SF 4279

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/24/2026 10:45 a.m.

A bill for an act
relating to human services; modifying location requirements for assisted living
facilities with a licensed resident capacity of six or fewer persons and licensed
residential programs; modifying permissible relocations of assisted living facilities;
allowing the commissioners of health and human services to delegate authority to
county agencies and local units of government to conduct certain inspections;
modifying notification requirements to affected political subdivisions for certain
licenses issued by the commissioners of health and human services; modifying
report and notification requirements for reports of maltreatment of vulnerable
adults; amending Minnesota Statutes 2024, sections 144G.15; 144G.16, by adding
a subdivision; 144G.195, subdivision 1; 144G.45, subdivision 3; 245A.04,
subdivisions 2, 2a; 245A.11, subdivision 4; 626.557, subdivision 9c.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 144G.15, is amended to read:

144G.15 CONSIDERATION OF APPLICATIONS.

new text begin Subdivision 1. new text end

new text begin Consideration. new text end

(a) Before issuing a provisional license or license or
renewing a license, the commissioner shall consider an applicant's compliance history in
providing care in this state or any other state in a facility that provides care to children, the
elderly, ill individuals, or individuals with disabilities. new text begin Before issuing a provisional license
or a new license for an assisted living facility with a licensed resident capacity of six or
fewer, the commissioner shall also consider the facility's proximity to other assisted living
facilities and residential programs as specified in subdivision 3.
new text end

(b) The applicant's compliance history shall include repeat violation, rule violations, and
any license or certification involuntarily suspended or terminated during an enforcement
process.

new text begin Subd. 2. new text end

new text begin Grounds for licensing action. new text end

deleted text begin (c) deleted text end The commissioner may deny, revoke, suspend,
restrict, or refuse to renew the license or impose conditions if:

(1) the applicant fails to provide complete and accurate information on the application
and the commissioner concludes that the missing or corrected information is needed to
determine if a license shall be granted;

(2) the applicant, knowingly or with reason to know, made a false statement of a material
fact in an application for the license or any data attached to the application or in any matter
under investigation by the department;

(3) the applicant refused to allow agents of the commissioner to inspect its books, records,
and files related to the license application, or any portion of the premises;

(4) the applicant willfully prevented, interfered with, or attempted to impede in any way:
(i) the work of any authorized representative of the commissioner, the ombudsman for
long-term care, or the ombudsman for mental health and developmental disabilities; or (ii)
the duties of the commissioner, local law enforcement, city or county attorneys, adult
protection, county case managers, or other local government personnel;

(5) the applicant, owner, controlling individual, managerial official, or assisted living
director for the facility has a history of noncompliance with federal or state regulations that
were detrimental to the health, welfare, or safety of a resident or a client; or

(6) the applicant violates any requirement in this chapter.

new text begin Subd. 3. new text end

new text begin Proximity to other licensed facilities. new text end

new text begin (a) The commissioner must not grant
a provisional license or a new license for an assisted living facility with a licensed resident
capacity of six or fewer that will be located within 650 feet of an existing assisted living
facility with a licensed resident capacity of six or fewer or an existing residential program
licensed under chapter 245A.
new text end

new text begin (b) Notwithstanding paragraph (a), the commissioner may grant a provisional license
or a new license for an assisted living facility with a licensed resident capacity of six or
fewer that will be located within 650 feet of an existing assisted living facility with a licensed
resident capacity of six or fewer or an existing residential program licensed under chapter
245A if:
new text end

new text begin (1) the existing residential program is located in a hospital licensed by the commissioner;
new text end

new text begin (2) the town, municipality, or county zoning authority grants the assisted living facility
an interim use or special use permit; or
new text end

new text begin (3) the assisted living facility submits an application for certificate of need developed
by the commissioner and the commissioner approves the certificate of need.
new text end

new text begin Subd. 4. new text end

new text begin Reconsideration rights. new text end

deleted text begin (d) deleted text end If a license is denied, the applicant has the
reconsideration rights available under section 144G.16, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027, and applies to
applications for a provisional license or a new license submitted on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2024, section 144G.16, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Notice to affected municipality. new text end

