HF 3781

as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2018 11:48am

A bill for an act
relating to human services; strengthening fraud prevention and program integrity;
amending Minnesota Statutes 2016, sections 13.461, subdivision 28; 119B.02,
subdivision 6; 245.095; 245A.02, subdivisions 8, 9, 12, by adding subdivisions;
245A.03, subdivision 1; 245A.04, subdivisions 1, 2, 6, 7, 10, by adding a
subdivision; 245A.05; 256.01, subdivisions 18d, 18e; 256B.02, subdivision 7;
256B.04, subdivision 21; 256B.0625, subdivision 43; 256B.064, subdivisions 1b,
2, by adding a subdivision; 256B.0651, subdivision 17; 256B.0659, subdivisions
3, 12, 14, 21; 256B.4912, by adding a subdivision; 393.07, subdivision 10;
Minnesota Statutes 2017 Supplement, sections 245A.04, subdivision 4; 256.9685,
subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 245A;
256B.

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

Section 1.

Minnesota Statutes 2016, section 13.461, subdivision 28, is amended to read:

Subd. 28.

Child care assistance program.

Data collected, maintained, used, or
disseminated by the welfare system pertaining to persons selected as legal nonlicensed child
care providers by families receiving child care assistance are classified under section 119B.02,
subdivision 6 new text begin , paragraph (a). Child care assistance program payment data is classified under
section 119B.02, subdivision 6, paragraph (b) new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 119B.02, subdivision 6, is amended to read:

Subd. 6.

Data.

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

new text begin (b) For purposes of this paragraph, "payment data" means data on the amount of child
care assistance payments made under this chapter to a child care center for a specified time
period and data on the number of families and children on whose behalf payments were
made for a specified time period. Payment data does not include data that may identify a
specific child care assistance recipient or benefit paid on behalf of a specific child care
assistance recipient. Payment data are public:
new text end

new text begin (1) if the data relate to a child care assistance payment made to a licensed child care
center or a child care center exempt from licensure; and
new text end

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 245.095, is amended to read:

245.095 LIMITS ON RECEIVING PUBLIC FUNDS.

Subdivision 1.

Prohibition.

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

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

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

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

Subd. 2.

Definitions.

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

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

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

(d) "Provider" means an owner, controlling individual, license holder, director, or
managerial official.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2016, section 245A.02, is amended by adding a subdivision to
read:

new text begin Subd. 3b. new text end

new text begin Authorized agent. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 5.

Minnesota Statutes 2016, section 245A.02, subdivision 8, is amended to read:

Subd. 8.

License.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 6.

Minnesota Statutes 2016, section 245A.02, subdivision 9, is amended to read:

Subd. 9.

License holder.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 7.

Minnesota Statutes 2016, section 245A.02, is amended by adding a subdivision to
read:

new text begin Subd. 10c. new text end

new text begin Organization. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 8.

Minnesota Statutes 2016, section 245A.02, subdivision 12, is amended to read:

Subd. 12.

Private agency.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 9.

Minnesota Statutes 2016, section 245A.02, is amended by adding a subdivision to
read:

new text begin Subd. 12a. new text end

new text begin Provisional license. new text end

new text begin "Provisional license" means a license of limited duration
not to exceed 15 months issued under section 245A.04, subdivision 7, paragraph (f).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 10.

Minnesota Statutes 2016, section 245A.03, subdivision 1, is amended to read:

Subdivision 1.

License required.

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

(1) operate a residential or a nonresidential program;

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

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

(4) advertise a residential or nonresidential program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 11.

Minnesota Statutes 2016, section 245A.04, subdivision 1, is amended to read:

Subdivision 1.

Application for licensure.

(a) An individual deleted text begin , corporation, partnership,
voluntary association, other deleted text end new text begin or new text end organization deleted text begin or controlling individual deleted text end that is subject to
licensure under section 245A.03 must apply for a license. The application must be made
on the forms and in the manner prescribed by the commissioner. The commissioner shall
provide the applicant with instruction in completing the application and provide information
about the rules and requirements of other state agencies that affect the applicant. An applicant
seeking licensure in Minnesota with headquarters outside of Minnesota must have a program
office located within the state.

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

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

(b) An application for licensure must identify all controlling individuals and must specify
an agent who is responsible for dealing with the commissioner of human services on all
matters provided for in this chapter and on whom service of all notices and orders must be
made. The agent must be authorized to accept service on behalf of all of the controlling
individuals of the program. Service on the new text begin authorized new text end agent is service on all of the controlling
individuals of the program. It is not a defense to any action arising under this chapter that
service was not made on each controlling individual of the program. The designation of one
or more controlling individuals as new text begin authorized new text end agents under this paragraph does not affect
the legal responsibility of any other controlling individual under this chapter.

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

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

(e) The applicant must be able to demonstrate competent knowledge of the applicable
requirements of this chapter and chapter 245C, and the requirements of other licensing
statutes and rules applicable to the program or services for which the applicant is seeking
to be licensed. Effective January 1, 2013, the commissioner may require the applicant,
except for child foster care, to demonstrate competence in the applicable licensing
requirements by successfully completing a written examination. The commissioner may
develop a prescribed written examination format.

(f) When an applicant is an individual, the individual must provide:

(1) the applicant's taxpayer identification numbers including the Social Security number,
and federal employer identification number if the applicant has employees;

(2) the complete business name, if any, and if doing business under a different name,
the doing business as (DBA) name, as registered with the secretary of state; and

(3) a notarized signature of the applicant.

(g) When an applicant is a nonindividual, the applicant must provide the:

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

(2) complete business name, and if doing business under a different name, the doing
business as (DBA) name, as registered with the secretary of state;

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

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

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

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

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

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

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

(iii) recovery of payments made for the service;

(iv) disenrollment in the public payment program; or

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

Sec. 12.

Minnesota Statutes 2016, section 245A.04, subdivision 2, is amended to read:

Subd. 2.

Notification of affected municipality.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 13.

Minnesota Statutes 2017 Supplement, section 245A.04, subdivision 4, is amended
to read:

Subd. 4.

Inspections; waiver.

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

(1) an inspection of the physical plant;

(2) an inspection of records and documents;

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

(4) observation of the program in operation; and

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 14.

Minnesota Statutes 2016, section 245A.04, subdivision 6, is amended to read:

Subd. 6.

Commissioner's evaluation.

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

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

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

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

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

new text begin (5) the applicant's ability to demonstrate competent knowledge of the applicable laws
and rules including but not limited to this chapter and chapters 119B and 245C.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 15.

Minnesota Statutes 2016, section 245A.04, subdivision 7, is amended to read:

Subd. 7.

Grant of license; license extension.

