Key: (1) language to be deleted (2) new language
Laws of Minnesota 1987
CHAPTER 333-H.F.No. 1210
An act relating to human services; regulating the
licensure of programs for the care of children or of
adults with certain disabilities; providing penalties;
replacing the existing licensure law; amending
Minnesota Statutes 1986, sections 256D.01, by adding a
subdivision; and 256D.37, by adding a subdivision;
proposing coding for new law as Minnesota Statutes,
chapter 245A; repealing Minnesota Statutes 1986,
sections 245.781; 245.782; 245.783; 245.791; 245.792;
245.801; 245.802; 245.803; 245.804; 245.805; 245.811;
245.812; 245.88; 245.881; 245.882; 245.883; 245.884;
and 245.885.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. [245A.01] [CITATION.]
Sections 1 to 17 may be cited as the "human services
licensing act."
Sec. 2. [245A.02] [DEFINITIONS.]
Subdivision 1. [SCOPE.] The terms used in sections 1 to 17
have the meanings given them in this section.
Subd. 2. [ADULT.] "Adult" means a person who is 18 years
old or older and who:
(1) has mental illness, mental retardation or a related
condition, a physical handicap, or a functional impairment; or
(2) is chemically dependent or abuses chemicals.
Subd. 3. [APPLICANT.] "Applicant" means an individual,
corporation, partnership, voluntary association or other
organization that has applied for licensure under sections 1 to
17 and the rules of the commissioner.
Subd. 4. [CHILD.] "Child" means a person who has not
reached age 18.
Subd. 5. [COMMISSIONER.] "Commissioner" means the
commissioner of human services or the commissioner's designated
representative including county agencies and private agencies.
Subd. 6. [COUNTY AGENCY.] "County agency" means the agency
designated by the county board of commissioners, human service
boards, county welfare boards or multicounty welfare boards, or
departments where those have been established under the law.
Subd. 7. [FUNCTIONAL IMPAIRMENT.] For the purposes of
adult day care or adult foster care, "functional impairment"
means:
(1) a condition that is characterized by substantial
difficulty in carrying out one or more of the essential major
activities of daily living, such as caring for oneself,
performing manual tasks, walking, seeing, hearing, speaking,
breathing, learning, working; or
(2) a disorder of thought or mood that significantly
impairs judgment, behavior, capacity to recognize reality, or
ability to cope with the ordinary demands of life and that
requires support to maintain independence in the community.
Subd. 8. [LICENSE.] "License" means a certificate issued
by the commissioner authorizing the license holder to provide a
specified program for a specified period of time and in
accordance with the terms of the license and the rules of the
commissioner.
Subd. 9. [LICENSE HOLDER.] "License holder" means an
individual, corporation, partnership, voluntary association, or
other organization that is legally responsible for the operation
of the program and has been granted a license by the
commissioner under sections 1 to 17 and the rules of the
commissioner.
Subd. 10. [NONRESIDENTIAL PROGRAM.] "Nonresidential
program" means care, supervision, rehabilitation, training or
habilitation of a person provided outside the person's own home
and provided for fewer than 24 hours a day, including adult
day-care programs; a nursing home that receives public funds to
provide services for five or more persons whose primary
diagnosis is mental retardation or mental illness and who do not
have a significant physical or medical problem that necessitates
nursing home care; a nursing home or hospital that was licensed
by the commissioner on July 1, 1987, to provide a program for
persons with a physical handicap that is not the result of the
normal aging process and considered to be a chronic condition;
and chemical dependency or chemical abuse programs that are
located in a nursing home or hospital and receive public funds
for providing chemical abuse or chemical dependency treatment
services under chapter 254B. Nonresidential programs include
home and community-based services and semi-independent living
services for persons with mental retardation that are provided
in or outside of a person's own home.
Subd. 11. [PERSON.] "Person" means a child or adult as
defined in subdivisions 2 and 4.
Subd. 12. [PRIVATE AGENCY.] "Private agency" means an
individual, corporation, partnership, voluntary association or
other organization, other than a county agency, or a court with
jurisdiction, that places persons who cannot remain in their own
homes in residential programs, foster care, or adoptive homes.
