SF 1447

Conference Committee Report - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:25pm

A bill for an act
relating to human services; making changes to licensing provisions, including
data practices, disqualifications, and background study requirements; amending
Minnesota Statutes 2008, sections 13.46, subdivisions 3, 4; 245A.03, subdivision
2; 245A.04, subdivisions 5, 7; 245A.041, by adding a subdivision; 245A.05;
245A.07, subdivisions 1, 3; 245A.1435; 245A.16, subdivision 1; 245A.50,
subdivision 5; 245C.03, subdivision 1; 245C.15, subdivisions 1, 2, 3, 4; 245C.22,
subdivision 7; 245C.24, subdivisions 2, 3; 245C.25; 245C.27, subdivision
1; 256.045, subdivisions 3, 3b; 626.556, subdivisions 2, 10e, 10f; 626.557,
subdivisions 9c, 12b; 626.5572, subdivision 13.

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

ARTICLE 1

DATA PRACTICES

Section 1.

Minnesota Statutes 2008, section 13.46, subdivision 3, is amended to read:

Subd. 3.

Investigative data.

(a) Data on persons, including data on vendors of
services deleted text begin and data on deleted text end new text begin , new text end licensees, new text begin and applicants, new text end that is collected, maintained, used, or
disseminated by the welfare system in an investigation, authorized by statute and relating
to the enforcement of rules or law, is confidential data on individuals pursuant to section
13.02, subdivision 3, or protected nonpublic data not on individuals pursuant to section
13.02, subdivision 13, and shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to statute or valid court order;

(3) to a party named in a civil or criminal proceeding, administrative or judicial, for
preparation of defense; or

(4) to provide notices required or permitted by statute.

The data referred to in this subdivision shall be classified as public data upon
its submission to an administrative law judge or court in an administrative or judicial
proceeding. Inactive welfare investigative data shall be treated as provided in section
13.39, subdivision 3.

(b) Notwithstanding any other provision in law, the commissioner of human services
shall provide all active and inactive investigative data, including the name of the reporter
of alleged maltreatment under section 626.556 or 626.557, to the ombudsman for mental
health and developmental disabilities upon the request of the ombudsman.

Sec. 2.

Minnesota Statutes 2008, section 13.46, subdivision 4, is amended to read:

Subd. 4.

Licensing data.

(a) As used in this subdivision:

(1) "licensing data" means all data collected, maintained, used, or disseminated by
the welfare system pertaining to persons licensed or registered or who apply for licensure
or registration or who formerly were licensed or registered under the authority of the
commissioner of human services;

(2) "client" means a person who is receiving services from a licensee or from an
applicant for licensure; and

(3) "personal and personal financial data" means Social Security numbers, identity
of and letters of reference, insurance information, reports from the Bureau of Criminal
Apprehension, health examination reports, and social/home studies.

(b)(1) Except as provided in paragraph (c), the following data on applicants, license
holders, and former licensees are public: name, address, telephone number of licensees,
date of receipt of a completed application, dates of licensure, licensed capacity, type of
client preferred, variances granted, record of training and education in child care and child
development, type of dwelling, name and relationship of other family members, previous
license history, class of license, the existence and status of complaints, and the number
of serious injuries to or deaths of individuals in the licensed program as reported to the
commissioner of human services, the local social services agency, or any other county
welfare agency. For purposes of this clause, a serious injury is one that is treated by
a physician. When a correction order deleted text begin or deleted text end new text begin , an order to forfeit a new text end fine new text begin , an order of license
suspension, an order of temporary immediate suspension, an order of license revocation,
an order of license denial, or an order of conditional license new text end has been issued, deleted text begin a license is
suspended, immediately suspended, revoked, denied, or made conditional, deleted text end or a complaint
is resolved, the following data on current and former licensees and applicants are public:
the substance and investigative findings of the licensing or maltreatment complaint,
licensing violation, or substantiated maltreatment; the record of informal resolution of a
licensing violation; orders of hearing; findings of fact; conclusions of law; specifications of
the final correction order, fine, suspension, new text begin temporary new text end immediate suspension, revocation,
denial, or conditional license contained in the record of licensing action; new text begin whether a fine
has been paid; new text end and the status of any appeal of these actions. new text begin If a licensing sanction under
section 245A.07, or a license denial under section 245A.05, is based on a determination
that the license holder or applicant is responsible for maltreatment or is disqualified under
chapter 245C, the identity of the license holder or applicant as the individual responsible
for maltreatment or as the disqualified individual is public data at the time of the issuance
of the licensing sanction or denial.
new text end

(2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
when any person subject to disqualification under section 245C.14 in connection with a
license to provide family day care for children, child care center services, foster care
for children in the provider's home, or foster care or day care services for adults in the
provider's home is a substantiated perpetrator of maltreatment, and the substantiated
maltreatment is a reason for a licensing action, the identity of the substantiated perpetrator
of maltreatment is public data. For purposes of this clause, a person is a substantiated
perpetrator if the maltreatment determination has been upheld under section 256.045;
626.556, subdivision 10i; 626.557, subdivision 9d; or chapter 14, or if an individual or
facility has not timely exercised appeal rights under these sections new text begin , except as provided
under clause (1) new text end .

(3) For applicants who withdraw their application prior to licensure or denial of a
license, the following data are public: the name of the applicant, the city and county in
which the applicant was seeking licensure, the dates of the commissioner's receipt of the
initial application and completed application, the type of license sought, and the date
of withdrawal of the application.

(4) For applicants who are denied a license, the following data are public: the name
and address of the applicant, the city and county in which the applicant was seeking
licensure, the dates of the commissioner's receipt of the initial application and completed
application, the type of license sought, the date of denial of the application, the nature of
the basis for the denial, the record of informal resolution of a denial, orders of hearings,
findings of fact, conclusions of law, specifications of the final order of denial, and the
status of any appeal of the denial.

(5) The following data on persons subject to disqualification under section 245C.14
in connection with a license to provide family day care for children, child care center
services, foster care for children in the provider's home, or foster care or day care services
for adults in the provider's home, are public: the nature of any disqualification set
aside under section 245C.22, subdivisions 2 and 4, and the reasons for setting aside the
disqualification; the nature of any disqualification for which a variance was granted under
sections 245A.04, subdivision 9; and 245C.30, and the reasons for granting any variance
under section 245A.04, subdivision 9; and, if applicable, the disclosure that any person
subject to a background study under section 245C.03, subdivision 1, has successfully
passed a background study. new text begin If a licensing sanction under section 245A.07, or a license
denial under section 245A.05, is based on a determination that an individual subject to
disqualification under chapter 245C is disqualified, the disqualification as a basis for the
licensing sanction or denial is public data. As specified in clause (1), if the disqualified
individual is the license holder or applicant, the identity of the license holder or applicant
is public data. If the disqualified individual is an individual other than the license holder
or applicant, the identity of the disqualified individual shall remain private data.
new text end

(6) When maltreatment is substantiated under section 626.556 or 626.557 and the
victim and the substantiated perpetrator are affiliated with a program licensed under
chapter 245A, the commissioner of human services, local social services agency, or
county welfare agency may inform the license holder where the maltreatment occurred of
the identity of the substantiated perpetrator and the victim.

(7) Notwithstanding clause (1), for child foster care, only the name of the license
holder and the status of the license are public if the county attorney has requested that data
otherwise classified as public data under clause (1) be considered private data based on the
best interests of a child in placement in a licensed program.

(c) The following are private data on individuals under section 13.02, subdivision
12, or nonpublic data under section 13.02, subdivision 9: personal and personal financial
data on family day care program and family foster care program applicants and licensees
and their family members who provide services under the license.

(d) The following are private data on individuals: the identity of persons who have
made reports concerning licensees or applicants that appear in inactive investigative data,
and the records of clients or employees of the licensee or applicant for licensure whose
records are received by the licensing agency for purposes of review or in anticipation of a
contested matter. The names of reporters new text begin of complaints or alleged violations of licensing
standards under chapters 245A, 245B, 245C, and applicable rules and alleged maltreatment new text end
under sections 626.556 and 626.557 new text begin , are confidential data and new text end may be disclosed only as
provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.

(e) Data classified as private, confidential, nonpublic, or protected nonpublic under
this subdivision become public data if submitted to a court or administrative law judge as
part of a disciplinary proceeding in which there is a public hearing concerning a license
which has been suspended, immediately suspended, revoked, or denied.

(f) Data generated in the course of licensing investigations that relate to an alleged
violation of deleted text begin law deleted text end new text begin chapters 245A, 245B, 245C, and applicable rules, and sections 626.556
and 626.557, new text end are investigative data under subdivision 3.

(g) Data that are not public data collected, maintained, used, or disseminated under
this subdivision that relate to or are derived from a report as defined in section 626.556,
subdivision 2, or 626.5572, subdivision 18, are subject to the destruction provisions of
sections 626.556, subdivision 11c, and 626.557, subdivision 12b.

(h) Upon request, not public data collected, maintained, used, or disseminated under
this subdivision that relate to or are derived from a report of substantiated maltreatment as
defined in section 626.556 or 626.557 may be exchanged with the Department of Health
for purposes of completing background studies pursuant to section 144.057 and with
the Department of Corrections for purposes of completing background studies pursuant
to section 241.021.

