide home and community-based services, as identified in section 245D.03, subdivision
1, and a community residential setting or day services facility license under chapter 245D
where the services are provided, may be assessed against both licenses for the same
occurrence, but the combined amount of the fines shall not exceed the amount specified in
this clause for that occurrence.
(5) When a fine has been assessed, the license holder may not avoid payment by closing,
selling, or otherwise transferring the licensed program to a third party. In such an event, the
license holder will be personally liable for payment. In the case of a corporation, each
controlling individual is personally and jointly liable for payment.
(d) Except for background study violations involving the failure to comply with an order
to immediately remove an individual or an order to provide continuous, direct supervision,
the commissioner shall not issue a fine under paragraph (c) relating to a background study
violation to a license holder who self-corrects a background study violation before the
commissioner discovers the violation. A license holder who has previously exercised the
provisions of this paragraph to avoid a fine for a background study violation may not avoid
a fine for a subsequent background study violation unless at least 365 days have passed
since the license holder self-corrected the earlier background study violation.
Sec. 10.
Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 4, is amended
to read:
Subd. 4.
License or certification fee for certain programs.
(a)(1) A program licensed
to provide one or more of the home and community-based services and supports identified
under chapter 245D to persons with disabilities or age 65 and older, shall pay an annual
nonrefundable license fee based on revenues derived from the provision of services that
would require licensure under chapter 245D during the calendar year immediately preceding
the year in which the license fee is paid, according to the following schedule:
| License Holder Annual Revenue |
License Fee |
|
| less than or equal to $10,000 |
$250 |
|
| greater than $10,000 but less than or equal to $25,000 |
$375 |
|
| greater than $25,000 but less than or equal to $50,000 |
$500 |
|
| greater than $50,000 but less than or equal to $100,000 |
$625 |
|
| greater than $100,000 but less than or equal to $150,000 |
$750 |
|
| greater than $150,000 but less than or equal to $200,000 |
$1,000 |
|
| greater than $200,000 but less than or equal to $250,000 |
$1,250 |
|
| greater than $250,000 but less than or equal to $300,000 |
$1,500 |
|
| greater than $300,000 but less than or equal to $350,000 |
$1,750 |
|
| greater than $350,000 but less than or equal to $400,000 |
$2,000 |
|
| greater than $400,000 but less than or equal to $450,000 |
$2,250 |
|
| greater than $450,000 but less than or equal to $500,000 |
$2,500 |
|
| greater than $500,000 but less than or equal to $600,000 |
$2,850 |
|
| greater than $600,000 but less than or equal to $700,000 |
$3,200 |
|
| greater than $700,000 but less than or equal to $800,000 |
$3,600 |
|
| greater than $800,000 but less than or equal to $900,000 |
$3,900 |
|
| greater than $900,000 but less than or equal to $1,000,000 |
$4,250 |
|
| greater than $1,000,000 but less than or equal to $1,250,000 |
$4,550 |
|
| greater than $1,250,000 but less than or equal to $1,500,000 |
$4,900 |
|
| greater than $1,500,000 but less than or equal to $1,750,000 |
$5,200 |
|
| greater than $1,750,000 but less than or equal to $2,000,000 |
$5,500 |
|
| greater than $2,000,000 but less than or equal to $2,500,000 |
$5,900 |
|
| greater than $2,500,000 but less than or equal to $3,000,000 |
$6,200 |
|
| greater than $3,000,000 but less than or equal to $3,500,000 |
$6,500 |
|
| greater than $3,500,000 but less than or equal to $4,000,000 |
$7,200 |
|
| greater than $4,000,000 but less than or equal to $4,500,000 |
$7,800 |
|
| greater than $4,500,000 but less than or equal to $5,000,000 |
$9,000 |
|
| greater than $5,000,000 but less than or equal to $7,500,000 |
$10,000 |
|
| greater than $7,500,000 but less than or equal to $10,000,000 |
$14,000 |
|
| greater than $10,000,000 but less than or equal to $12,500,000 |
$18,000 |
|
| greater than $12,500,000 but less than or equal to $15,000,000 |
$25,000 |
|
| greater than $15,000,000 but less than or equal to $17,500,000 |
$28,000 |
|
| greater than $17,500,000 but less than new text begin or equal to new text end $20,000,000 |
$32,000 |
|
| greater than $20,000,000 but less than new text begin or equal to new text end $25,000,000 |
$36,000 |
|
| greater than $25,000,000 but less than new text begin or equal to new text end $30,000,000 |
$45,000 |
|
| greater than $30,000,000 but less than new text begin or equal to new text end $35,000,000 |
$55,000 |
|
| greater than $35,000,000 |
$75,000 |
(2) If requested, the license holder shall provide the commissioner information to verify
the license holder's annual revenues or other information as needed, including copies of
documents submitted to the Department of Revenue.
(3) At each annual renewal, a license holder may elect to pay the highest renewal fee,
and not provide annual revenue information to the commissioner.
(4) A license holder that knowingly provides the commissioner incorrect revenue amounts
for the purpose of paying a lower license fee shall be subject to a civil penalty in the amount
of double the fee the provider should have paid.
(b) A substance use disorder treatment program licensed under chapter 245G, to provide
substance use disorder treatment shall pay an annual nonrefundable license fee based on
the following schedule:
| Licensed Capacity |
License Fee |
|
| 1 to 24 persons |
$2,600 |
|
| 25 to 49 persons |
$3,000 |
|
| 50 to 74 persons |
$5,000 |
|
| 75 to 99 persons |
$10,000 |
|
| 100 to 199 persons |
$15,000 |
|
| 200 or more persons |
$20,000 |
(c) A detoxification program licensed under Minnesota Rules, parts 9530.6510 to
9530.6590, or a withdrawal management program licensed under chapter 245F shall pay
an annual nonrefundable license fee based on the following schedule:
| Licensed Capacity |
License Fee |
|
| 1 to 24 persons |
$2,600 |
|
| 25 to 49 persons |
$3,000 |
|
| 50 or more persons |
$5,000 |
A detoxification program that also operates a withdrawal management program at the same
location shall only pay one fee based upon the licensed capacity of the program with the
higher overall capacity.
(d) A children's residential facility licensed under Minnesota Rules, chapter 2960, to
serve children shall pay an annual nonrefundable license fee based on the following schedule:
| Licensed Capacity |
License Fee |
|
| 1 to 24 persons |
$1,000 |
|
| 25 to 49 persons |
$1,100 |
|
| 50 to 74 persons |
$1,200 |
|
| 75 to 99 persons |
$1,300 |
|
| 100 or more persons |
$1,400 |
(e) A residential facility licensed under section 245I.23 or Minnesota Rules, parts
9520.0500 to 9520.0670, to serve persons with mental illness shall pay an annual
nonrefundable license fee based on the following schedule:
| Licensed Capacity |
License Fee |
|
| 1 to 24 persons |
$2,600 |
|
| 25 to 49 persons |
$3,000 |
|
| 50 or more persons |
$20,000 |
(f) A residential facility licensed under Minnesota Rules, parts 9570.2000 to 9570.3400,
to serve persons with physical disabilities shall pay an annual nonrefundable license fee
based on the following schedule:
| Licensed Capacity |
License Fee |
|
| 1 to 24 persons |
$450 |
|
| 25 to 49 persons |
$650 |
|
| 50 to 74 persons |
$850 |
|
| 75 to 99 persons |
$1,050 |
|
| 100 or more persons |
$1,250 |
(g) A program licensed as an adult day care center licensed under Minnesota Rules,
parts 9555.9600 to 9555.9730, shall pay an annual nonrefundable license fee based on the
following schedule:
| Licensed Capacity |
License Fee |
|
| 1 to 24 persons |
$2,600 |
|
| 25 to 49 persons |
$3,000 |
|
| 50 to 74 persons |
$5,000 |
|
| 75 to 99 persons |
$10,000 |
|
| 100 to 199 persons |
$15,000 |
|
| 200 or more persons |
$20,000 |
(h) A program licensed to provide treatment services to persons with sexual psychopathic
personalities or sexually dangerous persons under Minnesota Rules, parts 9515.3000 to
9515.3110, shall pay an annual nonrefundable license fee of $20,000.
(i) A mental health clinic certified under section 245I.20 shall pay an annual
nonrefundable certification fee of $1,550. If the mental health clinic provides services at a
primary location with satellite facilities, the satellite facilities shall be certified with the
primary location without an additional charge.
(j) If a program subject to annual fees under paragraph (b) provides services at a primary
location with satellite facilities, the satellite facilities must be licensed with the primary
location and must be subject to an additional $500 annual nonrefundable license fee per
satellite facility.
Sec. 11.
Minnesota Statutes 2025 Supplement, section 245A.142, subdivision 3, is amended
to read:
Subd. 3.
Provisional license.
(a) Beginning January 1, 2026, the commissioner shall
begin issuing provisional licenses to agencies enrolled under chapter 256B to provide EIDBI
services.
(b) Agencies enrolled before July 1, 2025, have until May 31, 2026, to submit an
application for provisional licensure on the forms and in the manner prescribed by the
commissioner.
(c) Beginning June 1, 2026, an agency must not operate if it has not submitted an
application for provisional licensure under this section. The commissioner shall disenroll
an agency from providing EIDBI services under chapter 256B if the agency fails to submit
an application for provisional licensure by May 31, 2026.
(d) The commissioner must determine whether a provisional license applicant complies
with all applicable rules and laws and either issue a provisional license to the applicant or
deny the application by December 31, 2026.
