SF 1292

2nd Engrossment - 90th Legislature (2017 - 2018) Posted on 02/22/2018 02:59pm

A bill for an act
relating to human services; modifying provisions governing children and families
services, mental health services, community services system data sharing, and
operations; amending Minnesota Statutes 2016, sections 13.32, by adding a
subdivision; 13.46, subdivisions 1, 2; 13.84, subdivision 5; 245A.02, subdivision
3, by adding a subdivision; 245A.03, subdivision 3; 245A.04, subdivision 1;
245A.07, subdivisions 1, 2, 2a, 3; 245A.08, subdivision 3; 245C.02, subdivisions
5, 13b, by adding subdivisions; 245C.05, subdivisions 1, 5; 245C.08, subdivisions
1, 3; 245C.12; 245C.32, subdivisions 1a, 2, 3; 245C.33, subdivision 4; 245C.34,
subdivision 4; 253D.28, subdivision 3; 260C.101, by adding a subdivision;
260C.171, subdivision 2; 260C.515, subdivision 4; 260C.625; 260C.629,
subdivision 2; 626.556, subdivisions 2, 3, 10f, 10j, 10m; 626.558, subdivision 2;
repealing Minnesota Statutes 2016, section 13.468.

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

ARTICLE 1

CHILDREN AND FAMILIES SERVICES

Section 1.

Minnesota Statutes 2016, section 260C.101, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Provisions inapplicable to a child in foster care. new text end

new text begin If the court orders a child
placed under the protective care or legal custody of the responsible social services agency
pursuant to section 260C.151, subdivision 6; 260C.178; or 260C.201, then the provisions
of section 524.5-211 and chapter 257B have no force and effect and any delegation of power
by parent or guardian or designation of standby custodian are terminated by the court's
order.
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 260C.171, subdivision 2, is amended to read:

Subd. 2.

Public inspection of records.

(a) The records from proceedings or portions of
proceedings involving a child in need of protection or services, permanency, or termination
of parental rights are accessible to the public as authorized by the Minnesota Rules of
Juvenile Protection Procedure new text begin , except that the court shall maintain the confidentiality of a
child's educational records. A petition filed alleging a child to be habitually truant under
section 260C.007, subdivision 6, clause (14), shall not be considered a record or information
of the child's education. The court shall maintain the confidentiality of any record filed in
proceedings under chapter 260D new text end .

(b) None of the records relating to an appeal from a nonpublic juvenile court proceeding,
except the written appellate opinion, shall be open to public inspection or their contents
disclosed except by order of a court.

(c) The records of juvenile probation officers are records of the court for the purposes
of this subdivision. This subdivision applies to all proceedings under this chapter, including
appeals from orders of the juvenile court. The court shall maintain the confidentiality of
adoption files and records in accordance with the provisions of laws relating to adoptions.
In juvenile court proceedings any report or social history furnished to the court shall be
open to inspection by the attorneys of record and the guardian ad litem a reasonable time
before it is used in connection with any proceeding before the court.

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 260C.515, subdivision 4, is amended to read:

Subd. 4.

Custody to relative.

The court may order permanent legal and physical custody
to a fit and willing relative in the best interests of the child according to the following
requirements:

(1) an order for transfer of permanent legal and physical custody to a relative shall only
be made after the court has reviewed the suitability of the prospective legal and physical
custodian;

(2) in transferring permanent legal and physical custody to a relative, the juvenile court
shall follow the standards applicable under this chapter and chapter 260, and the procedures
in the Minnesota Rules of Juvenile Protection Procedure;

(3) a transfer of legal and physical custody includes responsibility for the protection,
education, care, and control of the child and decision making on behalf of the child;

(4) a permanent legal and physical custodian may not return a child to the permanent
care of a parent from whom the court removed custody without the court's approval and
without notice to the responsible social services agency;

(5) the social services agency may file a petition naming a fit and willing relative as a
proposed permanent legal and physical custodian. A petition for transfer of permanent legal
and physical custody to a relative who is not a parent shall be accompanied by a kinship
placement agreement under section 256N.22, subdivision 2, between the agency and proposed
permanent legal and physical custodian;

(6) another party to the permanency proceeding regarding the child may file a petition
to transfer permanent legal and physical custody to a relative. The petition must include
facts upon which the court can make the determination required under clause (7) and must
be filed not later than the date for the required admit-deny hearing under section 260C.507;
or if the agency's petition is filed under section 260C.503, subdivision 2, the petition must
be filed not later than 30 days prior to the trial required under section 260C.509;

(7) where a petition is for transfer of permanent legal and physical custody to a relative
who is not a parent, the court must find that:

(i) transfer of permanent legal and physical custody and receipt of Northstar kinship
assistance under chapter 256N, when requested and the child is eligible, are in the child's
best interests;

(ii) adoption is not in the child's best interests based on the determinations in the kinship
placement agreement required under section 256N.22, subdivision 2;

(iii) the agency made efforts to discuss adoption with the child's parent or parents, or
the agency did not make efforts to discuss adoption and the reasons why efforts were not
made; and

(iv) there are reasons to separate siblings during placement, if applicable deleted text begin ; deleted text end new text begin . The court
may find there is a reason to separate siblings when the court finds both (A) that the
responsible social services agency made reasonable efforts to place siblings together and
(B) that placing siblings together is not in the best interest of one or more of the siblings;
new text end

(8) the court may defer finalization of an order transferring permanent legal and physical
custody to a relative when deferring finalization is necessary to determine eligibility for
Northstar kinship assistance under chapter 256N;

(9) the court may finalize a permanent transfer of physical and legal custody to a relative
regardless of eligibility for Northstar kinship assistance under chapter 256N; deleted text begin and
deleted text end

(10) the juvenile court may maintain jurisdiction over the responsible social services
agency, the parents or guardian of the child, the child, and the permanent legal and physical
custodian for purposes of ensuring appropriate services are delivered to the child and
permanent legal custodian for the purpose of ensuring conditions ordered by the court related
to the care and custody of the child are met deleted text begin . deleted text end new text begin ; and
new text end

new text begin (11) after finalization of the permanent transfer of physical and legal custody to a relative
who is not a parent, the court administrator must mail a copy of the final order to the
commissioner of human services.
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. 4.

Minnesota Statutes 2016, section 260C.625, is amended to read:

260C.625 DOCUMENTS FILED BY SOCIAL SERVICES AGENCY.

(a) The following shall be filed new text begin with the court new text end by the responsible social services agency
prior to finalization of the adoption:

(1) deleted text begin a certified deleted text end new text begin an electronic new text end copy of the child's new text begin certified new text end birth record;

(2) deleted text begin a certified deleted text end new text begin an electronic new text end copy of the new text begin certified new text end findings and order terminating parental
rights or order accepting the parent's consent to adoption under section 260C.515, subdivision
3, and for guardianship to the commissioner;

(3) a copy of any communication or contact agreement under section 260C.619;

(4) certification that the Minnesota Fathers' Adoption Registry has been searched which
requirement may be met according to the requirements of the Minnesota Rules of Adoption
Procedure, Rule 32.01, subdivision 2;

(5) new text begin an electronic copy of new text end the original of each consent to adoption required, if any, unless
the original was filed in the permanency proceeding conducted under section 260C.515,
subdivision 3, and the order filed under clause (2) has a copy of the consent attached; and

(6) the postplacement assessment report required under section 259.53, subdivision 2.

(b) The responsible social services agency shall provide any known aliases of the child
to the court.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2016, section 260C.629, subdivision 2, is amended to read:

Subd. 2.

Required documents.

In order to issue a decree for adoption and enter judgment
accordingly, the court must have the following documents in the record:

(1) new text begin an electronic copy of new text end the original birth record of the child;

(2) an adoption study report including a background study required under section deleted text begin 259.41 deleted text end new text begin
260C.611 new text end ;

(3) deleted text begin a deleted text end new text begin an electronic copy of the new text end certified deleted text begin copy of the deleted text end findings and order terminating parental
rights or order accepting the parent's consent to adoption under section 260C.515, subdivision
3, and for guardianship to the commissioner;

(4) any consents required under subdivision 1;

(5) the child's social and medical history under section 260C.609;

(6) the postplacement assessment report required under section 259.53, subdivision 2,
unless waived by the court on the record at a hearing under section 260C.607; and

(7) a report from the child's guardian ad litem.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2016, section 626.556, subdivision 2, is amended to read:

Subd. 2.

Definitions.

As used in this section, the following terms have the meanings
given them unless the specific content indicates otherwise:

(a) "Accidental" means a sudden, not reasonably foreseeable, and unexpected occurrence
or event which:

(1) is not likely to occur and could not have been prevented by exercise of due care; and

(2) if occurring while a child is receiving services from a facility, happens when the
facility and the employee or person providing services in the facility are in compliance with
the laws and rules relevant to the occurrence or event.

(b) "Commissioner" means the commissioner of human services.

(c) "Facility" means:

(1) a licensed or unlicensed day care facility, residential facility, agency, hospital,
sanitarium, or other facility or institution required to be licensed under sections 144.50 to
144.58, 241.021, or 245A.01 to 245A.16, or chapter 245D;

(2) a school as defined in section 120A.05, subdivisions 9, 11, and 13; and chapter 124E;
or

(3) a nonlicensed personal care provider organization as defined in section deleted text begin 256B.0625,
subdivision 19a deleted text end new text begin 256B.0659 new text end .