Subd. 13. [INDIVIDUAL WHO IS RELATED.] "Individual who is
related" means a spouse, a parent, a stepparent, a stepbrother,
a stepsister, a niece, a nephew, an adoptive parent, a
grandparent, a sibling, an aunt, an uncle, or a legal guardian.
Subd. 14. [RESIDENTIAL PROGRAM.] "Residential program"
means a program that provides 24-hour-a-day care, supervision,
food, lodging, rehabilitation, training, education,
habilitation, or treatment outside a person's own home,
including a nursing home or hospital that receives public funds,
administered by the commissioner, to provide services for five
or more persons whose primary diagnosis is mental retardation or
mental illness and who do not have a significant physical or
medical problem that necessitates nursing home care; a nursing
home or hospital that was licensed by the commissioner on July
1, 1987, to provide a program for persons with a physical
handicap that is not the result of the normal aging process and
considered to be a chronic condition; and chemical dependency or
chemical abuse programs that are located in a hospital or
nursing home and receive public funds for providing chemical
abuse or chemical dependency treatment services under chapter
254B. Residential programs include home and community-based
services and semi-independent living services for persons with
mental retardation that are provided in or outside of a person's
own home.
Sec. 3. [245A.03] [WHO MUST BE LICENSED.]
Subdivision 1. [LICENSE REQUIRED.] Unless licensed by the
commissioner, an individual, corporation, partnership, voluntary
association or other organization must not:
(1) operate a residential or a nonresidential program;
(2) receive a child or adult for care, supervision, or
placement in foster care or adoption;
(3) help plan the placement of a child or adult in foster
care or adoption; or
(4) advertise residential or nonresidential program.
Subd. 2. [EXCLUSION FROM LICENSURE.] Sections 1 to 17 do
not apply to:
(1) residential or nonresidential programs that are
provided to a person by an individual who is related;
(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, mental retardation or a
related condition, a functional impairment, or a physical
handicap;
(4) sheltered workshops or work activity programs that are
certified by the commissioner of jobs and training;
(5) programs for children enrolled in kindergarten to the
12th grade and prekindergarten special education programs that
are operated by the commissioner of education or a legally
constituted local school board, or private schools that have
been approved under the rules of the commissioner of education;
(6) nonresidential programs 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 or
present on property that is contiguous with the physical
facility where the nonresidential program is provided;
(7) nursing homes or hospitals licensed by the commissioner
of health except as specified under section 2;
(8) board and lodge facilities licensed by the commissioner
of health that provide services for more than five persons whose
primary diagnosis is mental illness or mental retardation who
have refused services in a residential program;
(9) homes providing programs for persons placed there by 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
operate for fewer than 40 calendar days in a calendar year;
(12) programs not located in family or group family day
care homes whose primary purpose is to provide activities
outside of the regular school day for children age five and
older, until such time as appropriate rules have been adopted by
the commissioner;
(13) head start nonresidential programs which operate for
less than 31 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 mental retardation;
(15) family day care for nonhandicapped children provided
for a cumulative total of less than 30 days in any 12-month
period; or
(16) residential programs for persons with mental illness,
that are located in hospitals, until the commissioner adopts
appropriate rules.
Subd. 3. [UNLICENSED PROGRAMS.] (a) It is a misdemeanor
for an individual, corporation, partnership, voluntary
association, or other organization to provide a residential or
nonresidential program without a license and in willful
disregard of sections 1 to 17 unless the program is excluded
from licensure under subdivision 2.
(b) If, after receiving notice that a license is required,
the individual, corporation, partnership, voluntary association,
or other organization has failed to apply for a license, the
commissioner may ask the appropriate county attorney or the
attorney general to begin proceedings to secure a court order
against the continued operation of the program. The county
attorney and the attorney general have a duty to cooperate with
the commissioner.
Sec. 4. [245A.04] [APPLICATION PROCEDURES.]
Subdivision 1. [APPLICATION FOR LICENSURE.] An individual,
corporation, partnership, voluntary association or other
organization subject to licensure under section 3 must apply for
a license. The application must be made on the forms and in the
manner prescribed by the commissioner. The commissioner shall
provide the applicant with instruction in completing the
application and provide information about the rules and
requirements of other state agencies that affect the applicant.