(i) Data on individuals collected according to licensing activities under chapters
245A and 245C, and data on individuals collected by the commissioner of human services
according to maltreatment investigations under sections 626.556 and 626.557, may be
shared with the Department of Human Rights, the Department of Health, the Department
of Corrections, the ombudsman for mental health and developmental disabilities, and
the individual's professional regulatory board when there is reason to believe that laws
or standards under the jurisdiction of those agencies may have been violated. new text begin Unless
otherwise specified in this chapter, the identity of a reporter of alleged maltreatment or
licensing violations may not be disclosed.
new text end

(j) In addition to the notice of determinations required under section 626.556,
subdivision 10f, if the commissioner or the local social services agency has determined
that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
services agency knows that the individual is a person responsible for a child's care in
another facility, the commissioner or local social services agency shall notify the head
of that facility of this determination. The notification must include an explanation of the
individual's available appeal rights and the status of any appeal. If a notice is given under
this paragraph, the government entity making the notification shall provide a copy of the
notice to the individual who is the subject of the notice.

(k) All not public data collected, maintained, used, or disseminated under this
subdivision and subdivision 3 may be exchanged between the Department of Human
Services, Licensing Division, and the Department of Corrections for purposes of
regulating services for which the Department of Human Services and the Department
of Corrections have regulatory authority.

ARTICLE 2

LICENSING

Section 1.

Minnesota Statutes 2008, section 245A.03, subdivision 2, is amended to
read:

Subd. 2.

Exclusion from licensure.

(a) This chapter does not apply to:

(1) residential or nonresidential programs that are provided to a person by an
individual who is related unless the residential program is a child foster care placement
made by a local social services agency or a licensed child-placing agency, except as
provided in subdivision 2a;

(2) nonresidential programs that are provided by an unrelated individual to persons
from a single related family;

(3) residential or nonresidential programs that are provided to adults who do
not abuse chemicals or who do not have a chemical dependency, a mental illness, a
developmental disability, a functional impairment, or a physical disability;

(4) sheltered workshops or work activity programs that are certified by the
commissioner of economic security;

(5) programs operated by a public school for children 33 months or older;

(6) nonresidential programs primarily for children that provide care or supervision
for periods of less than three hours a day while the child's parent or legal guardian is in
the same building as the nonresidential program or present within another building that is
directly contiguous to the building in which the nonresidential program is located;

(7) nursing homes or hospitals licensed by the commissioner of health except as
specified under section 245A.02;

(8) board and lodge facilities licensed by the commissioner of health that provide
services for five or more persons whose primary diagnosis is mental illness that do not
provide intensive residential treatment;

(9) homes providing programs for persons placed by a county or a licensed agency
for legal adoption, unless the adoption is not completed within two years;

(10) programs licensed by the commissioner of corrections;

(11) recreation programs for children or adults that are operated or approved by a
park and recreation board whose primary purpose is to provide social and recreational
activities;

(12) programs operated by a school as defined in section 120A.22, subdivision 4,
whose primary purpose is to provide child care to school-age children;

(13) Head Start nonresidential programs which operate for less than 45 days in
each calendar year;

(14) noncertified boarding care homes unless they provide services for five or more
persons whose primary diagnosis is mental illness or a developmental disability;

(15) programs for children such as scouting, boys clubs, girls clubs, and sports and
art programs, and nonresidential programs for children provided for a cumulative total of
less than 30 days in any 12-month period;

(16) residential programs for persons with mental illness, that are located in hospitals;

(17) the religious instruction of school-age children; Sabbath or Sunday schools; or
the congregate care of children by a church, congregation, or religious society during the
period used by the church, congregation, or religious society for its regular worship;

(18) camps licensed by the commissioner of health under Minnesota Rules, chapter
4630;

(19) mental health outpatient services for adults with mental illness or children
with emotional disturbance;

(20) residential programs serving school-age children whose sole purpose is cultural
or educational exchange, until the commissioner adopts appropriate rules;

(21) unrelated individuals who provide out-of-home respite care services to persons
with developmental disabilities from a single related family for no more than 90 days in a
12-month period and the respite care services are for the temporary relief of the person's
family or legal representative;

(22) respite care services provided as a home and community-based service to a
person with a developmental disability, in the person's primary residence;

(23) community support services programs as defined in section 245.462, subdivision
6, and family community support services as defined in section 245.4871, subdivision 17;

(24) the placement of a child by a birth parent or legal guardian in a preadoptive
home for purposes of adoption as authorized by section 259.47;

(25) settings registered under chapter 144D which provide home care services
licensed by the commissioner of health to fewer than seven adults; deleted text begin or
deleted text end

(26) new text begin chemical dependency or substance abuse treatment activities of licensed
professionals in private practice as defined in Minnesota Rules, part 9530.6405, subpart
15, when the treatment activities are not paid for by the consolidated chemical dependency
treatment fund; or
new text end

new text begin (27) new text end consumer-directed community support service funded under the Medicaid
waiver for persons with developmental disabilities when the individual who provided
the service is:

(i) the same individual who is the direct payee of these specific waiver funds or paid
by a fiscal agent, fiscal intermediary, or employer of record; and

(ii) not otherwise under the control of a residential or nonresidential program that is
required to be licensed under this chapter when providing the service.

(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a
building in which a nonresidential program is located if it shares a common wall with the
building in which the nonresidential program is located or is attached to that building by
skyway, tunnel, atrium, or common roof.

(c) Nothing in this chapter shall be construed to require licensure for any services
provided and funded according to an approved federal waiver plan where licensure is
specifically identified as not being a condition for the services and funding.

Sec. 2.

Minnesota Statutes 2008, section 245A.04, subdivision 5, is amended to read:

Subd. 5.

Commissioner's right of access.

When the commissioner is exercising the
powers conferred by this chapter and deleted text begin section deleted text end new text begin sections new text end 245.69, new text begin 626.556, and 626.557, new text end the
commissioner must be given access to the physical plant and grounds where the program
is provided, documents new text begin and records maintained in the electronic format new text end , persons served by
the program, and staff whenever the program is in operation and the information is relevant
to inspections or investigations conducted by the commissioner. The commissioner must
be given access without prior notice and as often as the commissioner considers necessary
if the commissioner is conducting an investigation of allegations of maltreatment or other
violation of applicable laws or rules. In conducting inspections, the commissioner may
request and shall receive assistance from other state, county, and municipal governmental
agencies and departments. The applicant or license holder shall allow the commissioner to
photocopy, photograph, and make audio and video tape recordings during the inspection of
the program at the commissioner's expense. The commissioner shall obtain a court order
or the consent of the subject of the records or the parents or legal guardian of the subject
before photocopying hospital medical records.

Persons served by the program have the right to refuse to consent to be interviewed,
photographed, or audio or videotaped. Failure or refusal of an applicant or license holder
to fully comply with this subdivision is reasonable cause for the commissioner to deny the
application or immediately suspend or revoke the license.

Sec. 3.

Minnesota Statutes 2008, section 245A.04, subdivision 7, is amended to read:

Subd. 7.

Grant of license; license extension.

(a) If the commissioner determines
that the program complies with all applicable rules and laws, the commissioner shall issue
a license. At minimum, the license shall state:

(1) the name of the license holder;

(2) the address of the program;

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

(4) the type of license;

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

(6) any special conditions of licensure.

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

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

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

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

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

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

(e) The commissioner shall not issue new text begin or reissue new text end a license if the applicant, license
holder, or controlling individual has:

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

(2) has been denied a license within the past two years; deleted text begin or
deleted text end

(3) had a license revoked within the past five years new text begin ; or
new text end

new text begin (4) has an outstanding debt related to a license fee, licensing fine, or settlement
agreement for which payment is delinquent new text end .

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

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

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

(h) Unless otherwise specified by statute, all licenses expire at 12:01 a.m. on the
day after the expiration date stated on the license. A license holder must apply for and
be granted a new license to operate the program or the program must not be operated
after the expiration date.

Sec. 4.

Minnesota Statutes 2008, section 245A.041, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Electronic records. new text end

new text begin License holders shall maintain electronic records
in a manner that complies with all requirements of this chapter and chapters 245B and
245C, and applicable rules.
new text end

Sec. 5.

Minnesota Statutes 2008, section 245A.05, is amended to read:

245A.05 DENIAL OF APPLICATION.

The commissioner may deny a license if an applicant fails to comply with
applicable laws or rules, deleted text begin or deleted text end knowingly withholds relevant information from or gives
false or misleading information to the commissioner in connection with an application
for a license or during an investigation new text begin , or if an applicant, 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, and no variance has been granted new text end . An applicant whose application has
been denied by the commissioner must be given notice of the denial. Notice must be given
by certified mail or personal service. The notice must state the reasons the application
was denied and must inform the applicant of the right to a contested case hearing under
chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The applicant may
appeal the denial by notifying the commissioner in writing by certified mail or personal
service deleted text begin within 20 calendar days after receiving notice that the application was denied deleted text end . new text begin If
mailed, the appeal must be postmarked and sent to the commissioner within 20 calendar
days after the applicant received the notice of denial. If an appeal request is made by
personal service, it must be received by the commissioner within 20 calendar days after
the applicant received the notice of denial. new text end Section 245A.08 applies to hearings held to
appeal the commissioner's denial of an application.

