2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to human services; making changes to 1.3 licensing provisions; regulating child protection 1.4 dispositions; clarifying a mental health case 1.5 management provision; changing a provision under child 1.6 welfare targeted case management; regulating child 1.7 care, long-term care, and health care; amending 1.8 Minnesota Statutes 2002, sections 119B.011, by adding 1.9 a subdivision; 119B.03, subdivisions 3, 6a, by adding 1.10 a subdivision; 245.4881, subdivision 1; 245.814, 1.11 subdivision 1; 245A.02, subdivisions 2a, 5a, 7, 10, 1.12 14, by adding a subdivision; 245A.03, subdivision 3; 1.13 245A.04, subdivisions 5, 6, 7, by adding a 1.14 subdivision; 245A.05; 245A.06, subdivisions 2, 4; 1.15 245A.07, subdivisions 2, 2a, 3; 245A.08, subdivision 1.16 5; 245A.16, subdivision 4; 245A.22, subdivision 2; 1.17 245B.02, by adding a subdivision; 245B.05, subdivision 1.18 2; 245B.07, subdivisions 8, 12; 252.28, subdivision 1; 1.19 256.01, by adding a subdivision; 256.955, subdivisions 1.20 2, 2b; 256B.0625, by adding a subdivision; 256B.0911, 1.21 subdivision 4a; 256F.10, subdivision 5; 256J.01, 1.22 subdivision 1; 256J.08, subdivisions 73, 82a; 256J.21, 1.23 subdivision 3; 256J.415; 256J.425, subdivision 5; 1.24 260C.212, subdivision 5; Minnesota Statutes 2003 1.25 Supplement, sections 119B.011, subdivisions 8, 10, 20; 1.26 119B.03, subdivision 4; 119B.05, subdivision 1; 1.27 119B.09, subdivision 7; 119B.12, subdivision 2; 1.28 119B.13, subdivisions 1, 1a; 119B.189, subdivisions 2, 1.29 4; 119B.19, subdivision 1; 119B.24; 119B.25, 1.30 subdivision 2; 241.021, subdivision 6; 245.4874; 1.31 245A.03, subdivision 2; 245A.04, subdivision 1; 1.32 245A.08, subdivisions 1, 2a; 245A.085; 245A.11, 1.33 subdivisions 2a, 2b; 245A.16, subdivision 1; 245A.22, 1.34 subdivision 3; 245C.02, subdivision 18; 245C.03, 1.35 subdivision 1, by adding a subdivision; 245C.05, 1.36 subdivisions 1, 2, 5, 6; 245C.08, subdivisions 2, 3, 1.37 4; 245C.09, subdivision 1; 245C.13, subdivision 1; 1.38 245C.14, subdivision 1; 245C.15, subdivisions 2, 3, 4; 1.39 245C.16, subdivision 1; 245C.17, subdivisions 1, 3; 1.40 245C.18; 245C.20; 245C.21, subdivision 3, by adding a 1.41 subdivision; 245C.22, subdivisions 3, 4, 5, 6; 1.42 245C.23, subdivisions 1, 2; 245C.25; 245C.26; 245C.27, 1.43 subdivisions 1, 2; 245C.28, subdivisions 1, 2, 3; 1.44 245C.29, subdivision 2; 256.01, subdivision 2; 1.45 256.045, subdivisions 3, 3b; 256.046, subdivision 1; 1.46 256.955, subdivision 2a; 256.98, subdivision 8; 2.1 256B.0596; 256B.06, subdivision 4; 256B.0625, 2.2 subdivision 9; 256B.0915, subdivisions 3a, 3b; 2.3 256B.431, subdivision 32; 256B.69, subdivision 6b; 2.4 256D.03, subdivisions 3, 4; 256J.09, subdivision 3b; 2.5 256J.24, subdivision 5; 256J.32, subdivisions 2, 8; 2.6 256J.37, subdivision 9; 256J.425, subdivisions 1, 4, 2.7 6; 256J.46, subdivision 1; 256J.49, subdivision 4; 2.8 256J.515; 256J.521, subdivisions 1, 2; 256J.53, 2.9 subdivision 2; 256J.56; 256J.57, subdivision 1; 2.10 256J.626, subdivision 2; 256J.751, subdivision 2; 2.11 256J.95, subdivisions 1, 3, 11, 12, 19; 626.556, 2.12 subdivision 10i; 626.557, subdivision 9d; proposing 2.13 coding for new law in Minnesota Statutes, chapters 2.14 245A; 245B; repealing Minnesota Statutes 2002, 2.15 sections 119B.211; 256D.051, subdivision 17; Minnesota 2.16 Statutes 2003 Supplement, sections 245C.02, 2.17 subdivision 17; Laws 2000, chapter 489, article 1, 2.18 section 36; Laws 2003, First Special Session chapter 2.19 14, article 3, section 56; Minnesota Rules, parts 2.20 9525.1600; 9543.0040, subpart 3; 9543.1000; 9543.1010; 2.21 9543.1020; 9543.1030; 9543.1040; 9543.1050; 9543.1060. 2.22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.23 ARTICLE 1 2.24 HUMAN SERVICES 2.25 Section 1. Minnesota Statutes 2002, section 245.814, 2.26 subdivision 1, is amended to read: 2.27 Subdivision 1. [INSURANCE FOR FOSTER HOME PROVIDERS.] The 2.28 commissioner of human services shall within the appropriation 2.29 provided purchase and provide insurance to individuals licensed 2.30 as foster home providers to cover their liability for: 2.31 (1) injuries or property damage caused or sustained by 2.32 persons in foster care in their home; and 2.33 (2) actions arising out of alienation of affections 2.34 sustained by the birth parents of a foster child or birth 2.35 parents or children of a foster adult. 2.36 For purposes of this subdivision, insurance for homes 2.37 licensed to provide adult foster care shall be limited to family 2.38 adult foster care homes as defined in section 144D.01, 2.39 subdivision 7, and family adult day services licensed under 2.40 section 245A.143. 2.41 Sec. 2. Minnesota Statutes 2002, section 245A.02, 2.42 subdivision 2a, is amended to read: 2.43 Subd. 2a. [ADULT DAY CARE OR FAMILY ADULT DAY SERVICES.] 2.44 "Adult day care,"
means"adult day services," and "family adult 2.45 day services" mean a program operating less than 24 hours per 2.46 day that provides functionally impaired adults with an 3.1 individualized and coordinated set of services including health 3.2 services, social services, and nutritional services that are 3.3 directed at maintaining or improving the participants' 3.4 capabilities for self-care. Adult day care does, adult day 3.5 services, and family adult day services do not include programs 3.6 where adults gather or congregate primarily for purposes of 3.7 socialization, education, supervision, caregiver respite, 3.8 religious expression, exercise, or nutritious meals. 3.9 Sec. 3. Minnesota Statutes 2002, section 245A.02, 3.10 subdivision 5a, is amended to read: 3.11 Subd. 5a. [CONTROLLING INDIVIDUAL.] "Controlling 3.12 individual" means a public body, governmental agency, business 3.13 entity, officer, program administrator, or directorowner, or 3.14 managerial official whose responsibilities include the direction 3.15 of the management or policies of a program. Controlling3.16 individual also means an individual who, directly or indirectly,3.17 beneficially owns an interest in a corporation, partnership, or3.18 other business association that is a controlling individualFor 3.19 purposes of this subdivision, owner means an individual who has 3.20 direct or indirect ownership interest in a corporation, 3.21 partnership, or other business association issued a license 3.22 under this chapter. For purposes of this subdivision, 3.23 managerial official means those individuals who have the 3.24 decision-making authority related to the operation of the 3.25 program, and the responsibility for the ongoing management of or 3.26 direction of the policies, services, or employees of the 3.27 program. Controlling individual does not include: 3.28 (1) a bank, savings bank, trust company, savings 3.29 association, credit union, industrial loan and thrift company, 3.30 investment banking firm, or insurance company unless the entity 3.31 operates a program directly or through a subsidiary; 3.32 (2) an individual who is a state or federal official, or 3.33 state or federal employee, or a member or employee of the 3.34 governing body of a political subdivision of the state or 3.35 federal government that operates one or more programs, unless 3.36 the individual is also an officer, owner, or directormanagerial 4.1 official of the program, receives remuneration from the program, 4.2 or owns any of the beneficial interests not excluded in this 4.3 subdivision; 4.4 (3) an individual who owns less than five percent of the 4.5 outstanding common shares of a corporation: 4.6 (i) whose securities are exempt under section 80A.15, 4.7 subdivision 1, clause (f); or 4.8 (ii) whose transactions are exempt under section 80A.15, 4.9 subdivision 2, clause (b); or 4.10 (4) an individual who is a member of an organization exempt 4.11 from taxation under section 290.05, unless the individual is 4.12 also an officer, owner, or directormanagerial official of the 4.13 program or owns any of the beneficial interests not excluded in 4.14 this subdivision. This clause does not exclude from the 4.15 definition of controlling individual an organization that is 4.16 exempt from taxation. 4.17 Sec. 4. Minnesota Statutes 2002, section 245A.02, is 4.18 amended by adding a subdivision to read: 4.19 Subd. 6c. [FOSTER CARE FOR ADULTS.] "Foster care for 4.20 adults" means a program operating 24 hours a day that provides 4.21 functionally impaired adults with food, lodging, protection, 4.22 supervision, and household services in a residence, in addition 4.23 to services according to the individual service plans under 4.24 Minnesota Rules, part 9555.5105, subpart 18. 4.25 Sec. 5. Minnesota Statutes 2002, section 245A.02, 4.26 subdivision 7, is amended to read: 4.27 Subd. 7. [FUNCTIONAL IMPAIRMENT.] For the purposes of 4.28 adult day care, adult day services, family adult day services, 4.29 or adult foster care, "functional impairment" means: 4.30 (1) a condition that is characterized by substantial 4.31 difficulty in carrying out one or more of the essential major 4.32 activities of daily living, such as caring for oneself, 4.33 performing manual tasks, walking, seeing, hearing, speaking, 4.34 breathing, learning, working; or 4.35 (2) a disorder of thought or mood that significantly 4.36 impairs judgment, behavior, capacity to recognize reality, or 5.1 ability to cope with the ordinary demands of life and that 5.2 requires support to maintain independence in the community. 5.3 Sec. 6. Minnesota Statutes 2002, section 245A.02, 5.4 subdivision 10, is amended to read: 5.5 Subd. 10. [NONRESIDENTIAL PROGRAM.] "Nonresidential 5.6 program" means care, supervision, rehabilitation, training or 5.7 habilitation of a person provided outside the person's own home 5.8 and provided for fewer than 24 hours a day, including adult day 5.9 care programs; a nursing home that receives public funds to5.10 provide services for five or more persons whose primary5.11 diagnosis is mental retardation or a related condition or mental5.12 illness and who do not have a significant physical or medical5.13 problem that necessitates nursing home care; a nursing home or5.14 hospital that was licensed by the commissioner on July 1, 1987,5.15 to provide a program for persons with a physical handicap that5.16 is not the result of the normal aging process and considered to5.17 be a chronic condition;and chemical dependency or chemical 5.18 abuse programs that are located in a nursing home or hospital 5.19 and receive public funds for providing chemical abuse or 5.20 chemical dependency treatment services under chapter 254B. 5.21 Nonresidential programs include home and community-based 5.22 services and semi-independent living services for persons with 5.23 mental retardation or a related condition that are provided in 5.24 or outside of a person's own home. 5.25 Sec. 7. Minnesota Statutes 2002, section 245A.02, 5.26 subdivision 14, is amended to read: 5.27 Subd. 14. [RESIDENTIAL PROGRAM.] "Residential program" 5.28 means a program that provides 24-hour-a-day care, supervision, 5.29 food, lodging, rehabilitation, training, education, 5.30 habilitation, or treatment outside a person's own home, 5.31 including a nursing home or hospital that receives public funds,5.32 administered by the commissioner, to provide services for five5.33 or more persons whose primary diagnosis is mental retardation or5.34 a related condition or mental illness and who do not have a5.35 significant physical or medical problem that necessitates5.36 nursing home care;a program in an intermediate care facility 6.1 for four or more persons with mental retardation or a related 6.2 condition; a nursing home or hospital that was licensed by the6.3 commissioner on July 1, 1987, to provide a program for persons6.4 with a physical handicap that is not the result of the normal6.5 aging process and considered to be a chronic condition;and 6.6 chemical dependency or chemical abuse programs that are located 6.7 in a hospital or nursing home and receive public funds for 6.8 providing chemical abuse or chemical dependency treatment 6.9 services under chapter 254B. Residential programs include home 6.10 and community-based services for persons with mental retardation 6.11 or a related condition that are provided in or outside of a 6.12 person's own home. 6.13 Sec. 8. Minnesota Statutes 2003 Supplement, section 6.14 245A.03, subdivision 2, is amended to read: 6.15 Subd. 2. [EXCLUSION FROM LICENSURE.] (a) This chapter does 6.16 not apply to: 6.17 (1) residential or nonresidential programs that are 6.18 provided to a person by an individual who is related unless the 6.19 residential program is a child foster care placement made by a 6.20 local social services agency or a licensed child-placing agency, 6.21 except as provided in subdivision 2a; 6.22 (2) nonresidential programs that are provided by an 6.23 unrelated individual to persons from a single related family; 6.24 (3) residential or nonresidential programs that are 6.25 provided to adults who do not abuse chemicals or who do not have 6.26 a chemical dependency, a mental illness, mental retardation or a 6.27 related condition, a functional impairment, or a physical 6.28 handicap; 6.29 (4) sheltered workshops or work activity programs that are 6.30 certified by the commissioner of economic security; 6.31 (5) programs operated by a public school for children 6.32 enrolled in kindergarten to the 12th grade and prekindergarten6.33 special education in a school as defined in section 120A.22,6.34 subdivision 4, and programs serving children in combined special6.35 education and regular prekindergarten programs that are operated6.36 or assisted by the commissioner of education33 months or older; 7.1 (6) nonresidential programs primarily for children that 7.2 provide care or supervision , without charge for ten or fewer7.3 days a year, andfor periods of less than three hours a day 7.4 while the child's parent or legal guardian is in the same 7.5 building as the nonresidential program or present within another 7.6 building that is directly contiguous to the building in which 7.7 the nonresidential program is located; 7.8 (7) nursing homes or hospitals licensed by the commissioner 7.9 of health except as specified under section 245A.02; 7.10 (8) board and lodge facilities licensed by the commissioner 7.11 of health that provide services for five or more persons whose 7.12 primary diagnosis is mental illness who have refused an7.13 appropriate residential program offered by a county agencythat 7.14 do not provide intensive residential treatment; 7.15 (9) homes providing programs for persons placed there by a 7.16 licensed agency for legal adoption, unless the adoption is not 7.17 completed within two years; 7.18 (10) programs licensed by the commissioner of corrections; 7.19 (11) recreation programs for children or adults that 7.20 operate for fewer than 40 calendar days in a calendar year or7.21 programs operatedare operated or approved by a park and 7.22 recreation board of a city of the first classwhose primary 7.23 purpose is to provide social and recreational activities to7.24 school age children, provided the program is approved by the7.25 park and recreation board; 7.26 (12) programs operated by a school as defined in section 7.27 120A.22, subdivision 4, whose primary purpose is to provide 7.28 child care to school-age children , provided the program is7.29 approved by the district's school board; 7.30 (13) Head Start nonresidential programs which operate for 7.31 less than 31 days in each calendar year; 7.32 (14) noncertified boarding care homes unless they provide 7.33 services for five or more persons whose primary diagnosis is 7.34 mental illness or mental retardation; 7.35 (15) nonresidential programs for nonhandicappedchildren 7.36 provided for a cumulative total of less than 30 days in any 8.1 12-month period; 8.2 (16) residential programs for persons with mental illness, 8.3 that are located in hospitals , until the commissioner adopts8.4 appropriate rules; 8.5 (17) the religious instruction of school-age children; 8.6 Sabbath or Sunday schools; or the congregate care of children by 8.7 a church, congregation, or religious society during the period 8.8 used by the church, congregation, or religious society for its 8.9 regular worship; 8.10 (18) camps licensed by the commissioner of health under 8.11 Minnesota Rules, chapter 4630; 8.12 (19) mental health outpatient services for adults with 8.13 mental illness or children with emotional disturbance; 8.14 (20) residential programs serving school-age children whose 8.15 sole purpose is cultural or educational exchange, until the 8.16 commissioner adopts appropriate rules; 8.17 (21) unrelated individuals who provide out-of-home respite 8.18 care services to persons with mental retardation or related 8.19 conditions from a single related family for no more than 90 days 8.20 in a 12-month period and the respite care services are for the 8.21 temporary relief of the person's family or legal representative; 8.22 (22) respite care services provided as a home and 8.23 community-based service to a person with mental retardation or a 8.24 related condition, in the person's primary residence; 8.25 (23) community support services programs as defined in 8.26 section 245.462, subdivision 6, and family community support 8.27 services as defined in section 245.4871, subdivision 17; 8.28 (24) the placement of a child by a birth parent or legal 8.29 guardian in a preadoptive home for purposes of adoption as 8.30 authorized by section 259.47; 8.31 (25) settings registered under chapter 144D which provide 8.32 home care services licensed by the commissioner of health to 8.33 fewer than seven adults; or 8.34 (26) consumer-directed community support service funded 8.35 under the Medicaid waiver for persons with mental retardation 8.36 and related conditions when the individual who provided the 9.1 service is: 9.2 (i) the same individual who is the direct payee of these 9.3 specific waiver funds or paid by a fiscal agent, fiscal 9.4 intermediary, or employer of record; and 9.5 (ii) not otherwise under the control of a residential or 9.6 nonresidential program that is required to be licensed under 9.7 this chapter when providing the service. 9.8 (b) For purposes of paragraph (a), clause (6), a building 9.9 is directly contiguous to a building in which a nonresidential 9.10 program is located if it shares a common wall with the building 9.11 in which the nonresidential program is located or is attached to 9.12 that building by skyway, tunnel, atrium, or common roof. 9.13 (c) Nothing in this chapter shall be construed to require 9.14 licensure for any services provided and funded according to an 9.15 approved federal waiver plan where licensure is specifically 9.16 identified as not being a condition for the services and funding. 9.17 Sec. 9. Minnesota Statutes 2002, section 245A.03, 9.18 subdivision 3, is amended to read: 9.19 Subd. 3. [UNLICENSED PROGRAMS.] (a) It is a misdemeanor 9.20 for an individual, corporation, partnership, voluntary 9.21 association, other organization, or a controlling individual to 9.22 provide a residential or nonresidential program without a 9.23 license and in willful disregard of this chapter unless the 9.24 program is excluded from licensure under subdivision 2. 9.25 (b) If, after receiving notice that a license is required,9.26 the individual, corporation, partnership, voluntary association,9.27 other organization, or controlling individual has failed to9.28 apply for a license,The commissioner may ask the appropriate 9.29 county attorney or the attorney general to begin proceedings to 9.30 secure a court order against the continued operation of the 9.31 program, if an individual, corporation, partnership, voluntary 9.32 association, other organization, or controlling individual has: 9.33 (1) failed to apply for a license after receiving notice 9.34 that a license is required; 9.35 (2) continued to operate without a license after the 9.36 license has been revoked or suspended under section 245A.07, and 10.1 the commissioner has issued a final order affirming the 10.2 revocation or suspension, or the license holder did not timely 10.3 appeal the sanction; or 10.4 (3) continued to operate without a license after the 10.5 license has been temporarily suspended under section 245A.07. 10.6 The county attorney and the attorney general have a duty to 10.7 cooperate with the commissioner. 10.8 Sec. 10. Minnesota Statutes 2003 Supplement, section 10.9 245A.04, subdivision 1, is amended to read: 10.10 Subdivision 1. [APPLICATION FOR LICENSURE.] (a) An 10.11 individual, corporation, partnership, voluntary association, 10.12 other organization or controlling individual that is subject to 10.13 licensure under section 245A.03 must apply for a license. The 10.14 application must be made on the forms and in the manner 10.15 prescribed by the commissioner. The commissioner shall provide 10.16 the applicant with instruction in completing the application and 10.17 provide information about the rules and requirements of other 10.18 state agencies that affect the applicant. An applicant seeking 10.19 licensure in Minnesota with headquarters outside of Minnesota 10.20 must have a program office located within the state. 10.21 The commissioner shall act on the application within 90 10.22 working days after a complete application and any required 10.23 reports have been received from other state agencies or 10.24 departments, counties, municipalities, or other political 10.25 subdivisions. The commissioner shall not consider an 10.26 application to be complete until the commissioner receives all 10.27 of the information required under section 245C.05. 10.28 (b) An application for licensure must specify one or more 10.29 controlling individuals as an agent who is responsible for 10.30 dealing with the commissioner of human services on all matters 10.31 provided for in this chapter and on whom service of all notices 10.32 and orders must be made. The agent must be authorized to accept 10.33 service on behalf of all of the controlling individuals of the 10.34 program. Service on the agent is service on all of the 10.35 controlling individuals of the program. It is not a defense to 10.36 any action arising under this chapter that service was not made 11.1 on each controlling individual of the program. The designation 11.2 of one or more controlling individuals as agents under this 11.3 paragraph does not affect the legal responsibility of any other 11.4 controlling individual under this chapter. 11.5 (c) An applicant or license holder must have a policy that 11.6 prohibits license holders, employees, subcontractors, and 11.7 volunteers, when directly responsible for persons served by the 11.8 program, from abusing prescription medication or being in any 11.9 manner under the influence of a chemical that impairs the 11.10 individual's ability to provide services or care. The license 11.11 holder must train employees, subcontractors, and volunteers 11.12 about the program's drug and alcohol policy. 11.13 (d) An applicant and license holder must have a program 11.14 grievance procedure that permits persons served by the program 11.15 and their authorized representatives to bring a grievance to the 11.16 highest level of authority in the program. 11.17 Sec. 11. Minnesota Statutes 2002, section 245A.04, 11.18 subdivision 5, is amended to read: 11.19 Subd. 5. [COMMISSIONER'S RIGHT OF ACCESS.] When the 11.20 commissioner is exercising the powers conferred by this 11.21 chapter and section 245.69, the commissioner must be given 11.22 access to the physical plant and grounds where the program is 11.23 provided, documents, persons served by the program, and staff 11.24 whenever the program is in operation and the information is 11.25 relevant to inspections or investigations conducted by the 11.26 commissioner. The commissioner must be given access without 11.27 prior notice and as often as the commissioner considers 11.28 necessary if the commissioner is conducting an investigation of 11.29 allegations of maltreatment or other violation of applicable 11.30 laws or rules. In conducting inspections, the commissioner may 11.31 request and shall receive assistance from other state, county, 11.32 and municipal governmental agencies and departments. The 11.33 applicant or license holder shall allow the commissioner to 11.34 photocopy, photograph, and make audio and video tape recordings 11.35 during the inspection of the program at the commissioner's 11.36 expense. The commissioner shall obtain a court order or the 12.1 consent of the subject of the records or the parents or legal 12.2 guardian of the subject before photocopying hospital medical 12.3 records. 12.4 Persons served by the program have the right to refuse to 12.5 consent to be interviewed, photographed, or audio or videotaped. 12.6 Failure or refusal of an applicant or license holder to fully 12.7 comply with this subdivision is reasonable cause for the 12.8 commissioner to deny the application or immediately suspend or 12.9 revoke the license. 12.10 Sec. 12. Minnesota Statutes 2002, section 245A.04, 12.11 subdivision 6, is amended to read: 12.12 Subd. 6. [COMMISSIONER'S EVALUATION.] Before issuing, 12.13 denying, suspending, revoking, or making conditional a license, 12.14 the commissioner shall evaluate information gathered under this 12.15 section. The commissioner's evaluation shall consider facts, 12.16 conditions, or circumstances concerning the program's operation, 12.17 the well-being of persons served by the program, available 12.18 consumer evaluations of the program, and information about the 12.19 qualifications of the personnel employed by the applicant or 12.20 license holder. 12.21 The commissioner shall evaluate the results of the study 12.22 required in subdivision 3 and determine whether a risk of harm 12.23 to the persons served by the program exists. In conducting this 12.24 evaluation, the commissioner shall apply the disqualification 12.25 standards set forth in rules adopted under thischapter 245C. 12.26 Sec. 13. Minnesota Statutes 2002, section 245A.04, 12.27 subdivision 7, is amended to read: 12.28 Subd. 7. [ISSUANCE OF A LICENSE; EXTENSION OF A LICENSE.] 12.29 (a) If the commissioner determines that the program complies 12.30 with all applicable rules and laws, the commissioner shall issue 12.31 a license. At minimum, the license shall state: 12.32 (1) the name of the license holder; 12.33 (2) the address of the program; 12.34 (3) the effective date and expiration date of the license; 12.35 (4) the type of license; 12.36 (5) the maximum number and ages of persons that may receive 13.1 services from the program; and 13.2 (6) any special conditions of licensure. 13.3 (b) The commissioner may issue an initial license for a 13.4 period not to exceed two years if: 13.5 (1) the commissioner is unable to conduct the evaluation or 13.6 observation required by subdivision 4, paragraph (a), clauses (3) 13.7 and (4), because the program is not yet operational; 13.8 (2) certain records and documents are not available because 13.9 persons are not yet receiving services from the program; and 13.10 (3) the applicant complies with applicable laws and rules 13.11 in all other respects. 13.12 (c) A decision by the commissioner to issue a license does 13.13 not guarantee that any person or persons will be placed or cared 13.14 for in the licensed program. A license shall not be 13.15 transferable to another individual, corporation, partnership, 13.16 voluntary association, other organization, or controlling or to 13.17 another location. 13.18 (d) A license holder must notify the commissioner and 13.19 obtain the commissioner's approval before making any changes 13.20 that would alter the license information listed under paragraph 13.21 (a). 13.22 (e) The commissioner shall not issue a license if the 13.23 applicant, license holder, or controlling individual has: 13.24 (1) been disqualified and the disqualification was not set 13.25 aside; 13.26 (2) has been denied a license within the past two years; or 13.27 (3) had a license revoked within the past five years. 13.28 For purposes of reimbursement for meals only, under the 13.29 Child and Adult Care Food Program, Code of Federal Regulations, 13.30 title 7, subtitle B, chapter II, subchapter A, part 226, 13.31 relocation within the same county by a licensed family day care 13.32 provider, shall be considered an extension of the license for a 13.33 period of no more than 30 calendar days or until the new license 13.34 is issued, whichever occurs first, provided the county agency 13.35 has determined the family day care provider meets licensure 13.36 requirements at the new location. 14.1 Unless otherwise specified by statute, all licenses expire 14.2 at 12:01 a.m. on the day after the expiration date stated on the 14.3 license. A license holder must apply for and be granted a new 14.4 license to operate the program or the program must not be 14.5 operated after the expiration date. 14.6 Sec. 14. Minnesota Statutes 2002, section 245A.04, is 14.7 amended by adding a subdivision to read: 14.8 Subd. 13. [RESIDENTIAL PROGRAMS HANDLING RESIDENT FUNDS 14.9 AND PROPERTY; ADDITIONAL REQUIREMENTS.] (a) A license holder 14.10 must ensure that residents retain the use and availability of 14.11 personal funds or property unless restrictions are justified in 14.12 the resident's individual plan. 14.13 (b) The license holder must ensure separation of resident 14.14 funds from funds of the license holder, the residential program, 14.15 or program staff. 14.16 (c) Whenever the license holder assists a resident with the 14.17 safekeeping of funds or other property, the license holder must: 14.18 (1) immediately document receipt and disbursement of the 14.19 resident's funds or other property at the time of receipt or 14.20 disbursement, including the signature of the resident, 14.21 conservator, or payee; 14.22 (2) provide a statement, at least quarterly, itemizing 14.23 receipts and disbursements of resident funds or other property; 14.24 and 14.25 (3) return to the resident upon the resident's request, 14.26 funds and property in the license holder's possession subject to 14.27 restrictions in the resident's treatment plan, as soon as 14.28 possible, but no later than three working days after the date of 14.29 request. 14.30 (d) License holders and program staff must not: 14.31 (1) borrow money from a resident; 14.32 (2) purchase personal items from a resident; 14.33 (3) sell merchandise or personal services to a resident; 14.34 (4) require a resident to purchase items for which the 14.35 license holder is eligible for reimbursement; or 14.36 (5) use resident funds to purchase items for which the 15.1 facility is already receiving public or private payments. 15.2 Sec. 15. Minnesota Statutes 2002, section 245A.05, is 15.3 amended to read: 15.4 245A.05 [DENIAL OF APPLICATION.] 15.5 The commissioner may deny a license if an applicant fails 15.6 to comply with applicable laws or rules, or knowingly withholds 15.7 relevant information from or gives false or misleading 15.8 information to the commissioner in connection with an 15.9 application for a license or during an investigation. An 15.10 applicant whose application has been denied by the commissioner 15.11 must be given notice of the denial. Notice must be given by 15.12 certified mail or personal service. The notice must state the 15.13 reasons the application was denied and must inform the applicant 15.14 of the right to a contested case hearing under chapter 14 and 15.15 Minnesota Rules, parts 1400.85101400.8505 to 1400.8612 and15.16 successor rules. The applicant may appeal the denial by 15.17 notifying the commissioner in writing by certified mail or 15.18 personal service within 20 calendar days after receiving notice 15.19 that the application was denied. Section 245A.08 applies to 15.20 hearings held to appeal the commissioner's denial of an 15.21 application. 15.22 Sec. 16. Minnesota Statutes 2002, section 245A.06, 15.23 subdivision 2, is amended to read: 15.24 Subd. 2. [RECONSIDERATION OF CORRECTION ORDERS.] If the 15.25 applicant or license holder believes that the contents of the 15.26 commissioner's correction order are in error, the applicant or 15.27 license holder may ask the Department of Human Services to 15.28 reconsider the parts of the correction order that are alleged to 15.29 be in error. The request for reconsideration must be made in 15.30 writing and received bymust be postmarked and sent to the 15.31 commissioner within 20 calendar days after receipt of the 15.32 correction order by the applicant or license holder, and: 15.33 (1) specify the parts of the correction order that are 15.34 alleged to be in error; 15.35 (2) explain why they are in error; and 15.36 (3) include documentation to support the allegation of 16.1 error. 16.2 A request for reconsideration does not stay any provisions 16.3 or requirements of the correction order. The commissioner's 16.4 disposition of a request for reconsideration is final and not 16.5 subject to appeal under chapter 14. 16.6 Sec. 17. Minnesota Statutes 2002, section 245A.06, 16.7 subdivision 4, is amended to read: 16.8 Subd. 4. [NOTICE OF CONDITIONAL LICENSE; RECONSIDERATION 16.9 OF CONDITIONAL LICENSE.] If a license is made conditional, the 16.10 license holder must be notified of the order by certified 16.11 mail or personal service. If mailed, the notice must be mailed 16.12 to the address shown on the application or the last known 16.13 address of the license holder. The notice must state the 16.14 reasons the conditional license was ordered and must inform the 16.15 license holder of the right to request reconsideration of the 16.16 conditional license by the commissioner. The license holder may 16.17 request reconsideration of the order of conditional license by 16.18 notifying the commissioner by certified mail or personal 16.19 service. The request must be made in writing and. If sent by 16.20 certified mail, the request must be received bypostmarked and 16.21 sent to the commissioner within ten calendar days after the 16.22 license holder received the order. If a request is made by 16.23 personal service, it must be received by the commissioner within 16.24 ten calendar days after the license holder received the order. 16.25 The license holder may submit with the request for 16.26 reconsideration written argument or evidence in support of the 16.27 request for reconsideration. A timely request for 16.28 reconsideration shall stay imposition of the terms of the 16.29 conditional license until the commissioner issues a decision on 16.30 the request for reconsideration. If the commissioner issues a 16.31 dual order of conditional license under this section and an 16.32 order to pay a fine under section 245A.07, subdivision 3, the 16.33 license holder has a right to a contested case hearing under 16.34 chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. 16.35 The scope of the contested case hearing shall include the fine 16.36 and the conditional license. In this case, a reconsideration of 17.1 the conditional license will not be conducted under this section. 17.2 The commissioner's disposition of a request for 17.3 reconsideration is final and not subject to appeal under chapter 17.4 14. 17.5 Sec. 18. Minnesota Statutes 2002, section 245A.07, 17.6 subdivision 2, is amended to read: 17.7 Subd. 2. [TEMPORARY IMMEDIATE SUSPENSION.] If the license 17.8 holder's actions or failure to comply with applicable law or 17.9 rule poses, or the actions of other individuals or conditions in 17.10 the program pose an imminent risk of harm to the health, safety, 17.11 or rights of persons served by the program, the commissioner 17.12 shall act immediately to temporarily suspend the license. No 17.13 state funds shall be made available or be expended by any agency 17.14 or department of state, county, or municipal government for use 17.15 by a license holder regulated under this chapter while a license 17.16 is under immediate suspension. A notice stating the reasons for 17.17 the immediate suspension and informing the license holder of the 17.18 right to an expedited hearing under chapter 14 and Minnesota 17.19 Rules, parts 1400.85101400.8505 to 1400.8612 and successor17.20 rules, must be delivered by personal service to the address 17.21 shown on the application or the last known address of the 17.22 license holder. The license holder may appeal an order 17.23 immediately suspending a license. The appeal of an order 17.24 immediately suspending a license must be made in writing by 17.25 certified mail andor personal service. If mailed, the appeal 17.26 must be postmarked and sent to the commissioner within five 17.27 calendar days after the license holder receives notice that the 17.28 license has been immediately suspended. If a request is made by 17.29 personal service, it must be received by the commissioner within 17.30 five calendar days after the license holder received the order. 17.31 A license holder and any controlling individual shall 17.32 discontinue operation of the program upon receipt of the 17.33 commissioner's order to immediately suspend the license. 17.34 Sec. 19. Minnesota Statutes 2002, section 245A.07, 17.35 subdivision 2a, is amended to read: 17.36 Subd. 2a. [IMMEDIATE SUSPENSION EXPEDITED HEARING.] (a) 18.1 Within five working days of receipt of the license holder's 18.2 timely appeal, the commissioner shall request assignment of an 18.3 administrative law judge. The request must include a proposed 18.4 date, time, and place of a hearing. A hearing must be conducted 18.5 by an administrative law judge within 30 calendar days of the 18.6 request for assignment, unless an extension is requested by 18.7 either party and granted by the administrative law judge for 18.8 good cause. The commissioner shall issue a notice of hearing by 18.9 certified mail or personal service at least ten working days 18.10 before the hearing. The scope of the hearing shall be limited 18.11 solely to the issue of whether the temporary immediate 18.12 suspension should remain in effect pending the commissioner's 18.13 final order under section 245A.08, regarding a licensing 18.14 sanction issued under subdivision 3 following the immediate 18.15 suspension. The burden of proof in expedited hearings under 18.16 this subdivision shall be limited to the commissioner's 18.17 demonstration that reasonable cause exists to believe that the 18.18 license holder's actions or failure to comply with applicable 18.19 law or rule poses an imminent risk of harm to the health, 18.20 safety, or rights of persons served by the program. 18.21 (b) The administrative law judge shall issue findings of 18.22 fact, conclusions, and a recommendation within ten working days 18.23 from the date of hearing. The parties shall have ten calendar 18.24 days to submit exceptions to the administrative law judge's 18.25 report. The record shall close at the end of the ten-day period 18.26 for submission of exceptions. The commissioner's final order 18.27 shall be issued within ten working days from receipt of the18.28 recommendation of the administrative law judgethe close of the 18.29 record. Within 90 calendar days after a final order affirming 18.30 an immediate suspension, the commissioner shall make a 18.31 determination regarding whether a final licensing sanction shall 18.32 be issued under subdivision 3. The license holder shall 18.33 continue to be prohibited from operation of the program during 18.34 this 90-day period. 18.35 (c) When the final order under paragraph (b) affirms an 18.36 immediate suspension, and a final licensing sanction is issued 19.1 under subdivision 3 and the license holder appeals that 19.2 sanction, the license holder continues to be prohibited from 19.3 operation of the program pending a final commissioner's order 19.4 under section 245A.08, subdivision 5, regarding the final 19.5 licensing sanction. 19.6 Sec. 20. Minnesota Statutes 2002, section 245A.07, 19.7 subdivision 3, is amended to read: 19.8 Subd. 3. [LICENSE SUSPENSION, REVOCATION, OR FINE.] The 19.9 commissioner may suspend or revoke a license, or impose a fine 19.10 if a license holder fails to comply fully with applicable laws 19.11 or rules, has a disqualification which has not been set aside 19.12 under section 245C.22, or knowingly withholds relevant 19.13 information from or gives false or misleading information to the 19.14 commissioner in connection with an application for a license, in 19.15 connection with the background study status of an individual, or 19.16 during an investigation. A license holder who has had a license 19.17 suspended, revoked, or has been ordered to pay a fine must be 19.18 given notice of the action by certified mail or personal 19.19 service. If mailed, the notice must be mailed to the address 19.20 shown on the application or the last known address of the 19.21 license holder. The notice must state the reasons the license 19.22 was suspended, revoked, or a fine was ordered. 19.23 (a) If the license was suspended or revoked, the notice 19.24 must inform the license holder of the right to a contested case 19.25 hearing under chapter 14 and Minnesota Rules, parts 1400.851019.26 1400.8505 to 1400.8612 and successor rules. The license holder 19.27 may appeal an order suspending or revoking a license. The 19.28 appeal of an order suspending or revoking a license must be made 19.29 in writing by certified mail andor personal service. If 19.30 mailed, the appeal must be postmarked and sent to the 19.31 commissioner within ten calendar days after the license holder 19.32 receives notice that the license has been suspended or revoked. 19.33 If a request is made by personal service, it must be received by 19.34 the commissioner within ten calendar days after the license 19.35 holder received the order. Except as provided in subdivision 19.36 2a, paragraph (c), a timely appeal of an order suspending or 20.1 revoking a license shall stay the suspension or revocation until 20.2 the commissioner issues a final order. 20.3 (b)(1) If the license holder was ordered to pay a fine, the 20.4 notice must inform the license holder of the responsibility for 20.5 payment of fines and the right to a contested case hearing under 20.6 chapter 14 and Minnesota Rules, parts 1400.85101400.8505 to 20.7 1400.8612 and successor rules. The appeal of an order to pay a 20.8 fine must be made in writing by certified mail andor personal 20.9 service. If mailed, the appeal must be postmarked and sent to 20.10 the commissioner within ten calendar days after the license 20.11 holder receives notice that the fine has been ordered. If a 20.12 request is made by personal service, it must be received by the 20.13 commissioner within ten calendar days after the license holder 20.14 received the order. 20.15 (2) The license holder shall pay the fines assessed on or 20.16 before the payment date specified. If the license holder fails 20.17 to fully comply with the order, the commissioner may issue a 20.18 second fine or suspend the license until the license holder 20.19 complies. If the license holder receives state funds, the 20.20 state, county, or municipal agencies or departments responsible 20.21 for administering the funds shall withhold payments and recover 20.22 any payments made while the license is suspended for failure to 20.23 pay a fine. A timely appeal shall stay payment of the fine 20.24 until the commissioner issues a final order. 20.25 (3) A license holder shall promptly notify the commissioner 20.26 of human services, in writing, when a violation specified in the 20.27 order to forfeit a fine is corrected. If upon reinspection the 20.28 commissioner determines that a violation has not been corrected 20.29 as indicated by the order to forfeit a fine, the commissioner 20.30 may issue a second fine. The commissioner shall notify the 20.31 license holder by certified mail or personal service that a 20.32 second fine has been assessed. The license holder may appeal 20.33 the second fine as provided under this subdivision. 