(e) A provisional license is effective until comprehensive EIDBI agency licensure
standards are in effect unless the provisional license is suspended or revoked.
new text begin
(f) Initial provisional license applications are subject to the $2,100 application fee under
section 245A.10, subdivision 3.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 12.
Minnesota Statutes 2025 Supplement, section 245A.242, subdivision 2, is amended
to read:
Subd. 2.
Emergency overdose treatment.
(a) A license holder must maintain a supply
of opiate antagonists as defined in section 604A.04, subdivision 1, available for emergency
treatment of opioid overdose deleted text begin anddeleted text end new text begin . For administration via intramuscular injection, a license
holdernew text end must have a written standing order protocol by a physician who is licensed under
chapter 147, advanced practice registered nurse who is licensed under chapter 148, or
physician assistant who is licensed under chapter 147A, that permits the license holder to
maintain a supply of new text begin intramuscular injection new text end opiate antagonists on site. A license holder
must require staff to undergo training in the specific mode of administration used at the
program, which may include intranasal administration, intramuscular injection, or both,
before the staff has direct contact, as defined in section 245C.02, subdivision 11, with a
person served by the program.
(b) Notwithstanding any requirements to the contrary in Minnesota Rules, chapters 2960
and 9530, and Minnesota Statutes, chapters 245F, 245G, and 245I:
(1) emergency opiate antagonist medications are not required to be stored in a locked
area and staff and adult clients may carry this medication on them and store it in an unlocked
location;
(2) staff persons who only administer emergency opiate antagonist medications only
require the training required by paragraph (a), which any knowledgeable trainer may provide.
The trainer is not required to be a registered nurse or part of an accredited educational
institution; and
(3) nonresidential substance use disorder treatment programs that do not administer
client medications beyond emergency opiate antagonist medications are not required to
have the policies and procedures required in section 245G.08, subdivisions 5 and 6, and
must instead describe the program's procedures for administering opiate antagonist
medications in the license holder's description of health care services under section 245G.08,
subdivision 1.
Sec. 13.
Minnesota Statutes 2024, section 245C.02, subdivision 18, is amended to read:
Subd. 18.
Serious maltreatment.
(a) "Serious maltreatment" means sexual abuse,
maltreatment resulting in death, neglect resulting in serious injury which reasonably requires
the care of a physician, advanced practice registered nurse, or physician assistant whether
or not the care of a physician, advanced practice registered nurse, or physician assistant was
sought, deleted text begin ordeleted text end abuse resulting in serious injurynew text begin , or financial exploitation of a vulnerable adult
if the value of the funds or property is $1,000 or greaternew text end .
(b) For purposes of this definition, "care of a physician, advanced practice registered
nurse, or physician assistant" is treatment received or ordered by a physician, physician
assistant, or advanced practice registered nurse, but does not include:
(1) diagnostic testing, assessment, or observation;
(2) the application of, recommendation to use, or prescription solely for a remedy that
is available over the counter without a prescription; or
(3) a prescription solely for a topical antibiotic to treat burns when there is no follow-up
appointment.
(c) For purposes of this definition, "abuse resulting in serious injury" means: bruises,
bites, skin laceration, or tissue damage; fractures; dislocations; evidence of internal injuries;
head injuries with loss of consciousness; extensive second-degree or third-degree burns and
other burns for which complications are present; extensive second-degree or third-degree
frostbite and other frostbite for which complications are present; irreversible mobility or
avulsion of teeth; injuries to the eyes; ingestion of foreign substances and objects that are
harmful; near drowning; and heat exhaustion or sunstroke.
(d) Serious maltreatment includes neglect when it results in criminal sexual conduct
against a child or vulnerable adult.
Sec. 14.
Minnesota Statutes 2024, section 245C.03, subdivision 1, is amended to read:
Subdivision 1.
Programs licensed by the commissioner.
(a) The commissioner shall
conduct a background study on:
(1) the person or persons applying for a license;
(2) an individual age 13 and over living in the household where the licensed program
will be provided who is not receiving licensed services from the program;
(3) current or prospective employees of the applicant or license holder who will have
direct contact with persons served by the facility, agency, or program;
(4) volunteers or student volunteers who will have direct contact with persons served
by the program to provide program services if the contact is not under the continuous, direct
supervision by an individual listed in clause (1) or (3);
(5) an individual age ten to 12 living in the household where the licensed services will
be provided when the commissioner has reasonable cause as defined in section 245C.02,
subdivision 15;
(6) an individual who, without providing direct contact services at a licensed program,
may have unsupervised access to children or vulnerable adults receiving services from a
program, when the commissioner has reasonable cause as defined in section 245C.02,
subdivision 15; and
(7) all controlling individuals as defined in section 245A.02, subdivision 5a;
(8) notwithstanding clause (3), for children's residential facilities and foster residence
settings, any adult working in the facility, whether or not the individual will have direct
contact with persons served by the facility.
(b) For child foster care when the license holder resides in the home where foster care
services are provided, a short-term substitute caregiver providing direct contact services for
a child for less than 72 hours of continuous care is not required to receive a background
study under this chapter.
(c) This subdivision applies to the following programs that must be licensed under
chapter 245A:
(1) adult foster care;
(2) children's residential facilities;
(3) licensed home and community-based services under chapter 245D;
(4) residential mental health programs for adults;
(5) substance use disorder treatment programs under chapter 245G;
(6) withdrawal management programs under chapter 245F;
(7) adult day care centers;
(8) family adult day services;
(9) detoxification programs;
(10) community residential settings;
(11) intensive residential treatment services and residential crisis stabilization under
chapter 245I; deleted text begin and
deleted text end
(12) treatment programs for persons with sexual psychopathic personality or sexually
dangerous persons, licensed under chapter 245A and according to Minnesota Rules, parts
9515.3000 to 9515.3110deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(13) children's foster residence settings.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective November 3, 2026.
new text end
Sec. 15.
Minnesota Statutes 2024, section 245C.04, subdivision 1, is amended to read:
Subdivision 1.
Licensed programs; other child care programs.
(a) The commissioner
shall conduct a background study of an individual required to be studied under section
245C.03, subdivision 1, at least upon application for initial license for all license types.
(b) The commissioner shall conduct a background study of an individual required to be
studied under section 245C.03, subdivision 1, including a child care background study
subject as defined in section 245C.02, subdivision 6a, in a family child care program, licensed
child care center, certified license-exempt child care center, or legal nonlicensed child care
provider, on a schedule determined by the commissioner. Except as provided in section
245C.05, subdivision 5a, a child care background study must include submission of
fingerprints for a national criminal history record check and a review of the information
under section 245C.08. A background study for a child care program must be repeated
within five years from the most recent study conducted under this paragraph.
(c) At reauthorization or when a new background study is needed under section 142E.16,
subdivision 2, for a legal nonlicensed child care provider authorized under chapter 142E:
(1) for a background study affiliated with a legal nonlicensed child care provider, the
individual shall provide information required under section 245C.05, subdivision 1,
paragraphs (a), (b), and (d), to the commissioner and be fingerprinted and photographed
under section 245C.05, subdivision 5; and
(2) the commissioner shall verify the information received under clause (1) and submit
the request in NETStudy 2.0 to complete the background study.
(d) At reapplication for a family child care license:
(1) for a background study affiliated with a licensed family child care center, the
individual shall provide information required under section 245C.05, subdivision 1,
paragraphs (a), (b), and (d), to the county agency, and be fingerprinted and photographed
under section 245C.05, subdivision 5;
(2) the county agency shall verify the information received under clause (1) and forward
the information to the commissioner and submit the request in NETStudy 2.0 to complete
the background study; and
(3) the background study conducted by the commissioner under this paragraph must
include a review of the information required under section 245C.08.
deleted text begin
(e) The commissioner is not required to conduct a study of an individual at the time of
reapplication for a license if the individual's background study was completed by the
commissioner of human services and the following conditions are met:
deleted text end
deleted text begin
(1) a study of the individual was conducted either at the time of initial licensure or when
the individual became affiliated with the license holder;
deleted text end
deleted text begin
(2) the individual has been continuously affiliated with the license holder since the last
study was conducted; and
deleted text end
deleted text begin
(3) the last study of the individual was conducted on or after October 1, 1995.
deleted text end
deleted text begin (f)deleted text end new text begin (e)new text end The commissioner of human services shall conduct a background study of an
individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6),
who is newly affiliated with a child foster family setting license holder:
(1) the county or private agency shall collect and forward to the commissioner the
information required under section 245C.05, subdivisions 1 and 5, when the child foster
family setting applicant or license holder resides in the home where child foster care services
are provided; and
(2) the background study conducted by the commissioner of human services under this
paragraph must include a review of the information required under section 245C.08,
subdivisions 1, 3, and 4.
deleted text begin (g)deleted text end new text begin (f)new text end The commissioner shall conduct a background study of an individual specified
under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly affiliated
with an adult foster care or family adult day services and with a family child care license
holder or a legal nonlicensed child care provider authorized under chapter 142E and:
(1) except as provided in section 245C.05, subdivision 5a, the county shall collect and
forward to the commissioner the information required under section 245C.05, subdivision
1, paragraphs (a) and (b), and subdivision 5, paragraph (b), for background studies conducted
by the commissioner for all family adult day services, for adult foster care when the adult
foster care license holder resides in the adult foster care residence, and for family child care
and legal nonlicensed child care authorized under chapter 142E;
(2) the license holder shall collect and forward to the commissioner the information
required under section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs
(a) and (b), for background studies conducted by the commissioner for adult foster care
when the license holder does not reside in the adult foster care residence; and
(3) the background study conducted by the commissioner under this paragraph must
include a review of the information required under section 245C.08, subdivision 1, paragraph
(a), and subdivisions 3 and 4.
deleted text begin (h)deleted text end new text begin (g)new text end Applicants for licensure, license holders, and other entities as provided in this
chapter must submit completed background study requests to the commissioner using the
electronic system known as NETStudynew text begin 2.0new text end before individuals specified in section 245C.03,
subdivision 1, begin positions allowing direct contact in any licensed program.
deleted text begin (i)deleted text end new text begin (h)new text end For an individual who is not on the entity's active roster, the entity must initiate
a new background study through NETStudy when:
(1) an individual returns to a position requiring a background study following an absence
of 120 or more consecutive days; or
(2) a program that discontinued providing licensed direct contact services for 120 or
more consecutive days begins to provide direct contact licensed services again.