Sec. 6.

Minnesota Statutes 2008, section 245A.07, subdivision 1, is amended to read:

Subdivision 1.

Sanctions; appeals; license.

(a) In addition to making a license
conditional under section 245A.06, the commissioner may deleted text begin propose to deleted text end 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, and
the license expires during this time period, the commissioner shall issue the license holder
a temporary provisional license. The temporary provisional license is effective on the date
issued and expires on the date that a final order is issued. 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 sanctions under this section and section 245A.06, and may
terminate any prior variance. If the license holder prevails on the appeal and the effective
period of the previous license has expired, a new license shall be issued to the license
holder upon payment of any fee required under section 245A.10. The effective date of the
new license shall be retroactive to the date the license would have shown had no sanction
been initiated. The expiration date shall be the expiration date of that license had no
license sanction been initiated.

(c) If a license holder is under investigation and the license is due to expire
before completion of the investigation, the program shall be issued a new license upon
completion of the reapplication requirements. 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 by the license holder prior to the
completion of any investigation shall not preclude the commissioner from issuing a
licensing sanction under this section, section 245A.06, or 245A.08 at the conclusion
of the investigation.

Sec. 7.

Minnesota Statutes 2008, 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 a license holder fails to comply fully with
applicable laws or rules, if 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, or if 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. A license holder
who has had a license 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), new text begin if a license holder submits
new text end a timely appeal of an order suspending or revoking a license deleted text begin shall stay the suspension or
revocation deleted text end new text begin , the license holder may continue to operate new text end until the commissioner issues a
final order new text begin on the suspension or revocation new text end .

(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 deleted text begin submit a deleted text end new text begin comply with new text end background study new text begin requirements under chapter 245C new text end ; 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 the residential-based
habilitation services, as defined under section 245B.02, subdivision 20, and a license to
provide foster care, 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.

Sec. 8.

Minnesota Statutes 2008, section 245A.1435, is amended to read:

245A.1435 REDUCTION OF RISK OF SUDDEN INFANT DEATH
SYNDROME IN LICENSED PROGRAMS.

When a license holder is placing an infant to sleep, the license holder must place the
infant on the infant's back, unless the license holder has documentation from the infant's
parent directing an alternative sleeping position for the infant, and must place the infant in
a crib with a firm mattress. The license holder must not place pillows, quilts, comforters,
sheepskin, pillow-like stuffed toys, or other soft products in the crib with the infant. new text begin The
requirements of this section apply to license holders serving infants up to and including
12 months of age. new text end Licensed child care providers must meet the crib requirements under
section 245A.146.

Sec. 9.

Minnesota Statutes 2008, section 245A.16, subdivision 1, is amended to read:

Subdivision 1.

Delegation of authority to agencies.

(a) County agencies and
private agencies that have been designated or licensed by the commissioner to perform
licensing functions and activities under section 245A.04 background studies for adult
foster care, family adult day services, and family child care, under chapter 245C; to
recommend denial of applicants under section 245A.05; to issue correction orders, to issue
variances, and recommend a conditional license under section 245A.06, or to recommend
suspending or revoking a license or issuing a fine under section 245A.07, shall comply
with rules and directives of the commissioner governing those functions and with this
section. The following variances are excluded from the delegation of variance authority
and may be issued only by the commissioner:

(1) dual licensure of family child care and child foster care, dual licensure of child
and adult foster care, and adult foster care and family child care;

(2) adult foster care maximum capacity;

(3) adult foster care minimum age requirement;

(4) child foster care maximum age requirement;

(5) variances regarding disqualified individuals except that county agencies may
issue variances under section 245C.30 regarding disqualified individuals when the county
is responsible for conducting a consolidated reconsideration according to sections 245C.25
and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination
and a disqualification based on serious or recurring maltreatment; and

(6) the required presence of a caregiver in the adult foster care residence during
normal sleeping hours.

new text begin Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency
must not grant a license holder a variance to exceed the maximum allowable family child
care license capacity of 14 children.
new text end

(b) County agencies must report information about disqualification reconsiderations
under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances
granted under paragraph (a), clause (5), to the commissioner at least monthly in a format
prescribed by the commissioner.

(c) For family day care programs, the commissioner may authorize licensing reviews
every two years after a licensee has had at least one annual review.

(d) For family adult day services programs, the commissioner may authorize
licensing reviews every two years after a licensee has had at least one annual review.

(e) A license issued under this section may be issued for up to two years.

Sec. 10.

Minnesota Statutes 2008, section 245A.50, subdivision 5, is amended to read:

Subd. 5.

Sudden infant death syndrome and shaken baby syndrome training.

(a) License holders must document that before staff persons, caregivers, and helpers
assist in the care of infants, they are instructed on the standards in section 245A.1435 and
receive training on reducing the risk of sudden infant death syndrome and shaken baby
syndrome. The training in this subdivision may be provided as initial training under
subdivision 1 or ongoing training under subdivision 7.

(b) Training required under this subdivision must be at least one hour in length and
must be completed at least once every five years. At a minimum, the training must address
the risk factors related to sudden infant death syndrome and shaken baby syndrome,
means of reducing the risk of sudden infant death syndrome and shaken baby syndrome in
child care, and license holder communication with parents regarding reducing the risk of
sudden infant death syndrome and shaken baby syndrome.

(c) Training for family and group family child care providers must be approved
by the county licensing agency.

(d) The commissioner shall make available for viewing by all licensed child care
providers a video presentation on the dangers associated with shaking infants and young
children. The video presentation shall be part of the initial and ongoing new text begin annual new text end training of
licensed child care providers. The commissioner shall provide to child care providers and
interested individuals, at cost, copies of a video approved by the commissioner of health
under section 144.574 on the dangers associated with shaking infants and young children.

Sec. 11.

Minnesota Statutes 2008, section 245C.03, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs.

(a) The commissioner shall conduct a
background study on:

(1) the person or persons applying for a license;

(2) an individual age 13 and over living in the household where the licensed
program will be provided;

(3) current or prospective employees or contractors of the applicant who will have
direct contact with persons served by the facility, agency, or program;

(4) volunteers or student volunteers who will have direct contact with persons served
by the program to provide program services if the contact is not under the continuous,
direct supervision by an individual listed in clause (1) or (3);

(5) an individual age ten to 12 living in the household where the licensed services
will be provided when the commissioner has reasonable cause;

(6) an individual who, without providing direct contact services at a licensed
program, may have unsupervised access to children or vulnerable adults receiving services
from a program, when the commissioner has reasonable cause; deleted text begin and
deleted text end

(7) all managerial officials as defined under section 245A.02, subdivision 5a new text begin ;
new text end

new text begin (8) a former employee who is rehired to provide direct contact services to persons
served by the program following a lay off or termination of employment;
new text end

new text begin (9) an individual required to have a background study under clause (3) who has
not provided direct contact services to persons served by the program for more than 45
consecutive days must have a new background study initiated before returning to a
position that provides direct contact services to persons served by the program; and
new text end

new text begin (10) an individual whose background study was completed under a license that
subsequently closes must have a new background study initiated by the facility, agency, or
program under an active license new text end .

(b) For family child foster care settings, a short-term substitute caregiver providing
direct contact services for a child for less than 72 hours of continuous care is not required
to receive a background study under this chapter.

Sec. 12.

Minnesota Statutes 2008, section 245C.15, subdivision 1, is amended to read:

Subdivision 1.

Permanent disqualification.

(a) An individual is disqualified under
section 245C.14 if: (1) regardless of how much time has passed since the discharge of the
sentence imposed, if any, for the offense; and (2) unless otherwise specified, regardless
of the level of the offense, the individual has committed any of the following offenses:
sections 243.166 (violation of predatory offender registration law); 609.185 (murder in the
first degree); 609.19 (murder in the second degree); 609.195 (murder in the third degree);
609.20 (manslaughter in the first degree); 609.205 (manslaughter in the second degree); a
felony offense under 609.221 or 609.222 (assault in the first or second degree); a felony
offense under sections 609.2242 and 609.2243 (domestic assault), spousal abuse, child
abuse or neglect, or a crime against children; 609.2247 (domestic assault by strangulation);
609.228 (great bodily harm caused by distribution of drugs); 609.245 (aggravated
robbery); 609.25 (kidnapping); 609.2661 (murder of an unborn child in the first degree);
609.2662 (murder of an unborn child in the second degree); 609.2663 (murder of an
unborn child in the third degree); 609.322 (solicitation, inducement, and promotion of
prostitution); 609.324, subdivision 1 (other prohibited acts); 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); 609.3451 (criminal sexual conduct in the fifth degree); 609.3453
(criminal sexual predatory conduct); 609.352 (solicitation of children to engage in sexual
conduct); 609.365 (incest); a felony offense under 609.377 (malicious punishment of a
child); a felony offense under 609.378 (neglect or endangerment of a child); 609.561
(arson in the first degree); 609.66, subdivision 1e (drive-by shooting); 609.749, subdivision
3, 4, or 5 (felony-level harassment; stalking); 609.855, subdivision 5 (shooting at or in a
public transit vehicle or facility); 617.23, subdivision 2, clause (1), or subdivision 3, clause
(1) (indecent exposure involving a minor); 617.246 (use of minors in sexual performance
prohibited); or 617.247 (possession of pictorial representations of minors). An individual
also is disqualified under section 245C.14 regardless of how much time has passed since
the involuntary termination of the individual's parental rights under section 260C.301.

