Minnesota Legislature
HF 4782
as introduced - 93rd Legislature (2023 - 2024) Posted on 03/11/2024 02:15pm
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 2.1 2.2 2.3 2.4
2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14
3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6
4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15
4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8
6.9 6.10
A bill for an act
relating to human services; prohibiting kickbacks in human services benefits;
providing for criminal penalties; amending Minnesota Statutes 2022, sections
245E.02, subdivision 3a; 256.98, subdivision 1; 256B.12; Minnesota Statutes 2023
Supplement, section 256.046, subdivision 3; proposing coding for new law in
Minnesota Statutes, chapter 609.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 245E.02, subdivision 3a, is amended to read:
Subd. 3a.
Prohibited deleted text begin hiring practicedeleted text end new text begin practicesnew text end .
new text begin (a) new text end It is prohibited to hire a child care
center employee when, as a condition of employment, the employee is required to have one
or more children who are eligible for or receive child care assistance, if:
(1) the individual hiring the employee is, or is acting at the direction of or in cooperation
with, a child care center provider, center owner, director, manager, license holder, or other
controlling individual; and
(2) the individual hiring the employee knows or has reason to know the purpose in hiring
the employee is to obtain child care assistance program funds.
new text begin
(b) Program applicants, participants, and providers are prohibited from receiving or
providing a kickback or payment in exchange for obtaining or attempting to obtain child
care assistance benefits for their own financial gain. This paragraph does not apply to:
new text end
new text begin
(1) marketing or promotional offerings that directly benefit an applicant or recipient's
child or dependent for whom the child care provider is providing child care services; or
new text end
new text begin
(2) child care provider discounts, scholarships, or other financial assistance allowed
under section 119B.13, subdivision 4.
new text end
new text begin
(c) The commissioner shall consider an applicant, participant, or provider's attempt to
buy or sell access to a family's child care subsidy benefits to an unauthorized person to be
a kickback, an intentional program violation under section 256.046, subdivision 3, and
wrongfully obtaining assistance under section 256.98.
new text end
Sec. 2.
Minnesota Statutes 2023 Supplement, section 256.046, subdivision 3, is amended
to read:
Subd. 3.
Administrative disqualification of child care providers caring for children
receiving child care assistance.
(a) The department shall pursue an administrative
disqualification, if the child care provider is accused of committing an intentional program
violation, in lieu of a criminal action when it has not been pursued. Intentional program
violations include intentionally making false or misleading statements;new text begin receiving or providing
a kickback, as defined in section 245E.02, subdivision 3a, paragraph (b);new text end intentionally
misrepresenting, concealing, or withholding facts; and repeatedly and intentionally violating
program regulations under chapters 119B and 245E. Intent may be proven by demonstrating
a pattern of conduct that violates program rules under chapters 119B and 245E.
(b) To initiate an administrative disqualification, the commissioner must mail written
notice by certified mail to the provider against whom the action is being taken. Unless
otherwise specified under chapter 119B or 245E or Minnesota Rules, chapter 3400, the
commissioner must mail the written notice at least 15 calendar days before the adverse
action's effective date. The notice shall state (1) the factual basis for the agency's
determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary
recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed
action.
(c) The provider may appeal an administrative disqualification by submitting a written
request to the Department of Human Services, Appeals Division. A provider's request must
be received by the Appeals Division no later than 30 days after the date the commissioner
mails the notice.
(d) The provider's appeal request must contain the following:
(1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the
dollar amount involved for each disputed item;
(2) the computation the provider believes to be correct, if applicable;
(3) the statute or rule relied on for each disputed item; and
(4) the name, address, and telephone number of the person at the provider's place of
business with whom contact may be made regarding the appeal.
(e) On appeal, the issuing agency bears the burden of proof to demonstrate by a
preponderance of the evidence that the provider committed an intentional program violation.
(f) The hearing is subject to the requirements of sections 256.045 and 256.0451. The
human services judge may combine a fair hearing and administrative disqualification hearing
into a single hearing if the factual issues arise out of the same or related circumstances and
the provider receives prior notice that the hearings will be combined.
(g) A provider found to have committed an intentional program violation and is
administratively disqualified shall be disqualified, for a period of three years for the first
offense and permanently for any subsequent offense, from receiving any payments from
any child care program under chapter 119B.
(h) Unless a timely and proper appeal made under this section is received by the
department, the administrative determination of the department is final and binding.
Sec. 3.
Minnesota Statutes 2022, section 256.98, subdivision 1, is amended to read:
Subdivision 1.
Wrongfully obtaining assistance.
(a) A person who commits any of the
following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897,
the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program
formerly codified in sections 256.72 to 256.871, chapter 256B, 256D, 256I, 256J, 256K, or
256L, child care assistance programs, and emergency assistance programs under section
256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses
(1) to (5):
(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a
willfully false statement or representation, by intentional concealment of any material fact,
or by impersonation or other fraudulent device, assistance or the continued receipt of
assistance, to include child care assistance or food benefits produced according to sections
145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94,
and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that
to which the person is entitled;
(2) knowingly aids or abets in buying or in any way disposing of the property of a
recipient or applicant of assistance without the consent of the county agency; or
(3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments
to which the individual is not entitled as a provider of subsidized child care, or by new text begin receiving
or providing a kickback, as defined in section 245E.02, subdivision 3a, paragraph (b), or
new text end furnishing or concurring in a willfully false claim for child care assistance.