(d) "Family assessment" means a comprehensive assessment of child safety, risk of
subsequent child maltreatment, and family strengths and needs that is applied to a child
maltreatment report that does not allege sexual abuse or substantial child endangerment.
Family assessment does not include a determination as to whether child maltreatment
occurred but does determine the need for services to address the safety of family members
and the risk of subsequent maltreatment.

(e) "Investigation" means fact gathering related to the current safety of a child and the
risk of subsequent maltreatment that determines whether child maltreatment occurred and
whether child protective services are needed. An investigation must be used when reports
involve sexual abuse or substantial child endangerment, and for reports of maltreatment in
facilities required to be licensed under chapter 245A or 245D; under sections 144.50 to
144.58 and 241.021; in a school as defined in section 120A.05, subdivisions 9, 11, and 13,
and chapter 124E; or in a nonlicensed personal care provider association as defined in section
deleted text begin 256B.0625, subdivision 19a deleted text end new text begin 256B.0659 new text end .

(f) "Mental injury" means an injury to the psychological capacity or emotional stability
of a child as evidenced by an observable or substantial impairment in the child's ability to
function within a normal range of performance and behavior with due regard to the child's
culture.

(g) "Neglect" means the commission or omission of any of the acts specified under
clauses (1) to deleted text begin (9) deleted text end new text begin (10) new text end , other than by accidental means:

(1) failure by a person responsible for a child's care to supply a child with necessary
food, clothing, shelter, health, medical, or other care required for the child's physical or
mental health when reasonably able to do so;

(2) failure to protect a child from conditions or actions that seriously endanger the child's
physical or mental health when reasonably able to do so, including a growth delay, which
may be referred to as a failure to thrive, that has been diagnosed by a physician and is due
to parental neglect;

(3) failure to provide for necessary supervision or child care arrangements appropriate
for a child after considering factors as the child's age, mental ability, physical condition,
length of absence, or environment, when the child is unable to care for the child's own basic
needs or safety, or the basic needs or safety of another child in their care;

(4) failure to ensure that the child is educated as defined in sections 120A.22 and
260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's
child with sympathomimetic medications, consistent with section 125A.091, subdivision
5;

(5) nothing in this section shall be construed to mean that a child is neglected solely
because the child's parent, guardian, or other person responsible for the child's care in good
faith selects and depends upon spiritual means or prayer for treatment or care of disease or
remedial care of the child in lieu of medical care; except that a parent, guardian, or caretaker,
or a person mandated to report pursuant to subdivision 3, has a duty to report if a lack of
medical care may cause serious danger to the child's health. This section does not impose
upon persons, not otherwise legally responsible for providing a child with necessary food,
clothing, shelter, education, or medical care, a duty to provide that care;

(6) prenatal exposure to a controlled substance, as defined in section 253B.02, subdivision
2, used by the mother for a nonmedical purpose, as evidenced by withdrawal symptoms in
the child at birth, results of a toxicology test performed on the mother at delivery or the
child at birth, medical effects or developmental delays during the child's first year of life
that medically indicate prenatal exposure to a controlled substance, or the presence of a
fetal alcohol spectrum disorder;

(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);

(8) chronic and severe use of alcohol or a controlled substance by a parent or person
responsible for the care of the child that adversely affects the child's basic needs and safety;
deleted text begin or
deleted text end

(9) emotional harm from a pattern of behavior which contributes to impaired emotional
functioning of the child which may be demonstrated by a substantial and observable effect
in the child's behavior, emotional response, or cognition that is not within the normal range
for the child's age and stage of development, with due regard to the child's culture deleted text begin . deleted text end new text begin ; or
new text end

new text begin (10) abandonment of the child exhibited when a parent or person responsible for a child's
care, does not have regular contact with the child and failed to demonstrate consistent interest
in the child's well-being; unless the parent or person responsible for a child's care establishes
an extreme financial hardship, physical hardship, treatment for mental disability or chemical
dependency, or other good cause that prevented the parent or person responsible for a child's
care from making contact with the child. A child custody determination under chapter 257
or 518 is not abandonment of the child.
new text end

(h) "Nonmaltreatment mistake" means:

(1) at the time of the incident, the individual was performing duties identified in the
center's child care program plan required under Minnesota Rules, part 9503.0045;

(2) the individual has not been determined responsible for a similar incident that resulted
in a finding of maltreatment for at least seven years;

(3) the individual has not been determined to have committed a similar nonmaltreatment
mistake under this paragraph for at least four years;

(4) any injury to a child resulting from the incident, if treated, is treated only with
remedies that are available over the counter, whether ordered by a medical professional or
not; and

(5) except for the period when the incident occurred, the facility and the individual
providing services were both in compliance with all licensing requirements relevant to the
incident.

This definition only applies to child care centers licensed under Minnesota Rules, chapter
9503. If clauses (1) to (5) apply, rather than making a determination of substantiated
maltreatment by the individual, the commissioner of human services shall determine that a
nonmaltreatment mistake was made by the individual.

(i) "Operator" means an operator or agency as defined in section 245A.02.

(j) "Person responsible for the child's care" means (1) an individual functioning within
the family unit and having responsibilities for the care of the child such as a parent, guardian,
or other person having similar care responsibilities, or (2) an individual functioning outside
the family unit and having responsibilities for the care of the child such as a teacher, school
administrator, other school employees or agents, or other lawful custodian of a child having
either full-time or short-term care responsibilities including, but not limited to, day care,
babysitting whether paid or unpaid, counseling, teaching, and coaching.

(k) "Physical abuse" means any physical injury, mental injury, or threatened injury,
inflicted by a person responsible for the child's care on a child other than by accidental
means, or any physical or mental injury that cannot reasonably be explained by the child's
history of injuries, or any aversive or deprivation procedures, or regulated interventions,
that have not been authorized under section 125A.0942 or 245.825.

Abuse does not include reasonable and moderate physical discipline of a child
administered by a parent or legal guardian which does not result in an injury. Abuse does
not include the use of reasonable force by a teacher, principal, or school employee as allowed
by section 121A.582. Actions which are not reasonable and moderate include, but are not
limited to, any of the following:

(1) throwing, kicking, burning, biting, or cutting a child;

(2) striking a child with a closed fist;

(3) shaking a child under age three;

(4) striking or other actions which result in any nonaccidental injury to a child under 18
months of age;

(5) unreasonable interference with a child's breathing;

(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;

(7) striking a child under age one on the face or head;

(8) striking a child who is at least age one but under age four on the face or head, which
results in an injury;

(9) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled
substances which were not prescribed for the child by a practitioner, in order to control or
punish the child; or other substances that substantially affect the child's behavior, motor
coordination, or judgment or that results in sickness or internal injury, or subjects the child
to medical procedures that would be unnecessary if the child were not exposed to the
substances;

(10) unreasonable physical confinement or restraint not permitted under section 609.379,
including but not limited to tying, caging, or chaining; or

(11) in a school facility or school zone, an act by a person responsible for the child's
care that is a violation under section 121A.58.

(l) "Practice of social services," for the purposes of subdivision 3, includes but is not
limited to employee assistance counseling and the provision of guardian ad litem and
parenting time expeditor services.

(m) "Report" means any communication received by the local welfare agency, police
department, county sheriff, or agency responsible for child protection pursuant to this section
that describes neglect or physical or sexual abuse of a child and contains sufficient content
to identify the child and any person believed to be responsible for the neglect or abuse, if
known.

(n) "Sexual abuse" means the subjection of a child by a person responsible for the child's
care, by a person who has a significant relationship to the child, as defined in section 609.341,
or by a person in a position of authority, as defined in section 609.341, subdivision 10, to
any act which constitutes a violation of section 609.342 (criminal sexual conduct in the first
degree), 609.343 (criminal sexual conduct in the second degree), 609.344 (criminal sexual
conduct in the third degree), 609.345 (criminal sexual conduct in the fourth degree), or
609.3451 (criminal sexual conduct in the fifth degree). Sexual abuse also includes any act
which involves a minor which constitutes a violation of prostitution offenses under sections
609.321 to 609.324 or 617.246. Effective May 29, 2017, sexual abuse includes all reports
of known or suspected child sex trafficking involving a child who is identified as a victim
of sex trafficking. Sexual abuse includes child sex trafficking as defined in section 609.321,
subdivisions 7a and 7b. deleted text begin Sexual abuse includes threatened sexual abuse which includes the
status of a parent or household member who has committed a violation which requires
registration as an offender under section 243.166, subdivision 1b, paragraph (a) or (b), or
required registration under section 243.166, subdivision 1b, paragraph (a) or (b).
deleted text end

(o) "Substantial child endangerment" means a person responsible for a child's care, by
act or omission, commits or attempts to commit an act against a child under their care that
constitutes any of the following:

(1) egregious harm as defined in section 260C.007, subdivision 14;

(2) abandonment under section 260C.301, subdivision 2 new text begin , paragraph (a), clause (2) new text end ;

(3) neglect as defined in paragraph (g), clause (2), that substantially endangers the child's
physical or mental health, including a growth delay, which may be referred to as failure to
thrive, that has been diagnosed by a physician and is due to parental neglect;

(4) murder in the first, second, or third degree under section 609.185, 609.19, or 609.195;

(5) manslaughter in the first or second degree under section 609.20 or 609.205;

(6) assault in the first, second, or third degree under section 609.221, 609.222, or 609.223;

(7) solicitation, inducement, and promotion of prostitution under section 609.322;

(8) criminal sexual conduct under sections 609.342 to 609.3451;

(9) solicitation of children to engage in sexual conduct under section 609.352;

(10) malicious punishment or neglect or endangerment of a child under section 609.377
or 609.378;

(11) use of a minor in sexual performance under section 617.246; or

(12) parental behavior, status, or condition which mandates that the county attorney file
a termination of parental rights petition under section 260C.503, subdivision 2.