(b) An individual's aiding and abetting, attempt, or conspiracy to commit any of the
offenses listed in paragraph (a), as each of these offenses is defined in Minnesota Statutes,
permanently disqualifies the individual under section 245C.14.

(c) An individual's offense in any other state or country, where the elements of the
offense are substantially similar to any of the offenses listed in paragraph (a), permanently
disqualifies the individual under section 245C.14.

(d) When a disqualification is based on a judicial determination other than a
conviction, the disqualification period begins from the date of the court order. When a
disqualification is based on an admission, the disqualification period begins from the
date of an admission in court. new text begin When a disqualification is based on an Alford Plea, the
disqualification period begins from the date the Alford Plea is entered in court. new text end When
a disqualification is based on a preponderance of evidence of a disqualifying act, the
disqualification date begins from the date of the dismissal, the date of discharge of the
sentence imposed for a conviction for a disqualifying crime of similar elements, or the
date of the incident, whichever occurs last.

(e) If the individual studied commits one of the offenses listed in paragraph (a) that
is specified as a felony-level only offense, but the sentence or level of offense is a gross
misdemeanor or misdemeanor, the individual is disqualified, but the disqualification
look-back period for the offense is the period applicable to gross misdemeanor or
misdemeanor offenses.

Sec. 13.

Minnesota Statutes 2008, section 245C.15, subdivision 2, is amended to read:

Subd. 2.

15-year disqualification.

(a) An individual is disqualified under section
245C.14 if: (1) less than 15 years have passed since the discharge of the sentence imposed,
if any, for the offense; and (2) the individual has committed a felony-level violation
of any of the following offenses: sections 256.98 (wrongfully obtaining assistance);
268.182 (false representation; concealment of facts); 393.07, subdivision 10, paragraph
(c) (federal Food Stamp Program fraud); 609.165 (felon ineligible to possess firearm);
609.21 (criminal vehicular homicide and injury); 609.215 (suicide); 609.223 or 609.2231
(assault in the third or fourth degree); repeat offenses under 609.224 (assault in the fifth
degree); 609.229 (crimes committed for benefit of a gang); 609.2325 (criminal abuse of a
vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.235 (use of
drugs to injure or facilitate crime); 609.24 (simple robbery); 609.255 (false imprisonment);
609.2664 (manslaughter of an unborn child in the first degree); 609.2665 (manslaughter
of an unborn child in the second degree); 609.267 (assault of an unborn child in the first
degree); 609.2671 (assault of an unborn child in the second degree); 609.268 (injury
or death of an unborn child in the commission of a crime); 609.27 (coercion); 609.275
(attempt to coerce); 609.466 (medical assistance fraud); new text begin 609.495 (aiding an offender);
new text end 609.498, subdivision 1 or 1b (aggravated first-degree or first-degree tampering with a
witness); 609.52 (theft); 609.521 (possession of shoplifting gear); 609.525 (bringing
stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property);
609.535 (issuance of dishonored checks); 609.562 (arson in the second degree);
609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession of burglary
tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery);
609.631 (check forgery; offering a forged check); 609.635 (obtaining signature by
false pretense); 609.66 (dangerous weapons); 609.67 (machine guns and short-barreled
shotguns); 609.687 (adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.82
(fraud in obtaining credit); 609.821 (financial transaction card fraud); 617.23 (indecent
exposure), not involving a minor; repeat offenses under 617.241 (obscene materials and
performances; distribution and exhibition prohibited; penalty); 624.713 (certain persons
not to possess firearms); chapter 152 (drugs; controlled substance); or a felony-level
conviction involving alcohol or drug use.

(b) An individual is disqualified under section 245C.14 if less than 15 years has
passed since the individual's aiding and abetting, attempt, or conspiracy to commit any
of the offenses listed in paragraph (a), as each of these offenses is defined in Minnesota
Statutes.

(c) For foster care and family child care an individual is disqualified under section
245C.14 if less than 15 years has passed since the individual's voluntary termination of
the individual's parental rights under section 260C.301, subdivision 1, paragraph (b), or
260C.301, subdivision 3.

(d) An individual is disqualified under section 245C.14 if less than 15 years has
passed since the discharge of the sentence imposed for an offense in any other state or
country, the elements of which are substantially similar to the elements of the offenses
listed in paragraph (a).

(e) If the individual studied commits one of the offenses listed in paragraph (a), but
the sentence or level of offense is a gross misdemeanor or misdemeanor, the individual
is disqualified but the disqualification look-back period for the offense is the period
applicable to the gross misdemeanor or misdemeanor disposition.

(f) When a disqualification is based on a judicial determination other than a
conviction, the disqualification period begins from the date of the court order. When a
disqualification is based on an admission, the disqualification period begins from the
date of an admission in court. new text begin When a disqualification is based on an Alford Plea, the
disqualification period begins from the date the Alford Plea is entered in court. new text end When
a disqualification is based on a preponderance of evidence of a disqualifying act, the
disqualification date begins from the date of the dismissal, the date of discharge of the
sentence imposed for a conviction for a disqualifying crime of similar elements, or the
date of the incident, whichever occurs last.

Sec. 14.

Minnesota Statutes 2008, section 245C.15, subdivision 3, is amended to read:

Subd. 3.

Ten-year disqualification.

(a) An individual is disqualified under section
245C.14 if: (1) less than ten years have passed since the discharge of the sentence imposed,
if any, for the offense; and (2) the individual has committed a gross misdemeanor-level
violation of any of the following offenses: sections 256.98 (wrongfully obtaining
assistance); 268.182 (false representation; concealment of facts); 393.07, subdivision 10,
paragraph (c) (federal Food Stamp Program fraud); 609.21 (criminal vehicular homicide
and injury); 609.221 or 609.222 (assault in the first or second degree); 609.223 or
609.2231 (assault in the third or fourth degree); 609.224 (assault in the fifth degree);
609.224, subdivision 2, paragraph (c) (assault in the fifth degree by a caregiver against a
vulnerable adult); 609.2242 and 609.2243 (domestic assault); 609.23 (mistreatment of
persons confined); 609.231 (mistreatment of residents or patients); 609.2325 (criminal
abuse of a vulnerable adult); 609.233 (criminal neglect of a vulnerable adult); 609.2335
(financial exploitation of a vulnerable adult); 609.234 (failure to report maltreatment of a
vulnerable adult); 609.265 (abduction); 609.275 (attempt to coerce); 609.324, subdivision
1a (other prohibited acts; minor engaged in prostitution); 609.33 (disorderly house);
609.377 (malicious punishment of a child); 609.378 (neglect or endangerment of a child);
609.466 (medical assistance fraud); 609.52 (theft); 609.525 (bringing stolen goods into
Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property); 609.535 (issuance
of dishonored checks); 609.582 (burglary); 609.59 (possession of burglary tools); 609.611
(insurance fraud); 609.631 (check forgery; offering a forged check); 609.66 (dangerous
weapons); 609.71 (riot); 609.72, subdivision 3 (disorderly conduct against a vulnerable
adult); repeat offenses under 609.746 (interference with privacy); 609.749, subdivision 2
(harassment; stalking); 609.82 (fraud in obtaining credit); 609.821 (financial transaction
card fraud); 617.23 (indecent exposure), not involving a minor; 617.241 (obscene
materials and performances); 617.243 (indecent literature, distribution); 617.293 (harmful
materials; dissemination and display to minors prohibited); or violation of an order for
protection under section 518B.01, subdivision 14.

(b) An individual is disqualified under section 245C.14 if less than ten years has
passed since the individual's aiding and abetting, attempt, or conspiracy to commit any
of the offenses listed in paragraph (a), as each of these offenses is defined in Minnesota
Statutes.

(c) An individual is disqualified under section 245C.14 if less than ten years has
passed since the discharge of the sentence imposed for an offense in any other state or
country, the elements of which are substantially similar to the elements of any of the
offenses listed in paragraph (a).

(d) If the individual studied commits one of the offenses listed in paragraph (a), but
the sentence or level of offense is a misdemeanor disposition, the individual is disqualified
but the disqualification lookback period for the offense is the period applicable to
misdemeanors.

(e) When a disqualification is based on a judicial determination other than a
conviction, the disqualification period begins from the date of the court order. When a
disqualification is based on an admission, the disqualification period begins from the
date of an admission in court. new text begin When a disqualification is based on an Alford Plea, the
disqualification period begins from the date the Alford Plea is entered in court. new text end When
a disqualification is based on a preponderance of evidence of a disqualifying act, the
disqualification date begins from the date of the dismissal, the date of discharge of the
sentence imposed for a conviction for a disqualifying crime of similar elements, or the
date of the incident, whichever occurs last.

Sec. 15.

Minnesota Statutes 2008, section 245C.15, subdivision 4, is amended to read:

Subd. 4.

Seven-year disqualification.