20.34 (4) Fines shall be assessed as follows: the license holder 20.35 shall forfeit $1,000 for each determination of maltreatment of a 20.36 child under section 626.556 or the maltreatment of a vulnerable 21.1 adult under section 626.557; the license holder shall forfeit 21.2 $200 for each occurrence of a violation of law or rule governing 21.3 matters of health, safety, or supervision, including but not 21.4 limited to the provision of adequate staff-to-child or adult 21.5 ratios, and failure to submit a background study; and the 21.6 license holder shall forfeit $100 for each occurrence of a 21.7 violation of law or rule other than those subject to a $1,000 or 21.8 $200 fine above. For purposes of this section, "occurrence" 21.9 means each violation identified in the commissioner's fine order. 21.10 (5) When a fine has been assessed, the license holder may 21.11 not avoid payment by closing, selling, or otherwise transferring 21.12 the licensed program to a third party. In such an event, the 21.13 license holder will be personally liable for payment. In the 21.14 case of a corporation, each controlling individual is personally 21.15 and jointly liable for payment. 21.16 Sec. 21. Minnesota Statutes 2003 Supplement, section 21.17 245A.08, subdivision 1, is amended to read: 21.18 Subdivision 1. [RECEIPT OF APPEAL; CONDUCT OF HEARING.] 21.19 Upon receiving a timely appeal or petition pursuant to section 21.20 245A.05, 245A.07, subdivision 3, or 245C.28, the commissioner 21.21 shall issue a notice of and order for hearing to the appellant 21.22 under chapter 14 and Minnesota Rules, parts 1400.85101400.8505 21.23 to 1400.8612 and successor rules. 21.24 Sec. 22. Minnesota Statutes 2003 Supplement, section 21.25 245A.08, subdivision 2a, is amended to read: 21.26 Subd. 2a. [CONSOLIDATED CONTESTED CASE HEARINGS FOR 21.27 SANCTIONS BASED ON MALTREATMENT DETERMINATIONS AND 21.28 DISQUALIFICATIONS.] (a) When a denial of a license under section 21.29 245A.05 or a licensing sanction under section 245A.07, 21.30 subdivision 3, is based on a disqualification for which 21.31 reconsideration was requested and which was not set aside or was21.32 not rescindedunder sections 245C.21 to 245C.27section 245C.22, 21.33 the scope of the contested case hearing shall include the 21.34 disqualification and the licensing sanction or denial of a 21.35 license. When the licensing sanction or denial of a license is 21.36 based on a determination of maltreatment under section 626.556 22.1 or 626.557, or a disqualification for serious or recurring 22.2 maltreatment which was not set aside or was not rescinded, the 22.3 scope of the contested case hearing shall include the 22.4 maltreatment determination, disqualification, and the licensing 22.5 sanction or denial of a license. In such cases, a fair hearing 22.6 under section 256.045 shall not be conducted as provided for in 22.7 sections 626.556, subdivision 10i, and 626.557, subdivision 9d. 22.8 (b) In consolidated contested case hearings regarding 22.9 sanctions issued in family child care, child foster care, and 22.10 adult foster care, the county attorney shall defend the 22.11 commissioner's orders in accordance with section 245A.16, 22.12 subdivision 4. 22.13 (c) The commissioner's final order under subdivision 5 is 22.14 the final agency action on the issue of maltreatment and 22.15 disqualification, including for purposes of subsequent 22.16 background studies under chapter 245C and is the only 22.17 administrative appeal of the final agency determination, 22.18 specifically, including a challenge to the accuracy and 22.19 completeness of data under section 13.04. 22.20 (d) When consolidated hearings under this subdivision 22.21 involve a licensing sanction based on a previous maltreatment 22.22 determination for which the commissioner has issued a final 22.23 order in an appeal of that determination under section 256.045, 22.24 or the individual failed to exercise the right to appeal the 22.25 previous maltreatment determination under section 626.556, 22.26 subdivision 10i, or 626.557, subdivision 9d, the commissioner's 22.27 order is conclusive on the issue of maltreatment. In such 22.28 cases, the scope of the administrative law judge's review shall 22.29 be limited to the disqualification and the licensing sanction or 22.30 denial of a license. In the case of a denial of a license or a 22.31 licensing sanction issued to a facility based on a maltreatment 22.32 determination regarding an individual who is not the license 22.33 holder or a household member, the scope of the administrative 22.34 law judge's review includes the maltreatment determination. 22.35 (e) If a maltreatment determination or disqualification, 22.36 which was not set aside or was not rescindedunder sections23.1 245C.21 to 245C.27section 245C.22, is the basis for a denial of 23.2 a license under section 245A.05 or a licensing sanction under 23.3 section 245A.07, and the disqualified subject is an individual 23.4 other than the license holder and upon whom a background study 23.5 must be conducted under section 245C.03, the hearings of all 23.6 parties may be consolidated into a single contested case hearing 23.7 upon consent of all parties and the administrative law judge. 23.8 Sec. 23. Minnesota Statutes 2002, section 245A.08, 23.9 subdivision 5, is amended to read: 23.10 Subd. 5. [NOTICE OF THE COMMISSIONER'S FINAL ORDER.] After 23.11 considering the findings of fact, conclusions, and 23.12 recommendations of the administrative law judge, the 23.13 commissioner shall issue a final order. The commissioner shall 23.14 consider, but shall not be bound by, the recommendations of the 23.15 administrative law judge. The appellant must be notified of the 23.16 commissioner's final order as required by chapter 14 and 23.17 Minnesota Rules, parts 1400.85101400.8505 to 1400.8612 and23.18 successor rules. The notice must also contain information about 23.19 the appellant's rights under chapter 14 and Minnesota Rules, 23.20 parts 1400.85101400.8505 to 1400.8612 and successor rules. The 23.21 institution of proceedings for judicial review of the 23.22 commissioner's final order shall not stay the enforcement of the 23.23 final order except as provided in section 14.65. A license 23.24 holder and each controlling individual of a license holder whose 23.25 license has been revoked because of noncompliance with 23.26 applicable law or rule must not be granted a license for five 23.27 years following the revocation. An applicant whose application 23.28 was denied must not be granted a license for two years following 23.29 a denial, unless the applicant's subsequent application contains 23.30 new information which constitutes a substantial change in the 23.31 conditions that caused the previous denial. 23.32 Sec. 24. Minnesota Statutes 2003 Supplement, section 23.33 245A.085, is amended to read: 23.34 245A.085 [CONSOLIDATION OF HEARINGS; RECONSIDERATION.] 23.35 Hearings authorized under this chapter, chapter 245C, and 23.36 sections 256.045, 626.556, and 626.557, shall be consolidated if 24.1 feasible and in accordance with other applicable statutes and 24.2 rules. Reconsideration under sections 245C.28; 626.556, 24.3 subdivision 10i; and 626.557, subdivision 9d, shall also be 24.4 consolidated if feasible. 24.5 Sec. 25. Minnesota Statutes 2003 Supplement, section 24.6 245A.11, subdivision 2b, is amended to read: 24.7 Subd. 2b. [ADULT FOSTER CARE; FAMILY ADULT DAY CARE24.8 SERVICES.] An adult foster care license holder licensed under 24.9 the conditions in subdivision 2a may also provide family adult 24.10 day care for adults age 55 or over if no persons in the adult 24.11 foster or adultfamily adult day careservices program have a 24.12 serious and persistent mental illness or a developmental 24.13 disability. The maximum combined capacity for adult foster care24.14 and family adult day care is five adults, except that the24.15 commissioner may grant a variance for a family adult day care24.16 provider to admit up to seven individuals for day care services24.17 and one individual for respite care services, if all of the24.18 following requirements are met: (1) the variance complies with24.19 section 245A.04, subdivision 9; (2) a second caregiver is24.20 present whenever six or more clients are being served; and (3)24.21 the variance is recommended by the county social service agency24.22 in the county where the provider is located. A separate license24.23 is not required to provide family adult day care under this24.24 subdivision.Family adult day services provided in a licensed 24.25 adult foster care setting must be provided as specified under 24.26 section 245A.143. Authorization to provide family adult day 24.27 services in the adult foster care setting shall be printed on 24.28 the license certificate by the commissioner. Adult foster care 24.29 homes providing services to five adultslicensed under this 24.30 section and family adult day services licensed under section 24.31 245A.143 shall not be subject to licensure by the commissioner 24.32 of health under the provisions of chapter 144, 144A, 157, or any 24.33 other law requiring facility licensure by the commissioner of 24.34 health. 24.35 Sec. 26. [245A.143] [FAMILY ADULT DAY SERVICES.] 24.36 Subdivision 1. [SCOPE.] (a) The licensing standards in 25.1 this section must be met to obtain and maintain a license to 25.2 provide family adult day services. For the purposes of this 25.3 section, family adult day services means a program operating 25.4 fewer than 24 hours per day that provides functionally impaired 25.5 adults, none of which are under age 55, have serious or 25.6 persistent mental illness, or have mental retardation or a 25.7 related condition, with an individualized and coordinated set of 25.8 services including health services, social services, and 25.9 nutritional services that are directed at maintaining or 25.10 improving the participants' capabilities for self-care. 25.11 (b) A family adult day services license shall only be 25.12 issued when the services are provided in the license holder's 25.13 primary residence, and the license holder is the primary 25.14 provider of care. The license holder may not serve more than 25.15 eight adults at one time, including residents, if any, served 25.16 under a license issued under Minnesota Rules, parts 9555.5105 to 25.17 9555.6265. 25.18 (c) An adult foster care license holder may provide family 25.19 adult day services if the license holder meets the requirements 25.20 of this section. 25.21 (d) When an applicant or license holder submits an 25.22 application for initial licensure or relicensure for both adult 25.23 foster care and family adult day services, the county agency 25.24 shall process the request as a single application and shall 25.25 conduct concurrent routine licensing inspections. 25.26 (e) Adult foster care license holders providing family 25.27 adult day services under their foster care license on March 30, 25.28 2004, shall be permitted to continue providing these services 25.29 with no additional requirements until their adult foster care 25.30 license is due for renewal. At the time of relicensure, an 25.31 adult foster care license holder may continue to provide family 25.32 adult day services upon demonstration of compliance with this 25.33 section. Adult foster care license holders who provide only 25.34 family adult day services on August 1, 2004, may apply for a 25.35 license under this section instead of an adult foster care 25.36 license. 26.1 Subd. 2. [DEFINITIONS.] (a) For the purposes of this 26.2 section, the terms defined in this subdivision have the 26.3 following meanings unless otherwise provided for by text. 26.4 (b) [CAREGIVER.] "Caregiver" means a spouse, adult child, 26.5 parent, relative, friend, or others who normally provide unpaid 26.6 support or care to the individual needing assistance. For the 26.7 purpose of this section, the caregiver may or may not have legal 26.8 or financial responsibility for the participant. 26.9 (c) [PARTICIPANT.] "Participant" means a functionally 26.10 impaired adult receiving family adult day services. 26.11 (d) [CONSULTATION BY A HEALTH CARE 26.12 PROFESSIONAL.] "Consultation by a health care professional" 26.13 means the review and oversight of the participant's 26.14 health-related services by a registered nurse, physician, or 26.15 mental health professional. 26.16 Subd. 3. [POLICY AND PROGRAM INFORMATION 26.17 REQUIREMENTS.] (a) The license holder shall have available for 26.18 review, and shall distribute to participants and their 26.19 caregivers upon admission, written information about: 26.20 (1) the scope of the programs, services, and care offered 26.21 by the license holder; 26.22 (2) a description of the population to be served by the 26.23 license holder; 26.24 (3) a description of individual conditions which the 26.25 license holder is not prepared to accept, such as a communicable 26.26 disease requiring isolation, a history of violence to self or 26.27 others, unmanageable incontinence, or uncontrollable wandering; 26.28 (4) the participants' rights and the procedure for 26.29 presenting grievances, including the name, address, and 26.30 telephone number of the Office of Ombudsman for Older 26.31 Minnesotans and the county licensing department, to which a 26.32 participant or participant's caregiver may submit an oral or 26.33 written complaint; 26.34 (5) the license holder's policy on and arrangements for 26.35 providing transportation; 26.36 (6) the license holder's policy on providing meals and 27.1 snacks; 27.2 (7) the license holder's fees, billing arrangements, and 27.3 plans for payment; 27.4 (8) the license holder's policy governing the presence of 27.5 pets in the home; 27.6 (9) the license holder's policy on smoking in the home; 27.7 (10) types of insurance coverage carried by the license 27.8 holder; 27.9 (11) information on orientation requirements under section 27.10 245A.65, subdivisions 1, paragraph (c), and 2, paragraph (a), 27.11 clause (4); 27.12 (12) the terms and conditions of the license holder's 27.13 license issued by the department; 27.14 (13) the license holder's plan for emergency evacuation of 27.15 participants involving fire, weather, and other disasters. The 27.16 plan must include instructions for evacuation or rescue of 27.17 participants, identification of an emergency shelter area, 27.18 quarterly fire drill schedule, and staff responsibilities; and 27.19 (14) the license holder's policy for handling harmful 27.20 objects, materials, or equipment including the storage of 27.21 poisonous chemicals, use of appliances, sharp instruments, 27.22 matches, or any other potentially harmful materials. 27.23 (b) The information in paragraph (a) must be provided in 27.24 writing to the commissioner's representative upon request and 27.25 must be available for inspection by the commissioner's 27.26 representative at the home. 27.27 Subd. 4. [ADMISSION SCREENING AND EVALUATION.] (a) Before 27.28 admitting an individual into the family adult day services 27.29 program, the license holder shall screen the individual to 27.30 determine how or whether the license holder can serve the 27.31 individual, based on the license holder's policies, services, 27.32 expertise, and the individual's needs and condition. If 27.33 possible, the screening shall include an interview with the 27.34 individual and with the individual's caregiver. 27.35 (b) The screening required under paragraph (a) shall 27.36 include an evaluation of the health, nutritional, and social 28.1 services needs of the individual. 28.2 Subd. 5. [SERVICE DELIVERY PLAN.] Before providing family 28.3 adult day services, an individual, the individual's caregiver, 28.4 the legal representative if there is one, the county or private 28.5 case manager, if applicable, and the license holder shall 28.6 develop a service delivery plan. At a minimum, the service 28.7 delivery plan shall include: 28.8 (1) a description of the health services, nutritional 28.9 services, and social services to be arranged or provided by the 28.10 license holder and the frequency of those services and the 28.11 services will be based on the needs of the individual; 28.12 (2) scheduled days and hours of participant's attendance at 28.13 the license holder's home; 28.14 (3) transportation arrangements for getting the participant 28.15 to and from the license holder's home; 28.16 (4) contingency plans if scheduled services cannot be 28.17 provided by the license holder; 28.18 (5) identification of responsibilities of the participant 28.19 and the license holder with respect to payment for the services; 28.20 (6) circumstances when emergency services will be called; 28.21 and 28.22 (7) identification of the license holder's discharge policy 28.23 when services are no longer needed or when the participant's 28.24 needs can no longer be met by the license holder. 28.25 Subd. 6. [INDIVIDUAL SERVICE PLAN.] (a) The service plan 28.26 must be coordinated with other plans of services for the 28.27 participant, as appropriate. 28.28 (b) The service plan must be dated and revised when there 28.29 is a change in the needs of the participant or annually, 28.30 whichever occurs sooner. 28.31 Subd. 7. [HEALTH SERVICES.] (a) The license holder shall 28.32 provide health services as specified in the service delivery 28.33 plan under the direction of the designated caregiver or county 28.34 or private case manager. Health services must include: 28.35 (1) monitoring the participant's level of function and 28.36 health while participating; taking appropriate action for a 29.1 change in condition including immediately reporting changes to 29.2 the participant's caregiver, physician, mental health 29.3 professional, or registered nurse; and seeking consultation; 29.4 (2) offering information to participants and caregivers on 29.5 good health and safety practices; and 29.6 (3) maintaining a listing of health resources available for 29.7 referrals as needed by participants and caregivers. 29.8 (b) Unless the person is a licensed health care 29.9 practitioner qualified to administer medications, the person 29.10 responsible for medication administration or assistance shall 29.11 provide a certificate verifying successful completion of a 29.12 trained medication aid program for unlicensed personnel approved 29.13 by the Department of Health or comparable program, or biennially 29.14 provide evidence of competency as demonstrated to a registered 29.15 nurse or physician. 29.16 (c) The license holder must have secure storage and 29.17 safeguarding of all medications with storage of medications in 29.18 their original container, know what information regarding 29.19 medication administration must be reported to a health care 29.20 professional, and must maintain a record of all medications 29.21 administered. 29.22 Subd. 8. [NUTRITIONAL SERVICES.] (a) The license holder 29.23 shall ensure that food served is nutritious and meets any 29.24 special dietary needs of the participants as prescribed by the 29.25 participant's physician or dietitian as specified in the service 29.26 delivery plan. 29.27 (b) Food and beverages must be obtained, handled, and 29.28 properly stored to prevent contamination, spoilage, or a threat 29.29 to the health of a resident. 29.30 Subd. 9. [SOCIAL SERVICES.] The license holder, in 29.31 consultation with the county or private case manager when 29.32 appropriate, shall actively assist the participant in 29.33 identifying and achieving personal goals, support the 29.34 participant in maintaining personal support networks and 29.35 socially valued roles, provide assistance to the participant to 29.36 enable community participation, and refer participants to the 30.1 Office of Ombudsman for Older Minnesotans and other advocacy 30.2 organizations for assistance when there is a potential conflict 30.3 of interest between the license holder and the participant. 30.4 Subd. 10. [PARTICIPANT RIGHTS.] (a) The license holder 30.5 shall adopt and comply with a participant bill of rights. The 30.6 rights shall include the participants' right to: 30.7 (1) participate in the development of the service plan; 30.8 (2) refuse services or participation; 30.9 (3) privacy; 30.10 (4) confidentiality of participant information; and 30.11 (5) present grievances regarding treatment or services to 30.12 the Office of Ombudsman for Older Minnesotans or the county 30.13 licensing department. The license holder's policies shall 30.14 include a procedure for addressing participant grievances, 30.15 including the name, address, and telephone number of the county 30.16 licensing department, to which a participant or participant 30.17 caregiver may submit an oral or written complaint. 30.18 (b) The license holder shall post the participant rights in 30.19 the home and shall provide a copy to the participant and the 30.20 participant's primary caregiver and legal representative if the 30.21 participant has one. 30.22 Subd. 11. [STAFFING.] Whenever participants are in the 30.23 home, there must be present at least one individual who is 30.24 trained in basic first aid and certified in cardiopulmonary 30.25 resuscitation and the treatment of obstructed airways. Whenever 30.26 there are six, seven, or eight participants present, there must 30.27 be a second staff person present. 30.28 Subd. 12. [TRAINING.] The license holder and license 30.29 holder's staff must annually complete 12 hours of training 30.30 related to the health, nutritional, and social needs of the 30.31 license holder's target population. License holders with six or 30.32 more years of licensure under this section or as an adult foster 30.33 care provider must annually complete six hours of training. The 30.34 annual training must include training on the reporting of 30.35 maltreatment of vulnerable adults under sections 626.557 and 30.36 626.5572; license holder requirements governing maltreatment of 31.1 vulnerable adults under section 245A.65; and, when a license 31.2 holder serves participants who rely on medical monitoring 31.3 equipment to sustain life or monitor a medical condition, 31.4 training on medical equipment as required under section 245A.155 31.5 for foster care providers. A record of all training must be 31.6 maintained in the home. 31.7 Subd. 13. [RESIDENTIAL REQUIREMENTS.] (a) The home where 31.8 family adult day services are to be provided shall be classified 31.9 as a residential group R-3 occupancy under the State Building 31.10 Code and State Fire Code for purposes of building code and fire 31.11 code inspections. A building code inspection is not required 31.12 for licensure under this section. The state or local fire 31.13 marshal must inspect the family adult day services home 31.14 operating in the residence for compliance with the residential 31.15 group R-3 occupancy provisions of the State Fire Code. 31.16 (b) The licensed capacity of the home shall be limited by 31.17 the amount of indoor space available for use by participants. 31.18 The total indoor space available for use by participants must 31.19 equal at least 35 square feet for each participant, the license 31.20 holder, and each staff member present in the home. In 31.21 determining the square footage of usable indoor space available, 31.22 the following must not be counted: hallways, stairways, 31.23 closets, offices, restrooms, and utility and storage areas. The 31.24 usable indoor space available must include a room or an area 31.25 that can be used as private space for providing personal hygiene 31.26 services or social services to participants. 31.27 (c) The residence must comply with all applicable local 31.28 ordinances. 31.29 Subd. 14. [VARIANCES.] The commissioner may grant a 31.30 variance to any of the requirements in this section if the 31.31 conditions in section 245A.04, subdivision 9, are met. 31.32 Sec. 27. Minnesota Statutes 2003 Supplement, section 31.33 245A.16, subdivision 1, is amended to read: 31.34 Subdivision 1. [DELEGATION OF AUTHORITY TO AGENCIES.] (a) 31.35 County agencies and private agencies that have been designated 31.36 or licensed by the commissioner to perform licensing functions 32.1 and activities under section 245A.04 and chapter 245C, to 32.2 recommend denial of applicants under section 245A.05, to issue 32.3 correction orders, to issue variances, and recommend a 32.4 conditional license under section 245A.06, or to recommend 32.5 suspending or revoking a license or issuing a fine under section 32.6 245A.07, shall comply with rules and directives of the 32.7 commissioner governing those functions and with this section. 32.8 The following variances are excluded from the delegation of 32.9 variance authority and may be issued only by the commissioner: 32.10 (1) dual licensure of family child care and child foster 32.11 care, dual licensure of child and adult foster care, and adult 32.12 foster care and family child care; 32.13 (2) adult foster care maximum capacity; 32.14 (3) adult foster care minimum age requirement; 32.15 (4) child foster care maximum age requirement; 32.16 (5) variances regarding disqualified individuals except 32.17 that county agencies may issue variances under section 245C.30 32.18 regarding disqualified individuals when the county is 32.19 responsible for conducting a consolidated reconsideration 32.20 according to sections 245C.25 and 245C.27, subdivision 2, 32.21 clauses (a) and (b), of a county maltreatment determination and 32.22 a disqualification based on serious or recurring maltreatment; 32.23 and 32.24 (6) the required presence of a caregiver in the adult 32.25 foster care residence during normal sleeping hours. 32.26 (b) County agencies must report information about 32.27 disqualification reconsiderations under sections 245C.25 and 32.28 245C.27, subdivision 2, clauses (a) and (b), and variances 32.29 granted under paragraph (a), clause (5), to the commissioner at 32.30 least monthly in a format prescribed by the commissioner. 32.31 (c) For family day care programs, the commissioner may 32.32 authorize licensing reviews every two years after a licensee has 32.33 had at least one annual review. 32.34 (d) For family adult day services programs, the 32.35 commissioner may authorize licensing reviews every two years 32.36 after a licensee has had at least one annual review. 33.1 (e) A license issued under this section may be issued for 33.2 up to two years. 33.3 Sec. 28. Minnesota Statutes 2002, section 245A.16, 33.4 subdivision 4, is amended to read: 33.5 Subd. 4. [ENFORCEMENT OF THE COMMISSIONER'S ORDERS.] The 33.6 county or private agency shall enforce the commissioner's orders 33.7 under sections 245A.07 and, 245A.08, subdivision 5, and chapter 33.8 245C, according to the instructions of the commissioner. The 33.9 county attorney shall assist the county agency in the 33.10 enforcement and defense of the commissioner's orders under 33.11 sections 245A.07 and, 245A.08, and chapter 245C, according to 33.12 the instructions of the commissioner, unless a conflict of 33.13 interest exists between the county attorney and the commissioner. 33.14 Sec. 29. Minnesota Statutes 2002, section 245A.22, 33.15 subdivision 2, is amended to read: 33.16 Subd. 2. [ADMISSION.] (a) The license holder shall accept 33.17 as clients in the independent living assistance program only 33.18 individuals specified under section 256E.115youth ages 16 to 21 33.19 who are in out-of-home placement, leaving out-of-home placement, 33.20 at risk of becoming homeless, or homeless. 33.21 (b) Youth who have current drug or alcohol problems, a 33.22 recent history of violent behaviors, or a mental health disorder 33.23 or issue that is not being resolved through counseling or 33.24 treatment are not eligible to receive the services described in 33.25 subdivision 1. 33.26 (c) Youth who are not employed, participating in employment 33.27 training, or enrolled in an academic program are not eligible to 33.28 receive transitional housing or independent living assistance. 33.29 [EFFECTIVE DATE.] This section is effective the day 33.30 following final enactment. 33.31 Sec. 30. Minnesota Statutes 2003 Supplement, section 33.32 245A.22, subdivision 3, is amended to read: 33.33 Subd. 3. [INDEPENDENT LIVING PLAN.] (a) Unless an 33.34 independent living plan has been developed by the local agency, 33.35 the license holder shall develop a plan based on the client's 33.36 individual needs that specifies objectives for the client. The 34.1 services provided shall include those specified in this section. 34.2 The plan shall identify the persons responsible for 34.3 implementation of each part of the plan. The plan shall be 34.4 reviewed as necessary, but at least annually. 34.5 (b) The following services, or adequate access to referrals 34.6 for the following services, must be made available to the 34.7 targeted youth participating in the programs described in 34.8 subdivision 1: 34.9 (1) counseling services for the youth and their families, 34.10 if appropriate, on site, to help with problems that contributed 34.11 to the homelessness or could impede making the transition to 34.12 independent living; 34.13 (2) educational, vocational, or employment services; 34.14 (3) health care; 34.15 (4) transportation services including, where appropriate, 34.16 assisting the child in obtaining a driver's license; 34.17 (5) money management skills training; 34.18 (6) planning for ongoing housing; 34.19 (7) social and recreational skills training; and 34.20 (8) assistance establishing and maintaining connections 34.21 with the child's family and community. 34.22 [EFFECTIVE DATE.] This section is effective the day 34.23 following final enactment. 34.24 Sec. 31. Minnesota Statutes 2002, section 245B.02, is 34.25 amended by adding a subdivision to read: 34.26 Subd. 12a. [INTERDISCIPLINARY TEAM.] "Interdisciplinary 34.27 team" means a team composed of the case manager, the person, the 34.28 person's legal representative and advocate, if any, and 34.29 representatives of providers of the service areas relevant to 34.30 the needs of the person as described in the individual service 34.31 plan. 34.32 [EFFECTIVE DATE.] This section is effective the day 34.33 following final enactment. 34.34 Sec. 32. Minnesota Statutes 2002, section 245B.05, 34.35 subdivision 2, is amended to read: 34.36 Subd. 2. [LICENSED CAPACITY FOR FACILITY-BASED DAY 35.1 TRAINING AND HABILITATION SERVICES.] The licensed capacity of 35.2 each day training and habilitation service sitessite must be 35.3 determined by the amount of primary space available, the 35.4 scheduling of activities at other service sites, and the space 35.5 requirements of consumers receiving services at the site. 35.6 Primary space does not include hallways, stairways, closets, 35.7 utility areas, bathrooms, kitchens, and floor areas beneath 35.8 stationary equipment. A facility-based day training and 35.9 habilitation site must have a minimum of 40 square feet of 35.10 primary space must beavailable for each consumer who is engaged35.11 in a day training and habilitation activity at the site for35.12 which the licensed capacity must be determinedpresent at the 35.13 site at any one time. Licensed capacity under this subdivision 35.14 does not apply to: (1) consumers receiving community-based day 35.15 training and habilitation services; and (2) the temporary use of 35.16 a facility-based training and habilitation service site for the 35.17 limited purpose of providing transportation to consumers 35.18 receiving community-based day training and habilitation services 35.19 from the license holder. The license holder must comply at all 35.20 times with all applicable fire and safety codes under 35.21 subdivision 4 and adequate supervision requirements under 35.22 section 245B.055 for all persons receiving day training and 35.23 habilitation services. 35.24 [EFFECTIVE DATE.] This section is effective the day 35.25 following final enactment. 35.26 Sec. 33. [245B.055] [MINIMUM LEVEL OF STAFFING REQUIRED 35.27 FOR DAY TRAINING AND HABILITATION SERVICES.] 35.28 Subdivision 1. [SCOPE.] This section applies only to 35.29 license holders that provide day training and habilitation 35.30 services. 35.31 Subd. 2. [FACTORS.] (a) The number of direct service staff 35.32 members that a license holder must have on duty at a given time 35.33 to meet the minimum staffing requirements established in this 35.34 section varies according to: 35.35 (1) the number of persons who are enrolled and receiving 35.36 direct services at that given time; 36.1 (2) the staff ratio requirement established under 36.2 subdivision 3 for each of the persons who is present; and 36.3 (3) whether the conditions described in subdivision 8 exist 36.4 and warrant additional staffing beyond the number determined to 36.5 be needed under subdivision 7. 36.6 (b) The commissioner shall consider the factors in 36.7 paragraph (a) in determining a license holder's compliance with 36.8 the staffing requirements and shall further consider whether the 36.9 staff ratio requirement established under subdivision 3 for each 36.10 person receiving services accurately reflects the person's need 36.11 for staff time. 36.12 Subd. 3. [DETERMINING AND DOCUMENTING THE STAFF RATIO 36.13 REQUIREMENT FOR EACH PERSON RECEIVING SERVICES.] The case 36.14 manager in consultation with the interdisciplinary team shall 36.15 determine at least once each year which of the ratios in 36.16 subdivisions 4, 5, and 6 is appropriate for each person 36.17 receiving services on the basis of the characteristics described 36.18 in subdivisions 4, 5, and 6. The ratio assigned each person and 36.19 the documentation of how the ratio was arrived at must be kept 36.20 in each person's individual service plan. Documentation must 36.21 include an assessment of the person with respect to the 36.22 characteristics in subdivisions 4, 5, and 6 recorded on a 36.23 standard assessment form required by the commissioner. 36.24 Subd. 4. [PERSON REQUIRING STAFF RATIO OF ONE TO FOUR.] A 36.25 person who has one or more of the following characteristics must 36.26 be assigned a staff ratio requirement of one to four: 36.27 (1) on a daily basis the person requires total care and 36.28 monitoring or constant hand over hand physical guidance to 36.29 successfully complete at least three of the following activities: 36.30 toileting, communicating basic needs, eating, or ambulating; or 36.31 (2) the person assaults others, is self-injurious, or 36.32 manifests severe dysfunctional behaviors at a documented level 36.33 of frequency, intensity, or duration requiring frequent daily 36.34 ongoing intervention and monitoring as established in an 36.35 approved behavior management program. 36.36 Subd. 5. [PERSON REQUIRING STAFF RATIO OF ONE TO EIGHT.] A 37.1 person who has all of the following characteristics must be 37.2 assigned a staff ratio requirement of one to eight: 37.3 (1) the person does not meet the requirements in 37.4 subdivision 4; and 37.5 (2) on a daily basis the person requires verbal prompts or 37.6 spot checks and minimal or no physical assistance to 37.7 successfully complete at least three of the following 37.8 activities: toileting, communicating basic needs, eating, or 37.9 ambulating. 37.10 Subd. 6. [PERSON REQUIRING STAFF RATIO OF ONE TO SIX.] A 37.11 person who does not have any of the characteristics described in 37.12 subdivision 4 or 5 must be assigned a staff ratio requirement of 37.13 one to six. 37.14 Subd. 7. [DETERMINING NUMBER OF DIRECT SERVICE STAFF 37.15 REQUIRED.] The minimum number of direct service staff members 37.16 required at any one time to meet the combined staff ratio 37.17 requirements of the persons present at that time can be 37.18 determined by following the steps in clauses (1) through (4): 37.19 (1) assign each person in attendance the three-digit 37.20 decimal below that corresponds to the staff ratio requirement 37.21 assigned to that person. A staff ratio requirement of one to 37.22 four equals 0.250. A staff ratio requirement of one to eight 37.23 equals 0.125. A staff ratio requirement of one to six equals 37.24 0.166; 37.25 (2) add all of the three-digit decimals (one three-digit 37.26 decimal for every person in attendance) assigned in clause (1); 37.27 (3) when the sum in clause (2) falls between two whole 37.28 numbers, round off the sum to the larger of the two whole 37.29 numbers; and 37.30 (4) the larger of the two whole numbers in clause (3) 37.31 equals the number of direct service staff members needed to meet 37.32 the staff ratio requirements of the persons in attendance. 37.33 Subd. 8. [CONDITIONS REQUIRING ADDITIONAL DIRECT SERVICE 37.34 STAFF.] The license holder shall increase the number of direct 37.35 service staff members present at any one time beyond the number 37.36 arrived at in subdivision 4 if necessary when any one or 38.1 combination of the following circumstances can be documented by 38.2 the commissioner as existing: 38.3 (1) the health and safety needs of the persons receiving 38.4 services cannot be met by the number of staff members available 38.5 under the staffing pattern in effect even though the number has 38.6 been accurately calculated under subdivision 7; or 38.7 (2) the behavior of a person presents an immediate danger 38.8 and the person is not eligible for a special needs rate 38.9 exception under Minnesota Rules, parts 9510.1020 to 9510.1140. 38.10 Subd. 9. [SUPERVISION REQUIREMENTS.] At no time shall one 38.11 direct service staff member be assigned responsibility for 38.12 supervision and training of more than ten persons receiving 38.13 supervision and training, except as otherwise stated in each 38.14 person's risk management plan. 38.15 [EFFECTIVE DATE.] This section is effective the day 38.16 following final enactment. 38.17 Sec. 34. Minnesota Statutes 2002, section 245B.07, 38.18 subdivision 8, is amended to read: 38.19 Subd. 8. [POLICIES AND PROCEDURES.] The license holder 38.20 must develop and implement the policies and procedures in 38.21 paragraphs (1) to (3). 38.22 (1) policies and procedures that promote consumer health 38.23 and safety by ensuring: 38.24 (i) consumer safety in emergency situations as identified 38.25 in section 245B.05, subdivision 7; 38.26 (ii) consumer health through sanitary practices; 38.27 (iii) safe transportation, when the license holder is 38.28 responsible for transportation of consumers, with provisions for 38.29 handling emergency situations; 38.30 (iv) a system of record keeping for both individuals and 38.31 the organization, for review of incidents and emergencies, and 38.32 corrective action if needed; 38.33 (v) a plan for responding to and reporting all emergencies,38.34 including deaths, medical emergencies, illnesses, accidents,38.35 missing consumers,all incidents, as defined in section 245B.02, 38.36 subdivision 10, fires, severe weather and natural disasters, 39.1 bomb threats, and other threats and reporting all incidents 39.2 required to be reported under section 245B.05, subdivision 7; 39.3 (vi) safe medication administration as identified in 39.4 section 245B.05, subdivision 5, incorporating an observed skill 39.5 assessment to ensure that staff demonstrate the ability to 39.6 administer medications consistent with the license holder's 39.7 policy and procedures; 39.8 (vii) psychotropic medication monitoring when the consumer 39.9 is prescribed a psychotropic medication, including the use of 39.10 the psychotropic medication use checklist. If the 39.11 responsibility for implementing the psychotropic medication use 39.12 checklist has not been assigned in the individual service plan 39.13 and the consumer lives in a licensed site, the residential 39.14 license holder shall be designated; and 39.15 (viii) criteria for admission or service initiation 39.16 developed by the license holder; 39.17 (2) policies and procedures that protect consumer rights 39.18 and privacy by ensuring: 39.19 (i) consumer data privacy, in compliance with the Minnesota 39.20 Data Practices Act, chapter 13; and 39.21 (ii) that complaint procedures provide consumers with a 39.22 simple process to bring grievances and consumers receive a 39.23 response to the grievance within a reasonable time period. The 39.24 license holder must provide a copy of the program's grievance 39.25 procedure and time lines for addressing grievances. The 39.26 program's grievance procedure must permit consumers served by 39.27 the program and the authorized representatives to bring a 39.28 grievance to the highest level of authority in the program; and 39.29 (3) policies and procedures that promote continuity and 39.30 quality of consumer supports by ensuring: 39.31 (i) continuity of care and service coordination, including 39.32 provisions for service termination, temporary service 39.33 suspension, and efforts made by the license holder to coordinate 39.34 services with other vendors who also provide support to the 39.35 consumer. The policy must include the following requirements: 39.36 (A) the license holder must notify the consumer or 40.1 consumer's legal representative and the consumer's case manager 40.2 in writing of the intended termination or temporary service 40.3 suspension and the consumer's right to seek a temporary order 40.4 staying the termination or suspension of service according to 40.5 the procedures in section 256.045, subdivision 4a or subdivision 40.6 6, paragraph (c); 40.7 (B) notice of the proposed termination of services, 40.8 including those situations that began with a temporary service 40.9 suspension, must be given at least 60 days before the proposed 40.10 termination is to become effective; 40.11 (C) the license holder must provide information requested 40.12 by the consumer or consumer's legal representative or case 40.13 manager when services are temporarily suspended or upon notice 40.14 of termination; 40.15 (D) use of temporary service suspension procedures are 40.16 restricted to situations in which the consumer's behavior causes 40.17 immediate and serious danger to the health and safety of the 40.18 individual or others; 40.19 (E) prior to giving notice of service termination or 40.20 temporary service suspension, the license holder must document 40.21 actions taken to minimize or eliminate the need for service 40.22 termination or temporary service suspension; and 40.23 (F) during the period of temporary service suspension, the 40.24 license holder will work with the appropriate county agency to 40.25 develop reasonable alternatives to protect the individual and 40.26 others; and 40.27 (ii) quality services measured through a program evaluation 40.28 process including regular evaluations of consumer satisfaction 40.29 and sharing the results of the evaluations with the consumers 40.30 and legal representatives. 40.31 Sec. 35. Minnesota Statutes 2002, section 245B.07, 40.32 subdivision 12, is amended to read: 40.33 Subd. 12. [SEPARATE LICENSE REQUIRED FOR SEPARATE SITES.] 40.34 The license holder shall apply for separate licenses for each 40.35 day training and habilitation service site owned or leased by 40.36 the license holder at which persons receiving services and the 41.1 provider's employees who provide training and habilitation 41.2 services are present for a cumulative total of more than 30 days 41.3 within any 12-month period, and for each residential service 41.4 site. Notwithstanding the foregoing, a separate license is not 41.5 required for a day training and habilitation service site used 41.6 only for the limited purpose of providing transportation to 41.7 consumers receiving community-based day training and 41.8 habilitation services from a license holder. 41.9 [EFFECTIVE DATE.] This section is effective the day 41.10 following final enactment. 41.11 Sec. 36. Minnesota Statutes 2003 Supplement, section 41.12 245C.02, subdivision 18, is amended to read: 41.13 Subd. 18. [SERIOUS MALTREATMENT.] (a) "Serious 41.14 maltreatment" means sexual abuse, maltreatment resulting in 41.15 death, maltreatment resulting in serious injury which reasonably 41.16 requires the care of a physician whether or not the care of a 41.17 physician was sought, or abuse resulting in serious injury. 41.18 (b) For purposes of this definition, "care of a physician" 41.19 is treatment received or ordered by a physician but does not 41.20 include diagnostic testing, assessment, or observation. 