(p) "Threatened injury" means a statement, overt act, condition, or status that represents
a substantial risk of physical or sexual abuse or mental injury. Threatened injury includes,
but is not limited to, exposing a child to a person responsible for the child's care, as defined
in paragraph (j), clause (1), who has:

(1) subjected a child to, or failed to protect a child from, an overt act or condition that
constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a similar law
of another jurisdiction;

(2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph
(b), clause (4), or a similar law of another jurisdiction;

(3) committed an act that has resulted in an involuntary termination of parental rights
under section 260C.301, or a similar law of another jurisdiction; deleted text begin or
deleted text end

(4) committed an act that has resulted in the involuntary transfer of permanent legal and
physical custody of a child to a relative under Minnesota Statutes 2010, section 260C.201,
subdivision 11, paragraph (d), clause (1), section 260C.515, subdivision 4, or a similar law
of another jurisdiction deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) new text end deleted text begin A child is the subject of deleted text end new text begin subjected a child to a status or condition requiring new text end a report
of deleted text begin threatened injury when the responsible social services agency receives deleted text end birth match data
under paragraph (q) from the Department of Human Services deleted text begin . deleted text end new text begin ; or
new text end

new text begin (6) committed a violation which requires registration as an offender under section
243.166, subdivision 1b, paragraph (a) or (b), and is a parent or a household member.
new text end

(q) Upon receiving data under section 144.225, subdivision 2b, contained in a birth
record or recognition of parentage identifying a child who is subject to threatened injury
under paragraph (p), the Department of Human Services shall send the data to the responsible
social services agency. The data is known as "birth match" data. Unless the responsible
social services agency has already begun an investigation or assessment of the report due
to the birth of the child or execution of the recognition of parentage and the parent's previous
history with child protection, the agency shall accept the birth match data as a report under
this section. The agency deleted text begin may deleted text end new text begin shall new text end use deleted text begin either a family assessment or deleted text end new text begin an new text end investigation to
determine whether the child is safe. All of the provisions of this section apply. If the child
is determined to be safe, the agency shall consult with the county attorney to determine the
appropriateness of filing a petition alleging the child is in need of protection or services
under section 260C.007, subdivision 6, clause (16), in order to deliver needed services. If
the child is determined not to be safe, the agency and the county attorney shall take
appropriate action as required under section 260C.503, subdivision 2.

(r) Persons who conduct assessments or investigations under this section shall take into
account accepted child-rearing practices of the culture in which a child participates and
accepted teacher discipline practices, which are not injurious to the child's health, welfare,
and safety.

new text begin (s) "Safety plan" means a written or oral plan made with the local social services agency
and the child's parent or legal custodian or ordered by the court that sets out the conditions
necessary to keep the child safe. A safety plan is developed, when required, after a safety
assessment. The plan may be part of a child protective services plan, out-of-home placement
plan, or reunification plan when the child leaves foster care.
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. 7.

Minnesota Statutes 2016, section 626.556, subdivision 3, is amended to read:

Subd. 3.

Persons mandated to report; persons voluntarily reporting.

(a) A person
who knows or has reason to believe a child is being neglected or physically or sexually
abused, as defined in subdivision 2, or has been neglected or physically or sexually abused
within the preceding three years, shall immediately report the information to the local welfare
agency, agency responsible for assessing or investigating the report, police department,
county sheriff, tribal social services agency, or tribal police department if the person is:

(1) a professional or professional's delegate who is engaged in the practice of the healing
arts, social services, hospital administration, psychological or psychiatric treatment, child
care, education, correctional supervision, probation and correctional services, or law
enforcement; or

(2) employed as a member of the clergy and received the information while engaged in
ministerial duties, provided that a member of the clergy is not required by this subdivision
to report information that is otherwise privileged under section 595.02, subdivision 1,
paragraph (c).

(b) Any person may voluntarily report to the local welfare agency, agency responsible
for assessing or investigating the report, police department, county sheriff, tribal social
services agency, or tribal police department if the person knows, has reason to believe, or
suspects a child is being or has been neglected or subjected to physical or sexual abuse.

(c) A person mandated to report physical or sexual child abuse or neglect occurring
within a licensed facility shall report the information to the agency responsible for licensing
the facility under sections 144.50 to 144.58; 241.021; 245A.01 to 245A.16; or chapter 245D;
or a nonlicensed personal care provider organization as defined in section deleted text begin 256B.0625,
subdivision 19 deleted text end new text begin 256B.0659 new text end . A health or corrections agency receiving a report may request
the local welfare agency to provide assistance pursuant to subdivisions 10, 10a, and 10b.
A board or other entity whose licensees perform work within a school facility, upon receiving
a complaint of alleged maltreatment, shall provide information about the circumstances of
the alleged maltreatment to the commissioner of education. Section 13.03, subdivision 4,
applies to data received by the commissioner of education from a licensing entity.

(d) Notification requirements under subdivision 10 apply to all reports received under
this section.

(e) For purposes of this section, "immediately" means as soon as possible but in no event
longer than 24 hours.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2016, section 626.556, subdivision 10f, is amended to read:

Subd. 10f.

Notice of determinations.

Within ten working days of the conclusion of a
family assessment, the local welfare agency shall notify the parent or guardian of the child
of the need for services to address child safety concerns or significant risk of subsequent
child maltreatment. The local welfare agency and the family may also jointly agree that
family support and family preservation services are needed. Within ten working days of the
conclusion of an investigation, the local welfare agency or agency responsible for
investigating the report shall notify the parent or guardian of the child, the person determined
to be maltreating the child, and, if applicable, the director of the facility, of the determination
and a summary of the specific reasons for the determination. When the investigation involves
a child foster care setting that is monitored by a private licensing agency under section
245A.16, the local welfare agency responsible for investigating the report shall notify the
private licensing agency of the determination and shall provide a summary of the specific
reasons for the determination. The notice to the private licensing agency must include
identifying private data, but not the identity of the reporter of maltreatment. The notice must
also include a certification that the information collection procedures under subdivision 10,
paragraphs deleted text begin (h) deleted text end new text begin (i) new text end , deleted text begin (i) deleted text end new text begin (j) new text end , and deleted text begin (j) deleted text end new text begin (k) new text end , were followed and a notice of the right of a data subject
to obtain access to other private data on the subject collected, created, or maintained under
this section. In addition, the notice shall include the length of time that the records will be
kept under subdivision 11c. new text begin When the investigation involves a nonlicensed personal care
provider organization as defined in section 256B.0659, regardless of the relationship of the
victim to the nonlicensed personal care attendant, the local welfare agency responsible for
investigating the report shall notify the personal care provider agency of the determination
and shall provide a summary of the specific reasons for the determination. The notice to
the personal care provider agency must include identifying private data, but cannot identify
the reporter of maltreatment. The notice must also include a certification that the procedures
under subdivision 10, paragraphs (i), (j), and (k), were followed and a notice of the right of
a data subject to obtain access to other private data on the subject collected, created, or
maintained under this section. In addition, the notice shall include the length of time that
the records will be kept according to subdivision 11c. new text end The investigating agency shall notify
the parent or guardian of the child who is the subject of the report, and any person or facility
determined to have maltreated a child, of their appeal or review rights under this section.
The notice must also state that a finding of maltreatment may result in denial of a license
application or background study disqualification under chapter 245C related to employment
or services that are licensed by the Department of Human Services under chapter 245A, the
Department of Health under chapter 144 or 144A, the Department of Corrections under
section 241.021, and from providing services related to an unlicensed personal care provider
organization under chapter 256B.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2016, section 626.556, subdivision 10m, is amended to read:

Subd. 10m.

Provision of child protective services; new text begin safety planning; new text end consultation with
county attorney.

(a) The local welfare agency shall create a written plan, in collaboration
with the family whenever possible, within 30 days of the determination that child protective
services are needed or upon joint agreement of the local welfare agency and the family that
family support and preservation services are needed. Child protective services for a family
are voluntary deleted text begin unless deleted text end new text begin on the part of the family until new text end ordered by the court deleted text begin . deleted text end new text begin after a petition
under section 260C.141 has been filed. Family support and preservation services are voluntary
unless the services are ordered by the court.
new text end

(b) new text begin When a child's removal from a parent or guardian is necessary as part of a safety
plan, the removal must occur pursuant to a voluntary placement agreement under section
260C.227; a court order under section 260C.151, subdivision 6, 260C.178 or 260C.201; or
peace officer action authorized under section 260C.175, subdivision 1, clause (2). The local
agency must not use a delegation of power by a parent or guardian under section 524.5-211
or the standby custodian provisions of chapter 257B as authority to support removal of a
child from the care of a parent or guardian.
new text end

new text begin (c) new text end The local welfare agency shall consult with the county attorney to determine the
appropriateness of filing a petition alleging the child is in need of protection or services
under section 260C.007, subdivision 6, if:

(1) the family does not accept or comply with a plan for child protective services new text begin or
safety plan new text end ;

(2) voluntary child protective services new text begin on the part of the family new text end may not provide sufficient
protection for the child; deleted text begin or
deleted text end

(3) the family is not cooperating with an investigation or assessment deleted text begin . deleted text end new text begin ; or
new text end

new text begin (4) removal of the child from a parent or guardian is necessary and a voluntary placement
agreement under section 260C.227 may not provide sufficient protection for the child.
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. 10.

Minnesota Statutes 2016, section 626.558, subdivision 2, is amended to read:

Subd. 2.

Duties of team.

