HF 1801

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 04/01/2019 03:39pm

A bill for an act
relating to early childhood; modifying various policy and finance provisions
governing child care, children and family services, licensing, and program integrity;
making appropriations; amending Minnesota Statutes 2018, sections 13.46,
subdivision 3; 15C.02; 119B.011, subdivisions 19, 20, by adding a subdivision;
119B.02, subdivisions 3, 6, 7; 119B.025, subdivision 1, by adding a subdivision;
119B.03, subdivision 9; 119B.09, subdivisions 1, 7; 119B.095, subdivision 2, by
adding a subdivision; 119B.125, subdivision 6; 119B.13, subdivisions 1, 6, 7;
119B.16, subdivisions 1, 1a, 1b, by adding subdivisions; 124D.142; 124D.165,
subdivision 4; 144.966, subdivision 2; 245.095; 245A.02, subdivisions 3, 8, 9, 12,
14, by adding subdivisions; 245A.03, subdivisions 1, 3; 245A.04, subdivisions 1,
2, 4, 6, 7, 10, by adding a subdivision; 245A.05; 245A.07, subdivisions 1, 2, 2a,
3; 245A.14, by adding a subdivision; 245A.145, subdivisions 1, 2; 245A.41,
subdivision 3; 245A.50, by adding a subdivision; 245A.51, subdivision 3; 245E.01,
subdivision 8; 245E.02, by adding subdivisions; 245E.06, subdivision 3; 245H.07;
245H.15, subdivision 1; 256.046, subdivision 1; 256B.02, subdivision 7; 256B.064,
subdivisions 1a, 1b, 2, by adding subdivisions; 256B.0651, subdivision 17;
256B.0659, subdivision 12; 256B.27, subdivision 3; 256B.4912, by adding
subdivisions; proposing coding for new law in Minnesota Statutes, chapters 119B;
145; 245A; 256B; 609; repealing Minnesota Statutes 2018, sections 119B.16,
subdivision 2; 245E.06, subdivisions 2, 4, 5; Minnesota Rules, part 3400.0185,
subpart 5.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin HEALTH AND HUMAN SERVICES APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated, or subtracted
from base appropriations if shown in parentheses, to the agencies and for the purposes
specified in this article. The appropriations are from the general fund, or another named
fund, and are available for the fiscal years indicated for each purpose. The figures "2020"
and "2021" used in this article mean that the appropriations listed under them are available
for the fiscal year ending June 30, 2020, or June 30, 2021, respectively. "The first year" is
fiscal year 2020. "The second year" is fiscal year 2021. "The biennium" is fiscal years 2020
and 2021.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2020 new text end		new text begin 2021 new text end

Sec. 2. new text begin COMMISSIONER OF HUMAN SERVICES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 13,693,000 new text end

new text begin $ new text end

new text begin 34,468,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2020 new text end	new text begin 2021 new text end
new text begin General new text end	new text begin 13,616,000 new text end	new text begin 34,402,000 new text end
new text begin State Government Special Revenue new text end	new text begin 84,000 new text end	new text begin 75,000 new text end
new text begin Health Care Access new text end	new text begin (7,000) new text end	new text begin (9,000) new text end

new text begin The appropriations in this section are to the
commissioner of human services. Each
appropriation is in addition to base
appropriations. The amounts that may be spent
for each purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Central Office; Operations new text end

new text begin Appropriations by Fund new text end
	new text begin 2020 new text end	new text begin 2021 new text end
new text begin General new text end	new text begin 3,432,000 new text end	new text begin 3,051,000 new text end
new text begin State Government Special Revenue new text end	new text begin 84,000 new text end	new text begin 75,000 new text end

new text begin (a) Child Care Licensing Inspections.
$673,000 in fiscal year 2020 and $722,000 in
fiscal year 2021 are to add eight child care
licensing staff for the purpose of increasing
the frequency of inspections of child care
centers to ensure the health and safety of
children in care, provide technical assistance
to newly-licensed programs, and monitor
struggling programs more closely to evaluate
whether the program should be referred to the
Office of Inspector General for a potential
fraud investigation.
new text end

new text begin (b) Child Care Assistance Programs - Fraud
and Abuse Data Analysts. $317,000 in fiscal
year 2020 and $339,000 in fiscal year 2021
are to add two data analysts to strengthen the
commissioner's ability to identify, detect, and
prevent fraud and abuse in the child care
assistance programs under Minnesota Statutes,
chapter 119B.
new text end

new text begin (c) Office of Inspector General
Investigators. $418,000 in fiscal year 2020
and $483,000 in fiscal year 2021 are to add
four investigators to the Office of Inspector
General to detect, prevent, and make
recoveries from fraudulent activities among
providers in the medical assistance program
under Minnesota Statutes, chapter 256B.
new text end

new text begin (d) Office of Inspector General Tracking
System. $355,000 in fiscal year 2020 and
$105,000 in fiscal year 2021 are to purchase
a system to record, track, and report on
investigative activity for the Office of
Inspector General to strengthen fraud
prevention and investigation activities for child
care assistance programs under Minnesota
Statutes, chapter 119B.
new text end

new text begin (e) Fraud Prevention Investigation Grant
Program. $529,000 in fiscal year 2020 and
$546,000 in fiscal year 2021 are for the fraud
prevention investigation grant program under
Minnesota Statutes, section 256.983. Of this
amount, the commissioner may use up to
$104,000 in the first year and up to $121,000
in the second year to add one permanent
full-time equivalent employee to support the
grant program.
new text end

new text begin (f) Child Care Assistance Programs - Law
Enforcement. $350,000 in fiscal year 2020
and $350,000 in fiscal year 2021 are to add
two additional law enforcement officers under
contract with the Bureau of Criminal
Apprehension, to conduct criminal
investigations in child care assistance program
cases.
new text end

new text begin (g) Base Level Adjustment. The general fund
base is increased by $3,191,000 in fiscal year
2022 and $3,190,000 in fiscal year 2023.
new text end

new text begin Subd. 3. new text end new text begin Central Office; Children and Families new text end

new text begin 105,000 new text end

new text begin 120,000 new text end

new text begin new text begin Child Care Assistance Programs -
Improvements. new text end $71,000 in fiscal year 2020
and $82,000 in fiscal year 2021 are to add one
temporary staff to plan for improvements to
provider registration and oversight for the
child care assistance programs under
Minnesota Statutes, chapter 119B. This is a
onetime appropriation.
new text end

new text begin Subd. 4. new text end new text begin Forecasted Programs; MFIP/DWP new text end

new text begin (118,000) new text end

new text begin (157,000) new text end

new text begin Subd. 5. new text end new text begin Forecasted Programs; MFIP Child Care Assistance new text end

new text begin (304,000) new text end

new text begin 10,206,000 new text end

new text begin Subd. 6. new text end new text begin Forecasted Programs; General Assistance new text end

new text begin (26,000) new text end

new text begin (34,000) new text end

new text begin Subd. 7. new text end new text begin Forecasted Programs; Minnesota Supplemental Aid new text end

new text begin (22,000) new text end

new text begin (29,000) new text end

new text begin Subd. 8. new text end new text begin Forecasted Programs; Housing Support new text end

new text begin (88,000) new text end

new text begin (117,000) new text end

new text begin Subd. 9. new text end new text begin Forecasted Programs; MinnesotaCare new text end

new text begin (7,000) new text end

new text begin (9,000) new text end

new text begin Generally. This reduction is from the health
care access fund.
new text end

new text begin Subd. 10. new text end new text begin Forecasted Programs; Medical Assistance new text end

new text begin (210,000) new text end

new text begin (280,000) new text end

new text begin Subd. 11. new text end new text begin Grant Programs; Basic Sliding Fee Child Care Assistance Grants new text end

new text begin 9,987,000 new text end

new text begin 21,042,000 new text end

new text begin (a) Basic Sliding Fee Waiting List
Allocation. Notwithstanding Minnesota
Statutes, section 119B.03, this appropriation
is to reduce the basic sliding fee program
waiting list as follows:
new text end

new text begin (1) the calendar year 2020 allocation must be
increased to serve families on the waiting list.
To receive funds appropriated for this purpose,
a county must have a waiting list in the most
recent published waiting list month;
new text end

new text begin (2) funds must be distributed proportionately
based on the average of the most recent six
months of published waiting lists to counties
that meet the criteria in clause (1);
new text end

new text begin (3) allocations in calendar years 2021 and
beyond must be calculated using the allocation
formula in Minnesota Statutes, section
119B.03; and
new text end

new text begin (4) the guaranteed floor for calendar year 2021
must be based on the revised calendar year
2020 allocation.
new text end

new text begin (b) Basic Sliding Fee 2020 Allocation.
Notwithstanding Minnesota Statutes, section
119B.03, subdivisions 6, 6a, and 6b, the
commissioner must allocate the additional
basic sliding fee child care funds for calendar
year 2020 to counties for updated maximum
rates based on relative need to cover maximum
rate increases. In distributing the additional
funds, the commissioner shall consider the
following factors by county:
new text end

new text begin (1) number of children;
new text end

new text begin (2) provider type;
new text end

new text begin (3) age of children; and
new text end

new text begin (4) amount of the increase in maximum rates.
new text end

new text begin (c) new text begin Base Level Adjustment. new text end The general fund
base is increased by $25,817,000 in fiscal year
2022 and $32,788,000 in fiscal year 2023.
new text end

new text begin Subd. 12. new text end new text begin Grant Programs; Child Care Development Grants new text end

new text begin 600,000 new text end

new text begin 600,000 new text end

new text begin (a) new text begin First Children's Finance Child Care Site
Assistance Grant. new text end $500,000 in each year is
for a grant to First Children's Finance as
provided under section 4. This is a onetime
appropriation.
new text end

new text begin (b) new text begin REETAIN Grant. new text end $100,000 in each year
is for the REETAIN grant program under
Minnesota Statutes, section 119B.195. The
unencumbered balance in the first year does
not cancel but is available for the second year.
The base for this program is $100,000 in each
year for fiscal years 2022 and 2023.
new text end

new text begin Subd. 13. new text end new text begin Grant Programs; Children and Economic Support Grants new text end

new text begin 260,000 new text end

new text begin 0 new text end

new text begin Food Shelf Programs. This appropriation is
for food shelf programs under Minnesota
Statutes, section 256E.34, to purchase diapers.
Hunger Solutions must establish an application
process for food shelves and determine the
allocation of money to food shelves. This
appropriation is in addition to any other
appropriation for food shelf programs under
Minnesota Statutes, section 256E.34. This is
a onetime appropriation.
new text end

Sec. 3. new text begin COMMISSIONER OF HEALTH new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin The appropriations in this section are to the
commissioner of health. Each appropriation
is in addition to base appropriations. The
amounts that may be spent for each purpose
are specified in the following subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Health Improvement new text end

new text begin 250,000 new text end

new text begin 250,000 new text end

new text begin Home Visiting. This appropriation is for home
visiting programs under Minnesota Statutes,
section 145.87. This is a onetime
appropriation.
new text end

Sec. 4. new text begin FIRST CHILDREN'S FINANCE CHILD CARE SITE ASSISTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Purposes. new text end

new text begin Grants under section 2, subdivision 12, to First Children's
Finance are for loans to improve child care or early childhood education sites, or loans to
plan, design, and construct or expand licensed and legal nonlicensed sites to increase the
availability of child care or early childhood education.
new text end

new text begin Subd. 2. new text end

new text begin Financing program. new text end

new text begin (a) First Children's Finance must use grant funds to:
new text end

new text begin (1) establish a revolving loan fund to make loans to existing, expanding, and newly
licensed and legally unlicensed child care and early childhood education sites;
new text end

new text begin (2) establish a fund to guarantee private loans to improve or construct a child care or
early childhood education site;
new text end

new text begin (3) establish a fund to provide forgivable loans or grants to match all or part of a loan
made under this section;
new text end

new text begin (4) establish a fund as a reserve against bad debt; and
new text end

new text begin (5) establish a fund to provide business planning assistance for child care providers.
new text end

new text begin (b) First Children's Finance must establish the terms and conditions for loans and loan
guarantees including interest rates, repayment agreements, private match requirements, and
conditions for loan forgiveness. A minimum interest rate for loans must be established to
ensure that necessary loan administration costs are covered. Interest earnings may be used
for administrative expenses.
new text end

new text begin Subd. 3. new text end

new text begin Reporting. new text end

new text begin First Children's Finance must:
new text end

new text begin (1) by September 30, 2020, and September 30, 2021, report to the commissioner of
human services the purposes for which the money was used during the past fiscal year,
including a description of projects supported by the financing, an account of loans made
during the calendar year, the financing program's assets and liabilities, and an explanation
of administrative expenses; and
new text end

new text begin (2) submit to the commissioner of human services a copy of the report of an independent
audit performed in accordance with generally accepted accounting practices and auditing
standards, for each fiscal year in which grants are received.
new text end

ARTICLE 2

EARLY CARE FINANCE AND POLICY

Section 1.

Minnesota Statutes 2018, section 119B.011, is amended by adding a subdivision
to read:

new text begin Subd. 13b. new text end

new text begin Homeless. new text end

new text begin "Homeless" means a self-declared housing status as defined in
the McKinney-Vento Homeless Assistance Act and United States Code, title 42, section
11302, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020.
new text end

Sec. 2.

Minnesota Statutes 2018, section 119B.011, subdivision 19, is amended to read:

Subd. 19.

Provider.

"Provider" means:

(1) an individual or child care center or facility deleted text begin , either licensed or unlicensed, providing
legal child care services as defined deleted text end new text begin licensed to provide child care new text end under deleted text begin section 245A.03 deleted text end new text begin
chapter 245A when operating within the terms of the license new text end ; deleted text begin or
deleted text end

(2) new text begin a license exempt center required to be certified under chapter 245H;
new text end

new text begin (3) new text end an individual or child care center or facility deleted text begin holding deleted text end new text begin that: (i) holds new text end a valid child care
license issued by another state or a tribe deleted text begin and providing deleted text end new text begin ; (ii) provides new text end child care services in
the licensing state or in the area under the licensing tribe's jurisdiction new text begin ; and (iii) is in
compliance with federal health and safety requirements as certified by the licensing state
or tribe, or as determined by receipt of child care development block grant funds in the
licensing state; or
new text end

new text begin (4) a legal nonlicensed child care provider as defined under section 119B.011, subdivision
16, providing legal child care services new text end . A deleted text begin legally unlicensed family deleted text end new text begin legal nonlicensed new text end child
care provider must be at least 18 years of age, and not a member of the MFIP assistance
unit or a member of the family receiving child care assistance to be authorized under this
chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 3.

Minnesota Statutes 2018, section 119B.011, subdivision 20, is amended to read:

Subd. 20.

Transition year families.

"Transition year families" means families who have
received MFIP assistance, or who were eligible to receive MFIP assistance after choosing
to discontinue receipt of the cash portion of MFIP assistance under section 256J.31,
subdivision 12, or families who have received DWP assistance under section 256J.95 for
at least deleted text begin three deleted text end new text begin one new text end of the last six months before losing eligibility for MFIP or DWP.
Notwithstanding Minnesota Rules, parts 3400.0040, subpart 10, and 3400.0090, subpart 2,
transition year child care may be used to support employment, approved education or training
programs, or job search that meets the requirements of section 119B.10. Transition year
child care is not available to families who have been disqualified from MFIP or DWP due
to fraud.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 23, 2020.
new text end

Sec. 4.

Minnesota Statutes 2018, section 119B.02, subdivision 3, is amended to read:

Subd. 3.

Supervision of counties new text begin and providers new text end .

new text begin (a) new text end The commissioner shall supervise
child care programs administered by the counties through standard-setting, technical
assistance to the counties, approval of county child care fund plans, and distribution of
public money for services. The commissioner shall provide training and other support
services to assist counties in planning for and implementing child care assistance programs.
The commissioner shall adopt rules under chapter 14 that establish minimum administrative
standards for the provision of child care services by county boards of commissioners.

new text begin (b) The commissioner shall:
new text end

new text begin (1) provide technical assistance and training to support child care providers to ensure
proper billing and attendance records are submitted for reimbursement under this chapter;
and
new text end

new text begin (2) ensure that the training and technical assistance provided to child care providers is
linguistically and culturally accessible.
new text end

Sec. 5.

Minnesota Statutes 2018, section 119B.02, subdivision 7, is amended to read:

Subd. 7.

Child care market rate survey.

deleted text begin Biennially, deleted text end The commissioner shall new text begin conduct
the next new text end survey new text begin of new text end prices charged by child care providers in Minnesota new text begin in state fiscal year
2021 and every three years thereafter new text end to determine the 75th percentile for like-care
arrangements in county price clusters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2018, section 119B.025, subdivision 1, is amended to read:

Subdivision 1.

Applications.

(a) new text begin Except as provided in paragraph (c), clause (4), new text end the
county shall verify the following at all initial child care applications using the universal
application:

(1) identity of adults;

(2) presence of the minor child in the home, if questionable;

(3) relationship of minor child to the parent, stepparent, legal guardian, eligible relative
caretaker, or the spouses of any of the foregoing;

(4) age;

(5) immigration status, if related to eligibility;

(6) Social Security number, if given;

(7) counted income;

(8) spousal support and child support payments made to persons outside the household;

(9) residence; and

(10) inconsistent information, if related to eligibility.

(b) The county must mail a notice of approval or denial of assistance to the applicant
within 30 calendar days after receiving the application. The county may extend the response
time by 15 calendar days if the applicant is informed of the extension.

new text begin (c) For an applicant who declares that the applicant is homeless and who meets the
definition of homeless in section 119B.011, subdivision 13b, the county must:
new text end

new text begin (1) if information is needed to determine eligibility, send a request for information to
the applicant within five working days after receiving the application;
new text end

new text begin (2) if the applicant is eligible, send a notice of approval of assistance within five working
days after receiving the application;
new text end

new text begin (3) if the applicant is ineligible, send a notice of denial of assistance within 30 days after
receiving the application. The county may extend the response time by 15 calendar days if
the applicant is informed of the extension;
new text end

new text begin (4) not require verifications required by paragraph (a) before issuing the notice of approval
or denial; and
new text end

new text begin (5) follow limits set by the commissioner for how frequently expedited application
processing may be used for an applicant under this paragraph.
new text end

new text begin (d) An applicant who declares that the applicant is homeless must submit proof of
eligibility within three months of the date the application was received. If proof of eligibility
is not submitted within three months, eligibility ends. A 15-day adverse action notice is
required to end eligibility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020.
new text end

Sec. 7.

Minnesota Statutes 2018, section 119B.025, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Information to applicants; child care fraud. new text end

new text begin At the time of initial application
and at redetermination, the county must provide written notice to the applicant or participant
listing the activities that constitute child care fraud and the consequences of committing
child care fraud. An applicant or participant shall acknowledge receipt of the child care
fraud notice in writing.
new text end

Sec. 8.

Minnesota Statutes 2018, section 119B.03, subdivision 9, is amended to read:

Subd. 9.