41.21 (c) For purposes of this definition, "abuse resulting in 41.22 serious injury" means: bruises, bites, skin laceration, or 41.23 tissue damage; fractures; dislocations; evidence of internal 41.24 injuries; head injuries with loss of consciousness; extensive 41.25 second-degree or third-degree burns and other burns for which 41.26 complications are present; extensive second-degree or 41.27 third-degree frostbite and other frostbite for which 41.28 complications are present; irreversible mobility or avulsion of 41.29 teeth; injuries to the eyes; ingestion of foreign substances and 41.30 objects that are harmful; near drowning; and heat exhaustion or 41.31 sunstroke. 41.32 (d) Serious maltreatment includes neglect when it results 41.33 in criminal sexual conduct against a child or vulnerable adult. 41.34 [EFFECTIVE DATE.] This section is effective the day 41.35 following final enactment. 41.36 Sec. 37. Minnesota Statutes 2003 Supplement, section 42.1 245C.03, subdivision 1, is amended to read: 42.2 Subdivision 1. [LICENSED PROGRAMS.] (a) The commissioner 42.3 shall conduct a background study on: 42.4 (1) the applicantperson or persons applying for a license; 42.5 (2) an individual age 13 and over living in the household 42.6 where the licensed program will be provided; 42.7 (3) current employees or contractors of the applicant who 42.8 will have direct contact with persons served by the facility, 42.9 agency, or program ; 42.10 (4) volunteers or student volunteers who will have direct 42.11 contact with persons served by the program to provide program 42.12 services if the contact is not under the continuous, direct 42.13 supervision by an individual listed in clause (1) or (3); 42.14 (5) an individual age ten to 12 living in the household 42.15 where the licensed services will be provided when the 42.16 commissioner has reasonable cause; and42.17 (6) an individual who, without providing direct contact 42.18 services at a licensed program, may have unsupervised access to 42.19 children or vulnerable adults receiving services from a program 42.20 licensed to provide: 42.21 (i) family child care for children; 42.22 (ii) foster care for children in the provider's own home; 42.23 or 42.24 (iii) foster care or day care services for adults in the 42.25 provider's own home; and 42.26 (7) all managerial officials as defined under section 42.27 245A.02, subdivision 5a. 42.28 The commissioner must have reasonable cause to study an 42.29 individual under this clausesubdivision. 42.30 (b) For family child foster care settings, a short-term 42.31 substitute caregiver providing direct contact services for a 42.32 child for less than 72 hours of continuous care is not required 42.33 to receive a background study under this chapter. 42.34 [EFFECTIVE DATE.] This section is effective the day 42.35 following final enactment. 42.36 Sec. 38. Minnesota Statutes 2003 Supplement, section 43.1 245C.03, is amended by adding a subdivision to read: 43.2 Subd. 5. [OTHER STATE AGENCIES.] The commissioner shall 43.3 conduct background studies on applicants and license holders 43.4 under the jurisdiction of other state agencies who are required 43.5 in other statutory sections to initiate background studies under 43.6 this chapter, including the applicant's or license holder's 43.7 employees, contractors, and volunteers when required under other 43.8 statutory sections. 43.9 [EFFECTIVE DATE.] This section is effective the day 43.10 following final enactment. 43.11 Sec. 39. Minnesota Statutes 2003 Supplement, section 43.12 245C.05, subdivision 1, is amended to read: 43.13 Subdivision 1. [INDIVIDUAL STUDIED.] (a) The individual 43.14 who is the subject of the background study must provide the 43.15 applicant, license holder, or other entity under section 245C.04 43.16 with sufficient information to ensure an accurate study, 43.17 including: 43.18 (1) the individual's first, middle, and last name and all 43.19 other names by which the individual has been known; 43.20 (2) home address, city, county,and state of residence for43.21 the past five years; 43.22 (3) zip code; 43.23 (4) sex; 43.24 (5) date of birth; and 43.25 (6) Minnesota driver's license number or state 43.26 identification number. 43.27 (b) Every subject of a background study conducted by 43.28 counties or private agencies under this chapter must also 43.29 provide the home address, city, county, and state of residence 43.30 for the past five years. 43.31 [EFFECTIVE DATE.] This section is effective the day 43.32 following final enactment. 43.33 Sec. 40. Minnesota Statutes 2003 Supplement, section 43.34 245C.05, subdivision 2, is amended to read: 43.35 Subd. 2. [APPLICANT, LICENSE HOLDER, OR OTHER ENTITY.] The 43.36 applicant, license holder, or other entity under section 245C.0444.1 entities as provided in this chapter shall provide the 44.2 information collected under subdivision 1 about an individual 44.3 who is the subject of the background study on forms or in a 44.4 format prescribed by the commissioner. 44.5 [EFFECTIVE DATE.] This section is effective the day 44.6 following final enactment. 44.7 Sec. 41. Minnesota Statutes 2003 Supplement, section 44.8 245C.05, subdivision 5, is amended to read: 44.9 Subd. 5. [FINGERPRINTS.] (a) For any background study 44.10 completed under this sectionchapter, when the commissioner has 44.11 reasonable cause to believe that further pertinent information 44.12 may exist on the subject of the background study, the subject 44.13 shall provide the commissioner with a set of classifiable 44.14 fingerprints obtained from an authorized law enforcement agency. 44.15 (b) For purposes of requiring fingerprints, the 44.16 commissioner has reasonable cause when, but not limited to, the: 44.17 (1) information from the Bureau of Criminal Apprehension 44.18 indicates that the subject is a multistate offender; 44.19 (2) information from the Bureau of Criminal Apprehension 44.20 indicates that multistate offender status is undetermined; or 44.21 (3) commissioner has received a report from the subject or 44.22 a third party indicating that the subject has a criminal history 44.23 in a jurisdiction other than Minnesota. 44.24 [EFFECTIVE DATE.] This section is effective the day 44.25 following final enactment. 44.26 Sec. 42. Minnesota Statutes 2003 Supplement, section 44.27 245C.05, subdivision 6, is amended to read: 44.28 Subd. 6. [APPLICANT, LICENSE HOLDER, REGISTRANTOTHER 44.29 ENTITIES, AND AGENCIES.] (a) The applicant, license 44.30 holder, registrantother entities as provided in this chapter, 44.31 Bureau of Criminal Apprehension, commissioner of health, and 44.32 county agencies shall help with the study by giving the 44.33 commissioner criminal conviction data and reports about the 44.34 maltreatment of adults substantiated under section 626.557 and 44.35 the maltreatment of minors in licensed programssubstantiated 44.36 under section 626.556. 45.1 (b) If a background study is initiated by an applicant or, 45.2 license holder, or other entities as provided in this chapter, 45.3 and the applicant or, license holder, or other entity receives 45.4 information about the possible criminal or maltreatment history 45.5 of an individual who is the subject of the background study, the 45.6 applicant or, license holder, or other entity must immediately 45.7 provide the information to the commissioner. 45.8 (c) The program or county or other agency must provide 45.9 written notice to the individual who is the subject of the 45.10 background study of the requirements under this subdivision. 45.11 [EFFECTIVE DATE.] This section is effective the day 45.12 following final enactment. 45.13 Sec. 43. Minnesota Statutes 2003 Supplement, section 45.14 245C.08, subdivision 2, is amended to read: 45.15 Subd. 2. [BACKGROUND STUDIES CONDUCTED BY A COUNTY OR 45.16 PRIVATE AGENCY; FOSTER CARE AND FAMILY CHILD CARE.] (a) For a 45.17 background study conducted by a county or private agency for 45.18 child foster care, adult foster care, and family child care 45.19 homes, the commissioner shall review: 45.20 (1) information from the county agency's record of 45.21 substantiated maltreatment of adults and the maltreatment of 45.22 minors; 45.23 (2) information from juvenile courts as required in 45.24 subdivision 4 for individuals listed in section 245C.03, 45.25 subdivision 1, clauses (2), (5), and (6); and45.26 (3) information from the Bureau of Criminal Apprehension; 45.27 and 45.28 (4) arrest and investigative records maintained by the 45.29 Bureau of Criminal Apprehension, county attorneys, county 45.30 sheriffs, courts, county agencies, local police, the National 45.31 Criminal Records Repository, and criminal records from other 45.32 states. 45.33 (b) If the individual has resided in the county for less 45.34 than five years, the study shall include the records specified 45.35 under paragraph (a) for the previous county or counties of 45.36 residence for the past five years. 46.1 [EFFECTIVE DATE.] This section is effective the day 46.2 following final enactment. 46.3 Sec. 44. Minnesota Statutes 2003 Supplement, section 46.4 245C.08, subdivision 3, is amended to read: 46.5 Subd. 3. [ARREST AND INVESTIGATIVE INFORMATION.] (a) For 46.6 any background study completed under this section, if the 46.7 commissioner has reasonable cause to believe the information is 46.8 pertinent to the disqualification of an individual listed in46.9 section 245C.03, subdivisions 1 and 2, the commissioner also may 46.10 review arrest and investigative information from: 46.11 (1) the Bureau of Criminal Apprehension; 46.12 (2) the commissioner of health; 46.13 (3) a county attorney; 46.14 (4) a county sheriff; 46.15 (5) a county agency; 46.16 (6) a local chief of police; 46.17 (7) other states; 46.18 (8) the courts; or 46.19 (9) the Federal Bureau of Investigation. 46.20 (b) The commissioner is not required to conduct more than 46.21 one review of a subject's records from the Federal Bureau of 46.22 Investigation if a review of the subject's criminal history with 46.23 the Federal Bureau of Investigation has already been completed 46.24 by the commissioner and there has been no break in the subject's 46.25 affiliation with the license holder who initiated the background 46.26 study. 46.27 [EFFECTIVE DATE.] This section is effective the day 46.28 following final enactment. 46.29 Sec. 45. Minnesota Statutes 2003 Supplement, section 46.30 245C.08, subdivision 4, is amended to read: 46.31 Subd. 4. [JUVENILE COURT RECORDS.] (a) The commissioner 46.32 shall review records from the juvenile courts for an individual 46.33 studied under section 245C.03, subdivision 1, clauses (2) and 46.34 (5). 46.35 (b) For individuals studied under section 245C.03, 46.36 subdivision 1, clauses (1), (3), (4), and (6), and subdivision 47.1 2, who are ages 13 to 17, the commissioner shall review records 47.2 from the juvenile courts when the commissioner has reasonable 47.3 cause. 47.4 (c) The juvenile courts shall help with the study by giving 47.5 the commissioner existing juvenile court records on individuals 47.6 described in section 245C.03, subdivision 1, clauses (2), (5), 47.7 and (6), relating to delinquency proceedings held within either 47.8 the five years immediately preceding the background study or the 47.9 five years immediately preceding the individual's 18th birthday, 47.10 whichever time period is longer. 47.11 (d) For purposes of this chapter, a finding that a 47.12 delinquency petition is proven in juvenile court shall be 47.13 considered a conviction in state district court. 47.14 (e) The commissioner shall destroy juvenile court records 47.15 obtained under this subdivision when the subject of the records 47.16 reaches age 23. 47.17 [EFFECTIVE DATE.] This section is effective the day 47.18 following final enactment. 47.19 Sec. 46. Minnesota Statutes 2003 Supplement, section 47.20 245C.09, subdivision 1, is amended to read: 47.21 Subdivision 1. [DISQUALIFICATION; LICENSING ACTION.] An 47.22 applicant's, license holder's, or registrant'sother entity's 47.23 failure or refusal to cooperate with the commissioner is 47.24 reasonable cause to disqualify a subject, deny a license 47.25 application, or immediately suspend or revoke a license or 47.26 registration. 47.27 [EFFECTIVE DATE.] This section is effective the day 47.28 following final enactment. 47.29 Sec. 47. Minnesota Statutes 2003 Supplement, section 47.30 245C.13, subdivision 1, is amended to read: 47.31 Subdivision 1. [TIMING.] Upon receipt of the background 47.32 study forms from an applicant, license holder, registrant,47.33 agency, organization, program,or other entity as provided in 47.34 this chapter required to initiate a background study under 47.35 section 245C.04, the commissioner shall complete the background 47.36 study and provide the notice required under section 245C.17, 48.1 subdivision 1, within 15 working days. 48.2 [EFFECTIVE DATE.] This section is effective the day 48.3 following final enactment. 48.4 Sec. 48. Minnesota Statutes 2003 Supplement, section 48.5 245C.14, subdivision 1, is amended to read: 48.6 Subdivision 1. [DISQUALIFICATION FROM DIRECT CONTACT.] (a) 48.7 The commissioner shall disqualify an individual who is the 48.8 subject of a background study from any position allowing direct 48.9 contact with persons receiving services from the license holder 48.10 or entity identified in section 245C.03, upon receipt of 48.11 information showing, or when a background study completed under 48.12 this chapter shows any of the following: 48.13 (1) a conviction of or admission to one or more crimes 48.14 listed in section 245C.15, regardless of whether the conviction 48.15 or admission is a felony, gross misdemeanor, or misdemeanor 48.16 level crime; 48.17 (2) a preponderance of the evidence indicates the 48.18 individual has committed an act or acts that meet the definition 48.19 of any of the crimes listed in section 245C.15, regardless of 48.20 whether the preponderance of the evidence is for a felony, gross 48.21 misdemeanor, or misdemeanor level crime; or 48.22 (3) an investigation results in an administrative 48.23 determination listed under section 245C.15, subdivision 4, 48.24 paragraph (b). 48.25 (b) No individual who is disqualified following a 48.26 background study under section 245C.03, subdivisions 1 and 2, 48.27 may be retained in a position involving direct contact with 48.28 persons served by a program or entity identified in section 48.29 245C.03, unless the commissioner has provided written notice 48.30 under section 245C.17 stating that: 48.31 (1) the individual may remain in direct contact during the 48.32 period in which the individual may request reconsideration as 48.33 provided in section 245C.21, subdivision 2; 48.34 (2) the commissioner has set aside the individual's 48.35 disqualification for that program or entity identified in 48.36 section 245C.03, as provided in section 245C.22, subdivision 4; 49.1 or 49.2 (3) the license holder has been granted a variance for the 49.3 disqualified individual under section 245C.30. 49.4 [EFFECTIVE DATE.] This section is effective the day 49.5 following final enactment. 49.6 Sec. 49. Minnesota Statutes 2003 Supplement, section 49.7 245C.15, subdivision 2, is amended to read: 49.8 Subd. 2. [15-YEAR DISQUALIFICATION.] (a) An individual is 49.9 disqualified under section 245C.14 if: (1) less than 15 years 49.10 have passed since the discharge of the sentence imposed for the 49.11 offense; and (2) the individual has received a felony conviction 49.12 for a violation of any of the following offenses: sections 49.13 260C.301 (grounds for termination of parental rights); 609.165 49.14 (felon ineligible to possess firearm); 609.21 (criminal 49.15 vehicular homicide and injury); 609.215 (suicide); 609.223 or 49.16 609.2231 (assault in the third or fourth degree); repeat 49.17 offenses under 609.224 (assault in the fifth degree); 609.2325 49.18 (criminal abuse of a vulnerable adult); 609.2335 (financial 49.19 exploitation of a vulnerable adult); 609.235 (use of drugs to 49.20 injure or facilitate crime); 609.24 (simple robbery); 609.255 49.21 (false imprisonment); 609.2664 (manslaughter of an unborn child 49.22 in the first degree); 609.2665 (manslaughter of an unborn child 49.23 in the second degree); 609.267 (assault of an unborn child in 49.24 the first degree); 609.2671 (assault of an unborn child in the 49.25 second degree); 609.268 (injury or death of an unborn child in 49.26 the commission of a crime); 609.27 (coercion); 609.275 (attempt 49.27 to coerce); repeat offenses under 609.3451 (criminal sexual 49.28 conduct in the fifth degree); 609.498, subdivision 1 or 1b 49.29 (aggravated first degree or first degree tampering with a 49.30 witness); 609.52 (theft); 609.521 (possession of shoplifting 49.31 gear); 609.562 (arson in the second degree); 609.563 (arson in 49.32 the third degree); 609.582 (burglary); 609.625 (aggravated 49.33 forgery); 609.63 (forgery); 609.631 (check forgery; offering a 49.34 forged check); 609.635 (obtaining signature by false pretense); 49.35 609.66 (dangerous weapons); 609.67 (machine guns and 49.36 short-barreled shotguns); 609.687 (adulteration); 609.71 (riot); 50.1 609.713 (terroristic threats); repeat offenses under 617.23 50.2 (indecent exposure; penalties); repeat offenses under 617.241 50.3 (obscene materials and performances; distribution and exhibition 50.4 prohibited; penalty); chapter 152 (drugs; controlled substance); 50.5 or a felony level conviction involving alcohol or drug use. 50.6 (b) An individual is disqualified under section 245C.14 if 50.7 less than 15 years has passed since the individual's attempt or 50.8 conspiracy to commit any of the offenses listed in paragraph 50.9 (a), as each of these offenses is defined in Minnesota Statutes. 50.10 (c) An individual is disqualified under section 245C.14 if 50.11 less than 15 years has passed since the discharge of the 50.12 sentence imposed for an offense in any other state or country, 50.13 the elements of which are substantially similar to the elements 50.14 of the offenses listed in paragraph (a). 50.15 (d) If the individual studied is convicted of one of the 50.16 felonies listed in paragraph (a), but the sentence is a gross 50.17 misdemeanor or misdemeanor disposition, the individual is 50.18 disqualified but the disqualification lookback period for the 50.19 conviction is the period applicable to the gross misdemeanor or 50.20 misdemeanor disposition. 50.21 [EFFECTIVE DATE.] This section is effective the day 50.22 following final enactment. 50.23 Sec. 50. Minnesota Statutes 2003 Supplement, section 50.24 245C.15, subdivision 3, is amended to read: 50.25 Subd. 3. [TEN-YEAR DISQUALIFICATION.] (a) An individual is 50.26 disqualified under section 245C.14 if: (1) less than ten years 50.27 have passed since the discharge of the sentence imposed for the 50.28 offense; and (2) the individual has received a gross misdemeanor 50.29 conviction for a violation of any of the following offenses: 50.30 sections 609.224 (assault in the fifth degree); 609.224, 50.31 subdivision 2, paragraph (c) (assault in the fifth degree by a 50.32 caregiver against a vulnerable adult); 609.2242 and 609.2243 50.33 (domestic assault); 609.23 (mistreatment of persons confined); 50.34 609.231 (mistreatment of residents or patients); 609.2325 50.35 (criminal abuse of a vulnerable adult); 609.233 (criminal 50.36 neglect of a vulnerable adult); 609.2335 (financial exploitation 51.1 of a vulnerable adult); 609.234 (failure to report maltreatment 51.2 of a vulnerable adult); 609.265 (abduction); 609.275 (attempt to 51.3 coerce); 609.324, subdivision 1a (other prohibited acts; minor 51.4 engaged in prostitution); 609.33 (disorderly house); 609.3451 51.5 (criminal sexual conduct in the fifth degree); 609.377 51.6 (malicious punishment of a child); 609.378 (neglect or 51.7 endangerment of a child); 609.52 (theft); 609.582 (burglary); 51.8 609.631 (check forgery; offering a forged check); 609.66 51.9 (dangerous weapons); 609.71 (riot); 609.72, subdivision 3 51.10 (disorderly conduct against a vulnerable adult); repeat offenses 51.11 under 609.746 (interference with privacy); 609.749, subdivision 51.12 2 (harassment; stalking); repeat offenses under 617.23 (indecent 51.13 exposure); 617.241 (obscene materials and performances); 617.243 51.14 (indecent literature, distribution); 617.293 (harmful materials; 51.15 dissemination and display to minors prohibited); or violation of 51.16 an order for protection under section 518B.01, subdivision 14. 51.17 (b) An individual is disqualified under section 245C.14 if 51.18 less than ten years has passed since the individual's attempt or 51.19 conspiracy to commit any of the offenses listed in paragraph 51.20 (a), as each of these offenses is defined in Minnesota Statutes. 51.21 (c) An individual is disqualified under section 245C.14 if 51.22 less than ten years has passed since the discharge of the 51.23 sentence imposed for an offense in any other state or country, 51.24 the elements of which are substantially similar to the elements 51.25 of any of the offenses listed in paragraph (a). 51.26 (d) If the defendant is convicted of one of the gross 51.27 misdemeanors listed in paragraph (a), but the sentence is a 51.28 misdemeanor disposition, the individual is disqualified but the 51.29 disqualification lookback period for the conviction is the 51.30 period applicable to misdemeanors. 51.31 [EFFECTIVE DATE.] This section is effective the day 51.32 following final enactment. 51.33 Sec. 51. Minnesota Statutes 2003 Supplement, section 51.34 245C.15, subdivision 4, is amended to read: 51.35 Subd. 4. [SEVEN-YEAR DISQUALIFICATION.] (a) An individual 51.36 is disqualified under section 245C.14 if: (1) less than seven 52.1 years has passed since the discharge of the sentence imposed for 52.2 the offense; and (2) the individual has received a misdemeanor 52.3 conviction for a violation of any of the following offenses: 52.4 sections 609.224 (assault in the fifth degree); 609.2242 52.5 (domestic assault); 609.2335 (financial exploitation of a 52.6 vulnerable adult); 609.234 (failure to report maltreatment of a 52.7 vulnerable adult); 609.2672 (assault of an unborn child in the 52.8 third degree); 609.27 (coercion); violation of an order for 52.9 protection under 609.3232 (protective order authorized; 52.10 procedures; penalties); 609.52 (theft); 609.66 (dangerous 52.11 weapons); 609.665 (spring guns); 609.746 (interference with 52.12 privacy); 609.79 (obscene or harassing phone calls); 609.795 52.13 (letter, telegram, or package; opening; harassment); 617.23 52.14 (indecent exposure; penalties); 617.293 (harmful materials; 52.15 dissemination and display to minors prohibited); or violation of 52.16 an order for protection under section 518B.01 (Domestic Abuse 52.17 Act). 52.18 (b) An individual is disqualified under section 245C.14 if 52.19 less than seven years has passed since a determination or 52.20 disposition of the individual's: 52.21 (1) failure to make required reports under section 626.556, 52.22 subdivision 3, or 626.557, subdivision 3, for incidents in 52.23 which: (i) the final disposition under section 626.556 or 52.24 626.557 was substantiated maltreatment, and (ii) the 52.25 maltreatment was recurring or serious; or 52.26 (2) substantiated serious or recurring maltreatment of a 52.27 minor under section 626.556 or of, a vulnerable adult under 52.28 section 626.557, or serious or recurring maltreatment in any 52.29 other state, the elements of which are substantially similar to 52.30 the elements of maltreatment under section 626.556 or 626.557 52.31 for which: (i) there is a preponderance of evidence that the 52.32 maltreatment occurred, and (ii) the subject was responsible for 52.33 the maltreatment. 52.34 (c) An individual is disqualified under section 245C.14 if 52.35 less than seven years has passed since the individual's attempt 52.36 or conspiracy to commit any of the offenses listed in paragraphs 53.1 (a) and (b), as each of these offenses is defined in Minnesota 53.2 Statutes. 53.3 (d) An individual is disqualified under section 245C.14 if 53.4 less than seven years has passed since the discharge of the 53.5 sentence imposed for an offense in any other state or country, 53.6 the elements of which are substantially similar to the elements 53.7 of any of the offenses listed in paragraphs (a) and (b). 53.8 [EFFECTIVE DATE.] This section is effective the day 53.9 following final enactment. 53.10 Sec. 52. Minnesota Statutes 2003 Supplement, section 53.11 245C.16, subdivision 1, is amended to read: 53.12 Subdivision 1. [DETERMINING IMMEDIATE RISK OF HARM.] (a) 53.13 If the commissioner determines that the individual studied has a 53.14 disqualifying characteristic, the commissioner shall review the 53.15 information immediately available and make a determination as to 53.16 the subject's immediate risk of harm to persons served by the 53.17 program where the individual studied will have direct contact. 53.18 (b) The commissioner shall consider all relevant 53.19 information available, including the following factors in 53.20 determining the immediate risk of harm: 53.21 (1) the recency of the disqualifying characteristic; 53.22 (2) the recency of discharge from probation for the crimes; 53.23 (3) the number of disqualifying characteristics; 53.24 (4) the intrusiveness or violence of the disqualifying 53.25 characteristic; 53.26 (5) the vulnerability of the victim involved in the 53.27 disqualifying characteristic; and53.28 (6) the similarity of the victim to the persons served by 53.29 the program where the individual studied will have direct 53.30 contact; and 53.31 (7) whether the individual has a disqualification from a 53.32 previous background study that has not been set aside. 53.33 (c) This section does not apply when the subject of a 53.34 background study is regulated by a health-related licensing 53.35 board as defined in chapter 214, and the subject is determined 53.36 to be responsible for substantiated maltreatment under section 54.1 626.556 or 626.557. 54.2 (d) If the commissioner has reason to believe, based on 54.3 arrest information or an active maltreatment investigation, that 54.4 an individual poses an imminent risk of harm to persons 54.5 receiving services, the commissioner may order that the person 54.6 be continuously supervised or immediately removed pending the 54.7 conclusion of the maltreatment investigation or criminal 54.8 proceedings. 54.9 [EFFECTIVE DATE.] This section is effective the day 54.10 following final enactment. 54.11 Sec. 53. Minnesota Statutes 2003 Supplement, section 54.12 245C.17, subdivision 1, is amended to read: 54.13 Subdivision 1. [TIME FRAME FOR NOTICE OF STUDY RESULTS.] 54.14 (a) Within 15 working days after the commissioner's receipt of 54.15 the background study form, the commissioner shall notify the 54.16 individual who is the subject of the study in writing or by 54.17 electronic transmission of the results of the study or that more 54.18 time is needed to complete the study. 54.19 (b) Within 15 working days after the commissioner's receipt 54.20 of the background study form, the commissioner shall notify the 54.21 applicant, license holder, or registrantother entity as 54.22 provided in this chapter in writing or by electronic 54.23 transmission of the results of the study or that more time is 54.24 needed to complete the study. 54.25 [EFFECTIVE DATE.] This section is effective the day 54.26 following final enactment. 54.27 Sec. 54. Minnesota Statutes 2003 Supplement, section 54.28 245C.17, subdivision 3, is amended to read: 54.29 Subd. 3. [DISQUALIFICATION NOTICE SENT TO APPLICANT, 54.30 LICENSE HOLDER, OR REGISTRANTOTHER ENTITY.] (a) The 54.31 commissioner shall notify an applicant, license holder, 54.32 or registrantother entity as provided in this chapter who is 54.33 not the subject of the study: 54.34 (1) that the commissioner has found information that 54.35 disqualifies the individual studied from direct contact with, or 54.36 from access to, persons served by the program; and 55.1 (2) the commissioner's determination of the individual's 55.2 risk of harm under section 245C.16. 55.3 (b) If the commissioner determines under section 245C.16 55.4 that an individual studied poses an imminent risk of harm to 55.5 persons served by the program where the individual studied will 55.6 have direct contact, the commissioner shall order the license 55.7 holder to immediately remove the individual studied from direct 55.8 contact. 55.9 (c) If the commissioner determines under section 245C.16 55.10 that an individual studied poses a risk of harm that requires 55.11 continuous, direct supervision, the commissioner shall order the 55.12 applicant, license holder, or other entities as provided in this 55.13 chapter to: 55.14 (1) immediately remove the individual studied from direct 55.15 contact services; or 55.16 (2) assure that the individual studied is under continuous, 55.17 direct supervision when providing direct contact services during 55.18 the period in which the individual may request a reconsideration 55.19 of the disqualification under section 245C.21. 55.20 (d) If the commissioner determines under section 245C.16 55.21 that an individual studied does not pose a risk of harm that 55.22 requires continuous, direct supervision, the commissioner shall 55.23 send the license holder a notice that more time is needed to 55.24 complete the individual's background study. 55.25 (e) The commissioner shall not notify the applicant, 55.26 license holder, or registrantother entity as provided in this 55.27 chapter of the information contained in the subject's background 55.28 study unless: 55.29 (1) the basis for the disqualification is failure to 55.30 cooperate with the background study or substantiated 55.31 maltreatment under section 626.556 or 626.557; 55.32 (2) the Data Practices Act under chapter 13 provides for 55.33 release of the information; or 55.34 (3) the individual studied authorizes the release of the 55.35 information. 55.36 [EFFECTIVE DATE.] This section is effective the day 56.1 following final enactment. 56.2 Sec. 55. Minnesota Statutes 2003 Supplement, section 56.3 245C.18, is amended to read: 56.4 245C.18 [OBLIGATION TO REMOVE DISQUALIFIED INDIVIDUAL FROM 56.5 DIRECT CONTACT.] 56.6 Upon receipt of notice from the commissioner, the license 56.7 holder must remove a disqualified individual from direct contact 56.8 with persons served by the licensed program if: 56.9 (1) the individual does not request reconsideration under 56.10 section 245C.21 within the prescribed time , or if; 56.11 (2) the individual submits a timely request for 56.12 reconsideration, andthe commissioner does not set aside the 56.13 disqualification under section 245C.22, subdivision 4 ., and the 56.14 individual does not submit a timely request for a hearing under 56.15 sections 245C.27 and 256.045, or 245C.28 and chapter 14; or 56.16 (3) the individual submits a timely request for a hearing 56.17 under sections 245C.27 and 256.045, or 245C.28 and chapter 14, 56.18 and the commissioner does not set aside or rescind the 56.19 disqualification under section 245A.08, subdivision 5, or 56.20 256.045. 56.21 [EFFECTIVE DATE.] This section is effective the day 56.22 following final enactment. 56.23 Sec. 56. Minnesota Statutes 2003 Supplement, section 56.24 245C.20, is amended to read: 56.25 245C.20 [LICENSE HOLDER RECORD KEEPING.] 56.26 A licensed program shall document the date the program 56.27 initiates a background study under this chapter in the program's 56.28 personnel files. When a background study is completed under 56.29 this chapter, a licensed program shall maintain a notice that 56.30 the study was undertaken and completed in the program's 56.31 personnel files. If a licensed program has not received a 56.32 response from the commissioner under section 245C.17 within 45 56.33 days of initiation of the background study request, the licensed 56.34 program must contact the commissioner to inquire about the 56.35 status of the study. 56.36 [EFFECTIVE DATE.] This section is effective the day 57.1 following final enactment. 57.2 Sec. 57. Minnesota Statutes 2003 Supplement, section 57.3 245C.21, subdivision 3, is amended to read: 57.4 Subd. 3. [INFORMATION DISQUALIFIED INDIVIDUALS MUST 57.5 PROVIDE WHEN REQUESTING RECONSIDERATION.] The disqualified 57.6 individual requesting reconsideration must submit information 57.7 showing that: 57.8 (1) the information the commissioner relied upon in 57.9 determining the underlying conduct that gave rise to the 57.10 disqualification is incorrect; 57.11 (2) for maltreatment, the information the commissioner 57.12 relied upon in determining that maltreatment was serious or 57.13 recurring is incorrect; or 57.14 (3) the subject of the study does not pose a risk of harm 57.15 to any person served by the applicant, license holder, or 57.16 registrantother entities as provided in this chapter, by 57.17 addressing the information required under section 245C.22, 57.18 subdivision 4. 57.19 [EFFECTIVE DATE.] This section is effective the day 57.20 following final enactment. 57.21 Sec. 58. Minnesota Statutes 2003 Supplement, section 57.22 245C.21, is amended by adding a subdivision to read: 57.23 Subd. 4. [NOTICE OF REQUEST FOR RECONSIDERATION.] Upon 57.24 request, the commissioner may inform the applicant, license 57.25 holder, or other entities as provided in this chapter who 57.26 received a notice of the individual's disqualification under 57.27 section 245C.17, subdivision 3, or has the consent of the 57.28 disqualified individual, whether the disqualified individual has 57.29 requested reconsideration. 57.30 [EFFECTIVE DATE.] This section is effective the day 57.31 following final enactment. 57.32 Sec. 59. Minnesota Statutes 2003 Supplement, section 57.33 245C.22, subdivision 3, is amended to read: 57.34 Subd. 3. [PREEMINENT WEIGHT GIVEN TO SAFETY OF PERSONS 57.35 BEING SERVED.] In reviewing a request for reconsideration of a 57.36 disqualification, the commissioner shall give preeminent weight 58.1 to the safety of each person served by the license holder, 58.2 applicant, or registrantother entities as provided in this 58.3 chapter over the interests of the license holder, applicant, 58.4 or registrantother entity as provided in this chapter, and any 58.5 single factor under subdivision 4, paragraph (b), may be 58.6 determinative of the commissioner's decision whether to set 58.7 aside the individual's disqualification. 58.8 [EFFECTIVE DATE.] This section is effective the day 58.9 following final enactment. 58.10 Sec. 60. Minnesota Statutes 2003 Supplement, section 58.11 245C.22, subdivision 4, is amended to read: 58.12 Subd. 4. [RISK OF HARM; SET ASIDE.] (a) The commissioner 58.13 may set aside the disqualification if the commissioner finds 58.14 that the individual has submitted sufficient information to 58.15 demonstrate that the individual does not pose a risk of harm to 58.16 any person served by the applicant, license holder, 58.17 or registrantother entities as provided in this chapter. 58.18 (b) In determining ifwhether the individual has met the 58.19 burden of proof by demonstrating the individual does not pose a 58.20 risk of harm, the commissioner shall consider: 58.21 (1) the nature, severity, and consequences of the event or 58.22 events that led to the disqualification; 58.23 (2) whether there is more than one disqualifying event; 58.24 (3) the age and vulnerability of the victim at the time of 58.25 the event; 58.26 (4) the harm suffered by the victim; 58.27 (5) the similarity between the victim and persons served by 58.28 the program; 58.29 (6) the time elapsed without a repeat of the same or 58.30 similar event; 58.31 (7) documentation of successful completion by the 58.32 individual studied of training or rehabilitation pertinent to 58.33 the event; and 58.34 (8) any other information relevant to reconsideration. 58.35 [EFFECTIVE DATE.] This section is effective the day 58.36 following final enactment. 59.1 Sec. 61. Minnesota Statutes 2003 Supplement, section 59.2 245C.22, subdivision 5, is amended to read: 59.3 Subd. 5. [SCOPE OF SET ASIDE.] If the commissioner sets 59.4 aside a disqualification under this section, the disqualified 59.5 individual remains disqualified, but may hold a license and have 59.6 direct contact with or access to persons receiving services. 59.7 The commissioner's set aside of a disqualification is limited 59.8 solely to the licensed program, applicant, or agency specified 59.9 in the set aside notice under section 245C.23, unless otherwise 59.10 specified in the notice. 59.11 [EFFECTIVE DATE.] This section is effective the day 59.12 following final enactment. 59.13 Sec. 62. Minnesota Statutes 2003 Supplement, section 59.14 245C.22, subdivision 6, is amended to read: 59.15 Subd. 6. [RECISION OF SET ASIDE.] The commissioner may 59.16 rescind a previous set aside of a disqualification under this 59.17 section based on new information that indicates the individual 59.18 may pose a risk of harm to persons served by the applicant, 59.19 license holder, or registrantother entities as provided in this 59.20 chapter. If the commissioner rescinds a set aside of a 59.21 disqualification under this paragraphsubdivision, the appeal 59.22 rights under sections 245C.21 and, 245C.27, subdivision 1, and 59.23 245C.28, subdivision 3, shall apply. 59.24 [EFFECTIVE DATE.] This section is effective the day 59.25 following final enactment. 59.26 Sec. 63. Minnesota Statutes 2003 Supplement, section 59.27 245C.23, subdivision 1, is amended to read: 59.28 Subdivision 1. [COMMISSIONER'S NOTICE OF DISQUALIFICATION 59.29 THAT IS SET ASIDE.] (a) Except as provided under paragraph (c), 59.30 if the commissioner sets aside a disqualification, the 59.31 commissioner shall notify the applicant or license holder in 59.32 writing or by electronic transmission of the decision. In the 59.33 notice from the commissioner that a disqualification has been 59.34 set aside, the commissioner must inform the license holder that 59.35 information about the nature of the disqualification and which 59.36 factors under section 245C.22, subdivision 4, were the basis of 60.1 the decision to set aside the disqualification are available to 60.2 the license holder upon request without the consent of the 60.3 background study subject. 60.4 (b) With the written consent of the background study 60.5 subject, the commissioner may release to the license holder 60.6 copies of all information related to the background study 60.7 subject's disqualification and the commissioner's decision to 60.8 set aside the disqualification as specified in the written 60.9 consent. 60.10 (c) If the individual studied submits a timely request for 60.11 reconsideration under section 245C.21 and the license holder was 60.12 previously sent a notice under section 245C.17, subdivision 3, 60.13 paragraph (d), and if the commissioner sets aside the 60.14 disqualification for that license holder under section 245C.22, 60.15 the commissioner shall send the license holder the same 60.16 notification received by license holders in cases where the 60.17 individual studied has no disqualifying characteristic. 60.18 [EFFECTIVE DATE.] This section is effective the day 60.19 following final enactment. 60.20 Sec. 64. Minnesota Statutes 2003 Supplement, section 60.21 245C.23, subdivision 2, is amended to read: 60.22 Subd. 2. [COMMISSIONER'S NOTICE OF DISQUALIFICATION THAT 60.23 IS NOT SET ASIDE.] (a) The commissioner shall notify the license 60.24 holder of the disqualification and order the license holder to 60.25 immediately remove the individual from any position allowing 60.26 direct contact with persons receiving services from the license 60.27 holder if: 60.28 (1) the individual studied does not submit a timely request 60.29 for reconsideration under section 245C.21 , or; 60.30 (2) the individual submits a timely request for 60.31 reconsideration, but the commissioner does not set aside the 60.32 disqualification for that license holder under section 245C.22 ,60.33 the commissioner shall notify the license holder of the60.34 disqualification and order the license holder to immediately60.35 remove the individual from any position allowing direct contact60.36 with persons receiving services from the license holder.; 61.1 (3) an individual who has a right to request a hearing 61.2 under sections 245C.27 and 256.045, or 245C.28 and chapter 14 61.3 for a disqualification that has not been set aside, does not 61.4 request a hearing within the specified time; or 61.5 (4) an individual submitted a timely request for a hearing 61.6 under sections 245C.27 and 256.045, or 245C.28 and chapter 14, 61.7 but the commissioner does not set aside the disqualification 61.8 under section 245A.08, subdivision 5, or 256.045. 61.9 (b) If the commissioner does not set aside the 61.10 disqualification under section 245C.22, and the license holder 61.11 was previously ordered under section 245C.17 to immediately 61.12 remove the disqualified individual from direct contact with 61.13 persons receiving services or to ensure that the individual is 61.14 under continuous, direct supervision when providing direct 61.15 contact services, the order remains in effect pending the 61.16 outcome of a hearing under sections 245C.27 and 256.045, or 61.17 245C.28 and chapter 14. 61.18 [EFFECTIVE DATE.] This section is effective the day 61.19 following final enactment. 61.20 Sec. 65. Minnesota Statutes 2003 Supplement, section 61.21 245C.25, is amended to read: 61.22 245C.25 [CONSOLIDATED RECONSIDERATION OF MALTREATMENT 61.23 DETERMINATION AND DISQUALIFICATION.] 61.24 (a) If an individual is disqualified on the basis of a 61.25 determination of maltreatment under section 626.556 or 626.557, 61.26 which was serious or recurring, and the individual requests 61.27 reconsideration of the maltreatment determination under section 61.28 626.556, subdivision 10i, or 626.557, subdivision 9d, and also 61.29 requests reconsideration of the disqualification under section 61.30 245C.21, the commissioner shall consolidate the reconsideration 61.31 of the maltreatment determination and the disqualification into 61.32 a single reconsideration. 61.33 (b) For maltreatment and disqualification determinations 61.34 made by county agencies, the county agency shall conduct the 61.35 consolidated reconsideration. If the county agency has 61.36 disqualified an individual on multiple bases, one of which is a 62.1 county maltreatment determination for which the individual has a 62.2 right to request reconsideration, the county shall conduct the 62.3 reconsideration of all disqualifications. 62.4 (c) If the county has previously conducted a consolidated 62.5 reconsideration under paragraph (b) of a maltreatment 62.6 determination and a disqualification based on serious or 62.7 recurring maltreatment, and the county subsequently disqualifies 62.8 the individual based on that determination, the county shall 62.9 conduct the reconsideration of the subsequent disqualification. 62.10 The scope of the subsequent disqualification shall be limited to 62.11 whether the individual poses a risk of harm in accordance with 62.12 section 245C.22, subdivision 4. 62.13 [EFFECTIVE DATE.] This section is effective the day 62.14 following final enactment. 62.15 Sec. 66. Minnesota Statutes 2003 Supplement, section 62.16 245C.26, is amended to read: 62.17 245C.26 [RECONSIDERATION OF A DISQUALIFICATION FOR AN 62.18 INDIVIDUAL LIVING IN A LICENSED HOME.] 62.19 In the case of any ground for disqualification under this 62.20 chapter, if the act was committed by an individual other than 62.21 the applicant ,or license holder , or registrantresiding in the 62.22 applicant's ,or license holder's , or registrant'shome, the 62.23 applicant ,or license holder , or registrantmay seek 62.24 reconsideration when the individual who committed the act no 62.25 longer resides in the home. 62.26 [EFFECTIVE DATE.] This section is effective the day 62.27 following final enactment. 