(a) An individual is disqualified under
section 245C.14 if: (1) less than seven years has passed since the discharge of the sentence
imposed, if any, for the offense; and (2) the individual has committed a misdemeanor-level
violation of any of the following offenses: sections 256.98 (wrongfully obtaining
assistance); 268.182 (false representation; concealment of facts); 393.07, subdivision 10,
paragraph (c) (federal Food Stamp Program fraud); 609.21 (criminal vehicular homicide
and injury); 609.221 (assault in the first degree); 609.222 (assault in the second degree);
609.223 (assault in the third degree); 609.2231 (assault in the fourth degree); 609.224
(assault in the fifth degree); 609.2242 (domestic assault); 609.2335 (financial exploitation
of a vulnerable adult); 609.234 (failure to report maltreatment of a vulnerable adult);
609.2672 (assault of an unborn child in the third degree); 609.27 (coercion); violation
of an order for protection under 609.3232 (protective order authorized; procedures;
penalties); 609.466 (medical assistance fraud); 609.52 (theft); 609.525 (bringing stolen
goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property);
609.535 (issuance of dishonored checks); 609.611 (insurance fraud); 609.66 (dangerous
weapons); 609.665 (spring guns); 609.746 (interference with privacy); 609.79 (obscene or
harassing telephone calls); 609.795 (letter, telegram, or package; opening; harassment);
609.82 (fraud in obtaining credit); 609.821 (financial transaction card fraud); 617.23
(indecent exposure), not involving a minor; 617.293 (harmful materials; dissemination
and display to minors prohibited); or violation of an order for protection under section
518B.01 (Domestic Abuse Act).

(b) An individual is disqualified under section 245C.14 if less than seven years has
passed since a determination or disposition of the individual's:

(1) failure to make required reports under section 626.556, subdivision 3, or
626.557, subdivision 3, for incidents in which: (i) the final disposition under section
626.556 or 626.557 was substantiated maltreatment, and (ii) the maltreatment was
recurring or serious; or

(2) substantiated serious or recurring maltreatment of a minor under section 626.556,
a vulnerable adult under section 626.557, or serious or recurring maltreatment in any other
state, the elements of which are substantially similar to the elements of maltreatment under
section 626.556 or 626.557 for which: (i) there is a preponderance of evidence that the
maltreatment occurred, and (ii) the subject was responsible for the maltreatment.

(c) An individual is disqualified under section 245C.14 if less than seven years has
passed since the individual's aiding and abetting, attempt, or conspiracy to commit any
of the offenses listed in paragraphs (a) and (b), as each of these offenses is defined in
Minnesota Statutes.

(d) An individual is disqualified under section 245C.14 if less than seven years has
passed since the discharge of the sentence imposed for an offense in any other state or
country, the elements of which are substantially similar to the elements of any of the
offenses listed in paragraphs (a) and (b).

(e) When a disqualification is based on a judicial determination other than a
conviction, the disqualification period begins from the date of the court order. When a
disqualification is based on an admission, the disqualification period begins from the
date of an admission in court. new text begin When a disqualification is based on an Alford Plea, the
disqualification period begins from the date the Alford Plea is entered in court. new text end When
a disqualification is based on a preponderance of evidence of a disqualifying act, the
disqualification date begins from the date of the dismissal, the date of discharge of the
sentence imposed for a conviction for a disqualifying crime of similar elements, or the
date of the incident, whichever occurs last.

(f) An individual is disqualified under section 245C.14 if less than seven years has
passed since the individual was disqualified under section 256.98, subdivision 8.

Sec. 16.

Minnesota Statutes 2008, section 245C.22, subdivision 7, is amended to read:

Subd. 7.

Classification of certain data.

(a) Notwithstanding section 13.46, upon
setting aside a disqualification under this section, the identity of the disqualified individual
who received the set-aside and the individual's disqualifying characteristics are public
data if the set-aside was:

(1) for any disqualifying characteristic under section 245C.15, when the set-aside
relates to a child care center or a family child care provider licensed under chapter 245A; or

(2) for a disqualifying characteristic under section 245C.15, subdivision 2.

(b) Notwithstanding section 13.46, upon granting a variance to a license holder
under section 245C.30, the identity of the disqualified individual who is the subject of
the variance, the individual's disqualifying characteristics under section 245C.15, and the
terms of the variance are public data, when the variance:

(1) is issued to a child care center or a family child care provider licensed under
chapter 245A; or

(2) relates to an individual with a disqualifying characteristic under section 245C.15,
subdivision 2.

(c) The identity of a disqualified individual and the reason for disqualification
remain private data when:

(1) a disqualification is not set aside and no variance is granted new text begin , except as provided
under section 13.46, subdivision 4 new text end ;

(2) the data are not public under paragraph (a) or (b);

(3) the disqualification is rescinded because the information relied upon to disqualify
the individual is incorrect; or

(4) the disqualification relates to a license to provide relative child foster care.
As used in this clause, "relative" has the meaning given it under section 260C.007,
subdivision 27.

(d) Licensed family child care providers and child care centers must provide notices
as required under section 245C.301.

(e) Notwithstanding paragraphs (a) and (b), the identity of household members who
are the subject of a disqualification related set-aside or variance is not public data if:

(1) the household member resides in the residence where the family child care is
provided;

(2) the subject of the set-aside or variance is under the age of 18 years; and

(3) the set-aside or variance only relates to a disqualification under section 245C.15,
subdivision 4, for a misdemeanor-level theft crime as defined in section 609.52.

Sec. 17.

Minnesota Statutes 2008, section 245C.24, subdivision 2, is amended to read:

Subd. 2.

Permanent bar to set aside a disqualification.

(a) Except as provided in
paragraph (b), the commissioner may not set aside the disqualification of any individual
disqualified pursuant to this chapter, regardless of how much time has passed, if the
individual was disqualified for a crime or conduct listed in section 245C.15, subdivision 1.

(b) For an individual in the chemical dependency or corrections field who was
disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and whose
disqualification was set aside prior to July 1, 2005, the commissioner must consider
granting a variance pursuant to section 245C.30 for the license holder for a program
dealing primarily with adults. A request for reconsideration evaluated under this paragraph
must include a letter of recommendation from the license holder that was subject to the
prior set-aside decision addressing the individual's quality of care to children or vulnerable
adults and the circumstances of the individual's departure from that service.

new text begin (c) When a licensed foster care provider adopts an individual who had received
foster care services from the provider for over a year, and the adopted individual is
required to receive a background study under section 245C.03, subdivision 1, paragraph
(a), clause (2) or (6), the commissioner may grant a variance to the license holder under
section 245C.30 to permit the adopted individual with a permanent disqualification
to remain affiliated with the license holder under the conditions of the variance when
the variance is recommended by the county of responsibility for each of the remaining
individuals in placement in the home and the licensing agency for the home.
new text end

Sec. 18.

Minnesota Statutes 2008, section 245C.24, subdivision 3, is amended to read:

Subd. 3.

Ten-year bar to set aside disqualification.

(a) The commissioner may
not set aside the disqualification of an individual in connection with a license to provide
family child care for children, foster care for children in the provider's home, or foster
care or day care services for adults in the provider's home if: (1) less than ten years
has passed since the discharge of the sentence imposed, if any, for the offense; or (2)
when disqualified based on a preponderance of evidence determination under section
245C.14, subdivision 1, paragraph (a), clause (2), or an admission under section 245C.14,
subdivision 1, paragraph (a), clause (1), and less than ten years has passed since the
individual committed the act or admitted to committing the act, whichever is later; and
(3) the individual has committed a violation of any of the following offenses: sections
609.165 (felon ineligible to possess firearm); criminal vehicular homicide new text begin or criminal
vehicular operation causing death new text end under 609.21 (criminal vehicular homicide and injury);
609.215 (aiding suicide or aiding attempted suicide); felony violations under 609.223 or
609.2231 (assault in the third or fourth degree); 609.229 (crimes committed for benefit
of a gang); 609.713 (terroristic threats); 609.235 (use of drugs to injure or to facilitate
crime); 609.24 (simple robbery); 609.255 (false imprisonment); 609.562 (arson in the
second degree); 609.71 (riot); 609.498, subdivision 1 or 1b (aggravated first-degree or
first-degree tampering with a witness); burglary in the first or second degree under 609.582
(burglary); 609.66 (dangerous weapon); 609.665 (spring guns); 609.67 (machine guns
and short-barreled shotguns); 609.749, subdivision 2 (gross misdemeanor harassment;
stalking); 152.021 or 152.022 (controlled substance crime in the first or second degree);
152.023, subdivision 1, clause (3) or (4) or subdivision 2, clause (4) (controlled substance
crime in the third degree); 152.024, subdivision 1, clause (2), (3), or (4) (controlled
substance crime in the fourth degree); 609.224, subdivision 2, paragraph (c) (fifth-degree
assault by a caregiver against a vulnerable adult); 609.23 (mistreatment of persons
confined); 609.231 (mistreatment of residents or patients); 609.2325 (criminal abuse of a
vulnerable adult); 609.233 (criminal neglect of a vulnerable adult); 609.2335 (financial
exploitation of a vulnerable adult); 609.234 (failure to report); 609.265 (abduction);
609.2664 to 609.2665 (manslaughter of an unborn child in the first or second degree);
609.267 to 609.2672 (assault of an unborn child in the first, second, or third degree);
609.268 (injury or death of an unborn child in the commission of a crime); repeat offenses
under 617.23 (indecent exposure); 617.293 (disseminating or displaying harmful material
to minors); a felony-level conviction involving alcohol or drug use, a gross misdemeanor
offense under 609.324, subdivision 1 (other prohibited acts); a gross misdemeanor offense
under 609.378 (neglect or endangerment of a child); a gross misdemeanor offense under
609.377 (malicious punishment of a child); 609.72, subdivision 3 (disorderly conduct
against a vulnerable adult); or 624.713 (certain persons not to possess firearms).