Portability pool.

(a) The commissioner shall establish a pool of up to five
percent of the annual appropriation for the basic sliding fee program to provide continuous
child care assistance for eligible families who move between Minnesota counties. At the
end of each allocation period, any unspent funds in the portability pool must be used for
assistance under the basic sliding fee program. If expenditures from the portability pool
exceed the amount of money available, the reallocation pool must be reduced to cover these
shortages.

(b) deleted text begin To be eligible for portable basic sliding fee assistance, deleted text end A family that has moved from
a county in which it was receiving basic sliding fee assistance to a county with a waiting
list for the basic sliding fee program must:

(1) meet the income and eligibility guidelines for the basic sliding fee program; and

(2) notify deleted text begin the new county of residence within 60 days of moving and submit information
to the new county of residence to verify eligibility for the basic sliding fee program deleted text end new text begin the
family's previous county of residence of the family's move to a new county of residence new text end .

(c) The receiving county must:

(1) accept administrative responsibility for applicants for portable basic sliding fee
assistance at the end of the two months of assistance under the Unitary Residency Act;

(2) continue new text begin portability pool new text end basic sliding fee assistance deleted text begin for the lesser of six months or deleted text end
until the family is able to receive assistance under the county's regular basic sliding program;
and

(3) notify the commissioner through the quarterly reporting process of any family that
meets the criteria of the portable basic sliding fee assistance pool.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 2, 2019.
new text end

Sec. 9.

Minnesota Statutes 2018, section 119B.09, subdivision 1, is amended to read:

Subdivision 1.

General eligibility requirements.

(a) Child care services must be
available to families who need child care to find or keep employment or to obtain the training
or education necessary to find employment and who:

(1) have household income less than or equal to 67 percent of the state median income,
adjusted for family size, at application and redetermination, and meet the requirements of
section 119B.05; receive MFIP assistance; and are participating in employment and training
services under chapter 256J; or

(2) have household income less than or equal to 47 percent of the state median income,
adjusted for family size, at application and less than or equal to 67 percent of the state
median income, adjusted for family size, at redetermination.

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care
assistance must be assisted and required to cooperate in establishment of paternity and
enforcement of child support obligations for all children in the family at application and
redetermination as a condition of program eligibility. For purposes of this section, a family
is considered to meet the requirement for cooperation when the family complies with the
requirements of section 256.741.

(d) All applicants for child care assistance and families currently receiving child care
assistance must pay the co-payment fee under section 119B.12, subdivision 2, as a condition
of eligibility. The co-payment fee may include additional recoupment fees due to a child
care assistance program overpayment.

new text begin (e) If a family has one child with a child care authorization and the child reaches 13
years of age or the child has a disability and reaches 15 years of age, the family remains
eligible until the redetermination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 29, 2020.
new text end

Sec. 10.

Minnesota Statutes 2018, section 119B.095, subdivision 2, is amended to read:

Subd. 2.

Maintain steady child care authorizations.

(a) Notwithstanding Minnesota
Rules, chapter 3400, the amount of child care authorized under section 119B.10 for
employment, education, or an MFIP or DWP employment plan shall continue at the same
number of hours or more hours until redetermination, including:

(1) when the other parent moves in and is employed or has an education plan under
section 119B.10, subdivision 3, or has an MFIP or DWP employment plan; or

(2) when the participant's work hours are reduced or a participant temporarily stops
working or attending an approved education program. Temporary changes include, but are
not limited to, a medical leave, seasonal employment fluctuations, or a school break between
semesters.

(b) The county may increase the amount of child care authorized at any time if the
participant verifies the need for increased hours for authorized activities.

(c) The county may reduce the amount of child care authorized if a parent requests a
reduction or because of a change in:

(1) the child's school schedule;

(2) the custody schedule; or

(3) the provider's availability.

(d) The amount of child care authorized for a family subject to subdivision 1, paragraph
(b), must change when the participant's activity schedule changes. Paragraph (a) does not
apply to a family subject to subdivision 1, paragraph (b).

new text begin (e) When a child reaches 13 years of age or a child with a disability reaches 15 years of
age, the amount of child care authorized shall continue at the same number of hours or more
hours until redetermination.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 29, 2020.
new text end

Sec. 11.

Minnesota Statutes 2018, section 119B.095, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Assistance for persons who are homeless. new text end

new text begin An applicant who is homeless and
eligible for child care assistance is exempt from the activity participation requirements under
this chapter for three months. The applicant under this subdivision is eligible for 60 hours
of child care assistance per service period for three months from the date the county receives
the application. Additional hours may be authorized as needed based on the applicant's
participation in employment, education, or MFIP or DWP employment plan. To continue
receiving child care assistance after the initial three months, the applicant must verify that
the applicant meets eligibility and activity requirements for child care assistance under this
chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020.
new text end

Sec. 12.

Minnesota Statutes 2018, section 119B.13, subdivision 1, is amended to read:

Subdivision 1.

Subsidy restrictions.

(a) deleted text begin Beginning February 3, 2014, deleted text end The maximum
rate paid for child care assistance in any county or county price cluster under the child care
fund shall be the greater of new text begin (1) new text end the 25th percentile of the deleted text begin 2011 deleted text end new text begin 2018 new text end child care provider rate
survey new text begin under section 119B.02, subdivision 7, new text end or new text begin (2) new text end the deleted text begin maximum rate effective November
28, 2011 deleted text end new text begin rates in effect at the time of the update new text end . For a child care provider located within
the boundaries of a city located in two or more of the counties of Benton, Sherburne, and
Stearns, the maximum rate paid for child care assistance shall be equal to the maximum
rate paid in the county with the highest maximum reimbursement rates or the provider's
charge, whichever is less. The commissioner may: (1) assign a county with no reported
provider prices to a similar price cluster; and (2) consider county level access when
determining final price clusters.

(b) A rate which includes a special needs rate paid under subdivision 3 may be in excess
of the maximum rate allowed under this subdivision.

(c) The department shall monitor the effect of this paragraph on provider rates. The
county shall pay the provider's full charges for every child in care up to the maximum
established. The commissioner shall determine the maximum rate for each type of care on
an hourly, full-day, and weekly basis, including special needs and disability care.

(d) If a child uses one provider, the maximum payment for one day of care must not
exceed the daily rate. The maximum payment for one week of care must not exceed the
weekly rate.

(e) If a child uses two providers under section 119B.097, the maximum payment must
not exceed:

(1) the daily rate for one day of care;

(2) the weekly rate for one week of care by the child's primary provider; and

(3) two daily rates during two weeks of care by a child's secondary provider.

(f) Child care providers receiving reimbursement under this chapter must not be paid
activity fees or an additional amount above the maximum rates for care provided during
nonstandard hours for families receiving assistance.

(g) If the provider charge is greater than the maximum provider rate allowed, the parent
is responsible for payment of the difference in the rates in addition to any family co-payment
fee.

(h) All maximum provider rates changes shall be implemented on the Monday following
the effective date of the maximum provider rate.

(i) deleted text begin Notwithstanding Minnesota Rules, part 3400.0130, subpart 7, maximum registration
fees in effect on January 1, 2013, shall remain in effect. deleted text end new text begin The maximum registration fee paid
for child care assistance in any county or county price cluster under the child care fund must
be the greater of (1) the 25th percentile of the 2018 child care provider rate survey under
section 119B.02, subdivision 7, or (2) the registration fee in effect at the time of the update.
Maximum registration fees must be set for licensed family child care and for child care
centers. For a child care provider located within the boundaries of a city located in two or
more of the counties of Benton, Sherburne, and Stearns, the maximum registration fee paid
for child care assistance must be equal to the maximum registration fee paid in the county
with the highest maximum registration fee or the provider's charge, whichever is less.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective September 20, 2019. Paragraph (i) is
effective September 23, 2019.
new text end

Sec. 13.

Minnesota Statutes 2018, section 119B.16, subdivision 1, is amended to read:

Subdivision 1.

Fair hearing allowed new text begin for applicants and recipients new text end .

new text begin (a) new text end An applicant
or recipient adversely affected by new text begin an action of new text end a county agency deleted text begin action deleted text end new text begin or the commissioner,
for an action taken directly against the applicant or recipient, new text end may request new text begin and receive new text end a fair
hearing in accordance with new text begin this subdivision and new text end section 256.045. new text begin An applicant or recipient
does not have a right to a fair hearing if a county agency or the commissioner takes action
against a provider.
new text end

new text begin (b) A county agency must offer an informal conference to an applicant or recipient who
is entitled to a fair hearing under this section. A county agency must advise an applicant or
recipient that a request for a conference is optional and does not delay or replace the right
to a fair hearing.
new text end

new text begin (c) If a provider's authorization is suspended, denied, or revoked, a county agency or
the commissioner must mail notice to each child care assistance program recipient receiving
care from the provider.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 14.

Minnesota Statutes 2018, section 119B.16, subdivision 1a, is amended to read:

Subd. 1a.

Fair hearing allowed for providers.

(a) This subdivision applies to providers
caring for children receiving child care assistance.

deleted text begin (b) A provider to whom a county agency has assigned responsibility for an overpayment
may request a fair hearing in accordance with section 256.045 for the limited purpose of
challenging the assignment of responsibility for the overpayment and the amount of the
overpayment. The scope of the fair hearing does not include the issues of whether the
provider wrongfully obtained public assistance in violation of section 256.98 or was properly
disqualified under section 256.98, subdivision 8, paragraph (c), unless the fair hearing has
been combined with an administrative disqualification hearing brought against the provider
under section 256.046.
deleted text end

new text begin (b) A provider may request a fair hearing according to sections 256.045 and 256.046
only if a county agency or the commissioner:
new text end

new text begin (1) denies or revokes a provider's authorization, unless the action entitles the provider
to an administrative review under section 119B.161;
new text end

new text begin (2) assigns responsibility for an overpayment to a provider under section 119B.11,
subdivision 2a;
new text end

new text begin (3) establishes an overpayment for failure to comply with section 119B.125, subdivision
6;
new text end

new text begin (4) seeks monetary recovery or recoupment under section 245E.02, subdivision 4,
paragraph (c), clause (2);
new text end

new text begin (5) initiates an administrative fraud disqualification hearing; or
new text end

new text begin (6) issues a payment and the provider disagrees with the amount of the payment.
new text end

new text begin (c) A provider may request a fair hearing by submitting a written request to the
Department of Human Services, Appeals Division. A provider's request must be received
by the Appeals Division no later than 30 days after the date a county or the commissioner
mails the notice.
new text end

new text begin (d) The provider's appeal request must contain the following:
new text end

new text begin (1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the
dollar amount involved for each disputed item;
new text end

new text begin (2) the computation the provider believes to be correct, if applicable;
new text end

new text begin (3) the statute or rule relied on for each disputed item; and
new text end

new text begin (4) the name, address, and telephone number of the person at the provider's place of
business with whom contact may be made regarding the appeal.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 15.

Minnesota Statutes 2018, section 119B.16, subdivision 1b, is amended to read:

Subd. 1b.

Joint fair hearings.

deleted text begin When a provider requests a fair hearing under subdivision
1a, the family in whose case the overpayment was created must be made a party to the fair
hearing. All other issues raised by the family must be resolved in the same proceeding.
When a family requests a fair hearing and claims that the county should have assigned
responsibility for an overpayment to a provider, the provider must be made a party to the
fair hearing. deleted text end The human services judge assigned to a fair hearing may join a family or a
provider as a party to the fair hearing whenever joinder of that party is necessary to fully
and fairly resolve deleted text begin overpayment deleted text end issues raised in the appeal.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 16.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision
to read:

new text begin Subd. 1c. new text end

new text begin Notice to providers. new text end

new text begin (a) Before taking an action appealable under subdivision
1a, paragraph (b), a county agency or the commissioner must mail written notice to the
provider against whom the action is being taken. Unless otherwise specified under chapter
119B or 245E or Minnesota Rules, chapter 3400, a county agency or the commissioner must
mail the written notice at least 15 calendar days before the adverse action's effective date.
new text end

new text begin (b) The notice shall state (1) the factual basis for the department's determination, (2) the
action the department intends to take, (3) the dollar amount of the monetary recovery or
recoupment, if known, and (4) the provider's right to appeal the department's proposed
action.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 17.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Fair hearing stayed. new text end

new text begin (a) If a county agency or the commissioner denies or
revokes a provider's authorization based on a licensing action under section 245A.07, and
the provider appeals, the provider's fair hearing must be stayed until the commissioner issues
an order as required under section 245A.08, subdivision 5.
new text end

new text begin (b) If the commissioner denies or revokes a provider's authorization based on
decertification under section 245H.07, and the provider appeals, the provider's fair hearing
must be stayed until the commissioner issues a final order as required under section 245H.07.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 18.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Final department action. new text end

new text begin Unless the commissioner receives a timely and
proper request for an appeal, a county agency's or the commissioner's action shall be
considered a final department action.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 19.

new text begin [119B.161] ADMINISTRATIVE REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin A provider has the right to an administrative review under
this section if (1) a payment was suspended under chapter 245E, or (2) the provider's
authorization was denied or revoked under section 119B.13, subdivision 6, paragraph (d),
clause (1) or (2).
new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin (a) A county agency or the commissioner must mail written notice to
a provider within five days of suspending payment or denying or revoking the provider's
authorization under subdivision 1.
new text end

new text begin (b) The notice must:
new text end

new text begin (1) state the provision under which a county agency or the commissioner is denying,
revoking, or suspending the provider's authorization or suspending payment to the provider;
new text end

new text begin (2) set forth the general allegations leading to the denial, revocation, or suspension of
the provider's authorization. The notice need not disclose any specific information concerning
an ongoing investigation;
new text end

new text begin (3) state that the denial, revocation, or suspension of the provider's authorization is for
a temporary period and explain the circumstances under which the action expires; and
new text end

new text begin (4) inform the provider of the right to submit written evidence and argument for
consideration by the commissioner.
new text end

new text begin (c) Notwithstanding Minnesota Rules, part 3400.0185, if a county agency or the
commissioner suspends payment to a provider under chapter 245E or denies or revokes a
provider's authorization under section 119B.13, subdivision 6, paragraph (d), clause (1) or
(2), a county agency or the commissioner must send notice of service authorization closure
to each affected family. The notice sent to an affected family is effective on the date the
notice is created.
new text end

new text begin Subd. 3. new text end

new text begin Duration. new text end

new text begin If a provider's payment is suspended under chapter 245E or a
provider's authorization is denied or revoked under section 119B.13, subdivision 6, paragraph
(d), clause (1) or (2), the provider's denial, revocation, temporary suspension, or payment
suspension remains in effect until:
new text end

new text begin (1) the commissioner or a law enforcement authority determines that there is insufficient
evidence warranting the action and a county agency or the commissioner does not pursue
an additional administrative remedy under chapter 245E or section 256.98; or
new text end

new text begin (2) all criminal, civil, and administrative proceedings related to the provider's alleged
misconduct conclude and any appeal rights are exhausted.
new text end

new text begin Subd. 4. new text end

new text begin Good cause exception. new text end

new text begin The commissioner may find that good cause exists not
to deny, revoke, or suspend a provider's authorization, or not to continue a denial, revocation,
or suspension of a provider's authorization if any of the following are applicable:
new text end

new text begin (1) a law enforcement authority specifically requested that a provider's authorization
not be denied, revoked, or suspended because that action may compromise an ongoing
investigation;
new text end

new text begin (2) the commissioner determines that the denial, revocation, or suspension should be
removed based on the provider's written submission; or
new text end

new text begin (3) the commissioner determines that the denial, revocation, or suspension is not in the
best interests of the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 20.

new text begin [119B.195] RETAINING EARLY EDUCATORS THROUGH ATTAINING
INCENTIVES NOW (REETAIN) GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The retaining early educators through attaining
incentives now (REETAIN) grant program is established to provide competitive grants to
incentivize well-trained child care professionals to stay in the workforce to create more
consistent care for children over time.
new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin (a) The commissioner must administer the REETAIN grant
program, and must provide a grant to a nonprofit organization with demonstrated ability to
manage benefit programs for child care professionals.
new text end

new text begin (b) Up to ten percent of grant funds may be used for administration of the grant program.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin Applicants must apply for the REETAIN grant program in the
manner and according to the timelines established by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin (a) Applicants must:
new text end

new text begin (1) be licensed to provide child care or work for a licensed child care program;
new text end

new text begin (2) work directly with children at least 30 hours per week;
new text end

new text begin (3) be in their current position for at least 12 months;
new text end

new text begin (4) be willing to stay in their current position for at least 12 months after receiving a
grant under this section;
new text end

new text begin (5) have a career lattice step of five or higher;
new text end

new text begin (6) have a current membership with the Minnesota quality improvement and registry
tool; and
new text end

new text begin (7) meet any other requirements established by the commissioner.
new text end

new text begin (b) Grant recipients must sign a contract agreeing to remain in their current position for
12 months.
new text end

new text begin Subd. 5. new text end

new text begin Grant awards. new text end

new text begin (a) To the extent that funding is available, a child care
professional's annual amount for the REETAIN grant must not exceed an amount determined
by the commissioner. A child care professional must apply each year to compete for an
award, and may receive up to one award per year.
new text end

new text begin (b) Grant funds may be used for program supplies, training, or personal expenses.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin Annually by January 1, the commissioner must report to the legislative
committees with jurisdiction over early childhood on the number of grants awarded and
outcomes of the grant program.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective July 1, 2019. The first
report under subdivision 6 is due by January 1, 2021.
new text end

Sec. 21.

Minnesota Statutes 2018, section 144.966, subdivision 2, is amended to read:

Subd. 2.

Newborn Hearing Screening Advisory Committee.

(a) The commissioner
of health shall establish a Newborn Hearing Screening Advisory Committee to advise and
assist the Department of Health and the Department of Education in:

(1) developing protocols and timelines for screening, rescreening, and diagnostic
audiological assessment and early medical, audiological, and educational intervention
services for children who are deaf or hard-of-hearing;

(2) designing protocols for tracking children from birth through age three that may have
passed newborn screening but are at risk for delayed or late onset of permanent hearing
loss;

(3) designing a technical assistance program to support facilities implementing the
screening program and facilities conducting rescreening and diagnostic audiological
assessment;

(4) designing implementation and evaluation of a system of follow-up and tracking; and

(5) evaluating program outcomes to increase effectiveness and efficiency and ensure
culturally appropriate services for children with a confirmed hearing loss and their families.