62.28 Sec. 67. Minnesota Statutes 2003 Supplement, section 62.29 245C.27, subdivision 1, is amended to read: 62.30 Subdivision 1. [FAIR HEARING WHEN DISQUALIFICATION IS NOT 62.31 SET ASIDE.] (a) If the commissioner does not set aside or 62.32 rescind a disqualification of an individual under section 62.33 245C.22 who is disqualified on the basis of a preponderance of 62.34 evidence that the individual committed an act or acts that meet 62.35 the definition of any of the crimes listed in section 245C.15; 62.36 for a determination under section 626.556 or 626.557 of 63.1 substantiated maltreatment that was serious or recurring under 63.2 section 245C.15; or for failure to make required reports under 63.3 section 626.556, subdivision 3; or 626.557, subdivision 3, 63.4 pursuant to section 245C.15, subdivision 4, paragraph (b), 63.5 clause (1), the individual may request a fair hearing under 63.6 section 256.045, unless the disqualification is deemed 63.7 conclusive under section 245C.29. 63.8 (b) The fair hearing is the only administrative appeal of 63.9 the final agency determination for purposes of appeal by the 63.10 disqualified individual. The disqualified individual does not 63.11 have the right to challenge the accuracy and completeness of 63.12 data under section 13.04. 63.13 (c) If the individual was disqualified based on a 63.14 conviction or admission to any crimes listed in section 245C.15, 63.15 subdivisions 1 to 4, the reconsideration decision under this63.16 subdivisionsection 245C.22 is the final agency determination 63.17 for purposes of appeal by the disqualified individual and is not 63.18 subject to a hearing under section 256.045. 63.19 (d) This sectionsubdivision does not apply to a public 63.20 employee's appeal of a disqualification under section 245C.28, 63.21 subdivision 3. 63.22 [EFFECTIVE DATE.] This section is effective the day 63.23 following final enactment. 63.24 Sec. 68. Minnesota Statutes 2003 Supplement, section 63.25 245C.27, subdivision 2, is amended to read: 63.26 Subd. 2. [CONSOLIDATED FAIR HEARING FOR MALTREATMENT 63.27 DETERMINATION AND DISQUALIFICATION NOT SET ASIDE.] (a) If an 63.28 individual who is disqualified on the bases of serious or 63.29 recurring maltreatment requests a fair hearing on the 63.30 maltreatment determination under section 626.556, subdivision 63.31 10i, or 626.557, subdivision 9d, and requests a fair hearing 63.32 under this section on the disqualification, which has not been 63.33 set aside or rescinded, the scope of the fair hearing under 63.34 section 256.045 shall include the maltreatment determination and 63.35 the disqualification. 63.36 (b) A fair hearing is the only administrative appeal of the 64.1 final agency determination. The disqualified individual does 64.2 not have the right to challenge the accuracy and completeness of 64.3 data under section 13.04. 64.4 (c) This sectionsubdivision does not apply to a public 64.5 employee's appeal of a disqualification under section 245C.28, 64.6 subdivision 3. 64.7 [EFFECTIVE DATE.] This section is effective the day 64.8 following final enactment. 64.9 Sec. 69. Minnesota Statutes 2003 Supplement, section 64.10 245C.28, subdivision 1, is amended to read: 64.11 Subdivision 1. [LICENSE HOLDER.] (a) If a maltreatment 64.12 determination or a disqualification for which reconsideration 64.13 was requested and which was not set aside or rescindedis the 64.14 basis for a denial of a license under section 245A.05 or a 64.15 licensing sanction under section 245A.07, the license holder has 64.16 the right to a contested case hearing under chapter 14 and 64.17 Minnesota Rules, parts 1400.8505 to 1400.8612. 64.18 (b) The license holder must submit the appeal in accordance 64.19 with section 245A.05 or 245A.07, subdivision 3. As provided 64.20 under section 245A.08, subdivision 2a, the scope of the 64.21 consolidated contested case hearing must include the 64.22 disqualification and the licensing sanction or denial of a 64.23 license. 64.24 (c) If the disqualification was based on a determination of 64.25 substantiated serious or recurring maltreatment under section 64.26 626.556 or 626.557, the appeal must be submitted in accordance 64.27 with sections 245A.07, subdivision 3, and 626.556, subdivision 64.28 10i, or 626.557, subdivision 9d. As provided for under section 64.29 245A.08, subdivision 2a, the scope of the contested case hearing 64.30 must include the maltreatment determination, the 64.31 disqualification, and the licensing sanction or denial of a 64.32 license. In such cases, a fair hearing must not be conducted 64.33 under section 256.045. 64.34 [EFFECTIVE DATE.] This section is effective the day 64.35 following final enactment. 64.36 Sec. 70. Minnesota Statutes 2003 Supplement, section 65.1 245C.28, subdivision 2, is amended to read: 65.2 Subd. 2. [INDIVIDUAL OTHER THAN LICENSE HOLDER.] If the 65.3 basis for the commissioner's denial of a license under section 65.4 245A.05 or a licensing sanction under section 245A.07 is a 65.5 maltreatment determination or disqualification that was not set 65.6 aside or rescindedunder section 245C.22, and the disqualified 65.7 subject is an individual other than the license holder and upon 65.8 whom a background study must be conducted under section 245C.03, 65.9 the hearing of all parties may be consolidated into a single 65.10 contested case hearing upon consent of all parties and the 65.11 administrative law judge. 65.12 [EFFECTIVE DATE.] This section is effective the day 65.13 following final enactment. 65.14 Sec. 71. Minnesota Statutes 2003 Supplement, section 65.15 245C.28, subdivision 3, is amended to read: 65.16 Subd. 3. [EMPLOYEES OF PUBLIC EMPLOYER.] (a) If the 65.17 commissioner does not set aside the disqualification of an 65.18 individual who is an employee of an employer, as defined in 65.19 section 179A.03, subdivision 15, the individual may request a 65.20 contested case hearing under chapter 14. The request for a 65.21 contested case hearing must be made in writing and must be 65.22 postmarked and mailed within 30 calendar days after the employee 65.23 receives notice that the disqualification has not been set aside. 65.24 (b) If the commissioner does not set aside or rescind a 65.25 disqualification that is based on a maltreatment determination, 65.26 the scope of the contested case hearing must include the 65.27 maltreatment determination and the disqualification. In such 65.28 cases, a fair hearing must not be conducted under section 65.29 256.045. 65.30 (c) Rules adopted under this chapter may not preclude an 65.31 employee in a contested case hearing for a disqualification from 65.32 submitting evidence concerning information gathered under this 65.33 chapter. 65.34 (d) When a person has been disqualified from multiple 65.35 licensed programs and the disqualifications have not been set 65.36 aside under section 245C.22, if at least one of the 66.1 disqualifications entitles the person to a contested case 66.2 hearing under this subdivision, the scope of the contested case 66.3 hearing shall include all disqualifications from licensed 66.4 programs which were not set aside. 66.5 (e) In determining whether the disqualification should be 66.6 set aside, the administrative law judge shall consider all of 66.7 the characteristics that cause the individual to be 66.8 disqualified, including those characteristics that were not 66.9 subject to review under paragraph (b), in order to determine 66.10 whether the individual poses a risk of harm. The administrative 66.11 law judge's recommendation and the commissioner's order to set 66.12 aside a disqualification that is the subject of the hearing 66.13 constitutes a determination that the individual does not pose a 66.14 risk of harm and that the individual may provide direct contact 66.15 services in the individual program specified in the set aside. 66.16 [EFFECTIVE DATE.] This section is effective the day 66.17 following final enactment. 66.18 Sec. 72. Minnesota Statutes 2003 Supplement, section 66.19 245C.29, subdivision 2, is amended to read: 66.20 Subd. 2. [CONCLUSIVE DISQUALIFICATION DETERMINATION.] (a) 66.21 Unless otherwise specified in statute, a determination that: 66.22 (1) the information the commissioner relied upon to 66.23 disqualify an individual under section 245C.14 was correct based 66.24 on serious or recurring maltreatment; 66.25 (2) a preponderance of the evidence shows that the 66.26 individual committed an act or acts that meet the definition of 66.27 any of the crimes listed in section 245C.15; or 66.28 (3) the individual failed to make required reports under 66.29 section 626.556, subdivision 3, or 626.557, subdivision 3, is 66.30 conclusive if: 66.31 (i) the commissioner has issued a final order in an appeal 66.32 of that determination under section 245A.08, subdivision 5, or 66.33 256.045, or a court has issued a final decision; 66.34 (ii) the individual did not request reconsideration of the 66.35 disqualification under section 245C.21; or 66.36 (iii) the individual did not request a hearing on the 67.1 disqualification under section 256.045 or chapter 14. 67.2 (b) When a licensing action under section 245A.05, 245A.06, 67.3 or 245A.07 is based on the disqualification of an individual in 67.4 connection with a license to provide family child care, foster 67.5 care for children in the provider's own home, or foster care 67.6 services for adults in the provider's own home, that 67.7 disqualification shall be conclusive for purposes of the 67.8 licensing action if a request for reconsideration was not 67.9 submitted within 30 calendar days of the individual's receipt of 67.10 the notice of disqualification. 67.11 (c) If a determination that the information relied upon to 67.12 disqualify an individual was correct and is conclusive under 67.13 this section, and the individual is subsequently disqualified 67.14 under section 245C.15, the individual has a right to request 67.15 reconsideration on the risk of harm under section 245C.21. 67.16 Subsequent determinations regarding the risk of harm shall be 67.17 made according to section 245C.22 and are not subject to another 67.18 hearing under section 256.045 or chapter 14. 67.19 [EFFECTIVE DATE.] This section is effective the day 67.20 following final enactment. 67.21 Sec. 73. Minnesota Statutes 2002, section 252.28, 67.22 subdivision 1, is amended to read: 67.23 Subdivision 1. [DETERMINATIONS; REDETERMINATIONS.] In 67.24 conjunction with the appropriate county boards, the commissioner 67.25 of human services shall determine, and shall redetermine at 67.26 least every four years, the need, anticipated growth or decline 67.27 in need until the next anticipated redetermination, location, 67.28 size, and program of public and private day training and 67.29 habilitation services for persons with mental retardation or 67.30 related conditions. This subdivision does not apply to 67.31 semi-independent living services and residential-based 67.32 habilitation services provided to four or fewer persons at a 67.33 single site funded as home and community-based services. A 67.34 determination of need shall not be required for a change in 67.35 ownership. 67.36 [EFFECTIVE DATE.] This section is effective the day 68.1 following final enactment. 68.2 Sec. 74. Minnesota Statutes 2003 Supplement, section 68.3 256.045, subdivision 3, is amended to read: 68.4 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 68.5 hearings are available for the following: (1) any person 68.6 applying for, receiving or having received public assistance, 68.7 medical care, or a program of social services granted by the 68.8 state agency or a county agency or the federal Food Stamp Act 68.9 whose application for assistance is denied, not acted upon with 68.10 reasonable promptness, or whose assistance is suspended, 68.11 reduced, terminated, or claimed to have been incorrectly paid; 68.12 (2) any patient or relative aggrieved by an order of the 68.13 commissioner under section 252.27; (3) a party aggrieved by a 68.14 ruling of a prepaid health plan; (4) except as provided under 68.15 chapter 245C, any individual or facility determined by a lead 68.16 agency to have maltreated a vulnerable adult under section 68.17 626.557 after they have exercised their right to administrative 68.18 reconsideration under section 626.557; (5) any person whose 68.19 claim for foster care payment according to a placement of the 68.20 child resulting from a child protection assessment under section 68.21 626.556 is denied or not acted upon with reasonable promptness, 68.22 regardless of funding source; (6) any person to whom a right of 68.23 appeal according to this section is given by other provision of 68.24 law; (7) an applicant aggrieved by an adverse decision to an 68.25 application for a hardship waiver under section 256B.15; (8) 68.26 except as provided under chapter 245A, an individual or facility 68.27 determined to have maltreated a minor under section 626.556, 68.28 after the individual or facility has exercised the right to 68.29 administrative reconsideration under section 626.556; or (9) 68.30 except as provided under chapter 245C, an individual 68.31 disqualified under sections 245C.14 and 245C.15, on the basis of 68.32 serious or recurring maltreatment; a preponderance of the 68.33 evidence that the individual has committed an act or acts that 68.34 meet the definition of any of the crimes listed in section 68.35 245C.15, subdivisions 1 to 4; or for failing to make reports 68.36 required under section 626.556, subdivision 3, or 626.557, 69.1 subdivision 3. Hearings regarding a maltreatment determination 69.2 under clause (4) or (8) and a disqualification under this clause 69.3 in which the basis for a disqualification is serious or 69.4 recurring maltreatment, which has not been set aside or69.5 rescindedunder sections 245C.22 and 245C.23, shall be 69.6 consolidated into a single fair hearing. In such cases, the 69.7 scope of review by the human services referee shall include both 69.8 the maltreatment determination and the disqualification. The 69.9 failure to exercise the right to an administrative 69.10 reconsideration shall not be a bar to a hearing under this 69.11 section if federal law provides an individual the right to a 69.12 hearing to dispute a finding of maltreatment. Individuals and 69.13 organizations specified in this section may contest the 69.14 specified action, decision, or final disposition before the 69.15 state agency by submitting a written request for a hearing to 69.16 the state agency within 30 days after receiving written notice 69.17 of the action, decision, or final disposition, or within 90 days 69.18 of such written notice if the applicant, recipient, patient, or 69.19 relative shows good cause why the request was not submitted 69.20 within the 30-day time limit. 69.21 The hearing for an individual or facility under clause (4), 69.22 (8), or (9) is the only administrative appeal to the final 69.23 agency determination specifically, including a challenge to the 69.24 accuracy and completeness of data under section 13.04. Hearings 69.25 requested under clause (4) apply only to incidents of 69.26 maltreatment that occur on or after October 1, 1995. Hearings 69.27 requested by nursing assistants in nursing homes alleged to have 69.28 maltreated a resident prior to October 1, 1995, shall be held as 69.29 a contested case proceeding under the provisions of chapter 14. 69.30 Hearings requested under clause (8) apply only to incidents of 69.31 maltreatment that occur on or after July 1, 1997. A hearing for 69.32 an individual or facility under clause (8) is only available 69.33 when there is no juvenile court or adult criminal action 69.34 pending. If such action is filed in either court while an 69.35 administrative review is pending, the administrative review must 69.36 be suspended until the judicial actions are completed. If the 70.1 juvenile court action or criminal charge is dismissed or the 70.2 criminal action overturned, the matter may be considered in an 70.3 administrative hearing. 70.4 For purposes of this section, bargaining unit grievance 70.5 procedures are not an administrative appeal. 70.6 The scope of hearings involving claims to foster care 70.7 payments under clause (5) shall be limited to the issue of 70.8 whether the county is legally responsible for a child's 70.9 placement under court order or voluntary placement agreement 70.10 and, if so, the correct amount of foster care payment to be made 70.11 on the child's behalf and shall not include review of the 70.12 propriety of the county's child protection determination or 70.13 child placement decision. 70.14 (b) A vendor of medical care as defined in section 256B.02, 70.15 subdivision 7, or a vendor under contract with a county agency 70.16 to provide social services is not a party and may not request a 70.17 hearing under this section, except if assisting a recipient as 70.18 provided in subdivision 4. 70.19 (c) An applicant or recipient is not entitled to receive 70.20 social services beyond the services included in the amended 70.21 community social services plan. 70.22 (d) The commissioner may summarily affirm the county or 70.23 state agency's proposed action without a hearing when the sole 70.24 issue is an automatic change due to a change in state or federal 70.25 law. 70.26 [EFFECTIVE DATE.] This section is effective the day 70.27 following final enactment. 70.28 Sec. 75. Minnesota Statutes 2003 Supplement, section 70.29 256.045, subdivision 3b, is amended to read: 70.30 Subd. 3b. [STANDARD OF EVIDENCE FOR MALTREATMENT AND 70.31 DISQUALIFICATION HEARINGS.] (a) The state human services referee 70.32 shall determine that maltreatment has occurred if a 70.33 preponderance of evidence exists to support the final 70.34 disposition under sections 626.556 and 626.557. For purposes of 70.35 hearings regarding disqualification, the state human services 70.36 referee shall affirm the proposed disqualification in an appeal 71.1 under subdivision 3, paragraph (a), clause (9), if a 71.2 preponderance of the evidence shows the individual has: 71.3 (1) committed maltreatment under section 626.556 or 71.4 626.557, which is serious or recurring; 71.5 (2) committed an act or acts meeting the definition of any 71.6 of the crimes listed in section 245C.15, subdivisions 1 to 4; or 71.7 (3) failed to make required reports under section 626.556 71.8 or 626.557, for incidents in which the final disposition under 71.9 section 626.556 or 626.557 was substantiated maltreatment that 71.10 was serious or recurring. 71.11 (b) If the disqualification is affirmed, the state human 71.12 services referee shall determine whether the individual poses a 71.13 risk of harm in accordance with the requirements of section 71.14 245C.16 ., and whether the disqualification should be set aside 71.15 or not set aside. In determining whether the disqualification 71.16 should be set aside, the human services referee shall consider 71.17 all of the characteristics that cause the individual to be 71.18 disqualified, including those characteristics that were not 71.19 subject to review under paragraph (a), in order to determine 71.20 whether the individual poses a risk of harm. A decision to set 71.21 aside a disqualification that is the subject of the hearing 71.22 constitutes a determination that the individual does not pose a 71.23 risk of harm and that the individual may provide direct contact 71.24 services in the individual program specified in the set aside. 71.25 If a determination that the information relied upon to 71.26 disqualify an individual was correct and is conclusive under 71.27 section 245C.29, and the individual is subsequently disqualified 71.28 under section 245C.14, the individual has a right to again 71.29 request reconsideration on the risk of harm under section 71.30 245C.21. Subsequent determinations regarding risk of harm are 71.31 not subject to another hearing under this section. 71.32 (c) The state human services referee shall recommend an 71.33 order to the commissioner of health, education, or human 71.34 services, as applicable, who shall issue a final order. The 71.35 commissioner shall affirm, reverse, or modify the final 71.36 disposition. Any order of the commissioner issued in accordance 72.1 with this subdivision is conclusive upon the parties unless 72.2 appeal is taken in the manner provided in subdivision 7. In any 72.3 licensing appeal under chapters 245A and 245C and sections 72.4 144.50 to 144.58 and 144A.02 to 144A.46, the commissioner's 72.5 determination as to maltreatment is conclusive, as provided 72.6 under section 245C.29. 72.7 [EFFECTIVE DATE.] This section is effective the day 72.8 following final enactment. 72.9 Sec. 76. Minnesota Statutes 2003 Supplement, section 72.10 626.556, subdivision 10i, is amended to read: 72.11 Subd. 10i. [ADMINISTRATIVE RECONSIDERATION OF FINAL 72.12 DETERMINATION OF MALTREATMENT AND DISQUALIFICATION BASED ON 72.13 SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 72.14 provided under paragraph (e), an individual or facility that the 72.15 commissioner of human services, a local social service agency, 72.16 or the commissioner of education determines has maltreated a 72.17 child, an interested person acting on behalf of the child, 72.18 regardless of the determination, who contests the investigating 72.19 agency's final determination regarding maltreatment, may request 72.20 the investigating agency to reconsider its final determination 72.21 regarding maltreatment. The request for reconsideration must be 72.22 submitted in writing to the investigating agency within 15 72.23 calendar days after receipt of notice of the final determination 72.24 regarding maltreatment or, if the request is made by an 72.25 interested person who is not entitled to notice, within 15 days 72.26 after receipt of the notice by the parent or guardian of the 72.27 child. Effective January 1, 2002, an individual who was 72.28 determined to have maltreated a child under this section and who 72.29 was disqualified on the basis of serious or recurring 72.30 maltreatment under sections 245C.14 and 245C.15, may request 72.31 reconsideration of the maltreatment determination and the 72.32 disqualification. The request for reconsideration of the 72.33 maltreatment determination and the disqualification must be 72.34 submitted within 30 calendar days of the individual's receipt of 72.35 the notice of disqualification under sections 245C.16 and 72.36 245C.17. 73.1 (b) Except as provided under paragraphs (e) and (f), if the 73.2 investigating agency denies the request or fails to act upon the 73.3 request within 15 calendar days after receiving the request for 73.4 reconsideration, the person or facility entitled to a fair 73.5 hearing under section 256.045 may submit to the commissioner of 73.6 human services or the commissioner of education a written 73.7 request for a hearing under that section. Section 256.045 also 73.8 governs hearings requested to contest a final determination of 73.9 the commissioner of education. For reports involving 73.10 maltreatment of a child in a facility, an interested person 73.11 acting on behalf of the child may request a review by the Child 73.12 Maltreatment Review Panel under section 256.022 if the 73.13 investigating agency denies the request or fails to act upon the 73.14 request or if the interested person contests a reconsidered 73.15 determination. The investigating agency shall notify persons 73.16 who request reconsideration of their rights under this 73.17 paragraph. The request must be submitted in writing to the 73.18 review panel and a copy sent to the investigating agency within 73.19 30 calendar days of receipt of notice of a denial of a request 73.20 for reconsideration or of a reconsidered determination. The 73.21 request must specifically identify the aspects of the agency 73.22 determination with which the person is dissatisfied. 73.23 (c) If, as a result of a reconsideration or review, the 73.24 investigating agency changes the final determination of 73.25 maltreatment, that agency shall notify the parties specified in 73.26 subdivisions 10b, 10d, and 10f. 73.27 (d) Except as provided under paragraph (f), if an 73.28 individual or facility contests the investigating agency's final 73.29 determination regarding maltreatment by requesting a fair 73.30 hearing under section 256.045, the commissioner of human 73.31 services shall assure that the hearing is conducted and a 73.32 decision is reached within 90 days of receipt of the request for 73.33 a hearing. The time for action on the decision may be extended 73.34 for as many days as the hearing is postponed or the record is 73.35 held open for the benefit of either party. 73.36 (e) Effective January 1, 2002, if an individual was 74.1 disqualified under sections 245C.14 and 245C.15, on the basis of 74.2 a determination of maltreatment, which was serious or recurring, 74.3 and the individual has requested reconsideration of the 74.4 maltreatment determination under paragraph (a) and requested 74.5 reconsideration of the disqualification under sections 245C.21 74.6 to 245C.27, reconsideration of the maltreatment determination 74.7 and reconsideration of the disqualification shall be 74.8 consolidated into a single reconsideration. If reconsideration 74.9 of the maltreatment determination is denied or the 74.10 disqualification is not set aside or rescindedunder sections 74.11 245C.21 to 245C.27, the individual may request a fair hearing 74.12 under section 256.045. If an individual requests a fair hearing 74.13 on the maltreatment determination and the disqualification, the 74.14 scope of the fair hearing shall include both the maltreatment 74.15 determination and the disqualification. 74.16 (f) Effective January 1, 2002, if a maltreatment 74.17 determination or a disqualification based on serious or 74.18 recurring maltreatment is the basis for a denial of a license 74.19 under section 245A.05 or a licensing sanction under section 74.20 245A.07, the license holder has the right to a contested case 74.21 hearing under chapter 14 and Minnesota Rules, parts 1400.851074.22 1400.8505 to 1400.8612 and successor rules. As provided for 74.23 under section 245A.08, subdivision 2a, the scope of the 74.24 contested case hearing shall include the maltreatment 74.25 determination, disqualification, and licensing sanction or 74.26 denial of a license. In such cases, a fair hearing regarding 74.27 the maltreatment determination shall not be conducted under 74.28 paragraph (b). If the disqualified subject is an individual 74.29 other than the license holder and upon whom a background study 74.30 must be conducted under chapter 245C, the hearings of all 74.31 parties may be consolidated into a single contested case hearing 74.32 upon consent of all parties and the administrative law judge. 74.33 (g) For purposes of this subdivision, "interested person 74.34 acting on behalf of the child" means a parent or legal guardian; 74.35 stepparent; grandparent; guardian ad litem; adult stepbrother, 74.36 stepsister, or sibling; or adult aunt or uncle; unless the 75.1 person has been determined to be the perpetrator of the 75.2 maltreatment. 75.3 [EFFECTIVE DATE.] This section is effective the day 75.4 following final enactment. 75.5 Sec. 77. Minnesota Statutes 2003 Supplement, section 75.6 626.557, subdivision 9d, is amended to read: 75.7 Subd. 9d. [ADMINISTRATIVE RECONSIDERATION OF FINAL 75.8 DISPOSITION OF MALTREATMENT AND DISQUALIFICATION BASED ON 75.9 SERIOUS OR RECURRING MALTREATMENT; REVIEW PANEL.] (a) Except as 75.10 provided under paragraph (e), any individual or facility which a 75.11 lead agency determines has maltreated a vulnerable adult, or the 75.12 vulnerable adult or an interested person acting on behalf of the 75.13 vulnerable adult, regardless of the lead agency's determination, 75.14 who contests the lead agency's final disposition of an 75.15 allegation of maltreatment, may request the lead agency to 75.16 reconsider its final disposition. The request for 75.17 reconsideration must be submitted in writing to the lead agency 75.18 within 15 calendar days after receipt of notice of final 75.19 disposition or, if the request is made by an interested person 75.20 who is not entitled to notice, within 15 days after receipt of 75.21 the notice by the vulnerable adult or the vulnerable adult's 75.22 legal guardian. An individual who was determined to have 75.23 maltreated a vulnerable adult under this section and who was 75.24 disqualified on the basis of serious or recurring maltreatment 75.25 under sections 245C.14 and 245C.15, may request reconsideration 75.26 of the maltreatment determination and the disqualification. The 75.27 request for reconsideration of the maltreatment determination 75.28 and the disqualification must be submitted within 30 calendar 75.29 days of the individual's receipt of the notice of 75.30 disqualification under sections 245C.16 and 245C.17. 75.31 (b) Except as provided under paragraphs (e) and (f), if the 75.32 lead agency denies the request or fails to act upon the request 75.33 within 15 calendar days after receiving the request for 75.34 reconsideration, the person or facility entitled to a fair 75.35 hearing under section 256.045, may submit to the commissioner of 75.36 human services a written request for a hearing under that 76.1 statute. The vulnerable adult, or an interested person acting 76.2 on behalf of the vulnerable adult, may request a review by the 76.3 Vulnerable Adult Maltreatment Review Panel under section 256.021 76.4 if the lead agency denies the request or fails to act upon the 76.5 request, or if the vulnerable adult or interested person 76.6 contests a reconsidered disposition. The lead agency shall 76.7 notify persons who request reconsideration of their rights under 76.8 this paragraph. The request must be submitted in writing to the 76.9 review panel and a copy sent to the lead agency within 30 76.10 calendar days of receipt of notice of a denial of a request for 76.11 reconsideration or of a reconsidered disposition. The request 76.12 must specifically identify the aspects of the agency 76.13 determination with which the person is dissatisfied. 76.14 (c) If, as a result of a reconsideration or review, the 76.15 lead agency changes the final disposition, it shall notify the 76.16 parties specified in subdivision 9c, paragraph (d). 76.17 (d) For purposes of this subdivision, "interested person 76.18 acting on behalf of the vulnerable adult" means a person 76.19 designated in writing by the vulnerable adult to act on behalf 76.20 of the vulnerable adult, or a legal guardian or conservator or 76.21 other legal representative, a proxy or health care agent 76.22 appointed under chapter 145B or 145C, or an individual who is 76.23 related to the vulnerable adult, as defined in section 245A.02, 76.24 subdivision 13. 76.25 (e) If an individual was disqualified under sections 76.26 245C.14 and 245C.15, on the basis of a determination of 76.27 maltreatment, which was serious or recurring, and the individual 76.28 has requested reconsideration of the maltreatment determination 76.29 under paragraph (a) and reconsideration of the disqualification 76.30 under sections 245C.21 to 245C.27, reconsideration of the 76.31 maltreatment determination and requested reconsideration of the 76.32 disqualification shall be consolidated into a single 76.33 reconsideration. If reconsideration of the maltreatment 76.34 determination is denied or if the disqualification is not set 76.35 aside or rescindedunder sections 245C.21 to 245C.27, the 76.36 individual may request a fair hearing under section 256.045. If 77.1 an individual requests a fair hearing on the maltreatment 77.2 determination and the disqualification, the scope of the fair 77.3 hearing shall include both the maltreatment determination and 77.4 the disqualification. 77.5 (f) If a maltreatment determination or a disqualification 77.6 based on serious or recurring maltreatment is the basis for a 77.7 denial of a license under section 245A.05 or a licensing 77.8 sanction under section 245A.07, the license holder has the right 77.9 to a contested case hearing under chapter 14 and Minnesota 77.10 Rules, parts 1400.85101400.8505 to 1400.8612 and successor77.11 rules. As provided for under section 245A.08, the scope of the 77.12 contested case hearing shall include the maltreatment 77.13 determination, disqualification, and licensing sanction or 77.14 denial of a license. In such cases, a fair hearing shall not be 77.15 conducted under paragraph (b). If the disqualified subject is 77.16 an individual other than the license holder and upon whom a 77.17 background study must be conducted under chapter 245C, the 77.18 hearings of all parties may be consolidated into a single 77.19 contested case hearing upon consent of all parties and the 77.20 administrative law judge. 77.21 (g) Until August 1, 2002, an individual or facility that 77.22 was determined by the commissioner of human services or the 77.23 commissioner of health to be responsible for neglect under 77.24 section 626.5572, subdivision 17, after October 1, 1995, and 77.25 before August 1, 2001, that believes that the finding of neglect 77.26 does not meet an amended definition of neglect may request a 77.27 reconsideration of the determination of neglect. The 77.28 commissioner of human services or the commissioner of health 77.29 shall mail a notice to the last known address of individuals who 77.30 are eligible to seek this reconsideration. The request for 77.31 reconsideration must state how the established findings no 77.32 longer meet the elements of the definition of neglect. The 77.33 commissioner shall review the request for reconsideration and 77.34 make a determination within 15 calendar days. The 77.35 commissioner's decision on this reconsideration is the final 77.36 agency action. 78.1 (1) For purposes of compliance with the data destruction 78.2 schedule under subdivision 12b, paragraph (d), when a finding of 78.3 substantiated maltreatment has been changed as a result of a 78.4 reconsideration under this paragraph, the date of the original 78.5 finding of a substantiated maltreatment must be used to 78.6 calculate the destruction date. 78.7 (2) For purposes of any background studies under chapter 78.8 245C, when a determination of substantiated maltreatment has 78.9 been changed as a result of a reconsideration under this 78.10 paragraph, any prior disqualification of the individual under 78.11 chapter 245C that was based on this determination of 78.12 maltreatment shall be rescinded, and for future background 78.13 studies under chapter 245C the commissioner must not use the 78.14 previous determination of substantiated maltreatment as a basis 78.15 for disqualification or as a basis for referring the 78.16 individual's maltreatment history to a health-related licensing 78.17 board under section 245C.31. 78.18 [EFFECTIVE DATE.] This section is effective the day 78.19 following final enactment. 78.20 Sec. 78. [DIRECTION TO COMMISSIONER; REPORT.] 78.21 The commissioner of human services shall report on the 78.22 number of adult foster care licenses, family adult day services 78.23 licenses, combined adult foster care and family adult day 78.24 services, and adult day services center licenses and their 78.25 capacities with changes in the number of licenses and capacities 78.26 from August 1, 2004, to August 1, 2006. The commissioner shall 78.27 provide this report to the chairs of the senate and house 78.28 committees with jurisdiction over health and human services 78.29 policy by September 15, 2006. 78.30 Sec. 79. [REVISOR'S INSTRUCTION.] 78.31 The revisor of statutes shall insert the phrase "or adult 78.32 day services" after the phrase "adult day care," and the phrase 78.33 "or adult day services center" after "adult day care center," 78.34 wherever it appears in Minnesota Rules, parts 9555.9600 to 78.35 9555.9730, or the headnotes to the rule parts. 78.36 Sec. 80. [REPEALER.] 79.1 Minnesota Statutes 2003 Supplement, section 245C.02, 79.2 subdivision 17; and Minnesota Rules, parts 9525.1600; 9543.0040, 79.3 subpart 3; 9543.1000; 9543.1010; 9543.1020; 9543.1030; 79.4 9543.1040; 9543.1050; 9543.1060, are repealed. 79.5 ARTICLE 2 79.6 CORRECTIONS 79.7 Section 1. Minnesota Statutes 2003 Supplement, section 79.8 241.021, subdivision 6, is amended to read: 79.9 Subd. 6. [BACKGROUND STUDIES.] (a) The commissioner of 79.10 corrections is authorized to do background studies on personnel 79.11 employed by any facility serving children or youth that is 79.12 licensed under this section. The commissioner of corrections 79.13 shall contract with the commissioner of human services to 79.14 conduct background studies of individuals providing services in 79.15 secure and nonsecure residential facilities and detention 79.16 facilities who have direct contact, as defined under section 79.17 245C.02, subdivision 11, with persons served in the facilities. 79.18 A disqualification of an individual in this section shall 79.19 disqualify the individual from positions allowing direct contact79.20 or access to persons and residents receiving services in79.21 programs licensed by the Departments of Health and Human79.22 Servicesas provided in chapter 245C. 79.23 (b) A clerk or administrator of any court, the Bureau of 79.24 Criminal Apprehension, a prosecuting attorney, a county sheriff, 79.25 or a chief of a local police department, shall assist in these 79.26 studies by providing to the commissioner of human services, or 79.27 the commissioner's representative, all criminal conviction data 79.28 available from local, state, and national criminal history 79.29 record repositories, including the criminal justice data 79.30 communications network, pertaining to the following individuals: 79.31 applicants, operators, all persons living in the household, and 79.32 all staff of any facility subject to background studies under 79.33 this subdivision. 79.34 (c) The Department of Human Services shall conduct the 79.35 background studies required by paragraph (a) in compliance with 79.36 the provisions of chapter 245C. For the purpose of this 80.1 subdivision, the term "secure and nonsecure residential facility 80.2 and detention facility" shall include programs licensed or 80.3 certified under subdivision 2. The Department of Human Services 80.4 shall provide necessary forms and instructions, shall conduct 80.5 the necessary background studies of individuals, and shall 80.6 provide notification of the results of the studies to the 80.7 facilities, individuals, and the commissioner of corrections. 80.8 Individuals shall be disqualified under the provisions of 80.9 chapter 245C. 80.10 If an individual is disqualified, the Department of Human 80.11 Services shall notify the facility and the individual and shall 80.12 inform the individual of the right to request a reconsideration 80.13 of the disqualification by submitting the request to the 80.14 Department of Corrections. 80.15 (d) The commissioner of corrections shall review and decide 80.16 reconsideration requests, including the granting of variances, 80.17 in accordance with the procedures and criteria contained in 80.18 chapter 245C. The commissioner's decision shall be provided to 80.19 the individual and to the Department of Human Services. The 80.20 commissioner's decision to grant or deny a reconsideration of 80.21 disqualification is the final administrative agency action. 80.22 (e) Facilities described in paragraph (a) shall be 80.23 responsible for cooperating with the departments in implementing 80.24 the provisions of this subdivision. The responsibilities 80.25 imposed on applicants and licensees under chapters 245A and 245C 80.26 shall apply to these facilities. The provisions of sections80.27 245C.03, subdivision 3, 245C.04, subdivision 4, paragraph (b),80.28 and 245C.10, subdivision 2, shall apply to applicants,80.29 licensees, and individuals.80.30 ARTICLE 3 80.31 MISCELLANEOUS 80.32 Section 1. Minnesota Statutes 2003 Supplement, section 80.33 245.4874, is amended to read: 80.34 245.4874 [DUTIES OF COUNTY BOARD.] 80.35 The county board in each county shall use its share of 80.36 mental health and Community Social Services Act funds allocated 81.1 by the commissioner according to a biennial children's mental 81.2 health component of the community social services plan that is 81.3 approved by the commissioner. The county board must: 81.4 (1) develop a system of affordable and locally available 81.5 children's mental health services according to sections 245.487 81.6 to 245.4887; 81.7 (2) establish a mechanism providing for interagency 81.8 coordination as specified in section 245.4875, subdivision 6; 81.9 (3) develop a biennial children's mental health component 81.10 of the community social services plan which considers the 81.11 assessment of unmet needs in the county as reported by the local 81.12 children's mental health advisory council under section 81.13 245.4875, subdivision 5, paragraph (b), clause (3). The county 81.14 shall provide, upon request of the local children's mental 81.15 health advisory council, readily available data to assist in the 81.16 determination of unmet needs; 81.17 (4) assure that parents and providers in the county receive 81.18 information about how to gain access to services provided 81.19 according to sections 245.487 to 245.4887; 81.20 (5) coordinate the delivery of children's mental health 81.21 services with services provided by social services, education, 81.22 corrections, health, and vocational agencies to improve the 81.23 availability of mental health services to children and the 81.24 cost-effectiveness of their delivery; 81.25 (6) assure that mental health services delivered according 81.26 to sections 245.487 to 245.4887 are delivered expeditiously and 81.27 are appropriate to the child's diagnostic assessment and 81.28 individual treatment plan; 81.29 (7) provide the community with information about predictors 81.30 and symptoms of emotional disturbances and how to access 81.31 children's mental health services according to sections 245.4877 81.32 and 245.4878; 81.33 (8) provide for case management services to each child with 81.34 severe emotional disturbance according to sections 245.486; 81.35 245.4871, subdivisions 3 and 4; and 245.4881, subdivisions 1, 3, 81.36 and 5; 82.1 (9) provide for screening of each child under section 82.2 245.4885 upon admission to a residential treatment facility, 82.3 acute care hospital inpatient treatment, or informal admission 82.4 to a regional treatment center; 82.5 (10) prudently administer grants and purchase-of-service 82.6 contracts that the county board determines are necessary to 82.7 fulfill its responsibilities under sections 245.487 to 245.4887; 82.8 (11) assure that mental health professionals, mental health 82.9 practitioners, and case managers employed by or under contract 82.10 to the county to provide mental health services are qualified 82.11 under section 245.4871; 82.12 (12) assure that children's mental health services are 82.13 coordinated with adult mental health services specified in 82.14 sections 245.461 to 245.486 so that a continuum of mental health 82.15 services is available to serve persons with mental illness, 82.16 regardless of the person's age; 82.17 (13) assure that culturally informed mental health 82.18 consultants are used as necessary to assist the county board in 82.19 assessing and providing appropriate treatment for children of 82.20 cultural or racial minority heritage; and 82.21 (14) consistent with section 245.486, arrange for or 82.22 provide a children's mental health screening to a child 82.23 receiving child protective services or a child in out-of-home 82.24 placement, a child for whom parental rights have been 82.25 terminated, a child found to be delinquent, and a child found to 82.26 have committed a juvenile petty offense for the third or 82.27 subsequent time, unless a screening has been performed within 82.28 the previous 180 days, or the child is currently under the care 82.29 of a mental health professional. The court or county agency 82.30 must notify a parent or guardian whose parental rights have not 82.31 been terminated of the potential mental health screening and the 82.32 option to prevent the screening by notifying the court or county 82.33 agency in writing. The screening shall be conducted with a 82.34 screening instrument approved by the commissioner of human 82.35 services according to criteria that are updated and issued 82.36 annually to ensure that approved screening instruments are valid 83.1 and useful for child welfare and juvenile justice populations, 83.2 and shall be conducted by a mental health practitioner as 83.3 defined in section 245.4871, subdivision 26, or a probation 83.4 officer or local social services agency staff person who is 83.5 trained in the use of the screening instrument. Training in the 83.6 use of the instrument shall include training in the 83.7 administration of the instrument, the interpretation of its 83.8 validity given the child's current circumstances, the state and 83.9 federal data practices laws and confidentiality standards, the 83.10 parental consent requirement, and providing respect for families 83.11 and cultural values. If the screen indicates a need for 83.12 assessment, the child's family, or if the family lacks mental 83.13 health insurance, the local social services agency, in 83.14 consultation with the child's family, shall have conducted a 83.15 diagnostic assessment, including a functional assessment, as 83.16 defined in section 245.4871. The administration of the 83.17 screening shall safeguard the privacy of children receiving the 83.18 screening and their families and shall comply with the Minnesota 83.19 Government Data Practices Act, chapter 13, and the federal 83.20 Health Insurance Portability and Accountability Act of 1996, 83.21 Public Law 104-191. Screening results shall be considered 83.22 private data and the commissioner shall not collect individual 83.23 screening results. 