new text begin (a) No later than ten calendar days after
issuing a provisional license or a new facility license to an assisted living facility with a
licensed resident capacity of six or fewer, the commissioner must provide the following
information about the provisional licensee or licensee and the facility to the affected
municipality or other political subdivision:
new text end

new text begin (1) business name of the provisional licensee or licensee;
new text end

new text begin (2) street address of the facility;
new text end

new text begin (3) license category;
new text end

new text begin (4) licensed resident capacity; and
new text end

new text begin (5) contact information for an authorized agent of the provisional licensee or licensee.
new text end

new text begin (b) The commissioner may provide notice through electronic communication or by
submitting a written document to the official address of the municipality or other political
subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to provisional
licenses and facility licenses issued on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2024, section 144G.195, subdivision 1, is amended to read:

Subdivision 1.

New license not required.

(a) deleted text begin Beginning March 15, 2025, deleted text end An assisted
living facility with a licensed resident capacity of five residents or fewer may operate under
the licensee's current license if the facility is relocated with the approval of the commissioner
of health during the period the current license is valid.

(b) A licensee is not required to apply for a new license solely because the licensee
receives approval to relocate a facility. The licensee's license for the relocated facility
remains valid until the expiration date specified on the existing license. The commissioner
of health must apply the licensing and survey cycle previously established for the facility's
prior location to the facility's new location.

(c) A licensee must notify the commissioner of health, on a form developed by the
commissioner, of the licensee's intent to relocate the licensee's facility and submit a
nonrefundable relocation fee of $3,905. The commissioner must deposit all relocation fees
in the state treasury to be credited to the state government special revenue fund.

(d) The licensee must obtain plan review approval for the building to which the licensee
intends to relocate the facility and a certificate of occupancy from the commissioner of labor
and industry or the commissioner of labor and industry's delegated authority for the building.
Upon issuance of a certificate of occupancy, the commissioner of health must review and
inspect the building to which the licensee intends to relocate the facility and approve or
deny the license relocation within 30 calendar days.

(e) A licensee deleted text begin may only relocate a facility within the geographic boundaries of the
municipality in which the facility is currently located or within the geographic boundaries
of a contiguous municipality deleted text end new text begin located in the seven-county metropolitan area may not relocate
outside of the seven-county metropolitan area. Assisted living facilities located outside of
the seven-county metropolitan area may not relocate more than two hours or 120 miles from
the previous licensed facilities location new text end .

(f) A licensee may only relocate one time in any three-year period, except that the
commissioner may approve an additional relocation within a three-year period upon a
licensee's demonstration of an extenuating circumstance, including but not limited to the
criteria outlined in section 256B.49, subdivision 28a, paragraph (c).

(g) A licensee that receives approval from the commissioner to relocate a facility must
provide each resident with a new assisted living contract and comply with the coordinated
move requirements under section 144G.55.

(h) A licensee denied approval by the commissioner of health to relocate a facility may
continue to operate the facility in its current location, follow the requirements in section
144G.57 and close the facility, or notify the commissioner of health of the licensee's intent
to relocate the facility to an alternative new location. If the licensee notifies the commissioner
of the licensee's intent to relocate the facility to an alternative new location, paragraph (c)
applies, including the timelines for approving or denying the license relocation for the
alternative new location.

Sec. 4.

Minnesota Statutes 2024, section 144G.45, subdivision 3, is amended to read:

Subd. 3.