(b) The commissioner of health shall appoint at least one member from each of the
following groups with no less than two of the members being deaf or hard-of-hearing:

(1) a representative from a consumer organization representing culturally deaf persons;

(2) a parent with a child with hearing loss representing a parent organization;

(3) a consumer from an organization representing oral communication options;

(4) a consumer from an organization representing cued speech communication options;

(5) an audiologist who has experience in evaluation and intervention of infants and
young children;

(6) a speech-language pathologist who has experience in evaluation and intervention of
infants and young children;

(7) two primary care providers who have experience in the care of infants and young
children, one of which shall be a pediatrician;

(8) a representative from the early hearing detection intervention teams;

(9) a representative from the Department of Education resource center for the deaf and
hard-of-hearing or the representative's designee;

(10) a representative of the Commission of the Deaf, DeafBlind and Hard of Hearing;

(11) a representative from the Department of Human Services Deaf and Hard-of-Hearing
Services Division;

(12) one or more of the Part C coordinators from the Department of Education, the
Department of Health, or the Department of Human Services or the department's designees;

(13) the Department of Health early hearing detection and intervention coordinators;

(14) two birth hospital representatives from one rural and one urban hospital;

(15) a pediatric geneticist;

(16) an otolaryngologist;

(17) a representative from the Newborn Screening Advisory Committee under this
subdivision; deleted text begin and
deleted text end

(18) a representative of the Department of Education regional low-incidence facilitators deleted text begin . deleted text end new text begin ;
new text end

new text begin (19) a representative from the deaf mentor program; and
new text end

new text begin (20) a representative of the Minnesota State Academy for the Deaf from the Minnesota
State Academies staff.
new text end

The commissioner must complete the new text begin initial new text end appointments required under this subdivision
by September 1, 2007 new text begin , and the initial appointments under clauses (19) and (20) by September
1, 2019 new text end .

(c) The Department of Health member shall chair the first meeting of the committee. At
the first meeting, the committee shall elect a chair from its membership. The committee
shall meet at the call of the chair, at least four times a year. The committee shall adopt
written bylaws to govern its activities. The Department of Health shall provide technical
and administrative support services as required by the committee. These services shall
include technical support from individuals qualified to administer infant hearing screening,
rescreening, and diagnostic audiological assessments.

Members of the committee shall receive no compensation for their service, but shall be
reimbursed as provided in section 15.059 for expenses incurred as a result of their duties
as members of the committee.

(d) By February 15, 2015, and by February 15 of the odd-numbered years after that date,
the commissioner shall report to the chairs and ranking minority members of the legislative
committees with jurisdiction over health and data privacy on the activities of the committee
that have occurred during the past two years.

(e) This subdivision expires June 30, deleted text begin 2019 deleted text end new text begin 2025 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. 22.

new text begin [145.87] HOME VISITING FOR PREGNANT WOMEN AND FAMILIES
WITH YOUNG CHILDREN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Evidence-based home visiting program" means a program that:
new text end

new text begin (1) is based on a clear, consistent program or model that is research-based and grounded
in relevant, empirically based knowledge;
new text end

new text begin (2) is linked to program-determined outcomes and is associated with a national
organization, institution of higher education, or national or state public health institute;
new text end

new text begin (3) has comprehensive home visitation standards that ensure high-quality service delivery
and continuous quality improvement;
new text end

new text begin (4) has demonstrated significant, sustained positive outcomes; and
new text end

new text begin (5) either (i) has been evaluated using rigorous, randomized controlled research designs
with the evaluations published in a peer-reviewed journal; or (ii) is based on
quasi-experimental research using two or more separate, comparable client samples.
new text end

new text begin (c) "Evidence-informed home visiting program" means a program that:
new text end

new text begin (1) has data or evidence demonstrating the program's effectiveness at achieving positive
outcomes for pregnant women and young children; and
new text end

new text begin (2) either has (i) an active evaluation of the program; or (ii) a plan and timeline for an
active evaluation of the program to be conducted.
new text end

new text begin (d) "Health equity" means every individual has a fair opportunity to attain the individual's
full health potential, and no individual is prevented from achieving this potential.
new text end

new text begin Subd. 2. new text end

new text begin Grants for home visiting programs. new text end

new text begin The commissioner shall award grants to
community health boards, nonprofit organizations, and tribal nations to start up or expand
home visiting programs serving pregnant women and families with young children. Home
visiting programs supported under this section shall provide home visits by early childhood
professionals or health professionals, including nurses, social workers, early childhood
educators, or trained paraprofessionals. Grant funds shall be used:
new text end

new text begin (1) to start up or expand evidence-based home visiting programs that address health
equity, or evidence-informed home visiting programs that address health equity; and
new text end

new text begin (2) to serve families with young children or pregnant women who are high risk or have
high needs. For purposes of this clause, high risk includes but is not limited to a family with
low income, or a parent or pregnant woman with mental illness or a substance use disorder
or experiencing domestic abuse.
new text end

new text begin Subd. 3. new text end

new text begin Grant prioritization. new text end

new text begin (a) In awarding grants, the commissioner shall give
priority to community health boards, nonprofit organizations, and tribal nations seeking to
expand home visiting services with community or regional partnerships.
new text end

new text begin (b) The commissioner shall allocate at least 75 percent of the grant funds awarded each
grant cycle to evidence-based home visiting programs that address health equity and up to
25 percent of the grant funds awarded each grant cycle to evidence-informed home visiting
programs that address health equity.
new text end

new text begin Subd. 4. new text end

new text begin No supplanting of existing funds. new text end

new text begin Funding awarded under this section shall
only be used to supplement, and not to replace, funds being used for evidence-based home
visiting programs or evidence-informed home visiting programs.
new text end

new text begin Subd. 5. new text end

new text begin Administrative costs. new text end

new text begin The commissioner may use up to ten percent of the
annual appropriation under this section to provide training and technical assistance and to
administer and evaluate the program. The commissioner may contract for training,
capacity-building support for grantees or potential grantees, technical assistance, and
evaluation support.
new text end

Sec. 23.

Minnesota Statutes 2018, section 245E.06, subdivision 3, is amended to read:

Subd. 3.

Appeal of department deleted text begin sanction deleted text end new text begin action new text end .

deleted text begin (a) If the department does not pursue
a criminal action against a provider, license holder, controlling individual, or recipient for
financial misconduct, but the department imposes an administrative sanction under section
245E.02, subdivision 4, paragraph (c), any individual or entity against whom the sanction
was imposed may appeal the department's administrative sanction under this section pursuant
to section 119B.16 or 256.045 with the additional requirements in clauses (1) to (4). An
appeal must specify:
deleted text end

deleted text begin (1) each disputed item, the reason for the dispute, and an estimate of the dollar amount
involved for each disputed item, if appropriate;
deleted text end

deleted text begin (2) the computation that is believed to be correct, if appropriate;
deleted text end

deleted text begin (3) the authority in the statute or rule relied upon for each disputed item; and
deleted text end

deleted text begin (4) the name, address, and phone number of the person at the provider's place of business
with whom contact may be made regarding the appeal.
deleted text end

deleted text begin (b) Notwithstanding section 245E.03, subdivision 4, an appeal is considered timely only
if postmarked or received by the department's Appeals Division within 30 days after receiving
a notice of department sanction.
deleted text end

deleted text begin (c) Before the appeal hearing, the department may deny or terminate authorizations or
payment to the entity or individual if the department determines that the action is necessary
to protect the public welfare or the interests of the child care assistance program.
deleted text end

new text begin A provider's rights related to the department's action taken under this chapter against a
provider are established in sections 119B.16 and 119B.161.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 24.

Minnesota Statutes 2018, section 245H.07, is amended to read:

245H.07 DECERTIFICATION.

new text begin Subdivision 1. new text end

new text begin Generally. new text end

(a) The commissioner may decertify a center if a certification
holder:

(1) failed to comply with an applicable law or rule; deleted text begin or
deleted text end

(2) knowingly withheld relevant information from or gave false or misleading information
to the commissioner in connection with an application for certification, in connection with
the background study status of an individual, during an investigation, or regarding compliance
with applicable laws or rules deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) has authorization to receive child care assistance payments revoked pursuant to
chapter 119B.
new text end

(b) When considering decertification, the commissioner shall consider the nature,
chronicity, or severity of the violation of law or rule.

(c) When a center is decertified, the center is ineligible to receive a child care assistance
payment new text begin under chapter 119B new text end .

new text begin Subd. 2. new text end

new text begin Reconsideration. new text end

new text begin (a) The certification holder may request reconsideration of
the decertification by notifying the commissioner by certified mail or personal service. The
request must be made in writing. If sent by certified mail, the request must be postmarked
and sent to the commissioner within ten calendar days after the certification holder received
the order. If a request is made by personal service, it must be received by the commissioner
within ten calendar days after the certification holder received the order. The certification
holder may submit with the request for reconsideration written argument or evidence in
support of the request for reconsideration.
new text end

new text begin (b) If the commissioner decertifies a center pursuant to subdivision 1, paragraph (a),
clause (3), and if the center appeals the revocation of the center's authorization to receive
child care assistance payments, the final decertification determination is stayed until the
appeal of the center's authorization under chapter 119B is resolved. If the center also requests
reconsideration of the decertification, the center must do so according to paragraph (a). The
final decision on reconsideration is stayed until the appeal of the center's authorization under
chapter 119B is resolved.
new text end

new text begin (c) The commissioner's disposition of a request for reconsideration is final and not subject
to appeal under chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021.
new text end

Sec. 25. new text begin DIRECTION TO COMMISSIONER.
new text end

new text begin (a) The commissioner of human services shall:
new text end

new text begin (1) develop equity and implicit bias training for state and county child care licensors
and require all licensors to receive this training within 30 days of initial hiring and once
every two years thereafter. The training must be offered at no cost to the lead agencies or
licensors;
new text end

new text begin (2) actively recruit child care licensors to more accurately reflect the racial and ethnic
diversity of families participating in child care assistance programs; and
new text end

new text begin (3) create an accountability process for child care providers to submit complaints about
a licensor.
new text end

new text begin (b) By January 1, 2020, the commissioner shall report to the chairs, ranking minority
members, and staff of the legislative committees with jurisdiction over early childhood and
human services on the implementation of the directions under paragraph (a).
new text end

Sec. 26. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 119B.16, subdivision 2; and 245E.06, subdivisions
2, 4, and 5, new text end new text begin and new text end new text begin Minnesota Rules, part 3400.0185, subpart 5, new text end new text begin are repealed effective February
26, 2021.
new text end

ARTICLE 3

LICENSING

Section 1.

Minnesota Statutes 2018, section 245A.04, subdivision 4, is amended to read:

Subd. 4.

Inspections; waiver.

(a) Before issuing an initial license, the commissioner
shall conduct an inspection of the program. The inspection must include but is not limited
to:

(1) an inspection of the physical plant;

(2) an inspection of records and documents;

(3) an evaluation of the program by consumers of the program;

(4) observation of the program in operation; and

(5) an inspection for the health, safety, and fire standards in licensing requirements for
a child care license holder.

For the purposes of this subdivision, "consumer" means a person who receives the
services of a licensed program, the person's legal guardian, or the parent or individual having
legal custody of a child who receives the services of a licensed program.

(b) The evaluation required in paragraph (a), clause (3), or the observation in paragraph
(a), clause (4), is not required prior to issuing an initial license under subdivision 7. If the
commissioner issues an initial license under subdivision 7, these requirements must be
completed within one year after the issuance of an initial license.

(c) Before completing a licensing inspection in a family child care program or child care
center, the licensing agency must offer the license holder an exit interview to discuss
violations new text begin or potential violations new text end of law or rule observed during the inspection and offer
technical assistance on how to comply with applicable laws and rules. deleted text begin Nothing in this
paragraph limits the ability of the commissioner to issue a correction order or negative
action for violations of law or rule not discussed in an exit interview or in the event that a
license holder chooses not to participate in an exit interview. deleted text end new text begin The commissioner shall not
issue a correction order or negative licensing action for violations of law or rule not discussed
in an exit interview, unless a license holder chooses not to participate in an exit interview.
If the license holder is unable to complete the exit interview, the licensing agency must
offer an alternate time for the license holder to complete the exit interview.
new text end

new text begin (d) If a family child care license holder disputes a county licensor's interpretation of a
licensing requirement during a licensing inspection or exit interview, the license holder
may, within five business days after the exit interview or licensing inspection, request
clarification from the commissioner, in writing, in a manner prescribed by the commissioner.
The license holder's request must describe the county licensor's interpretation of the licensing
requirement at issue, and explain why the license holder believes the county licensor's
interpretation is inaccurate. The commissioner and the county must include the license
holder in all correspondence regarding the disputed interpretation, and must provide an
opportunity for the license holder to contribute relevant information that may impact the
commissioner's decision. The commissioner or county licensor must not issue a correction
order related to the disputed licensing requirement until the commissioner has provided
clarification to the license holder about the licensing requirement.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The commissioner or the county shall inspect at least annually a child care provider
licensed under this chapter and Minnesota Rules, chapter 9502 or 9503, for compliance
with applicable licensing standards.

deleted text begin (e) deleted text end new text begin (f) new text end No later than November 19, 2017, the commissioner shall make publicly available
on the department's website the results of inspection reports of all child care providers
licensed under this chapter and under Minnesota Rules, chapter 9502 or 9503, and the
number of deaths, serious injuries, and instances of substantiated child maltreatment that
occurred in licensed child care settings each year.

Sec. 2.

Minnesota Statutes 2018, section 245A.14, is amended by adding a subdivision to
read:

new text begin Subd. 16. new text end

new text begin Reusable water bottles or cups. new text end

new text begin Notwithstanding any law to the contrary, a
child care center that meets the standards in Minnesota Rules, chapter 9503, may provide
drinking water to a child in a reusable water bottle or reusable cup if the center develops
and ensures implementation of a written policy that at a minimum includes the following
procedures:
new text end

new text begin (1) each day the water bottle or cup is used, the child care center cleans and sanitizes
the water bottle or cup using procedures that comply with the Food Code under Minnesota
Rules, chapter 4626;
new text end

new text begin (2) a water bottle or cup is assigned to a specific child and labeled with the child's first
and last name;
new text end

new text begin (3) water bottles and cups are stored in a manner that reduces the risk of a child using
the wrong water bottle or cup; and
new text end

new text begin (4) a water bottle or cup is used only for water.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019.
new text end

Sec. 3.

Minnesota Statutes 2018, section 245A.145, subdivision 1, is amended to read:

Subdivision 1.

Policies and procedures.

(a) deleted text begin All licensed child care providers deleted text end new text begin The
Department of Human Services new text end must develop policies and procedures for reporting suspected
child maltreatment that fulfill the requirements in section 626.556 and deleted text begin must develop policies
and procedures for reporting complaints about the operation of a child care program. The
policies and procedures must include the telephone numbers of the local county child
protection agency for reporting suspected maltreatment; the county licensing agency for
family and group family child care providers; and the state licensing agency for child care
centers. deleted text end new text begin provide the policies and procedures to all licensed child care providers. The policies
and procedures must be written in plain language.
new text end

(b) The policies and procedures required in paragraph (a) must:

(1) be provided to the parents of all children at the time of enrollment in the child care
program; and

(2) be made available upon request.

Sec. 4.

Minnesota Statutes 2018, section 245A.145, subdivision 2, is amended to read:

Subd. 2.

Licensing agency phone number displayed.

deleted text begin By July 1, 2002, deleted text end A new or
renewed child care license must include new text begin the licensing agency's telephone number and new text end a
statement that informs parents who have deleted text begin concerns deleted text end new text begin questions new text end about their child's care that
they may call the licensing agency. deleted text begin The commissioner shall print the telephone number for
the licensing agency in bold and large font on the license issued to child care providers.
deleted text end

Sec. 5.

new text begin [245A.149] SUPERVISION OF FAMILY CHILD CARE LICENSE
HOLDER'S OWN CHILD.
new text end

new text begin Notwithstanding Minnesota Rules, part 9502.0365, subpart 5, an individual may supervise
the family child care license holder's own child both inside and outside of the licensed space,
and is exempt from the requirements of this chapter and Minnesota Rules, chapter 9502, if
the individual:
new text end

new text begin (1) is related to the license holder, as defined in section 245A.02, subdivision 13;
new text end

new text begin (2) is not a designated caregiver, helper, or substitute for the licensed program; and
new text end

new text begin (3) is involved only in the care of the license holder's own child.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019.
new text end

Sec. 6.

Minnesota Statutes 2018, section 245A.41, subdivision 3, is amended to read:

Subd. 3.

Emergency preparedness.

(a) deleted text begin No later than September 30, 2017, deleted text end A licensed
child care center must have a written emergency plan for emergencies that require evacuation,
sheltering, or other protection of a child, such as fire, natural disaster, intruder, or other
threatening situation that may pose a health or safety hazard to a child. The plan must be
written on a form developed by the commissioner and must include:

(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;

(2) a designated relocation site and evacuation route;

(3) procedures for notifying a child's parent or legal guardian of the evacuation, relocation,
shelter-in-place, or lockdown, including procedures for reunification with families;

(4) accommodations for a child with a disability or a chronic medical condition;

(5) procedures for storing a child's medically necessary medicine that facilitates easy
removal during an evacuation or relocation;

(6) procedures for continuing operations in the period during and after a crisis; deleted text begin and
deleted text end

(7) procedures for communicating with local emergency management officials, law
enforcement officials, or other appropriate state or local authorities deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) accommodations for infants and toddlers.
new text end

(b) The license holder must train staff persons on the emergency plan at orientation,
when changes are made to the plan, and at least once each calendar year. Training must be
documented in each staff person's personnel file.

(c) The license holder must conduct drills according to the requirements in Minnesota
Rules, part 9503.0110, subpart 3. The date and time of the drills must be documented.

(d) The license holder must review and update the emergency plan annually.
Documentation of the annual emergency plan review shall be maintained in the program's
administrative records.

(e) The license holder must include the emergency plan in the program's policies and
procedures as specified under section 245A.04, subdivision 14. The license holder must
provide a physical or electronic copy of the emergency plan to the child's parent or legal
guardian upon enrollment.

(f) The relocation site and evacuation route must be posted in a visible place as part of
the written procedures for emergencies and accidents in Minnesota Rules, part 9503.0140,
subpart 21.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019.
new text end

Sec. 7.

Minnesota Statutes 2018, section 245A.50, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Training exemption. new text end

new text begin An individual who is related to the license holder, as
defined in section 245A.02, subdivision 13, who is involved only in the care of the family
child care license holder's own child and who is not a designated caregiver, helper, or
substitute for the licensed program is exempt from the training requirements in this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019.
new text end

Sec. 8.

Minnesota Statutes 2018, section 245A.51, subdivision 3, is amended to read:

Subd. 3.

Emergency preparedness plan.

(a) deleted text begin No later than September 30, 2017, deleted text end a
licensed family child care provider must have a written emergency preparedness plan for
emergencies that require evacuation, sheltering, or other protection of children, such as fire,
natural disaster, intruder, or other threatening situation that may pose a health or safety
hazard to children. The plan must be written on a form developed by the commissioner and
updated at least annually. The plan must include:

(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;

(2) a designated relocation site and evacuation route;

(3) procedures for notifying a child's parent or legal guardian of the evacuation,
shelter-in-place, or lockdown, including procedures for reunification with families;

(4) accommodations for a child with a disability or a chronic medical condition;

(5) procedures for storing a child's medically necessary medicine that facilitate easy
removal during an evacuation or relocation;

(6) procedures for continuing operations in the period during and after a crisis; deleted text begin and
deleted text end

(7) procedures for communicating with local emergency management officials, law
enforcement officials, or other appropriate state or local authorities deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) accommodations for infants and toddlers.
new text end

(b) The license holder must train caregivers before the caregiver provides care and at
least annually on the emergency preparedness plan and document completion of this training.