A multidisciplinary child protection team may provide public
and professional education, develop resources for prevention, intervention, and treatment,
and provide case consultation new text begin including, but not limited to, screening, new text end to the local welfare
agency or other interested community-based agencies. The community-based agencies may
request case consultation from the multidisciplinary child protection team regarding a child
or family for whom the community-based agency is providing services. As used in this
section, "case consultation" means a case review process in which recommendations are
made concerning services to be provided to the identified children and family new text begin and which
may include screening new text end . Case consultation may be performed by a committee or subcommittee
of members representing human services, including mental health and chemical dependency;
law enforcement, including probation and parole; the county attorney; a children's advocacy
center; health care; education; community-based agencies and other necessary agencies;
and persons directly involved in an individual case as designated by other members
performing case consultation.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

OPERATIONS

Section 1.

Minnesota Statutes 2016, section 245A.02, subdivision 3, is amended to read:

Subd. 3.

Applicant.

"Applicant" means an individual, deleted text begin corporation, partnership, voluntary
association, controlling individual, or other deleted text end organization new text begin , or government entity, as defined
in section 13.02, subdivision 7a, new text end that deleted text begin has applied for licensure under this chapter and the
rules of the commissioner deleted text end new text begin is subject to licensure under this chapter and that has applied for
but not yet been granted a license under this chapter new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

Sec. 2.

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 Owner. new text end

new text begin "Owner" means each individual or organization that has five percent
or more direct or indirect ownership interest in a program licensed under this chapter. For
purposes of this subdivision, "direct ownership interest" means the possession of equity in
capital, stock, or profits of an organization and "indirect ownership interest" means a direct
ownership interest in an entity that has a direct or indirect ownership interest in a licensed
program. For purposes of this chapter, owner of a nonprofit corporation means each member
of the board of directors. A government entity that is issued a license under this chapter
shall be designated the owner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

Sec. 3.

Minnesota Statutes 2016, section 245A.03, subdivision 3, is amended to read:

Subd. 3.

Unlicensed programs.

(a) It is a misdemeanor for an individual, deleted text begin corporation,
partnership, voluntary association, other deleted text end organization, or deleted text begin a controlling individual deleted text end new text begin government
entity new text end to provide a residential or nonresidential program without a license new text begin issued under this
chapter new text end and in willful disregard of this chapter unless the program is excluded from licensure
under subdivision 2.

(b) The commissioner may ask the appropriate county attorney or the attorney general
to begin proceedings to secure a court order against the continued operation of the program,
if 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 has:

(1) failed to apply for a license new text begin under this chapter new text end after receiving notice that a license is
required or continues to operate without a license after receiving notice that a license is
required;

(2) continued to operate without a license after deleted text begin the deleted text end new text begin a new text end license new text begin issued under this chapter
new text end has been revoked or suspended under deleted text begin section 245A.07 deleted text end new text begin this chapter new text end , and the commissioner
has issued a final order affirming the revocation or suspension, or the license holder did not
timely appeal the sanction; or

(3) continued to operate without a license after deleted text begin the deleted text end new text begin a new text end license new text begin issued under this chapter
new text end has been temporarily new text begin immediately new text end suspended deleted text begin under section 245A.07 deleted text end new text begin pursuant to this chapter new text end .

The county attorney and the attorney general have a duty to cooperate with the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

Sec. 4.

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 organization deleted text begin or controlling individual deleted text end new text begin , or government entity new 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. new text begin An applicant who intends
to buy or otherwise acquire a program or services licensed under this chapter that is owned
by another license holder must comply with the application procedures in this section and
section 245A.03.
new text end

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 new text begin as defined in
section 245A.02, subdivision 5a, new text end and must deleted text begin specify an deleted text end new text begin designate one controlling individual
to be the authorized new text end agent deleted text begin 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 deleted text end new text begin for the license holder new text end . new text begin The application must be signed by the authorized
agent and must include the first, middle, and last name; mailing address; and e-mail address
of the authorized agent. By submitting an application for licensure, the authorized agent
consents to electronic communication with the commissioner throughout the application
process. new text end The new text begin authorized new text end agent must be authorized to accept service on behalf of all of the
controlling individuals deleted text begin of the program deleted text end . Service on the new text begin authorized new text end agent is service on all of
the controlling individuals deleted text begin of the program deleted text end . It is not a defense to any action arising under
this chapter that service was not made on each controlling individual deleted text begin of the program deleted text end . The
designation of deleted text begin one or more deleted text end new text begin a new text end controlling deleted text begin individuals deleted text end new text begin individual new text end as deleted text begin agents deleted text end new text begin the authorized
agent new text end 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) deleted text begin 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, deleted text end new text begin The commissioner may limit communication
during the application process to the authorized agent or the controlling individual identified
on the license application and for whom a background study was initiated under chapter
245C. new text end 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 new text begin
or Minnesota tax identification number new text end , and federal employer identification number if the
applicant has employees;

(2) new text begin a copy of the most recent filing with the secretary of state that includes new text end 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; deleted text begin and
deleted text end

(3) deleted text begin a notarized signature of the applicant. deleted text end new text begin if applicable, the applicant's National Provider
Identifier (NPI) number and Unique Minnesota Provider Identifier (UMPI) number; and
new text end

new text begin (4) at the request of the commissioner, the notarized signature of the applicant or
authorized agent.
new text end

(g) When an applicant is deleted text begin a nonindividual deleted text end new text begin an organization new text end , the applicant must provide
deleted text begin the deleted text end :

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

(2) new text begin a copy of the most recent filing with the secretary of state that includes the new text end 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) new text begin the new text end 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; deleted text begin and
deleted text end

deleted text begin (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.
deleted text end

new text begin (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
Minnesota Provider Identifier (UMPI) number;
new text end

new text begin (5) the records that created the organization and that determine its internal governance
and the relations among the persons that own it, have an interest in it, or are members of it,
in each case as provided or authorized by its governing statute, which may include a
partnership agreement, bylaws, articles of organization, organizational chart, and operating
agreement, or comparable documents as provided in the organization's governing statute;
and
new text end

new text begin (6) at the request of the commissioner, the notarized signature of the applicant or
authorized agent.
new text end

new text begin (h) When the applicant is a government entity, the applicant must provide:
new text end

new text begin (1) the name of the government agency, political subdivision, or other unit of government
that is seeking the license and the name of the program or services that will be licensed;
new text end

new text begin (2) the taxpayer identification numbers including the Minnesota tax identification number
and federal employer identification number;
new text end

new text begin (3) a letter signed by the manager, administrator, or other executive of the government
entity authorizing the submission of the license application;
new text end

new text begin (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
Minnesota Provider Identifier (UMPI) number; and
new text end

new text begin (5) first, middle, and last name; mailing address; e-mail address; and signature of the
authorized agent for each license issued to the government entity. A government entity that
holds multiple licenses under this chapter may designate one authorized agent for all licenses
issued under this chapter or may designate a different authorized agent for each license.
new text end

deleted text begin (h) deleted text end new text begin (i) new text end At the time of application for licensure or renewal of a license new text begin under this chapter new text end ,
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
deleted text begin section deleted text end new text begin sections 245A.045 and new text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

Sec. 5.

Minnesota Statutes 2016, section 245A.07, subdivision 1, is amended to read:

Subdivision 1.

Sanctions; appeals; license new text begin ; inactive programs new text end .

(a) In addition to
making a license conditional under section 245A.06, the commissioner may suspend or
revoke the license, impose a fine, or secure an injunction against the continuing operation
of the program of a license holder who does not comply with applicable law or rule. When
applying sanctions authorized under this section, the commissioner shall consider the nature,
chronicity, or severity of the violation of law or rule and the effect of the violation on the
health, safety, or rights of persons served by the program.

(b) If a license holder appeals the suspension or revocation of a license and the license
holder continues to operate the program pending a final order on the appeal, the commissioner
shall issue the license holder a temporary provisional license. Unless otherwise specified
by the commissioner, variances in effect on the date of the license sanction under appeal
continue under the temporary provisional license. If a license holder fails to comply with
applicable law or rule while operating under a temporary provisional license, the
commissioner may impose additional sanctions under this section and section 245A.06, and
may terminate any prior variance. If a temporary provisional license is set to expire, a new
temporary provisional license shall be issued to the license holder upon payment of any fee
required under section 245A.10. The temporary provisional license shall expire on the date
the final order is issued. If the license holder prevails on the appeal, a new nonprovisional
license shall be issued for the remainder of the current license period.

(c) If a license holder is under investigation and the license new text begin issued under this chapter new text end is
due to expire before completion of the investigation, the program shall be issued a new
license upon completion of the reapplication requirements and payment of any applicable
license fee. Upon completion of the investigation, a licensing sanction may be imposed
against the new license under this section, section 245A.06, or 245A.08.

(d) Failure to reapply or closure of a license new text begin issued under this chapter new text end by the license
holder prior to the completion of any investigation shall not preclude the commissioner
from issuing a licensing sanction under this section deleted text begin , deleted text end new text begin or new text end section deleted text begin 245A.06, or 245A.08 deleted text end new text begin
245A.045 or 245A.06 new text end at the conclusion of the investigation.

new text begin (e) The commissioner may suspend or close a license when the commissioner determines
that a licensed program has not been serving any clients for a consecutive period of 12
months or longer. The commissioner need not consider nature, severity, or chronicity of
the act when suspending or closing a license under this provision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

Sec. 6.

Minnesota Statutes 2016, section 245A.07, subdivision 2, is amended to read:

Subd. 2.

Temporary immediate suspension.