Local laws apply new text begin ; delegating inspection authority new text end .

new text begin (a) new text end Assisted living facilities
shall comply with all applicable state and local governing laws, regulations, standards,
ordinances, and codes for fire safety, building, and zoning requirements, except a facility
with a licensed resident capacity of six or fewer is exempt from rental licensing regulations
imposed by any town, municipality, or county.

new text begin (b) At the request of a county or local unit of government, the commissioner may delegate
authority to a county agency or local unit of government to inspect an existing assisted
living facility with a licensed resident capacity of six or fewer that is in the jurisdiction of
the county or local unit of government for compliance with applicable building codes, fire
and safety codes, and zoning ordinances. A county agency or local unit of government
conducting an inspection must notify the commissioner of any violations or concerns within
ten working days of the inspection. A county agency or local unit of government that
conducts inspections under this subdivision must not inspect an assisted living facility more
frequently than every six months.
new text end

new text begin (c) The commissioner must ensure that laws, rules, and codes are uniformly enforced
throughout the state by reviewing each county agency and local unit of government
conducting inspections under this subdivision for compliance with this subdivision and
other applicable laws and rules at least every four years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

Sec. 5.

Minnesota Statutes 2024, section 245A.04, subdivision 2, is amended to read:

Subd. 2.

Notification of affected municipality.

The commissioner must not issue a
license under this chapter without giving 30 calendar days' written notice to the affected
municipality or other political subdivision deleted text begin unless the program is considered a permitted
single-family residential use under sections 245A.11 and 245A.14 deleted text end . new text begin The written notice must
include the prospective license holder's name and contact information, the license type and
capacity, and the proposed address of the licensed facility or program. new text end The commissioner
may provide notice through electronic communication. The notification must be given
before the first issuance of a license under this chapter and annually after that time if annual
notification is requested in writing by the affected municipality or other political subdivision.
State funds must not be made available to or be spent by an agency or department of state,
county, or municipal government for payment to a residential or nonresidential program
licensed under this chapter until the provisions of this subdivision have been complied with
in full. The provisions of this subdivision shall not apply to programs located in hospitals.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to licenses
issued on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2024, section 245A.04, subdivision 2a, is amended to read:

Subd. 2a.

Meeting fire and safety codes.

new text begin (a) new text end An applicant or license holder under
sections 245A.01 to 245A.16 must document compliance with applicable building codes,
fire and safety codes, health rules, and zoning ordinances, or document that an appropriate
waiver has been granted.

new text begin (b) At the request of a county or local unit of government, the commissioner may delegate
authority to a county agency or local unit of government to inspect an existing residential
program serving six or fewer persons for compliance with applicable building codes, fire
and safety codes, and zoning ordinances. A county agency or local unit of government
conducting an inspection must notify the commissioner of any violations or concerns within
ten working days of the inspection. A county agency or local unit of government that
conducts inspections under this subdivision must not inspect a residential program more
frequently than every six months.
new text end

new text begin (c) The commissioner must ensure that laws, rules, and codes are uniformly enforced
throughout the state by reviewing each county agency and local unit of government
conducting inspections under this subdivision for compliance with this subdivision and
other applicable laws and rules at least every four years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2027.
new text end

Sec. 7.

Minnesota Statutes 2024, section 245A.11, subdivision 4, is amended to read:

Subd. 4.

Location of residential programs.

new text begin (a) new text end In determining whether to grant a license,
the commissioner shall specifically consider the population, size, land use plan, availability
of community services, and the number and size of existing licensed residential programs
in the town, municipality, or county in which the applicant seeks to operate a residential
program. The commissioner shall not grant an initial license to any residential program if
the residential program will be new text begin located new text end within deleted text begin 1,320 deleted text end new text begin 650 new text end feet of an existing residential
program deleted text begin unless one of the following conditions apply: (1) the existing residential program
is located in a hospital licensed by the commissioner of health; (2) the town, municipality,
or county zoning authority grants the residential program a conditional use or special use
permit; (3) the program serves six or fewer persons and is not located in a city of the first
class; or (4) the program is foster care, or a community residential setting as defined under
section 245D.02, subdivision 4a deleted text end new text begin or assisted living facility with a licensed resident capacity
of six or fewer persons new text end .