(c) The license holder must conduct drills according to the requirements in Minnesota
Rules, part 9502.0435, subpart 8. The date and time of the drills must be documented.

(d) The license holder must have the emergency preparedness plan available for review
and posted in a prominent location. The license holder must provide a physical or electronic
copy of the plan to the child's parent or legal guardian upon enrollment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019.
new text end

Sec. 9.

new text begin [245A.53] SUBSTITUTE CAREGIVERS AND REPLACEMENTS IN
FAMILY CHILD CARE.
new text end

new text begin Subdivision 1. new text end

new text begin Total hours allowed. new text end

new text begin Notwithstanding Minnesota Rules, part 9502.0365,
subpart 5, the use of a substitute caregiver in a licensed family child care program must be
limited to a cumulative total of not more than 400 hours in a calendar year. The license
holder must document the name, dates, and number of hours of the substitute who provided
care.
new text end

new text begin Subd. 2. new text end

new text begin Emergency replacement supervision. new text end

new text begin (a) A license holder may allow an adult
who has not completed the training requirements under this chapter or the background study
requirements under chapter 245C to supervise children in a family child care program in
an emergency. For purposes of this subdivision, an emergency is a situation in which:
new text end

new text begin (1) the license holder has begun operating the family child care program for the day and
for reasons beyond the license holder's control, including, but not limited to a serious illness
or injury, accident, or situation requiring the license holder's immediate attention, the license
holder needs to leave the licensed space and close the program for the day; and
new text end

new text begin (2) the parents or guardians of the children attending the program are contacted to pick
up their children as soon as is practicable.
new text end

new text begin (b) The license holder must make reasonable efforts to minimize the time the emergency
replacement has unsupervised contact with the children in care, not to exceed 24 hours per
emergency incident.
new text end

new text begin (c) The license holder shall not knowingly use a person as an emergency replacement
who has committed an action or has been convicted of a crime that would cause the person
to be disqualified from providing care to children, if a background study was conducted
under chapter 245C.
new text end

new text begin (d) To the extent practicable, the license holder must attempt to arrange for emergency
care by a substitute caregiver before using an emergency replacement.
new text end

new text begin (e) To the extent practicable, the license holder must notify the county licensing agency
within seven days that an emergency replacement was used, and specify the circumstances
that led to the use of the emergency replacement. The county licensing agency must notify
the commissioner within three business days after receiving the license holder's notice that
an emergency replacement was used, and specify the circumstances that led to the use of
the emergency replacement.
new text end

new text begin (f) Notwithstanding the requirements in Minnesota Rules, part 9502.0405, a license
holder is not required to provide the names of persons who may be used as substitutes or
replacements in emergencies to parents or the county licensing agency.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019.
new text end

Sec. 10.

Minnesota Statutes 2018, section 245H.15, subdivision 1, is amended to read:

Subdivision 1.

Written emergency plan.

(a) A certified center must have a written
emergency plan for emergencies that require evacuation, sheltering, or other protection of
children, such as fire, natural disaster, intruder, or other threatening situation that may pose
a health or safety hazard to children. The plan must be written on a form developed by the
commissioner and reviewed and updated at least once each calendar year. The annual review
of the emergency plan must be documented.

(b) The plan must include:

(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;

(2) a designated relocation site and evacuation route;

(3) procedures for notifying a child's parent or legal guardian of the relocation and
reunification with families;

(4) accommodations for a child with a disability or a chronic medical condition;

(5) procedures for storing a child's medically necessary medicine that facilitates easy
removal during an evacuation or relocation;

(6) procedures for continuing operations in the period during and after a crisis; deleted text begin and
deleted text end

(7) procedures for communicating with local emergency management officials, law
enforcement officials, or other appropriate state or local authorities deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) accommodations for infants and toddlers.
new text end

(c) The certification holder must have an emergency plan available for review upon
request by the child's parent or legal guardian.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019.
new text end

ARTICLE 4

PROGRAM INTEGRITY

Section 1.

Minnesota Statutes 2018, section 13.46, subdivision 3, is amended to read:

Subd. 3.

Investigative data.

(a) Data on persons, including data on vendors of services,
licensees, and applicants that is collected, maintained, used, or disseminated by the welfare
system in an investigation, authorized by statute, and relating to the enforcement of rules
or law are confidential data on individuals pursuant to section 13.02, subdivision 3, or
protected nonpublic data not on individuals pursuant to section 13.02, subdivision 13, and
shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to statute or valid court order;

(3) to a party named in a civil or criminal proceeding, administrative or judicial, for
preparation of defense; deleted text begin or
deleted text end

new text begin (4) to an agent of the welfare system or an investigator acting on behalf of a county,
state, or federal government, including a law enforcement officer or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding, unless the
commissioner of human services determines that disclosure may compromise a Department
of Human Services ongoing investigation; or
new text end

deleted text begin (4) deleted text end new text begin (5) new text end to provide notices required or permitted by statute.

The data referred to in this subdivision shall be classified as public data upon submission
to an administrative law judge or court in an administrative or judicial proceeding. Inactive
welfare investigative data shall be treated as provided in section 13.39, subdivision 3.

(b) Notwithstanding any other provision in law, the commissioner of human services
shall provide all active and inactive investigative data, including the name of the reporter
of alleged maltreatment under section 626.556 or 626.557, to the ombudsman for mental
health and developmental disabilities upon the request of the ombudsman.

(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation
by the commissioner new text begin of human services new text end of possible overpayments of public funds to a service
provider or recipient may be disclosed if the commissioner determines that it will not
compromise the investigation.

Sec. 2.

Minnesota Statutes 2018, section 15C.02, is amended to read:

15C.02 LIABILITY FOR CERTAIN ACTS.

(a) A person who commits any act described in clauses (1) to (7) is liable to the state or
the political subdivision for a civil penalty deleted text begin of not less than $5,500 and not more than $11,000
per false or fraudulent claim deleted text end new text begin in the amounts set forth in the federal False Claims Act, United
States Code, title 31, section 3729, and as modified by the federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 new text end , plus three times the amount of damages that
the state or the political subdivision sustains because of the act of that person, except as
otherwise provided in paragraph (b):

(1) knowingly presents, or causes to be presented, a false or fraudulent claim for payment
or approval;

(2) knowingly makes or uses, or causes to be made or used, a false record or statement
material to a false or fraudulent claim;

(3) knowingly conspires to commit a violation of clause (1), (2), (4), (5), (6), or (7);

(4) has possession, custody, or control of property or money used, or to be used, by the
state or a political subdivision and knowingly delivers or causes to be delivered less than
all of that money or property;

(5) is authorized to make or deliver a document certifying receipt for money or property
used, or to be used, by the state or a political subdivision and, intending to defraud the state
or a political subdivision, makes or delivers the receipt without completely knowing that
the information on the receipt is true;

(6) knowingly buys, or receives as a pledge of an obligation or debt, public property
from an officer or employee of the state or a political subdivision who lawfully may not
sell or pledge the property; or

(7) knowingly makes or uses, or causes to be made or used, a false record or statement
material to an obligation to pay or transmit money or property to the state or a political
subdivision, or knowingly conceals or knowingly and improperly avoids or decreases an
obligation to pay or transmit money or property to the state or a political subdivision.

(b) Notwithstanding paragraph (a), the court may assess not less than two times the
amount of damages that the state or the political subdivision sustains because of the act of
the person if:

(1) the person committing a violation under paragraph (a) furnished an officer or
employee of the state or the political subdivision responsible for investigating the false or
fraudulent claim violation with all information known to the person about the violation
within 30 days after the date on which the person first obtained the information;

(2) the person fully cooperated with any investigation by the state or the political
subdivision of the violation; and

(3) at the time the person furnished the state or the political subdivision with information
about the violation, no criminal prosecution, civil action, or administrative action had been
commenced under this chapter with respect to the violation and the person did not have
actual knowledge of the existence of an investigation into the violation.

(c) A person violating this section is also liable to the state or the political subdivision
for the costs of a civil action brought to recover any penalty or damages.

(d) A person is not liable under this section for mere negligence, inadvertence, or mistake
with respect to activities involving a false or fraudulent claim.

Sec. 3.

Minnesota Statutes 2018, section 119B.02, subdivision 6, is amended to read:

Subd. 6.

Data.

new text begin (a) new text end Data collected, maintained, used, or disseminated by the welfare
system pertaining to persons selected as legal nonlicensed child care providers by families
receiving child care assistance shall be treated as licensing data as provided in section 13.46,
subdivision 4.

new text begin (b) For purposes of this paragraph, "child care assistance program payment data" means
data for a specified time period showing (1) that a child care assistance program payment
under this chapter was made, and (2) the amount of child care assistance payments made
to a child care center. Child care assistance program payment data may include the number
of families and children on whose behalf payments were made for the specified time period.
Any child care assistance program payment data that may identify a specific child care
assistance recipient or benefit paid on behalf of a specific child care assistance recipient,
as determined by the commissioner, is private data on individuals as defined in section
13.02, subdivision 12. Data related to a child care assistance payment is public if the data
relates to a child care assistance payment made to a licensed child care center or a child
care center exempt from licensure and:
new text end

new text begin (1) the child care center receives payment of more than $100,000 from the child care
assistance program under this chapter in a period of one year or less; or
new text end

new text begin (2) when the commissioner or county agency either:
new text end

new text begin (i) disqualified the center from receipt of a payment from the child care assistance
program under this chapter for wrongfully obtaining child care assistance under section
256.98, subdivision 8, paragraph (c);
new text end

new text begin (ii) refused a child care authorization, revoked a child care authorization, stopped
payment, or denied payment for a bill for the center under section 119B.13, subdivision 6,
paragraph (d); or
new text end

new text begin (iii) made a finding of financial misconduct under section 245E.02.
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. 4.

Minnesota Statutes 2018, section 119B.09, subdivision 7, is amended to read:

Subd. 7.

Date of eligibility for assistance.

(a) The date of eligibility for child care
assistance under this chapter is the later of the date the application was received by the
county; the beginning date of employment, education, or training; the date the infant is born
for applicants to the at-home infant care program; or the date a determination has been made
that the applicant is a participant in employment and training services under Minnesota
Rules, part 3400.0080, or chapter 256J.

(b) Payment ceases for a family under the at-home infant child care program when a
family has used a total of 12 months of assistance as specified under section 119B.035.
Payment of child care assistance for employed persons on MFIP is effective the date of
employment or the date of MFIP eligibility, whichever is later. Payment of child care
assistance for MFIP or DWP participants in employment and training services is effective
the date of commencement of the services or the date of MFIP or DWP eligibility, whichever
is later. Payment of child care assistance for transition year child care must be made
retroactive to the date of eligibility for transition year child care.

(c) Notwithstanding paragraph (b), payment of child care assistance for participants
eligible under section 119B.05 may only be made retroactive for a maximum of deleted text begin six deleted text end new text begin three new text end
months from the date of application for child care assistance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 5.

Minnesota Statutes 2018, section 119B.125, subdivision 6, is amended to read:

Subd. 6.

Record-keeping requirement.

new text begin (a) As a condition of payment, new text end all providers
receiving child care assistance payments must new text begin :
new text end

new text begin (1) new text end keep new text begin accurate and legible new text end daily attendance records at the site where services are
delivered for children receiving child care assistance new text begin ; new text end and

deleted text begin must deleted text end new text begin (2) new text end make those records available immediately to the county or the commissioner
upon request. new text begin Any records not provided to a county or the commissioner at the date and
time of the request are deemed inadmissible if offered as evidence by the provider in any
proceeding to contest an overpayment or disqualification of the provider.
new text end

deleted text begin The deleted text end new text begin (b) As a condition of payment, new text end attendance records must be completed daily and
include the date, the first and last name of each child in attendance, and the times when
each child is dropped off and picked up. To the extent possible, the times that the child was
dropped off to and picked up from the child care provider must be entered by the person
dropping off or picking up the child. The daily attendance records must be retained at the
site where services are delivered for six years after the date of service.

new text begin (c) new text end A county or the commissioner may deny new text begin or revoke a provider's new text end authorization deleted text begin as a
child care provider to any applicant, rescind authorization of any provider, deleted text end new text begin to receive child
care assistance payments under section 119B.13, subdivision 6, paragraph (d), pursue a
fraud disqualification under section 256.98, take an action against the provider under chapter
245E, new text end or establish an new text begin attendance record new text end overpayment deleted text begin claim in the system deleted text end new text begin under paragraph
(d) new text end against a current or former provider, when the county or the commissioner knows or
has reason to believe that the provider has not complied with the record-keeping requirement
in this subdivision. deleted text begin A provider's failure to produce attendance records as requested on more
than one occasion constitutes grounds for disqualification as a provider.
deleted text end

new text begin (d) To calculate an attendance record overpayment under this subdivision, the
commissioner or county agency shall subtract the maximum daily rate from the total amount
paid to a provider for each day that a child's attendance record is missing, unavailable,
incomplete, inaccurate, or otherwise inadequate.
new text end

new text begin (e) The commissioner shall develop criteria for a county to determine an attendance
record overpayment under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 6.

Minnesota Statutes 2018, section 119B.13, subdivision 6, is amended to read:

Subd. 6.

Provider payments.

(a) new text begin A provider shall bill only for services documented
according to section 119B.125, subdivision 6. new text end The provider shall bill for services provided
within ten days of the end of the service period. Payments under the child care fund shall
be made within 21 days of receiving a complete bill from the provider. Counties or the state
may establish policies that make payments on a more frequent basis.

(b) If a provider has received an authorization of care and been issued a billing form for
an eligible family, the bill must be submitted within 60 days of the last date of service on
the bill. A bill submitted more than 60 days after the last date of service must be paid if the
county determines that the provider has shown good cause why the bill was not submitted
within 60 days. Good cause must be defined in the county's child care fund plan under
section 119B.08, subdivision 3, and the definition of good cause must include county error.
Any bill submitted more than a year after the last date of service on the bill must not be
paid.

(c) If a provider provided care for a time period without receiving an authorization of
care and a billing form for an eligible family, payment of child care assistance may only be
made retroactively for a maximum of six months from the date the provider is issued an
authorization of care and billing form.

(d) A county or the commissioner may refuse to issue a child care authorization to a
licensed or legal nonlicensed provider, revoke an existing child care authorization to a
licensed or legal nonlicensed provider, stop payment issued to a licensed or legal nonlicensed
provider, or refuse to pay a bill submitted by a licensed or legal nonlicensed provider if:

(1) the provider admits to intentionally giving the county materially false information
on the provider's billing forms;

(2) a county or the commissioner finds by a preponderance of the evidence that the
provider intentionally gave the county materially false information on the provider's billing
forms, or provided false attendance records to a county or the commissioner;

(3) the provider is in violation of child care assistance program rules, until the agency
determines those violations have been corrected;

(4) the provider is operating after:

(i) an order of suspension of the provider's license issued by the commissioner;

(ii) an order of revocation of the provider's license; or

(iii) a final order of conditional license issued by the commissioner for as long as the
conditional license is in effect;

(5) the provider submits false attendance reports or refuses to provide documentation
of the child's attendance upon request; deleted text begin or
deleted text end

(6) the provider gives false child care price information deleted text begin . deleted text end new text begin ; or
new text end

new text begin (7) the provider fails to report decreases in a child's attendance, as required under section
119B.125, subdivision 9.
new text end

(e) For purposes of paragraph (d), clauses (3), (5), deleted text begin and deleted text end (6), new text begin and (7), new text end the county or the
commissioner may withhold the provider's authorization or payment for a period of time
not to exceed three months beyond the time the condition has been corrected.

(f) A county's payment policies must be included in the county's child care plan under
section 119B.08, subdivision 3. If payments are made by the state, in addition to being in
compliance with this subdivision, the payments must be made in compliance with section
16A.124.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 7.

Minnesota Statutes 2018, section 119B.13, subdivision 7, is amended to read:

Subd. 7.

Absent days.

(a) Licensed child care providers and license-exempt centers
must not be reimbursed for more than 25 full-day absent days per child, excluding holidays,
in a deleted text begin fiscal deleted text end new text begin calendar new text end year, or for more than ten consecutive full-day absent days. new text begin "Absent
day" means any day that the child is authorized and scheduled to be in care with a licensed
provider or license-exempt center, and the child is absent from the care for the entire day.
new text end Legal nonlicensed family child care providers must not be reimbursed for absent days. If a
child attends for part of the time authorized to be in care in a day, but is absent for part of
the time authorized to be in care in that same day, the absent time must be reimbursed but
the time must not count toward the absent days limit. Child care providers must only be
reimbursed for absent days if the provider has a written policy for child absences and charges
all other families in care for similar absences.

(b) Notwithstanding paragraph (a), children with documented medical conditions that
cause more frequent absences may exceed the 25 absent days limit, or ten consecutive
full-day absent days limit. Absences due to a documented medical condition of a parent or
sibling who lives in the same residence as the child receiving child care assistance do not
count against the absent days limit in a deleted text begin fiscal deleted text end new text begin calendar new text end year. Documentation of medical
conditions must be on the forms and submitted according to the timelines established by
the commissioner. A public health nurse or school nurse may verify the illness in lieu of a
medical practitioner. If a provider sends a child home early due to a medical reason,
including, but not limited to, fever or contagious illness, the child care center director or
lead teacher may verify the illness in lieu of a medical practitioner.

(c) Notwithstanding paragraph (a), children in families may exceed the absent days limit
if at least one parent: (1) is under the age of 21; (2) does not have a high school diploma or
commissioner of education-selected high school equivalency certification; and (3) is a
student in a school district or another similar program that provides or arranges for child
care, parenting support, social services, career and employment supports, and academic
support to achieve high school graduation, upon request of the program and approval of the
county. If a child attends part of an authorized day, payment to the provider must be for the
full amount of care authorized for that day.

(d) Child care providers must be reimbursed for up to ten federal or state holidays or
designated holidays per year when the provider charges all families for these days and the
holiday or designated holiday falls on a day when the child is authorized to be in attendance.
Parents may substitute other cultural or religious holidays for the ten recognized state and
federal holidays. Holidays do not count toward the absent days limit.

(e) A family or child care provider must not be assessed an overpayment for an absent
day payment unless (1) there was an error in the amount of care authorized for the family,
(2) all of the allowed full-day absent payments for the child have been paid, or (3) the family
or provider did not timely report a change as required under law.

(f) The provider and family shall receive notification of the number of absent days used
upon initial provider authorization for a family and ongoing notification of the number of
absent days used as of the date of the notification.