(a) The commissioner shall act immediately
to temporarily suspend a license new text begin issued under this chapter new text end if:

(1) the license holder's actions or failure to comply with applicable law or rule, or the
actions of other individuals or conditions in the program, pose an imminent risk of harm to
the health, safety, or rights of persons served by the program; deleted text begin or
deleted text end

(2) while the program continues to operate pending an appeal of an order of revocation,
the commissioner identifies one or more subsequent violations of law or rule which may
adversely affect the health or safety of persons served by the program new text begin ; or
new text end

new text begin (3) the license holder has been criminally charged in state or federal court with an offense
that involves fraud or theft against a program administered by the commissioner new text end .

(b) No state funds shall be made available or be expended by any agency or department
of state, county, or municipal government for use by a license holder regulated under this
chapter while a license new text begin issued under this chapter new text end is under immediate suspension. A notice
stating the reasons for the immediate suspension and informing the license holder of the
right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to
1400.8612, must be delivered by personal service to the address shown on the application
or the last known address of the license holder. The license holder may appeal an order
immediately suspending a license. The appeal of an order immediately suspending a license
must be made in writing by certified mail deleted text begin or deleted text end new text begin , by new text end personal service new text begin , or by other means expressly
set forth in the commissioner's order new text end . If mailed, the appeal must be postmarked and sent to
the commissioner within five calendar days after the license holder receives notice that the
license has been immediately suspended. If a request is made by personal service, it must
be received by the commissioner within five calendar days after the license holder received
the order. A license holder and any controlling individual shall discontinue operation of the
program upon receipt of the commissioner's order to immediately suspend the license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

Sec. 7.

Minnesota Statutes 2016, section 245A.07, subdivision 2a, is amended to read:

Subd. 2a.

Immediate suspension expedited hearing.

(a) Within five working days of
receipt of the license holder's timely appeal, the commissioner shall request assignment of
an administrative law judge. The request must include a proposed date, time, and place of
a hearing. A hearing must be conducted by an administrative law judge within 30 calendar
days of the request for assignment, unless an extension is requested by either party and
granted by the administrative law judge for good cause. The commissioner shall issue a
notice of hearing by certified mail or personal service at least ten working days before the
hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary
immediate suspension should remain in effect pending the commissioner's final order under
section 245A.08, regarding a licensing sanction issued under subdivision 3 following the
immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the
burden of proof in expedited hearings under this subdivision shall be limited to the
commissioner's demonstration that reasonable cause exists to believe that the license holder's
actions or failure to comply with applicable law or rule poses, or the actions of other
individuals or conditions in the program poses an imminent risk of harm to the health, safety,
or rights of persons served by the program. "Reasonable cause" means there exist specific
articulable facts or circumstances which provide the commissioner with a reasonable
suspicion that there is an imminent risk of harm to the health, safety, or rights of persons
served by the program. When the commissioner has determined there is reasonable cause
to order the temporary immediate suspension of a license based on a violation of safe sleep
requirements, as defined in section 245A.1435, the commissioner is not required to
demonstrate that an infant died or was injured as a result of the safe sleep violations. For
suspensions under subdivision 2, paragraph (a), clause (2), the burden of proof in expedited
hearings under this subdivision shall be limited to the commissioner's demonstration by a
preponderance of evidence that, since the license was revoked, the license holder committed
additional violations of law or rule which may adversely affect the health or safety of persons
served by the program.

(b) The administrative law judge shall issue findings of fact, conclusions, and a
recommendation within ten working days from the date of hearing. The parties shall have
ten calendar days to submit exceptions to the administrative law judge's report. The record
shall close at the end of the ten-day period for submission of exceptions. The commissioner's
final order shall be issued within ten working days from the close of the record. When an
appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner
shall issue a final order affirming the temporary immediate suspension within ten calendar
days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days
after a final order affirming an immediate suspension, the commissioner shall make a
determination regarding whether a final licensing sanction shall be issued under subdivision
3. The license holder shall continue to be prohibited from operation of the program during
this 90-day period.

(c) When the final order under paragraph (b) affirms an immediate suspension, and a
final licensing sanction is issued under subdivision 3 and the license holder appeals that
sanction, the license holder continues to be prohibited from operation of the program pending
a final commissioner's order under section 245A.08, subdivision 5, regarding the final
licensing sanction new text begin . For suspensions under subdivision 2, paragraph (a), clause (3), the burden
of proof in expedited hearings under this subdivision shall be limited to the commissioner's
demonstration by a preponderance of evidence that a criminal complaint and warrant or
summons has been issued against the license holder that has not been dismissed, and that
the criminal charge is an offense that involves fraud or theft against a program administered
by the commissioner new text end .

Sec. 8.

Minnesota Statutes 2016, section 245A.07, subdivision 3, is amended to read:

Subd. 3.

License suspension, revocation, or fine.

(a) The commissioner may suspend
or revoke a license, or impose a fine if:

(1) a license holder fails to comply fully with applicable laws or rules new text begin including, but not
limited to, this chapter and chapters 119B and 245C new text end ;

(2) a license holder, a controlling individual, or an individual living in the household
where the licensed services are provided or is otherwise subject to a background study has
a disqualification which has not been set aside under section 245C.22;

(3) a license holder knowingly withholds relevant information from or gives false or
misleading information to the commissioner in connection with an application for a license,
in connection with the background study status of an individual, during an investigation,
or regarding compliance with applicable laws or rules; or

(4) deleted text begin after July 1, 2012, and upon request by the commissioner, a license holder fails to
submit the information required of an applicant under section 245A.04, subdivision 1,
paragraph (f) or (g) deleted text end new text begin a license holder is prohibited from holding a license according to section
245.095 new text end .

A license holder who has had a license new text begin issued under this chapter new text end suspended, revoked,
or has been ordered to pay a fine must be given notice of the action by certified mail or
personal service. If mailed, the notice must be mailed to the address shown on the application
or the last known address of the license holder. The notice must state the reasons the license
was suspended, revoked, or a fine was ordered.

(b) If the license was suspended or revoked, the notice must inform the license holder
of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts
1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking
a license. The appeal of an order suspending or revoking a license must be made in writing
by certified mail or personal service. If mailed, the appeal must be postmarked and sent to
the commissioner within ten calendar days after the license holder receives notice that the
license has been suspended or revoked. If a request is made by personal service, it must be
received by the commissioner within ten calendar days after the license holder received the
order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits a
timely appeal of an order suspending or revoking a license, the license holder may continue
to operate the program as provided in section 245A.04, subdivision 7, paragraphs deleted text begin (g) deleted text end new text begin (f) new text end
and deleted text begin (h) deleted text end new text begin (g) new text end , until the commissioner issues a final order on the suspension or revocation.

(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license
holder of the responsibility for payment of fines and the right to a contested case hearing
under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an
order to pay a fine must be made in writing by certified mail or personal service. If mailed,
the appeal must be postmarked and sent to the commissioner within ten calendar days after
the license holder receives notice that the fine has been ordered. If a request is made by
personal service, it must be received by the commissioner within ten calendar days after
the license holder received the order.

(2) The license holder shall pay the fines assessed on or before the payment date specified.
If the license holder fails to fully comply with the order, the commissioner may issue a
second fine or suspend the license until the license holder complies. If the license holder
receives state funds, the state, county, or municipal agencies or departments responsible for
administering the funds shall withhold payments and recover any payments made while the
license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine
until the commissioner issues a final order.

(3) A license holder shall promptly notify the commissioner of human services, in writing,
when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the
commissioner determines that a violation has not been corrected as indicated by the order
to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify
the license holder by certified mail or personal service that a second fine has been assessed.
The license holder may appeal the second fine as provided under this subdivision.

(4) Fines shall be assessed as follows: the license holder shall forfeit $1,000 for each
determination of maltreatment of a child under section 626.556 or the maltreatment of a
vulnerable adult under section 626.557 for which the license holder is determined responsible
for the maltreatment under section 626.556, subdivision 10e, paragraph (i), or 626.557,
subdivision 9c, paragraph (c); the license holder shall forfeit $200 for each occurrence of
a violation of law or rule governing matters of health, safety, or supervision, including but
not limited to the provision of adequate staff-to-child or adult ratios, and failure to comply
with background study requirements under chapter 245C; and the license holder shall forfeit
$100 for each occurrence of a violation of law or rule other than those subject to a $1,000
or $200 fine above. For purposes of this section, "occurrence" means each violation identified
in the commissioner's fine order. Fines assessed against a license holder that holds a license
to provide home and community-based services, as identified in section 245D.03, subdivision
1, and a community residential setting or day services facility license under chapter 245D
where the services are provided, may be assessed against both licenses for the same
occurrence, but the combined amount of the fines shall not exceed the amount specified in
this clause for that occurrence.

(5) When a fine has been assessed, the license holder may not avoid payment by closing,
selling, or otherwise transferring the licensed program to a third party. In such an event, the
license holder will be personally liable for payment. In the case of a corporation, each
controlling individual is personally and jointly liable for payment.

(d) Except for background study violations involving the failure to comply with an order
to immediately remove an individual or an order to provide continuous, direct supervision,
the commissioner shall not issue a fine under paragraph (c) relating to a background study
violation to a license holder who self-corrects a background study violation before the
commissioner discovers the violation. A license holder who has previously exercised the
provisions of this paragraph to avoid a fine for a background study violation may not avoid
a fine for a subsequent background study violation unless at least 365 days have passed
since the license holder self-corrected the earlier background study violation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

Sec. 9.

Minnesota Statutes 2016, section 245A.08, subdivision 3, is amended to read:

Subd. 3.