(b) The commissioner may not set aside the disqualification of an individual if
less than ten years have passed since the individual's aiding and abetting, attempt, or
conspiracy to commit any of the offenses listed in paragraph (a) as each of these offenses
is defined in Minnesota Statutes.

(c) The commissioner may not set aside the disqualification of an individual if less
than ten years have passed since the discharge of the sentence imposed for an offense in
any other state or country, the elements of which are substantially similar to the elements
of any of the offenses listed in paragraph (a).

Sec. 19.

Minnesota Statutes 2008, section 245C.25, is amended to read:

245C.25 CONSOLIDATED RECONSIDERATION OF MALTREATMENT
DETERMINATION AND DISQUALIFICATION.

(a) If an individual is disqualified on the basis of a determination of maltreatment
under section 626.556 or 626.557, which was serious or recurring, and the individual
requests reconsideration of the maltreatment determination under section 626.556,
subdivision 10i, or 626.557, subdivision 9d, and also requests reconsideration of
the disqualification under section 245C.21, the commissioner shall consolidate the
reconsideration of the maltreatment determination and the disqualification into a single
reconsideration.

(b) For maltreatment and disqualification determinations made by county agencies,
the county agency shall conduct the consolidated reconsideration. If the county agency
has disqualified an individual on multiple bases, one of which is a county maltreatment
determination for which the individual has a right to request reconsideration, the county
shall conduct the reconsideration of all disqualifications.

(c) If the county has previously conducted a consolidated reconsideration under
paragraph (b) of a maltreatment determination and a disqualification based on serious or
recurring maltreatment, and the county subsequently disqualifies the individual based
on that determination, the county shall conduct the reconsideration of the subsequent
disqualification. The scope of the subsequent disqualification shall be limited to whether
the individual poses a risk of harm in accordance with section 245C.22, subdivision 4. new text begin If
the commissioner subsequently disqualifies the individual in connection with a child foster
care license based on the county's previous maltreatment determination, the commissioner
shall conduct the reconsideration of the subsequent disqualification. new text end

Sec. 20.

Minnesota Statutes 2008, section 245C.27, subdivision 1, is amended to read:

Subdivision 1.

Fair hearing when disqualification is not set aside.

(a) If the
commissioner does not set aside a disqualification of an individual under section
245C.22 who is disqualified on the basis of a preponderance of evidence that the
individual committed an act or acts that meet the definition of any of the crimes listed in
section 245C.15; for a determination under section 626.556 or 626.557 of substantiated
maltreatment that was serious or recurring under section 245C.15; or for failure to make
required reports under section 626.556, subdivision 3; or 626.557, subdivision 3, pursuant
to section 245C.15, subdivision 4, paragraph (b), clause (1), the individual may request
a fair hearing under section 256.045, unless the disqualification is deemed conclusive
under section 245C.29.

(b) The fair hearing is the only administrative appeal of the final agency
determination for purposes of appeal by the disqualified individual. The disqualified
individual does not have the right to challenge the accuracy and completeness of data
under section 13.04.

(c) Except as provided under paragraph (e), if the individual was disqualified
based on a conviction deleted text begin or deleted text end new text begin of, new text end admission to new text begin , or Alford Plea to new text end any crimes listed in section
245C.15, subdivisions 1 to 4, or for a disqualification under section 256.98, subdivision
8, the reconsideration decision under section 245C.22 is the final agency determination
for purposes of appeal by the disqualified individual and is not subject to a hearing under
section 256.045. If the individual was disqualified based on a judicial determination, that
determination is treated the same as a conviction for purposes of appeal.

(d) This subdivision does not apply to a public employee's appeal of a disqualification
under section 245C.28, subdivision 3.

(e) Notwithstanding paragraph (c), if the commissioner does not set aside a
disqualification of an individual who was disqualified based on both a preponderance
of evidence and a conviction or admission, the individual may request a fair hearing
under section 256.045, unless the disqualifications are deemed conclusive under section
245C.29. The scope of the hearing conducted under section 256.045 with regard to the
disqualification based on a conviction or admission shall be limited solely to whether the
individual poses a risk of harm, according to section 256.045, subdivision 3b. In this case,
the reconsideration decision under section 245C.22 is not the final agency decision for
purposes of appeal by the disqualified individual.

Sec. 21.

Minnesota Statutes 2008, section 256.045, subdivision 3, is amended to read:

Subd. 3.

State agency hearings.

(a) State agency hearings are available for the
following:

(1) any person applying for, receiving or having received public assistance, medical
care, or a program of social services granted by the state agency or a county agency or
the federal Food Stamp Act whose application for assistance is denied, not acted upon
with reasonable promptness, or whose assistance is suspended, reduced, terminated, or
claimed to have been incorrectly paid;

(2) any patient or relative aggrieved by an order of the commissioner under section
252.27;

(3) a party aggrieved by a ruling of a prepaid health plan;

(4) except as provided under chapter 245C, any individual or facility determined by
a lead agency to have maltreated a vulnerable adult under section 626.557 after they have
exercised their right to administrative reconsideration under section 626.557;

(5) any person whose claim for foster care payment according to a placement of the
child resulting from a child protection assessment under section 626.556 is denied or not
acted upon with reasonable promptness, regardless of funding source;

(6) any person to whom a right of appeal according to this section is given by other
provision of law;

(7) an applicant aggrieved by an adverse decision to an application for a hardship
waiver under section 256B.15;

(8) an applicant aggrieved by an adverse decision to an application or redetermination
for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;

(9) except as provided under chapter 245A, an individual or facility determined
to have maltreated a minor under section 626.556, after the individual or facility has
exercised the right to administrative reconsideration under section 626.556; or

(10) except as provided under chapter 245C, an individual disqualified under
sections 245C.14 and 245C.15, new text begin which has not been set aside under sections 245C.22
and 245C.23, new text end on the basis of serious or recurring maltreatment; a preponderance of the
evidence that the individual has committed an act or acts that meet the definition of any of
the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports
required under section 626.556, subdivision 3, or 626.557, subdivision 3. Hearings
regarding a maltreatment determination under clause (4) or (9) and a disqualification under
this clause in which the basis for a disqualification is serious or recurring maltreatment,
which has not been set aside under sections 245C.22 and 245C.23, shall be consolidated
into a single fair hearing. In such cases, the scope of review by the human services referee
shall include both the maltreatment determination and the disqualification. The failure to
exercise the right to an administrative reconsideration shall not be a bar to a hearing under
this section if federal law provides an individual the right to a hearing to dispute a finding
of maltreatment. Individuals and organizations specified in this section may contest the
specified action, decision, or final disposition before the state agency by submitting a
written request for a hearing to the state agency within 30 days after receiving written
notice of the action, decision, or final disposition, or within 90 days of such written notice
if the applicant, recipient, patient, or relative shows good cause why the request was
not submitted within the 30-day time limit.

(b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or
(10), is the only administrative appeal to the final agency determination specifically,
including a challenge to the accuracy and completeness of data under section 13.04.
Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment
that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing
homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a
contested case proceeding under the provisions of chapter 14. Hearings requested under
paragraph (a), clause (9), apply only to incidents of maltreatment that occur on or after
July 1, 1997. A hearing for an individual or facility under paragraph (a), clause (9), is
only available when there is no juvenile court or adult criminal action pending. If such
action is filed in either court while an administrative review is pending, the administrative
review must be suspended until the judicial actions are completed. If the juvenile court
action or criminal charge is dismissed or the criminal action overturned, the matter may be
considered in an administrative hearing.

(c) For purposes of this section, bargaining unit grievance procedures are not an
administrative appeal.

(d) The scope of hearings involving claims to foster care payments under paragraph
(a), clause (5), shall be limited to the issue of whether the county is legally responsible
for a child's placement under court order or voluntary placement agreement and, if so,
the correct amount of foster care payment to be made on the child's behalf and shall not
include review of the propriety of the county's child protection determination or child
placement decision.

(e) A vendor of medical care as defined in section 256B.02, subdivision 7, or a
vendor under contract with a county agency to provide social services is not a party and
may not request a hearing under this section, except if assisting a recipient as provided in
subdivision 4.

(f) An applicant or recipient is not entitled to receive social services beyond the
services prescribed under chapter 256M or other social services the person is eligible
for under state law.

(g) The commissioner may summarily affirm the county or state agency's proposed
action without a hearing when the sole issue is an automatic change due to a change in
state or federal law.

Sec. 22.

Minnesota Statutes 2008, section 256.045, subdivision 3b, is amended to read:

Subd. 3b.

Standard of evidence for maltreatment and disqualification hearings.