83.24 Sec. 2. Minnesota Statutes 2002, section 245.4881, 83.25 subdivision 1, is amended to read: 83.26 Subdivision 1. [AVAILABILITY OF CASE MANAGEMENT SERVICES.] 83.27 (a) By April 1, 1992,The county board shall provide case 83.28 management services for each child with severe emotional 83.29 disturbance who is a resident of the county and the child's 83.30 family who request or consent to the services. Case management 83.31 services may be continued to be provided for a child with a 83.32 serious emotional disturbance who is over the age of 18 83.33 consistent with section 245.4875, subdivision 8. Staffing 83.34 ratios must be sufficient to serve the needs of the clients. 83.35 The case manager must meet the requirements in section 245.4871, 83.36 subdivision 4. 84.1 (b) Except as permitted by law and the commissioner under 84.2 demonstration projects, case management services provided to 84.3 children with severe emotional disturbance eligible for medical 84.4 assistance must be billed to the medical assistance program 84.5 under sections 256B.02, subdivision 8, and 256B.0625. 84.6 (c) Case management services are eligible for reimbursement 84.7 under the medical assistance program. Costs of mentoring, 84.8 supervision, and continuing education may be included in the 84.9 reimbursement rate methodology used for case management services 84.10 under the medical assistance program. 84.11 [EFFECTIVE DATE.] This section is effective July 1, 2004. 84.12 Sec. 3. Minnesota Statutes 2002, section 256.01, is 84.13 amended by adding a subdivision to read: 84.14 Subd. 21. [HOMELESS SERVICES.] The commissioner of human 84.15 services may contract directly with nonprofit organizations 84.16 providing homeless services in two or more counties. 84.17 [EFFECTIVE DATE.] This section is effective immediately 84.18 following final enactment. 84.19 Sec. 4. Minnesota Statutes 2003 Supplement, section 84.20 256B.0596, is amended to read: 84.21 256B.0596 [MENTAL HEALTH CASE MANAGEMENT.] 84.22 Counties shall contract with eligible providers willing to 84.23 provide mental health case management services under section 84.24 256B.0625, subdivision 20. In order to be eligible, in addition 84.25 to general provider requirements under this chapter, the 84.26 provider must: 84.27 (1) be willing to provide the mental health case management 84.28 services; and 84.29 (2) have a minimum of at least one contact with the client 84.30 per week. This section is not intended to limit the ability of 84.31 a county to provide its own mental health case management 84.32 services. 84.33 Sec. 5. Minnesota Statutes 2002, section 256F.10, 84.34 subdivision 5, is amended to read: 84.35 Subd. 5. [CASE MANAGERS.] Case managers are individuals 84.36 employed by and authorized by the certified child welfare 85.1 targeted case management provider to provide case management 85.2 services under section 256B.094 and this section. A case 85.3 manager must have: 85.4 (1) skills in identifying and assessing a wide range of 85.5 children's needs; 85.6 (2) knowledge of local child welfare and a variety of 85.7 community resources and effective use of those resources for the 85.8 benefit of the child; and 85.9 (3) a bachelor's degree in social work, psychology, 85.10 sociology, or a closely related field from an accredited 85.11 four-year college or university; or a bachelor's degree from an 85.12 accredited four-year college or university in a field other than 85.13 social work, psychology, sociology or a closely related field, 85.14 plus one year of experience in the delivery of social services 85.15 to children as a supervised social worker in a public or private 85.16 social services agency; or 85.17 (4) been authorized to serve as a tribal child welfare case 85.18 manager certified by a federally recognized tribal government 85.19 within the state of Minnesota, pursuant to section 256B.02, 85.20 subdivision 7, paragraph (c), and determined as meeting 85.21 applicable standards. 85.22 Sec. 6. Minnesota Statutes 2002, section 260C.212, 85.23 subdivision 5, is amended to read: 85.24 Subd. 5. [RELATIVE SEARCH; NATURE.] (a) In implementing 85.25 the requirement that the responsible social services agency must 85.26 consider placement with a relative under subdivision 2 as soon85.27 as possiblewithout delay after identifying the need for 85.28 placement of the child in foster care, the responsible social 85.29 services agency shall identify relatives of the child and notify 85.30 them of the need for a foster care home for the child and of the 85.31 possibility of the need for a permanent out-of-home placement of 85.32 the child. The relative search required by this section shall 85.33 be reasonable and comprehensive in scope and may last up to six 85.34 months or until a fit and willing relative is 85.35 identified. Relatives should be notified that a decision not to85.36 be a placement resource at the beginning of the case may affect86.1 the relative being considered for placement of the child with86.2 that relative laterThe relative search required by this section 86.3 shall include both maternal relatives of the child and paternal 86.4 relatives of the child, if paternity is adjudicated. The 86.5 relatives must be notified that they must keep the responsible 86.6 social services agency informed of their current address in 86.7 order to receive notice that a permanent placement is being 86.8 sought for the child. A relative who fails to provide a current 86.9 address to the responsible social services agency forfeits the 86.10 right to notice of the possibility of permanent placement. A 86.11 decision by a relative not to be a placement resource at the 86.12 beginning of the case shall not affect whether the relative is 86.13 considered for placement of the child with that relative later. 86.14 (b) A responsible social services agency may disclose 86.15 private or confidential data, as defined in section 13.02, to 86.16 relatives of the child for the purpose of locating a suitable 86.17 placement. The agency shall disclose only data that is 86.18 necessary to facilitate possible placement with relatives. If 86.19 the child's parent refuses to give the responsible social 86.20 services agency information sufficient to identify the maternal 86.21 and paternal relatives of the child, the agency shall determine86.22 whether the parent's refusal is in the child's best interests.86.23 If the agency determines the parent's refusal is not in the86.24 child's best interests, the agency shall file a petition under86.25 section 260C.141, and shallask the juvenile court to order the 86.26 parent to provide the necessary information. If a parent makes 86.27 an explicit request that relatives or a specific relative not be 86.28 contacted or considered for placement, the agency shall bring 86.29 the parent's request to the attention of the court to determine 86.30 whether the parent's request is consistent with the best 86.31 interests of the child and the agency shall not contact 86.32 relatives or a specific relative unless authorized to do so by 86.33 the juvenile court. 86.34 (c) When the placing agency determines that a permanent 86.35 placement hearing is necessary because there is a likelihood 86.36 that the child will not return to a parent's care, the agency 87.1 may send the notice provided in paragraph (d), may ask the court 87.2 to modify the requirements of the agency under this paragraph, 87.3 or may ask the court to completely relieve the agency of the 87.4 requirements of this paragraph. The relative notification 87.5 requirements of this paragraph do not apply when the child is 87.6 placed with an appropriate relative or a foster home that has 87.7 committed to being the permanent legal placement for the child 87.8 and the agency approves of that foster home for permanent 87.9 placement of the child. The actions ordered by the court under 87.10 this section must be consistent with the best interests, safety, 87.11 and welfare of the child. 87.12 (d) Unless required under the Indian Child Welfare Act or 87.13 relieved of this duty by the court under paragraph (c), when the 87.14 agency determines that it is necessary to prepare for the 87.15 permanent placement determination hearing, or in anticipation of 87.16 filing a termination of parental rights petition, the agency 87.17 shall send notice to the relatives, any adult with whom the 87.18 child is currently residing, any adult with whom the child has 87.19 resided for one year or longer in the past, and any adults who 87.20 have maintained a relationship or exercised visitation with the 87.21 child as identified in the agency case plan. The notice must 87.22 state that a permanent home is sought for the child and that the 87.23 individuals receiving the notice may indicate to the agency 87.24 their interest in providing a permanent home. The notice must 87.25 state that within 30 days of receipt of the notice an individual 87.26 receiving the notice must indicate to the agency the 87.27 individual's interest in providing a permanent home for the 87.28 child or that the individual may lose the opportunity to be 87.29 considered for a permanent placement. 87.30 (e) The Department of Human Services shall develop a best 87.31 practices guide and specialized staff training to assist the 87.32 responsible social services agency in performing and complying 87.33 with the relative search requirements under this subdivision. 87.34 Sec. 7. [REPEALER.] 87.35 Laws 2003, First Special Session chapter 14, article 3, 87.36 section 56, is repealed effective immediately following final 88.1 enactment. 88.2 ARTICLE 4 88.3 CHILD CARE; MINNESOTA FAMILY INVESTMENT PLAN 88.4 Section 1. Minnesota Statutes 2003 Supplement, section 88.5 119B.011, subdivision 8, is amended to read: 88.6 Subd. 8. [COMMISSIONER.] "Commissioner" means the 88.7 commissioner of educationhuman services. 88.8 Sec. 2. Minnesota Statutes 2003 Supplement, section 88.9 119B.011, subdivision 10, is amended to read: 88.10 Subd. 10. [DEPARTMENT.] "Department" means the Department 88.11 of EducationHuman Services. 88.12 Sec. 3. Minnesota Statutes 2002, section 119B.011, is 88.13 amended by adding a subdivision to read: 88.14 Subd. 10a. [DIVERSIONARY WORK PROGRAM.] "Diversionary work 88.15 program" means the program established under section 256J.95. 88.16 Sec. 4. Minnesota Statutes 2003 Supplement, section 88.17 119B.011, subdivision 20, is amended to read: 88.18 Subd. 20. [TRANSITION YEAR FAMILIES.] (a)"Transition year 88.19 families" means families who have received MFIP assistance, or 88.20 who were eligible to receive MFIP assistance after choosing to 88.21 discontinue receipt of the cash portion of MFIP assistance under 88.22 section 256J.31, subdivision 12, or families who have received 88.23 DWP assistance under section 256J.95 for at least three of the 88.24 last six months before losing eligibility for MFIP or DWP. 88.25 Transition year child care may be used to support employment or 88.26 job search. Transition year child care is not available to 88.27 families who have been disqualified from MFIP or DWP due to 88.28 fraud. 88.29 (b)Subd. 20a. [TRANSITION YEAR EXTENSION FAMILIES.] 88.30 "Transition year extension yearfamilies" means families who 88.31 have completed their transition year of child care assistance 88.32 under this subdivision and who are eligible for, but on a 88.33 waiting list for, services under section 119B.03. For purposes 88.34 of sections 119B.03, subdivision 3, and 119B.05, subdivision 1, 88.35 clause (2), families participating in extended transition year 88.36 shall not be considered transition year families. Transition 89.1 year extension child care may be used to support employment or a 89.2 job search that meets the requirements of section 119B.10 for 89.3 the length of time necessary for families to be moved from the 89.4 basic sliding fee waiting list into the basic sliding fee 89.5 program. 89.6 Sec. 5. Minnesota Statutes 2002, section 119B.03, 89.7 subdivision 3, is amended to read: 89.8 Subd. 3. [ELIGIBLE PARTICIPANTS.] Families that meet the 89.9 eligibility requirements under sections 119B.07, 119B.09, and 89.10 119B.10, except MFIP participants, work first89.11 participantsdiversionary work program, and transition year 89.12 families are eligible for child care assistance under the basic 89.13 sliding fee program. Families enrolled in the basic sliding fee 89.14 program shall be continued until they are no longer eligible. 89.15 Child care assistance provided through the child care fund is 89.16 considered assistance to the parent. 89.17 Sec. 6. Minnesota Statutes 2003 Supplement, section 89.18 119B.03, subdivision 4, is amended to read: 89.19 Subd. 4. [FUNDING PRIORITY.] (a) First priority for child 89.20 care assistance under the basic sliding fee program must be 89.21 given to eligible non-MFIP families who do not have a high 89.22 school or general equivalency diploma or who need remedial and 89.23 basic skill courses in order to pursue employment or to pursue 89.24 education leading to employment and who need child care 89.25 assistance to participate in the education program. Within this 89.26 priority, the following subpriorities must be used: 89.27 (1) child care needs of minor parents; 89.28 (2) child care needs of parents under 21 years of age; and 89.29 (3) child care needs of other parents within the priority 89.30 group described in this paragraph. 89.31 (b) Second priority must be given to parents who have 89.32 completed their MFIP or work firstDWP transition year, or 89.33 parents who are no longer receiving or eligible for diversionary 89.34 work program supports. 89.35 (c) Third priority must be given to families who are 89.36 eligible for portable basic sliding fee assistance through the 90.1 portability pool under subdivision 9. 90.2 (d) Families under paragraph (b) must be added to the basic 90.3 sliding fee waiting list on the date they begin the transition 90.4 year under section 119B.011, subdivision 20, and must be moved 90.5 into the basic sliding fee program as soon as possible after 90.6 they complete their transition year. 90.7 Sec. 7. Minnesota Statutes 2002, section 119B.03, 90.8 subdivision 6a, is amended to read: 90.9 Subd. 6a. [ALLOCATION DUE TO INCREASED FUNDING.] When 90.10 funding increases are implemented within a calendar year, every 90.11 county must receive an allocation at least equal and90.12 proportionateto its original allocation for the same time 90.13 period. The remainder of the allocation must be recalculated to 90.14 reflect the funding increase, according to formulas identified 90.15 in subdivision 6. 90.16 Sec. 8. Minnesota Statutes 2002, section 119B.03, is 90.17 amended by adding a subdivision to read: 90.18 Subd. 6b. [ALLOCATION DUE TO DECREASED FUNDING.] When 90.19 funding decreases are implemented within a calendar year, county 90.20 allocations must be reduced in an amount proportionate to the 90.21 reduction in the total allocation for the same time period. 90.22 This applies when a funding decrease necessitates the revision 90.23 of an existing calendar year allocation. 90.24 Sec. 9. Minnesota Statutes 2003 Supplement, section 90.25 119B.05, subdivision 1, is amended to read: 90.26 Subdivision 1. [ELIGIBLE PARTICIPANTS.] Families eligible 90.27 for child care assistance under the MFIP child care program are: 90.28 (1) MFIP participants who are employed or in job search and 90.29 meet the requirements of section 119B.10; 90.30 (2) persons who are members of transition year families 90.31 under section 119B.011, subdivision 20, and meet the 90.32 requirements of section 119B.10; 90.33 (3) families who are participating in employment 90.34 orientation or job search, or other employment or training 90.35 activities that are included in an approved employability 90.36 development plan under chapter 256Ksection 256J.95; 91.1 (4) MFIP families who are participating in work job search, 91.2 job support, employment, or training activities as required in 91.3 their job search support oremployment plan, or in appeals, 91.4 hearings, assessments, or orientations according to chapter 91.5 256J; 91.6 (5) MFIP families who are participating in social services 91.7 activities under chapter 256J or 256Kas required in their 91.8 employment plan approved according to chapter 256J or 256K; 91.9 (6) families who are participating in programs as required 91.10 in tribal contracts under section 119B.02, subdivision 2, or 91.11 256.01, subdivision 2; and 91.12 (7) families who are participating in the transition year 91.13 extension under section 119B.011, subdivision 20, paragraph91.14 (a)20a. 91.15 Sec. 10. Minnesota Statutes 2003 Supplement, section 91.16 119B.09, subdivision 7, is amended to read: 91.17 Subd. 7. [DATE OF ELIGIBILITY FOR ASSISTANCE.] (a) The 91.18 date of eligibility for child care assistance under this chapter 91.19 is the later of the date the application was signed; the 91.20 beginning date of employment, education, or training; or the 91.21 date a determination has been made that the applicant is a 91.22 participant in employment and training services under Minnesota 91.23 Rules, part 3400.0080, subpart 2a, or chapter 256J or 256K. 91.24 (b) Payment of child care assistance for employed persons 91.25 on MFIP is effective the date of employment or the date of MFIP 91.26 eligibility, whichever is later. Payment of child care 91.27 assistance for MFIP or work firstDWP participants in employment 91.28 and training services is effective the date of commencement of 91.29 the services or the date of MFIP or work firstDWP eligibility, 91.30 whichever is later. Payment of child care assistance for 91.31 transition year child care must be made retroactive to the date 91.32 of eligibility for transition year child care. 91.33 Sec. 11. Minnesota Statutes 2003 Supplement, section 91.34 119B.12, subdivision 2, is amended to read: 91.35 Subd. 2. [PARENT FEE.] A family must be assessed a parent 91.36 fee for each service period. A family's parent fee must be a 92.1 fixed percentage of its annual gross income. Parent fees must 92.2 apply to families eligible for child care assistance under 92.3 sections 119B.03 and 119B.05. Income must be as defined in 92.4 section 119B.011, subdivision 15. The fixed percent is based on 92.5 the relationship of the family's annual gross income to 100 92.6 percent of the annual federal poverty guidelines. Parent fees 92.7 must begin at 75 percent of the poverty level. The minimum 92.8 parent fees for families between 75 percent and 100 percent of 92.9 poverty level must be $10 per month. Parent fees must provide 92.10 for graduated movement to full payment. 92.11 Sec. 12. Minnesota Statutes 2003 Supplement, section 92.12 119B.13, subdivision 1, is amended to read: 92.13 Subdivision 1. [SUBSIDY RESTRICTIONS.] The maximum rate 92.14 paid for child care assistance under the child care fund may not 92.15 exceed the 75th percentile rate for like-care arrangements in 92.16 the county as surveyed by the commissioner. A rate which 92.17 includes a provider bonus paid under subdivision 2 ora special 92.18 needs rate paid under subdivision 3 may be in excess of the 92.19 maximum rate allowed under this subdivision. The department 92.20 shall monitor the effect of this paragraph on provider rates. 92.21 The county shall pay the provider's full charges for every child 92.22 in care up to the maximum established. The commissioner shall 92.23 determine the maximum rate for each type of care on an hourly, 92.24 full-day, and weekly basis, including special needs and 92.25 handicapped care. Not less than once every two years, the 92.26 commissioner shall evaluate market practices for payment of 92.27 absences and shall establish policies for payment of absent days 92.28 that reflect current market practice. 92.29 When the provider charge is greater than the maximum 92.30 provider rate allowed, the parent is responsible for payment of 92.31 the difference in the rates in addition to any family co-payment 92.32 fee. 92.33 Sec. 13. Minnesota Statutes 2003 Supplement, section 92.34 119B.13, subdivision 1a, is amended to read: 92.35 Subd. 1a. [LEGAL NONLICENSED FAMILY CHILD CARE PROVIDER 92.36 RATES.] (a) Legal nonlicensed family child care providers 93.1 receiving reimbursement under this chapter must be paid on an 93.2 hourly basis for care provided to families receiving assistance. 93.3 (b) The maximum rate paid to legal nonlicensed family child 93.4 care providers must be 80 percent of the county maximum hourly 93.5 rate for licensed family child care providers. In counties 93.6 where the maximum hourly rate for licensed family child care 93.7 providers is higher than the maximum weekly rate for those 93.8 providers divided by 50, the maximum hourly rate that may be 93.9 paid to legal nonlicensed family child care providers is the 93.10 rate equal to the maximum weekly rate for licensed family child 93.11 care providers divided by 50 and then multiplied by 0.80. 93.12 (c) A rate which includes a provider bonus paid under93.13 subdivision 2 ora special needs rate paid under subdivision 3 93.14 may be in excess of the maximum rate allowed under this 93.15 subdivision. 93.16 (d) Legal nonlicensed family child care providers receiving 93.17 reimbursement under this chapter may not be paid registration 93.18 fees for families receiving assistance. 93.19 Sec. 14. Minnesota Statutes 2003 Supplement, section 93.20 119B.189, subdivision 2, is amended to read: 93.21 Subd. 2. [INTERIM FINANCING.] "Interim financing" means 93.22 funding for up to 18 months: 93.23 (1) for activities that are necessary to receive and 93.24 maintain state child care licensing; 93.25 (2) to expand an existing child care program or to improve 93.26 program quality; and 93.27 (3) to operate for a period of six consecutive months after 93.28 a child care facility becomes licensed or satisfies standards of 93.29 the commissioner of educationhuman services. 93.30 Sec. 15. Minnesota Statutes 2003 Supplement, section 93.31 119B.189, subdivision 4, is amended to read: 93.32 Subd. 4. [TRAINING PROGRAM.] "Training program" means 93.33 child development courses offered by an accredited postsecondary 93.34 institution or similar training approved by a county board or 93.35 the commissioner. A training program must be a course of study 93.36 that teaches specific skills to meet licensing requirements or 94.1 requirements of the commissioner of educationhuman services. 94.2 Sec. 16. Minnesota Statutes 2003 Supplement, section 94.3 119B.19, subdivision 1, is amended to read: 94.4 Subdivision 1. [DISTRIBUTION OF FUNDS FOR OPERATION OF 94.5 CHILD CARE RESOURCE AND REFERRAL PROGRAMS.] The commissioner 94.6 of educationhuman services shall distribute funds to public or 94.7 private nonprofit organizations for the planning, establishment, 94.8 expansion, improvement, or operation of child care resource and 94.9 referral programs under this section. The commissioner must 94.10 adopt rules for programs under this section and sections 94.11 119B.189 and 119B.21. The commissioner must develop a process 94.12 to fund organizations to operate child care resource and 94.13 referral programs that includes application forms, timelines, 94.14 and standards for renewal. 94.15 Sec. 17. Minnesota Statutes 2003 Supplement, section 94.16 119B.24, is amended to read: 94.17 119B.24 [DUTIES OF COMMISSIONER.] 94.18 In addition to the powers and duties already conferred by 94.19 law, the commissioner of educationhuman services shall: 94.20 (1) administer the child care fund, including the basic 94.21 sliding fee program authorized under sections 119B.011 to 94.22 119B.16; 94.23 (2) monitor the child care resource and referral programs 94.24 established under section 119B.19; and 94.25 (3) encourage child care providers to participate in a 94.26 nationally recognized accreditation system for early childhood 94.27 and school-age care programs. Subject to approval by the 94.28 commissioner, family child care providers and early childhood 94.29 and school-age care programs shall be reimbursed for one-half of 94.30 the direct cost of accreditation fees, upon successful 94.31 completion of accreditation. 94.32 Sec. 18. Minnesota Statutes 2003 Supplement, section 94.33 119B.25, subdivision 2, is amended to read: 94.34 Subd. 2. [GRANTS.] The commissioner shall distribute money 94.35 provided by this section through a grant to a nonprofit 94.36 corporation organized to plan, develop, and finance early 95.1 childhood education and child care sites. The nonprofit 95.2 corporation must have demonstrated the ability to analyze 95.3 financing projects, have knowledge of other sources of public 95.4 and private financing for child care and early childhood 95.5 education sites, and have a relationship with the resource and 95.6 referral programs under section 119B.211. The board of 95.7 directors of the nonprofit corporation must include members who 95.8 are knowledgeable about early childhood education, child care, 95.9 development and improvement, and financing. The commissioners 95.10 of the Departments of EducationHuman Services and Employment 95.11 and Economic Development, and the commissioner of the Housing 95.12 Finance Agency shall advise the board on the loan program. The 95.13 grant must be used to make loans to improve child care or early 95.14 childhood education sites, or loans to plan, design, and 95.15 construct or expand licensed and legal unlicensed sites to 95.16 increase the availability of child care or early childhood 95.17 education. All loans made by the nonprofit corporation must 95.18 comply with section 363A.16. 95.19 Sec. 19. Minnesota Statutes 2003 Supplement, section 95.20 256.046, subdivision 1, is amended to read: 95.21 Subdivision 1. [HEARING AUTHORITY.] A local agency must 95.22 initiate an administrative fraud disqualification hearing for 95.23 individuals, including child care providers caring for children 95.24 receiving child care assistance, accused of wrongfully obtaining 95.25 assistance or intentional program violations, in lieu of a 95.26 criminal action when it has not been pursued, in the aid to 95.27 families with dependent children program formerly codified in 95.28 sections 256.72 to 256.87, MFIP, the diversionary work program, 95.29 child care assistance programs, general assistance, family 95.30 general assistance program formerly codified in section 256D.05, 95.31 subdivision 1, clause (15), Minnesota supplemental aid, food 95.32 stamp programs, general assistance medical care, MinnesotaCare 95.33 for adults without children, and upon federal approval, all 95.34 categories of medical assistance and remaining categories of 95.35 MinnesotaCare except for children through age 18. The hearing 95.36 is subject to the requirements of section 256.045 and the 96.1 requirements in Code of Federal Regulations, title 7, section 96.2 273.16, for the food stamp program and title 45, section 96.3 235.112, as of September 30, 1995, for the cash grant, medical 96.4 care programs, and child care assistance under chapter 119B. 96.5 Sec. 20. Minnesota Statutes 2003 Supplement, section 96.6 256.98, subdivision 8, is amended to read: 96.7 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] (a) Any person 96.8 found to be guilty of wrongfully obtaining assistance by a 96.9 federal or state court or by an administrative hearing 96.10 determination, or waiver thereof, through a disqualification 96.11 consent agreement, or as part of any approved diversion plan 96.12 under section 401.065, or any court-ordered stay which carries 96.13 with it any probationary or other conditions, in the Minnesota 96.14 family investment program, the diversionary work program, the 96.15 food stamp or food support program, the general assistance 96.16 program, the group residential housing program, or the Minnesota 96.17 supplemental aid program shall be disqualified from that 96.18 program. In addition, any person disqualified from the 96.19 Minnesota family investment program shall also be disqualified 96.20 from the food stamp or food support program. The needs of that 96.21 individual shall not be taken into consideration in determining 96.22 the grant level for that assistance unit: 96.23 (1) for one year after the first offense; 96.24 (2) for two years after the second offense; and 96.25 (3) permanently after the third or subsequent offense. 96.26 The period of program disqualification shall begin on the 96.27 date stipulated on the advance notice of disqualification 96.28 without possibility of postponement for administrative stay or 96.29 administrative hearing and shall continue through completion 96.30 unless and until the findings upon which the sanctions were 96.31 imposed are reversed by a court of competent jurisdiction. The 96.32 period for which sanctions are imposed is not subject to 96.33 review. The sanctions provided under this subdivision are in 96.34 addition to, and not in substitution for, any other sanctions 96.35 that may be provided for by law for the offense involved. A 96.36 disqualification established through hearing or waiver shall 97.1 result in the disqualification period beginning immediately 97.2 unless the person has become otherwise ineligible for 97.3 assistance. If the person is ineligible for assistance, the 97.4 disqualification period begins when the person again meets the 97.5 eligibility criteria of the program from which they were 97.6 disqualified and makes application for that program. 97.7 (b) A family receiving assistance through child care 97.8 assistance programs under chapter 119B with a family member who 97.9 is found to be guilty of wrongfully obtaining child care 97.10 assistance by a federal court, state court, or an administrative 97.11 hearing determination or waiver, through a disqualification 97.12 consent agreement, as part of an approved diversion plan under 97.13 section 401.065, or a court-ordered stay with probationary or 97.14 other conditions, is disqualified from child care assistance 97.15 programs. The disqualifications must be for periods of three 97.16 months, six months, and two years for the first, second, and 97.17 third offenses respectively. Subsequent violations must result 97.18 in permanent disqualification. During the disqualification 97.19 period, disqualification from any child care program must extend 97.20 to all child care programs and must be immediately applied. 97.21 (c) A provider caring for children receiving assistance 97.22 through child care assistance programs under chapter 119B is 97.23 disqualified from receiving payment for child care services from 97.24 the child care assistance program under chapter 119B when the 97.25 provider is found to have wrongfully obtained child care 97.26 assistance by a federal court, state court, or an administrative 97.27 hearing determination or waiver under section 256.046, through a 97.28 disqualification consent agreement, as part of an approved 97.29 diversion plan under section 401.065, or a court-ordered stay 97.30 with probationary or other conditions. The disqualification 97.31 must be for a period of one year for the first offense and two 97.32 years for the second offense. Any subsequent violation must 97.33 result in permanent disqualification. The disqualification 97.34 period must be imposed immediately after a determination is made 97.35 under this paragraph. During the disqualification period, the 97.36 provider is disqualified from receiving payment from any child 98.1 care program under chapter 119B. 98.2 (d) Any person found to be guilty of wrongfully obtaining 98.3 general assistance medical care, MinnesotaCare for adults 98.4 without children, and upon federal approval, all categories of 98.5 medical assistance and remaining categories of MinnesotaCare, 98.6 except for children through age 18, by a federal or state court 98.7 or by an administrative hearing determination, or waiver 98.8 thereof, through a disqualification consent agreement, or as 98.9 part of any approved diversion plan under section 401.065, or 98.10 any court-ordered stay which carries with it any probationary or 98.11 other conditions, is disqualified from that program. The period 98.12 of disqualification is one year after the first offense, two 98.13 years after the second offense, and permanently after the third 98.14 or subsequent offense. The period of program disqualification 98.15 shall begin on the date stipulated on the advance notice of 98.16 disqualification without possibility of postponement for 98.17 administrative stay or administrative hearing and shall continue 98.18 through completion unless and until the findings upon which the 98.19 sanctions were imposed are reversed by a court of competent 98.20 jurisdiction. The period for which sanctions are imposed is not 98.21 subject to review. The sanctions provided under this 98.22 subdivision are in addition to, and not in substitution for, any 98.23 other sanctions that may be provided for by law for the offense 98.24 involved. 98.25 Sec. 21. Minnesota Statutes 2002, section 256J.01, 98.26 subdivision 1, is amended to read: 98.27 Subdivision 1. [IMPLEMENTATION OF MINNESOTA FAMILY 98.28 INVESTMENT PROGRAM (MFIP).] Except for section 256J.95, this 98.29 chapter and chapter 256K may be cited as the Minnesota family 98.30 investment program (MFIP). MFIP is the statewide implementation 98.31 of components of the Minnesota family investment plan (MFIP) 98.32 authorized and formerly codified in section 256.031 and 98.33 Minnesota family investment plan-Ramsey County (MFIP-R) formerly 98.34 codified in section 256.047. 98.35 Sec. 22. Minnesota Statutes 2002, section 256J.08, 98.36 subdivision 73, is amended to read: 99.1 Subd. 73. [QUALIFIED NONCITIZEN.] "Qualified noncitizen" 99.2 means a person: 99.3 (1) who was lawfully admitted for permanent residence 99.4 pursuantaccording to United States Code, title 8; 99.5 (2) who was admitted to the United States as a refugee 99.6 pursuantaccording to United States Code, title 8; section 1157; 99.7 (3) whose deportation is being withheld pursuantaccording 99.8 to United States Code, title 8, sectionsections 1231(b)(3), 99.9 1253(h), and 1641(b)(5); 99.10 (4) who was paroled for a period of at least one year 99.11 pursuantaccording to United States Code, title 8, section 99.12 1182(d)(5); 99.13 (5) who was granted conditional entry pursuantaccording to 99.14 United State Code, title 8, section 1153(a)(7); 99.15 (6) who is a Cuban or Haitian entrant as defined in section 99.16 501(e) of the Refugee Education Assistance Act of 1980, United 99.17 States Code, title 8, section 1641(b)(7); 99.18 (7) who was granted asylum pursuantaccording to United 99.19 States Code, title 8, section 1158; 99.20 (7) determined to be a battered noncitizen by the United99.21 States Attorney General according to the Illegal Immigration99.22 Reform and Immigrant Responsibility Act of 1996, Title V of the99.23 Omnibus Consolidated Appropriations Bill, Public Law 104-208;99.24 (8) who is a child of a noncitizen determined to be a99.25 battered noncitizen by the United States Attorney General99.26 according to the Illegal Immigration Reform and Responsibility99.27 Act of 1996, title V, Public Law 104-200battered noncitizen 99.28 according to United States Code, title 8, section 1641(c); or 99.29 (9) who was admitted as a Cuban or Haitian entrantis a 99.30 parent or child of a battered noncitizen according to United 99.31 States Code, title 8, section 1641(c). 99.32 Sec. 23. Minnesota Statutes 2002, section 256J.08, 99.33 subdivision 82a, is amended to read: 99.34 Subd. 82a. [SHARED HOUSEHOLD STANDARD.] "Shared household 99.35 standard" means the basic standard used when the household 99.36 includes an unrelated member. The standard also applies to a 100.1 member disqualified under section 256J.425. The cash portion of 100.2 the shared household standard is equal to 90 percent of the cash 100.3 portion of the transitional standard. The cash portion of the 100.4 shared household standard plus the food portion equals the full 100.5 shared household standard. 100.6 Sec. 24. Minnesota Statutes 2003 Supplement, section 100.7 256J.09, subdivision 3b, is amended to read: 100.8 Subd. 3b. [INTERVIEW TO DETERMINE REFERRALS AND SERVICES.] 100.9 If the applicant is not diverted from applying for MFIP, and if 100.10 the applicant meets the MFIP eligibility requirements, then a 100.11 county agency must: 100.12 (1) identify an applicant who is under the age of 20 100.13 without a high school diploma or its equivalent and explain to 100.14 the applicant the assessment procedures and employment plan 100.15 requirements under section 256J.54; 100.16 (2) explain to the applicant the eligibility criteria in 100.17 section 256J.545 for the family violence waiver, and what an 100.18 applicant should do to develop an employment plan; 100.19 (3) determine if an applicant qualifies for an exemption100.20 under section 256J.56 from employment and training services100.21 requirementsexplain that the activities and hourly requirements 100.22 of the employment plan may be adjusted to accommodate the 100.23 personal and family circumstances of applicants who meet the 100.24 criteria in section 256J.561, subdivision 2, paragraph (d), 100.25 explain how a person should report to the county agency any 100.26 status changes, and explain that an applicant who is exemptnot 100.27 required to participate in employment services under section 100.28 256J.561 may volunteer to participate in employment and training 100.29 services; 100.30 (4) for applicants who are not exempt from the requirement 100.31 to attend orientation, arrange for an orientation under section 100.32 256J.45 and an assessment under section 256J.521; 100.33 (5) inform an applicant who is not exempt from the 100.34 requirement to attend orientation that failure to attend the 100.35 orientation is considered an occurrence of noncompliance with 100.36 program requirements and will result in an imposition of a 101.1 sanction under section 256J.46; and 101.2 (6) explain how to contact the county agency if an 101.3 applicant has questions about compliance with program 101.4 requirements. 101.5 Sec. 25. Minnesota Statutes 2002, section 256J.21, 101.6 subdivision 3, is amended to read: 101.7 Subd. 3. [INITIAL INCOME TEST.] The county agency shall 101.8 determine initial eligibility by considering all earned and 101.9 unearned income that is not excluded under subdivision 2. To be 101.10 eligible for MFIP, the assistance unit's countable income minus 101.11 the disregards in paragraphs (a) and (b) must be below the 101.12 transitional standard of assistance according to section 256J.24 101.13 for that size assistance unit. 101.14 (a) The initial eligibility determination must disregard 101.15 the following items: 101.16 (1) the employment disregard is 18 percent of the gross 101.17 earned income whether or not the member is working full time or 101.18 part time; 101.19 (2) dependent care costs must be deducted from gross earned 101.20 income for the actual amount paid for dependent care up to a 101.21 maximum of $200 per month for each child less than two years of 101.22 age, and $175 per month for each child two years of age and 101.23 older under this chapter and chapter 119B; 101.24 (3) all payments made according to a court order for 101.25 spousal support or the support of children not living in the 101.26 assistance unit's household shall be disregarded from the income 101.27 of the person with the legal obligation to pay support, provided 101.28 that, if there has been a change in the financial circumstances 101.29 of the person with the legal obligation to pay support since the 101.30 support order was entered, the person with the legal obligation 101.31 to pay support has petitioned for a modification of the support 101.32 order; and 101.33 (4) an allocation for the unmet need of an ineligible 101.34 spouse or an ineligible child under the age of 21 for whom the 101.35 caregiver is financially responsible and who lives with the 101.36 caregiver according to section 256J.36. 102.1 (b) Notwithstanding paragraph (a), when determining initial 102.2 eligibility for applicant units when at least one member has 102.3 received work first orMFIP in this state within four months of 102.4 the most recent application for MFIP, apply the disregard as 102.5 defined in section 256J.08, subdivision 24, for all unit members. 102.6 After initial eligibility is established, the assistance 102.7 payment calculation is based on the monthly income test. 102.8 Sec. 26. Minnesota Statutes 2003 Supplement, section 102.9 256J.24, subdivision 5, is amended to read: 102.10 Subd. 5. [MFIP TRANSITIONAL STANDARD.] The MFIP 102.11 transitional standard is based on the number of persons in the 102.12 assistance unit eligible for both food and cash assistance 102.13 unless the restrictions in subdivision 6 on the birth of a child 102.14 apply. The following table represents the transitional 102.15 standards effective October 1, 20022003. 102.16 Number of Transitional Cash Food 102.17 Eligible People Standard Portion Portion 102.18 1 $370$371: $250 $120$121 102.19 2 $658$661: $437 $221$224 102.20 3 $844$852: $532 $312$320 102.21 4 $998$1,006: $621 $377$385 102.22 5 $1,135$1,146: $697 $438$449 102.23 6 $1,296$1,309: $773 $523$536 102.24 7 $1,414$1,428: $850 $564$578 102.25 8 $1,558$1,572: $916 $642$656 102.26 9 $1,700$1,715: $980 $720$735 102.27 10 $1,836$1,853: $1,035 $801$818 102.28 over 10 add $136$137: $53 $83$84 102.29 per additional member. 102.30 The commissioner shall annually publish in the State 102.31 Register the transitional standard for an assistance unit sizes 102.32 1 to 10 including a breakdown of the cash and food portions. 102.33 Sec. 27. Minnesota Statutes 2003 Supplement, section 102.34 256J.32, subdivision 2, is amended to read: 102.35 Subd. 2. [DOCUMENTATION.] The applicant or participant 102.36 must document the information required under subdivisions 4 to 6 103.1 or authorize the county agency to verify the information. The 103.2 applicant or participant has the burden of providing documentary 103.3 evidence to verify eligibility. The county agency shall assist 103.4 the applicant or participant in obtaining required documents 103.5 when the applicant or participant is unable to do so. The 103.6 county agency may accept an affidavita signed personal 103.7 statement from the applicant or participant only for factors 103.8 specified under subdivision 8. 