The license holder shall maintain a copy of the notification provided to the commissioner
under this paragraph in the program's files. If the individual's disqualification was previously
set aside for the license holder's program and the new background study results in no new
information that indicates the individual may pose a risk of harm to persons receiving
services from the license holder, the previous set-aside shall remain in effect.
deleted text begin (j)deleted text end new text begin (i)new text end For purposes of this section, a physician licensed under chapter 147, advanced
practice registered nurse licensed under chapter 148, or physician assistant licensed under
chapter 147A is considered to be continuously affiliated upon the license holder's receipt
from the commissioner of health or human services of the physician's, advanced practice
registered nurse's, or physician assistant's background study results.
deleted text begin (k)deleted text end new text begin (j)new text end For purposes of family child care, a substitute caregiver must receive repeat
background studies at the time of each license renewal.
deleted text begin (l)deleted text end new text begin (k)new text end A repeat background study at the time of license renewal is not required if the
family child care substitute caregiver's background study was completed by the commissioner
on or after October 1, 2017, and the substitute caregiver is on the license holder's active
roster in NETStudy 2.0.
deleted text begin (m)deleted text end new text begin (l)new text end Before and after school programs authorized under chapter 142E, are exempt
from the background study requirements under section 123B.03, for an employee for whom
a background study under this chapter has been completed.
Sec. 16.
Minnesota Statutes 2025 Supplement, section 245C.07, is amended to read:
245C.07 STUDY SUBJECT AFFILIATED WITH MULTIPLE FACILITIES.
(a) Subject to the conditions in paragraph (d), when a license holder, applicant, or other
entity owns multiple programs or services that are licensed by the Department of Human
Services; Department of Children, Youth, and Families; Department of Health; or Department
of Corrections, only one background study is required for an individual who provides direct
contact services in one or more of the licensed programs or services if:
(1) the license holder designates one individual with one address and telephone number
as the person to receive sensitive background study information for the multiple licensed
programs or services that depend on the same background study; and
(2) the individual designated to receive the sensitive background study information is
capable of determining, upon request of the department, whether a background study subject
is providing direct contact services in one or more of the license holder's programs or services
and, if so, at which location or locations.
(b) When a license holder maintains background study compliance for multiple licensed
programs according to paragraph (a), and one or more of the licensed programs closes, the
license holder shall immediately notify the commissioner which staff must be transferred
to an active license so that the background studies can be electronically paired with the
license holder's active program.
(c) When a background study is being initiated by a licensed program or service or a
foster care provider that is also licensed under chapter 144G, a study subject affiliated with
multiple licensed programs or services may attach to the background study form a cover
letter indicating the additional names of the programs or services, addresses, and background
study identification numbers.
When the commissioner receives a notice, the commissioner shall notify each program
or service identified by the background study subject of the study results.
The background study notice the commissioner sends to the subsequent agencies shall
satisfy those programs' or services' responsibilities for initiating a background study on that
individual.
(d) deleted text begin If a background study was conducted on an individual related to child foster care
and the requirements under paragraph (a) are met, the background study is transferable
across all licensed programs.deleted text end If a background study was conducted on an individual under
a license other than child foster care and the requirements under paragraph (a) are met, the
background study is transferable to all licensed programs except child foster care.
(e) The provisions of this section that allow a single background study in one or more
licensed programs or services do not apply to background studies submitted by adoption
agencies, supplemental nursing services agencies, personnel pool agencies, educational
programs, professional services agencies, temporary personnel agencies, and unlicensed
personal care provider organizations.
(f) For an entity operating under NETStudy 2.0, the entity's active roster must be the
system used to document when a background study subject is affiliated with multiple entities.
For a background study to be transferable:
(1) the background study subject must be on and moving to a roster for which the person
designated to receive sensitive background study information is the same; and
(2) the same entity must own or legally control both the roster from which the transfer
is occurring and the roster to which the transfer is occurring. For an entity that holds or
controls multiple licenses, or unlicensed personal care provider organizations, there must
be a common highest level entity that has a legally identifiable structure that can be verified
through records available from the secretary of state.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
Sec. 17.
Minnesota Statutes 2025 Supplement, section 245C.13, subdivision 2, is amended
to read:
Subd. 2.
Activities pending completion of background study.
The subject of a
background study may not perform any activity requiring a background study under
paragraph (c) until the commissioner has issued one of the notices under paragraph (a).
(a) Notices from the commissioner required prior to activity under paragraph (c) include:
(1) a notice of the study results under section 245C.17 stating that:
(i) the individual is not disqualified; or
(ii) more time is needed to complete the study but the individual is not required to be
removed from direct contact or access to people receiving services prior to completion of
the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice
that more time is needed to complete the study must also indicate whether the individual is
required to be under continuous direct supervision prior to completion of the background
study. When more time is necessary to complete a background study of an individual
affiliated with a Title IV-E eligible children's residential facility or foster residence setting,
the individual may not work in the facility or setting regardless of whether or not the
individual is supervised;
(2) a notice that a disqualification has been set aside under section 245C.23; or
(3) a notice that a variance has been granted related to the individual under section
245C.30.
(b) For a new text begin child care new text end background study deleted text begin affiliated with a licensed child care center or
certified license-exempt child care centerdeleted text end new text begin subject required to submit fingerprints for a
national criminal history check, except as provided in section 245C.05, subdivision 5anew text end , the
notice sent under paragraph (a), clause (1), item (ii), must not be issued until the
commissioner receives a qualifying result for the individual for the fingerprint-based national
criminal history record check or the fingerprint-based criminal history information from
the Bureau of Criminal Apprehension. The notice must require the individual to be under
continuous direct supervision prior to completion of the remainder of the background study
except as permitted in subdivision 3.
(c) Activities prohibited prior to receipt of notice under paragraph (a) include:
(1) being issued a license;
(2) living in the household where the licensed program will be provided;
(3) providing direct contact services to persons served by a program unless the subject
is under continuous direct supervision;
(4) having access to persons receiving services if the background study was completed
under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2),
(5), or (6), unless the subject is under continuous direct supervision;
(5) for deleted text begin licensed child care centers and certified license-exempt child care centersdeleted text end new text begin a child
care background study subjectnew text end , deleted text begin providing direct contact services to persons served by the
programdeleted text end new text begin performing any act listed in section 245C.02, subdivision 6a, unless the study is
being renewed under section 245C.04, subdivision 1, paragraph (b), and it has been less
than five years since the child care background study subject was previously disqualified
or provided notice under paragraph (a), clause (1), item (i)new text end ;
(6) for children's residential facilities or foster residence settings, working in the facility
or setting;
(7) for background studies affiliated with a personal care provider organization, except
as provided in section 245C.03, subdivision 3b, before a personal care assistant provides
services, the personal care assistance provider agency must initiate a background study of
the personal care assistant under this chapter and the personal care assistance provider
agency must have received a notice from the commissioner that the personal care assistant
is:
(i) not disqualified under section 245C.14; or
(ii) disqualified, but the personal care assistant has received a set aside of the
disqualification under section 245C.22; or
(8) for background studies affiliated with an early intensive developmental and behavioral
intervention provider, before an individual provides services, the early intensive
developmental and behavioral intervention provider must initiate a background study for
the individual under this chapter and the early intensive developmental and behavioral
intervention provider must have received a notice from the commissioner that the individual
is:
(i) not disqualified under section 245C.14; or
(ii) disqualified, but the individual has received a set-aside of the disqualification under
section 245C.22.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2026.
new text end
Sec. 18.
Minnesota Statutes 2024, section 245C.15, subdivision 2, is amended to read:
Subd. 2.
15-year disqualification.
(a) An individual is disqualified under section 245C.14
if: (1) less than 15 years have passed since the discharge of the sentence imposed, if any,
for the offense; and (2) the individual has committed a felony-level violation of any of the
following offenses: sections 152.021, subdivision 1 or 2b, (aggravated controlled substance
crime in the first degree; sale crimes); 152.022, subdivision 1 (controlled substance crime
in the second degree; sale crimes); 152.023, subdivision 1 (controlled substance crime in
the third degree; sale crimes); 152.024, subdivision 1 (controlled substance crime in the
fourth degree; sale crimes); 256.98 (wrongfully obtaining assistance); 268.182 (fraud);
393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 518B.01, subdivision 14
(violation of an order for protection); 609.165 (felon ineligible to possess firearm); 609.2112,
609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.215 (suicide); 609.223
or 609.2231 (assault in the third or fourth degree); repeat offenses under 609.224 (assault
in the fifth degree); 609.229 (crimes committed for benefit of a gang); 609.2325 (criminal
abuse of a vulnerable adult); new text begin 609.2334 (violation of an order for protection against financial
exploitation of a vulnerable adult); new text end 609.2335 (financial exploitation of a vulnerable adult);
609.235 (use of drugs to injure or facilitate crime); 609.24 (simple robbery); 609.247,
subdivision 4 (carjacking in the third degree); 609.255 (false imprisonment); 609.2664
(manslaughter of an unborn child in the first degree); 609.2665 (manslaughter of an unborn
child in the second degree); 609.267 (assault of an unborn child in the first degree); 609.2671
(assault of an unborn child in the second degree); 609.268 (injury or death of an unborn
child in the commission of a crime); 609.27 (coercion); 609.275 (attempt to coerce); 609.466
(medical assistance fraud); 609.495 (aiding an offender); 609.498, subdivision 1 or 1b
(aggravated first-degree or first-degree tampering with a witness); 609.52 (theft); 609.521
(possession of shoplifting gear); 609.522 (organized retail theft); 609.525 (bringing stolen
goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535
(issuance of dishonored checks); new text begin 609.542 (illegal remunerations); new text end 609.562 (arson in the
second degree); 609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession
of burglary tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery);
609.631 (check forgery; offering a forged check); 609.635 (obtaining signature by false
pretense); 609.66 (dangerous weapons); 609.67 (machine guns and short-barreled shotguns);
609.687 (adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.746 (interference
with privacy); 609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud);
617.23 (indecent exposure), not involving a minor; repeat offenses under 617.241 (obscene
materials and performances; distribution and exhibition prohibited; penalty); or 624.713
(certain persons not to possess firearms).