new text begin (b) Notwithstanding paragraph (a), the commissioner may grant an initial license to a
residential program that will be located within 650 feet of an existing residential program
or assisted living facility with a licensed resident capacity of six or fewer persons if:
new text end

new text begin (1) the existing residential program is located in a hospital licensed by the commissioner
of health;
new text end

new text begin (2) the town, municipality, or county zoning authority grants the residential program an
interim use or special use permit;
new text end

new text begin (3) the program submits an application for certificate of need developed by the
commissioner and the commissioner approves the certificate of need; or
new text end

new text begin (4) the program is a foster care or a community residential setting as defined under
section 245D.02, subdivision 4a; the program submits an application for a certificate of
need developed by the commissioner; and the commissioner approves the certificate of
need.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to applications
for initial licenses submitted on or after that date.
new text end

Sec. 8.

Minnesota Statutes 2024, section 626.557, subdivision 9c, is amended to read:

Subd. 9c.

Lead investigative agency; notifications, dispositions, determinations.

(a)
Upon request of the reporter, the lead investigative agency shall notify the reporter new text begin and, if
applicable, the vulnerable adult's case manager and the case manager's supervisor, new text end that it
has received the report deleted text begin , deleted text end and provide information on the initial disposition of the report new text begin ,
including the case number assigned to the report, in writing new text end within five business days of
receipt of the report, provided that the notification will not endanger the vulnerable adult
or hamper the investigation. new text begin If the report is accepted for investigation, once the report is
assigned to an investigator the lead investigative agency must notify the reporter and, if
applicable, the vulnerable adult's case manager and the case manager's supervisor of the
name and contact information of the investigator assigned to the case. If the report is not
accepted for adult protective services or investigation, the notification must state the reason
the report was not accepted.
new text end

(b) In making the initial disposition of a report alleging maltreatment of a vulnerable
adult, the lead investigative agency may consider previous reports of suspected maltreatment
and may request and consider public information, records maintained by a lead investigative
agency or licensed providers, and information from any person who may have knowledge
regarding the alleged maltreatment and the basis for the adult's vulnerability.

(c) When the county social service agency does not accept a report for adult protective
services or investigation, the agency may offer assistance to the reporter or the person who
was the subject of the report.

(d) While investigating reports and providing adult protective services, the lead
investigative agency may coordinate with entities identified under subdivision 12b, paragraph
(g), and may coordinate with support persons to safeguard the welfare of the vulnerable
adult and prevent further maltreatment of the vulnerable adult.

(e) Upon conclusion of every investigation it conducts, the lead investigative agency
shall make a final disposition as defined in section 626.5572, subdivision 8.

(f) When determining whether the facility or individual is the responsible party for
substantiated maltreatment or whether both the facility and the individual are responsible
for substantiated maltreatment, the lead investigative agency shall consider at least the
following mitigating factors:

(1) whether the actions of the facility or the individual caregivers were in accordance
with, and followed the terms of, an erroneous physician order, prescription, resident care
plan, or directive. This is not a mitigating factor when the facility or caregiver is responsible
for the issuance of the erroneous order, prescription, plan, or directive or knows or should
have known of the errors and took no reasonable measures to correct the defect before
administering care;

(2) the comparative responsibility between the facility, other caregivers, and requirements
placed upon the employee, including but not limited to, the facility's compliance with related
regulatory standards and factors such as the adequacy of facility policies and procedures,
the adequacy of facility training, the adequacy of an individual's participation in the training,
the adequacy of caregiver supervision, the adequacy of facility staffing levels, and a
consideration of the scope of the individual employee's authority; and

(3) whether the facility or individual followed professional standards in exercising
professional judgment.

(g) When substantiated maltreatment is determined to have been committed by an
individual who is also the facility license holder, both the individual and the facility must
be determined responsible for the maltreatment, and both the background study
disqualification standards under section 245C.15, subdivision 4, and the licensing actions
under section 245A.06 or 245A.07 apply.