103.9 Sec. 28. Minnesota Statutes 2003 Supplement, section 103.10 256J.32, subdivision 8, is amended to read: 103.11 Subd. 8. [ AFFIDAVITPERSONAL STATEMENT.] The county agency 103.12 may accept an affidavita signed personal statement from the 103.13 applicant or recipientparticipant explaining the reasons that 103.14 the documentation requested in subdivision 2 is unavailable as 103.15 sufficient documentation at the time of application or, 103.16 recertification, or change related to eligibility only for the 103.17 following factors: 103.18 (1) a claim of family violence if used as a basis to 103.19 qualify for the family violence waiver; 103.20 (2) information needed to establish an exception under 103.21 section 256J.24, subdivision 9; 103.22 (3) relationship of a minor child to caregivers in the 103.23 assistance unit; and103.24 (4) citizenship status from a noncitizen who reports to be, 103.25 or is identified as, a victim of severe forms of trafficking in 103.26 persons, if the noncitizen reports that the noncitizen's 103.27 immigration documents are being held by an individual or group 103.28 of individuals against the noncitizen's will. The noncitizen 103.29 must follow up with the Office of Refugee Resettlement (ORR) to 103.30 pursue certification. If verification that certification is 103.31 being pursued is not received within 30 days, the MFIP case must 103.32 be closed and the agency shall pursue overpayments. The ORR 103.33 documents certifying the noncitizen's status as a victim of 103.34 severe forms of trafficking in persons, or the reason for the 103.35 delay in processing, must be received within 90 days, or the 103.36 MFIP case must be closed and the agency shall pursue 104.1 overpayments; and 104.2 (5) other documentation unavailable for reasons beyond the 104.3 control of the applicant or participant. Reasonable attempts 104.4 must have been made to obtain the documents requested under 104.5 subdivision 2. 104.6 Sec. 29. Minnesota Statutes 2003 Supplement, section 104.7 256J.37, subdivision 9, is amended to read: 104.8 Subd. 9. [UNEARNED INCOME.] (a) The county agency must 104.9 apply unearned income to the MFIP standard of need. When 104.10 determining the amount of unearned income, the county agency 104.11 must deduct the costs necessary to secure payments of unearned 104.12 income. These costs include legal fees, medical fees, and 104.13 mandatory deductions such as federal and state income taxes. 104.14 (b) The county agency must convert unearned income received 104.15 on a periodic basis to monthly amounts by prorating the income 104.16 over the number of months represented by the frequency of the 104.17 payments. The county agency must begin counting the monthly 104.18 amount in the month the periodic payment is received and budget 104.19 it according to the assistance unit's budget cycle. 104.20 Sec. 30. Minnesota Statutes 2002, section 256J.415, is 104.21 amended to read: 104.22 256J.415 [NOTICE OF TIME LIMIT 12 MONTHS PRIOR TO 60-MONTH 104.23 TIME LIMIT EXPIRING.] 104.24 (a) The county agency shall mail a notice to each 104.25 assistance unit when the assistance unit has 12 months of TANF 104.26 assistance remaining and each month thereafter until the 104.27 60-month limit has expired. The notice must be developed by the 104.28 commissioner of human services and must contain information 104.29 about the 60-month limit, the number of months the participant 104.30 has remaining, the hardship extension policy, and any other 104.31 information that the commissioner deems pertinent to an 104.32 assistance unit nearing the 60-month limit. 104.33 (b) For applicants who have less than 12 months remaining 104.34 in the 60-month time limit because the unit previously received 104.35 TANF assistance in Minnesota or another state, the county agency 104.36 shall notify the applicant of the number of months of TANF 105.1 remaining when the application is approved and begin the process 105.2 required in paragraph (a). 105.3 Sec. 31. Minnesota Statutes 2003 Supplement, section 105.4 256J.425, subdivision 1, is amended to read: 105.5 Subdivision 1. [ELIGIBILITY.] (a) To be eligible for a 105.6 hardship extension, a participant in an assistance unit subject 105.7 to the time limit under section 256J.42, subdivision 1, must be 105.8 in compliance in the participant's 60th counted month. For 105.9 purposes of determining eligibility for a hardship extension, a 105.10 participant is in compliance in any month that the participant 105.11 has not been sanctioned. 105.12 (b) If one participant in a two-parent assistance unit is 105.13 determined to be ineligible for a hardship extension, the county 105.14 shall give the assistance unit the option of disqualifying the 105.15 ineligible participant from MFIP. In that case, the assistance 105.16 unit shall be treated as a one-parent assistance unit and the 105.17 assistance unit's MFIP grant shall be calculated using the 105.18 shared household standard under section 256J.08, subdivision 82a. 105.19 (c) Prior to denying an extension, the county must review 105.20 the sanction status and determine whether the sanction is 105.21 appropriate or if good cause exists under section 256J.57. If 105.22 the sanction was inappropriately applied or the participant is 105.23 granted a good cause exception before the end of month 60, the 105.24 participant shall be considered for an extension. 105.25 Sec. 32. Minnesota Statutes 2003 Supplement, section 105.26 256J.425, subdivision 4, is amended to read: 105.27 Subd. 4. [EMPLOYED PARTICIPANTS.] (a) An assistance unit 105.28 subject to the time limit under section 256J.42, subdivision 1, 105.29 is eligible to receive assistance under a hardship extension if 105.30 the participant who reached the time limit belongs to: 105.31 (1) a one-parent assistance unit in which the participant 105.32 is participating in work activities for at least 30 hours per 105.33 week, of which an average of at least 25 hours per week every 105.34 month are spent participating in employment; 105.35 (2) a two-parent assistance unit in which the participants 105.36 are participating in work activities for at least 55 hours per 106.1 week, of which an average of at least 45 hours per week every 106.2 month are spent participating in employment; or 106.3 (3) an assistance unit in which a participant is 106.4 participating in employment for fewer hours than those specified 106.5 in clause (1), and the participant submits verification from a 106.6 qualified professional, in a form acceptable to the 106.7 commissioner, stating that the number of hours the participant 106.8 may work is limited due to illness or disability, as long as the 106.9 participant is participating in employment for at least the 106.10 number of hours specified by the qualified professional. The 106.11 participant must be following the treatment recommendations of 106.12 the qualified professional providing the verification. The 106.13 commissioner shall develop a form to be completed and signed by 106.14 the qualified professional, documenting the diagnosis and any 106.15 additional information necessary to document the functional 106.16 limitations of the participant that limit work hours. If the 106.17 participant is part of a two-parent assistance unit, the other 106.18 parent must be treated as a one-parent assistance unit for 106.19 purposes of meeting the work requirements under this subdivision. 106.20 (b) For purposes of this section, employment means: 106.21 (1) unsubsidized employment under section 256J.49, 106.22 subdivision 13, clause (1); 106.23 (2) subsidized employment under section 256J.49, 106.24 subdivision 13, clause (2); 106.25 (3) on-the-job training under section 256J.49, subdivision 106.26 13, clause (2); 106.27 (4) an apprenticeship under section 256J.49, subdivision 106.28 13, clause (1); 106.29 (5) supported work under section 256J.49, subdivision 13, 106.30 clause (2); 106.31 (6) a combination of clauses (1) to (5); or 106.32 (7) child care under section 256J.49, subdivision 13, 106.33 clause (7), if it is in combination with paid employment. 106.34 (c) If a participant is complying with a child protection 106.35 plan under chapter 260C, the number of hours required under the 106.36 child protection plan count toward the number of hours required 107.1 under this subdivision. 107.2 (d) The county shall provide the opportunity for subsidized 107.3 employment to participants needing that type of employment 107.4 within available appropriations. 107.5 (e) To be eligible for a hardship extension for employed 107.6 participants under this subdivision, a participant must be in 107.7 compliance for at least ten out of the 12 months the participant 107.8 received MFIP immediately preceding the participant's 61st month 107.9 on assistance. If ten or fewer months of eligibility for TANF 107.10 assistance remain at the time the participant from another state 107.11 applies for assistance, the participant must be in compliance 107.12 every month. 107.13 (f) The employment plan developed under section 256J.521, 107.14 subdivision 2, for participants under this subdivision must 107.15 contain at least the minimum number of hours specified in 107.16 paragraph (a) related to employment and work activitiesfor the 107.17 purpose of meeting the requirements for an extension under this 107.18 subdivision. The job counselor and the participant must sign 107.19 the employment plan to indicate agreement between the job 107.20 counselor and the participant on the contents of the plan. 107.21 (g) Participants who fail to meet the requirements in 107.22 paragraph (a), without good cause under section 256J.57, shall 107.23 be sanctioned or permanently disqualified under subdivision 6. 107.24 Good cause may only be granted for that portion of the month for 107.25 which the good cause reason applies. Participants must meet all 107.26 remaining requirements in the approved employment plan or be 107.27 subject to sanction or permanent disqualification. 107.28 (h) If the noncompliance with an employment plan is due to 107.29 the involuntary loss of employment, the participant is exempt 107.30 from the hourly employment requirement under this subdivision 107.31 for one month. Participants must meet all remaining 107.32 requirements in the approved employment plan or be subject to 107.33 sanction or permanent disqualification. This exemption is 107.34 available to aeach participant two times in a 12-month period. 107.35 Sec. 33. Minnesota Statutes 2002, section 256J.425, 107.36 subdivision 5, is amended to read: 108.1 Subd. 5. [ACCRUAL OF CERTAIN EXEMPT MONTHS.] (a) A108.2 participant who received TANF assistance that counted towards108.3 the federal 60-month time limit while the participant108.4 wasParticipants who meet the criteria in clause (1), (2), or (3) 108.5 and who are not eligible for assistance under a hardship 108.6 extension under subdivision 2, paragraph (a), clause (3), shall 108.7 be eligible for a hardship extension for a period of time equal 108.8 to the number of months that were counted toward the federal 108.9 60-month time limit while the participant was: 108.10 (1) a caregiver with a child or an adult in the household 108.11 who meets the disability or medical criteria for home care 108.12 services under section 256B.0627, subdivision 1, paragraph (f), 108.13 or a home and community-based waiver services program under 108.14 chapter 256B, or meets the criteria for severe emotional 108.15 disturbance under section 245.4871, subdivision 6, or for 108.16 serious and persistent mental illness under section 245.462, 108.17 subdivision 20, paragraph (c), who was subject to the 108.18 requirements in section 256J.561, subdivision 2; 108.19 (2) exempt under section 256J.56, paragraph (a), clause 108.20 (7) , from employment and training services requirements and who108.21 is no longer eligible for assistance under a hardship extension108.22 under subdivision 2, paragraph (a), clause (3), is eligible for108.23 assistance under a hardship extension for a period of time equal108.24 to the number of months that were counted toward the federal108.25 60-month time limit while the participant was exempt under108.26 section 256J.56, paragraph (a), clause (7), from the employment108.27 and training services requirements.; or 108.28 (3) exempt under section 256J.56, paragraph (a), clause 108.29 (3), and demonstrates at the time of the case review required 108.30 under section 256J.42, subdivision 6, that the participant met 108.31 the exemption criteria under section 256J.56, paragraph (a), 108.32 clause (7), during one or more months the participant was exempt 108.33 under section 256J.56, paragraph (a), clause (3). Only months 108.34 during which the participant met the criteria under section 108.35 256J.56, paragraph (a), clause (7), shall be considered. 108.36 (b) A participant who received TANF assistance that counted 109.1 towards the federal 60-month time limit while the participant 109.2 met the state time limit exemption criteria under section 109.3 256J.42, subdivision 4 or 5, is eligible for assistance under a 109.4 hardship extension for a period of time equal to the number of 109.5 months that were counted toward the federal 60-month time limit 109.6 while the participant met the state time limit exemption 109.7 criteria under section 256J.42, subdivision 4 or 5. 109.8 (c) A participant who received TANF assistance that counted109.9 towards the federal 60-month time limit while the participant109.10 was exempt under section 256J.56, paragraph (a), clause (3),109.11 from employment and training services requirements, who109.12 demonstrates at the time of the case review required under109.13 section 256J.42, subdivision 6, that the participant met the109.14 exemption criteria under section 256J.56, paragraph (a), clause109.15 (7), during one or more months the participant was exempt under109.16 section 256J.56, paragraph (a), clause (3), before or after July109.17 1, 2002, is eligible for assistance under a hardship extension109.18 for a period of time equal to the number of months that were109.19 counted toward the federal 60-month time limit during the time109.20 the participant met the criteria under section 256J.56,109.21 paragraph (a), clause (7)After the accrued months have been 109.22 exhausted, the county agency must determine if the assistance 109.23 unit is eligible for an extension under another extension 109.24 category in section 256J.425, subdivision 2, 3, or 4. 109.25 (d) At the time of the case review, a county agency must 109.26 explain to the participant the basis for receiving a hardship 109.27 extension based on the accrual of exempt months. The 109.28 participant must provide documentation necessary to enable the 109.29 county agency to determine whether the participant is eligible 109.30 to receive a hardship extension based on the accrual of exempt 109.31 months or authorize a county agency to verify the information. 109.32 (e) While receiving extended MFIP assistance under this 109.33 subdivision, a participant is subject to the MFIP policies that 109.34 apply to participants during the first 60 months of MFIP, unless 109.35 the participant is a member of a two-parent family in which one 109.36 parent is extended under subdivision 3 or 4. For two-parent 110.1 families in which one parent is extended under subdivision 3 or 110.2 4, the sanction provisions in subdivision 6, shall apply. 110.3 Sec. 34. Minnesota Statutes 2003 Supplement, section 110.4 256J.425, subdivision 6, is amended to read: 110.5 Subd. 6. [SANCTIONS FOR EXTENDED CASES.] (a) If one or 110.6 both participants in an assistance unit receiving assistance 110.7 under subdivision 3 or 4 are not in compliance with the 110.8 employment and training service requirements in sections 110.9 256J.521 to 256J.57, the sanctions under this subdivision 110.10 apply. For a first occurrence of noncompliance, an assistance 110.11 unit must be sanctioned under section 256J.46, subdivision 1, 110.12 paragraph (c), clause (1). For a second or third occurrence of 110.13 noncompliance, the assistance unit must be sanctioned under 110.14 section 256J.46, subdivision 1, paragraph (c), clause (2). For 110.15 a fourth occurrence of noncompliance, the assistance unit is 110.16 disqualified from MFIP. If a participant is determined to be 110.17 out of compliance, the participant may claim a good cause 110.18 exception under section 256J.57, however, the participant may 110.19 not claim an exemption under section 256J.56. 110.20 (b) If both participants in a two-parent assistance unit 110.21 are out of compliance at the same time, it is considered one 110.22 occurrence of noncompliance. 110.23 (c) When a parent in an extended two-parent assistance unit 110.24 who has not used 60 months of assistance is out of compliance 110.25 with the employment and training service requirements in 110.26 sections 256J.521 to 256J.57, sanctions must be applied as 110.27 specified in clauses (1) and (2). 110.28 (1) If the assistance unit is receiving assistance under 110.29 subdivision 3 or 4, the assistance unit is subject to the 110.30 sanction policy in this subdivision. 110.31 (2) If the assistance unit is receiving assistance under 110.32 subdivision 2, the assistance unit is subject to the sanction 110.33 policy in section 256J.46. 110.34 (d) If a two-parent assistance unit is extended under 110.35 subdivision 3 or 4, and a parent who has not reached the 110.36 60-month time limit is out of compliance with the employment and 111.1 training services requirements in sections 256J.521 to 256J.57 111.2 when the case is extended, the sanction in the 61st month is 111.3 considered the first sanction for the purposes of applying the 111.4 sanctions in this subdivision, except that the sanction amount 111.5 shall be 30 percent. 111.6 Sec. 35. Minnesota Statutes 2003 Supplement, section 111.7 256J.46, subdivision 1, is amended to read: 111.8 Subdivision 1. [PARTICIPANTS NOT COMPLYING WITH PROGRAM 111.9 REQUIREMENTS.] (a) A participant who fails without good cause 111.10 under section 256J.57 to comply with the requirements of this 111.11 chapter, and who is not subject to a sanction under subdivision 111.12 2, shall be subject to a sanction as provided in this 111.13 subdivision. Prior to the imposition of a sanction, a county 111.14 agency shall provide a notice of intent to sanction under 111.15 section 256J.57, subdivision 2, and, when applicable, a notice 111.16 of adverse action as provided in section 256J.31. 111.17 (b) A sanction under this subdivision becomes effective the 111.18 month following the month in which a required notice is given. 111.19 A sanction must not be imposed when a participant comes into 111.20 compliance with the requirements for orientation under section 111.21 256J.45 prior to the effective date of the sanction. A sanction 111.22 must not be imposed when a participant comes into compliance 111.23 with the requirements for employment and training services under 111.24 sections 256J.515 to 256J.57 ten days prior to the effective 111.25 date of the sanction. For purposes of this subdivision, each 111.26 month that a participant fails to comply with a requirement of 111.27 this chapter shall be considered a separate occurrence of 111.28 noncompliance. If both participants in a two-parent assistance 111.29 unit are out of compliance at the same time, it is considered 111.30 one occurrence of noncompliance. 111.31 (c) Sanctions for noncompliance shall be imposed as follows: 111.32 (1) For the first occurrence of noncompliance by a 111.33 participant in an assistance unit, the assistance unit's grant 111.34 shall be reduced by ten percent of the MFIP standard of need for 111.35 an assistance unit of the same size with the residual grant paid 111.36 to the participant. The reduction in the grant amount must be 112.1 in effect for a minimum of one month and shall be removed in the 112.2 month following the month that the participant returns to 112.3 compliance. 112.4 (2) For a second, third, fourth, fifth, or sixth occurrence 112.5 of noncompliance by a participant in an assistance unit, the 112.6 assistance unit's shelter costs shall be vendor paid up to the 112.7 amount of the cash portion of the MFIP grant for which the 112.8 assistance unit is eligible. At county option, the assistance 112.9 unit's utilities may also be vendor paid up to the amount of the 112.10 cash portion of the MFIP grant remaining after vendor payment of 112.11 the assistance unit's shelter costs. The residual amount of the 112.12 grant after vendor payment, if any, must be reduced by an amount 112.13 equal to 30 percent of the MFIP standard of need for an 112.14 assistance unit of the same size before the residual grant is 112.15 paid to the assistance unit. The reduction in the grant amount 112.16 must be in effect for a minimum of one month and shall be 112.17 removed in the month following the month that the participant in 112.18 a one-parent assistance unit returns to compliance. In a 112.19 two-parent assistance unit, the grant reduction must be in 112.20 effect for a minimum of one month and shall be removed in the 112.21 month following the month both participants return to 112.22 compliance. The vendor payment of shelter costs and, if 112.23 applicable, utilities shall be removed six months after the 112.24 month in which the participant or participants return to 112.25 compliance. If an assistance unit is sanctioned under this 112.26 clause, the participant's case file must be reviewed to 112.27 determine if the employment plan is still appropriate. 112.28 (d) For a seventh occurrence of noncompliance by a 112.29 participant in an assistance unit, or when the participants in a 112.30 two-parent assistance unit have a total of seven occurrences of 112.31 noncompliance, the county agency shall close the MFIP assistance 112.32 unit's financial assistance case, both the cash and food 112.33 portions, and redetermine the family's continued eligibility for 112.34 food support payments. The MFIP case must remain closed for a 112.35 minimum of one full month. Closure under this paragraph does112.36 not make a participant automatically ineligible for food113.1 support, if otherwise eligible.Before the case is closed, the 113.2 county agency must review the participant's case to determine if 113.3 the employment plan is still appropriate and attempt to meet 113.4 with the participant face-to-face. The participant may bring an 113.5 advocate to the face-to-face meeting. If a face-to-face meeting 113.6 is not conducted, the county agency must send the participant a 113.7 written notice that includes the information required under 113.8 clause (1). 113.9 (1) During the face-to-face meeting, the county agency must: 113.10 (i) determine whether the continued noncompliance can be 113.11 explained and mitigated by providing a needed preemployment 113.12 activity, as defined in section 256J.49, subdivision 13, clause 113.13 (9); 113.14 (ii) determine whether the participant qualifies for a good 113.15 cause exception under section 256J.57, or if the sanction is for 113.16 noncooperation with child support requirements, determine if the 113.17 participant qualifies for a good cause exemption under section 113.18 256.741, subdivision 10; 113.19 (iii) determine whether the participant qualifies for an 113.20 exemption under section 256J.56 or the work activities in the 113.21 employment plan are appropriate based on the criteria in section 113.22 256J.521, subdivision 2 or 3; 113.23 (iv) determine whether the participant qualifies for the 113.24 family violence waiver; 113.25 (v) inform the participant of the participant's sanction 113.26 status and explain the consequences of continuing noncompliance; 113.27 (vi) identify other resources that may be available to the 113.28 participant to meet the needs of the family; and 113.29 (vii) inform the participant of the right to appeal under 113.30 section 256J.40. 113.31 (2) If the lack of an identified activity or service can 113.32 explain the noncompliance, the county must work with the 113.33 participant to provide the identified activity. 113.34 (3) The grant must be restored to the full amount for which 113.35 the assistance unit is eligible retroactively to the first day 113.36 of the month in which the participant was found to lack 114.1 preemployment activities or to qualify for an exemption under 114.2 section 256J.56, a family violence waiver, or for a good cause 114.3 exemption under section 256.741, subdivision 10, or 256J.57. 114.4 (e) For the purpose of applying sanctions under this 114.5 section, only occurrences of noncompliance that occur after July 114.6 1, 2003, shall be considered. If the participant is in 30 114.7 percent sanction in the month this section takes effect, that 114.8 month counts as the first occurrence for purposes of applying 114.9 the sanctions under this section, but the sanction shall remain 114.10 at 30 percent for that month. 114.11 (f) An assistance unit whose case is closed under paragraph 114.12 (d) or (g), may reapply for MFIP and shall be eligible if the 114.13 participant complies with MFIP program requirements and 114.14 demonstrates compliance for up to one month. No assistance 114.15 shall be paid during this period. 114.16 (g) An assistance unit whose case has been closed for 114.17 noncompliance, that reapplies under paragraph (f), is subject to 114.18 sanction under paragraph (c), clause (2), for a first occurrence 114.19 of noncompliance. Any subsequent occurrence of noncompliance 114.20 shall result in case closure under paragraph (d). 114.21 Sec. 36. Minnesota Statutes 2003 Supplement, section 114.22 256J.49, subdivision 4, is amended to read: 114.23 Subd. 4. [EMPLOYMENT AND TRAINING SERVICE PROVIDER.] 114.24 "Employment and training service provider" means: 114.25 (1) a public, private, or nonprofit employment and training114.26 agency certified by the commissioner of economic security under114.27 sections 268.0122, subdivision 3, and 268.871, subdivision 1, or114.28 is approved under section 256J.51 and is included in the county114.29 service agreement submitted under section 256J.626, subdivision114.30 4;114.31 (2)a public, private, or nonprofit agency that is not114.32 certified by the commissioner under clause (1), butwith which a 114.33 county has contracted to provide employment and training 114.34 services and which is included in the county's service agreement 114.35 submitted under section 256J.626, subdivision 4; or 114.36 (3)(2) a county agency, if the county has opted to provide 115.1 employment and training services and the county has indicated 115.2 that fact in the service agreement submitted under section 115.3 256J.626, subdivision 4. 115.4 Notwithstanding section 268.871, an employment and training 115.5 services provider meeting this definition may deliver employment 115.6 and training services under this chapter. 115.7 Sec. 37. Minnesota Statutes 2003 Supplement, section 115.8 256J.515, is amended to read: 115.9 256J.515 [OVERVIEW OF EMPLOYMENT AND TRAINING SERVICES.] 115.10 During the first meeting with participants, job counselors 115.11 must ensure that an overview of employment and training services 115.12 is provided that: 115.13 (1) stresses the necessity and opportunity of immediate 115.14 employment; 115.15 (2) outlines the job search resources offered; 115.16 (3) outlines education or training opportunities available; 115.17 (4) describes the range of work activities, including 115.18 activities under section 256J.49, subdivision 13, clause (18), 115.19 that are allowable under MFIP to meet the individual needs of 115.20 participants; 115.21 (5) explains the requirements to comply with an employment 115.22 plan; 115.23 (6) explains the consequences for failing to comply; 115.24 (7) explains the services that are available to support job 115.25 search and work and education; and 115.26 (8) provides referral information about shelters and 115.27 programs for victims of family violence ,and the time limit 115.28 exemption , and waivers of regular employment and training115.29 requirementsfor family violence victims. 115.30 Failure to attend the overview of employment and training 115.31 services without good cause results in the imposition of a 115.32 sanction under section 256J.46. 115.33 An applicant who requests and qualifies for a family 115.34 violence waiver is exempt from attending a group overview. 115.35 Information usually presented in an overview must be covered 115.36 during the development of an employment plan under section 116.1 256J.521, subdivision 3. 116.2 Sec. 38. Minnesota Statutes 2003 Supplement, section 116.3 256J.521, subdivision 1, is amended to read: 116.4 Subdivision 1. [ASSESSMENTS.] (a) For purposes of MFIP 116.5 employment services, assessment is a continuing process of 116.6 gathering information related to employability for the purpose 116.7 of identifying both participant's strengths and strategies for 116.8 coping with issues that interfere with employment. The job 116.9 counselor must use information from the assessment process to 116.10 develop and update the employment plan under subdivision 2 or 3, 116.11 as appropriate, and to determine whether the participant 116.12 qualifies for a family violence waiver including an employment 116.13 plan under subdivision 3. 116.14 (b) The scope of assessment must cover at least the 116.15 following areas: 116.16 (1) basic information about the participant's ability to 116.17 obtain and retain employment, including: a review of the 116.18 participant's education level; interests, skills, and abilities; 116.19 prior employment or work experience; transferable work skills; 116.20 child care and transportation needs; 116.21 (2) identification of personal and family circumstances 116.22 that impact the participant's ability to obtain and retain 116.23 employment, including: any special needs of the children, the 116.24 level of English proficiency, family violence issues, and any 116.25 involvement with social services or the legal system; 116.26 (3) the results of a mental and chemical health screening 116.27 tool designed by the commissioner and results of the brief 116.28 screening tool for special learning needs. Screening tools for 116.29 mental and chemical health and special learning needs must be 116.30 approved by the commissioner and may only be administered by job 116.31 counselors or county staff trained in using such screening 116.32 tools. The commissioner shall work with county agencies to 116.33 develop protocols for referrals and follow-up actions after 116.34 screens are administered to participants, including guidance on 116.35 how employment plans may be modified based upon outcomes of 116.36 certain screens. Participants must be told of the purpose of 117.1 the screens and how the information will be used to assist the 117.2 participant in identifying and overcoming barriers to 117.3 employment. Screening for mental and chemical health and 117.4 special learning needs must be completed by participants who are 117.5 unable to find suitable employment after six weeks of job search 117.6 under subdivision 2, paragraph (b), and participants who are 117.7 determined to have barriers to employment under subdivision 2, 117.8 paragraph (d). Failure to complete the screens will result in 117.9 sanction under section 256J.46; and 117.10 (4) a comprehensive review of participation and progress 117.11 for participants who have received MFIP assistance and have not 117.12 worked in unsubsidized employment during the past 12 months. 117.13 The purpose of the review is to determine the need for 117.14 additional services and supports, including placement in 117.15 subsidized employment or unpaid work experience under section 117.16 256J.49, subdivision 13. 117.17 (c) Information gathered during a caregiver's participation 117.18 in the diversionary work program under section 256J.95 must be 117.19 incorporated into the assessment process. 117.20 (d) The job counselor may require the participant to 117.21 complete a professional chemical use assessment to be performed 117.22 according to the rules adopted under section 254A.03, 117.23 subdivision 3, including provisions in the administrative rules 117.24 which recognize the cultural background of the participant, or a 117.25 professional psychological assessment as a component of the 117.26 assessment process, when the job counselor has a reasonable 117.27 belief, based on objective evidence, that a participant's 117.28 ability to obtain and retain suitable employment is impaired by 117.29 a medical condition. The job counselor may assist the 117.30 participant with arranging services, including child care 117.31 assistance and transportation, necessary to meet needs 117.32 identified by the assessment. Data gathered as part of a 117.33 professional assessment must be classified and disclosed 117.34 according to the provisions in section 13.46. 117.35 Sec. 39. Minnesota Statutes 2003 Supplement, section 117.36 256J.521, subdivision 2, is amended to read: 118.1 Subd. 2. [EMPLOYMENT PLAN; CONTENTS.] (a) Based on the 118.2 assessment under subdivision 1, the job counselor and the 118.3 participant must develop an employment plan that includes 118.4 participation in activities and hours that meet the requirements 118.5 of section 256J.55, subdivision 1. The purpose of the 118.6 employment plan is to identify for each participant the most 118.7 direct path to unsubsidized employment and any subsequent steps 118.8 that support long-term economic stability. The employment plan 118.9 should be developed using the highest level of activity 118.10 appropriate for the participant. Activities must be chosen from 118.11 clauses (1) to (6), which are listed in order of preference. 118.12 Notwithstanding this order of preference for activities, 118.13 priority must be given for activities related to a family 118.14 violence waiver when developing the employment plan. The 118.15 employment plan must also list the specific steps the 118.16 participant will take to obtain employment, including steps 118.17 necessary for the participant to progress from one level of 118.18 activity to another, and a timetable for completion of each 118.19 step. Levels of activity include: 118.20 (1) unsubsidized employment; 118.21 (2) job search; 118.22 (3) subsidized employment or unpaid work experience; 118.23 (4) unsubsidized employment and job readiness education or 118.24 job skills training; 118.25 (5) unsubsidized employment or unpaid work experience and 118.26 activities related to a family violence waiver or preemployment 118.27 needs; and 118.28 (6) activities related to a family violence waiver or 118.29 preemployment needs. 118.30 (b) Participants who are determined to possess sufficient 118.31 skills such that the participant is likely to succeed in 118.32 obtaining unsubsidized employment must job search at least 30 118.33 hours per week for up to six weeks and accept any offer of 118.34 suitable employment. The remaining hours necessary to meet the 118.35 requirements of section 256J.55, subdivision 1, may be met 118.36 through participation in other work activities under section 119.1 256J.49, subdivision 13. The participant's employment plan must 119.2 specify, at a minimum: (1) whether the job search is supervised 119.3 or unsupervised; (2) support services that will be provided; and 119.4 (3) how frequently the participant must report to the job 119.5 counselor. Participants who are unable to find suitable 119.6 employment after six weeks must meet with the job counselor to 119.7 determine whether other activities in paragraph (a) should be 119.8 incorporated into the employment plan. Job search activities 119.9 which are continued after six weeks must be structured and 119.10 supervised. 119.11 (c) Beginning July 1, 2004, activities and hourly 119.12 requirements in the employment plan may be adjusted as necessary 119.13 to accommodate the personal and family circumstances of 119.14 participants identified under section 256J.561, subdivision 2, 119.15 paragraph (d). Participants who no longer meet the provisions 119.16 of section 256J.561, subdivision 2, paragraph (d), must meet 119.17 with the job counselor within ten days of the determination to 119.18 revise the employment plan. 119.19 (d) Participants who are determined to have barriers to 119.20 obtaining or retaining employment that will not be overcome 119.21 during six weeks of job search under paragraph (b) must work 119.22 with the job counselor to develop an employment plan that 119.23 addresses those barriers by incorporating appropriate activities 119.24 from paragraph (a), clauses (1) to (6). The employment plan 119.25 must include enough hours to meet the participation requirements 119.26 in section 256J.55, subdivision 1, unless a compelling reason to 119.27 require fewer hours is noted in the participant's file. 119.28 (e) The job counselor and the participant must sign the 119.29 employment plan to indicate agreement on the contents. Failure 119.30 to develop or comply with activities in the plan, or voluntarily 119.31 quitting suitable employment without good cause, will result in 119.32 the imposition of a sanction under section 256J.46. 119.33 (f) Employment plans must be reviewed at least every three 119.34 months to determine whether activities and hourly requirements 119.35 should be revised. 119.36 Sec. 40. Minnesota Statutes 2003 Supplement, section 120.1 256J.53, subdivision 2, is amended to read: 120.2 Subd. 2. [APPROVAL OF POSTSECONDARY EDUCATION OR 120.3 TRAINING.] (a) In order for a postsecondary education or 120.4 training program to be an approved activity in an employment 120.5 plan, the participant must be working in unsubsidized employment 120.6 at least 20 hours per week. 120.7 (b) Participants seeking approval of a postsecondary 120.8 education or training plan must provide documentation that: 120.9 (1) the employment goal can only be met with the additional 120.10 education or training; 120.11 (2) there are suitable employment opportunities that 120.12 require the specific education or training in the area in which 120.13 the participant resides or is willing to reside; 120.14 (3) the education or training will result in significantly 120.15 higher wages for the participant than the participant could earn 120.16 without the education or training; 120.17 (4) the participant can meet the requirements for admission 120.18 into the program; and 120.19 (5) there is a reasonable expectation that the participant 120.20 will complete the training program based on such factors as the 120.21 participant's MFIP assessment, previous education, training, and 120.22 work history; current motivation; and changes in previous 120.23 circumstances. 120.24 (c) The hourly unsubsidized employment requirement may be120.25 reduceddoes not apply for intensive education or training 120.26 programs lasting 12 weeks or less when full-time attendance is 120.27 required. 120.28 (d) Participants with an approved employment plan in place 120.29 on July 1, 2003, which includes more than 12 months of 120.30 postsecondary education or training shall be allowed to complete 120.31 that plan provided that hourly requirements in section 256J.55, 120.32 subdivision 1, and conditions specified in paragraph (b), and 120.33 subdivisions 3 and 5 are met. A participant whose case is 120.34 subsequently closed for three months or less for reasons other 120.35 than noncompliance with program requirements and who return to 120.36 MFIP shall be allowed to complete that plan provided that hourly 121.1 requirements in section 256J.55, subdivision 1, and conditions 121.2 specified in paragraph (b) and subdivisions 3 and 5 are met. 121.3 Sec. 41. Minnesota Statutes 2003 Supplement, section 121.4 256J.56, is amended to read: 121.5 256J.56 [EMPLOYMENT AND TRAINING SERVICES COMPONENT; 121.6 EXEMPTIONS.] 121.7 (a) An MFIPParagraphs (b) and (c) apply only to an MFIP 121.8 participant who was exempt from participating in employment 121.9 services as of June 30, 2004, has not been required to develop 121.10 an employment plan under section 256J.561, and continues to 121.11 qualify for an exemption under this section. All exemptions 121.12 under this section expire at the time of the participant's 121.13 recertification. No new exemptions shall be granted under this 121.14 section after June 30, 2004. 121.15 (b) A participant is exempt from the requirements of 121.16 sections 256J.515 to 256J.57 if the participant belongs121.17 continues to belong to any of the following groups: 121.18 (1) participants who are age 60 or older; 121.19 (2) participants who are suffering from a permanent or 121.20 temporary illness, injury, or incapacity which has been 121.21 certified by a qualified professional when the illness, injury, 121.22 or incapacity is expected to continue for more than 30 days and 121.23 prevents the person from obtaining or retaining employment. 121.24 Persons in this category with a temporary illness, injury, or 121.25 incapacity must be reevaluated at least quarterly; 121.26 (3) participants whose presence in the home is required as 121.27 a caregiver because of the illness, injury, or incapacity of 121.28 another member in the assistance unit, a relative in the 121.29 household, or a foster child in the household when the illness 121.30 or incapacity and the need for a person to provide assistance in 121.31 the home has been certified by a qualified professional and is 121.32 expected to continue for more than 30 days; 121.33 (4) women who are pregnant, if the pregnancy has resulted 121.34 in an incapacity that prevents the woman from obtaining or 121.35 retaining employment, and the incapacity has been certified by a 121.36 qualified professional; 122.1 (5) caregivers of a child under the age of one year who 122.2 personally provide full-time care for the child. This exemption 122.3 may be used for only 12 months in a lifetime. In two-parent 122.4 households, only one parent or other relative may qualify for 122.5 this exemption; 122.6 (6) participants experiencing a personal or family crisis 122.7 that makes them incapable of participating in the program, as 122.8 determined by the county agency. If the participant does not 122.9 agree with the county agency's determination, the participant 122.10 may seek certification from a qualified professional, as defined 122.11 in section 256J.08, that the participant is incapable of 122.12 participating in the program. 122.13 Persons in this exemption category must be reevaluated 122.14 every 60 days. A personal or family crisis related to family 122.15 violence, as determined by the county or a job counselor with 122.16 the assistance of a person trained in domestic violence, should 122.17 not result in an exemption, but should be addressed through the 122.18 development or revision of an employment plan under section 122.19 256J.521, subdivision 3; or 122.20 (7) caregivers with a child or an adult in the household 122.21 who meets the disability or medical criteria for home care 122.22 services under section 256B.0627, subdivision 1, paragraph (f), 122.23 or a home and community-based waiver services program under 122.24 chapter 256B, or meets the criteria for severe emotional 122.25 disturbance under section 245.4871, subdivision 6, or for 122.26 serious and persistent mental illness under section 245.462, 122.27 subdivision 20, paragraph (c). Caregivers in this exemption 122.28 category are presumed to be prevented from obtaining or 122.29 retaining employment. 122.30 A caregiver who is exempt under clause (5) must enroll in 122.31 and attend an early childhood and family education class, a 122.32 parenting class, or some similar activity, if available, during 122.33 the period of time the caregiver is exempt under this section. 122.34 Notwithstanding section 256J.46, failure to attend the required 122.35 activity shall not result in the imposition of a sanction. 