(b) An individual is disqualified under section 245C.14 if less than 15 years has passed
since the individual's aiding and abetting, attempt, or conspiracy to commit any of the
offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
(c) An individual is disqualified under section 245C.14 if less than 15 years has passed
since the termination of the individual's parental rights under section 260C.301, subdivision
1, paragraph (b), or subdivision 3.
(d) An individual is disqualified under section 245C.14 if less than 15 years has passed
since the discharge of the sentence imposed for an offense in any other state or country, the
elements of which are substantially similar to the elements of the offenses listed in paragraph
(a) or since the termination of parental rights in any other state or country, the elements of
which are substantially similar to the elements listed in paragraph (c).
(e) If the individual studied commits one of the offenses listed in paragraph (a), but the
sentence or level of offense is a gross misdemeanor or misdemeanor, the individual is
disqualified but the disqualification look-back period for the offense is the period applicable
to the gross misdemeanor or misdemeanor disposition.
(f) When a disqualification is based on a judicial determination other than a conviction,
the disqualification period begins from the date of the court order. When a disqualification
is based on an admission, the disqualification period begins from the date of an admission
in court. When a disqualification is based on an Alford Plea, the disqualification period
begins from the date the Alford Plea is entered in court. When a disqualification is based
on a preponderance of evidence of a disqualifying act, the disqualification date begins from
the date of the dismissal, the date of discharge of the sentence imposed for a conviction for
a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
Sec. 19.
Minnesota Statutes 2024, section 245C.15, subdivision 3, is amended to read:
Subd. 3.
Ten-year disqualification.
(a) An individual is disqualified under section
245C.14 if: (1) less than ten years have passed since the discharge of the sentence imposed,
if any, for the offense; and (2) the individual has committed a gross misdemeanor-level
violation of any of the following offenses: sections 256.98 (wrongfully obtaining assistance);
260B.425 (criminal jurisdiction for contributing to status as a juvenile petty offender or
delinquency); 260C.425 (criminal jurisdiction for contributing to need for protection or
services); 268.182 (fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud);
609.2112, 609.2113, or 609.2114 (criminal vehicular homicide or injury); 609.221 or 609.222
(assault in the first or second degree); 609.223 or 609.2231 (assault in the third or fourth
degree); 609.224 (assault in the fifth degree); 609.224, subdivision 2, paragraph (c) (assault
in the fifth degree by a caregiver against a vulnerable adult); 609.2242 and 609.2243
(domestic assault); 609.23 (mistreatment of persons confined); 609.231 (mistreatment of
residents or patients); 609.2325 (criminal abuse of a vulnerable adult); 609.233 (criminal
neglect of a vulnerable adult); new text begin 609.2334 (violation of an order for protection against financial
exploitation of a vulnerable adult); new text end 609.2335 (financial exploitation of a vulnerable adult);
609.234 (failure to report maltreatment of a vulnerable adult); 609.265 (abduction); 609.275
(attempt to coerce); 609.324, subdivision 1a (other prohibited acts; minor engaged in
prostitution); 609.33 (disorderly house); 609.377 (malicious punishment of a child); 609.378
(neglect or endangerment of a child); 609.466 (medical assistance fraud); 609.52 (theft);
609.522 (organized retail theft); 609.525 (bringing stolen goods into Minnesota); 609.527
(identity theft); 609.53 (receiving stolen property); 609.535 (issuance of dishonored checks);
609.582 (burglary); 609.59 (possession of burglary tools); 609.611 (insurance fraud); 609.631
(check forgery; offering a forged check); 609.66 (dangerous weapons); 609.71 (riot); 609.72,
subdivision 3 (disorderly conduct against a vulnerable adult); new text begin 609.746 (interference with
privacy); new text end 609.749, subdivision 2 (harassment); 609.82 (fraud in obtaining credit); 609.821
(financial transaction card fraud); 617.23 (indecent exposure), not involving a minor; 617.241
(obscene materials and performances); 617.243 (indecent literature, distribution); 617.293
(harmful materials; dissemination and display to minors prohibited); or Minnesota Statutes
2012, section 609.21; or violation of an order for protection under section 518B.01,
subdivision 14.
(b) An individual is disqualified under section 245C.14 if less than ten years has passed
since the individual's aiding and abetting, attempt, or conspiracy to commit any of the
offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes.
(c) An individual is disqualified under section 245C.14 if less than ten years has passed
since the discharge of the sentence imposed for an offense in any other state or country, the
elements of which are substantially similar to the elements of any of the offenses listed in
paragraph (a).
(d) If the individual studied commits one of the offenses listed in paragraph (a), but the
sentence or level of offense is a misdemeanor disposition, the individual is disqualified but
the disqualification lookback period for the offense is the period applicable to misdemeanors.
(e) When a disqualification is based on a judicial determination other than a conviction,
the disqualification period begins from the date of the court order. When a disqualification
is based on an admission, the disqualification period begins from the date of an admission
in court. When a disqualification is based on an Alford Plea, the disqualification period
begins from the date the Alford Plea is entered in court. When a disqualification is based
on a preponderance of evidence of a disqualifying act, the disqualification date begins from
the date of the dismissal, the date of discharge of the sentence imposed for a conviction for
a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
Sec. 20.
Minnesota Statutes 2024, section 245C.15, subdivision 4, is amended to read:
Subd. 4.
Seven-year disqualification.
(a) An individual is disqualified under section
245C.14 if: (1) less than seven years has passed since the discharge of the sentence imposed,
if any, for the offense; and (2) the individual has committed a misdemeanor-level violation
of any of the following offenses: sections 256.98 (wrongfully obtaining assistance); 260B.425
(criminal jurisdiction for contributing to status as a juvenile petty offender or delinquency);
260C.425 (criminal jurisdiction for contributing to need for protection or services); 268.182
(fraud); 393.07, subdivision 10, paragraph (c) (federal SNAP fraud); 609.2112, 609.2113,
or 609.2114 (criminal vehicular homicide or injury); 609.221 (assault in the first degree);
609.222 (assault in the second degree); 609.223 (assault in the third degree); 609.2231
(assault in the fourth degree); 609.224 (assault in the fifth degree); 609.2242 (domestic
assault); new text begin 609.2334 (violation of an order for protection against financial exploitation of a
vulnerable adult); new text end 609.2335 (financial exploitation of a vulnerable adult); 609.234 (failure
to report maltreatment of a vulnerable adult); 609.2672 (assault of an unborn child in the
third degree); 609.27 (coercion); violation of an order for protection under 609.3232
(protective order authorized; procedures; penalties); 609.466 (medical assistance fraud);
609.52 (theft); 609.522 (organized retail theft); 609.525 (bringing stolen goods into
Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535 (issuance
of dishonored checks); 609.611 (insurance fraud); 609.66 (dangerous weapons); 609.665
(spring guns); 609.746 (interference with privacy); 609.79 (obscene or harassing telephone
calls); 609.795 (letter, telegram, or package; opening; harassment); 609.82 (fraud in obtaining
credit); 609.821 (financial transaction card fraud); 617.23 (indecent exposure), not involving
a minor; 617.293 (harmful materials; dissemination and display to minors prohibited); or
Minnesota Statutes 2012, section 609.21; or violation of an order for protection under section
518B.01 (Domestic Abuse Act).
(b) An individual is disqualified under section 245C.14 if less than seven years has
passed since a determination or disposition of the individual's:
(1) failure to make required reports under section 260E.06 or 626.557, subdivision 3,
for incidents in which: (i) the final disposition under section 626.557 or chapter 260E was
substantiated maltreatment, and (ii) the maltreatment was recurring or serious; or
(2) substantiated serious or recurring maltreatment of a minor under chapter 260E, a
vulnerable adult under section 626.557, or serious or recurring maltreatment in any other
state, the elements of which are substantially similar to the elements of maltreatment under
section 626.557 or chapter 260E for which: (i) there is a preponderance of evidence that
the maltreatment occurred, and (ii) the subject was responsible for the maltreatment.
(c) An individual is disqualified under section 245C.14 if less than seven years has
passed since the individual's aiding and abetting, attempt, or conspiracy to commit any of
the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota
Statutes.
(d) An individual is disqualified under section 245C.14 if less than seven years has
passed since the discharge of the sentence imposed for an offense in any other state or
country, the elements of which are substantially similar to the elements of any of the offenses
listed in paragraphs (a) and (b).