Burden of proof.

(a) At a hearing regarding a licensing sanction under section
245A.07, including consolidated hearings under subdivision 2a, the commissioner may
demonstrate reasonable cause for action taken by submitting statements, reports, or affidavits
to substantiate the allegations that the license holder failed to comply fully with applicable
law or rule. If the commissioner demonstrates that reasonable cause existed, the burden of
proof shifts to the license holder to demonstrate by a preponderance of the evidence that
the license holder was in full compliance with those laws or rules that the commissioner
alleges the license holder violated, at the time that the commissioner alleges the violations
of law or rules occurred.

(b) At a hearing on denial of an application new text begin for a license or to convert a provisional
license issued under section 245A.045 into a license new text end , the applicant bears the burden of proof
to demonstrate by a preponderance of the evidence that the appellant has complied fully
with this chapter and other applicable law or rule and that the application should be approved
and a license granted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 245C.02, subdivision 5, is amended to read:

Subd. 5.

Background study.

"Background study" means the review of records conducted
by the commissioner to determine whether a subject is disqualified from direct contact with
persons served by a program and, where specifically provided in statutes, whether a subject
is disqualified from having access to persons served by a program. new text begin If required by law, the
background study must include a national criminal history record check.
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. 11.

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

new text begin Subd. 5a. new text end

new text begin National criminal history record check. new text end

new text begin "National criminal history record
check" means a check of records maintained by the Federal Bureau of Investigation through
submission of fingerprints through the Minnesota Bureau of Criminal Apprehension to the
Federal Bureau of Investigation, when specifically required 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. 12.

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

new text begin Subd. 5b. new text end

new text begin National criminal records repository. new text end

new text begin For purposes of background studies
conducted under this chapter, "national criminal records repository" refers to the Federal
Bureau of Investigation.
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. 13.

Minnesota Statutes 2016, section 245C.02, subdivision 13b, is amended to read:

Subd. 13b.

NETStudy 2.0.

"NETStudy 2.0" means the commissioner's system that
replaces both NETStudy and the department's internal background study processing system.
NETStudy 2.0 is designed to enhance protection of children and vulnerable adults by
improving the accuracy of background studies through fingerprint-based criminal record
checks and expanding the background studies to include a review of information from the
Minnesota Court Information System and deleted text begin the national crime information database deleted text end new text begin a national
criminal history record check new text end . NETStudy 2.0 is also designed to increase efficiencies in and
the speed of the hiring process by:

(1) providing access to and updates from public Web-based data related to employment
eligibility;

(2) decreasing the need for repeat studies through electronic updates of background
study subjects' criminal records;

(3) supporting identity verification using subjects' Social Security numbers and
photographs;

(4) using electronic employer notifications; and

(5) issuing immediate verification of subjects' eligibility to provide services as more
studies are completed under the NETStudy 2.0 system.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2016, section 245C.05, subdivision 1, is amended to read:

Subdivision 1.

Individual studied.

(a) The individual who is the subject of the
background study must provide the applicant, license holder, or other entity under section
245C.04 with sufficient information to ensure an accurate study, including:

(1) the individual's first, middle, and last name and all other names by which the
individual has been known;

(2) current home address, city, and state of residence;

(3) current zip code;

(4) sex;

(5) date of birth;

(6) driver's license number or state identification number; and

(7) upon implementation of NETStudy 2.0, the home address, city, county, and state of
residence for the past five years.

(b) Every subject of a background study conducted or initiated by counties or private
agencies under this chapter must also provide the home address, city, county, and state of
residence for the past five years.

(c) Every subject of a background study related to private agency adoptions or related
to child foster care licensed through a private agency, who is 18 years of age or older, shall
also provide the commissioner a signed consent for the release of any information received
deleted text begin from national crime information databases deleted text end new text begin following a national criminal history record
check new text end to the private agency that initiated the background study.

(d) The subject of a background study shall provide fingerprints and a photograph as
required in subdivision 5.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2016, section 245C.05, subdivision 5, is amended to read:

Subd. 5.

Fingerprints and photograph.

(a) Before the implementation of NETStudy
2.0, except as provided in paragraph (c), for any background study completed under this
chapter, when the commissioner has reasonable cause to believe that further pertinent
information may exist on the subject of the background study, the subject shall provide the
commissioner with a set of classifiable fingerprints obtained from an authorized agency new text begin for
a national criminal history record check new text end .

(b) Before the implementation of NETStudy 2.0, for purposes of requiring fingerprints new text begin
for a national criminal history record check new text end , the commissioner has reasonable cause when,
but not limited to, the:

(1) information from the Bureau of Criminal Apprehension indicates that the subject is
a multistate offender;

(2) information from the Bureau of Criminal Apprehension indicates that multistate
offender status is undetermined; or

(3) commissioner has received a report from the subject or a third party indicating that
the subject has a criminal history in a jurisdiction other than Minnesota.

(c) Notwithstanding paragraph (d), for background studies conducted by the commissioner
for child foster care, adoptions, or a transfer of permanent legal and physical custody of a
child, the subject of the background study, who is 18 years of age or older, shall provide
the commissioner with a set of classifiable fingerprints obtained from an authorized agency new text begin
for a national criminal history record check new text end .

(d) For background studies initiated on or after the implementation of NETStudy 2.0,
every subject of a background study must provide the commissioner with a set of the
background study subject's classifiable fingerprints and photograph. The photograph and
fingerprints must be recorded at the same time by the commissioner's authorized fingerprint
collection vendor and sent to the commissioner through the commissioner's secure data
system described in section 245C.32, subdivision 1a, paragraph (b). The fingerprints shall
not be retained by the Department of Public Safety, Bureau of Criminal Apprehension, or
the commissioner, but will be retained by the Federal Bureau of Investigation. The
commissioner's authorized fingerprint collection vendor shall, for purposes of verifying the
identity of the background study subject, be able to view the identifying information entered
into NETStudy 2.0 by the entity that initiated the background study, but shall not retain the
subject's fingerprints, photograph, or information from NETStudy 2.0. The authorized
fingerprint collection vendor shall retain no more than the name and date and time the
subject's fingerprints were recorded and sent, only as necessary for auditing and billing
activities.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2016, section 245C.08, subdivision 1, is amended to read:

Subdivision 1.

Background studies conducted by Department of Human Services.

(a) For a background study conducted by the Department of Human Services, the
commissioner shall review:

(1) information related to names of substantiated perpetrators of maltreatment of
vulnerable adults that has been received by the commissioner as required under section
626.557, subdivision 9c, paragraph (j);

(2) the commissioner's records relating to the maltreatment of minors in licensed
programs, and from findings of maltreatment of minors as indicated through the social
service information system;

(3) information from juvenile courts as required in subdivision 4 for individuals listed
in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;

(4) information from the Bureau of Criminal Apprehension, including information
regarding a background study subject's registration in Minnesota as a predatory offender
under section 243.166;

(5) except as provided in clause (6), information deleted text begin from the national crime information
system deleted text end new text begin received as a result of a national criminal history record check new text end when the commissioner
has reasonable cause as defined under section 245C.05, subdivision 5, or as required under
section 144.057, subdivision 1, clause (2); and

(6) for a background study related to a child foster care application for licensure, a
transfer of permanent legal and physical custody of a child under sections 260C.503 to
260C.515, or adoptions, the commissioner shall also review:

(i) information from the child abuse and neglect registry for any state in which the
background study subject has resided for the past five years; and

(ii) deleted text begin information from national crime information databases, deleted text end when the background study
subject is 18 years of age or older new text begin , information received from a national criminal history
record check new text end .

(b) Notwithstanding expungement by a court, the commissioner may consider information
obtained under paragraph (a), clauses (3) and (4), unless the commissioner received notice
of the petition for expungement and the court order for expungement is directed specifically
to the commissioner.

(c) The commissioner shall also review criminal case information received according
to section 245C.04, subdivision 4a, from the Minnesota court information system that relates
to individuals who have already been studied under this chapter and who remain affiliated
with the agency that initiated the background study.

(d) When the commissioner has reasonable cause to believe that the identity of a
background study subject is uncertain, the commissioner may require the subject to provide
a set of classifiable fingerprints for purposes of completing a fingerprint-based record check
with the Bureau of Criminal Apprehension. Fingerprints collected under this paragraph
shall not be saved by the commissioner after they have been used to verify the identity of
the background study subject against the particular criminal record in question.

(e) The commissioner may inform the entity that initiated a background study under
NETStudy 2.0 of the status of processing of the subject's fingerprints.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2016, section 245C.08, subdivision 3, is amended to read:

Subd. 3.

Arrest and investigative information.

(a) For any background study completed
under this section, if the commissioner has reasonable cause to believe the information is
pertinent to the disqualification of an individual, the commissioner also may review arrest
and investigative information from:

(1) the Bureau of Criminal Apprehension;

(2) the commissioner of health;

(3) a county attorney;

(4) a county sheriff;

(5) a county agency;

(6) a local chief of police;

(7) other states;

(8) the courts;

(9) the Federal Bureau of Investigation new text begin received by the commissioner following a national
criminal history record check new text end ;

(10) the National Criminal Records Repository; and

(11) criminal records from other states.

(b) The commissioner is not required to conduct more than one review of a subject's
records from the Federal Bureau of Investigation if a deleted text begin review of the subject's criminal history
with the Federal Bureau of Investigation deleted text end new text begin national criminal history record check new text end has already
been completed by the commissioner and there has been no break in the subject's affiliation
with the license holder who initiated the background study.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2016, section 245C.12, is amended to read:

245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.