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

(1) the name of the license holder;

(2) the address of the program;

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

(4) the type of license;

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

(6) any special conditions of licensure.

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

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

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

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

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

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

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

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

(2) been denied a license within the past two years;

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 16.

Minnesota Statutes 2016, section 245A.04, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Notification required. new text end

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

new text begin (b) At least 30 days before the effective date of a change, the license holder must notify
the commissioner in writing of any:
new text end

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

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

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

new text begin (4) change to a program's business structure;
new text end

new text begin (5) change in the location of the program or service licensed under this chapter; and
new text end

new text begin (6) change in the federal or state tax identification number associated with the license
holder.
new text end

new text begin (c) When a license holder notifies the commissioner of a change to the business structure
governing the licensed program or services but is not selling the business, the license holder
must provide amended articles of incorporation and other documentation of the change and
any other information requested by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 17.

Minnesota Statutes 2016, section 245A.04, subdivision 10, is amended to read:

Subd. 10.

Adoption agency; additional requirements.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 18.

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

new text begin Subdivision 1. new text end

new text begin Transfer prohibited. new text end

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

new text begin Subd. 2. new text end

new text begin Change of ownership. new text end

new text begin If the commissioner determines that there will be a
change of ownership, the commissioner shall require submission of a new license application.
A change of ownership occurs when:
new text end

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

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

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

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

new text begin (5) there is a turnover of each controlling individual associated with the license within
a 12-month period. A change to the license holder's controlling individuals, including a
change due to a transfer of stock, is not a change of ownership if at least one controlling
individual who was listed on the license for at least 12 consecutive months continues to be
a controlling individual after the reported change.
new text end

new text begin Subd. 3. new text end

new text begin Change of ownership requirements. new text end

new text begin (a) A license holder who intends to
change the ownership of the program or service as defined in subdivision 2 to a party that
intends to assume operation without an interruption in service longer than 60 days after
acquiring the program or service must provide the commissioner with written notice of the
proposed sale or change on a form provided by the commissioner, at least 60 days before
the anticipated date of the change in ownership. For purposes of this subdivision and
subdivision 4, "party" means the party that intends to operate the service or program.
new text end

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

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

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

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

new text begin (f) If the party is seeking a license for a program or service that has an outstanding
correction order, the party must submit a letter with the license application identifying how
and within what length of time the party shall resolve the outstanding correction order and
come into full compliance with the licensing requirements.
new text end

new text begin (g) Any action taken under section 245A.06 or 245A.07 against the existing license
holder's license at the time the party is applying for a license, including when the existing
license holder is operating under a conditional license or is subject to a revocation, shall
remain in effect until the commissioner determines that the grounds for the action are
corrected or no longer exist.
new text end

new text begin (h) The commissioner shall evaluate the application of the party according to section
245A.04, subdivision 6. Pursuant to section 245A.04, subdivision 7, if the commissioner
determines that the party complies with applicable laws and rules, the commissioner may
issue a license or a temporary change of ownership license.
new text end

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

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

new text begin Subd. 4. new text end

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

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

new text begin (b) The commissioner may establish criteria to issue a temporary change of ownership
license when a license holder's death, divorce, or other event affecting the ownership of the
program when an applicant seeks to assume operation of the program or service to ensure
continuity of the program or service while a license application is evaluated. This subdivision
applies to any program or service licensed under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 19.

Minnesota Statutes 2016, section 245A.05, is amended to read:

245A.05 DENIAL OF APPLICATION.

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

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

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

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

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

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

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

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

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

new text begin (9) has a history of noncompliance as a license holder or controlling individual with
applicable laws or rules including but not limited to this chapter and chapters 199B and
245C; or
new text end

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 20.

Minnesota Statutes 2016, section 256.01, subdivision 18d, is amended to read:

Subd. 18d.

Data sharing with Department of Human Services; multiple identification
cards.

(a) The commissioner of public safety shall, on a monthly basis, provide the
commissioner of human services with the first, middle, and last name, the address, date of
birth, driver's license or state identification card number, new text begin Social Security or taxpayer
identification number, new text end and all photographs or electronically produced images of all applicants
and holders whose drivers' licenses and state identification cards have been canceled under
section 171.14, paragraph (a), clause (2) or (3), by the commissioner of public safety. After
the initial data report has been provided by the commissioner of public safety to the
commissioner of human services under this paragraph, subsequent reports shall only include
cancellations that occurred after the end date of the cancellations represented in the previous
data report.

(b) The commissioner of human services shall compare the information provided under
paragraph (a) with the commissioner's data regarding recipients of all public assistance
programs managed by the Department of Human Services to determine whether any
individual with multiple identification cards issued by the Department of Public Safety has
illegally or improperly enrolled in any public assistance program managed by the Department
of Human Services.

(c) If the commissioner of human services determines that an applicant or recipient has
illegally or improperly enrolled in any public assistance program, the commissioner shall
provide all due process protections to the individual before terminating the individual from
the program according to applicable statute and notifying the county attorney.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2016, section 256.01, subdivision 18e, is amended to read:

Subd. 18e.

Data sharing with deleted text begin the deleted text end Department of Human Services; legal presence
deleted text begin date deleted text end new text begin data new text end .

(a) The commissioner of public safety shall, on a monthly basis, provide the
commissioner of human services with the first, middle, and last name, and address, date of
birth, new text begin Social Security or taxpayer identification number, new text end and driver's license or state
identification card number of all applicants and holders of drivers' licenses and state
identification cards whose temporary legal presence date has expired and as a result the
driver's license or identification card has been accordingly canceled under section 171.14
by the commissioner of public safety.

(b) The commissioner of human services shall use the information provided under
paragraph (a) to determine whether the eligibility of any recipients of public assistance
programs managed by the Department of Human Services has changed as a result of the
deleted text begin status change in deleted text end new text begin data provided by new text end the Department of Public Safety deleted text begin data deleted text end .

(c) If the commissioner of human services determines that a recipient has illegally or
improperly received benefits from any public assistance program, the commissioner shall
provide all due process protections to the individual before terminating the individual from
the program according to applicable statute and deleted text begin notifying deleted text end new text begin must notify new text end the county attorney.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2017 Supplement, section 256.9685, subdivision 1, is amended
to read:

Subdivision 1.