(e) When a disqualification is based on a judicial determination other than a conviction,
the disqualification period begins from the date of the court order. When a disqualification
is based on an admission, the disqualification period begins from the date of an admission
in court. When a disqualification is based on an Alford Plea, the disqualification period
begins from the date the Alford Plea is entered in court. When a disqualification is based
on a preponderance of evidence of a disqualifying act, the disqualification date begins from
the date of the dismissal, the date of discharge of the sentence imposed for a conviction for
a disqualifying crime of similar elements, or the date of the incident, whichever occurs last.
(f) An individual is disqualified under section 245C.14 if less than seven years has passed
since the individual was disqualified under section 256.98, subdivision 8.
Sec. 21.
Minnesota Statutes 2025 Supplement, section 245C.15, subdivision 4a, is amended
to read:
Subd. 4a.
Licensed family foster setting disqualifications.
(a) Notwithstanding
subdivisions 1 to 4new text begin , 4b, and 4cnew text end , for a background study affiliated with a licensed family
foster setting, regardless of how much time has passed, an individual is disqualified under
section 245C.14 if the individual committed an act that resulted in a felony-level conviction
for sections: 609.185 (murder in the first degree); 609.19 (murder in the second degree);
609.195 (murder in the third degree); 609.20 (manslaughter in the first degree); 609.205
(manslaughter in the second degree); 609.2112 (criminal vehicular homicide); 609.221
(assault in the first degree); 609.223, subdivision 2 (assault in the third degree, past pattern
of child abuse); 609.223, subdivision 3 (assault in the third degree, victim under four); a
felony offense under sections 609.2242 and 609.2243 (domestic assault, spousal abuse,
child abuse or neglect, or a crime against children); 609.2247 (domestic assault by
strangulation); 609.2325 (criminal abuse of a vulnerable adult resulting in the death of a
vulnerable adult); 609.245 (aggravated robbery); 609.247, subdivision 2 or 3 (carjacking
in the first or second degree); 609.25 (kidnapping); 609.255 (false imprisonment); 609.2661
(murder of an unborn child in the first degree); 609.2662 (murder of an unborn child in the
second degree); 609.2663 (murder of an unborn child in the third degree); 609.2664
(manslaughter of an unborn child in the first degree); 609.2665 (manslaughter of an unborn
child in the second degree); 609.267 (assault of an unborn child in the first degree); 609.2671
(assault of an unborn child in the second degree); 609.268 (injury or death of an unborn
child in the commission of a crime); 609.322, subdivision 1 (solicitation, inducement, and
promotion of prostitution; sex trafficking in the first degree); 609.324, subdivision 1 (other
prohibited acts; engaging in, hiring, or agreeing to hire minor to engage in prostitution);
609.342 (criminal sexual conduct in the first degree); 609.343 (criminal sexual conduct in
the second degree); 609.344 (criminal sexual conduct in the third degree); 609.345 (criminal
sexual conduct in the fourth degree); 609.3451 (criminal sexual conduct in the fifth degree);
609.3453 (criminal sexual predatory conduct); 609.3458 (sexual extortion); 609.352
(solicitation of children to engage in sexual conduct); 609.377 (malicious punishment of a
child); 609.3775 (child torture); 609.378 (neglect or endangerment of a child); 609.561
(arson in the first degree); 609.582, subdivision 1 (burglary in the first degree); 609.746
(interference with privacy); 617.23 (indecent exposure); 617.246 (use of minors in sexual
performance prohibited); or 617.247 (possession of child sexual abuse material).
(b) Notwithstanding subdivisions 1 to 4new text begin , 4b, and 4cnew text end , for the purposes of a background
study affiliated with a licensed family foster setting, an individual is disqualified under
section 245C.14, regardless of how much time has passed, if the individual:
(1) committed an action under paragraph (e) that resulted in death or involved sexual
abuse, as defined in section 260E.03, subdivision 20;
(2) committed an act that resulted in a gross misdemeanor-level conviction for section
609.3451 (criminal sexual conduct in the fifth degree);
(3) committed an act against or involving a minor that resulted in a felony-level conviction
for: section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the
third degree); 609.2231 (assault in the fourth degree); or 609.224 (assault in the fifth degree);
or
(4) committed an act that resulted in a misdemeanor or gross misdemeanor-level
conviction for section 617.293 (dissemination and display of harmful materials to minors).
(c) Notwithstanding subdivisions 1 to 4new text begin , 4b, and 4cnew text end , for a background study affiliated
with a licensed family foster setting, an individual is disqualified under section 245C.14 if
fewer than 20 years have passed since the termination of the individual's parental rights
under section 260C.301, subdivision 1, paragraph (b), or if the individual consented to a
termination of parental rights under section 260C.301, subdivision 1, paragraph (a), to settle
a petition to involuntarily terminate parental rights. An individual is disqualified under
section 245C.14 if fewer than 20 years have passed since the termination of the individual's
parental rights in any other state or country, where the conditions for the individual's
termination of parental rights are substantially similar to the conditions in section 260C.301,
subdivision 1, paragraph (b).
(d) Notwithstanding subdivisions 1 to 4new text begin , 4b, and 4cnew text end , for a background study affiliated
with a licensed family foster setting, an individual is disqualified under section 245C.14 if
fewer than five years have passed since a felony-level violation for sections: 152.021
(controlled substance crime in the first degree); 152.022 (controlled substance crime in the
second degree); 152.023 (controlled substance crime in the third degree); 152.024 (controlled
substance crime in the fourth degree); 152.025 (controlled substance crime in the fifth
degree); 152.0261 (importing controlled substances across state borders); 152.0262,
subdivision 1, paragraph (b) (possession of substance with intent to manufacture
methamphetamine); 152.027, subdivision 6, paragraph (c) (sale or possession of synthetic
cannabinoids); 152.096 (conspiracies prohibited); 152.097 (simulated controlled substances);
152.136 (anhydrous ammonia; prohibited conduct; criminal penalties; civil liabilities);
152.137 (fentanyl- and methamphetamine-related crimes involving children or vulnerable
adults); 169A.24 (felony first-degree driving while impaired); 243.166 (violation of predatory
offender registration requirements); 609.2113 (criminal vehicular operation; bodily harm);
609.2114 (criminal vehicular operation; unborn child); 609.228 (great bodily harm caused
by distribution of drugs); 609.2325 (criminal abuse of a vulnerable adult not resulting in
the death of a vulnerable adult); 609.233 (criminal neglect); 609.235 (use of drugs to injure
or facilitate a crime); 609.24 (simple robbery); 609.247, subdivision 4 (carjacking in the
third degree); 609.322, subdivision 1a (solicitation, inducement, and promotion of
prostitution; sex trafficking in the second degree); 609.498, subdivision 1 (tampering with
a witness in the first degree); 609.498, subdivision 1b (aggravated first-degree witness
tampering); 609.562 (arson in the second degree); 609.563 (arson in the third degree);
609.582, subdivision 2 (burglary in the second degree); 609.66 (felony dangerous weapons);
609.687 (adulteration); 609.713 (terroristic threats); 609.749, subdivision 3, 4, or 5
(felony-level harassment or stalking); 609.855, subdivision 5 (shooting at or in a public
transit vehicle or facility); or 624.713 (certain people not to possess firearms).
(e) Notwithstanding subdivisions 1 to 4new text begin , 4b, and 4cnew text end , except as provided in paragraph
(a), for a background study affiliated with a licensed family child foster care license, an
individual is disqualified under section 245C.14 if fewer than five years have passed since:
(1) a felony-level violation for an act not against or involving a minor that constitutes:
section 609.222 (assault in the second degree); 609.223, subdivision 1 (assault in the third
degree); 609.2231 (assault in the fourth degree); or 609.224, subdivision 4 (assault in the
fifth degree);
(2) a violation of an order for protection under section 518B.01, subdivision 14;
(3) a determination or disposition of the individual's failure to make required reports
under section 260E.06 or 626.557, subdivision 3, for incidents in which the final disposition
under chapter 260E or section 626.557 was substantiated maltreatment and the maltreatment
was recurring or serious;
(4) a determination or disposition of the individual's substantiated serious or recurring
maltreatment of a minor under chapter 260E, a vulnerable adult under section 626.557, or
serious or recurring maltreatment in any other state, the elements of which are substantially
similar to the elements of maltreatment under chapter 260E or section 626.557 and meet
the definition of serious maltreatment or recurring maltreatment;
(5) a gross misdemeanor-level violation for sections: 609.224, subdivision 2 (assault in
the fifth degree); 609.2242 and 609.2243 (domestic assault); 609.233 (criminal neglect);
609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child);
609.746 (interference with privacy); 609.749 (stalking); or 617.23 (indecent exposure); or
(6) committing an act against or involving a minor that resulted in a misdemeanor-level
violation of section 609.224, subdivision 1 (assault in the fifth degree).
(f) For purposes of this subdivision, the disqualification begins from:
(1) the date of the alleged violation, if the individual was not convicted;
(2) the date of conviction, if the individual was convicted of the violation but not
committed to the custody of the commissioner of corrections; or
(3) the date of release from prison, if the individual was convicted of the violation and
committed to the custody of the commissioner of corrections.
Notwithstanding clause (3), if the individual is subsequently reincarcerated for a violation
of the individual's supervised release, the disqualification begins from the date of release
from the subsequent incarceration.
(g) An individual's aiding and abetting, attempt, or conspiracy to commit any of the
offenses listed in paragraphs (a) and (b), as each of these offenses is defined in Minnesota
Statutes, permanently disqualifies the individual under section 245C.14. An individual is
disqualified under section 245C.14 if fewer than five years have passed since the individual's
aiding and abetting, attempt, or conspiracy to commit any of the offenses listed in paragraphs
(d) and (e).