(a) For the purposes of background studies completed by tribal organizations performing
licensing activities otherwise required of the commissioner under this chapter, after obtaining
consent from the background study subject, tribal licensing agencies shall have access to
criminal history data in the same manner as county licensing agencies and private licensing
agencies under this chapter.

(b) Tribal organizations may contract with the commissioner to obtain background study
data on individuals under tribal jurisdiction related to adoptions according to section 245C.34.
Tribal organizations may also contract with the commissioner to obtain background study
data on individuals under tribal jurisdiction related to child foster care according to section
245C.34.

(c) For the purposes of background studies completed to comply with a tribal
organization's licensing requirements for individuals affiliated with a tribally licensed nursing
facility, the commissioner shall obtain criminal history data from the deleted text begin National Criminal
Records Repository deleted text end new text begin national criminal history record check new text end in accordance with section
245C.32.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2016, section 245C.32, subdivision 1a, is amended to read:

Subd. 1a.

NETStudy 2.0 system.

(a) The commissioner shall design, develop, and test
the NETStudy 2.0 system and implement it no later than September 1, 2015.

(b) The NETStudy 2.0 system developed and implemented by the commissioner shall
incorporate and meet all applicable data security standards and policies required by the
Federal Bureau of Investigation (FBI), Department of Public Safety, Bureau of Criminal
Apprehension, and the Office of MN.IT Services. The system shall meet all required
standards for encryption of data at the database level as well as encryption of data that
travels electronically among agencies initiating background studies, the commissioner's
authorized fingerprint collection vendor, the commissioner, the Bureau of Criminal
Apprehension, and in cases involving national criminal new text begin history new text end record checks, the FBI.

(c) The data system developed and implemented by the commissioner shall incorporate
a system of data security that allows the commissioner to control access to the data field
level by the commissioner's employees. The commissioner shall establish that employees
have access to the minimum amount of private data on any individual as is necessary to
perform their duties under this chapter.

(d) The commissioner shall oversee regular quality and compliance audits of the
authorized fingerprint collection vendor.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2016, section 245C.32, subdivision 2, is amended to read:

Subd. 2.

Use.

(a) The commissioner may also use these systems and records to obtain
and provide criminal history data from the Bureau of Criminal Apprehension, criminal
history data held by the commissioner, and data about substantiated maltreatment under
section 626.556 or 626.557, for other purposes, provided that:

(1) the background study is specifically authorized in statute; or

(2) the request is made with the informed consent of the subject of the study as provided
in section 13.05, subdivision 4.

(b) An individual making a request under paragraph (a), clause (2), must agree in writing
not to disclose the data to any other individual without the consent of the subject of the data.

(c) The commissioner may recover the cost of obtaining and providing background study
data by charging the individual or entity requesting the study a fee of no more than $20 per
study. The fees collected under this paragraph are appropriated to the commissioner for the
purpose of conducting background studies.

(d) The commissioner shall recover the cost of obtaining background study data required
under section 524.5-118 through a fee of $50 per study for an individual who has not lived
outside Minnesota for the past ten years, and a fee of $100 for an individual who has resided
outside of Minnesota for any period during the ten years preceding the background study.
The commissioner shall recover, from the individual, any additional fees charged by other
states' licensing agencies that are associated with these data requests. Fees under subdivision
3 also apply when deleted text begin criminal history data from the National Criminal Records Repository is
required deleted text end new text begin , as required by law, the background study includes a national criminal history
record check 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. 21.

Minnesota Statutes 2016, section 245C.32, subdivision 3, is amended to read:

Subd. 3.

National records search.

(a) When specifically required by statute, the
deleted text begin commissioner shall also obtain criminal history data from the National Criminal Records
Repository deleted text end new text begin background study shall include a national criminal history record check new text end .

(b) To obtain criminal history data from the deleted text begin National Criminal Records Repository deleted text end new text begin
Federal Bureau of Investigation new text end , the commissioner shall require classifiable fingerprints of
the data subject and must submit these fingerprint requests through the Bureau of Criminal
Apprehension.

(c) The commissioner may require the background study subject to submit fingerprint
images electronically. The commissioner may not require electronic fingerprint images until
the electronic recording and transfer system is available for noncriminal justice purposes
and the necessary equipment is in use in the law enforcement agency in the background
study subject's local community.

(d) The commissioner may recover the cost of obtaining deleted text begin and providing deleted text end criminal history
data deleted text begin from the National Criminal Records Repository deleted text end new text begin , including a national criminal history
record check, new text end by charging the individual or entity requesting the study a fee of no more than
$30 per study. The fees collected under this subdivision are appropriated to the commissioner
for the purpose of deleted text begin obtaining criminal history data from the National Criminal Records
Repository deleted text end new text begin a national criminal history record check 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. 22.

Minnesota Statutes 2016, section 245C.33, subdivision 4, is amended to read:

Subd. 4.

Information commissioner reviews.

(a) The commissioner shall review the
following information regarding the background study subject:

(1) the information under section 245C.08, subdivisions 1, 3, and 4;

(2) information from the child abuse and neglect registry for any state in which the
subject has resided for the past five years; and

(3) information deleted text begin from national crime information databases deleted text end new text begin received following a national
criminal history record check new text end , when required under section 245C.08.

(b) The commissioner shall provide any information collected under this subdivision to
the county or private agency that initiated the background study. The commissioner shall
also provide the agency:

(1) notice whether the information collected shows that the subject of the background
study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and

(2) for background studies conducted under subdivision 1, paragraph (a), the date of all
adoption-related background studies completed on the subject by the commissioner after
June 30, 2007, and the name of the county or private agency that initiated the adoption-related
background study.

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 245C.34, subdivision 4, is amended to read:

Subd. 4.

Information commissioner reviews.

(a) The commissioner shall review the
following information regarding the background study subject:

(1) the information under section 245C.08, subdivisions 1, 3, and 4;

(2) information from the child abuse and neglect registry for any state in which the
subject has resided for the past five years; and

(3) information from deleted text begin national crime information databases deleted text end new text begin a national criminal history
record check new text end , when required under section 245C.08.

(b) The commissioner shall provide any information collected under this subdivision to
the tribal organization that initiated the background study. The commissioner shall indicate
if the information collected shows that the subject of the background study has a conviction
listed in United States Code, title 42, section 671(a)(20)(A).

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 253D.28, subdivision 3, is amended to read:

Subd. 3.

Decision.

A majority of the judicial appeal panel shall rule upon the petition.
The panel shall consider the petition de novo. No order of the judicial appeal panel granting
a transfer deleted text begin , deleted text end new text begin or provisional new text end discharge deleted text begin , or provisional discharge deleted text end shall be made effective sooner
than 15 days after it is issued. new text begin No order of the judicial appeal panel granting discharge shall
be made effective sooner than 30 days after it is issued. new text end The panel may not consider petitions
for relief other than those considered by the special review board from which the appeal is
taken. The judicial appeal panel may not grant a transfer or provisional discharge on terms
or conditions that were not presented to the special review board.

ARTICLE 3

WELFARE SYSTEM DATA SHARING

Section 1.

Minnesota Statutes 2016, section 13.32, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Access by welfare system. new text end

new text begin County personnel in the welfare system may
request access to education data in order to coordinate services for a student or family. The
request must be submitted to the chief administrative officer of the school and must include
the basis for the request and a description of the information that is requested. The chief
administrative officer must provide a copy of the request to the parent or legal guardian of
the student who is the subject of the request, along with a form the parent or legal guardian
may execute to consent to the release of specified information to the requestor. Education
data may be released under this subdivision only if the parent or legal guardian gives
informed consent to the release.
new text end

Sec. 2.

Minnesota Statutes 2016, section 13.46, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

As used in this section:

(a) "Individual" means an individual according to section 13.02, subdivision 8, but does
not include a vendor of services.

(b) "Program" includes all programs for which authority is vested in a component of the
welfare system according to statute or federal law, including, but not limited to, new text begin Native
American tribe programs that provide a service component of the welfare system, new text end the aid
to families with dependent children program formerly codified in sections 256.72 to 256.87,
Minnesota family investment program, temporary assistance for needy families program,
medical assistance, general assistance, general assistance medical care formerly codified in
chapter 256D, child care assistance program, and child support collections.

(c) "Welfare system" includes the Department of Human Services, local social services
agencies, county welfare agencies, new text begin county public health agencies, county veteran services
agencies, county housing agencies, new text end private licensing agencies, the public authority responsible
for child support enforcement, human services boards, community mental health center
boards, state hospitals, state nursing homes, the ombudsman for mental health and
developmental disabilities, new text begin Native American tribes to the extent a tribe provides a service
component of the welfare system, new text end and persons, agencies, institutions, organizations, and
other entities under contract to any of the above agencies to the extent specified in the
contract.

(d) "Mental health data" means data on individual clients and patients of community
mental health centers, established under section 245.62, mental health divisions of counties
and other providers under contract to deliver mental health services, or the ombudsman for
mental health and developmental disabilities.

(e) "Fugitive felon" means a person who has been convicted of a felony and who has
escaped from confinement or violated the terms of probation or parole for that offense.

(f) "Private licensing agency" means an agency licensed by the commissioner of human
services under chapter 245A to perform the duties under section 245A.16.

Sec. 3.

Minnesota Statutes 2016, section 13.46, subdivision 2, is amended to read:

Subd. 2.

General.