(a) The state human services referee shall determine that maltreatment has occurred if a
preponderance of evidence exists to support the final disposition under sections 626.556
and 626.557. For purposes of hearings regarding disqualification, the state human services
referee shall affirm the proposed disqualification in an appeal under subdivision 3,
paragraph (a), clause (9), if a preponderance of the evidence shows the individual has:

(1) committed maltreatment under section 626.556 or 626.557, which is serious or
recurring;

(2) committed an act or acts meeting the definition of any of the crimes listed in
section 245C.15, subdivisions 1 to 4; or

(3) failed to make required reports under section 626.556 or 626.557, for incidents
in which the final disposition under section 626.556 or 626.557 was substantiated
maltreatment that was serious or recurring.

(b) If the disqualification is affirmed, the state human services referee shall
determine whether the individual poses a risk of harm in accordance with the requirements
of section deleted text begin 245C.16 deleted text end new text begin 245C.22 new text end , and whether the disqualification should be set aside or not set
aside. In determining whether the disqualification should be set aside, the human services
referee shall consider all of the characteristics that cause the individual to be disqualified,
including those characteristics that were not subject to review under paragraph (a), in
order to determine whether the individual poses a risk of harm. A decision to set aside
a disqualification that is the subject of the hearing constitutes a determination that the
individual does not pose a risk of harm and that the individual may provide direct contact
services in the individual program specified in the set aside. If a determination that the
information relied upon to disqualify an individual was correct and is conclusive under
section 245C.29, and the individual is subsequently disqualified under section 245C.14,
the individual has a right to again request reconsideration on the risk of harm under section
245C.21. Subsequent determinations regarding risk of harm are not subject to another
hearing under this section.

(c) The state human services referee shall recommend an order to the commissioner
of health, education, or human services, as applicable, who shall issue a final order. The
commissioner shall affirm, reverse, or modify the final disposition. Any order of the
commissioner issued in accordance with this subdivision is conclusive upon the parties
unless appeal is taken in the manner provided in subdivision 7. In any licensing appeal
under chapters 245A and 245C and sections 144.50 to 144.58 and 144A.02 to 144A.46,
the commissioner's determination as to maltreatment is conclusive, as provided under
section 245C.29.

Sec. 23.

Minnesota Statutes 2008, 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) "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 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.

(b) "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 substantial child endangerment, and for reports of maltreatment in
facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to
144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and
13, and 124D.10; or in a nonlicensed personal care provider association as defined in
sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.

(c) "Substantial child endangerment" means a person responsible for a child's care,
and in the case of sexual abuse includes a person who has a significant relationship to the
child as defined in section 609.341, or a person in a position of authority as defined in
section 609.341, who 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) sexual abuse as defined in paragraph (d);

(3) abandonment under section 260C.301, subdivision 2;

(4) neglect as defined in paragraph (f), 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;

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

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

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

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

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

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

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

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

(13) parental behavior, status, or condition which mandates that the county attorney
file a termination of parental rights petition under section 260C.301, subdivision 3,
paragraph (a).

(d) "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. Sexual abuse includes
threatened sexual abuse.

(e) "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.

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

(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, or medical effects or developmental delays during the child's
first year of life that medically indicate prenatal exposure to a controlled substance;

(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; or

(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.

(g) "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 121A.67 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 that are done in anger or without regard to the
safety of the child:

(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) 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;

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

(10) 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.

(h) "Report" means any report received by the local welfare agency, police
department, county sheriff, or agency responsible for assessing or investigating
maltreatment pursuant to this section.

(i) "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 245B;

(2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and
124D.10; or

(3) a nonlicensed personal care provider organization as defined in sections 256B.04,
subdivision 16, and 256B.0625, subdivision 19a.

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

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

(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) "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.

(n) "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 (e), 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, 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; or

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

(o) 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.

(p) "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 of event.

Sec. 24.

Minnesota Statutes 2008, section 626.556, subdivision 10e, is amended to
read:

Subd. 10e.

Determinations.

(a) The local welfare agency shall conclude the family
assessment or the investigation within 45 days of the receipt of a report. The conclusion of
the assessment or investigation may be extended to permit the completion of a criminal
investigation or the receipt of expert information requested within 45 days of the receipt
of the report.

(b) After conducting a family assessment, the local welfare agency shall determine
whether services are needed to address the safety of the child and other family members
and the risk of subsequent maltreatment.

(c) After conducting an investigation, the local welfare agency shall make two
determinations: first, whether maltreatment has occurred; and second, whether child
protective services are needed.

(d) If the commissioner of education conducts an assessment or investigation,
the commissioner shall determine whether maltreatment occurred and what corrective
or protective action was taken by the school facility. If a determination is made that
maltreatment has occurred, the commissioner shall report to the employer, the school
board, and any appropriate licensing entity the determination that maltreatment occurred
and what corrective or protective action was taken by the school facility. In all other cases,
the commissioner shall inform the school board or employer that a report was received,
the subject of the report, the date of the initial report, the category of maltreatment alleged
as defined in paragraph (f), the fact that maltreatment was not determined, and a summary
of the specific reasons for the determination.

(e) When maltreatment is determined in an investigation involving a facility,
the investigating agency shall also determine whether the facility or individual was
responsible, or whether both the facility and the individual were responsible for the
maltreatment using the mitigating factors in paragraph (i). Determinations under this
subdivision must be made based on a preponderance of the evidence and are private data
on individuals or nonpublic data as maintained by the commissioner of education.

(f) For the purposes of this subdivision, "maltreatment" means any of the following
acts or omissions:

(1) physical abuse as defined in subdivision 2, paragraph (g);

(2) neglect as defined in subdivision 2, paragraph (f);

(3) sexual abuse as defined in subdivision 2, paragraph (d);

(4) mental injury as defined in subdivision 2, paragraph (m); or

(5) maltreatment of a child in a facility as defined in subdivision 2, paragraph (i).

(g) For the purposes of this subdivision, a determination that child protective
services are needed means that the local welfare agency has documented conditions
during the assessment or investigation sufficient to cause a child protection worker, as
defined in section 626.559, subdivision 1, to conclude that a child is at significant risk of
maltreatment if protective intervention is not provided and that the individuals responsible
for the child's care have not taken or are not likely to take actions to protect the child
from maltreatment or risk of maltreatment.

(h) This subdivision does not mean that maltreatment has occurred 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. However, if lack of medical care
may result in serious danger to the child's health, the local welfare agency may ensure
that necessary medical services are provided to the child.

(i) When determining whether the facility or individual is the responsible party, or
whether both the facility and the individual are responsible for determined maltreatment in
a facility, the investigating agency shall consider at least the following mitigating factors:

(1) whether the actions of the facility or the individual caregivers were according to,
and followed the terms of, an erroneous physician order, prescription, individual care plan,
or directive; however, this is not a mitigating factor when the facility or caregiver was
responsible for the issuance of the erroneous order, prescription, individual care plan, or
directive or knew or should have known of the errors and took no reasonable measures to
correct the defect before administering care;

(2) comparative responsibility between the facility, other caregivers, and
requirements placed upon an employee, including the facility's compliance with related
regulatory standards and the adequacy of facility policies and procedures, facility training,
an individual's participation in the training, the caregiver's supervision, and facility staffing
levels and the scope of the individual employee's authority and discretion; and

(3) whether the facility or individual followed professional standards in exercising
professional judgment.

(j) new text begin Notwithstanding paragraph (i), when maltreatment is determined to have been
committed by an individual who is also the facility license holder, both the individual and
the facility must be determined responsible for the maltreatment, and both the background
study disqualification standards under section 245C.15, subdivision 4, and the licensing
actions under sections 245A.06 or 245A.07 apply.
new text end

new text begin (k) new text end Individual counties may implement more detailed definitions or criteria that
indicate which allegations to investigate, as long as a county's policies are consistent
with the definitions in the statutes and rules and are approved by the county board. Each
local welfare agency shall periodically inform mandated reporters under subdivision 3
who work in the county of the definitions of maltreatment in the statutes and rules and any
additional definitions or criteria that have been approved by the county board.

Sec. 25.

Minnesota Statutes 2008, 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 assessing or 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. new text begin 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 assessing or 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. new text end The notice must also
include a certification that the information collection procedures under subdivision 10,
paragraphs (h), (i), and (j), 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. 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 or section
256.022. 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.

Sec. 26.

Minnesota Statutes 2008, section 626.557, subdivision 9c, is amended to read:

Subd. 9c.

Lead agency; notifications, dispositions, determinations.

(a) Upon
request of the reporter, the lead agency shall notify the reporter that it has received the
report, and provide information on the initial disposition of the report within five business
days of receipt of the report, provided that the notification will not endanger the vulnerable
adult or hamper the investigation.

(b) Upon conclusion of every investigation it conducts, the lead agency shall make a
final disposition as defined in section 626.5572, subdivision 8.

(c) When determining whether the facility or individual is the responsible party for
substantiated maltreatment or whether both the facility and the individual are responsible
for substantiated maltreatment, the lead agency shall consider at least the following
mitigating factors:

(1) whether the actions of the facility or the individual caregivers were in accordance
with, and followed the terms of, an erroneous physician order, prescription, resident
care plan, or directive. This is not a mitigating factor when the facility or caregiver is
responsible for the issuance of the erroneous order, prescription, plan, or directive or
knows or should have known of the errors and took no reasonable measures to correct the
defect before administering care;

(2) the comparative responsibility between the facility, other caregivers, and
requirements placed upon the employee, including but not limited to, the facility's
compliance with related regulatory standards and factors such as the adequacy of facility
policies and procedures, the adequacy of facility training, the adequacy of an individual's
participation in the training, the adequacy of caregiver supervision, the adequacy of facility
staffing levels, and a consideration of the scope of the individual employee's authority; and

(3) whether the facility or individual followed professional standards in exercising
professional judgment.