(h) An individual's offense in any other state or country, where the elements of the
offense are substantially similar to any of the offenses listed in paragraphs (a) and (b),
permanently disqualifies the individual under section 245C.14. An individual is disqualified
under section 245C.14 if fewer than five years have passed since an offense in any other
state or country, the elements of which are substantially similar to the elements of any
offense listed in paragraphs (d) and (e).
Sec. 22.
Minnesota Statutes 2025 Supplement, section 245C.22, subdivision 5, is amended
to read:
Subd. 5.
Scope of set-aside.
(a) If the commissioner sets aside a disqualification under
this section, the disqualified individual remains disqualified, but may hold a license and
have direct contact with or access to persons receiving services. Except as provided in
paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the
licensed program, applicant, or agency specified in the set aside notice under section 245C.23.
For personal care provider organizations, financial management services organizations,
community first services and supports organizations, unlicensed home and community-based
organizations, and consumer-directed community supports organizations, the commissioner's
set-aside may further be limited to a specific individual who is receiving services. For new
background studies required under section 245C.04, subdivision 1, paragraph deleted text begin (h)deleted text end new text begin (g)new text end , if an
individual's disqualification was previously set aside for the license holder's program and
the new background study results in no new information that indicates the individual may
pose a risk of harm to persons receiving services from the license holder, the previous
set-aside shall remain in effect.
(b) If the commissioner has previously set aside an individual's disqualification for one
or more programs or agencies, and the individual is the subject of a subsequent background
study for a different program or agency, the commissioner shall determine whether the
disqualification is set aside for the program or agency that initiated the subsequent
background study. A notice of a set-aside under paragraph (c) shall be issued within 15
working days if all of the following criteria are met:
(1) the subsequent background study was initiated in connection with a program licensed
or regulated under the same provisions of law and rule for at least one program for which
the individual's disqualification was previously set aside by the commissioner;
(2) the individual is not disqualified for an offense specified in section 245C.15,
subdivision 1 or 2;
(3) the commissioner has received no new information to indicate that the individual
may pose a risk of harm to any person served by the program; and
(4) the previous set-aside was not limited to a specific person receiving services.
(c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the
substance use disorder field, if the commissioner has previously set aside an individual's
disqualification for one or more programs or agencies in the substance use disorder treatment
field, and the individual is the subject of a subsequent background study for a different
program or agency in the substance use disorder treatment field, the commissioner shall set
aside the disqualification for the program or agency in the substance use disorder treatment
field that initiated the subsequent background study when the criteria under paragraph (b),
clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified
in section 245C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued
within 15 working days.
(d) When a disqualification is set aside under paragraph (b), the notice of background
study results issued under section 245C.17, in addition to the requirements under section
245C.17, shall state that the disqualification is set aside for the program or agency that
initiated the subsequent background study. The notice must inform the individual that the
individual may request reconsideration of the disqualification under section 245C.21 on the
basis that the information used to disqualify the individual is incorrect.
Sec. 23.
Minnesota Statutes 2024, section 245C.24, subdivision 2, is amended to read:
Subd. 2.
Permanent bar to set aside a disqualification.
(a) Except as provided in
paragraphs (b) to deleted text begin (g)deleted text end new text begin (f)new text end , the commissioner may not set aside the disqualification of any
individual disqualified pursuant to this chapter, regardless of how much time has passed,
if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision
1.
(b) For an individual in the substance use disorder or corrections field who was
disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose
disqualification was set aside prior to July 1, 2005, the commissioner must consider granting
a variance pursuant to section 245C.30 for the license holder for a program dealing primarily
with adults. A request for reconsideration evaluated under this paragraph must include a
letter of recommendation from the license holder that was subject to the prior set-aside
decision addressing the individual's quality of care to children or vulnerable adults and the
circumstances of the individual's departure from that service.
(c) If an individual who requires a background study for nonemergency medical
transportation services under section 245C.03, subdivision 12, was disqualified for a crime
or conduct listed under section 245C.15, subdivision 1, and if more than 40 years have
passed since the discharge of the sentence imposed, the commissioner may consider granting
a set-aside pursuant to section 245C.22. A request for reconsideration evaluated under this
paragraph must include a letter of recommendation from the employer. This paragraph does
not apply to a person disqualified based on a violation of sections 243.166; 609.185 to
609.205; 609.25; 609.342 to 609.3453; 609.352; 617.23, subdivision 2, clause (1), or 3,
clause (1); 617.246; or 617.247.
(d) When a licensed foster care provider adopts an individual who had received foster
care services from the provider for over six months, and the adopted individual is required
to receive a background study under section 245C.03, subdivision 1, paragraph (a), clause
(2) or (6), the commissioner may grant a variance to the license holder under section 245C.30
to permit the adopted individual with a permanent disqualification to remain affiliated with
the license holder under the conditions of the variance when the variance is recommended
by the county of responsibility for each of the remaining individuals in placement in the
home and the licensing agency for the home.
(e) For an individual 18 years of age or older affiliated with a licensed family foster
setting, the commissioner must not set aside or grant a variance for the disqualification of
any individual disqualified pursuant to this chapter, regardless of how much time has passed,
if the individual was disqualified for a crime or conduct listed in section 245C.15, subdivision
4a, paragraphs (a) and (b).
(f) In connection with a family foster setting license, the commissioner may grant a
variance to the disqualification for an individual who is under 18 years of age at the time
the background study is submitted.
deleted text begin
(g) In connection with foster residence settings and children's residential facilities, the
commissioner must not set aside or grant a variance for the disqualification of any individual
disqualified pursuant to this chapter, regardless of how much time has passed, if the individual
was disqualified for a crime or conduct listed in section 245C.15, subdivision 4a, paragraph
(a) or (b).
deleted text end
Sec. 24.
Minnesota Statutes 2024, section 245D.04, subdivision 3, is amended to read:
Subd. 3.
Protection-related rights.
(a) A person's protection-related rights include the
right to:
(1) have personal, financial, service, health, and medical information kept private, and
be advised of disclosure of this information by the license holder;
(2) access records and recorded information about the person in accordance with
applicable state and federal law, regulation, or rule;
(3) be free from maltreatment;
(4) be free from restraint, time out, seclusion, restrictive intervention, or other prohibited
procedure identified in section 245D.06, subdivision 5, or successor provisions, except for:
(i) emergency use of manual restraint to protect the person from imminent danger to self
or others according to the requirements in section 245D.061 or successor provisions; or (ii)
the use of safety interventions as part of a positive support transition plan under section
245D.06, subdivision 8, or successor provisions;
(5) receive services in a clean and safe environment when the license holder is the owner,
lessor, or tenant of the service site;
(6) be treated with courtesy and respect and receive respectful treatment of the person's
property;
(7) reasonable observance of cultural and ethnic practice and religion;
(8) be free from bias and harassment regarding race, gender, age, disability, spirituality,
and sexual orientation;
(9) be informed of and use the license holder's grievance policy and procedures, including
knowing how to contact persons responsible for addressing problems and to appeal under
section 256.045;
(10) know the name, telephone number, and the website, email, and street addresses of
protection and advocacy services, including the appropriate state-appointed ombudsman,
and a brief description of how to file a complaint with these offices;
(11) assert these rights personally, or have them asserted by the person's family,
authorized representative, or legal representative, without retaliation;
(12) give or withhold written informed consent to participate in any research or
experimental treatment;
(13) associate with other persons of the person's choice in the community;
(14) personal privacy, including the right to use the lock on the person's bedroom or unit
door;
(15) engage in chosen activities; and
(16) access to the person's personal possessions at any time, including financial resources.
(b) For a person residing in a residential site licensed according to chapter 245A, or
where the license holder is the owner, lessor, or tenant of the residential service site,
protection-related rights also include the right to:
(1) have daily, private access to and use of a non-coin-operated telephone for local calls
and long-distance calls made collect or paid for by the person;
(2) receive and send, without interference, uncensored, unopened mail or electronic
correspondence or communication;
(3) have use of and free access to common areas in the residence and the freedom to
come and go from the residence at will;
(4) choose the person's visitors and time of visits and have privacy for visits with the
person's spouse, next of kin, legal counsel, religious adviser, or others, in accordance with
section 363A.09 of the Human Rights Act, including privacy in the person's bedroom;
(5) have access to three nutritionally balanced meals and nutritious snacks between
meals each day;
(6) have freedom and support to access food and potable water at any time;
(7) have the freedom to furnish and decorate the person's bedroom or living unit;
(8) a setting that is clean and free from accumulation of dirt, grease, garbage, peeling
paint, mold, vermin, and insects;
(9) a setting that is free from hazards that threaten the person's health or safety; and
(10) a setting that meets the definition of a dwelling unit within a residential occupancy
as defined in the State Fire Code.
(c) Restriction of a person's rights under paragraph (a), clauses (13) to (16), or paragraph
(b)new text begin , clauses (1) to (7),new text end is allowed only if determined necessary to ensure the health, safety,
and well-being of the person. Any restriction of those rights must be documented in the
person's support plan or support plan addendum. The restriction must be implemented in
the least restrictive alternative manner necessary to protect the person and provide support
to reduce or eliminate the need for the restriction in the most integrated setting and inclusive
manner. The documentation must include the following information:
(1) the justification for the restriction based on an assessment of the person's vulnerability
related to exercising the right without restriction;
(2) the objective measures set as conditions for ending the restriction;
(3) a schedule for reviewing the need for the restriction based on the conditions for
ending the restriction to occur semiannually from the date of initial approval, at a minimum,
or more frequently if requested by the person, the person's legal representative, if any, and
case manager; and
(4) signed and dated approval for the restriction from the person, or the person's legal
representative, if any. A restriction may be implemented only when the required approval
has been obtained. Approval may be withdrawn at any time. If approval is withdrawn, the
right must be immediately and fully restored.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 25.