(g) For purposes of this subdivision, "absent days limit" means 25 full-day absent days
per child, excluding holidays, in a deleted text begin fiscal deleted text end new text begin calendar new text end year; and ten consecutive full-day absent
days.

new text begin (h) For purposes of this subdivision, "holidays limit" means ten full-day holidays per
child, excluding absent days, in a calendar year.
new text end

new text begin (i) If a day meets the criteria of an absent day or a holiday under this subdivision, the
provider must bill that day as an absent day or holiday. A provider's failure to properly bill
an absent day or a holiday results in an overpayment, regardless of whether the child reached,
or is exempt from, the absent days limit or holidays limit for the calendar year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 8.

Minnesota Statutes 2018, section 124D.142, is amended to read:

124D.142 QUALITY RATING AND IMPROVEMENT SYSTEM.

(a) There is established a quality rating and improvement system (QRIS) framework to
ensure that Minnesota's children have access to high-quality early learning and care programs
in a range of settings so that they are fully ready for kindergarten deleted text begin by 2020 deleted text end . deleted text begin Creation of a deleted text end new text begin
The new text end standards-based voluntary quality rating and improvement system includes:

(1) quality opportunities in order to improve the educational outcomes of children so
that they are ready for school. The framework shall be based on the Minnesota quality rating
system rating tool and a common set of child outcome and program standards and informed
by evaluation results;

(2) a tool to increase the number of publicly funded and regulated early learning and
care services in both public and private market programs that are high quality. If a program
or provider chooses to participate, the program or provider will be rated and may receive
public funding associated with the rating. The state shall develop a plan to link future early
learning and care state funding to the framework in a manner that complies with federal
requirements; and

(3) tracking progress toward statewide access to high-quality early learning and care
programs, progress toward the number of low-income children whose parents can access
quality programs, and progress toward increasing the number of children who are fully
prepared to enter kindergarten.

deleted text begin (b) In planning a statewide quality rating and improvement system framework in
paragraph (a), the state shall use evaluation results of the Minnesota quality rating system
rating tool in use in fiscal year 2008 to recommend:
deleted text end

deleted text begin (1) a framework of a common set of child outcome and program standards for a voluntary
statewide quality rating and improvement system;
deleted text end

deleted text begin (2) a plan to link future funding to the framework described in paragraph (a), clause (2);
and
deleted text end

deleted text begin (3) a plan for how the state will realign existing state and federal administrative resources
to implement the voluntary quality rating and improvement system framework. The state
shall provide the recommendation in this paragraph to the early childhood education finance
committees of the legislature by March 15, 2011.
deleted text end

deleted text begin (c) Prior to the creation of a statewide quality rating and improvement system in paragraph
(a), the state shall employ the Minnesota quality rating system rating tool in use in fiscal
year 2008 in the original Minnesota Early Learning Foundation pilot areas and additional
pilot areas supported by private or public funds with its modification as a result of the
evaluation results of the pilot project.
deleted text end

new text begin (b) A child care provider who has a quality rating under this section and is disqualified
from receiving child care assistance program reimbursement under chapter 119B, as provided
under section 256.98, subdivision 8, paragraph (c), must also have the quality rating
rescinded.
new text end

Sec. 9.

Minnesota Statutes 2018, section 124D.165, subdivision 4, is amended to read:

Subd. 4.

Early childhood program eligibility.

(a) In order to be eligible deleted text begin to accept an deleted text end new text begin
for new text end early learning scholarship new text begin funds new text end , a program must:

(1) participate in the quality rating and improvement system under section 124D.142;
and

(2) beginning July 1, 2020, have a three- or four-star rating in the quality rating and
improvement system.

(b) Any program accepting scholarships must use the revenue to supplement and not
supplant federal funding.

(c) Notwithstanding paragraph (a), all Minnesota early learning foundation scholarship
program pilot sites are eligible to accept an early learning scholarship under this section.

new text begin (d) A program is not eligible for early learning scholarship funds if:
new text end

new text begin (1) it is disqualified from receiving payment for child care services from the child care
assistance program under chapter 119B, as provided under section 256.98, subdivision 8,
paragraph (c); or
new text end

new text begin (2) the commissioner of human services refuses to issue a child care authorization,
revokes an existing child care authorization, stops payment issued to a program, or refuses
to pay a bill under section 119B.13, subdivision 6, paragraph (d), clause (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 10.

Minnesota Statutes 2018, section 245.095, is amended to read:

245.095 LIMITS ON RECEIVING PUBLIC FUNDS.

Subdivision 1.

Prohibition.

new text begin (a) new text end If a provider, vendor, or individual enrolled, licensed,
deleted text begin or deleted text end receiving funds under a grant contract new text begin , or registered new text end in any program administered by the
commissioner new text begin , including under the commissioner's powers and authorities in section 256.01, new text end
is excluded from deleted text begin any deleted text end new text begin that new text end program deleted text begin administered by the commissioner, including under the
commissioner's powers and authorities in section 256.01 deleted text end , the commissioner shall new text begin :
new text end

new text begin (1) new text end prohibit the excluded provider, vendor, or individual from enrolling deleted text begin or deleted text end new text begin , new text end becoming
licensed new text begin , receiving grant funds, or registering new text end in any other program administered by the
commissioner deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) disenroll, revoke or suspend a license, disqualify, or debar the excluded provider,
vendor, or individual in any other program administered by the commissioner.
new text end

new text begin (b) new text end The duration of this prohibition new text begin , disenrollment, revocation, suspension,
disqualification, or debarment new text end must last for the longest applicable sanction or disqualifying
period in effect for the provider, vendor, or individual permitted by state or federal law.

Subd. 2.

Definitions.

(a) For purposes of this section, the following definitions have the
meanings given them.

(b) "Excluded" means disenrolled, deleted text begin subject to license revocation or suspension,
disqualified, or subject to vendor debarment deleted text end new text begin disqualified, having a license that has been
revoked or suspended under chapter 245A, or debarred or suspended new text end under Minnesota Rules,
part 1230.1150 new text begin , or excluded pursuant to section 256B.064, subdivision 3 new text end .

(c) "Individual" means a natural person providing products or services as a provider or
vendor.

(d) "Provider" deleted text begin means deleted text end new text begin includes any entity or individual receiving payment from a program
administered by the Department of Human Services, and new text end an owner, controlling individual,
license holder, director, or managerial official new text begin of an entity receiving payment from a program
administered by the Department of Human Services 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. 11.

Minnesota Statutes 2018, section 245A.02, subdivision 3, is amended to read:

Subd. 3.

Applicant.

"Applicant" means an individual, deleted text begin corporation, partnership, voluntary
association, controlling individual, or other deleted text end organization new text begin , or government entity, as defined
in section 13.02, subdivision 7a, new text end that deleted text begin has applied for licensure under this chapter and the
rules of the commissioner deleted text end new text begin is subject to licensure under this chapter and that has applied for
but not yet been granted a license under this chapter new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 12.

Minnesota Statutes 2018, section 245A.02, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Authorized agent. new text end

new text begin "Authorized agent" means the controlling individual
designated by the license holder responsible for communicating with the commissioner of
human services on all matters related to this chapter and on whom service of all notices and
orders must be made pursuant to section 245A.04, subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 13.

Minnesota Statutes 2018, section 245A.02, subdivision 8, is amended to read:

Subd. 8.

License.

"License" means a certificate issued by the commissioner new text begin under section
245A.04 new text end authorizing the license holder to provide a specified program for a specified period
of time and in accordance with the terms of the license and the rules of the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 14.

Minnesota Statutes 2018, section 245A.02, subdivision 9, is amended to read:

Subd. 9.

License holder.

"License holder" means an individual, deleted text begin corporation, partnership,
voluntary association, or other deleted text end organization new text begin , or government entity new text end that is legally responsible
for the operation of the program new text begin or service new text end , new text begin and new text end has been granted a license by the
commissioner under this chapter deleted text begin or chapter 245D deleted text end and the rules of the commissioner deleted text begin , and
is a controlling individual deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 15.

Minnesota Statutes 2018, section 245A.02, is amended by adding a subdivision
to read:

new text begin Subd. 10c. new text end

new text begin Organization. new text end

new text begin "Organization" means a domestic or foreign corporation,
nonprofit corporation, limited liability company, partnership, limited partnership, limited
liability partnership, association, voluntary association, and any other legal or commercial
entity. For purposes of this chapter, organization does not include a government entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 16.

Minnesota Statutes 2018, section 245A.02, subdivision 12, is amended to read:

Subd. 12.

Private agency.

"Private agency" means an deleted text begin individual, corporation, partnership,
voluntary association or other deleted text end organization, other than a county agency, or a court with
jurisdiction, that places persons who cannot remain in their own homes in residential
programs, foster care, or adoptive homes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 17.

Minnesota Statutes 2018, section 245A.02, subdivision 14, is amended to read:

Subd. 14.

Residential program.

new text begin (a) Except as provided in paragraph (b), new text end "residential
program" means a program that provides 24-hour-a-day care, supervision, food, lodging,
rehabilitation, training, education, habilitation, or treatment outside a person's own home,
including a program in an intermediate care facility for four or more persons with
developmental disabilities; and chemical dependency or chemical abuse programs that are
located in a hospital or nursing home and receive public funds for providing chemical abuse
or chemical dependency treatment services under chapter 254B. deleted text begin Residential programs
include home and community-based services for persons with disabilities or persons age
65 and older that are provided in or outside of a person's own home under chapter 245D.
deleted text end

new text begin (b) For a residential program under chapter 245D, "residential program" means a single
or multifamily dwelling that is under the control, either directly or indirectly, of the service
provider licensed under chapter 245D and in which at least one person receives services
under chapter 245D, including residential supports and services under section 245D.03,
subdivision 1, paragraph (c), clause (3); out-of-home crisis respite services under section
245D.03, subdivision 1, paragraph (c), clause (1), item (ii); and out-of-home respite services
under section 245D.03, subdivision 1, paragraph (b), clause (1). A residential program does
not include out-of-home respite services when a case manager has determined that an
unlicensed site meets the assessed needs of the person. A residential program also does not
include multifamily dwellings where persons receive integrated community supports, even
if authorization to provide these supports is granted under chapter 245D and approved in
the federal waiver.
new text end

Sec. 18.

Minnesota Statutes 2018, section 245A.03, subdivision 1, is amended to read:

Subdivision 1.

License required.

Unless licensed by the commissioner new text begin under this chapter new text end ,
an individual, deleted text begin corporation, partnership, voluntary association, other deleted text end organization, or
deleted text begin controlling individual deleted text end new text begin government entity new text end must not:

(1) operate a residential or a nonresidential program;

(2) receive a child or adult for care, supervision, or placement in foster care or adoption;

(3) help plan the placement of a child or adult in foster care or adoption or engage in
placement activities as defined in section 259.21, subdivision 9, in this state, whether or not
the adoption occurs in this state; or

(4) advertise a residential or nonresidential program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 19.

Minnesota Statutes 2018, section 245A.03, subdivision 3, is amended to read:

Subd. 3.

Unlicensed programs.

(a) It is a misdemeanor for an individual, deleted text begin corporation,
partnership, voluntary association, other deleted text end organization, or deleted text begin a controlling individual deleted text end new text begin government
entity new text end to provide a residential or nonresidential program without a license new text begin issued under this
chapter new text end and in willful disregard of this chapter unless the program is excluded from licensure
under subdivision 2.

(b) The commissioner may ask the appropriate county attorney or the attorney general
to begin proceedings to secure a court order against the continued operation of the program,
if an individual, deleted text begin corporation, partnership, voluntary association, other deleted text end organization, or
deleted text begin controlling individual deleted text end new text begin government entity new text end has:

(1) failed to apply for a license new text begin under this chapter new text end after receiving notice that a license is
required or continues to operate without a license after receiving notice that a license is
required;

(2) continued to operate without a license after deleted text begin the deleted text end new text begin a new text end license new text begin issued under this chapter
new text end has been revoked or suspended under deleted text begin section 245A.07 deleted text end new text begin this chapter new text end , and the commissioner
has issued a final order affirming the revocation or suspension, or the license holder did not
timely appeal the sanction; or

(3) continued to operate without a license after deleted text begin the deleted text end new text begin a temporary immediate suspension
of a new text end license has been deleted text begin temporarily suspended under section 245A.07 deleted text end new text begin issued under this chapter new text end .

new text begin (c) new text end The county attorney and the attorney general have a duty to cooperate with the
commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 20.

Minnesota Statutes 2018, section 245A.04, subdivision 1, is amended to read:

Subdivision 1.

Application for licensure.

(a) An individual, deleted text begin corporation, partnership,
voluntary association, other deleted text end organization deleted text begin or controlling individual deleted text end new text begin , or government entity new text end
that is subject to licensure under section 245A.03 must apply for a license. The application
must be made on the forms and in the manner prescribed by the commissioner. The
commissioner shall provide the applicant with instruction in completing the application and
provide information about the rules and requirements of other state agencies that affect the
applicant. An applicant seeking licensure in Minnesota with headquarters outside of
Minnesota must have a program office located within new text begin 30 miles of new text end the new text begin Minnesota new text end state new text begin border new text end . new text begin
An applicant who intends to buy or otherwise acquire a program or services licensed under
this chapter that is owned by another license holder must apply for a license under this
chapter and comply with the application procedures in this section and section 245A.03.
new text end

The commissioner shall act on the application within 90 working days after a complete
application and any required reports have been received from other state agencies or
departments, counties, municipalities, or other political subdivisions. The commissioner
shall not consider an application to be complete until the commissioner receives all of the
deleted text begin information deleted text end required deleted text begin under section 245C.05 deleted text end new text begin information new text end .

When the commissioner receives an application for initial licensure that is incomplete
because the applicant failed to submit required documents or that is substantially deficient
because the documents submitted do not meet licensing requirements, the commissioner
shall provide the applicant written notice that the application is incomplete or substantially
deficient. In the written notice to the applicant the commissioner shall identify documents
that are missing or deficient and give the applicant 45 days to resubmit a second application
that is substantially complete. An applicant's failure to submit a substantially complete
application after receiving notice from the commissioner is a basis for license denial under
section 245A.05.

(b) An application for licensure must identify all controlling individuals new text begin as defined in
section 245A.02, subdivision 5a, new text end and must deleted text begin specify an deleted text end new text begin designate one individual to be the
authorized new text end agent deleted text begin who is responsible for dealing with the commissioner of human services
on all matters provided for in this chapter and on whom service of all notices and orders
must be made deleted text end . new text begin The application must be signed by the authorized agent and must include
the authorized agent's first, middle, and last name; mailing address; and e-mail address. By
submitting an application for licensure, the authorized agent consents to electronic
communication with the commissioner throughout the application process. new text end The new text begin authorized
new text end agent must be authorized to accept service on behalf of all of the controlling individuals deleted text begin of
the program deleted text end . new text begin A government entity that holds multiple licenses under this chapter may
designate one authorized agent for all licenses issued under this chapter or may designate
a different authorized agent for each license. new text end Service on the new text begin authorized new text end agent is service on
all of the controlling individuals deleted text begin of the program deleted text end . It is not a defense to any action arising
under this chapter that service was not made on each controlling individual deleted text begin of the program deleted text end .
The designation of deleted text begin one or more deleted text end new text begin a new text end controlling deleted text begin individuals deleted text end new text begin individual new text end as deleted text begin agents deleted text end new text begin the authorized
agent new text end under this paragraph does not affect the legal responsibility of any other controlling
individual under this chapter.

(c) An applicant or license holder must have a policy that prohibits license holders,
employees, subcontractors, and volunteers, when directly responsible for persons served
by the program, from abusing prescription medication or being in any manner under the
influence of a chemical that impairs the individual's ability to provide services or care. The
license holder must train employees, subcontractors, and volunteers about the program's
drug and alcohol policy.

(d) An applicant and license holder must have a program grievance procedure that permits
persons served by the program and their authorized representatives to bring a grievance to
the highest level of authority in the program.

(e) deleted text begin The applicant must be able to demonstrate competent knowledge of the applicable
requirements of this chapter and chapter 245C, and the requirements of other licensing
statutes and rules applicable to the program or services for which the applicant is seeking
to be licensed. Effective January 1, 2013, deleted text end new text begin The commissioner may limit communication
during the application process to the authorized agent or the controlling individuals identified
on the license application and for whom a background study was initiated under chapter
245C. new text end The commissioner may require the applicant, except for child foster care, to
demonstrate competence in the applicable licensing requirements by successfully completing
a written examination. The commissioner may develop a prescribed written examination
format.

(f) When an applicant is an individual, the deleted text begin individual deleted text end new text begin applicant new text end must provide:

(1) the applicant's taxpayer identification numbers including the Social Security number new text begin
or Minnesota tax identification number new text end , and federal employer identification number if the
applicant has employees;

(2) new text begin at the request of the commissioner, a copy of the most recent filing with the secretary
of state that includes new text end the complete business name, if any deleted text begin , and deleted text end new text begin ;
new text end

new text begin (3) new text end if doing business under a different name, the doing business as (DBA) name, as
registered with the secretary of state; deleted text begin and
deleted text end

deleted text begin (3) a notarized signature of the applicant. deleted text end new text begin (4) if applicable, the applicant's National
Provider Identifier (NPI) number and Unique Minnesota Provider Identifier (UMPI) number;
and
new text end

new text begin (5) at the request of the commissioner, the notarized signature of the applicant or
authorized agent.
new text end

(g) When an applicant is deleted text begin a nonindividual deleted text end new text begin an organization new text end , the applicant must provide
deleted text begin the deleted text end :

(1) new text begin the new text end applicant's taxpayer identification numbers including the Minnesota tax
identification number and federal employer identification number;

(2) new text begin at the request of the commissioner, a copy of the most recent filing with the secretary
of state that includes the new text end complete business name, and if doing business under a different
name, the doing business as (DBA) name, as registered with the secretary of state;

(3) new text begin the new text end first, middle, and last name, and address for all individuals who will be controlling
individuals, including all officers, owners, and managerial officials as defined in section
245A.02, subdivision 5a, and the date that the background study was initiated by the applicant
for each controlling individual; deleted text begin and
deleted text end

deleted text begin (4) first, middle, and last name, mailing address, and notarized signature of the agent
authorized by the applicant to accept service on behalf of the controlling individuals.
deleted text end

new text begin (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
Minnesota Provider Identifier (UMPI) number;
new text end

new text begin (5) the documents that created the organization and that determine the organization's
internal governance and the relations among the persons that own the organization, have
an interest in the organization, or are members of the organization, in each case as provided
or authorized by the organization's governing statute, which may include a partnership
agreement, bylaws, articles of organization, organizational chart, and operating agreement,
or comparable documents as provided in the organization's governing statute; and
new text end

new text begin (6) the notarized signature of the applicant or authorized agent.
new text end

new text begin (h) When the applicant is a government entity, the applicant must provide:
new text end

new text begin (1) the name of the government agency, political subdivision, or other unit of government
seeking the license and the name of the program or services that will be licensed;
new text end

new text begin (2) the applicant's taxpayer identification numbers including the Minnesota tax
identification number and federal employer identification number;
new text end

new text begin (3) a letter signed by the manager, administrator, or other executive of the government
entity authorizing the submission of the license application; and
new text end

new text begin (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
Minnesota Provider Identifier (UMPI) number.
new text end

deleted text begin (h) deleted text end new text begin (i) new text end At the time of application for licensure or renewal of a license new text begin under this chapter new text end ,
the applicant or license holder must acknowledge on the form provided by the commissioner
if the applicant or license holder elects to receive any public funding reimbursement from
the commissioner for services provided under the license that:

(1) the applicant's or license holder's compliance with the provider enrollment agreement
or registration requirements for receipt of public funding may be monitored by the
commissioner as part of a licensing investigation or licensing inspection; and

(2) noncompliance with the provider enrollment agreement or registration requirements
for receipt of public funding that is identified through a licensing investigation or licensing
inspection, or noncompliance with a licensing requirement that is a basis of enrollment for
reimbursement for a service, may result in:

(i) a correction order or a conditional license under section 245A.06, or sanctions under
section 245A.07;

(ii) nonpayment of claims submitted by the license holder for public program
reimbursement;

(iii) recovery of payments made for the service;

(iv) disenrollment in the public payment program; or

(v) other administrative, civil, or criminal penalties as provided by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 21.