(a) Data on individuals collected, maintained, used, or disseminated
by the welfare system are private data on individuals, and shall not be disclosed except:

(1) according to section 13.05;

(2) according to court order;

(3) according to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system and an investigator acting on behalf of a county,
the state, or the federal government, including a law enforcement person or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding relating to the
administration of a program;

(5) to personnel of the welfare system who require the data to verify an individual's
identity; determine eligibility, amount of assistance, and the need to provide services to an
individual or family across programs; coordinate services for an individual or family;
evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
suspected fraud;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) to the Department of Revenue to assess parental contribution amounts for purposes
of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs
and to identify individuals who may benefit from these programs. The following information
may be disclosed under this paragraph: an individual's and their dependent's names, dates
of birth, Social Security numbers, income, addresses, and other data as required, upon
request by the Department of Revenue. Disclosures by the commissioner of revenue to the
commissioner of human services for the purposes described in this clause are governed by
section 270B.14, subdivision 1. Tax refund or tax credit programs include, but are not limited
to, the dependent care credit under section 290.067, the Minnesota working family credit
under section 290.0671, the property tax refund and rental credit under section 290A.04,
and the Minnesota education credit under section 290.0674;

(9) between the Department of Human Services, the Department of Employment and
Economic Development, and when applicable, the Department of Education, for the following
purposes:

(i) to monitor the eligibility of the data subject for unemployment benefits, for any
employment or training program administered, supervised, or certified by that agency;

(ii) to administer any rehabilitation program or child care assistance program, whether
alone or in conjunction with the welfare system;

(iii) to monitor and evaluate the Minnesota family investment program or the child care
assistance program by exchanging data on recipients and former recipients of food support,
cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance under chapter
119B, medical programs under chapter 256B or 256L, or a medical program formerly
codified under chapter 256D; and

(iv) to analyze public assistance employment services and program utilization, cost,
effectiveness, and outcomes as implemented under the authority established in Title II,
Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999.
Health records governed by sections 144.291 to 144.298 and "protected health information"
as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code
of Federal Regulations, title 45, parts 160-164, including health care claims utilization
information, must not be exchanged under this clause;

(10) to appropriate parties in connection with an emergency if knowledge of the
information is necessary to protect the health or safety of the individual or other individuals
or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be
disclosed to the protection and advocacy system established in this state according to Part
C of Public Law 98-527 to protect the legal and human rights of persons with developmental
disabilities or other related conditions who live in residential facilities for these persons if
the protection and advocacy system receives a complaint by or on behalf of that person and
the person does not have a legal guardian or the state or a designee of the state is the legal
guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating
relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be
disclosed to the Minnesota Office of Higher Education to the extent necessary to determine
eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant Social Security numbers and names collected by the telephone assistance
program may be disclosed to the Department of Revenue to conduct an electronic data
match with the property tax refund database to determine eligibility under section 237.70,
subdivision 4a;

(15) the current address of a Minnesota family investment program participant may be
disclosed to law enforcement officers who provide the name of the participant and notify
the agency that:

(i) the participant:

(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or

(B) is violating a condition of probation or parole imposed under state or federal law;

(ii) the location or apprehension of the felon is within the law enforcement officer's
official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance may be disclosed to probation
officers and corrections agents who are supervising the recipient and to law enforcement
officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from food support applicant or recipient households may be
disclosed to local, state, or federal law enforcement officials, upon their written request, for
the purpose of investigating an alleged violation of the Food Stamp Act, according to Code
of Federal Regulations, title 7, section 272.1(c);

(18) the address, Social Security number, and, if available, photograph of any member
of a household receiving food support shall be made available, on request, to a local, state,
or federal law enforcement officer if the officer furnishes the agency with the name of the
member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal law;
or

(C) has information that is necessary for the officer to conduct an official duty related
to conduct described in subitem (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official duty;

(19) the current address of a recipient of Minnesota family investment program, general
assistance, or food support may be disclosed to law enforcement officers who, in writing,
provide the name of the recipient and notify the agency that the recipient is a person required
to register under section 243.166, but is not residing at the address at which the recipient is
registered under section 243.166;

(20) certain information regarding child support obligors who are in arrears may be
made public according to section 518A.74;

(21) data on child support payments made by a child support obligor and data on the
distribution of those payments excluding identifying information on obligees may be
disclosed to all obligees to whom the obligor owes support, and data on the enforcement
actions undertaken by the public authority, the status of those actions, and data on the income
of the obligor or obligee may be disclosed to the other party;

(22) data in the work reporting system may be disclosed under section 256.998,
subdivision 7;

(23) to the Department of Education for the purpose of matching Department of Education
student data with public assistance data to determine students eligible for free and
reduced-price meals, meal supplements, and free milk according to United States Code,
title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state
funds that are distributed based on income of the student's family; and to verify receipt of
energy assistance for the telephone assistance plan;

(24) the current address and telephone number of program recipients and emergency
contacts may be released to the commissioner of health or a community health board as
defined in section 145A.02, subdivision 5, when the commissioner or community health
board has reason to believe that a program recipient is a disease case, carrier, suspect case,
or at risk of illness, and the data are necessary to locate the person;

(25) to other state agencies, statewide systems, and political subdivisions of this state,
including the attorney general, and agencies of other states, interstate information networks,
federal agencies, and other entities as required by federal regulation or law for the
administration of the child support enforcement program;

(26) to personnel of public assistance programs as defined in section 256.741, for access
to the child support system database for the purpose of administration, including monitoring
and evaluation of those public assistance programs;

(27) to monitor and evaluate the Minnesota family investment program by exchanging
data between the Departments of Human Services and Education, on recipients and former
recipients of food support, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a
medical program formerly codified under chapter 256D;

(28) to evaluate child support program performance and to identify and prevent fraud
in the child support program by exchanging data between the Department of Human Services,
Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b),
without regard to the limitation of use in paragraph (c), Department of Health, Department
of Employment and Economic Development, and other state agencies as is reasonably
necessary to perform these functions;

(29) counties operating child care assistance programs under chapter 119B may
disseminate data on program participants, applicants, and providers to the commissioner of
education;

(30) child support data on the child, the parents, and relatives of the child may be
disclosed to agencies administering programs under titles IV-B and IV-E of the Social
Security Act, as authorized by federal law; deleted text begin or
deleted text end

(31) to a health care provider governed by sections 144.291 to 144.298, to the extent
necessary to coordinate services new text begin ;
new text end

new text begin (32) to the chief administrative officer of a school to coordinate services for a student
and family; data that may be disclosed under this clause are limited to name, date of birth,
gender, and address; or
new text end

new text begin (33) to county correctional agencies to the extent necessary to coordinate services and
diversion programs; data that may be disclosed under this clause are limited to name, client
demographics, program, case status, and county worker information new text end .

(b) Information on persons who have been treated for drug or alcohol abuse may only
be disclosed according to the requirements of Code of Federal Regulations, title 42, sections
2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16),
(17), or (18), or paragraph (b), are investigative data and are confidential or protected
nonpublic while the investigation is active. The data are private after the investigation
becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
not subject to the access provisions of subdivision 10, paragraph (b).

For the purposes of this subdivision, a request will be deemed to be made in writing if
made through a computer interface system.

Sec. 4.

Minnesota Statutes 2016, section 13.84, subdivision 5, is amended to read:

Subd. 5.

Disclosure.

Private or confidential court services data shall not be disclosed
except:

(a) pursuant to section 13.05;

(b) pursuant to a statute specifically authorizing disclosure of court services data;

(c) with the written permission of the source of confidential data;

(d) to the court services department, parole or probation authority or state or local
correctional agency or facility having statutorily granted supervision over the individual
subject of the data new text begin , or to county personnel within the community services system new text end ;

(e) pursuant to subdivision 6;

(f) pursuant to a valid court order; or

(g) pursuant to section 611A.06, subdivision 3a.

Sec. 5.

Minnesota Statutes 2016, section 626.556, subdivision 10j, is amended to read:

Subd. 10j.

Release of data to mandated reporters.

(a) A local social services or child
protection agency, or the agency responsible for assessing or investigating the report of
maltreatment new text begin or for providing child protective services new text end , shall provide relevant private data
on individuals obtained under this section to a mandated reporter who made the report and
who has an ongoing responsibility for the health, education, or welfare of a child affected
by the data, unless the agency determines that providing the data would not be in the best
interests of the child. The agency may provide the data to other mandated reporters with
ongoing responsibility for the health, education, or welfare of the child. Mandated reporters
with ongoing responsibility for the health, education, or welfare of a child affected by the
data include the child's teachers or other appropriate school personnel, foster parents, health
care providers, respite care workers, therapists, social workers, child care providers,
residential care staff, crisis nursery staff, probation officers, and court services personnel.
Under this section, a mandated reporter need not have made the report to be considered a
person with ongoing responsibility for the health, education, or welfare of a child affected
by the data. Data provided under this section must be limited to data pertinent to the
individual's responsibility for caring for the child.

(b) A reporter who receives private data on individuals under this subdivision must treat
the data according to that classification, regardless of whether the reporter is an employee
of a government entity. The remedies and penalties under sections 13.08 and 13.09 apply
if a reporter releases data in violation of this section or other law.

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 13.468, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: SF1292-2

13.468 DATA SHARING WITHIN COUNTIES.

County welfare, human services, corrections, public health, and veterans service units within a county may inform each other as to whether an individual or family currently is being served by the county unit, without the consent of the subject of the data. Data that may be shared are limited to the following: the name, telephone number, and last known address of the data subject; and the identification and contact information regarding personnel of the county unit responsible for working with the individual or family. If further information is necessary for the county unit to carry out its duties, each county unit may share additional data if the unit is authorized by state statute or federal law to do so or the individual gives written, informed consent.