Minnesota Statutes 2024, section 245D.10, subdivision 4, is amended to read:
Subd. 4.
Availability of current written policies and procedures.
(a) The license
holder must review and update, as needed, the written policies and procedures required
under this chapter.
(b)(1) The license holder must inform the person new text begin or the person's legal representative new text end and
case manager of the policies and procedures affecting a person's rights under section 245D.04,
and provide copies of those policies and procedures, within five working days of service
initiation.
(2) If a license holder only provides basic services and supports, this includes the:
(i) grievance policy and procedure required under subdivision 2; deleted text begin and
deleted text end
(ii) service suspension and termination policy and procedure required under subdivision
3deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(iii) emergency use of manual restraints policy and procedure required under section
245D.061, subdivision 9, or successor provisions.
new text end
(3) For all other license holders this includes the:
(i) policies and procedures in clause (2);new text begin and
new text end
deleted text begin
(ii) emergency use of manual restraints policy and procedure required under section
245D.061, subdivision 9, or successor provisions; and
deleted text end
deleted text begin (iii)deleted text end new text begin (ii)new text end data privacy requirements under section 245D.11, subdivision 3.
(c) The license holder must provide a written notice to all persons or their legal
representatives and case managers at least 30 days before implementing any procedural
revisions to policies affecting a person's service-related or protection-related rights under
section 245D.04 and maltreatment reporting policies and procedures. The notice must
explain the revision that was made and include a copy of the revised policy and procedure.
The license holder must document the reasonable cause for not providing the notice at least
30 days before implementing the revisions.
(d) Before implementing revisions to required policies and procedures, the license holder
must inform all employees of the revisions and provide training on implementation of the
revised policies and procedures.
(e) The license holder must annually notify all persons, or their legal representatives,
and case managers of any procedural revisions to policies required under this chapter, other
than those in paragraph (c). Upon request, the license holder must provide the person, or
the person's legal representative, and case manager with copies of the revised policies and
procedures.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 26.
Minnesota Statutes 2024, section 256B.02, is amended by adding a subdivision
to read:
new text begin Subd. 20. new text end
new text begin Fraud. new text end
new text begin
"Fraud" means an intentional deception or misrepresentation made by
a person with the knowledge that the deception could result in an unauthorized benefit to
the person or another person. Fraud includes:
new text end
new text begin
(1) the following crimes, including attempts or conspiracy to commit the crimes:
new text end
new text begin
(i) theft in violation of section 609.52;
new text end
new text begin
(ii) perjury in violation of section 609.48;
new text end
new text begin
(iii) aggravated forgery and forgery in violation of sections 609.625 and 609.63;
new text end
new text begin
(iv) medical assistance fraud in violation of section 609.466;
new text end
new text begin
(v) financial transaction card fraud in violation of section 609.821;
new text end
new text begin
(vi) wrongfully obtaining assistance in violation of section 256.98;
new text end
new text begin
(vii) illegal remunerations in violation of section 609.542; and
new text end
new text begin
(viii) a felony listed in United States Code, title 42, section 1320a-7b(b)(1) or (2), subject
to any safe harbors established in Code of Federal Regulations, title 42, part 1001, section
952;
new text end
new text begin
(2) any act that constitutes fraud under applicable federal or state law, including but not
limited to knowingly and willfully submitting an application for provider status that is false
or fraudulent in whole or in part; and
new text end
new text begin
(3) an intentional submission of a claim for reimbursement under chapter 256B, knowing
or having reason to know the claim is ineligible for reimbursement in whole or in part and
acting with the intent to defraud the payor.
new text end
Sec. 27.
Minnesota Statutes 2024, section 256B.04, subdivision 10, is amended to read:
Subd. 10.
Investigation of certain claims.
new text begin The commissioner must new text end establish by rule
general criteria and procedures for the identification and prompt investigation of suspected
medical assistance fraud, theft, abuse, presentment of false or duplicate claims, presentment
of claims for services not new text begin reasonable or new text end medically necessary, or false statement or
representation of material facts by a vendor of medical caredeleted text begin , and for the imposition of
sanctions against a vendor of medical caredeleted text end . new text begin The commissioner may utilize both prepayment
and postpayment review systems to review claims submitted by vendors. Payment of claims,
including payments made after a prepayment review, does not prohibit the commissioner
from completing a postpayment claims review and taking additional administrative actions
or monetary recovery against a vendor. new text end If it appears to the state agency that a vendor of
medical care may have acted in a manner warranting civil or criminal proceedings, it shall
so inform the attorney general in writing.
Sec. 28.
Minnesota Statutes 2024, section 256B.064, subdivision 2, is amended to read:
Subd. 2.
Imposition of monetary recovery and sanctions.
(a) The commissioner shall
determine any monetary amounts to be recovered and sanctions to be imposed upon an
individual or entity under this section. Except as provided in paragraphs (b) and (d), neither
a monetary recovery nor a sanction will be imposed by the commissioner without prior
notice and an opportunity for a hearing, according to chapter 14, on the commissioner's
proposed action, provided that the commissioner may suspend or reduce payment to an
individual or entity, except a nursing home or convalescent care facility, after notice and
prior to the hearing if in the commissioner's opinion that action is necessary to protect the
public welfare and the interests of the program.
(b) Except when the commissioner finds good cause not to suspend payments under
Code of Federal Regulations, title 42, section 455.23(e) or (f), the commissioner shall
withhold or reduce payments to an individual or entity without providing advance notice
of such withholding or reduction if either of the following occurs:
(1) the individual or entity is convicted of a crime involving the conduct described in
subdivision 1a; or
(2) the commissioner determines there is a credible allegation of fraud for which an
investigation is pending under the program. Allegations are considered credible when they
have an indicium of reliability and the state agency has reviewed all allegations, facts, and
evidence carefully and acts judiciously on a case-by-case basis. A credible allegation of
fraud is an allegation which has been verified by the state, from any source, including but
not limited to:
(i) fraud hotline complaints;
(ii) claims data mining; and
(iii) patterns identified through provider audits, civil false claims cases, and law
enforcement investigations.
(c) The commissioner must send notice of the withholding or reduction of payments
under paragraph (b) within five days of taking such action unless requested in writing by a
law enforcement agency to temporarily withhold the notice. The notice must:
(1) state that payments are being withheld according to paragraph (b);
(2) set forth the general allegations as to the nature of the withholding action, but need
not disclose any specific information concerning an ongoing investigation;
(3) except in the case of a conviction for conduct described in subdivision 1a, state that
the withholding is for a temporary period and cite the circumstances under which withholding
will be terminated;
(4) identify the types of claims to which the withholding applies; and
(5) inform the individual or entity of the right to submit written evidence for consideration
by the commissioner.
new text begin
The withholding of payments under paragraph (b) is a temporary action and is not subject
to a contested case for the purposes of chapter 14 nor subject to appeal under section 256.045.
new text end
(d) The withholding or reduction of payments will not continue after the commissioner
determines there is insufficient evidence of fraud by the individual or entity, or after legal
proceedings relating to the alleged fraud are completed, unless the commissioner has sent
notice of intention to impose monetary recovery or sanctions under paragraph (a). Upon
conviction for a crime related to the provision, management, or administration of a health
service under medical assistance, a payment held pursuant to this section by the commissioner
or a managed care organization that contracts with the commissioner under section 256B.035
is forfeited to the commissioner or managed care organization, regardless of the amount
charged in the criminal complaint or the amount of criminal restitution ordered.
(e) The commissioner shall suspend or terminate an individual's or entity's participation
in the program without providing advance notice and an opportunity for a hearing when the
suspension or termination is required because of the individual's or entity's exclusion from
participation in Medicare. Within five days of taking such action, the commissioner must
send notice of the suspension or termination. The notice must:
(1) state that suspension or termination is the result of the individual's or entity's exclusion
from Medicare;
(2) identify the effective date of the suspension or termination; and
(3) inform the individual or entity of the need to be reinstated to Medicare before
reapplying for participation in the program.
(f) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is
to be imposed, an individual or entity may request a contested case, as defined in section
14.02, subdivision 3, by filing with the commissioner a written request of appeal. The appeal
request must be received by the commissioner no later than 30 days after the date the
notification of monetary recovery or sanction was mailed to the individual or entity. The
appeal request must specify:
(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount
involved for each disputed item;
(2) the computation that the individual or entity believes is correct;
(3) the authority in statute or rule upon which the individual or entity relies for each
disputed item;
(4) the name and address of the person or entity with whom contacts may be made
regarding the appeal; and
(5) other information required by the commissioner.
(g) The commissioner may order an individual or entity to forfeit a fine for failure to
fully document services according to standards in this chapter and Minnesota Rules, chapter
9505. The commissioner may assess fines if specific required components of documentation
are missing. The fine for incomplete documentation shall equal 20 percent of the amount
paid on the claims for reimbursement submitted by the individual or entity, or up to $5,000,
whichever is less. If the commissioner determines that an individual or entity repeatedly
violated this chapter, chapter 254B or 245G, or Minnesota Rules, chapter 9505, related to
the provision of services to program recipients and the submission of claims for payment,
the commissioner may order an individual or entity to forfeit a fine based on the nature,
severity, and chronicity of the violations, in an amount of up to $5,000 or 20 percent of the
value of the claims, whichever is greater.