Authority.

new text begin (a) new text end The commissioner shall establish procedures for
determining medical assistance payment rates under a prospective payment system for
inpatient hospital services in hospitals that qualify as vendors of medical assistance. The
commissioner shall establish, by rule, procedures for implementing this section and sections
256.9686, 256.969, and 256.9695. Services must meet the requirements of section 256B.04,
subdivision 15, to be eligible for payment.

new text begin (b) The commissioner shall publish in the Minnesota Health Care Program Provider
Manual the industry standard, evidence-based clinical decision tool used for determining
the medical necessity of a recipient's hospital admission. The tool shall be used in conjunction
with the recipient's medical conditions and records. The commissioner's tool designation is
not subject to administrative appeal and is not subject to the requirements of chapter 14,
including section 14.386. This paragraph supersedes any contrary rule or law.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2016, section 256B.02, subdivision 7, is amended to read:

Subd. 7.

Vendor of medical care.

(a) "Vendor of medical care" means any person or
persons furnishing, within the scope of the vendor's respective license, any or all of the
following goods or services: medical, surgical, hospital, ambulatory surgical center services,
optical, visual, dental and nursing services; drugs and medical supplies; appliances;
laboratory, diagnostic, and therapeutic services; nursing home and convalescent care;
screening and health assessment services provided by public health nurses as defined in
section 145A.02, subdivision 18; health care services provided at the residence of the patient
if the services are performed by a public health nurse and the nurse indicates in a statement
submitted under oath that the services were actually provided; and such other medical
services or supplies provided or prescribed by persons authorized by state law to give such
services and supplies new text begin , including services under section 256B.4912 new text end . new text begin For purposes of this
chapter, the term includes a person or entity that furnishes a good or service eligible for
medical assistance or federally approved waiver plan payments under this chapter. new text end The term
includes, but is not limited to, directors and officers of corporations or members of
partnerships who, either individually or jointly with another or others, have the legal control,
supervision, or responsibility of submitting claims for reimbursement to the medical
assistance program. The term only includes directors and officers of corporations who
personally receive a portion of the distributed assets upon liquidation or dissolution, and
their liability is limited to the portion of the claim that bears the same proportion to the total
claim as their share of the distributed assets bears to the total distributed assets.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2016, section 256B.04, subdivision 21, is amended to read:

Subd. 21.

Provider enrollment.

(a) If the commissioner or the Centers for Medicare
and Medicaid Services determines that a provider is designated "high-risk," the commissioner
may withhold payment from providers within that category upon initial enrollment for a
90-day period. The withholding for each provider must begin on the date of the first
submission of a claim.

(b) An enrolled provider that is also licensed by the commissioner under chapter 245A,
or is licensed as a home care provider by the Department of Health under chapter 144A and
has a home and community-based services designation on the home care license under
section 144A.484, must designate an individual as the entity's compliance officer. The
compliance officer must:

(1) develop policies and procedures to assure adherence to medical assistance laws and
regulations and to prevent inappropriate claims submissions;

(2) train the employees of the provider entity, and any agents or subcontractors of the
provider entity including billers, on the policies and procedures under clause (1);

(3) respond to allegations of improper conduct related to the provision or billing of
medical assistance services, and implement action to remediate any resulting problems;

(4) use evaluation techniques to monitor compliance with medical assistance laws and
regulations;

(5) promptly report to the commissioner any identified violations of medical assistance
laws or regulations; and

(6) within 60 days of discovery by the provider of a medical assistance reimbursement
overpayment, report the overpayment to the commissioner and make arrangements with
the commissioner for the commissioner's recovery of the overpayment.

The commissioner may require, as a condition of enrollment in medical assistance, that a
provider within a particular industry sector or category establish a compliance program that
contains the core elements established by the Centers for Medicare and Medicaid Services.

(c) The commissioner may revoke the enrollment of an ordering or rendering provider
for a period of not more than one year, if the provider fails to maintain and, upon request
from the commissioner, provide access to documentation relating to written orders or requests
for payment for durable medical equipment, certifications for home health services, or
referrals for other items or services written or ordered by such provider, when the
commissioner has identified a pattern of a lack of documentation. A pattern means a failure
to maintain documentation or provide access to documentation on more than one occasion.
Nothing in this paragraph limits the authority of the commissioner to sanction a provider
under the provisions of section 256B.064.

(d) The commissioner shall terminate or deny the enrollment of any individual or entity
if the individual or entity has been terminated from participation in Medicare or under the
Medicaid program or Children's Health Insurance Program of any other state.

(e) As a condition of enrollment in medical assistance, the commissioner shall require
that a provider designated "moderate" or "high-risk" by the Centers for Medicare and
Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
Services, its agents, or its designated contractors and the state agency, its agents, or its
designated contractors to conduct unannounced on-site inspections of any provider location.
The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
and standards used to designate Medicare providers in Code of Federal Regulations, title
42, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
The commissioner's designations are not subject to administrative appeal.

(f) As a condition of enrollment in medical assistance, the commissioner shall require
that a high-risk provider, or a person with a direct or indirect ownership interest in the
provider of five percent or higher, consent to criminal background checks, including
fingerprinting, when required to do so under state law or by a determination by the
commissioner or the Centers for Medicare and Medicaid Services that a provider is designated
high-risk for fraud, waste, or abuse.

(g)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable
medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers
meeting the durable medical equipment provider and supplier definition in clause (3),
operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is
annually renewed and designates the Minnesota Department of Human Services as the
obligee, and must be submitted in a form approved by the commissioner. For purposes of
this clause, the following medical suppliers are not required to obtain a surety bond: a
federally qualified health center, a home health agency, the Indian Health Service, a
pharmacy, and a rural health clinic.

(2) At the time of initial enrollment or reenrollment, durable medical equipment providers
and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating
provider's Medicaid revenue in the previous calendar year is up to and including $300,000,
the provider agency must purchase a surety bond of $50,000. If a revalidating provider's
Medicaid revenue in the previous calendar year is over $300,000, the provider agency must
purchase a surety bond of $100,000. deleted text begin The surety bond must allow for recovery of costs and
fees in pursuing a claim on the bond. deleted text end new text begin The surety bond must be in a form approved by the
commissioner, renewed annually, and allow for recovery of the entire value of the bond for
up to five years from the date of submission of a claim for medical assistance payment if
the enrolled provider violates this chapter or Minnesota Rules, chapter 9505, regardless of
the actual loss.
new text end

(3) "Durable medical equipment provider or supplier" means a medical supplier that can
purchase medical equipment or supplies for sale or rental to the general public and is able
to perform or arrange for necessary repairs to and maintenance of equipment offered for
sale or rental.

(h) The Department of Human Services may require a provider to purchase a surety
bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment
if: (1) the provider fails to demonstrate financial viability, (2) the department determines
there is significant evidence of or potential for fraud and abuse by the provider, or (3) the
provider or category of providers is designated high-risk pursuant to paragraph (a) and as
per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an
amount of $100,000 or ten percent of the provider's payments from Medicaid during the
immediately preceding 12 months, whichever is greater. The surety bond must name the
Department of Human Services as an obligee and must allow for recovery of costs and fees
in pursuing a claim on the bond. This paragraph does not apply if the provider currently
maintains a surety bond under the requirements in section 256B.0659 or 256B.85.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2016, section 256B.0625, subdivision 43, is amended to read:

Subd. 43.