(d) new text begin When substantiated maltreatment is determined to have been committed by
an individual who is also the facility license holder, both the individual and the facility
must be determined responsible for the maltreatment, and both the background study
disqualification standards under section 245C.15, subdivision 4, and the licensing actions
under section 245A.06 or 245A.06 apply.
new text end

new text begin (e) new text end The lead agency shall complete its final disposition within 60 calendar days. If
the lead agency is unable to complete its final disposition within 60 calendar days, the lead
agency shall notify the following persons provided that the notification will not endanger
the vulnerable adult or hamper the investigation: (1) the vulnerable adult or the vulnerable
adult's legal guardian, when known, if the lead agency knows them to be aware of the
investigation; and (2) the facility, where applicable. The notice shall contain the reason for
the delay and the projected completion date. If the lead agency is unable to complete its
final disposition by a subsequent projected completion date, the lead agency shall again
notify the vulnerable adult or the vulnerable adult's legal guardian, when known if the lead
agency knows them to be aware of the investigation, and the facility, where applicable,
of the reason for the delay and the revised projected completion date provided that the
notification will not endanger the vulnerable adult or hamper the investigation. A lead
agency's inability to complete the final disposition within 60 calendar days or by any
projected completion date does not invalidate the final disposition.

deleted text begin (e) deleted text end new text begin (f) new text end Within ten calendar days of completing the final disposition, the lead agency
shall provide a copy of the public investigation memorandum under subdivision 12b,
paragraph (b), clause (1), when required to be completed under this section, to the
following persons: (1) the vulnerable adult, or the vulnerable adult's legal guardian, if
known unless the lead agency knows that the notification would endanger the well-being
of the vulnerable adult; (2) the reporter, if the reporter requested notification when making
the report, provided this notification would not endanger the well-being of the vulnerable
adult; (3) the alleged perpetrator, if known; (4) the facility; and (5) the ombudsman for
long-term care, or the ombudsman for mental health and developmental disabilities, as
appropriate.

deleted text begin (f) deleted text end new text begin (g) new text end The lead agency shall notify the vulnerable adult who is the subject of
the report or the vulnerable adult's legal guardian, if known, and any person or facility
determined to have maltreated a vulnerable adult, of their appeal or review rights under
this section or section 256.021.

deleted text begin (g) deleted text end new text begin (h) new text end The lead agency shall routinely provide investigation memoranda for
substantiated reports to the appropriate licensing boards. These reports must include
the names of substantiated perpetrators. The lead agency may not provide investigative
memoranda for inconclusive or false reports to the appropriate licensing boards unless the
lead agency's investigation gives reason to believe that there may have been a violation of
the applicable professional practice laws. If the investigation memorandum is provided
to a licensing board, the subject of the investigation memorandum shall be notified and
receive a summary of the investigative findings.

deleted text begin (h) deleted text end new text begin (i) new text end In order to avoid duplication, licensing boards shall consider the findings of
the lead agency in their investigations if they choose to investigate. This does not preclude
licensing boards from considering other information.

deleted text begin (i) deleted text end new text begin (j) new text end The lead agency must provide to the commissioner of human services its final
dispositions, including the names of all substantiated perpetrators. The commissioner of
human services shall establish records to retain the names of substantiated perpetrators.

Sec. 27.

Minnesota Statutes 2008, section 626.557, subdivision 12b, is amended to
read:

Subd. 12b.

Data management.

(a) In performing any of the duties of this section as
a lead agency, the county social service agency shall maintain appropriate records. Data
collected by the county social service agency under this section are welfare data under
section 13.46. Notwithstanding section 13.46, subdivision 1, paragraph (a), data under this
paragraph that are inactive investigative data on an individual who is a vendor of services
are private data on individuals, as defined in section 13.02. The identity of the reporter
may only be disclosed as provided in paragraph (c).

Data maintained by the common entry point are confidential data on individuals or
protected nonpublic data as defined in section 13.02. Notwithstanding section 138.163,
the common entry point shall destroy data three calendar years after date of receipt.

(b) The commissioners of health and human services shall prepare an investigation
memorandum for each report alleging maltreatment investigated under this section.
County social service agencies must maintain private data on individuals but are not
required to prepare an investigation memorandum. During an investigation by the
commissioner of health or the commissioner of human services, data collected under this
section are confidential data on individuals or protected nonpublic data as defined in
section 13.02. Upon completion of the investigation, the data are classified as provided in
clauses (1) to (3) and paragraph (c).

(1) The investigation memorandum must contain the following data, which are
public:

(i) the name of the facility investigated;

(ii) a statement of the nature of the alleged maltreatment;

(iii) pertinent information obtained from medical or other records reviewed;

(iv) the identity of the investigator;

(v) a summary of the investigation's findings;

(vi) statement of whether the report was found to be substantiated, inconclusive,
false, or that no determination will be made;

(vii) a statement of any action taken by the facility;

(viii) a statement of any action taken by the lead agency; and

(ix) when a lead agency's determination has substantiated maltreatment, a statement
of whether an individual, individuals, or a facility were responsible for the substantiated
maltreatment, if known.

The investigation memorandum must be written in a manner which protects the
identity of the reporter and of the vulnerable adult and may not contain the names or, to
the extent possible, data on individuals or private data listed in clause (2).

(2) Data on individuals collected and maintained in the investigation memorandum
are private data, including:

(i) the name of the vulnerable adult;

(ii) the identity of the individual alleged to be the perpetrator;

(iii) the identity of the individual substantiated as the perpetrator; and

(iv) the identity of all individuals interviewed as part of the investigation.

(3) Other data on individuals maintained as part of an investigation under this section
are private data on individuals upon completion of the investigation.

(c) new text begin After the assessment or investigation is completed, the name of the reporter
must be confidential. new text end The subject of the report may compel disclosure of the name of the
reporter only with the consent of the reporter or upon a written finding by a court that
the report was false and there is evidence that the report was made in bad faith. This
subdivision does not alter disclosure responsibilities or obligations under the Rules of
Criminal Procedure, except that where the identity of the reporter is relevant to a criminal
prosecution, the district court shall do an in-camera review prior to determining whether
to order disclosure of the identity of the reporter.

(d) Notwithstanding section 138.163, data maintained under this section by the
commissioners of health and human services must be destroyed under the following
schedule:

(1) data from reports determined to be false, two years after the finding was made;

(2) data from reports determined to be inconclusive, four years after the finding
was made;

(3) data from reports determined to be substantiated, seven years after the finding
was made; and

(4) data from reports which were not investigated by a lead agency and for which
there is no final disposition, two years from the date of the report.

(e) The commissioners of health and human services shall each annually report to
the legislature and the governor on the number and type of reports of alleged maltreatment
involving licensed facilities reported under this section, the number of those requiring
investigation under this section, and the resolution of those investigations. The report
shall identify:

(1) whether and where backlogs of cases result in a failure to conform with statutory
time frames;

(2) where adequate coverage requires additional appropriations and staffing; and

(3) any other trends that affect the safety of vulnerable adults.

(f) Each lead agency must have a record retention policy.

(g) Lead agencies, prosecuting authorities, and law enforcement agencies may
exchange not public data, as defined in section 13.02, if the agency or authority requesting
the data determines that the data are pertinent and necessary to the requesting agency in
initiating, furthering, or completing an investigation under this section. Data collected
under this section must be made available to prosecuting authorities and law enforcement
officials, local county agencies, and licensing agencies investigating the alleged
maltreatment under this section. The lead agency shall exchange not public data with the
vulnerable adult maltreatment review panel established in section 256.021 if the data are
pertinent and necessary for a review requested under that section. Upon completion of the
review, not public data received by the review panel must be returned to the lead agency.

(h) Each lead agency shall keep records of the length of time it takes to complete its
investigations.

(i) A lead agency may notify other affected parties and their authorized representative
if the agency has reason to believe maltreatment has occurred and determines the
information will safeguard the well-being of the affected parties or dispel widespread
rumor or unrest in the affected facility.

(j) Under any notification provision of this section, where federal law specifically
prohibits the disclosure of patient identifying information, a lead agency may not provide
any notice unless the vulnerable adult has consented to disclosure in a manner which
conforms to federal requirements.

Sec. 28.

Minnesota Statutes 2008, section 626.5572, subdivision 13, is amended to
read:

Subd. 13.

Lead agency.

"Lead agency" is the primary administrative agency
responsible for investigating reports made under section 626.557.

(a) The Department of Health is the lead agency for the facilities which are licensed
or are required to be licensed as hospitals, home care providers, nursing homes, residential
care homes, deleted text begin or deleted text end boarding care homes new text begin , or residential facilities that are also federally certified
as intermediate care facilities that serve people with developmental disabilities new text end .

(b) The Department of Human Services is the lead agency for the programs licensed
or required to be licensed as adult day care, adult foster care, programs for people with
developmental disabilities, mental health programs, new text begin or new text end chemical health programs deleted text begin , or
personal care provider organizations deleted text end .

(c) The county social service agency or its designee is the lead agency for all
other reports.