(b) The continued receipt of assistance to which the person is not entitled or greater than
that to which the person is entitled as a result of any of the acts, failure to act, or concealment
described in this subdivision shall be deemed to be continuing offenses from the date that
the first act or failure to act occurred.
Sec. 4.
Minnesota Statutes 2022, section 256B.12, is amended to read:
256B.12 LEGAL REPRESENTATION.
The attorney general or the appropriate county attorney appearing at the direction of the
attorney general shall be the attorney for the state agency, and the county attorney of the
appropriate county shall be the attorney for the deleted text begin localdeleted text end agency in all matters pertaining hereto.
To prosecute under this chapter or sections 609.466 deleted text begin anddeleted text end new text begin ,new text end 609.52, subdivision 2, new text begin and 609.542
new text end or to recover payments wrongfully made under this chapter, the attorney general or the
appropriate county attorney, acting independently or at the direction of the attorney general
may institute a criminal or civil action.
Sec. 5.
new text begin
[609.542] HUMAN SERVICES PROGRAMS CRIMES.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
For purposes of this section, "federal health care program"
has the meaning given in United States Code, title 42, section 1320a-7b(f).
new text end
new text begin Subd. 2. new text end
new text begin Prohibited payments made relating to human services programs. new text end
new text begin
A person
is guilty of a crime and may be sentenced as provided in subdivision 5 if the person
intentionally offers or pays any remuneration, including any kickback, bribe, or rebate,
directly or indirectly, overtly or covertly, in cash or in kind, to another person:
new text end
new text begin
(1) to induce that person to apply for, receive, or induce another person to apply for or
receive an item or service for which payment may be made in whole or in part under a
federal health care program, state behavioral health program under section 254B.04, or
family program under chapter 119A or 119B; or
new text end
new text begin
(2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing,
leasing, or ordering of any good, facility, service, or item for which payment may be made
in whole or in part, or which is administered in whole or in part under a federal health care
program, state behavioral health program under section 254B.04, or family program under
or chapter 119A or 119B.
new text end
new text begin Subd. 3. new text end
new text begin Receipt of prohibited payments relating to human services programs. new text end
new text begin
A
person is guilty of a crime and may be sentenced as provided in subdivision 5 if the person
intentionally solicits or receives any remuneration, including any kickback, bribe, or rebate,
directly or indirectly, overtly or covertly, in cash or in kind:
new text end
new text begin
(1) in return for applying for or receiving a human services benefit, service, or grant for
which payment may be made in whole or in part under a federal health care program, state
behavioral health program under section 254B.04, or family program under chapter 119A
or 119B; or
new text end
new text begin
(2) in return for purchasing, leasing, ordering, or arranging for or inducing the purchasing,
leasing, or ordering of any good, facility, service, or item for which payment may be made
in whole or in part under a federal health care program, state behavioral health program
under section 254B.04, or family program under chapter 119A or 119B.
new text end
new text begin Subd. 4. new text end
new text begin Exemptions. new text end
new text begin
(a) This section does not apply to remuneration exempted under
the Anti-Kickback Statute, United States Code, title 42, section 1320a-7b(b)(3), or payment
made under a federal health care program which is exempt from liability by United States
Code, title 42, section 1001.952.
new text end
new text begin
(b) This section does not apply to:
new text end
new text begin
(1) any amount paid by an employer to a bona fide employee for providing covered
items or services under chapter 119B while acting in the course and scope of employment;
or
new text end
new text begin
(2) child care provider discounts, scholarships, or other financial assistance to families
allowed under section 119B.13, subdivision 4.
new text end
new text begin Subd. 5. new text end
new text begin Sentence. new text end
new text begin
(a) A person convicted under subdivision 2 or 3 may be sentenced
pursuant to section 609.52, subdivision 3.
new text end
new text begin
(b) For purposes of sentencing a violation of subdivision 2, "value" means the fair market
value of the good, facility, service, or item that was obtained as a direct or indirect result
of the prohibited payment.
new text end
new text begin
(c) For purposes of sentencing a violation of subdivision 3, "value" means the amount
of the prohibited payment solicited or received.
new text end
new text begin
(d) As a matter of law, a claim for any good, facility, service, or item rendered or claimed
to have been rendered in violation of this section is noncompensable and unenforceable at
the time it is made.
new text end
new text begin Subd. 6. new text end
new text begin Aggregation. new text end
new text begin
In any prosecution under this section, the value of the money,
property, or benefit received or solicited by the defendant within any six-month period may
be aggregated and the defendant charged accordingly in applying the provisions of
subdivision 5.
new text end
new text begin Subd. 7. new text end
new text begin False claims. new text end
new text begin
In addition to the penalties provided for in this section, a claim,
as defined in section 15C.01, subdivision 2, that includes items or services resulting from
a violation of this section constitutes a false or fraudulent claim for purposes of section
15C.02.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2024, and applies to crimes
committed on or after that date.
new text end