Mental health provider travel time.

new text begin (a) new text end Medical assistance covers provider
travel time if a deleted text begin recipient's individual treatment plan deleted text end new text begin recipient new text end requires the provision of mental
health services outside of the provider's deleted text begin normal deleted text end new text begin usual new text end place of business. deleted text begin This does not include
any travel time which is included in other billable services, and is only covered when the
mental health service being provided to a recipient is covered under medical assistance.
deleted text end

new text begin (b) Mental health provider travel time under this subdivision covers the time the provider
is in transit to deliver a mental health service to a recipient at a location that is not the
provider's usual place of business or to the next location for delivery of a covered mental
health service, and the time a provider is in transit returning from the location of the last
recipient who received services on that day to the provider's usual place of business. A
provider must travel the most direct route available. Mental health provider travel time does
not include time for scheduled or unscheduled stops, meal breaks, or vehicle maintenance
or repair, including refueling or vehicle emergencies. Recipient transport is not covered
under this subdivision.
new text end

new text begin (c) Mental health provider travel time under this subdivision is only covered when the
mental health service being provided is covered under medical assistance and only when
the covered service is delivered and billed. Mental health provider travel time is not covered
when the mental health service being provided otherwise includes provider travel time or
when the service is site based.
new text end

new text begin (d) If the first occurrence of mental health provider travel time in a day begins at a
location other than the provider's usual place of business, the provider shall bill for the lesser
of the travel time between the location and the recipient and the travel time between the
provider's usual place of business and the recipient. This provision does not apply to mental
health crisis services provided under section 256B.0624 outside of normal business hours
if on-call staff are being dispatched directly from a location other than the provider's usual
place of business.
new text end

new text begin (e) Mental health provider travel time may be billed for not more than one round trip
per recipient per day.
new text end

new text begin (f) As a condition of payment, a provider must document each occurrence of mental
health provider travel time according to this subdivision. Program funds paid for mental
health provider travel time that is not documented according to this subdivision shall be
recovered by the department. The documentation may be collected and maintained
electronically or in paper form but must be made available and produced upon request. A
provider must compile records that meet the following requirements for each occurrence:
new text end

new text begin (1) the record must be in English and must be legible according to the standard of a
reasonable person;
new text end

new text begin (2) the recipient's name and date of birth or individual identification number must be on
each page of the record;
new text end

new text begin (3) the reason the provider must travel to provide services, if not otherwise documented
in the recipient's individual treatment plan; and
new text end

new text begin (4) each entry in the record must document:
new text end

new text begin (i) the date on which the entry is made;
new text end

new text begin (ii) the date the travel occurred;
new text end

new text begin (iii) the printed last name, first name, and middle initial of the provider and the provider's
identification number, if the provider has one;
new text end

new text begin (iv) the signature of the traveling provider stating that the provider understands that it
is a federal crime to provide false information on service billings for medical assistance
payments;
new text end

new text begin (v) the location of the provider's usual place of business;
new text end

new text begin (vi) the address, or the description if the address is not available, of both the origination
site and destination site and the travel time for the most direct route from the origination
site to the destination site;
new text end

new text begin (vii) any unusual travel conditions that may cause a need to bill for additional time over
and above what an electronic source document shows the mileage and time necessary to
travel from the origination site to destination site;
new text end

new text begin (viii) the time the provider left the origination site and the time the provider arrived at
the destination site, with a.m. and p.m. designations; and
new text end

new text begin (ix) the electronic source documentation used to calculate the most direct route detailing
driving directions, mileage, and time.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2016, section 256B.064, subdivision 1b, is amended to read:

Subd. 1b.

Sanctions available.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2016, section 256B.064, subdivision 2, is amended to read:

Subd. 2.

Imposition of monetary recovery and sanctions.

(a) The commissioner shall
determine any monetary amounts to be recovered and sanctions to be imposed upon a vendor
of medical care under this section. Except as provided in paragraphs (b) and (d), neither a
monetary recovery nor a sanction will be imposed by the commissioner without prior notice
and an opportunity for a hearing, according to chapter 14, on the commissioner's proposed
action, provided that the commissioner may suspend or reduce payment to a vendor of
medical care, except a nursing home or convalescent care facility, after notice and prior to
the hearing if in the commissioner's opinion that action is necessary to protect the public
welfare and the interests of the program.

(b) Except when the commissioner finds good cause not to suspend payments under
Code of Federal Regulations, title 42, section 455.23 (e) or (f), the commissioner shall
withhold or reduce payments to a vendor of medical care without providing advance notice
of such withholding or reduction if either of the following occurs:

(1) the vendor is convicted of a crime involving the conduct described in subdivision
1a; or

(2) the commissioner determines there is a credible allegation of fraud for which an
investigation is pending under the program. A credible allegation of fraud is an allegation
which has been verified by the state, from any source, including but not limited to:

(i) fraud hotline complaints;

(ii) claims data mining; and

(iii) patterns identified through provider audits, civil false claims cases, and law
enforcement investigations.

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

(c) The commissioner must send notice of the withholding or reduction of payments
under paragraph (b) within five days of taking such action unless requested in writing by a
law enforcement agency to temporarily withhold the notice. The notice must:

(1) state that payments are being withheld according to paragraph (b);

(2) set forth the general allegations as to the nature of the withholding action, but need
not disclose any specific information concerning an ongoing investigation;

(3) except in the case of a conviction for conduct described in subdivision 1a, state that
the withholding is for a temporary period and cite the circumstances under which withholding
will be terminated;

(4) identify the types of claims to which the withholding applies; and

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

The withholding or reduction of payments will not continue after the commissioner
determines there is insufficient evidence of fraud by the vendor, or after legal proceedings
relating to the alleged fraud are completed, unless the commissioner has sent notice of
intention to impose monetary recovery or sanctions under paragraph (a). new text begin Upon conviction
for a crime related to the provision, management, or administration of a health service under
medical assistance, a payment held pursuant to this section by the commissioner or a managed
care organization that contracts with the commissioner under section 256B.035 is forfeited
up to the amount of any overpayment identified by the commissioner or managed care
organization, regardless of the amount charged in the criminal complaint or the amount of
criminal restitution ordered.
new text end

(d) The commissioner shall suspend or terminate a vendor's participation in the program
without providing advance notice and an opportunity for a hearing when the suspension or
termination is required because of the vendor's exclusion from participation in Medicare.
Within five days of taking such action, the commissioner must send notice of the suspension
or termination. The notice must:

(1) state that suspension or termination is the result of the vendor's exclusion from
Medicare;

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

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

(e) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is
to be imposed, a vendor may request a contested case, as defined in section 14.02, subdivision
3, by filing with the commissioner a written request of appeal. The appeal request must be
received by the commissioner no later than 30 days after the date the notification of monetary
recovery or sanction was mailed to the vendor. The appeal request must specify:

(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount
involved for each disputed item;

(2) the computation that the vendor believes is correct;

(3) the authority in statute or rule upon which the vendor relies for each disputed item;

(4) the name and address of the person or entity with whom contacts may be made
regarding the appeal; and

(5) other information required by the commissioner.