122.36 (b)(c) The county agency must provide employment and 123.1 training services to MFIP participants who are exempt under this 123.2 section, but who volunteer to participate. Exempt volunteers 123.3 may request approval for any work activity under section 123.4 256J.49, subdivision 13. The hourly participation requirements 123.5 for nonexempt participants under section 256J.55, subdivision 1, 123.6 do not apply to exempt participants who volunteer to participate. 123.7 (c)(d) This section expires on June 30, 20042005. 123.8 Sec. 42. Minnesota Statutes 2003 Supplement, section 123.9 256J.57, subdivision 1, is amended to read: 123.10 Subdivision 1. [GOOD CAUSE FOR FAILURE TO COMPLY.] The 123.11 county agency shall not impose the sanction under section 123.12 256J.46 if it determines that the participant has good cause for 123.13 failing to comply with the requirements of sections 256J.515 to 123.14 256J.57. Good cause exists when: 123.15 (1) appropriate child care is not available; 123.16 (2) the job does not meet the definition of suitable 123.17 employment; 123.18 (3) the participant is ill or injured; 123.19 (4) a member of the assistance unit, a relative in the 123.20 household, or a foster child in the household is ill and needs 123.21 care by the participant that prevents the participant from 123.22 complying with the employment plan; 123.23 (5) the parental caregiverparticipant is unable to secure 123.24 necessary transportation; 123.25 (6) the parental caregiverparticipant is in an emergency 123.26 situation that prevents compliance with the employment plan; 123.27 (7) the schedule of compliance with the employment plan 123.28 conflicts with judicial proceedings; 123.29 (8) a mandatory MFIP meeting is scheduled during a time 123.30 that conflicts with a judicial proceeding or a meeting related 123.31 to a juvenile court matter, or a participant's work schedule; 123.32 (9) the parental caregiverparticipant is already 123.33 participating in acceptable work activities; 123.34 (10) the employment plan requires an educational program 123.35 for a caregiver under age 20, but the educational program is not 123.36 available; 124.1 (11) activities identified in the employment plan are not 124.2 available; 124.3 (12) the parental caregiverparticipant is willing to 124.4 accept suitable employment, but suitable employment is not 124.5 available; or 124.6 (13) the parental caregiverparticipant documents other 124.7 verifiable impediments to compliance with the employment plan 124.8 beyond the parental caregiver'sparticipant's control. 124.9 The job counselor shall work with the participant to 124.10 reschedule mandatory meetings for individuals who fall under 124.11 clauses (1), (3), (4), (5), (6), (7), and (8). 124.12 Sec. 43. Minnesota Statutes 2003 Supplement, section 124.13 256J.626, subdivision 2, is amended to read: 124.14 Subd. 2. [ALLOWABLE EXPENDITURES.] (a) The commissioner 124.15 must restrict expenditures under the consolidated fund to 124.16 benefits and services allowed under title IV-A of the federal 124.17 Social Security Act. Allowable expenditures under the 124.18 consolidated fund may include, but are not limited to: 124.19 (1) short-term, nonrecurring shelter and utility needs that 124.20 are excluded from the definition of assistance under Code of 124.21 Federal Regulations, title 45, section 260.31, for families who 124.22 meet the residency requirement in section 256J.12, subdivisions 124.23 1 and 1a. Payments under this subdivision are not considered 124.24 TANF cash assistance and are not counted towards the 60-month 124.25 time limit; 124.26 (2) transportation needed to obtain or retain employment or 124.27 to participate in other approved work activities; 124.28 (3) direct and administrative costs of staff to deliver 124.29 employment services for MFIP or the diversionary work program, 124.30 to administer financial assistance, and to provide specialized 124.31 services intended to assist hard-to-employ participants to 124.32 transition to work; 124.33 (4) costs of education and training including functional 124.34 work literacy and English as a second language; 124.35 (5) cost of work supports including tools, clothing, boots, 124.36 and other work-related expenses; 125.1 (6) county administrative expenses as defined in Code of 125.2 Federal Regulations, title 45, section 260(b); 125.3 (7) services to parenting and pregnant teens; 125.4 (8) supported work; 125.5 (9) wage subsidies; 125.6 (10) child care needed for MFIP or diversionary work 125.7 program participants to participate in social services; 125.8 (11) child care to ensure that families leaving MFIP or 125.9 diversionary work program will continue to receive child care 125.10 assistance from the time the family no longer qualifies for 125.11 transition year child care until an opening occurs under the 125.12 basic sliding fee child care program; and 125.13 (12) services to help noncustodial parents who live in 125.14 Minnesota and have minor children receiving MFIP or DWP 125.15 assistance, but do not live in the same household as the child, 125.16 obtain or retain employment. 125.17 (b) Administrative costs that are not matched with county 125.18 funds as provided in subdivision 8 may not exceed 7.5 percent of 125.19 a county's or 15 percent of a tribe's reimbursementallocation 125.20 under this section. The commissioner shall define 125.21 administrative costs for purposes of this subdivision. 125.22 Sec. 44. Minnesota Statutes 2003 Supplement, section 125.23 256J.751, subdivision 2, is amended to read: 125.24 Subd. 2. [QUARTERLY COMPARISON REPORT.] The commissioner 125.25 shall report quarterly to all counties on each county's 125.26 performance on the following measures: 125.27 (1) percent of MFIP caseload working in paid employment; 125.28 (2) percent of MFIP caseload receiving only the food 125.29 portion of assistance; 125.30 (3) number of MFIP cases that have left assistance; 125.31 (4) federal participation requirements as specified in 125.32 Title 1 of Public Law 104-193; 125.33 (5) median placement wage rate; 125.34 (6) caseload by months of TANF assistance; 125.35 (7) percent of MFIP and diversionary work program (DWP) 125.36 cases off cash assistance or working 30 or more hours per week 126.1 at one-year, two-year, and three-year follow-up points from a 126.2 baseline quarter. This measure is called the self-support 126.3 index. Twice annually, the commissioner shall report an 126.4 expected range of performance for each county, county grouping, 126.5 and tribe on the self-support index. The expected range shall 126.6 be derived by a statistical methodology developed by the 126.7 commissioner in consultation with the counties and tribes. The 126.8 statistical methodology shall control differences across 126.9 counties in economic conditions and demographics of the MFIP and 126.10 DWP case load; and 126.11 (8) the MFIP work participation rate, defined as the 126.12 participation requirements specified in title 1 of Public Law 126.13 104-193 applied to all MFIP cases except child only cases and 126.14 cases exempt under section 256J.56. 126.15 Sec. 45. Minnesota Statutes 2003 Supplement, section 126.16 256J.95, subdivision 1, is amended to read: 126.17 Subdivision 1. [ESTABLISHING A DIVERSIONARY WORK PROGRAM 126.18 (DWP).] (a) The Personal Responsibility and Work Opportunity 126.19 Reconciliation Act of 1996, Public Law 104-193, establishes 126.20 block grants to states for temporary assistance for needy 126.21 families (TANF). TANF provisions allow states to use TANF 126.22 dollars for nonrecurrent, short-term diversionary benefits. The 126.23 diversionary work program established on July 1, 2003, is 126.24 Minnesota's TANF program to provide short-term diversionary 126.25 benefits to eligible recipients of the diversionary work program. 126.26 (b) The goal of the diversionary work program is to provide 126.27 short-term, necessary services and supports to families which 126.28 will lead to unsubsidized employment, increase economic 126.29 stability, and reduce the risk of those families needing longer 126.30 term assistance, under the Minnesota family investment program 126.31 (MFIP). 126.32 (c) When a family unit meets the eligibility criteria in 126.33 this section, the family must receive a diversionary work 126.34 program grant and is not eligible for MFIP. 126.35 (d) A family unit is eligible for the diversionary work 126.36 program for a maximum of four consecutive months only once in a127.1 12-month period. The 12-month period begins at the date of127.2 application or the date eligibility is met, whichever is later. 127.3 During the four-month periodfour consecutive months, family 127.4 maintenance needs as defined in subdivision 2, shall be vendor 127.5 paid, up to the cash portion of the MFIP standard of need for 127.6 the same size household. To the extent there is a balance 127.7 available between the amount paid for family maintenance needs 127.8 and the cash portion of the transitional standard, a personal 127.9 needs allowance of up to $70 per DWP recipient in the family 127.10 unit shall be issued. The personal needs allowance payment plus 127.11 the family maintenance needs shall not exceed the cash portion 127.12 of the MFIP standard of need. Counties may provide supportive 127.13 and other allowable services funded by the MFIP consolidated 127.14 fund under section 256J.626 to eligible participants during the 127.15 four-month diversionary period. 127.16 Sec. 46. Minnesota Statutes 2003 Supplement, section 127.17 256J.95, subdivision 3, is amended to read: 127.18 Subd. 3. [ELIGIBILITY FOR DIVERSIONARY WORK PROGRAM.] (a) 127.19 Except for the categories of family units listed below, all 127.20 family units who apply for cash benefits and who meet MFIP 127.21 eligibility as required in sections 256J.11 to 256J.15 are 127.22 eligible and must participate in the diversionary work program. 127.23 Family units that are not eligible for the diversionary work 127.24 program include: 127.25 (1) child only cases; 127.26 (2) a single-parent family unit that includes a child under 127.27 12 weeks of age. A parent is eligible for this exception once 127.28 in a parent's lifetime and is not eligible if the parent has 127.29 already used the previously allowed child under age one 127.30 exemption from MFIP employment services; 127.31 (3) a minor parent without a high school diploma or its 127.32 equivalent; 127.33 (4) a caregiveran 18 or 19 years of ageyear-old caregiver 127.34 without a high school diploma or its equivalent who chooses to 127.35 have an employment plan with an education option; 127.36 (5) a caregiver age 60 or over; 128.1 (6) family units with a parentcaregiver who received DWP 128.2 benefits within a 12-month period as defined in subdivision 1,128.3 paragraph (d)in the 12 months prior to the month the family 128.4 applied for DWP, except as provided in paragraph (c); and128.5 (7) family units with a parentcaregiver who received MFIP 128.6 within the past12 months prior to the month the family unit 128.7 applied for DWP; 128.8 (8) a family unit with a caregiver who received 60 or more 128.9 months of TANF assistance; and 128.10 (9) a family unit with a caregiver who is disqualified from 128.11 DWP or MFIP due to fraud. 128.12 (b) A two-parent family must participate in DWP unless both 128.13 parentscaregivers meet the criteria for an exception under 128.14 paragraph (a), clauses (1) through (5), or the family unit 128.15 includes a parent who meets the criteria in paragraph (a), 128.16 clause (6) or, (7), (8), or (9). 128.17 (c) Once DWP eligibility is determined, the four months run 128.18 consecutively. If a participant leaves the program for any 128.19 reason and reapplies during the four-month period, the county 128.20 must redetermine eligibility for DWP. 128.21 Sec. 47. Minnesota Statutes 2003 Supplement, section 128.22 256J.95, subdivision 11, is amended to read: 128.23 Subd. 11. [UNIVERSAL PARTICIPATION REQUIRED.] (a) All DWP 128.24 caregivers, except caregivers who meet the criteria in paragraph 128.25 (d), are required to participate in DWP employment services. 128.26 Except as specified in paragraphs (b) and (c), employment plans 128.27 under DWP must, at a minimum, meet the requirements in section 128.28 256J.55, subdivision 1. 128.29 (b) A caregiver who is a member of a two-parent family that 128.30 is required to participate in DWP who would otherwise be 128.31 ineligible for DWP under subdivision 3 may be allowed to develop 128.32 an employment plan under section 256J.521, subdivision 2, 128.33 paragraph (c), that may contain alternate activities and reduced 128.34 hours. 128.35 (c) A participant who hasis a victim of family violence 128.36 waivershall be allowed to develop an employment plan under 129.1 section 256J.521, subdivision 3. A claim of family violence 129.2 must be documented by the applicant or participant by providing 129.3 a sworn statement which is supported by collateral documentation 129.4 in section 256J.545, paragraph (b). 129.5 (d) One parent in a two-parent family unit that has a 129.6 natural born child under 12 weeks of age is not required to have 129.7 an employment plan until the child reaches 12 weeks of age 129.8 unless the family unit has already used the exclusion under 129.9 section 256J.561, subdivision 2, or the previously allowed child 129.10 under age one exemption under section 256J.56, paragraph (a), 129.11 clause (5). 129.12 (e) The provision in paragraph (d) ends the first full 129.13 month after the child reaches 12 weeks of age. This provision 129.14 is allowable only once in a caregiver's lifetime. In a 129.15 two-parent household, only one parent shall be allowed to use 129.16 this category. 129.17 (f) The participant and job counselor must meet within ten 129.18 working days after the child reaches 12 weeks of age to revise 129.19 the participant's employment plan. The employment plan for a 129.20 family unit that has a child under 12 weeks of age that has 129.21 already used the exclusion in section 256J.561 or the previously 129.22 allowed child under age one exemption under section 256J.56, 129.23 paragraph (a), clause (5), must be tailored to recognize the 129.24 caregiving needs of the parent. 129.25 Sec. 48. Minnesota Statutes 2003 Supplement, section 129.26 256J.95, subdivision 12, is amended to read: 129.27 Subd. 12. [CONVERSION OR REFERRAL TO MFIP.] (a) If at any 129.28 time during the DWP application process or during the four-month 129.29 DWP eligibility period, it is determined that a participant is 129.30 unlikely to benefit from the diversionary work program, the 129.31 county shall convert or refer the participant to MFIP as 129.32 specified in paragraph (d). Participants who are determined to 129.33 be unlikely to benefit from the diversionary work program must 129.34 develop and sign an employment plan. Participants who meet any 129.35 one of the criteria in paragraph (b) shall be considered to be 129.36 unlikely to benefit from DWP, provided the necessary 130.1 documentation is available to support the determination. 130.2 (b) A participant who: 130.3 (1) has been determined by a qualified professional as 130.4 being unable to obtain or retain employment due to an illness, 130.5 injury, or incapacity that is expected to last at least 60 days; 130.6 (2) is required in the home as a caregiver because of the 130.7 illness, injury, or incapacity, of a family member, or a 130.8 relative in the household, or a foster child, and the illness, 130.9 injury, or incapacity and the need for a person to provide 130.10 assistance in the home has been certified by a qualified 130.11 professional and is expected to continue more than 60 days; 130.12 (3) is determined by a qualified professional as being 130.13 needed in the home to care for a child or adult meeting the 130.14 special medical criteria in section 256J.425256J.561, 130.15 subdivision 2, paragraph (d), clause (3); 130.16 (4) is pregnant and is determined by a qualified 130.17 professional as being unable to obtain or retain employment due 130.18 to the pregnancy; or 130.19 (5) has applied for SSI or RSDISSDI. 130.20 (c) In a two-parent family unit, both parents must be 130.21 determined to be unlikely to benefit from the diversionary work 130.22 program before the family unit can be converted or referred to 130.23 MFIP. 130.24 (d) A participant who is determined to be unlikely to 130.25 benefit from the diversionary work program shall be converted to 130.26 MFIP and, if the determination was made within 30 days of the 130.27 initial application for benefits, no additional application form 130.28 is required. A participant who is determined to be unlikely to 130.29 benefit from the diversionary work program shall be referred to 130.30 MFIP and, if the determination is made more than 30 days after 130.31 the initial application, the participant must submit a program 130.32 change request form. The county agency shall process the 130.33 program change request form by the first of the following month 130.34 to ensure that no gap in benefits is due to delayed action by 130.35 the county agency. In processing the program change request 130.36 form, the county must follow section 256J.32, subdivision 1, 131.1 except that the county agency shall not require additional 131.2 verification of the information in the case file from the DWP 131.3 application unless the information in the case file is 131.4 inaccurate, questionable, or no longer current. 131.5 (e) The county shall not request a combined application 131.6 form for a participant who has exhausted the four months of the 131.7 diversionary work program, has continued need for cash and food 131.8 assistance, and has completed, signed, and submitted a program 131.9 change request form within 30 days of the fourth month of the 131.10 diversionary work program. The county must process the program 131.11 change request according to section 256J.32, subdivision 1, 131.12 except that the county agency shall not require additional 131.13 verification of information in the case file unless the 131.14 information is inaccurate, questionable, or no longer current. 131.15 When a participant does not request MFIP within 30 days of the 131.16 diversionary work program benefits being exhausted, a new 131.17 combined application form must be completed for any subsequent 131.18 request for MFIP. 131.19 Sec. 49. Minnesota Statutes 2003 Supplement, section 131.20 256J.95, subdivision 19, is amended to read: 131.21 Subd. 19. [ RECOVERY OFDWP OVERPAYMENTS AND 131.22 UNDERPAYMENTS.] WhenDWP benefits are subject to overpayments 131.23 and underpayments. Anytime an overpayment or an ATM error131.24 underpayment is determined for DWP, the overpaymentcorrection 131.25 shall be recouped orcalculated using prospective budgeting. 131.26 Corrections shall be determined based on the policy in section 131.27 256J.34, subdivision 1, paragraphs (a), (b), and (c), and 131.28 subdivision 3, paragraph (b), clause (1). ATM errors must be 131.29 recovered as specified in section 256J.38, subdivision 5. DWP 131.30 overpayments are not subject to cross program recoupment. 131.31 Sec. 50. [REPEALER.] 131.32 (a) Minnesota Statutes 2002, sections 119B.211 and 131.33 256D.051, subdivision 17, are repealed. 131.34 (b) Laws 2000, chapter 489, article 1, section 36, is 131.35 repealed. 131.36 ARTICLE 5 132.1 LONG-TERM CARE 132.2 Section 1. Minnesota Statutes 2003 Supplement, section 132.3 245A.11, subdivision 2a, is amended to read: 132.4 Subd. 2a. [ADULT FOSTER CARE LICENSE CAPACITY.] (a) An 132.5 adult foster care license holder may have a maximum license 132.6 capacity of five if all persons in care are age 55 or over and 132.7 do not have a serious and persistent mental illness or a 132.8 developmental disability. 132.9 (b) The commissioner may grant variances to paragraph (a) 132.10 to allow a foster care provider with a licensed capacity of five 132.11 persons to admit an individual under the age of 55 if the 132.12 variance complies with section 245A.04, subdivision 9, and 132.13 approval of the variance is recommended by the county in which 132.14 the licensed foster care provider is located. 132.15 (c) The commissioner may grant variances to paragraph (a) 132.16 to allow the use of a fifth bed for emergency crisis services 132.17 for a person with serious and persistent mental illness or a 132.18 developmental disability, regardless of age, if the variance 132.19 complies with section 245A.04, subdivision 9, and approval of 132.20 the variance is recommended by the county in which the licensed 132.21 foster care provider is located. 132.22 (d) Notwithstanding paragraph (a), the commissioner may 132.23 issue an adult foster care license with a capacity of five 132.24 adults when the capacity is recommended by the county licensing 132.25 agency of the county in which the facility is located and if the 132.26 recommendation verifies that: 132.27 (1) the facility meets the physical environment 132.28 requirements in the adult foster care licensing rule; 132.29 (2) the five-bed living arrangement is specified for each 132.30 resident in the resident's: 132.31 (i) individualized plan of care; 132.32 (ii) individual service plan under section 256B.092, 132.33 subdivision 1b, if required; or 132.34 (iii) individual resident placement agreement under 132.35 Minnesota Rules, part 9555.5105, subpart 19, if required; 132.36 (3) the license holder obtains written and signed informed 133.1 consent from each resident or resident's legal representative 133.2 documenting the resident's informed choice to living in the home 133.3 and that the resident's refusal to consent would not have 133.4 resulted in service termination; and 133.5 (4) the facility was licensed for adult foster care before 133.6 March 1, 2003. 133.7 (e) The commissioner shall not issue a new adult foster 133.8 care license under paragraph (d) after June 30, 2005. The 133.9 commissioner shall allow a facility with an adult foster care 133.10 license issued under paragraph (d) before June 30, 2005, to 133.11 continue with a capacity of five or sixadults if the license 133.12 holder continues to comply with the requirements in paragraph 133.13 (d). 133.14 Sec. 2. Minnesota Statutes 2002, section 256B.0625, is 133.15 amended by adding a subdivision to read: 133.16 Subd. 2a. [SKILLED NURSING FACILITY AND HOSPICE SERVICES 133.17 FOR DUAL ELIGIBLES.] Medical assistance covers skilled nursing 133.18 facility services for individuals eligible for both medical 133.19 assistance and Medicare who have waived the Medicare skilled 133.20 nursing facility room and board benefit and have enrolled in the 133.21 Medicare hospice program. Medical assistance covers skilled 133.22 nursing facility services regardless of whether an individual 133.23 enrolled in the Medicare hospice program prior to, on, or after 133.24 the date of the hospitalization that qualified the individual 133.25 for Medicare skilled nursing facility services. 133.26 Sec. 3. Minnesota Statutes 2002, section 256B.0911, 133.27 subdivision 4a, is amended to read: 133.28 Subd. 4a. [PREADMISSION SCREENING ACTIVITIES RELATED TO 133.29 NURSING FACILITY ADMISSIONS.] (a) All applicants to Medicaid 133.30 certified nursing facilities, including certified boarding care 133.31 facilities, must be screened prior to admission regardless of 133.32 income, assets, or funding sources for nursing facility care, 133.33 except as described in subdivision 4b. The purpose of the 133.34 screening is to determine the need for nursing facility level of 133.35 care as described in paragraph (d) and to complete activities 133.36 required under federal law related to mental illness and mental 134.1 retardation as outlined in paragraph (b). 134.2 (b) A person who has a diagnosis or possible diagnosis of 134.3 mental illness, mental retardation, or a related condition must 134.4 receive a preadmission screening before admission regardless of 134.5 the exemptions outlined in subdivision 4b, paragraph (b), to 134.6 identify the need for further evaluation and specialized 134.7 services, unless the admission prior to screening is authorized 134.8 by the local mental health authority or the local developmental 134.9 disabilities case manager, or unless authorized by the county 134.10 agency according to Public Law 100-508101-508. 134.11 The following criteria apply to the preadmission screening: 134.12 (1) the county must use forms and criteria developed by the 134.13 commissioner to identify persons who require referral for 134.14 further evaluation and determination of the need for specialized 134.15 services; and 134.16 (2) the evaluation and determination of the need for 134.17 specialized services must be done by: 134.18 (i) a qualified independent mental health professional, for 134.19 persons with a primary or secondary diagnosis of a serious 134.20 mental illness; or 134.21 (ii) a qualified mental retardation professional, for 134.22 persons with a primary or secondary diagnosis of mental 134.23 retardation or related conditions. For purposes of this 134.24 requirement, a qualified mental retardation professional must 134.25 meet the standards for a qualified mental retardation 134.26 professional under Code of Federal Regulations, title 42, 134.27 section 483.430. 134.28 (c) The local county mental health authority or the state 134.29 mental retardation authority under Public Law Numbers 100-203 134.30 and 101-508 may prohibit admission to a nursing facility if the 134.31 individual does not meet the nursing facility level of care 134.32 criteria or needs specialized services as defined in Public Law 134.33 Numbers 100-203 and 101-508. For purposes of this section, 134.34 "specialized services" for a person with mental retardation or a 134.35 related condition means active treatment as that term is defined 134.36 under Code of Federal Regulations, title 42, section 483.440 135.1 (a)(1). 135.2 (d) The determination of the need for nursing facility 135.3 level of care must be made according to criteria developed by 135.4 the commissioner. In assessing a person's needs, consultation 135.5 team members shall have a physician available for consultation 135.6 and shall consider the assessment of the individual's attending 135.7 physician, if any. The individual's physician must be included 135.8 if the physician chooses to participate. Other personnel may be 135.9 included on the team as deemed appropriate by the county. 135.10 Sec. 4. Minnesota Statutes 2003 Supplement, section 135.11 256B.0915, subdivision 3a, is amended to read: 135.12 Subd. 3a. [ELDERLY WAIVER COST LIMITS.] (a) The monthly 135.13 limit for the cost of waivered services to an individual elderly 135.14 waiver client shall be the weighted average monthly nursing 135.15 facility rate of the case mix resident class to which the 135.16 elderly waiver client would be assigned under Minnesota Rules, 135.17 parts 9549.0050 to 9549.0059, less the recipient's maintenance 135.18 needs allowance as described in subdivision 1d, paragraph (a), 135.19 until the first day of the state fiscal year in which the 135.20 resident assessment system as described in section 256B.437 for 135.21 nursing home rate determination is implemented. Effective on 135.22 the first day of the state fiscal year in which the resident 135.23 assessment system as described in section 256B.437 for nursing 135.24 home rate determination is implemented and the first day of each 135.25 subsequent state fiscal year, the monthly limit for the cost of 135.26 waivered services to an individual elderly waiver client shall 135.27 be the rate of the case mix resident class to which the waiver 135.28 client would be assigned under Minnesota Rules, parts 9549.0050 135.29 to 9549.0059, in effect on the last day of the previous state 135.30 fiscal year, adjusted by the greater of any legislatively 135.31 adopted home and community-based services cost-of-living135.32 percentage rate increase or any legislatively adoptedthe 135.33 average statewide percent ratepercentage increase forin 135.34 nursing facilitiesfacility payment rates. 135.35 (b) If extended medical supplies and equipment or 135.36 environmental modifications are or will be purchased for an 136.1 elderly waiver client, the costs may be prorated for up to 12 136.2 consecutive months beginning with the month of purchase. If the 136.3 monthly cost of a recipient's waivered services exceeds the 136.4 monthly limit established in paragraph (a), the annual cost of 136.5 all waivered services shall be determined. In this event, the 136.6 annual cost of all waivered services shall not exceed 12 times 136.7 the monthly limit of waivered services as described in paragraph 136.8 (a). 136.9 Sec. 5. Minnesota Statutes 2003 Supplement, section 136.10 256B.0915, subdivision 3b, is amended to read: 136.11 Subd. 3b. [COST LIMITS FOR ELDERLY WAIVER APPLICANTS WHO 136.12 RESIDE IN A NURSING FACILITY.] (a) For a person who is a nursing 136.13 facility resident at the time of requesting a determination of 136.14 eligibility for elderly waivered services, a monthly conversion 136.15 limit for the cost of elderly waivered services may be 136.16 requested. The monthly conversion limit for the cost of elderly 136.17 waiver services shall be the resident class assigned under 136.18 Minnesota Rules, parts 9549.0050 to 9549.0059, for that resident 136.19 in the nursing facility where the resident currently resides 136.20 until July 1 of the state fiscal year in which the resident 136.21 assessment system as described in section 256B.437 for nursing 136.22 home rate determination is implemented. Effective on July 1 of 136.23 the state fiscal year in which the resident assessment system as 136.24 described in section 256B.437 for nursing home rate 136.25 determination is implemented, the monthly conversion limit for 136.26 the cost of elderly waiver services shall be the per diem 136.27 nursing facility rate as determined by the resident assessment 136.28 system as described in section 256B.437 for that resident in the 136.29 nursing facility where the resident currently resides multiplied 136.30 by 365 and divided by 12, less the recipient's maintenance needs 136.31 allowance as described in subdivision 1d. The initially 136.32 approved conversion rate may be adjusted by the greater of any 136.33 subsequent legislatively adopted home and community-based 136.34 services cost-of-livingpercentage rate increase or any136.35 subsequent legislatively adoptedthe average statewide 136.36 percentage rateincrease forin nursing facilitiesfacility 137.1 payment rates. The limit under this subdivision only applies to 137.2 persons discharged from a nursing facility after a minimum 137.3 30-day stay and found eligible for waivered services on or after 137.4 July 1, 1997. 137.5 (b) The following costs must be included in determining the 137.6 total monthly costs for the waiver client: 137.7 (1) cost of all waivered services, including extended 137.8 medical supplies and equipment and environmental modifications; 137.9 and 137.10 (2) cost of skilled nursing, home health aide, and personal 137.11 care services reimbursable by medical assistance. 137.12 Sec. 6. Minnesota Statutes 2003 Supplement, section 137.13 256B.431, subdivision 32, is amended to read: 137.14 Subd. 32. [PAYMENT DURING FIRST 90 DAYS.] (a) For rate 137.15 years beginning on or after July 1, 2001, the total payment rate 137.16 for a facility reimbursed under this section, section 256B.434, 137.17 or any other section for the first 90 paid days after admission 137.18 shall be: 137.19 (1) for the first 30 paid days, the rate shall be 120 137.20 percent of the facility's medical assistance rate for each case 137.21 mix class; 137.22 (2) for the next 60 paid days after the first 30 paid days, 137.23 the rate shall be 110 percent of the facility's medical 137.24 assistance rate for each case mix class; 137.25 (3) beginning with the 91st paid day after admission, the 137.26 payment rate shall be the rate otherwise determined under this 137.27 section, section 256B.434, or any other section; and 137.28 (4) payments under this paragraph apply to admissions 137.29 occurring on or after July 1, 2001, and before July 1, 2003, and 137.30 to resident days occurring before July 30, 2003. 137.31 (b) For rate years beginning on or after July 1, 2003, the 137.32 total payment rate for a facility reimbursed under this section, 137.33 section 256B.434, or any other section shall be: 137.34 (1) for the first 30 calendar days after admission, the 137.35 rate shall be 120 percent of the facility's medical assistance 137.36 rate for each RUG class; 138.1 (2) beginning with the 31st calendar day after admission, 138.2 the payment rate shall be the rate otherwise determined under 138.3 this section, section 256B.434, or any other section; and 138.4 (3) payments under this paragraph apply to admissions 138.5 occurring on or after July 1, 2003. 138.6 (c) Effective January 1, 2004, the enhanced rates under 138.7 this subdivision shall not be allowed if a resident has resided 138.8 during the previous 30 calendar days in: 138.9 (1) the same nursing facility; 138.10 (2) a nursing facility owned or operated by a related 138.11 party; or 138.12 (3) a nursing facility or part of a facility that closed or 138.13 was in the process of closing. 138.14 Sec. 7. Minnesota Statutes 2003 Supplement, section 138.15 256B.69, subdivision 6b, is amended to read: 138.16 Subd. 6b. [HOME AND COMMUNITY-BASED WAIVER SERVICES.] (a) 138.17 For individuals enrolled in the Minnesota senior health options 138.18 project authorized under subdivision 23, elderly waiver services 138.19 shall be covered according to the terms and conditions of the 138.20 federal agreement governing that demonstration project. 138.21 (b) For individuals under age 65 enrolled in demonstrations 138.22 authorized under subdivision 23, home and community-based waiver 138.23 services shall be covered according to the terms and conditions 138.24 of the federal agreement governing that demonstration project. 138.25 (c) The commissioner of human services shall issue requests 138.26 for proposals for collaborative service models between counties 138.27 and managed care organizations to integrate the home and 138.28 community-based elderly waiver services and additional nursing 138.29 home services into the prepaid medical assistance program. 138.30 (d) Notwithstanding Minnesota Rules, part 9500.1457, 138.31 subpart 1, item C, elderly waiver services shall be covered 138.32 statewide no sooner than July 1, 2006, under the prepaid medical 138.33 assistance program for all individuals who are eligible 138.34 according to section 256B.0915. The commissioner may develop a 138.35 schedule to phase in implementation of these waiver services, 138.36 including collaborative service models under paragraph (c). The 139.1 commissioner shall phase in implementation beginning with those 139.2 counties participating under section 256B.692, and those 139.3 counties where a viable collaborative service model has been 139.4 developed. In consultation with counties and all managed care 139.5 organizations that have expressed an interest in participating 139.6 in collaborative service models, the commissioner shall evaluate 139.7 the models. The commissioner shall consider the evaluation in 139.8 selecting the most appropriate models for statewide 139.9 implementation. 139.10 ARTICLE 6 139.11 HEALTH CARE 139.12 Section 1. Minnesota Statutes 2003 Supplement, section 139.13 256.01, subdivision 2, is amended to read: 139.14 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 139.15 section 241.021, subdivision 2, the commissioner of human 139.16 services shall carry out the specific duties in paragraphs (a) 139.17 through (aa): 139.18 (1)(a) Administer and supervise all forms of public 139.19 assistance provided for by state law and other welfare 139.20 activities or services as are vested in the commissioner. 139.21 Administration and supervision of human services activities or 139.22 services includes, but is not limited to, assuring timely and 139.23 accurate distribution of benefits, completeness of service, and 139.24 quality program management. In addition to administering and 139.25 supervising human services activities vested by law in the 139.26 department, the commissioner shall have the authority to: 139.27 (a)(1) require county agency participation in training and 139.28 technical assistance programs to promote compliance with 139.29 statutes, rules, federal laws, regulations, and policies 139.30 governing human services; 139.31 (b)(2) monitor, on an ongoing basis, the performance of 139.32 county agencies in the operation and administration of human 139.33 services, enforce compliance with statutes, rules, federal laws, 139.34 regulations, and policies governing welfare services and promote 139.35 excellence of administration and program operation; 139.36 (c)(3) develop a quality control program or other 140.1 monitoring program to review county performance and accuracy of 140.2 benefit determinations; 140.3 (d)(4) require county agencies to make an adjustment to 140.4 the public assistance benefits issued to any individual 140.5 consistent with federal law and regulation and state law and 140.6 rule and to issue or recover benefits as appropriate; 140.7 (e)(5) delay or deny payment of all or part of the state 140.8 and federal share of benefits and administrative reimbursement 140.9 according to the procedures set forth in section 256.017; 140.10 (f)(6) make contracts with and grants to public and 140.11 private agencies and organizations, both profit and nonprofit, 140.12 and individuals, using appropriated funds; and 140.13 (g)(7) enter into contractual agreements with federally 140.14 recognized Indian tribes with a reservation in Minnesota to the 140.15 extent necessary for the tribe to operate a federally approved 140.16 family assistance program or any other program under the 140.17 supervision of the commissioner. The commissioner shall consult 140.18 with the affected county or counties in the contractual 140.19 agreement negotiations, if the county or counties wish to be 140.20 included, in order to avoid the duplication of county and tribal 140.21 assistance program services. The commissioner may establish 140.22 necessary accounts for the purposes of receiving and disbursing 140.23 funds as necessary for the operation of the programs. 140.24 (2)(b) Inform county agencies, on a timely basis, of 140.25 changes in statute, rule, federal law, regulation, and policy 140.26 necessary to county agency administration of the programs. 140.27 (3)(c) Administer and supervise all child welfare 140.28 activities; promote the enforcement of laws protecting 140.29 handicapped, dependent, neglected and delinquent children, and 140.30 children born to mothers who were not married to the children's 140.31 fathers at the times of the conception nor at the births of the 140.32 children; license and supervise child-caring and child-placing 140.33 agencies and institutions; supervise the care of children in 140.34 boarding and foster homes or in private institutions; and 140.35 generally perform all functions relating to the field of child 140.36 welfare now vested in the State Board of Control. 141.1 (4)(d) Administer and supervise all noninstitutional 141.2 service to handicapped persons, including those who are visually 141.3 impaired, hearing impaired, or physically impaired or otherwise 141.4 handicapped. The commissioner may provide and contract for the 141.5 care and treatment of qualified indigent children in facilities 141.6 other than those located and available at state hospitals when 141.7 it is not feasible to provide the service in state hospitals. 141.8 (5)(e) Assist and actively cooperate with other 141.9 departments, agencies and institutions, local, state, and 141.10 federal, by performing services in conformity with the purposes 141.11 of Laws 1939, chapter 431. 141.12 (6)(f) Act as the agent of and cooperate with the federal 141.13 government in matters of mutual concern relative to and in 141.14 conformity with the provisions of Laws 1939, chapter 431, 141.15 including the administration of any federal funds granted to the 141.16 state to aid in the performance of any functions of the 141.17 commissioner as specified in Laws 1939, chapter 431, and 141.18 including the promulgation of rules making uniformly available 141.19 medical care benefits to all recipients of public assistance, at 141.20 such times as the federal government increases its participation 141.21 in assistance expenditures for medical care to recipients of 141.22 public assistance, the cost thereof to be borne in the same 141.23 proportion as are grants of aid to said recipients. 141.24 (7)(g) Establish and maintain any administrative units 141.25 reasonably necessary for the performance of administrative 141.26 functions common to all divisions of the department. 141.27 (8)(h) Act as designated guardian of both the estate and 141.28 the person of all the wards of the state of Minnesota, whether 141.29 by operation of law or by an order of court, without any further 141.30 act or proceeding whatever, except as to persons committed as 141.31 mentally retarded. For children under the guardianship of the 141.32 commissioner whose interests would be best served by adoptive 141.33 placement, the commissioner may contract with a licensed 141.34 child-placing agency or a Minnesota tribal social services 141.35 agency to provide adoption services. A contract with a licensed 141.36 child-placing agency must be designed to supplement existing 142.1 county efforts and may not replace existing county programs, 142.2 unless the replacement is agreed to by the county board and the 142.3 appropriate exclusive bargaining representative or the 142.4 commissioner has evidence that child placements of the county 142.5 continue to be substantially below that of other counties. 142.6 Funds encumbered and obligated under an agreement for a specific 142.7 child shall remain available until the terms of the agreement 142.8 are fulfilled or the agreement is terminated. 142.9 (9)(i) Act as coordinating referral and informational 142.10 center on requests for service for newly arrived immigrants 142.11 coming to Minnesota. 142.12 (10)(j) The specific enumeration of powers and duties as 142.13 hereinabove set forth shall in no way be construed to be a 142.14 limitation upon the general transfer of powers herein contained. 142.15 (11)(k) Establish county, regional, or statewide schedules 142.16 of maximum fees and charges which may be paid by county agencies 142.17 for medical, dental, surgical, hospital, nursing and nursing 142.18 home care and medicine and medical supplies under all programs 142.19 of medical care provided by the state and for congregate living 142.20 care under the income maintenance programs. 142.21 (12)(l) Have the authority to conduct and administer 142.22 experimental projects to test methods and procedures of 142.23 administering assistance and services to recipients or potential 142.24 recipients of public welfare. To carry out such experimental 142.25 projects, it is further provided that the commissioner of human 142.26 services is authorized to waive the enforcement of existing 142.27 specific statutory program requirements, rules, and standards in 142.28 one or more counties. The order establishing the waiver shall 142.29 provide alternative methods and procedures of administration, 142.30 shall not be in conflict with the basic purposes, coverage, or 142.31 benefits provided by law, and in no event shall the duration of 142.32 a project exceed four years. It is further provided that no 142.33 order establishing an experimental project as authorized by the 142.34 provisions of this section shall become effective until the 142.35 following conditions have been met: 142.36 (a)(1) the secretary of health and human services of the 143.1 United States has agreed, for the same project, to waive state 143.2 plan requirements relative to statewide uniformity .; and 143.3 (b)(2) a comprehensive plan, including estimated project 143.4 costs, shall be approved by the Legislative Advisory Commission 143.5 and filed with the commissioner of administration. 