HF 2458

3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 04/20/2012 04:33pm

A bill for an act
relating to state government; creating an advisory inspections process; proposing
coding for new law in Minnesota Statutes, chapter 15.

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

Section 1.

new text begin [15.985] ADVISORY INSPECTIONS.
new text end

new text begin (a) Upon the voluntary request of a person to a state agency for an advisory
inspection for the purpose of complying with state law, the agency must, except as
provided in paragraphs (f) and (g), conduct an advisory inspection. An agency is not
required to conduct an advisory inspection if the agency has a regularly scheduled
inspection that would occur within 90 days after the request for the advisory inspection,
or if before an advisory inspection is requested, the agency has notified the person that
it will be conducting an inspection within 45 days. If an advisory inspection results in
findings that potentially could make a person subject to a fine or other penalty imposed
by the agency, the agency must notify the person in writing of those findings within ten
days of the inspection.
new text end

new text begin (1) Except as provided in clause (2), if within 60 days of receiving notice the person
notifies that agency it has corrected the situation that made the person potentially subject
to the fine or penalty, and the agency later determines that the situation is corrected,
the agency may not impose a fine or penalty as a result of the findings in the advisory
inspection.
new text end

new text begin (2) For violations of chapter 177, if the person notifies the agency within the time
period for remedying violations required under the applicable section of chapter 177, that
it has corrected the situation that made the person potentially subject to the fine or penalty,
and the agency later determines that the situation is corrected, the agency may not impose
a fine or penalty as a result of the finding in the advisory inspection.
new text end

new text begin (3) A person may not request more than one advisory inspection from the same
agency in a calendar year. A person may not request an advisory inspection after an
inspection resulting in a fine or other penalty has been determined and the violator notified
of the amount to be paid, until fines or penalties have been paid or settled.
new text end

new text begin (b) For purposes of this section:
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new text begin (1) "inspection" includes an examination of real or personal property, or an audit or
other examination of financial or other documents;
new text end

new text begin (2) "penalty" includes a civil or administrative fine or other financial sanction;
new text end

new text begin (3) "person" includes a real person and businesses, including corporations,
partnerships, limited liability companies, and unincorporated associations; and
new text end

new text begin (4) "state agency" means a department, agency, board, commission, constitutional
office, or other group in the executive branch of state government.
new text end

new text begin (c) If an agency revises, amends, extends, or adds additional violations to a notice,
the person has 60 days from the date of those changes to correct the situation without fine
or penalty. For violations of chapter 177, the person has the time period for remedying
violations under the applicable section of chapter 177, to correct the situation without
fine or penalty.
new text end

new text begin (d) An agency conducting an inspection under this section may impose and collect
from the person requesting the inspection, a fee equal to the costs incurred by the agency
related to the inspection. Fees under this section shall be considered as charges for goods
and services provided for the direct and primary use of a private individual, business, or
other entity under section 16A.1283, paragraph (b), clause (3). Fee revenue collected
under this section must be deposited in an appropriate fund other than the general fund
and is appropriated from that fund to the agency collecting the fee for the purpose of
conducting inspections under this section.
new text end

new text begin (e) Nothing in this section shall prohibit or interfere with an agency offering similar
programs that allow independent audits or inspections, including the environmental
improvement program under chapter 114C. If a person conducts a self-audit under chapter
114C, the requirements of this section do not apply. For advisory inspections conducted
by the Pollution Control Agency, terms and requirements of chapter 114C shall be used
instead of those in this section.
new text end

new text begin (f) If agency staff resources are limited, an agency must give higher priority to the
agency's regular inspections over advisory inspections under this section. In so far as
conducting advisory inspections reduces an agency's costs, the savings must be reflected in
the charges for advisory inspections. An agency may not add additional staff complement
for purposes of this section before July 1, 2013. An agency may not add additional staff
complement for purposes of this section after July 1, 2013, unless: (1) the agency has
documented the demand for advisory inspections and has documented why additional staff
complement is needed to meet the demand; and (2) the agency has documented that the
revenue generated by advisory inspections will cover the expenses of the additional staff
complement. If a person requests an advisory inspection, but the agency does not have
staff resources necessary to conduct the advisory inspection before a regular inspection is
conducted, and the regular inspection results in findings that could make a person subject
to a fine or penalty, the agency must take into account the person's request for an advisory
inspection and the person's desire to take corrective action before taking any enforcement
action against the person.
new text end

new text begin (g) This section does not apply to:
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new text begin (1) criminal penalties;
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new text begin (2) situations in which implementation of this section is prohibited by federal law or
would result in loss of federal funding or other federal sanctions;
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new text begin (3) conduct constituting fraud;
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new text begin (4) violations in a manner that endangers a human life or presents significant risk of
major injury or severe emotional harm to humans;
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new text begin (5) violations that are part of a pattern that has occurred repeatedly and shows
willful intent;
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new text begin (6) violations for which it may be demonstrated that the alternative inspections
process is being used to avoid enforcement;
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new text begin (7) violations that occur within three years of violating an applicable law;
new text end

new text begin (8) the Department of Revenue;
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new text begin (9) the Workers' Compensation Division at the Department of Labor and Industry;
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new text begin (10) violations of vehicle size weight limits under sections 169.80 to 169.88;
new text end

new text begin (11) commercial motor vehicle inspections under section 169.781 and motor carrier
regulations under chapter 221;
new text end

new text begin (12) the Dairy and Food Inspection Division of the Department of Agriculture, if the
division provides free inspections similar to those under this section;
new text end

new text begin (13) state inspections or surveys of: hospitals, nursing homes, outpatient surgical
centers, supervised living facilities, board and lodging with special services, home care,
housing with services and assisted living settings, hospice, and supplemental nursing
services agencies;
new text end

new text begin (14) examinations of health maintenance organizations or county-based purchasing
entities regulated under chapter 62D;
new text end

new text begin (15) special transportation services under section 174.30; and
new text end

new text begin (16) financial institutions regulated by federal agencies, including state chartered
banks, federal chartered banks, state chartered credit unions, federal chartered credit
unions, and industrial loan and thrifts, to the extent that application of this section to those
institutions would interfere with agreements between state and federal regulatory agencies.
new text end

new text begin (h) An agency may terminate an advisory inspection and proceed as if an inspection
were a regular inspection if, in the process of conducting an advisory inspection, the
agency finds a situation that the agency determines: could lead to criminal penalties;
endangers human life or presents significant risk of major injury or severe emotional
harm to humans; presents a severe and imminent threat to animals, food, feed, crops,
commodities, or the environment; or evidences a pattern of willful violations.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end