(f) The commissioner may order a vendor to forfeit a fine for failure to fully document
services according to standards in this chapter and Minnesota Rules, chapter 9505. The
commissioner may assess fines if specific required components of documentation are
missing. The fine for incomplete documentation shall equal 20 percent of the amount paid
on the claims for reimbursement submitted by the vendor, or up to $5,000, whichever is
less. new text begin If the commissioner determines that a vendor repeatedly violated this chapter or
Minnesota Rules, chapter 9505, related to the provision of services to program recipients
and the submission of claims for payment, the commissioner may order a vendor to forfeit
a fine based on the nature, severity, and chronicity of the violations, in an amount of up to
$5,000 or 20 percent of the value of the claims, whichever is greater.
new text end

(g) The vendor shall pay the fine assessed on or before the payment date specified. If
the vendor fails to pay the fine, the commissioner may withhold or reduce payments and
recover the amount of the fine. A timely appeal shall stay payment of the fine until the
commissioner issues a final order.

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2016, section 256B.064, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

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

new text begin (a) The commissioner shall maintain
and publish a list of each excluded individual and entity that was convicted of a crime related
to the provision, management, or administration of a medical assistance health service, or
suspended or terminated under subdivision 2. A vendor that receives funding from medical
assistance shall not:
new text end

new text begin (1) employ an individual or entity who is on the exclusion list; or
new text end

new text begin (2) enter into or maintain a business relationship with an individual or entity that is on
the exclusion list.
new text end

new text begin (b) Before hiring or entering into a business transaction, a vendor must check the
exclusion list. The vendor must check the exclusion list on a monthly basis and document
the date and time the exclusion list was checked and the name and title of the person who
checked the exclusion list. The vendor must:
new text end

new text begin (1) immediately terminate a current employee on the exclusion list; and
new text end

new text begin (2) immediately terminate a business relationship with an individual or entity on the
exclusion list.
new text end

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

new text begin [256B.0646] MINNESOTA RESTRICTED RECIPIENT PROGRAM.
new text end

new text begin (a) When a recipient's use of personal care assistance or home and community-based
personal care services and supports results in repeated abusive or fraudulent billing, regardless
of error, fault, or intent, the commissioner may place the recipient in the Minnesota restricted
recipient program. A recipient placed in the Minnesota restricted recipient program under
this section must:
new text end

new text begin (1) be placed with a traditional personal care assistance provider agency or use an agency
provider model; and
new text end

new text begin (2) obtain a referral from the recipient's designated primary care provider for personal
care assistance or home and community-based personal care services and supports.
new text end

new text begin (b) Additional conditions may be placed on the use of personal care assistance services
or home and community-based personal care services and supports if the commissioner
determines it is necessary to prevent future abusive or fraudulent billing.
new text end

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

new text begin (d) Placement in the Minnesota restricted recipient program under this section is subject
to appeal according to section 256B.064.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2016, section 256B.0651, subdivision 17, is amended to read:

Subd. 17.

Recipient protection.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2016, section 256B.0659, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Noncovered deleted text end Personal care assistance services new text begin not covered new text end .

(a) Personal care
assistance services are not eligible for medical assistance payment under this section when
provided:

(1) by the recipient's spouse, parent of a recipient under the age of 18, paid legal guardian,
licensed foster provider, except as allowed under section 256B.0652, subdivision 10, or
responsible party;

(2) in order to meet staffing or license requirements in a residential or child care setting;

(3) solely as a child care or babysitting service; deleted text begin or
deleted text end

(4) without authorization by the commissioner or the commissioner's designee deleted text begin . deleted text end new text begin ; or
new text end

new text begin (5) on dates not within the frequency requirements of subdivision 14, paragraph (c), and
subdivision 19, paragraph (a).
new text end

(b) The following personal care services are not eligible for medical assistance payment
under this section when provided in residential settings:

(1) when the provider of home care services who is not related by blood, marriage, or
adoption owns or otherwise controls the living arrangement, including licensed or unlicensed
services; or

(2) when personal care assistance services are the responsibility of a residential or
program license holder under the terms of a service agreement and administrative rules.

(c) Other specific tasks not covered under paragraph (a) or (b) that are not eligible for
medical assistance reimbursement for personal care assistance services under this section
include:

(1) sterile procedures;

(2) injections of fluids and medications into veins, muscles, or skin;

(3) home maintenance or chore services;

(4) homemaker services not an integral part of assessed personal care assistance services
needed by a recipient;

(5) application of restraints or implementation of procedures under section 245.825;

(6) instrumental activities of daily living for children under the age of 18, except when
immediate attention is needed for health or hygiene reasons integral to the personal care
services and the need is listed in the service plan by the assessor; and

(7) assessments for personal care assistance services by personal care assistance provider
agencies or by independently enrolled registered nurses.

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2016, section 256B.0659, subdivision 12, is amended to read:

Subd. 12.

Documentation of personal care assistance services provided.

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

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

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

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

(2) provider name and telephone numbers;

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

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

(5) signatures of recipient or the responsible party;

(6) personal signature of the personal care assistant;

(7) any shared care provided, if applicable;

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2016, section 256B.0659, subdivision 14, is amended to read:

Subd. 14.

Qualified professional; duties.

(a) Effective January 1, 2010, all personal
care assistants must be supervised by a qualified professional.

(b) Through direct training, observation, return demonstrations, and consultation with
the staff and the recipient, the qualified professional must ensure and document that the
personal care assistant is:

(1) capable of providing the required personal care assistance services;

(2) knowledgeable about the plan of personal care assistance services before services
are performed; and

(3) able to identify conditions that should be immediately brought to the attention of the
qualified professional.