143.6 (13)(m) According to federal requirements, establish 143.7 procedures to be followed by local welfare boards in creating 143.8 citizen advisory committees, including procedures for selection 143.9 of committee members. 143.10 (14)(n) Allocate federal fiscal disallowances or sanctions 143.11 which are based on quality control error rates for the aid to 143.12 families with dependent children program formerly codified in 143.13 sections 256.72 to 256.87, medical assistance, or food stamp 143.14 program in the following manner: 143.15 (a)(1) one-half of the total amount of the disallowance 143.16 shall be borne by the county boards responsible for 143.17 administering the programs. For the medical assistance and the 143.18 AFDC program formerly codified in sections 256.72 to 256.87, 143.19 disallowances shall be shared by each county board in the same 143.20 proportion as that county's expenditures for the sanctioned 143.21 program are to the total of all counties' expenditures for the 143.22 AFDC program formerly codified in sections 256.72 to 256.87, and 143.23 medical assistance programs. For the food stamp program, 143.24 sanctions shall be shared by each county board, with 50 percent 143.25 of the sanction being distributed to each county in the same 143.26 proportion as that county's administrative costs for food stamps 143.27 are to the total of all food stamp administrative costs for all 143.28 counties, and 50 percent of the sanctions being distributed to 143.29 each county in the same proportion as that county's value of 143.30 food stamp benefits issued are to the total of all benefits 143.31 issued for all counties. Each county shall pay its share of the 143.32 disallowance to the state of Minnesota. When a county fails to 143.33 pay the amount due hereunder, the commissioner may deduct the 143.34 amount from reimbursement otherwise due the county, or the 143.35 attorney general, upon the request of the commissioner, may 143.36 institute civil action to recover the amount due .; and 144.1 (b)(2) notwithstanding the provisions of paragraph144.2 (a)clause (1), if the disallowance results from knowing 144.3 noncompliance by one or more counties with a specific program 144.4 instruction, and that knowing noncompliance is a matter of 144.5 official county board record, the commissioner may require 144.6 payment or recover from the county or counties, in the manner 144.7 prescribed in paragraph (a)clause (1), an amount equal to the 144.8 portion of the total disallowance which resulted from the 144.9 noncompliance, and may distribute the balance of the 144.10 disallowance according to paragraph (a)clause (1). 144.11 (15)(o) Develop and implement special projects that 144.12 maximize reimbursements and result in the recovery of money to 144.13 the state. For the purpose of recovering state money, the 144.14 commissioner may enter into contracts with third parties. Any 144.15 recoveries that result from projects or contracts entered into 144.16 under this paragraph shall be deposited in the state treasury 144.17 and credited to a special account until the balance in the 144.18 account reaches $1,000,000. When the balance in the account 144.19 exceeds $1,000,000, the excess shall be transferred and credited 144.20 to the general fund. All money in the account is appropriated 144.21 to the commissioner for the purposes of this paragraph. 144.22 (16)(p) Have the authority to make direct payments to 144.23 facilities providing shelter to women and their children 144.24 according to section 256D.05, subdivision 3. Upon the written 144.25 request of a shelter facility that has been denied payments 144.26 under section 256D.05, subdivision 3, the commissioner shall 144.27 review all relevant evidence and make a determination within 30 144.28 days of the request for review regarding issuance of direct 144.29 payments to the shelter facility. Failure to act within 30 days 144.30 shall be considered a determination not to issue direct payments. 144.31 (17)(q) Have the authority to establish and enforce the 144.32 following county reporting requirements: 144.33 (a)(1) the commissioner shall establish fiscal and 144.34 statistical reporting requirements necessary to account for the 144.35 expenditure of funds allocated to counties for human services 144.36 programs. When establishing financial and statistical reporting 145.1 requirements, the commissioner shall evaluate all reports, in 145.2 consultation with the counties, to determine if the reports can 145.3 be simplified or the number of reports can be reduced .; 145.4 (b)(2) the county board shall submit monthly or quarterly 145.5 reports to the department as required by the commissioner. 145.6 Monthly reports are due no later than 15 working days after the 145.7 end of the month. Quarterly reports are due no later than 30 145.8 calendar days after the end of the quarter, unless the 145.9 commissioner determines that the deadline must be shortened to 145.10 20 calendar days to avoid jeopardizing compliance with federal 145.11 deadlines or risking a loss of federal funding. Only reports 145.12 that are complete, legible, and in the required format shall be 145.13 accepted by the commissioner .; 145.14 (c)(3) if the required reports are not received by the 145.15 deadlines established in clause (b)(2), the commissioner may 145.16 delay payments and withhold funds from the county board until 145.17 the next reporting period. When the report is needed to account 145.18 for the use of federal funds and the late report results in a 145.19 reduction in federal funding, the commissioner shall withhold 145.20 from the county boards with late reports an amount equal to the 145.21 reduction in federal funding until full federal funding is 145.22 received .; 145.23 (d)(4) a county board that submits reports that are late, 145.24 illegible, incomplete, or not in the required format for two out 145.25 of three consecutive reporting periods is considered 145.26 noncompliant. When a county board is found to be noncompliant, 145.27 the commissioner shall notify the county board of the reason the 145.28 county board is considered noncompliant and request that the 145.29 county board develop a corrective action plan stating how the 145.30 county board plans to correct the problem. The corrective 145.31 action plan must be submitted to the commissioner within 45 days 145.32 after the date the county board received notice of 145.33 noncompliance .; 145.34 (e)(5) the final deadline for fiscal reports or amendments 145.35 to fiscal reports is one year after the date the report was 145.36 originally due. If the commissioner does not receive a report 146.1 by the final deadline, the county board forfeits the funding 146.2 associated with the report for that reporting period and the 146.3 county board must repay any funds associated with the report 146.4 received for that reporting period .; 146.5 (f)(6) the commissioner may not delay payments, withhold 146.6 funds, or require repayment under paragraph (c)clause (3) or 146.7 (e)(5) if the county demonstrates that the commissioner failed 146.8 to provide appropriate forms, guidelines, and technical 146.9 assistance to enable the county to comply with the 146.10 requirements. If the county board disagrees with an action 146.11 taken by the commissioner under paragraph (c)clause (3) or 146.12 (e)(5), the county board may appeal the action according to 146.13 sections 14.57 to 14.69 .; and 146.14 (g)(7) counties subject to withholding of funds under 146.15 paragraph (c)clause (3) or forfeiture or repayment of funds 146.16 under paragraph (e)clause (5) shall not reduce or withhold 146.17 benefits or services to clients to cover costs incurred due to 146.18 actions taken by the commissioner under paragraph (c)clause (3) 146.19 or (e)(5). 146.20 (18)(r) Allocate federal fiscal disallowances or sanctions 146.21 for audit exceptions when federal fiscal disallowances or 146.22 sanctions are based on a statewide random sample for the foster 146.23 care program under title IV-E of the Social Security Act, United 146.24 States Code, title 42, in direct proportion to each county's 146.25 title IV-E foster care maintenance claim for that period. 146.26 (19)(s) Be responsible for ensuring the detection, 146.27 prevention, investigation, and resolution of fraudulent 146.28 activities or behavior by applicants, recipients, and other 146.29 participants in the human services programs administered by the 146.30 department. 146.31 (20)(t) Require county agencies to identify overpayments, 146.32 establish claims, and utilize all available and cost-beneficial 146.33 methodologies to collect and recover these overpayments in the 146.34 human services programs administered by the department. 146.35 (21)(u) Have the authority to administer a drug rebate 146.36 program for drugs purchased pursuant to the prescription drug 147.1 program established under section 256.955 after the 147.2 beneficiary's satisfaction of any deductible established in the 147.3 program. The commissioner shall require a rebate agreement from 147.4 all manufacturers of covered drugs as defined in section 147.5 256B.0625, subdivision 13. Rebate agreements for prescription 147.6 drugs delivered on or after July 1, 2002, must include rebates 147.7 for individuals covered under the prescription drug program who 147.8 are under 65 years of age. For each drug, the amount of the 147.9 rebate shall be equal to the rebate as defined for purposes of 147.10 the federal rebate program in United States Code, title 42, 147.11 section 1396r-8(c)(1)1396r-8. The manufacturers must provide 147.12 full payment within 30 days of receipt of the state invoice for 147.13 the rebate within the terms and conditions used for the federal 147.14 rebate program established pursuant to section 1927 of title XIX 147.15 of the Social Security Act. The manufacturers must provide the 147.16 commissioner with any information necessary to verify the rebate 147.17 determined per drug. The rebate program shall utilize the terms 147.18 and conditions used for the federal rebate program established 147.19 pursuant to section 1927 of title XIX of the Social Security Act. 147.20 (22)(v) Have the authority to administer the federal drug 147.21 rebate program for drugs purchased under the medical assistance 147.22 program as allowed by section 1927 of title XIX of the Social 147.23 Security Act and according to the terms and conditions of 147.24 section 1927. Rebates shall be collected for all drugs that 147.25 have been dispensed or administered in an outpatient setting and 147.26 that are from manufacturers who have signed a rebate agreement 147.27 with the United States Department of Health and Human Services. 147.28 (23)(w) Have the authority to administer a supplemental 147.29 drug rebate program for drugs purchased under the medical 147.30 assistance program. The commissioner may enter into 147.31 supplemental rebate contracts with pharmaceutical manufacturers 147.32 and may require prior authorization for drugs that are from 147.33 manufacturers that have not signed a supplemental rebate 147.34 contract. Prior authorization of drugs shall be subject to the 147.35 provisions of section 256B.0625, subdivision 13. 147.36 (24)(x) Operate the department's communication systems 148.1 account established in Laws 1993, First Special Session chapter 148.2 1, article 1, section 2, subdivision 2, to manage shared 148.3 communication costs necessary for the operation of the programs 148.4 the commissioner supervises. A communications account may also 148.5 be established for each regional treatment center which operates 148.6 communications systems. Each account must be used to manage 148.7 shared communication costs necessary for the operations of the 148.8 programs the commissioner supervises. The commissioner may 148.9 distribute the costs of operating and maintaining communication 148.10 systems to participants in a manner that reflects actual usage. 148.11 Costs may include acquisition, licensing, insurance, 148.12 maintenance, repair, staff time and other costs as determined by 148.13 the commissioner. Nonprofit organizations and state, county, 148.14 and local government agencies involved in the operation of 148.15 programs the commissioner supervises may participate in the use 148.16 of the department's communications technology and share in the 148.17 cost of operation. The commissioner may accept on behalf of the 148.18 state any gift, bequest, devise or personal property of any 148.19 kind, or money tendered to the state for any lawful purpose 148.20 pertaining to the communication activities of the department. 148.21 Any money received for this purpose must be deposited in the 148.22 department's communication systems accounts. Money collected by 148.23 the commissioner for the use of communication systems must be 148.24 deposited in the state communication systems account and is 148.25 appropriated to the commissioner for purposes of this section. 148.26 (25)(y) Receive any federal matching money that is made 148.27 available through the medical assistance program for the 148.28 consumer satisfaction survey. Any federal money received for 148.29 the survey is appropriated to the commissioner for this 148.30 purpose. The commissioner may expend the federal money received 148.31 for the consumer satisfaction survey in either year of the 148.32 biennium. 148.33 (26)(z) Incorporate cost reimbursement claims from First 148.34 Call Minnesota and Greater Twin Cities United Way into the 148.35 federal cost reimbursement claiming processes of the department 148.36 according to federal law, rule, and regulations. Any 149.1 reimbursement received is appropriated to the commissioner and 149.2 shall be disbursed to First Call Minnesota and Greater Twin 149.3 Cities United Way according to normal department payment 149.4 schedules. 149.5 (27)(aa) Develop recommended standards for foster care 149.6 homes that address the components of specialized therapeutic 149.7 services to be provided by foster care homes with those services. 149.8 Sec. 2. Minnesota Statutes 2002, section 256.955, 149.9 subdivision 2, is amended to read: 149.10 Subd. 2. [DEFINITIONS.] (a) For purposes of this section, 149.11 the following definitions apply. 149.12 (b) "Health plan" has the meaning provided in section 149.13 62Q.01, subdivision 3. 149.14 (c) "Health plan company" has the meaning provided in 149.15 section 62Q.01, subdivision 4. 149.16 (d) "Qualified individual" means an individual who meets 149.17 the requirements described in subdivision 2a or 2b, and: 149.18 (1) who is not determined eligible for medical assistance 149.19 according to section 256B.0575, who is not determined eligible 149.20 for medical assistance or general assistance medical care149.21 without a spenddown, or who is not enrolled in MinnesotaCare; 149.22 (2) is not enrolled in prescription drug coverage under a 149.23 health plan; 149.24 (3) is not enrolled in prescription drug coverage under a 149.25 Medicare supplement plan, as defined in sections 62A.31 to 149.26 62A.44, or policies, contracts, or certificates that supplement 149.27 Medicare issued by health maintenance organizations or those 149.28 policies, contracts, or certificates governed by section 1833 or 149.29 1876 of the federal Social Security Act, United States Code, 149.30 title 42, section 1395, et seq., as amended; 149.31 (4) has not had coverage described in clauses (2) and (3) 149.32 for at least four months prior to application for the program; 149.33 and 149.34 (5) is a permanent resident of Minnesota as defined in 149.35 section 256L.09. 149.36 Sec. 3. Minnesota Statutes 2003 Supplement, section 150.1 256.955, subdivision 2a, is amended to read: 150.2 Subd. 2a. [ELIGIBILITY.] An individual satisfying the 150.3 following requirements and the requirements described in 150.4 subdivision 2, paragraph (d), is eligible for the prescription 150.5 drug program: 150.6 (1) is at least 65 years of age or older; and 150.7 (2) is eligible as a qualified Medicare beneficiary 150.8 according to section 256B.057, subdivision 3 or 3a, or is 150.9 eligible under section 256B.057, subdivision 3 or 3a, and is 150.10 also eligible for medical assistance or general assistance150.11 medical carewith a spenddown as defined in section 256B.056, 150.12 subdivision 5. 150.13 Sec. 4. Minnesota Statutes 2002, section 256.955, 150.14 subdivision 2b, is amended to read: 150.15 Subd. 2b. [ELIGIBILITY.] Effective July 1, 2002, an 150.16 individual satisfying the following requirements and the 150.17 requirements described in subdivision 2, paragraph (d), is 150.18 eligible for the prescription drug program: 150.19 (1) is under 65 years of age; and 150.20 (2) is eligible as a qualified Medicare beneficiary 150.21 according to section 256B.057, subdivision 3 or 3a or is 150.22 eligible under section 256B.057, subdivision 3 or 3a and is also 150.23 eligible for medical assistance or general assistance medical150.24 carewith a spenddown as defined in section 256B.056, 150.25 subdivision 5. 150.26 Sec. 5. Minnesota Statutes 2003 Supplement, section 150.27 256B.06, subdivision 4, is amended to read: 150.28 Subd. 4. [CITIZENSHIP REQUIREMENTS.] (a) Eligibility for 150.29 medical assistance is limited to citizens of the United States, 150.30 qualified noncitizens as defined in this subdivision, and other 150.31 persons residing lawfully in the United States. 150.32 (b) "Qualified noncitizen" means a person who meets one of 150.33 the following immigration criteria: 150.34 (1) admitted for lawful permanent residence according to 150.35 United States Code, title 8; 150.36 (2) admitted to the United States as a refugee according to 151.1 United States Code, title 8, section 1157; 151.2 (3) granted asylum according to United States Code, title 151.3 8, section 1158; 151.4 (4) granted withholding of deportation according to United 151.5 States Code, title 8, section 1253(h); 151.6 (5) paroled for a period of at least one year according to 151.7 United States Code, title 8, section 1182(d)(5); 151.8 (6) granted conditional entrant status according to United 151.9 States Code, title 8, section 1153(a)(7); 151.10 (7) determined to be a battered noncitizen by the United 151.11 States Attorney General according to the Illegal Immigration 151.12 Reform and Immigrant Responsibility Act of 1996, title V of the 151.13 Omnibus Consolidated Appropriations Bill, Public Law 104-200; 151.14 (8) is a child of a noncitizen determined to be a battered 151.15 noncitizen by the United States Attorney General according to 151.16 the Illegal Immigration Reform and Immigrant Responsibility Act 151.17 of 1996, title V, of the Omnibus Consolidated Appropriations 151.18 Bill, Public Law 104-200; or 151.19 (9) determined to be a Cuban or Haitian entrant as defined 151.20 in section 501(e) of Public Law 96-422, the Refugee Education 151.21 Assistance Act of 1980. 151.22 (c) All qualified noncitizens who were residing in the 151.23 United States before August 22, 1996, who otherwise meet the 151.24 eligibility requirements of this chapter, are eligible for 151.25 medical assistance with federal financial participation. 151.26 (d) All qualified noncitizens who entered the United States 151.27 on or after August 22, 1996, and who otherwise meet the 151.28 eligibility requirements of this chapter, are eligible for 151.29 medical assistance with federal financial participation through 151.30 November 30, 1996. 151.31 Beginning December 1, 1996, qualified noncitizens who 151.32 entered the United States on or after August 22, 1996, and who 151.33 otherwise meet the eligibility requirements of this chapter are 151.34 eligible for medical assistance with federal participation for 151.35 five years if they meet one of the following criteria: 151.36 (i) refugees admitted to the United States according to 152.1 United States Code, title 8, section 1157; 152.2 (ii) persons granted asylum according to United States 152.3 Code, title 8, section 1158; 152.4 (iii) persons granted withholding of deportation according 152.5 to United States Code, title 8, section 1253(h); 152.6 (iv) veterans of the United States armed forces with an 152.7 honorable discharge for a reason other than noncitizen status, 152.8 their spouses and unmarried minor dependent children; or 152.9 (v) persons on active duty in the United States armed 152.10 forces, other than for training, their spouses and unmarried 152.11 minor dependent children. 152.12 Beginning December 1, 1996, qualified noncitizens who do 152.13 not meet one of the criteria in items (i) to (v) are eligible 152.14 for medical assistance without federal financial participation 152.15 as described in paragraph (j). 152.16 (e) Noncitizens who are not qualified noncitizens as 152.17 defined in paragraph (b), who are lawfully residing in the 152.18 United States and who otherwise meet the eligibility 152.19 requirements of this chapter, are eligible for medical 152.20 assistance under clauses (1) to (3). These individuals must 152.21 cooperate with the Immigration and Naturalization Service to 152.22 pursue any applicable immigration status, including citizenship, 152.23 that would qualify them for medical assistance with federal 152.24 financial participation. 152.25 (1) Persons who were medical assistance recipients on 152.26 August 22, 1996, are eligible for medical assistance with 152.27 federal financial participation through December 31, 1996. 152.28 (2) Beginning January 1, 1997, persons described in clause 152.29 (1) are eligible for medical assistance without federal 152.30 financial participation as described in paragraph (j). 152.31 (3) Beginning December 1, 1996, persons residing in the 152.32 United States prior to August 22, 1996, who were not receiving 152.33 medical assistance and persons who arrived on or after August 152.34 22, 1996, are eligible for medical assistance without federal 152.35 financial participation as described in paragraph (j). 152.36 (f) Nonimmigrants who otherwise meet the eligibility 153.1 requirements of this chapter are eligible for the benefits as 153.2 provided in paragraphs (g) to (i). For purposes of this 153.3 subdivision, a "nonimmigrant" is a person in one of the classes 153.4 listed in United States Code, title 8, section 1101(a)(15). 153.5 (g) Payment shall also be made for care and services that 153.6 are furnished to noncitizens, regardless of immigration status, 153.7 who otherwise meet the eligibility requirements of this chapter, 153.8 if such care and services are necessary for the treatment of an 153.9 emergency medical condition, except for organ transplants and 153.10 related care and services and routine prenatal care. 153.11 (h) For purposes of this subdivision, the term "emergency 153.12 medical condition" means a medical condition that meets the 153.13 requirements of United States Code, title 42, section 1396b(v). 153.14 (i) Pregnant noncitizens who are undocumented or 153.15 nonimmigrants, who otherwise meet the eligibility requirements 153.16 of this chapter, are eligible for medical assistance payment 153.17 without federal financial participation for care and services 153.18 through the period of pregnancy, and 60 days postpartum, except 153.19 for labor and delivery. 153.20 (j) Qualified noncitizens as described in paragraph (d), 153.21 and all other noncitizens lawfully residing in the United States 153.22 as described in paragraph (e), who are ineligible for medical 153.23 assistance with federal financial participation and who 153.24 otherwise meet the eligibility requirements of chapter 256B and 153.25 of this paragraph, are eligible for medical assistance without 153.26 federal financial participation. Qualified noncitizens as 153.27 described in paragraph (d) are only eligible for medical 153.28 assistance without federal financial participation for five 153.29 years from their date of entry into the United States. 153.30 (k) Beginning October 1, 2003, persons who are receiving 153.31 care and rehabilitation services from a nonprofit center 153.32 established to serve victims of torture and are otherwise 153.33 ineligible for medical assistance under this chapter or general153.34 assistance medical care under section 256D.03are eligible for 153.35 medical assistance without federal financial participation. 153.36 These individuals are eligible only for the period during which 154.1 they are receiving services from the center. Individuals 154.2 eligible under this paragraph shall not be required to 154.3 participate in prepaid medical assistance. 154.4 Sec. 6. Minnesota Statutes 2003 Supplement, section 154.5 256B.0625, subdivision 9, is amended to read: 154.6 Subd. 9. [DENTAL SERVICES.] (a) Medical assistance covers 154.7 dental services. Dental services include, with prior 154.8 authorization, fixed bridges that are cost-effective for persons 154.9 who cannot use removable dentures because of their medical 154.10 condition. 154.11 (b) Coverage of dental services for adults age 21 and over 154.12 who are not pregnant is subject to a $500 annual benefit limit 154.13 and covered services are limited to: 154.14 (1) diagnostic and preventative services; 154.15 (2) basicrestorative services; and 154.16 (3) emergency services. 154.17 Emergency services, dentures, and extractions related to 154.18 dentures are not included in the $500 annual benefit limit. 154.19 Sec. 7. Minnesota Statutes 2003 Supplement, section 154.20 256D.03, subdivision 3, is amended to read: 154.21 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 154.22 (a) General assistance medical care may be paid for any person 154.23 who is not eligible for medical assistance under chapter 256B, 154.24 including eligibility for medical assistance based on a 154.25 spenddown of excess income according to section 256B.056, 154.26 subdivision 5, or MinnesotaCare as defined in paragraph (b), 154.27 except as provided in paragraph (c), and: 154.28 (1) who is receiving assistance under section 256D.05, 154.29 except for families with children who are eligible under 154.30 Minnesota family investment program (MFIP), or who is having a 154.31 payment made on the person's behalf under sections 256I.01 to 154.32 256I.06; or 154.33 (2) who is a resident of Minnesota; and 154.34 (i) who has gross countable income not in excess of 75 154.35 percent of the federal poverty guidelines for the family size, 154.36 using a six-month budget period and whose equity in assets is 155.1 not in excess of $1,000 per assistance unit. Exempt assets, the 155.2 reduction of excess assets, and the waiver of excess assets must 155.3 conform to the medical assistance program in section 256B.056, 155.4 subdivision 3, with the following exception: the maximum amount 155.5 of undistributed funds in a trust that could be distributed to 155.6 or on behalf of the beneficiary by the trustee, assuming the 155.7 full exercise of the trustee's discretion under the terms of the 155.8 trust, must be applied toward the asset maximum; or 155.9 (ii) who has gross countable income above 75 percent of the 155.10 federal poverty guidelines but not in excess of 175 percent of 155.11 the federal poverty guidelines for the family size, using a 155.12 six-month budget period, whose equity in assets is not in excess 155.13 of the limits in section 256B.056, subdivision 3c, and who 155.14 applies during an inpatient hospitalization. 155.15 (b) General assistance medical care may not be paid for 155.16 applicants or recipients who meet all eligibility requirements 155.17 of MinnesotaCare as defined in sections 256L.01 to 256L.16, and 155.18 are adults with dependent children under 21 whose gross family 155.19 income is equal to or less than 275 percent of the federal 155.20 poverty guidelines. 155.21 (c) For applications received on or after October 1, 2003, 155.22 eligibility may begin no earlier than the date of application. 155.23 For individuals eligible under paragraph (a), clause (2), item 155.24 (i), a redetermination of eligibility must occur every 12 155.25 months. Individuals are eligible under paragraph (a), clause 155.26 (2), item (ii), only during inpatient hospitalization but may 155.27 reapply if there is a subsequent period of inpatient 155.28 hospitalization. Beginning January 1, 2000, Minnesota health 155.29 care program applications completed by recipients and applicants 155.30 who are persons described in paragraph (b), may be returned to 155.31 the county agency to be forwarded to the Department of Human 155.32 Services or sent directly to the Department of Human Services 155.33 for enrollment in MinnesotaCare. If all other eligibility 155.34 requirements of this subdivision are met, eligibility for 155.35 general assistance medical care shall be available in any month 155.36 during which a MinnesotaCare eligibility determination and 156.1 enrollment are pending. Upon notification of eligibility for 156.2 MinnesotaCare, notice of termination for eligibility for general 156.3 assistance medical care shall be sent to an applicant or 156.4 recipient. If all other eligibility requirements of this 156.5 subdivision are met, eligibility for general assistance medical 156.6 care shall be available until enrollment in MinnesotaCare 156.7 subject to the provisions of paragraph (e). 156.8 (d) The date of an initial Minnesota health care program 156.9 application necessary to begin a determination of eligibility 156.10 shall be the date the applicant has provided a name, address, 156.11 and Social Security number, signed and dated, to the county 156.12 agency or the Department of Human Services. If the applicant is 156.13 unable to provide a name, address, Social Security number, and 156.14 signature when health care is delivered due to a medical 156.15 condition or disability, a health care provider may act on an 156.16 applicant's behalf to establish the date of an initial Minnesota 156.17 health care program application by providing the county agency 156.18 or Department of Human Services with provider identification and 156.19 a temporary unique identifier for the applicant. The applicant 156.20 must complete the remainder of the application and provide 156.21 necessary verification before eligibility can be determined. 156.22 The county agency must assist the applicant in obtaining 156.23 verification if necessary. 156.24 (e) County agencies are authorized to use all automated 156.25 databases containing information regarding recipients' or 156.26 applicants' income in order to determine eligibility for general 156.27 assistance medical care or MinnesotaCare. Such use shall be 156.28 considered sufficient in order to determine eligibility and 156.29 premium payments by the county agency. 156.30 (f) General assistance medical care is not available for a 156.31 person in a correctional facility unless the person is detained 156.32 by law for less than one year in a county correctional or 156.33 detention facility as a person accused or convicted of a crime, 156.34 or admitted as an inpatient to a hospital on a criminal hold 156.35 order, and the person is a recipient of general assistance 156.36 medical care at the time the person is detained by law or 157.1 admitted on a criminal hold order and as long as the person 157.2 continues to meet other eligibility requirements of this 157.3 subdivision. 157.4 (g) General assistance medical care is not available for 157.5 applicants or recipients who do not cooperate with the county 157.6 agency to meet the requirements of medical assistance. 157.7 (h) In determining the amount of assets of an individual 157.8 eligible under paragraph (a), clause (2), item (i), there shall 157.9 be included any asset or interest in an asset, including an 157.10 asset excluded under paragraph (a), that was given away, sold, 157.11 or disposed of for less than fair market value within the 60 157.12 months preceding application for general assistance medical care 157.13 or during the period of eligibility. Any transfer described in 157.14 this paragraph shall be presumed to have been for the purpose of 157.15 establishing eligibility for general assistance medical care, 157.16 unless the individual furnishes convincing evidence to establish 157.17 that the transaction was exclusively for another purpose. For 157.18 purposes of this paragraph, the value of the asset or interest 157.19 shall be the fair market value at the time it was given away, 157.20 sold, or disposed of, less the amount of compensation received. 157.21 For any uncompensated transfer, the number of months of 157.22 ineligibility, including partial months, shall be calculated by 157.23 dividing the uncompensated transfer amount by the average 157.24 monthly per person payment made by the medical assistance 157.25 program to skilled nursing facilities for the previous calendar 157.26 year. The individual shall remain ineligible until this fixed 157.27 period has expired. The period of ineligibility may exceed 30 157.28 months, and a reapplication for benefits after 30 months from 157.29 the date of the transfer shall not result in eligibility unless 157.30 and until the period of ineligibility has expired. The period 157.31 of ineligibility begins in the month the transfer was reported 157.32 to the county agency, or if the transfer was not reported, the 157.33 month in which the county agency discovered the transfer, 157.34 whichever comes first. For applicants, the period of 157.35 ineligibility begins on the date of the first approved 157.36 application. 158.1 (i) When determining eligibility for any state benefits 158.2 under this subdivision, the income and resources of all 158.3 noncitizens shall be deemed to include their sponsor's income 158.4 and resources as defined in the Personal Responsibility and Work 158.5 Opportunity Reconciliation Act of 1996, title IV, Public Law 158.6 104-193, sections 421 and 422, and subsequently set out in 158.7 federal rules. 158.8 (j) Undocumented noncitizens and nonimmigrants are 158.9 ineligible for general assistance medical care , except an158.10 individual eligible under paragraph (a), clause (4), remains158.11 eligible through September 30, 2003. For purposes of this 158.12 subdivision, a nonimmigrant is an individual in one or more of 158.13 the classes listed in United States Code, title 8, section 158.14 1101(a)(15), and an undocumented noncitizen is an individual who 158.15 resides in the United States without the approval or 158.16 acquiescence of the Immigration and Naturalization Service. 158.17 (k) Notwithstanding any other provision of law, a 158.18 noncitizen who is ineligible for medical assistance due to the 158.19 deeming of a sponsor's income and resources, is ineligible for 158.20 general assistance medical care. 158.21 (l) Effective July 1, 2003, general assistance medical care 158.22 emergency services end. 158.23 Sec. 8. Minnesota Statutes 2003 Supplement, section 158.24 256D.03, subdivision 4, is amended to read: 158.25 Subd. 4. [GENERAL ASSISTANCE MEDICAL CARE; SERVICES.] 158.26 (a)(i) For a person who is eligible under subdivision 3, 158.27 paragraph (a), clause (2), item (i), general assistance medical 158.28 care covers, except as provided in paragraph (c): 158.29 (1) inpatient hospital services; 158.30 (2) outpatient hospital services; 158.31 (3) services provided by Medicare certified rehabilitation 158.32 agencies; 158.33 (4) prescription drugs and other products recommended 158.34 through the process established in section 256B.0625, 158.35 subdivision 13; 158.36 (5) equipment necessary to administer insulin and 159.1 diagnostic supplies and equipment for diabetics to monitor blood 159.2 sugar level; 159.3 (6) eyeglasses and eye examinations provided by a physician 159.4 or optometrist; 159.5 (7) hearing aids; 159.6 (8) prosthetic devices; 159.7 (9) laboratory and X-ray services; 159.8 (10) physician's services; 159.9 (11) medical transportation except special transportation; 159.10 (12) chiropractic services as covered under the medical 159.11 assistance program; 159.12 (13) podiatric services; 159.13 (14) dental services and dentures, subject to the 159.14 limitations specified in section 256B.0625, subdivision 9; 159.15 (15) outpatient services provided by a mental health center 159.16 or clinic that is under contract with the county board and is 159.17 established under section 245.62; 159.18 (16) day treatment services for mental illness provided 159.19 under contract with the county board; 159.20 (17) prescribed medications for persons who have been 159.21 diagnosed as mentally ill as necessary to prevent more 159.22 restrictive institutionalization; 159.23 (18) psychological services, medical supplies and 159.24 equipment, and Medicare premiums, coinsurance and deductible 159.25 payments; 159.26 (19) medical equipment not specifically listed in this 159.27 paragraph when the use of the equipment will prevent the need 159.28 for costlier services that are reimbursable under this 159.29 subdivision; 159.30 (20) services performed by a certified pediatric nurse 159.31 practitioner, a certified family nurse practitioner, a certified 159.32 adult nurse practitioner, a certified obstetric/gynecological 159.33 nurse practitioner, a certified neonatal nurse practitioner, or 159.34 a certified geriatric nurse practitioner in independent 159.35 practice, if (1) the service is otherwise covered under this 159.36 chapter as a physician service, (2) the service provided on an 160.1 inpatient basis is not included as part of the cost for 160.2 inpatient services included in the operating payment rate, and 160.3 (3) the service is within the scope of practice of the nurse 160.4 practitioner's license as a registered nurse, as defined in 160.5 section 148.171; 160.6 (21) services of a certified public health nurse or a 160.7 registered nurse practicing in a public health nursing clinic 160.8 that is a department of, or that operates under the direct 160.9 authority of, a unit of government, if the service is within the 160.10 scope of practice of the public health nurse's license as a 160.11 registered nurse, as defined in section 148.171; and 160.12 (22) telemedicine consultations, to the extent they are 160.13 covered under section 256B.0625, subdivision 3b. 160.14 (ii) Effective October 1, 2003, for a person who is 160.15 eligible under subdivision 3, paragraph (a), clause (2), item 160.16 (ii), general assistance medical care coverage is limited to 160.17 inpatient hospital services, including physician services 160.18 provided during the inpatient hospital stay. A $1,000 160.19 deductible is required for each inpatient hospitalization. 160.20 (b) Gender reassignment surgery and related services are 160.21 not covered services under this subdivision unless the 160.22 individual began receiving gender reassignment services prior to 160.23 July 1, 1995. 160.24 (c) In order to contain costs, the commissioner of human 160.25 services shall select vendors of medical care who can provide 160.26 the most economical care consistent with high medical standards 160.27 and shall where possible contract with organizations on a 160.28 prepaid capitation basis to provide these services. The 160.29 commissioner shall consider proposals by counties and vendors 160.30 for prepaid health plans, competitive bidding programs, block 160.31 grants, or other vendor payment mechanisms designed to provide 160.32 services in an economical manner or to control utilization, with 160.33 safeguards to ensure that necessary services are provided. 160.34 Before implementing prepaid programs in counties with a county 160.35 operated or affiliated public teaching hospital or a hospital or 160.36 clinic operated by the University of Minnesota, the commissioner 161.1 shall consider the risks the prepaid program creates for the 161.2 hospital and allow the county or hospital the opportunity to 161.3 participate in the program in a manner that reflects the risk of 161.4 adverse selection and the nature of the patients served by the 161.5 hospital, provided the terms of participation in the program are 161.6 competitive with the terms of other participants considering the 161.7 nature of the population served. Payment for services provided 161.8 pursuant to this subdivision shall be as provided to medical 161.9 assistance vendors of these services under sections 256B.02, 161.10 subdivision 8, and 256B.0625. For payments made during fiscal 161.11 year 1990 and later years, the commissioner shall consult with 161.12 an independent actuary in establishing prepayment rates, but 161.13 shall retain final control over the rate methodology. 161.14 (d) Recipients eligible under subdivision 3, paragraph (a), 161.15 clause (2), item (i), shall pay the following co-payments for 161.16 services provided on or after October 1, 2003: 161.17 (1) $3 per nonpreventive visit. For purposes of this 161.18 subdivision, a visit means an episode of service which is 161.19 required because of a recipient's symptoms, diagnosis, or 161.20 established illness, and which is delivered in an ambulatory 161.21 setting by a physician or physician ancillary, chiropractor, 161.22 podiatrist, nurse midwife, advanced practice nurse, audiologist, 161.23 optician, or optometrist; 161.24 (2) $25 for eyeglasses; 161.25 (3) $25 for nonemergency visits to a hospital-based 161.26 emergency room; 161.27 (4) $3 per brand-name drug prescription and $1 per generic 161.28 drug prescription, subject to a $20 per month maximum for 161.29 prescription drug co-payments. No co-payments shall apply to 161.30 antipsychotic drugs when used for the treatment of mental 161.31 illness; and 161.32 (5) 50 percent coinsurance on basicrestorative dental 161.33 services. 161.34 (e) Co-payments shall be limited to one per day per 161.35 provider for nonpreventive visits, eyeglasses, and nonemergency 161.36 visits to a hospital-based emergency room. Recipients of 162.1 general assistance medical care are responsible for all 162.2 co-payments in this subdivision. The general assistance medical 162.3 care reimbursement to the provider shall be reduced by the 162.4 amount of the co-payment, except that reimbursement for 162.5 prescription drugs shall not be reduced once a recipient has 162.6 reached the $20 per month maximum for prescription drug 162.7 co-payments. The provider collects the co-payment from the 162.8 recipient. Providers may not deny services to recipients who 162.9 are unable to pay the co-payment, except as provided in 162.10 paragraph (f). 162.11 (f) If it is the routine business practice of a provider to 162.12 refuse service to an individual with uncollected debt, the 162.13 provider may include uncollected co-payments under this 162.14 section. A provider must give advance notice to a recipient 162.15 with uncollected debt before services can be denied. 162.16 (g) Any county may, from its own resources, provide medical 162.17 payments for which state payments are not made. 162.18 (h) Chemical dependency services that are reimbursed under 162.19 chapter 254B must not be reimbursed under general assistance 162.20 medical care. 162.21 (i) The maximum payment for new vendors enrolled in the 162.22 general assistance medical care program after the base year 162.23 shall be determined from the average usual and customary charge 162.24 of the same vendor type enrolled in the base year. 162.25 (j) The conditions of payment for services under this 162.26 subdivision are the same as the conditions specified in rules 162.27 adopted under chapter 256B governing the medical assistance 162.28 program, unless otherwise provided by statute or rule. 162.29 (k) Inpatient and outpatient payments shall be reduced by 162.30 five percent, effective July 1, 2003. This reduction is in 162.31 addition to the five percent reduction effective July 1, 2003, 162.32 and incorporated by reference in paragraph (i). 162.33 (l) Payments for all other health services except 162.34 inpatient, outpatient, and pharmacy services shall be reduced by 162.35 five percent, effective July 1, 2003. 162.36 (m) Payments to managed care plans shall be reduced by five 163.1 percent for services provided on or after October 1, 2003. 163.2 (n) A hospital receiving a reduced payment as a result of 163.3 this section may apply the unpaid balance toward satisfaction of 163.4 the hospital's bad debts.