Minnesota Statutes 2018, section 245A.04, subdivision 2, is amended to read:

Subd. 2.

Notification of affected municipality.

The commissioner must not issue a
license new text begin under this chapter new text end without giving 30 calendar days' written notice to the affected
municipality or other political subdivision unless the program is considered a permitted
single-family residential use under sections 245A.11 and 245A.14. new text begin The commissioner may
provide notice through electronic communication. new text end The notification must be given before
the first issuance of a license new text begin under this chapter new text end 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 January 1, 2020.
new text end

Sec. 22.

Minnesota Statutes 2018, section 245A.04, subdivision 4, is amended to read:

Subd. 4.

Inspections; waiver.

(a) Before issuing deleted text begin an initial deleted text end new text begin a new text end license new text begin under this chapter new text end ,
the commissioner shall conduct an inspection of the program. The inspection must include
but is not limited to:

(1) an inspection of the physical plant;

(2) an inspection of records and documents;

(3) deleted text begin an evaluation of the program by consumers of the program;
deleted text end

deleted text begin (4) deleted text end observation of the program in operation; and

deleted text begin (5) deleted text end new text begin (4) new text end an inspection for the health, safety, and fire standards in licensing requirements
for a child care license holder.

deleted text begin For the purposes of this subdivision, "consumer" means a person who receives the
services of a licensed program, the person's legal guardian, or the parent or individual having
legal custody of a child who receives the services of a licensed program.
deleted text end

(b) The deleted text begin evaluation required in paragraph (a), clause (3), or the deleted text end observation in paragraph
(a), clause deleted text begin (4) deleted text end new text begin (3) new text end , is not required prior to issuing deleted text begin an initial deleted text end new text begin a new text end license under subdivision 7. If
the commissioner issues deleted text begin an initial deleted text end new text begin a new text end license under deleted text begin subdivision 7 deleted text end new text begin this chapter new text end , these
requirements must be completed within one year after the issuance of deleted text begin an initial deleted text end new text begin the new text end license.

(c) Before completing a licensing inspection in a family child care program or child care
center, the licensing agency must offer the license holder an exit interview to discuss
violations of law or rule observed during the inspection and offer technical assistance on
how to comply with applicable laws and rules. Nothing in this paragraph limits the ability
of the commissioner to issue a correction order or negative action for violations of law or
rule not discussed in an exit interview or in the event that a license holder chooses not to
participate in an exit interview.

(d) The commissioner or the county shall inspect at least annually a child care provider
licensed under this chapter and Minnesota Rules, chapter 9502 or 9503, for compliance
with applicable licensing standards.

(e) No later than November 19, 2017, the commissioner shall make publicly available
on the department's website the results of inspection reports of all child care providers
licensed under this chapter and under Minnesota Rules, chapter 9502 or 9503, and the
number of deaths, serious injuries, and instances of substantiated child maltreatment that
occurred in licensed child care settings each year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 23.

Minnesota Statutes 2018, section 245A.04, subdivision 6, is amended to read:

Subd. 6.

Commissioner's evaluation.

new text begin (a) new text end Before issuing, denying, suspending, revoking,
or making conditional a license, the commissioner shall evaluate information gathered under
this section. The commissioner's evaluation shall consider new text begin the applicable requirements of
statutes and rules for the program or services for which the applicant seeks a license,
including the disqualification standards set forth in chapter 245C, and shall evaluate new text end facts,
conditions, or circumstances concerning new text begin :
new text end

new text begin (1) new text end the program's operation deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end the well-being of persons served by the program deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) new text end available deleted text begin consumer deleted text end evaluations of the program deleted text begin , and deleted text end new text begin by persons receiving services;
new text end

new text begin (4) new text end information about the qualifications of the personnel employed by the applicant or
license holder deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) the applicant's or license holder's ability to demonstrate competent knowledge of the
applicable requirements of statutes and rules including this chapter and chapter 245C for
which the applicant seeks a license or the license holder is licensed.
new text end

new text begin (b) new text end The commissioner shall new text begin also new text end evaluate the results of the study required in subdivision
3 and determine whether a risk of harm to the persons served by the program exists. In
conducting this evaluation, the commissioner shall apply the disqualification standards set
forth in chapter 245C.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 24.

Minnesota Statutes 2018, section 245A.04, subdivision 7, is amended to read:

Subd. 7.

Grant of license; license extension.

(a) If the commissioner determines that
the program complies with all applicable rules and laws, the commissioner shall issue a
license new text begin consistent with this section or, if applicable, a temporary change of ownership license
under section 245A.043 new text end . At minimum, the license shall state:

(1) the name of the license holder;

(2) the address of the program;

(3) the effective date and expiration date of the license;

(4) the type of license;

(5) the maximum number and ages of persons that may receive services from the program;
and

(6) any special conditions of licensure.

(b) The commissioner may issue deleted text begin an initial deleted text end new text begin a new text end license for a period not to exceed two years
if:

(1) the commissioner is unable to conduct the evaluation or observation required by
subdivision 4, paragraph (a), deleted text begin clauses (3) and deleted text end new text begin clause new text end (4), because the program is not yet
operational;

(2) certain records and documents are not available because persons are not yet receiving
services from the program; and

(3) the applicant complies with applicable laws and rules in all other respects.

(c) A decision by the commissioner to issue a license does not guarantee that any person
or persons will be placed or cared for in the licensed program. deleted text begin A license shall not be
transferable to another individual, corporation, partnership, voluntary association, other
organization, or controlling individual or to another location.
deleted text end

deleted text begin (d) A license holder must notify the commissioner and obtain the commissioner's approval
before making any changes that would alter the license information listed under paragraph
(a).
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end Except as provided in paragraphs deleted text begin (g) deleted text end new text begin (f) new text end and deleted text begin (h) deleted text end new text begin (g) new text end , the commissioner shall not
issue or reissue a license if the applicant, license holder, or controlling individual has:

(1) been disqualified and the disqualification was not set aside and no variance has been
granted;

(2) been denied a license new text begin under this chapter, new text end within the past two years;

(3) had a license new text begin issued under this chapter new text end revoked within the past five years;

(4) an outstanding debt related to a license fee, licensing fine, or settlement agreement
for which payment is delinquent; or

(5) failed to submit the information required of an applicant under subdivision 1,
paragraph (f) or (g), after being requested by the commissioner.

When a license new text begin issued under this chapter new text end is revoked under clause (1) or (3), the license
holder and controlling individual may not hold any license under chapter 245A deleted text begin or 245D deleted text end for
five years following the revocation, and other licenses held by the applicant, license holder,
or controlling individual shall also be revoked.

deleted text begin (f) deleted text end new text begin (e) new text end The commissioner shall not issue or reissue a license new text begin under this chapter new text end if an
individual living in the household where the deleted text begin licensed deleted text end services will be provided as specified
under section 245C.03, subdivision 1, has been disqualified and the disqualification has not
been set aside and no variance has been granted.

deleted text begin (g) deleted text end new text begin (f) new text end Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license new text begin issued
under this chapter new text end has been suspended or revoked and the suspension or revocation is under
appeal, the program may continue to operate pending a final order from the commissioner.
If the license under suspension or revocation will expire before a final order is issued, a
temporary provisional license may be issued provided any applicable license fee is paid
before the temporary provisional license is issued.

deleted text begin (h) deleted text end new text begin (g) new text end Notwithstanding paragraph deleted text begin (g) deleted text end new text begin (f) new text end , when a revocation is based on the
disqualification of a controlling individual or license holder, and the controlling individual
or license holder is ordered under section 245C.17 to be immediately removed from direct
contact with persons receiving services or is ordered to be under continuous, direct
supervision when providing direct contact services, the program may continue to operate
only if the program complies with the order and submits documentation demonstrating
compliance with the order. If the disqualified individual fails to submit a timely request for
reconsideration, or if the disqualification is not set aside and no variance is granted, the
order to immediately remove the individual from direct contact or to be under continuous,
direct supervision remains in effect pending the outcome of a hearing and final order from
the commissioner.

deleted text begin (i) deleted text end new text begin (h) new text end For purposes of reimbursement for meals only, under the Child and Adult Care
Food Program, Code of Federal Regulations, title 7, subtitle B, chapter II, subchapter A,
part 226, relocation within the same county by a licensed family day care provider, shall
be considered an extension of the license for a period of no more than 30 calendar days or
until the new license is issued, whichever occurs first, provided the county agency has
determined the family day care provider meets licensure requirements at the new location.

deleted text begin (j) deleted text end new text begin (i) new text end Unless otherwise specified by statute, all licenses new text begin issued under this chapter new text end expire
at 12:01 a.m. on the day after the expiration date stated on the license. A license holder must
apply for and be granted a new license to operate the program or the program must not be
operated after the expiration date.

deleted text begin (k) deleted text end new text begin (j) new text end The commissioner shall not issue or reissue a license new text begin under this chapter new text end if it has
been determined that a tribal licensing authority has established jurisdiction to license the
program or service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 25.

Minnesota Statutes 2018, section 245A.04, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Notification required. new text end

new text begin (a) A license holder must notify the commissioner, in
a manner prescribed by the commissioner, and obtain the commissioner's approval before
making any change that would alter the license information listed under subdivision 7,
paragraph (a).
new text end

new text begin (b) A license holder must also notify the commissioner, in a manner prescribed by the
commissioner, before making any change:
new text end

new text begin (1) to the license holder's authorized agent as defined in section 245A.02, subdivision
3b;
new text end

new text begin (2) to the license holder's controlling individual as defined in section 245A.02, subdivision
5a;
new text end

new text begin (3) to the license holder information on file with the secretary of state;
new text end

new text begin (4) in the location of the program or service licensed under this chapter; and
new text end

new text begin (5) in the federal or state tax identification number associated with the license holder.
new text end

new text begin (c) When, for reasons beyond the license holder's control, a license holder cannot provide
the commissioner with prior notice of the changes in paragraph (b), clauses (1) to (3), the
license holder must notify the commissioner by the tenth business day after the change and
must provide any additional information requested by the commissioner.
new text end

new text begin (d) When a license holder notifies the commissioner of a change to the license holder
information on file with the secretary of state, the license holder must provide amended
articles of incorporation and other documentation of the change.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 26.

Minnesota Statutes 2018, section 245A.04, subdivision 10, is amended to read:

Subd. 10.

Adoption agency; additional requirements.

In addition to the other
requirements of this section, an individual deleted text begin , corporation, partnership, voluntary association,
other deleted text end new text begin or new text end organization deleted text begin , or controlling individual deleted text end applying for a license to place children for
adoption must:

(1) incorporate as a nonprofit corporation under chapter 317A;

(2) file with the application for licensure a copy of the disclosure form required under
section 259.37, subdivision 2;

(3) provide evidence that a bond has been obtained and will be continuously maintained
throughout the entire operating period of the agency, to cover the cost of transfer of records
to and storage of records by the agency which has agreed, according to rule established by
the commissioner, to receive the applicant agency's records if the applicant agency voluntarily
or involuntarily ceases operation and fails to provide for proper transfer of the records. The
bond must be made in favor of the agency which has agreed to receive the records; and

(4) submit a certified audit to the commissioner each year the license is renewed as
required under section 245A.03, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 27.

new text begin [245A.043] LICENSE APPLICATION AFTER A CHANGE OF
OWNERSHIP.
new text end

new text begin Subdivision 1. new text end

new text begin Transfer prohibited. new text end

new text begin A license issued under this chapter is only valid
for a premises and individual, organization, or government entity identified by the
commissioner on the license. A license is not transferable or assignable.
new text end

new text begin Subd. 2. new text end

new text begin Change in ownership. new text end

new text begin (a) 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:
new text end

new text begin (1) the license holder sells or transfers 100 percent of the property, stock, or assets;
new text end

new text begin (2) the license holder merges with another organization;
new text end

new text begin (3) the license holder consolidates with two or more organizations, resulting in the
creation of a new organization;
new text end

new text begin (4) there is a change in the federal tax identification number associated with the license
holder; or
new text end

new text begin (5) all controlling individuals associated with the original application have changed.
new text end

new text begin (b) Notwithstanding paragraph (a), clauses (1) and (5), no change in ownership has
occurred if at least one controlling individual has been listed as a controlling individual for
the license for at least the previous 12 months.
new text end

new text begin Subd. 3. new text end

new text begin Change of ownership process. new text end

new text begin (a) When a change in ownership is proposed
and the party intends to assume operation without an interruption in service longer than 60
days after acquiring the program or service, the license holder must provide the commissioner
with written notice of the proposed change on a form provided by the commissioner at least
60 days before the anticipated date of the change in ownership. For purposes of this
subdivision and subdivision 4, "party" means the party that intends to operate the service
or program.
new text end

new text begin (b) The party must submit a license application under this chapter on the form and in
the manner prescribed by the commissioner at least 30 days before the change in ownership
is complete, and must include documentation to support the upcoming change. The party
must comply with background study requirements under chapter 245C and shall pay the
application fee required under section 245A.10. A party that intends to assume operation
without an interruption in service longer than 60 days after acquiring the program or service
is exempt from the requirements of Minnesota Rules, part 9530.6800.
new text end

new text begin (c) The commissioner may streamline application procedures when the party is an existing
license holder under this chapter and is acquiring a program licensed under this chapter or
service in the same service class as one or more licensed programs or services the party
operates and those licenses are in substantial compliance. For purposes of this subdivision,
"substantial compliance" means within the previous 12 months the commissioner did not
(1) issue a sanction under section 245A.07 against a license held by the party, or (2) make
a license held by the party conditional according to section 245A.06.
new text end

new text begin (d) Except when a temporary change in ownership license is issued pursuant to
subdivision 4, the existing license holder is solely responsible for operating the program
according to applicable laws and rules until a license under this chapter is issued to the
party.
new text end

new text begin (e) If a licensing inspection of the program or service was conducted within the previous
12 months and the existing license holder's record demonstrates substantial compliance with
the applicable licensing requirements, the commissioner may waive the party's inspection
required by section 245A.04, subdivision 4. The party must submit to the commissioner (1)
proof that the premises was inspected by a fire marshal or that the fire marshal deemed an
inspection was not warranted, and (2) proof that the premises was inspected for compliance
with the building code or no inspection was deemed warranted.
new text end

new text begin (f) If the party is seeking a license for a program or service that has an outstanding action
under section 245A.06 or 245A.07, the party must submit a letter as part of the application
process identifying how the party has or will come into full compliance with the licensing
requirements.
new text end

new text begin (g) The commissioner shall evaluate the party's application according to section 245A.04,
subdivision 6. If the commissioner determines that the party has remedied or demonstrates
the ability to remedy the outstanding actions under section 245A.06 or 245A.07 and has
determined that the program otherwise complies with all applicable laws and rules, the
commissioner shall issue a license or conditional license under this chapter. The conditional
license remains in effect until the commissioner determines that the grounds for the action
are corrected or no longer exist.
new text end

new text begin (h) The commissioner may deny an application as provided in section 245A.05. An
applicant whose application was denied by the commissioner may appeal the denial according
to section 245A.05.
new text end

new text begin (i) This subdivision does not apply to a licensed program or service located in a home
where the license holder resides.
new text end

new text begin Subd. 4. new text end

new text begin Temporary change in ownership license. new text end

new text begin (a) After receiving the party's
application pursuant to subdivision 3, upon the written request of the existing license holder
and the party, the commissioner may issue a temporary change in ownership license to the
party while the commissioner evaluates the party's application. Until a decision is made to
grant or deny a license under this chapter, the existing license holder and the party shall
both be responsible for operating the program or service according to applicable laws and
rules, and the sale or transfer of the existing license holder's ownership interest in the licensed
program or service does not terminate the existing license.
new text end

new text begin (b) The commissioner may issue a temporary change in ownership license when a license
holder's death, divorce, or other event affects the ownership of the program and an applicant
seeks to assume operation of the program or service to ensure continuity of the program or
service while a license application is evaluated.
new text end

new text begin (c) This subdivision applies to any program or service licensed under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 28.

Minnesota Statutes 2018, section 245A.05, is amended to read:

245A.05 DENIAL OF APPLICATION.

(a) The commissioner may deny a license if an applicant or controlling individual:

(1) fails to submit a substantially complete application after receiving notice from the
commissioner under section 245A.04, subdivision 1;

(2) fails to comply with applicable laws or rules;

(3) knowingly withholds relevant information from or gives false or misleading
information to the commissioner in connection with an application for a license or during
an investigation;

(4) has a disqualification that has not been set aside under section 245C.22 and no
variance has been granted;

(5) has an individual living in the household who received a background study under
section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that
has not been set aside under section 245C.22, and no variance has been granted;

(6) is associated with an individual who received a background study under section
245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to
children or vulnerable adults, and who has a disqualification that has not been set aside
under section 245C.22, and no variance has been granted; deleted text begin or
deleted text end

(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g) deleted text begin . deleted text end new text begin ;
new text end

new text begin (8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision
6;
new text end

new text begin (9) has a history of noncompliance as a license holder or controlling individual with
applicable laws or rules including but not limited to this chapter and chapters 119B and
245C; or
new text end

new text begin (10) is prohibited from holding a license according to section 245.095.
new text end

(b) An applicant whose application has been denied by the commissioner must be given
notice of the denial, which must state the reasons for the denial in plain language. Notice
must be given by certified mail or personal service. The notice must state the reasons the
application was denied and must inform the applicant of the right to a contested case hearing
under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The applicant may
appeal the denial by notifying the commissioner in writing by certified mail or personal
service. If mailed, the appeal must be postmarked and sent to the commissioner within 20
calendar days after the applicant received the notice of denial. If an appeal request is made
by personal service, it must be received by the commissioner within 20 calendar days after
the applicant received the notice of denial. Section 245A.08 applies to hearings held to
appeal the commissioner's denial of an application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 29.

new text begin [245A.055] CLOSING A LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin Inactive programs. new text end

new text begin The commissioner shall close a license if the
commissioner determines that a licensed program has not been serving any client for a
consecutive period of 12 months or longer. The license holder is not prohibited from
reapplying for a license if the license holder's license was closed under this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Reconsideration of closure. new text end

new text begin If a license is closed, the commissioner must
notify the license holder of closure by certified mail or personal service. If mailed, the notice
of closure must be mailed to the last known address of the license holder and must inform
the license holder why the license was closed and that the license holder has the right to
request reconsideration of the closure. If the license holder believes that the license was
closed in error, the license holder may ask the commissioner to reconsider the closure. The
license holder's request for reconsideration must be made in writing and must include
documentation that the licensed program has served a client in the previous 12 months. The
request for reconsideration must be postmarked and sent to the commissioner within 20
calendar days after the license holder receives the notice of closure. A timely request for
reconsideration stays imposition of the license closure until the commissioner issues a
decision on the request for reconsideration.
new text end

new text begin Subd. 3. new text end

new text begin Reconsideration final. new text end

new text begin The commissioner's disposition of a request for
reconsideration is final and not subject to appeal under chapter 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 30.