(c) The qualified professional shall evaluate the personal care assistant within the first
14 days of starting to provide regularly scheduled services for a recipient, or sooner as
determined by the qualified professional, except for the personal care assistance choice
option under subdivision 19, paragraph (a), clause (4). For the initial evaluation, the qualified
professional shall evaluate the personal care assistance services for a recipient through direct
observation of a personal care assistant's work. The qualified professional may conduct
additional training and evaluation visits, based upon the needs of the recipient and the
personal care assistant's ability to meet those needs. Subsequent visits to evaluate the personal
care assistance services provided to a recipient do not require direct observation of each
personal care assistant's work and shall occur:

(1) at least every 90 days thereafter for the first year of a recipient's services;

(2) every 120 days after the first year of a recipient's service or whenever needed for
response to a recipient's request for increased supervision of the personal care assistance
staff; and

(3) after the first 180 days of a recipient's service, supervisory visits may alternate
between unscheduled phone or Internet technology and in-person visits, unless the in-person
visits are needed according to the care plan.

(d) Communication with the recipient is a part of the evaluation process of the personal
care assistance staff.

(e) At each supervisory visit, the qualified professional shall evaluate personal care
assistance services including the following information:

(1) satisfaction level of the recipient with personal care assistance services;

(2) review of the month-to-month plan for use of personal care assistance services;

(3) review of documentation of personal care assistance services provided;

(4) whether the personal care assistance services are meeting the goals of the service as
stated in the personal care assistance care plan and service plan;

(5) a written record of the results of the evaluation and actions taken to correct any
deficiencies in the work of a personal care assistant; and

(6) revision of the personal care assistance care plan as necessary in consultation with
the recipient or responsible party, to meet the needs of the recipient.

(f) The qualified professional shall complete the required documentation in the agency
recipient and employee files and the recipient's home, including the following documentation:

(1) the personal care assistance care plan based on the service plan and individualized
needs of the recipient;

(2) a month-to-month plan for use of personal care assistance services;

(3) changes in need of the recipient requiring a change to the level of service and the
personal care assistance care plan;

(4) evaluation results of supervision visits and identified issues with personal care
assistance staff with actions taken;

(5) all communication with the recipient and personal care assistance staff; deleted text begin and
deleted text end

(6) hands-on training or individualized training for the care of the recipient deleted text begin . deleted text end new text begin ;
new text end

new text begin (7) the month, day, and year, and arrival and departure times with a.m. or p.m.
designations of each visit or call to the recipient when services are provided; and
new text end

new text begin (8) the total amount of time of each service visit with the recipient.
new text end

(g) The documentation in paragraph (f) must be done on agency templates.

(h) The services that are not eligible for payment as qualified professional services
include:

(1) direct professional nursing tasks that could be assessed and authorized as skilled
nursing tasks;

new text begin (2) the time spent documenting services;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end agency administrative activities;

deleted text begin (3) deleted text end new text begin (4) new text end training other than the individualized training required to provide care for a
recipient; and

deleted text begin (4) deleted text end new text begin (5) new text end any other activity that is not described in this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2016, section 256B.0659, subdivision 21, is amended to read:

Subd. 21.

Requirements for provider enrollment of personal care assistance provider
agencies.

(a) All personal care assistance provider agencies must provide, at the time of
enrollment, reenrollment, and revalidation as a personal care assistance provider agency in
a format determined by the commissioner, information and documentation that includes,
but is not limited to, the following:

(1) the personal care assistance provider agency's current contact information including
address, telephone number, and e-mail address;

(2) proof of surety bond coverage. Upon new enrollment, or if the provider's Medicaid
revenue in the previous calendar year is up to and including $300,000, the provider agency
must purchase a surety bond of $50,000. If the Medicaid revenue in the previous year is
over $300,000, the provider agency must purchase a surety bond of $100,000. The surety
bond must be in a form approved by the commissioner, must be renewed annually, and must
allow for recovery of deleted text begin costs and fees in pursuing a claim on the bond deleted text end new text begin the entire value of the
bond for up to five years from the date of submission of a claim for medical assistance
payment if the enrolled provider violates this chapter or Minnesota Rules, chapter 9505,
regardless of the actual loss new text end ;

(3) proof of fidelity bond coverage in the amount of $20,000;

(4) proof of workers' compensation insurance coverage;

(5) proof of liability insurance;

(6) a description of the personal care assistance provider agency's organization identifying
the names of all owners, managing employees, staff, board of directors, and the affiliations
of the directors, owners, or staff to other service providers;

(7) a copy of the personal care assistance provider agency's written policies and
procedures including: hiring of employees; training requirements; service delivery; and
employee and consumer safety including process for notification and resolution of consumer
grievances, identification and prevention of communicable diseases, and employee
misconduct;

(8) copies of all other forms the personal care assistance provider agency uses in the
course of daily business including, but not limited to:

(i) a copy of the personal care assistance provider agency's time sheet if the time sheet
varies from the standard time sheet for personal care assistance services approved by the
commissioner, and a letter requesting approval of the personal care assistance provider
agency's nonstandard time sheet;

(ii) the personal care assistance provider agency's template for the personal care assistance
care plan; and

(iii) the personal care assistance provider agency's template for the written agreement
in subdivision 20 for recipients using the personal care assistance choice option, if applicable;

(9) a list of all training and classes that the personal care assistance provider agency
requires of its staff providing personal care assistance services;

(10) documentation that the personal care assistance provider agency and staff have
successfully completed all the training required by this section;

(11) documentation of the agency's marketing practices;

(12) disclosure of ownership, leasing, or management of all residential properties that
is used or could be used for providing home care services;

(13) documentation that the agency will use the following percentages of revenue
generated from the medical assistance rate paid for personal care assistance services for
employee personal care assistant wages and benefits: 72.5 percent of revenue in the personal
care assistance choice option and 72.5 percent of revenue from other personal care assistance
providers. The revenue generated by the qualified professional and the reasonable costs
associated with the qualified professional shall not be used in making this calculation; and

(14) effective May 15, 2010, documentation that the agency does not burden recipients'
free exercise of their right to choose service providers by requiring personal care assistants
to sign an agreement not to work with any particular personal care assistance recipient or
for another personal care assistance provider agency after leaving the agency and that the
agency is not taking action on any such agreements or requirements regardless of the date
signed.

(b) Personal care assistance provider agencies shall provide the information specified
in paragraph (a) to the commissioner at the time the personal care assistance provider agency
enrolls as a vendor or upon request from the commissioner. The commissioner shall collect
the information specified in paragraph (a) from all personal care assistance providers
beginning July 1, 2009.