(h) The individual or entity shall pay the fine assessed on or before the payment date
specified. If the individual or entity fails to pay the fine, the commissioner may withhold
or reduce payments and recover the amount of the fine. A timely appeal shall stay payment
of the fine until the commissioner issues a final order.
new text begin
(i) Section 15.013 does not apply to the commissioner taking action under this section.
new text end
Sec. 29.
Minnesota Statutes 2024, section 256B.27, subdivision 3, is amended to read:
Subd. 3.
Access to medical records.
The commissioner of human services, with the
written consent of the recipient, on file with the local welfare agency, shall be allowed
access in the manner and within the time prescribed by the commissioner to all personal
medical records of medical assistance recipients solely for the purposes of investigating
whether or not: (a) a vendor of medical care has submitted a claim for reimbursement, a
cost report or a rate application which is duplicative, erroneous, or false in whole or in part,
or which results in the vendor obtaining greater compensation than the vendor is legally
entitled to; or (b) the medical care was medically necessary. deleted text begin When the commissioner is
investigating a possible overpayment of Medicaid funds,deleted text end new text begin The commissioner may conduct
on-site inspections of any and all vendors and service locations or may request records from
a vendor to verify that information submitted to the commissioner is accurate, determine
compliance with service delivery and billing requirements, and determine compliance with
any other applicable laws or rules.new text end The commissioner must be given immediate access
without prior notice to the vendor's office during regular business hours and to documentation
and records related to services provided and submission of claims for services provided.
The department shall document in writing the need for immediate access to records related
to a specific investigation. Denying the commissioner access to records is cause for the
vendor's immediate suspension of payment or termination according to section 256B.064.
The determination of provision of services not medically necessary shall be made by the
commissioner. Notwithstanding any other law to the contrary, a vendor of medical care
shall not be subject to any civil or criminal liability for providing access to medical records
to the commissioner of human services pursuant to this section.
Sec. 30.
Minnesota Statutes 2025 Supplement, section 260E.03, subdivision 6, is amended
to read:
Subd. 6.
Facility.
"Facility" means:
(1) a licensed or unlicensed day care facility, certified license-exempt child care center,
residential facility, agency, new text begin psychiatric residential treatment facility, new text end hospital, sanitarium,
or other facility or institution required to be licensed under sections 144.50 to 144.58,
241.021, or 245A.01 to 245A.16, or chapter 142B, 142C, 144H, or 245D;
(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E;
or
(3) a nonlicensed personal care provider organization as defined in section 256B.0625,
subdivision 19a.
Sec. 31.
Minnesota Statutes 2025 Supplement, section 260E.11, subdivision 1, is amended
to read:
Subdivision 1.
Reports of maltreatment in facility.
A person mandated to report child
maltreatment occurring within a licensed facility shall report the information to the agency
responsible for licensing or certifying the facility under sections 144.50 to 144.58, 241.021,
and 245A.01 to 245A.16 or chapter 142B, 142C, 144H, or 245D or to a nonlicensed personal
care provider organization as defined in section 256B.0625, subdivision 19a.new text begin A person
mandated to report child maltreatment occurring within a federally certified psychiatric
residential treatment facility must report the information to the Department of Health.
new text end
Sec. 32.
Minnesota Statutes 2025 Supplement, section 260E.14, subdivision 1, is amended
to read:
Subdivision 1.
Facilities and schools.
(a) The local welfare agency is the agency
responsible for investigating allegations of maltreatment in child foster care, family child
care, legally nonlicensed child care, and reports involving children served by an unlicensed
personal care provider organization under section 256B.0659. Copies of findings related to
personal care provider organizations under section 256B.0659 must be forwarded to the
Department of Human Services provider enrollment.
(b) The Department of Human Services is the agency responsible for screening and
investigating allegations of maltreatment in juvenile correctional facilities listed under
section 241.021 located in the local welfare agency's county and in facilities licensed or
certified under chapters 245A and 245Dnew text begin , except federally certified psychiatric residential
treatment facilitiesnew text end .
(c) The Department of Health is the agency responsible for screening and investigating
allegations of maltreatment in facilities licensed under sections 144.50 to 144.58 and 144A.43
to 144A.482 deleted text begin ordeleted text end new text begin ,new text end chapter 144Hnew text begin , or federally certified as a psychiatric residential treatment
facilitynew text end .
(d) The Department of Education is the agency responsible for screening and investigating
allegations of maltreatment in a school as defined in section 120A.05, subdivisions 9, 11,
and 13, and chapter 124E. The Department of Education's responsibility to screen and
investigate includes allegations of maltreatment involving students 18 through 21 years of
age, including students receiving special education services, up to and including graduation
and the issuance of a secondary or high school diploma.
(e) The Department of Human Services is the agency responsible for screening and
investigating allegations of maltreatment of minors in an EIDBI agency operating under
sections 245A.142 and 256B.0949.
(f) A health or corrections agency receiving a report may request the local welfare agency
to provide assistance pursuant to this section and sections 260E.20 and 260E.22.
(g) The Department of Children, Youth, and Families is the agency responsible for
screening and investigating allegations of maltreatment in facilities or programs not listed
in paragraph (a) that are licensed or certified under chapters 142B and 142C.
Sec. 33.
Minnesota Statutes 2025 Supplement, section 626.5572, subdivision 13, is amended
to read:
Subd. 13.
Lead investigative agency.
"Lead investigative agency" is the primary
administrative agency responsible for investigating reports made under section 626.557.
(a) The Department of Health is the lead investigative agency for facilities or services
licensed or required to be licensed as hospitals, home care providers, nursing homes, boarding
care homes, hospice providers, residential facilities that are also federally certified as
intermediate care facilities that serve people with developmental disabilities, new text begin federally
certified psychiatric residential treatment facilities, new text end or any other facility or service not listed
in this subdivision that is licensed or required to be licensed by the Department of Health
for the care of vulnerable adults. "Home care provider" has the meaning provided in section
144A.43, subdivision 4, and applies when care or services are delivered in the vulnerable
adult's home.
(b) The Department of Human Services is the lead investigative agency for facilities or
services licensed or required to be licensed as adult day care, adult foster care, community
residential settings, programs for people with disabilities, EIDBI agencies, family adult day
services, mental health programs, mental health clinics, substance use disorder programs,
the Minnesota Sex Offender Program, or any other facility or service not listed in this
subdivision that is licensed or required to be licensed by the Department of Human Servicesnew text begin ,
except federally certified psychiatric residential treatment facilitiesnew text end . The Department of
Human Services is also the lead investigative agency for unlicensed EIDBI agencies under
section 256B.0949.
(c) The county social service agency or its designee is the lead investigative agency for
all other reports, including but not limited to reports involving vulnerable adults receiving
services from a personal care provider organization under section 256B.0659.
Sec. 34. new text begin NEW BACKGROUND STUDIES FOR INDIVIDUALS NOT IN NETSTUDY
2.0.
new text end
new text begin
By March 1, 2027, the commissioner of human services and counties must conduct new
background studies for all individuals specified under Minnesota Statutes, section 245C.03,
subdivision 1, paragraph (a), clauses (2) to (6), and affiliated with a child foster family
setting license holder, adult foster care or family adult day services and with a family child
care license holder, or a legal nonlicensed child care provider authorized under Minnesota
Statutes, chapter 142E. The commissioner or county must follow the requirements in
Minnesota Statutes, section 245C.04, subdivision 1, paragraphs (e) and (f), when conducting
the background studies under this section. The new background studies must be submitted
through NETStudy 2.0.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective September 1, 2026.
new text end
Sec. 35. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2024, section 245A.02, subdivision 10b,
new text end
new text begin
is repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Statutes 2025 Supplement, section 245A.10, subdivision 3a,
new text end
new text begin
is repealed.
new text end
new text begin
(c)
new text end
new text begin
Minnesota Rules, part 9505.2165, subpart 4,
new text end
new text begin
is repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: 26-06084
245A.02 DEFINITIONS.
Subd. 10b.
Owner.
"Owner" means an individual or organization that has a direct or indirect ownership interest of five percent or more in a program licensed under this chapter. For purposes of this subdivision, "direct ownership interest" means the possession of equity in capital, stock, or profits of an organization, and "indirect ownership interest" means a direct ownership interest in an entity that has a direct or indirect ownership interest in a licensed program. For purposes of this chapter, "owner of an employee stock ownership plan" means the president and treasurer of the entity. A government entity or nonprofit corporation that is issued a license under this chapter shall be designated the owner.
245A.10 FEES.
Subd. 3a.
Fee for change of ownership exception.
(a) A license holder must submit a fee of $2,100 for each license subject to the change in ownership exception under section 245A.043, subdivision 2, paragraph (b).
(b) License holders under chapter 245D must submit a fee of $4,200 for each license subject to the change in ownership exception under section 245A.043, subdivision 2, paragraph (b).
(c) A license holder for a children's residential facility must submit a fee of $500 for each license subject to the change in ownership exception under section 245A.043, subdivision 2, paragraph (b).
Repealed Minnesota Rule: 26-06084
9505.2165 DEFINITIONS.
Subp. 4.
Fraud.
"Fraud" means:
A.
acts which constitute a crime against any program, or attempts or conspiracies to commit those crimes, including the following:
B.
making a false statement, false claim, or false representation to a program where the person knows or should reasonably know the statement, claim, or representation is false, including knowingly and willfully submitting a false or fraudulent application for provider status; and
C.
a felony listed in United States Code, title 42, section 1320a-7b(b)(3)(D), subject to any safe harbors established in Code of Federal Regulations, title 42, part 1001, section 952.