HF 3403

2nd Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/07/2022 12:26pm

A bill for an act
relating to professional licensing; establishing a preliminary application procedure
for individuals seeking professional licenses; permitting licensing boards to charge
application fees; authorizing appeals; requiring reports; appropriating money;
proposing coding for new law in Minnesota Statutes, chapter 214.

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

Section 1.

new text begin [214.035] LICENSING DISQUALIFICATIONS; PRELIMINARY
APPLICATIONS; REPORTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meaning given.
new text end

new text begin (b) "Conviction" has the meaning given in section 609.02, subdivision 5.
new text end

new text begin (c) "Criminal record" means a record of an arrest, prosecution, criminal proceeding, or
conviction.
new text end

new text begin (d) "State licensor" or "licensor" means a state agency or examining and licensing board,
including a health-related licensing board and non-health-related licensing board that issues
an occupational or professional license, registration, or certificate and considers before
issuing the license, registration, or certificate any criminal record or conviction of an applicant
that may make an applicant ineligible to receive the license, registration, or certificate.
new text end

new text begin Subd. 2. new text end

new text begin Scope. new text end

new text begin (a) This section does not apply to a license, registration, or certificate
issued by a state licensor if the license, registration, or certificate does not require an applicant
to report to the state licensor as part of the application process the applicant's criminal record
or does not require an applicant to obtain a criminal background check or study as part of
the application process to obtain the license, registration, or certificate.
new text end

new text begin (b) The preliminary application process described under this section may only be utilized
by an individual who has a criminal record.
new text end

new text begin Subd. 3. new text end

new text begin Preliminary applications. new text end

new text begin (a) Notwithstanding any law to the contrary, all
state licensors shall permit an individual to submit a preliminary application for a
determination pursuant to this section as to whether a criminal record or conviction that
may be considered by the state licensor under state law would make the individual ineligible
to receive an occupational or professional license, registration, or certificate issued by the
state licensor.
new text end

new text begin (b) An applicant shall submit a preliminary application and any other supporting
documents to the appropriate state licensor in a form and manner approved by the licensor.
The state licensor may require that the applicant provide information about the applicant's
criminal record in the form and manner approved by the licensor.
new text end

new text begin (c) A state licensor may charge a fee to cover any expenses incurred in connection with
processing a preliminary application, provided the fee does not exceed the actual cost to
the state licensor of processing the application or the initial fee for the applicable license,
registration, or certificate. If the applicant subsequently applies for the license, registration,
or certificate, the amount of the preliminary application fee paid by the applicant must be
credited toward the applicant's initial fee for the license, registration, or certificate. An
applicant may request a waiver of this fee. A fee collected under this paragraph for the
expenses incurred by the state licensor shall be deposited in the fund in the state treasury
in which the state licensor deposits fees collected for issuing occupational or professional
licenses, registrations, or certificates. If the state licensor does not collect a fee for issuing
occupational or professional licenses, registrations, or certificates, any fee collected under
this paragraph shall be deposited pursuant to section 214.06, subdivision 1.
new text end

new text begin (d) Upon receipt of a completed preliminary application and any necessary supporting
documents, the state licensor must determine under state law whether a criminal record or
conviction that may be considered under state law would make the applicant ineligible to
receive a professional or occupational license, registration, or certificate from the licensor.
The state licensor must issue a written decision within 60 days of receiving a completed
preliminary application. If the state licensor determines that a criminal record or conviction
would make the applicant ineligible to receive a professional or occupational license,
registration, or certificate, the written decision must:
new text end

new text begin (1) state all reasons the professional or occupational license, registration, or certificate
would be denied, including the standard used to make the decision;
new text end

new text begin (2) notify the applicant of the right to appeal the decision or seek reconsideration of the
results of a background check or background study, if applicable; and
new text end

new text begin (3) inform the applicant of any action or additional steps the applicant could take to
qualify for a professional or occupational license, registration, or certificate.
new text end

new text begin (e) If a state licensor determines that no criminal records or convictions would make the
applicant ineligible to receive a professional or occupational license, registration, or
certificate, that decision is binding on the licensor unless:
new text end

new text begin (1) the applicant is convicted of a crime or commits any other disqualifying act that may
be considered by the state licensor under state law after submission of the preliminary
application;
new text end

new text begin (2) the applicant provided incomplete information in the preliminary application;
new text end

new text begin (3) the applicant provided inaccurate or fraudulent information in the preliminary
application; or
new text end

new text begin (4) changes to state law were enacted after the date the decision was issued, making the
applicant ineligible under state law to receive a license, registration, or certificate.
new text end

new text begin (f) Nothing in this section shall preclude a licensor from issuing a license, registration,
or certificate to an applicant that includes limitations or conditions on the license, registration,
or certificate based on a criminal conviction or alleged misconduct of the applicant.
new text end

new text begin (g) By August 1 of each year, each state licensor shall submit to the commissioner of
management and budget the number of applicants who submitted preliminary applications
to the licensor in accordance with this section and the number of applicants who subsequently
applied for a license, registration, or certificate for the previous fiscal year. The state licensor
shall also submit the total amount of initial application fees that were not paid by these
applicants pursuant to paragraph (c), or, if the licensor does not collect a fee for issuing a
license, registration, or certificate, the cost of processing the preliminary application fee
that was not covered pursuant to paragraph (c). Each fiscal year, an amount necessary to
pay each state licensor the rest of each initial application fee or the rest of the cost of
processing each preliminary application if an initial application fee was not collected by
the licensor is appropriated from the general fund to the appropriate state licensor.
new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin (a) By January 15 of each year, every state licensor shall report to the
Department of Employment and Economic Development on:
new text end

new text begin (1) the number of individuals who applied for a professional or occupational license,
registration, or certificate from the licensor;
new text end

new text begin (2) the number of individuals described in clause (1) who were found to be ineligible
due to a criminal record or conviction;
new text end

new text begin (3) the number of individuals who submitted a preliminary application under this section;
and
new text end

new text begin (4) the number of individuals described in clause (3) who were found to be ineligible
due to a criminal record or conviction.
new text end

new text begin (b) On or before February 15 of each year, the commissioner of employment and
economic development shall compile the reports received under paragraph (a) and provide
the compiled reports to the chairs and ranking minority members of the house of
representatives and senate committees and divisions with jurisdiction over employment.
The commissioner of employment and economic development must make the report readily
available on the department's public website.
new text end