(c) All personal care assistance provider agencies shall require all employees in
management and supervisory positions and owners of the agency who are active in the
day-to-day management and operations of the agency to complete mandatory training as
determined by the commissioner before enrollment of the agency as a provider. Employees
in management and supervisory positions and owners who are active in the day-to-day
operations of an agency who have completed the required training as an employee with a
personal care assistance provider agency do not need to repeat the required training if they
are hired by another agency, if they have completed the training within the past three years.
By September 1, 2010, the required training must be available with meaningful access
according to title VI of the Civil Rights Act and federal regulations adopted under that law
or any guidance from the United States Health and Human Services Department. The
required training must be available online or by electronic remote connection. The required
training must provide for competency testing. Personal care assistance provider agency
billing staff shall complete training about personal care assistance program financial
management. This training is effective July 1, 2009. Any personal care assistance provider
agency enrolled before that date shall, if it has not already, complete the provider training
within 18 months of July 1, 2009. Any new owners or employees in management and
supervisory positions involved in the day-to-day operations are required to complete
mandatory training as a requisite of working for the agency. Personal care assistance provider
agencies certified for participation in Medicare as home health agencies are exempt from
the training required in this subdivision. When available, Medicare-certified home health
agency owners, supervisors, or managers must successfully complete the competency test.

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2016, section 256B.4912, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Service documentation and billing requirements. new text end

new text begin (a) Only a service provided
as specified in a federally approved waiver plan, as authorized under sections 256B.0913,
256B.0915, 256B.092, and 256B.49, is eligible for payment. A service provided on days
and times other than the days and hours of operation specified on any license that is required
under chapter 245A or 245D is not eligible for payment. As a condition of payment, a home
and community-based waiver provider must document each time a service was provided to
a recipient. Payment for services not documented according to this subdivision, not specified
in a federally approved waiver plan, or not provided during the days and hours of operation
specified on any license required under chapter 245A or 245D may be recovered by the
commissioner according to section 256B.064 and Minnesota Rules, parts 9505.2160 to
9505.2245.
new text end

new text begin (b) For payment of a service, documentation must meet the standards in paragraphs (c)
to (k).
new text end

new text begin (c) The service delivered to a recipient must be documented in the provider's record of
service delivery.
new text end

new text begin (d) The recipient's name and recipient identification number must be entered on each
document.
new text end

new text begin (e) The provider's record of service delivery must be in English and must be legible
according to the standard of a reasonable person.
new text end

new text begin (f) The provider's record of service delivery must contain a statement that it is a federal
crime to provide false information on service billings for medical assistance or for services
provided under a federally approved waiver plan, as authorized under sections 256B.0913,
256B.0915, 256B.092, and 256B.49.
new text end

new text begin (g) If an entry is a time-based service, each entry in the provider's record of service
delivery must contain:
new text end

new text begin (1) the date that the entry was made;
new text end

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

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

new text begin (4) the start and stop times with a.m. and p.m. designations, except for case management
services as defined under sections 256B.0913, subdivision 7, 256B.0915, subdivision 1a,
256B.092, subdivision 1a, and 256B.49, subdivision 13; and
new text end

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

new text begin (h) For all other services each entry in the provider's record of service delivery must
contain:
new text end

new text begin (1) the date the entry of service delivery was made;
new text end

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

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

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

new text begin (5) for residential supports and services under section 245D.03, subdivision 1, paragraph
(c), clause (3), an entry in the provider's record of service delivery under this subdivision
shall occur at least monthly.
new text end

new text begin (i) If the service billed is transportation, each entry must contain the information from
paragraphs (c) to (f) and (h). A provider must:
new text end

new text begin (1) maintain odometer and other records pursuant to section 256B.0625, subdivision
17b, paragraph (b), clause (3), sufficient to distinguish an individual trip with a specific
vehicle and driver for a transportation service that is billed by mileage, except if the provider
is a common carrier as defined by Minnesota Rules, part 9505.0315, subpart 1, item B, or
publicly operated transit systems. This documentation may be collected and maintained
electronically or in paper form, but must be made available and produced upon request;
new text end

new text begin (2) maintain documentation demonstrating that a vehicle and a driver meets the standards
determined by the Department of Human Services on vehicle and driver qualifications;
new text end

new text begin (3) only bill a waivered transportation service if the transportation is not to or from a
health care service available through the Medicaid state plan; and
new text end

new text begin (4) only bill a waivered transportation service when the rate for waiver service does not
include transportation.
new text end

new text begin (j) If the service provided is equipment or supplies, the documentation must contain the
information from paragraphs (c) to (f) and:
new text end

new text begin (1) the recipient's assessed need for the equipment or supplies and the reason the
equipment or supplies are not covered by the Medicaid state plan;
new text end

new text begin (2) the type and brand name of equipment or supplies delivered to or purchased by the
recipient, including whether the equipment or supplies were rented or purchased;
new text end

new text begin (3) the quantity of supplies delivered or purchased;
new text end

new text begin (4) the shipping invoice or a delivery service tracking log or other documentation showing
the date of delivery that proves the equipment or supplies were delivered to the recipient
or a receipt if the equipment or supplies were purchased by the recipient; and
new text end

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

new text begin (k) A service defined as "adult day care" under section 245A.02, subdivision 2a, and
licensed under Minnesota Rules, parts 9555.9600 to 9555.9730, must meet the documentation
standards specified in paragraphs (c) to (g) and must comply with the following:
new text end

new text begin (1) individual recipient's service records must contain the following:
new text end

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

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

new text begin (2) entity records must contain the following:
new text end

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

new text begin (ii) the names and qualifications of the registered physical therapists, registered nurses,
and registered dietitians who provide services to the adult day care or nonresidential program;
and
new text end

new text begin (iii) the location where the service was provided and, if the location is an alternate
location than the primary place of service, the record must contain the address, or the
description if the address is not available, of both the origin and destination location, the
length of time at the alternate location with a.m. and p.m. designations, and a list of recipients
who went to the alternate location.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 36.

Minnesota Statutes 2016, section 393.07, subdivision 10, is amended to read:

Subd. 10.

Food stamp program; Maternal and Child Nutrition Act.

(a) The local
social services agency shall establish and administer the food stamp program according to
rules of the commissioner of human services, the supervision of the commissioner as specified
in section 256.01, and all federal laws and regulations. The commissioner of human services
shall monitor food stamp program delivery on an ongoing basis to ensure that each county
complies with federal laws and regulations. Program requirements to be monitored include,
but are not limited to, number of applications, number of approvals, number of cases pending,
length of time required to process each application and deliver benefits, number of applicants
eligible for expedited issuance, length of time required to process and deliver expedited
issuance, number of terminations and reasons for terminations, client profiles by age,
household composition and income level and sources, and the use of phone certification
and home visits. The commissioner shall determine the county-by-county and statewide
participation rate.