Minnesota Statutes 2018, section 245A.07, subdivision 1, is amended to read:

Subdivision 1.

Sanctions; appeals; license.

(a) In addition to making a license conditional
under section 245A.06, the commissioner may suspend or revoke the license, impose a fine,
or secure an injunction against the continuing operation of the program of a license holder
who does not comply with applicable law or rule. When applying sanctions authorized under
this section, the commissioner shall consider the nature, chronicity, or severity of the violation
of law or rule and the effect of the violation on the health, safety, or rights of persons served
by the program.

(b) If a license holder appeals the suspension or revocation of a license and the license
holder continues to operate the program pending a final order on the appeal, the commissioner
shall issue the license holder a temporary provisional license. Unless otherwise specified
by the commissioner, variances in effect on the date of the license sanction under appeal
continue under the temporary provisional license. If a license holder fails to comply with
applicable law or rule while operating under a temporary provisional license, the
commissioner may impose additional sanctions under this section and section 245A.06, and
may terminate any prior variance. If a temporary provisional license is set to expire, a new
temporary provisional license shall be issued to the license holder upon payment of any fee
required under section 245A.10. The temporary provisional license shall expire on the date
the final order is issued. If the license holder prevails on the appeal, a new nonprovisional
license shall be issued for the remainder of the current license period.

(c) If a license holder is under investigation and the license new text begin issued under this chapter new text end is
due to expire before completion of the investigation, the program shall be issued a new
license upon completion of the reapplication requirements and payment of any applicable
license fee. Upon completion of the investigation, a licensing sanction may be imposed
against the new license under this section, section 245A.06, or 245A.08.

(d) Failure to reapply or closure of a license new text begin issued under this chapter new text end by the license
holder prior to the completion of any investigation shall not preclude the commissioner
from issuing a licensing sanction under this section deleted text begin , deleted text end new text begin or new text end section 245A.06 deleted text begin , or 245A.08 deleted text end at the
conclusion of the investigation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 31.

Minnesota Statutes 2018, section 245A.07, subdivision 2, is amended to read:

Subd. 2.

Temporary immediate suspension.

(a) The commissioner shall act immediately
to temporarily suspend a license new text begin issued under this chapter new text end if:

(1) the license holder's actions or failure to comply with applicable law or rule, or the
actions of other individuals or conditions in the program, pose an imminent risk of harm to
the health, safety, or rights of persons served by the program; deleted text begin or
deleted text end

(2) while the program continues to operate pending an appeal of an order of revocation,
the commissioner identifies one or more subsequent violations of law or rule which may
adversely affect the health or safety of persons served by the program deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) the license holder is criminally charged in state or federal court with an offense that
involves fraud or theft against a program administered by the commissioner.
new text end

(b) No state funds shall be made available or be expended by any agency or department
of state, county, or municipal government for use by a license holder regulated under this
chapter while a license new text begin issued under this chapter new text end is under immediate suspension. A notice
stating the reasons for the immediate suspension and informing the license holder of the
right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to
1400.8612, must be delivered by personal service to the address shown on the application
or the last known address of the license holder. The license holder may appeal an order
immediately suspending a license. The appeal of an order immediately suspending a license
must be made in writing by certified mail deleted text begin or deleted text end new text begin , new text end personal service new text begin , or other means expressly set
forth in the commissioner's order new text end . If mailed, the appeal must be postmarked and sent to the
commissioner within five calendar days after the license holder receives notice that the
license has been immediately suspended. If a request is made by personal service, it must
be received by the commissioner within five calendar days after the license holder received
the order. A license holder and any controlling individual shall discontinue operation of the
program upon receipt of the commissioner's order to immediately suspend the license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 32.

Minnesota Statutes 2018, 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 shall be limited to the
commissioner's demonstration that reasonable cause exists to believe that the license holder's
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 shall be limited to the commissioner's demonstration by a
preponderance of 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 a final order affirming an immediate suspension, the commissioner shall make a
determination regarding whether a final licensing sanction shall be issued under subdivision
3. The license holder shall continue to be prohibited from operation of the program during
this 90-day period.

(c) When the final order under paragraph (b) affirms an 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.

new text begin (d) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof
in expedited hearings under this subdivision shall be limited to the commissioner's
demonstration by a preponderance of evidence that a criminal complaint and warrant or
summons was issued for the license holder 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 end

Sec. 33.

Minnesota Statutes 2018, 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 new text begin including but not
limited to the requirements of this chapter and chapter 245C new text end ;

(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
deleted text begin a deleted text end new text begin been disqualified and the new text end disqualification deleted text begin which has deleted text end new text begin was new text end not deleted text begin been deleted text end set aside deleted text begin under section
245C.22 deleted text end new text begin and no variance has been granted new text end ;

(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; deleted text begin or
deleted text end

(4) deleted text begin after July 1, 2012, and upon request by the commissioner, a license holder fails to
submit the information required of an applicant under section 245A.04, subdivision 1,
paragraph (f) or (g). deleted text end new text begin a license holder is excluded from any program administered by the
commissioner under section 245.095; or
new text end

new text begin (5) revocation is required under section 245A.04, subdivision 7, paragraph (d).
new text end

A license holder who has had a license new text begin issued under this chapter new text end suspended, revoked,
or has been ordered to pay a fine must be given notice of the action by certified mail or
personal service. 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 or personal service. 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. 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 deleted text begin (g) deleted text end new text begin (f) new text end
and deleted text begin (h) deleted text end new text begin (g) new text end , 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 or personal service. 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.

(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 or personal service 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 section 626.556 or the maltreatment of a vulnerable adult under section 626.557
for which the license holder is determined responsible for the maltreatment under section
626.556, subdivision 10e, paragraph (i), 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) for a program that operates out of the license holder's home and a program licensed
under Minnesota Rules, parts 9502.0300 to deleted text begin 9502.0495 deleted text end new text begin 9502.0445 new text end , the fine assessed against
the license holder shall not exceed $1,000 for each determination of maltreatment;

(iv) 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

(v) 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 (iv).

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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020.
new text end

Sec. 34.

Minnesota Statutes 2018, section 245E.01, subdivision 8, is amended to read:

Subd. 8.

Financial misconduct or misconduct.

"Financial misconduct" or "misconduct"
means an entity's or individual's acts or omissions that result in fraud and abuse or error
against the Department of Human Services. Financial misconduct includes new text begin : (1) new text end acting as a
recruiter offering conditional employment on behalf of a provider that has received funds
from the child care assistance program new text begin ; and (2) committing an act or acts that meet the
definition of offenses listed in section 609.817 new text end .

Sec. 35.

Minnesota Statutes 2018, section 245E.02, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Provider definitions. new text end

new text begin For the purposes of this section, "provider" includes:
new text end

new text begin (1) individuals or entities meeting the definition of provider in section 245E.01,
subdivision 12; and
new text end

new text begin (2) owners and controlling individuals of entities identified in clause (1).
new text end

Sec. 36.

Minnesota Statutes 2018, section 245E.02, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Administrative disqualifications. new text end

new text begin (a) The department shall pursue an
administrative disqualification in subdivision 4, paragraph (c), clause (1), if the provider
committed an intentional program violation. Intentional program violations include
intentionally making false or misleading statements; intentionally misrepresenting,
concealing, or withholding facts; and intentionally violating child care assistance program
regulations under this chapter and section 256.983. Intent may be proven by demonstrating
a pattern or conduct that violates regulations under this chapter and section 256.983.
new text end

new text begin (b) To initiate an administrative disqualification, the department must issue a notice to
the provider under section 245E.06, subdivision 2.
new text end

new text begin (c) The provider may appeal the department's administrative disqualification according
to section 256.045. The appeal must be made in writing and must be received by the
department no later than 30 days after the issuance of the notice to the provider. On appeal
the department bears the burden of proof to demonstrate by a preponderance of the evidence
that the provider committed an intentional program violation.
new text end

new text begin (d) The human services judge may combine a fair hearing and administrative
disqualification hearing into a single hearing if the factual issues arise out of the same or
related circumstances and the provider receives prior notice that the hearings will be
combined.
new text end

new text begin (e) A provider found to have committed an intentional program violation and is
administratively disqualified shall be disqualified, for a period of three years for the first
offense and permanently for any subsequent offense, from receiving any payments from
any child care program under chapter 119B. Unless a timely and proper appeal made under
this section is received by the department, the administrative determination of the department
is final and binding.
new text end

Sec. 37.

Minnesota Statutes 2018, section 256.046, subdivision 1, is amended to read:

Subdivision 1.

Hearing authority.

A local agency must initiate an administrative fraud
disqualification hearing for individuals deleted text begin , including child care providers caring for children
receiving child care assistance, deleted text end accused of wrongfully obtaining assistance or intentional
program violations, in lieu of a criminal action when it has not been pursued, in the Minnesota
family investment program and any affiliated program to include the diversionary work
program and the work participation cash benefit program, child care assistance programs,
general assistance, family general assistance program formerly codified in section 256D.05,
subdivision 1, clause (15), Minnesota supplemental aid, food stamp programs, MinnesotaCare
for adults without children, and upon federal approval, all categories of medical assistance
and remaining categories of MinnesotaCare except for children through age 18. The
Department of Human Services, in lieu of a local agency, may initiate an administrative
fraud disqualification hearing when the state agency is directly responsible for administration
or investigation of the program for which benefits were wrongfully obtained. The hearing
is subject to the requirements of deleted text begin section deleted text end new text begin sections new text end 256.045 new text begin and 256.0451 new text end and the requirements
in Code of Federal Regulations, title 7, section 273.16.

Sec. 38.

Minnesota Statutes 2018, section 256B.02, subdivision 7, is amended to read:

Subd. 7.

Vendor of medical care.

(a) "Vendor of medical care" means any person or
persons furnishing, within the scope of the vendor's respective license, any or all of the
following goods or services: medical, surgical, hospital, ambulatory surgical center services,
optical, visual, dental and nursing services; drugs and medical supplies; appliances;
laboratory, diagnostic, and therapeutic services; nursing home and convalescent care;
screening and health assessment services provided by public health nurses as defined in
section 145A.02, subdivision 18; health care services provided at the residence of the patient
if the services are performed by a public health nurse and the nurse indicates in a statement
submitted under oath that the services were actually provided; and such other deleted text begin medical deleted text end
services or supplies provided or prescribed by persons authorized by state law to give such
services and supplies. The term includes, but is not limited to, directors and officers of
corporations or members of partnerships who, either individually or jointly with another or
others, have the legal control, supervision, or responsibility of submitting claims for
reimbursement to the medical assistance program. The term only includes directors and
officers of corporations who personally receive a portion of the distributed assets upon
liquidation or dissolution, and their liability is limited to the portion of the claim that bears
the same proportion to the total claim as their share of the distributed assets bears to the
total distributed assets.

(b) "Vendor of medical care" also includes any person who is credentialed as a health
professional under standards set by the governing body of a federally recognized Indian
tribe authorized under an agreement with the federal government according to United States
Code, title 25, section 450f, to provide health services to its members, and who through a
tribal facility provides covered services to American Indian people within a contract health
service delivery area of a Minnesota reservation, as defined under Code of Federal
Regulations, title 42, section 36.22.

(c) A federally recognized Indian tribe that intends to implement standards for
credentialing health professionals must submit the standards to the commissioner of human
services, along with evidence of meeting, exceeding, or being exempt from corresponding
state standards. The commissioner shall maintain a copy of the standards and supporting
evidence, and shall use those standards to enroll tribal-approved health professionals as
medical assistance providers. For purposes of this section, "Indian" and "Indian tribe" mean
persons or entities that meet the definition in United States Code, title 25, section 450b.

Sec. 39.

Minnesota Statutes 2018, section 256B.064, subdivision 1a, is amended to read:

Subd. 1a.

Grounds for sanctions against vendors.

The commissioner may impose
sanctions against a vendor of medical care for any of the following: (1) fraud, theft, or abuse
in connection with the provision of medical care to recipients of public assistance; (2) a
pattern of presentment of false or duplicate claims or claims for services not medically
necessary; (3) a pattern of making false statements of material facts for the purpose of
obtaining greater compensation than that to which the vendor is legally entitled; (4)
suspension or termination as a Medicare vendor; (5) refusal to grant the state agency access
during regular business hours to examine all records necessary to disclose the extent of
services provided to program recipients and appropriateness of claims for payment; (6)
failure to repay an overpayment or a fine finally established under this section; (7) failure
to correct errors in the maintenance of health service or financial records for which a fine
was imposed or after issuance of a warning by the commissioner; deleted text begin and deleted text end (8) any reason for
which a vendor could be excluded from participation in the Medicare program under section
1128, 1128A, or 1866(b)(2) of the Social Security Act deleted text begin . deleted text end new text begin ; and (9) there is a preponderance of
evidence that the vendor committed an act or acts that meet the definition of offenses listed
in section 609.817.
new text end

Sec. 40.

Minnesota Statutes 2018, section 256B.064, subdivision 1b, is amended to read:

Subd. 1b.

Sanctions available.

The commissioner may impose the following sanctions
for the conduct described in subdivision 1a: suspension or withholding of payments to a
vendor and suspending or terminating participation in the program, or imposition of a fine
under subdivision 2, paragraph (f). When imposing sanctions under this section, the
commissioner shall consider the nature, chronicity, or severity of the conduct and the effect
of the conduct on the health and safety of persons served by the vendor. new text begin The commissioner
shall suspend a vendor's participation in the program for a minimum of five years if, for an
offense related to a provision of a health service under medical assistance or health care
fraud, the vendor is convicted of a crime, received a stay of adjudication, or entered a
court-ordered diversion program. new text end Regardless of imposition of sanctions, the commissioner
may make a referral to the appropriate state licensing board.

Sec. 41.

Minnesota Statutes 2018, 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 a vendor
of medical care 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 a vendor of
medical care, 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 a vendor of medical care without providing advance notice
of such withholding or reduction if either of the following occurs:

(1) the vendor 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. 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.

Allegations are considered to be credible when they have an indicia of reliability and
the state agency has reviewed all allegations, facts, and evidence carefully and acts
judiciously on a case-by-case basis.

(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 vendor of the right to submit written evidence for consideration by the
commissioner.

The withholding or reduction of payments will not continue after the commissioner
determines there is insufficient evidence of fraud by the vendor, 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). new text begin 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
by the commissioner or managed care organization, regardless of the amount charged in
the criminal complaint or the amount of criminal restitution ordered.
new text end

(d) The commissioner shall suspend or terminate a vendor'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 vendor'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 vendor's exclusion from
Medicare;

(2) identify the effective date of the suspension or termination; and

(3) inform the vendor of the need to be reinstated to Medicare before reapplying for
participation in the program.

(e) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is
to be imposed, a vendor 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 vendor. 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 vendor believes is correct;

(3) the authority in statute or rule upon which the vendor 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.

(f) The commissioner may order a vendor 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 vendor, or up to $5,000, whichever is
less. new text begin If the commissioner determines that a vendor repeatedly violated this chapter 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 a vendor 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.
new text end

(g) The vendor shall pay the fine assessed on or before the payment date specified. If
the vendor 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.

Sec. 42.

Minnesota Statutes 2018, section 256B.064, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Vendor mandates on prohibited hiring. new text end

new text begin (a) The commissioner shall maintain
and publish a list of each excluded individual and entity that was convicted of a crime related
to the provision, management, or administration of a medical assistance health service, or
suspended or terminated under subdivision 2. A vendor that receives funding from medical
assistance shall not: (1) employ an individual or entity who is on the exclusion list; or (2)
enter into or maintain a business relationship with an individual or entity that is on the
exclusion list.
new text end

new text begin (b) Before hiring or entering into a business transaction, a vendor must check the
exclusion list. The vendor must check the exclusion list on a monthly basis and document
the date and time with a.m. and p.m. designations that the exclusion list was checked and
the name and title of the person who checked the exclusion list. The vendor must: (1)
immediately terminate a current employee on the exclusion list; and (2) immediately
terminate a business relationship with an individual or entity on the exclusion list.
new text end

new text begin (c) A vendor's requirement to check the exclusion list and to terminate an employee on
the exclusion list applies to each employee, even if the named employee is not responsible
for direct patient care or direct submission of a claim to medical assistance. A vendor's
requirement to check the exclusion list and terminate a business relationship with an
individual or entity on the exclusion list applies to each business relationship, even if the
named individual or entity is not responsible for direct patient care or direct submission of
a claim to medical assistance.
new text end

new text begin (d) A vendor that employs or enters into or maintains a business relationship with an
individual or entity on the exclusion list must refund any payment related to a service
rendered by an individual or entity on the exclusion list from the date the individual is
employed or the date the individual is placed on the exclusion list, whichever is later, and
a vendor may be subject to:
new text end

new text begin (1) sanctions under subdivision 2;
new text end

new text begin (2) a civil monetary penalty of up to $25,000 for each determination by the department
that the vendor employed or contracted with an individual or entity on the exclusion list;
and
new text end

new text begin (3) other fines or penalties allowed by law.
new text end

Sec. 43.

Minnesota Statutes 2018, section 256B.064, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Notice. new text end

new text begin (a) The notice required under subdivision 2 shall be served by first class
mail at the address submitted to the department by the vendor. Service is complete upon
mailing. The commissioner shall place an affidavit of the first class mailing in the vendor's
file as an indication of the address and the date of mailing.
new text end

new text begin (b) The department shall give notice in writing to a recipient placed in the Minnesota
restricted recipient program under section 256B.0646 and Minnesota Rules, part 9505.2200.
The notice shall be sent by first class mail to the recipient's current address on file with the
department. A recipient placed in the Minnesota restricted recipient program may contest
the placement by submitting a written request for a hearing to the department within 90
days of the notice being mailed.
new text end

Sec. 44.