(h) The lead investigative agency shall complete its final disposition within 60 calendar
days. If the lead investigative agency is unable to complete its final disposition within 60
calendar days, the lead investigative agency shall notify the following persons provided
that the notification will not endanger the vulnerable adult or hamper the investigation: (1)
the vulnerable adult or the vulnerable adult's guardian or health care agent, when known,
if the lead investigative agency knows them to be aware of the investigation; and (2) the
facility, where applicable. The notice shall contain the reason for the delay and the projected
completion date. If the lead investigative agency is unable to complete its final disposition
by a subsequent projected completion date, the lead investigative agency shall again notify
the vulnerable adult or the vulnerable adult's guardian or health care agent, when known if
the lead investigative agency knows them to be aware of the investigation, and the facility,
where applicable, of the reason for the delay and the revised projected completion date
provided that the notification will not endanger the vulnerable adult or hamper the
investigation. The lead investigative agency must notify the health care agent of the
vulnerable adult only if the health care agent's authority to make health care decisions for
the vulnerable adult is currently effective under section 145C.06 and not suspended under
section 524.5-310 and the investigation relates to a duty assigned to the health care agent
by the principal. A lead investigative agency's inability to complete the final disposition
within 60 calendar days or by any projected completion date does not invalidate the final
disposition.

(i) When the lead investigative agency is the Department of Health or the Department
of Human Services, the lead investigative agency shall provide a copy of the public
investigation memorandum under subdivision 12b, paragraph (b), clause (1), within ten
calendar days of completing the final disposition to the following persons:

(1) the vulnerable adult, or the vulnerable adult's guardian or health care agent, if known,
unless the lead investigative agency knows that the notification would endanger the
well-being of the vulnerable adult;

(2) the reporter, if the reporter requested notification when making the report, provided
this notification would not endanger the well-being of the vulnerable adult;

(3) the person or facility alleged responsible for maltreatment, if known;

(4) the facility; and

(5) the ombudsman for long-term care, or the ombudsman for mental health and
developmental disabilities, as appropriate.

(j) When the lead investigative agency is a county agency, within ten calendar days of
completing the final disposition, the lead investigative agency shall provide notification of
the final disposition to the following persons:

(1) the vulnerable adult, or the vulnerable adult's guardian or health care agent, if known,
when the allegation is applicable to the authority of the vulnerable adult's guardian or health
care agent, unless the agency knows that the notification would endanger the well-being of
the vulnerable adult;

(2) the individual determined responsible for maltreatment, if known; and

(3) when the alleged incident involves a personal care assistant or provider agency, the
personal care provider organization under section 256B.0659. Upon implementation of
Community First Services and Supports (CFSS), this notification requirement applies to
the CFSS support worker or CFSS agency under section 256B.85.

(k) If, as a result of a reconsideration, review, or hearing, the lead investigative agency
changes the final disposition, or if a final disposition is changed on appeal, the lead
investigative agency shall notify the parties specified in paragraph (i).

(l) The lead investigative agency shall notify the vulnerable adult who is the subject of
the report or the vulnerable adult's guardian or health care agent, if known, and any person
or facility determined to have maltreated a vulnerable adult, of their appeal or review rights
under this section or section 256.021.

(m) The lead investigative agency shall routinely provide investigation memoranda for
substantiated reports to the appropriate licensing boards. These reports must include the
names of substantiated perpetrators. The lead investigative agency may not provide
investigative memoranda for inconclusive or false reports to the appropriate licensing boards
unless the lead investigative agency's investigation gives reason to believe that there may
have been a violation of the applicable professional practice laws. If the investigation
memorandum is provided to a licensing board, the subject of the investigation memorandum
shall be notified and receive a summary of the investigative findings.

(n) In order to avoid duplication, licensing boards shall consider the findings of the lead
investigative agency in their investigations if they choose to investigate. This does not
preclude licensing boards from considering other information.

(o) The lead investigative agency must provide to the commissioner of human services
its final dispositions, including the names of all substantiated perpetrators. The commissioner
of human services shall establish records to retain the names of substantiated perpetrators.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to reports
submitted on or after that date.
new text end