(b) On July 1 of each year, the commissioner of human services shall determine a
statewide and county-by-county food stamp program participation rate. The commissioner
may designate a different agency to administer the food stamp program in a county if the
agency administering the program fails to increase the food stamp program participation
rate among families or eligible individuals, or comply with all federal laws and regulations
governing the food stamp program. The commissioner shall review agency performance
annually to determine compliance with this paragraph.

(c) A person who commits any of the following acts has violated section 256.98 or
609.821, or both, and is subject to both the criminal and civil penalties provided under those
sections:

(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a
willful statement or misrepresentation, or intentional concealment of a material fact, food
stamps or vouchers issued according to sections 145.891 to 145.897 to which the person is
not entitled or in an amount greater than that to which that person is entitled or which specify
nutritional supplements to which that person is not entitled; or

(2) presents or causes to be presented, coupons or vouchers issued according to sections
145.891 to 145.897 for payment or redemption knowing them to have been received,
transferred or used in a manner contrary to existing state or federal law; or

(3) willfully uses, possesses, or transfers food stamp coupons, authorization to purchase
cards or vouchers issued according to sections 145.891 to 145.897 in any manner contrary
to existing state or federal law, rules, or regulations; or

(4) buys or sells food stamp coupons, authorization to purchase cards, other assistance
transaction devices, vouchers issued according to sections 145.891 to 145.897, or any food
obtained through the redemption of vouchers issued according to sections 145.891 to 145.897
for cash or consideration other than eligible food.

deleted text begin (d) A peace officer or welfare fraud investigator may confiscate food stamps,
authorization to purchase cards, or other assistance transaction devices found in the
possession of any person who is neither a recipient of the food stamp program nor otherwise
authorized to possess and use such materials. Confiscated property shall be disposed of as
the commissioner may direct and consistent with state and federal food stamp law. The
confiscated property must be retained for a period of not less than 30 days to allow any
affected person to appeal the confiscation under section 256.045.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end Establishment of an overpayment is limited to 12 months prior to the month of
discovery due to agency error. Establishment of an overpayment is limited to six years prior
to the month of discovery due to client error or an intentional program violation determined
under section 256.046.

deleted text begin (f) deleted text end new text begin (e) new text end With regard to the federal tax revenue offset program only, recovery incentives
authorized by the federal food and consumer service shall be retained at the rate of 50 percent
by the state agency and 50 percent by the certifying county agency.

deleted text begin (g) deleted text end new text begin (f) new text end A peace officer, welfare fraud investigator, federal law enforcement official, or
the commissioner of health may confiscate vouchers found in the possession of any person
who is neither issued vouchers under sections 145.891 to 145.897, nor otherwise authorized
to possess and use such vouchers. Confiscated property shall be disposed of as the
commissioner of health may direct and consistent with state and federal law. The confiscated
property must be retained for a period of not less than 30 days.

deleted text begin (h) deleted text end new text begin (g) new text end The commissioner of human services may seek a waiver from the United States
Department of Agriculture to allow the state to specify foods that may and may not be
purchased in Minnesota with benefits funded by the federal Food Stamp Program. The
commissioner shall consult with the members of the house of representatives and senate
policy committees having jurisdiction over food support issues in developing the waiver.
The commissioner, in consultation with the commissioners of health and education, shall
develop a broad public health policy related to improved nutrition and health status. The
commissioner must seek legislative approval prior to implementing the waiver.

new text begin EFFECTIVE DATE. new text end

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

Sec. 37. new text begin PROGRAM SIMPLIFICATION AND UNIFORMITY ADVISORY
COMMITTEE.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin (a) The Program Simplification and Uniformity Advisory
Committee shall advise the commissioner of human services on policies and procedures to
create a human services delivery system that simplifies and aligns agency programs. The
committee shall meet at least quarterly and may meet more frequently as required by the
commissioner. The committee shall annually elect a chair from its members, who shall work
with the commissioner to establish the agenda for each meeting. The commissioner, or the
commissioner's designee, shall attend each advisory committee meeting.
new text end

new text begin (b) The Program Simplification and Uniformity Advisory Committee shall advise and
make recommendations to the commissioner on the development of policies, strategies, and
approaches to simplify, align, and unify programs that:
new text end

new text begin (1) ensure program integrity by preventing waste, fraud, and abuse, and improve program
efficiency;
new text end

new text begin (2) reduce program redundancies and duplication;
new text end

new text begin (3) prepare for and facilitate the development and implementation of new information
technology eligibility systems;
new text end

new text begin (4) promote client-centered programs; and
new text end

new text begin (5) promote the development and implementation of an integrated human services
eligibility and delivery system.
new text end

new text begin Subd. 2. new text end

new text begin Members. new text end

new text begin The Program Simplification and Uniformity Advisory Committee
consists of:
new text end

new text begin (1) four voting members who represent county and social service administrators, at least
two of whom must represent a county other than Anoka, Carver, Chisago, Dakota, Hennepin,
Isanti, Ramsey, Scott, Sherburne, Washington, or Wright;
new text end

new text begin (2) two voting members who represent tribal social service agencies;
new text end

new text begin (3) four voting members of agencies and organizations who represent public assistance
recipients, including persons with physical and developmental disabilities, persons with
mental illness, seniors, parents or legal guardians of children, or low-income individuals;
new text end

new text begin (4) four voting members who are users of public human services programs, including
persons with physical and developmental disabilities, persons with mental illness, seniors,
parents or legal guardians of children, or low-income individuals;
new text end

new text begin (5) two voting members who represent county financial and eligibility workers;
new text end

new text begin (6) two voting members of the house of representatives, one from the majority party
appointed by the speaker of the house and one from the minority party appointed by the
minority leader, and two voting members from the senate, one from the majority party
appointed by the senate majority leader and one from the minority party appointed by the
senate minority leader;
new text end

new text begin (7) four at-large voting members as determined by the members under clauses (1) to
(4);
new text end

new text begin (8) up to four nonvoting members appointed by the commissioner of human services
who are program policy experts to provide technical support to the committee;
new text end

new text begin (9) one nonvoting member appointed by the commissioner of health who is a program
policy expert to provide technical support to the committee;
new text end

new text begin (10) one nonvoting member appointed by the commissioner of employment and economic
development who is a program policy expert to provide technical support to the committee;
and
new text end

new text begin (11) one nonvoting member appointed by the commissioner of commerce who is a
program policy expert to provide technical support to the committee.
new text end

new text begin Subd. 3. new text end

new text begin Voting members and compensation. new text end

new text begin A voting committee member shall not
be employed by the state of Minnesota except for voting members appointed under
subdivision 2, clause (6). A committee member shall not receive compensation for committee
work.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This committee expires June 30, 2021.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires June 30, 2021.
new text end