Minnesota Statutes 2018, section 256B.064, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Immunity; good faith reporters. new text end

new text begin (a) A person who makes a good faith report
is immune from any civil or criminal liability that might otherwise arise from reporting or
participating in the investigation. Nothing in this subdivision affects a vendor's responsibility
for an overpayment established under this subdivision.
new text end

new text begin (b) A person employed by a lead investigative agency who is conducting or supervising
an investigation or enforcing the law according to the applicable law or rule is immune from
any civil or criminal liability that might otherwise arise from the person's actions, if the
person is acting in good faith and exercising due care.
new text end

new text begin (c) For purposes of this subdivision, "person" includes a natural person or any form of
a business or legal entity.
new text end

new text begin (d) After an investigation is complete, the reporter's name must be kept confidential.
The subject of the report may compel disclosure of the reporter's name only with the consent
of the reporter or upon a written finding by a district court that the report was false and there
is evidence that the report was made in bad faith. This subdivision does not alter disclosure
responsibilities or obligations under the Rules of Criminal Procedure, except when the
identity of the reporter is relevant to a criminal prosecution the district court shall conduct
an in-camera review before determining whether to order disclosure of the reporter's identity.
new text end

Sec. 45.

new text begin [256B.0646] MINNESOTA RESTRICTED RECIPIENT PROGRAM;
PERSONAL CARE ASSISTANCE SERVICES.
new text end

new text begin (a) When a recipient's use of personal care assistance services or community first services
and supports under section 256B.85 results in abusive or fraudulent billing, the commissioner
may place a recipient in the Minnesota restricted recipient program under Minnesota Rules,
part 9505.2165. A recipient placed in the Minnesota restricted recipient program under this
section must: (1) use a designated traditional personal care assistance provider agency; and
(2) obtain a new assessment under section 256B.0911, including consultation with a registered
or public health nurse on the long-term care consultation team pursuant to section 256B.0911,
subdivision 3, paragraph (b), clause (2).
new text end

new text begin (b) A recipient must comply with additional conditions for the use of personal care
assistance services or community first services and supports if the commissioner determines
it is necessary to prevent future misuse of personal care assistance services or abusive or
fraudulent billing. Additional conditions may include but are not limited to restricting service
authorizations to a duration of no more than one month, and requiring a qualified professional
to monitor and report services on a monthly basis.
new text end

new text begin (c) A recipient placed in the Minnesota restricted recipient program under this section
may appeal the placement according to section 256.045.
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. 46.

Minnesota Statutes 2018, section 256B.0651, subdivision 17, is amended to read:

Subd. 17.

Recipient protection.

(a) Providers of home care services must provide each
recipient with a copy of the home care bill of rights under section 144A.44 at least 30 days
prior to terminating services to a recipient, if the termination results from provider sanctions
under section 256B.064, such as a payment withhold, a suspension of participation, or a
termination of participation. If a home care provider determines it is unable to continue
providing services to a recipient, the provider must notify the recipient, the recipient's
responsible party, and the commissioner 30 days prior to terminating services to the recipient
because of an action under section 256B.064, and must assist the commissioner and lead
agency in supporting the recipient in transitioning to another home care provider of the
recipient's choice.

(b) In the event of a payment withhold from a home care provider, a suspension of
participation, or a termination of participation of a home care provider under section
256B.064, the commissioner may inform the Office of Ombudsman for Long-Term Care
and the lead agencies for all recipients with active service agreements with the provider. At
the commissioner's request, the lead agencies must contact recipients to ensure that the
recipients are continuing to receive needed care, and that the recipients have been given
free choice of provider if they transfer to another home care provider. In addition, the
commissioner or the commissioner's delegate may directly notify recipients who receive
care from the provider that payments have been new text begin or may be new text end withheld or that the provider's
participation in medical assistance has been new text begin or may be new text end suspended or terminated, if the
commissioner determines that notification is necessary to protect the welfare of the recipients.
For purposes of this subdivision, "lead agencies" means counties, tribes, and managed care
organizations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 47.

Minnesota Statutes 2018, section 256B.0659, subdivision 12, is amended to read:

Subd. 12.

Documentation of personal care assistance services provided.

(a) Personal
care assistance services for a recipient must be documented daily by each personal care
assistant, on a time sheet form approved by the commissioner. All documentation may be
web-based, electronic, or paper documentation. The completed form must be submitted on
a monthly basis to the provider and kept in the recipient's health record.

(b) The activity documentation must correspond to the personal care assistance care plan
and be reviewed by the qualified professional.

(c) The personal care assistant time sheet must be on a form approved by the
commissioner documenting time the personal care assistant provides services in the home.
The following criteria must be included in the time sheet:

(1) full name of personal care assistant and individual provider number;

(2) provider name and telephone numbers;

(3) full name of recipient new text begin and either the recipient's medical assistance identification
number or date of birth new text end ;

(4) consecutive dates, including month, day, and year, and arrival and departure times
with a.m. or p.m. notations;

(5) signatures of recipient or the responsible party;

(6) personal signature of the personal care assistant;

(7) any shared care provided, if applicable;

(8) a statement that it is a federal crime to provide false information on personal care
service billings for medical assistance payments; and

(9) dates and location of recipient stays in a hospital, care facility, or incarceration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 48.

Minnesota Statutes 2018, 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 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 The vendor
of medical care shall receive notification from the commissioner at least 24 hours before
the commissioner gains access to such records. deleted text end new text begin When the commissioner is investigating a
possible overpayment of Medicaid funds, 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.
Denying the commissioner access to records is cause for the vendor's immediate suspension
of payment or termination according to section 256B.064. new text end 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. 49.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Home and community-based service billing requirements. new text end

new text begin (a) A home and
community-based service is eligible for reimbursement if:
new text end

new text begin (1) the service is provided according to a federally approved waiver plan, as authorized
under sections 256B.0913, 256B.0915, 256B.092, and 256B.49;
new text end

new text begin (2) if applicable, the service is provided on days and times during the days and hours of
operation specified on any license required under chapter 245A or 245D; and
new text end

new text begin (3) the provider complies with subdivisions 12 to 15, if applicable.
new text end

new text begin (b) The provider must maintain documentation that, upon employment and annually
thereafter, staff providing a service have attested to reviewing and understanding the
following statement: "It is a federal crime to provide materially false information on service
billings for medical assistance or services provided under a federally approved waiver plan,
as authorized under Minnesota Statutes, sections 256B.0913, 256B.0915, 256B.092, and
256B.49."
new text end

new text begin (c) The department may recover payment, according to section 256B.064 and Minnesota
Rules, parts 9505.2160 to 9505.2245, for a service that does not satisfy this subdivision.
new text end

Sec. 50.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Home and community-based service documentation requirements. new text end

new text begin (a)
Documentation may be collected and maintained electronically or in paper form by providers
and must be produced upon request of the commissioner.
new text end

new text begin (b) Documentation of a delivered service must be in English and must be legible according
to the standard of a reasonable person.
new text end

new text begin (c) If the service is reimbursed at an hourly or specified minute-based rate, each
documentation of the provision of a service, unless otherwise specified, must include:
new text end

new text begin (1) the date the documentation occurred;
new text end

new text begin (2) the day, month, and year when the service was provided;
new text end

new text begin (3) the start and stop times with a.m. and p.m. designations, except for case management
services as defined under sections 256B.0913, subdivision 7; 256B.0915, subdivision 1a;
256B.092, subdivision 1a; and 256B.49, subdivision 13;
new text end

new text begin (4) the service name or description of the service provided; and
new text end

new text begin (5) the name, signature, and title, if any, of the provider of service. If the service is
provided by multiple staff members, the provider may designate a staff member responsible
for verifying services and completing the documentation required by this paragraph.
new text end

new text begin (d) If the service is reimbursed at a daily rate or does not meet the requirements in
paragraph (c), each documentation of the provision of a service, unless otherwise specified,
must include:
new text end

new text begin (1) the date the documentation occurred;
new text end

new text begin (2) the day, month, and year when the service was provided;
new text end

new text begin (3) the service name or description of the service provided; and
new text end

new text begin (4) the name, signature, and title, if any, of the person providing the service. If the service
is provided by multiple staff, the provider may designate a staff member responsible for
verifying services and completing the documentation required by this paragraph.
new text end

Sec. 51.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Waiver transportation documentation and billing requirements. new text end

new text begin (a) A
waiver transportation service must be a waiver transportation service that: (1) is not covered
by medical transportation under the Medicaid state plan; and (2) is not included as a
component of another waiver service.
new text end

new text begin (b) In addition to the documentation requirements in subdivision 12, a waiver
transportation service provider must maintain:
new text end

new text begin (1) odometer and other records pursuant to section 256B.0625, subdivision 17b, paragraph
(b), clause (3), sufficient to distinguish an individual trip with a specific vehicle and driver
for a waiver transportation service that is billed directly by the mile. A common carrier as
defined by Minnesota Rules, part 9505.0315, subpart 1, item B, or a publicly operated transit
system provider are exempt from this clause; and
new text end

new text begin (2) documentation demonstrating that a vehicle and a driver meet the standards determined
by the Department of Human Services on vehicle and driver qualifications in section
256B.0625, subdivision 17, paragraph (c).
new text end

Sec. 52.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision
to read:

new text begin Subd. 14. new text end

new text begin Equipment and supply documentation requirements. new text end

new text begin (a) In addition to the
requirements in subdivision 12, an equipment and supply services provider must for each
documentation of the provision of a service include:
new text end

new text begin (1) the recipient's assessed need for the equipment or supply;
new text end

new text begin (2) the reason the equipment or supply is not covered by the Medicaid state plan;
new text end

new text begin (3) the type and brand name of the equipment or supply delivered to or purchased by
the recipient, including whether the equipment or supply was rented or purchased;
new text end

new text begin (4) the quantity of the equipment or supplies delivered or purchased; and
new text end

new text begin (5) the cost of equipment or supplies if the amount paid for the service depends on the
cost.
new text end

new text begin (b) A provider must maintain a copy of the shipping invoice or a delivery service tracking
log or other documentation showing the date of delivery that proves the equipment or supply
was delivered to the recipient or a receipt if the equipment or supply was purchased by the
recipient.
new text end

Sec. 53.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Adult day service documentation and billing requirements. new text end

new text begin (a) In addition
to the requirements in subdivision 12, a provider of adult day services as defined in section
245A.02, subdivision 2a, and licensed under Minnesota Rules, parts 9555.9600 to 9555.9730,
must maintain documentation of:
new text end

new text begin (1) a needs assessment and current plan of care according to section 245A.143,
subdivisions 4 to 7, or Minnesota Rules, part 9555.9700, for each recipient, if applicable;
new text end

new text begin (2) attendance records as specified under section 245A.14, subdivision 14, paragraph
(c), including the date of attendance with the day, month, and year; and the pickup and
drop-off time in hours and minutes with a.m. and p.m. designations;
new text end

new text begin (3) the monthly and quarterly program requirements in Minnesota Rules, part 9555.9710,
subparts 1, items E and H; 3; 4; and 6, if applicable;
new text end

new text begin (4) the name and qualification of each registered physical therapist, registered nurse,
and registered dietitian who provides services to the adult day services or nonresidential
program; and
new text end

new text begin (5) the location where the service was provided. If the location is an alternate location
from the usual place of service, the documentation must include the address, or a description
if the address is not available, of both the origin site and destination site; the length of time
at the alternate location with a.m. and p.m. designations; and a list of participants who went
to the alternate location.
new text end

new text begin (b) A provider cannot exceed the provider's licensed capacity. If a provider exceeds the
provider's licensed capacity, the department must recover all Minnesota health care programs
payments from the date the provider exceeded licensed capacity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2019.
new text end

Sec. 54.

new text begin [609.817] CRIMINAL PENALTIES FOR ACTS INVOLVING HUMAN
SERVICES PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Payments made relating to human services programs. new text end

new text begin A person who
intentionally offers or pays any remuneration, including any kickback, bribe, or rebate,
directly or indirectly, overtly or covertly, in cash or in kind, to a person is guilty of a crime
and may be sentenced as provided in subdivision 3 if such offer or payment is made to
induce the person:
new text end

new text begin (1) to apply for, receive, or induce another person to apply for or receive a human services
benefit, service, or grant related to a program funded in whole or in part by the Department
of Human Services or administered by the commissioner of human services, including but
not limited to a human services benefit, service, or grant funded in whole or in part by a
local social services agency, the Department of Human Services, or the United States
Department of Health and Human Services; or
new text end

new text begin (2) to apply for or to use a particular vendor providing a service administered or funded
in whole or in part by the Department of Human Services, a local social services agency,
or the United States Department of Health and Human Services.
new text end

new text begin Subd. 2. new text end

new text begin Payments received relating to human services programs. new text end

new text begin A person who
intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate,
directly or indirectly, overtly or covertly, in cash or in kind, is guilty of a crime and may
be sentenced as provided in subdivision 3 if the remuneration is solicited or received:
new text end

new text begin (1) in return for applying for or receiving a human services benefit, service, or grant
administered or funded in whole or in part by the Department of Human Services or
administered by the commissioner of human services, including but not limited to a human
services benefit, service, or grant funded in whole or in part by a local social services agency,
the Department of Human Services, or the United States Department of Health and Human
Services;
new text end

new text begin (2) in return for applying for or using a particular vendor providing a service administered
or funded in whole or in part by the Department of Human Services, a local social services
agency, or the United States Department of Health and Human Services; or
new text end

new text begin (3) in return for receiving or agreeing to receive payments in excess of fair and reasonable
market value for services or supplies provided to a company or person who is being paid
in whole or in part by the Department of Human Services, a local social services agency,
or the United States Department of Health and Human Services to provide a human services
benefit to a person.
new text end

new text begin Subd. 3. new text end

new text begin Sentence. new text end

new text begin Whoever violates subdivision 1 or 2 may be sentenced to
imprisonment for not more than five years or to payment of a fine of not more than $10,000,
or both.
new text end

new text begin Subd. 4. new text end

new text begin Defense. new text end

new text begin It is not a defense under this section for the person or company
receiving or making the payments in excess of fair and reasonable market value to claim
the person did not have knowledge of the source of the payments.
new text end

new text begin Subd. 5. new text end

new text begin Persons exempt. new text end

new text begin This section does not apply if:
new text end

new text begin (1) the employee receiving the remuneration is a bona fide employee of the company
receiving payment for providing care or services;
new text end

new text begin (2) the remuneration received by the employee is for work performed by the employee
and is paid via a standard payroll check or a direct deposit from the company payroll account
to the bank designated by the employee; and
new text end

new text begin (3) the company making the payment complies with all state and federal laws relating
to tax withholding, Social Security and Medicare withholding, and wage reporting to the
Department of Employment and Economic Development.
new text end

new text begin Subd. 6. new text end

new text begin Additional sanctions. new text end

new text begin (a) Claims or payments for any service rendered or
claimed to have been rendered by a provider or individual who violated this section in regard
to the person for whom such services were rendered or claimed to have been rendered are
noncompensable, unenforceable as a matter of law, and constitute the value of any restitution
owed to the Department of Human Services, a county, or the United States Department of
Health and Human Services.
new text end

new text begin (b) For the purposes of this section, service includes any benefit, service, or grant,
administered or funded in whole or in part by the Department of Human Services, a county,
or the United States Department of Health and Human Services.
new text end

new text begin (c) A person convicted under this section is subject to prohibitions described under
section 245.095.
new text end

APPENDIX

Repealed Minnesota Statutes: H1801-1

119B.16 FAIR HEARING PROCESS.

Subd. 2.

Informal conference.

The county agency shall offer an informal conference to applicants and recipients adversely affected by an agency action to attempt to resolve the dispute. The county agency shall offer an informal conference to providers to whom the county agency has assigned responsibility for an overpayment in an attempt to resolve the dispute. The county agency or the provider may ask the family in whose case the overpayment arose to participate in the informal conference, but the family may refuse to do so. The county agency shall advise adversely affected applicants, recipients, and providers that a request for a conference with the agency is optional and does not delay or replace the right to a fair hearing.

245E.06 ADMINISTRATIVE SANCTIONS.

Subd. 2.

Written notice of department sanction; sanction effective date; informal meeting.

(a) The department shall give notice in writing to a person of an administrative sanction that is to be imposed. The notice shall be sent by mail as defined in section 245E.01, subdivision 11.

(b) The notice shall state:

(1) the factual basis for the department's determination;

(2) the sanction the department intends to take;

(3) the dollar amount of the monetary recovery or recoupment, if any;

(4) how the dollar amount was computed;

(5) the right to dispute the department's determination and to provide evidence;

(6) the right to appeal the department's proposed sanction; and

(7) the option to meet informally with department staff, and to bring additional documentation or information, to resolve the issues.

(c) In cases of determinations resulting in denial or termination of payments, in addition to the requirements of paragraph (b), the notice must state:

(1) the length of the denial or termination;

(2) the requirements and procedures for reinstatement; and

(3) the provider's right to submit documents and written arguments against the denial or termination of payments for review by the department before the effective date of denial or termination.

(d) The submission of documents and written argument for review by the department under paragraph (b), clause (5) or (7), or paragraph (c), clause (3), does not stay the deadline for filing an appeal.

(e) Notwithstanding section 245E.03, subdivision 4, the effective date of the proposed sanction shall be 30 days after the license holder's, provider's, controlling individual's, or recipient's receipt of the notice, unless timely appealed. If a timely appeal is made, the proposed sanction shall be delayed pending the final outcome of the appeal. Implementation of a proposed sanction following the resolution of a timely appeal may be postponed if, in the opinion of the department, the delay of sanction is necessary to protect the health or safety of children in care. The department may consider the economic hardship of a person in implementing the proposed sanction, but economic hardship shall not be a determinative factor in implementing the proposed sanction.

(f) Requests for an informal meeting to attempt to resolve issues and requests for appeals must be sent or delivered to the department's Office of Inspector General, Financial Fraud and Abuse Division.

Subd. 4.

Consolidated hearings with licensing sanction.

If a financial misconduct sanction has an appeal hearing right and it is timely appealed, and a licensing sanction exists for which there is an appeal hearing right and the sanction is timely appealed, and the overpayment recovery action and licensing sanction involve the same set of facts, the overpayment recovery action and licensing sanction must be consolidated in the contested case hearing related to the licensing sanction.

Subd. 5.

Effect of department's administrative determination or sanction.

Unless a timely and proper appeal is received by the department, the department's administrative determination or sanction shall be considered a final department determination.

Repealed Minnesota Rule: H1801-1

3400.0185 TERMINATION AND ADVERSE ACTIONS; NOTICE REQUIRED.

Subp. 5.

Notice to providers of actions adverse to the provider.

The county must give a provider written notice of the following actions adverse to the provider: a denial of authorization, a termination of authorization, a reduction in the number of hours of care with that provider, and a determination that the provider has an overpayment. The notice must include the following information:

A.

a description of the adverse action;

B.

the effective date of the adverse action; and

C.

a statement that unless a family appeals the adverse action before the effective date or the provider appeals the overpayment determination, the adverse action will occur on the effective date. The notice must be mailed to the provider at least 15 calendar days before the effective date of the adverse action.