The commissioner shall act on the application within 90
working days after a complete application and any required
reports have been received from other state agencies or
departments, counties, municipalities, or other political
subdivisions.
Subd. 2. [NOTIFICATION OF AFFECTED MUNICIPALITY.] The
commissioner must not issue a license without giving 30 calendar
days' written notice to the affected municipality or other
political subdivision unless the program is considered a
permitted single-family residential use under sections 12 and
15. The notification must be given before the first issuance of
a license and annually after that time if annual notification is
requested in writing by the affected municipality or other
political subdivision. State funds must not be made available
to or be spent by an agency or department of state, county, or
municipal government for payment to a residential or
nonresidential program licensed under sections 1 to 17 until the
provisions of this subdivision have been complied with in full.
The provisions of this subdivision shall not apply to programs
located in hospitals.
Subd. 3. [STUDY OF THE APPLICANT.] (a) Before issuing a
license, the commissioner shall conduct a study of the
applicant. The applicant, the bureau of criminal apprehension,
county attorneys, county sheriffs, county agencies, and local
chiefs of police, after notice to the subject of the data, shall
help with the study by giving the commissioner criminal
conviction data, arrest information, reports about abuse or
neglect of children or adults, and investigation results
available from local, state, and national criminal record
repositories, including the criminal justice data communications
network, about:
(1) the applicant;
(2) persons living in the household where the licensed
program will be provided;
(3) employees or contractors of the applicant who will have
direct contact with persons served by the program; and
(4) volunteers who have direct contact with persons served
by the program, if the contact is not directly supervised by the
individuals listed in clause (1) or (3).
The commissioner and agencies required to help conduct the
study may charge the applicant or the subject of the data a
reasonable fee for conducting the study.
(b) A study must meet the following minimum criteria:
(1) if the subject of the data has resided in the same
county for at least the past five years, the study must include
information from the county sheriff and the county attorney;
(2) if the subject of the data has resided in the state,
but not in the same county, for the past five years, the study
must include information from the agencies listed in clause (1)
and the bureau of criminal apprehension; and
(3) if the subject of the data has not resided in the state
for at least five years, the study must include information from
the agencies listed in clauses (1) and (2) and the national
criminal records repository and the state law enforcement
agencies in the states where the subject of the data has
maintained a residence during the past five years.
(c) An applicant's failure or refusal to cooperate with the
commissioner is reasonable cause to deny an application or
revoke or suspend a license. Failure or refusal of an
individual to cooperate with the study is just cause for denying
or terminating employment of the individual if the individual's
failure or refusal to cooperate could cause the applicant's
application to be denied or the license holder's license to be
immediately suspended, suspended, or revoked.
(d) The commissioner shall not consider an application to
be complete until all of the information required to be provided
under this subdivision has been received.
Subd. 4. [INSPECTIONS; WAIVER.] (a) Before issuing a
license, the commissioner shall conduct an inspection of the
program. The inspection must include but is not limited to:
(1) an inspection of the physical plant;
(2) an inspection of records and documents;
(3) an evaluation of the program by consumers of the
program; and
(4) observation of the program in operation.
For the purposes of this subdivision, "consumer" means a
person who receives the services of a licensed program, the
person's legal guardian, or the parent or individual having
legal custody of a child who receives the services of a licensed
program.
(b) The evaluation required in paragraph (a), clause (3) or
the observation in paragraph (a), clause (4) is not required
prior to issuing a provisional license under subdivision 7. If
the commissioner issues a provisional license under subdivision
7, these requirements must be completed within one year after
the issuance of a provisional license. The observation in
paragraph (a), clause (4) is not required if the commissioner
determines that the observation would hinder the persons
receiving services in benefitting from the program.
Subd. 5. [COMMISSIONER'S RIGHT OF ACCESS.] When the
commissioner is exercising the powers conferred by sections 1 to
16, the commissioner must be given access to the physical plant
and grounds where the program is provided, documents, 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 abuse, neglect, 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 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.
Subd. 6. [COMMISSIONER'S EVALUATION.] Before granting,
suspending, revoking, or making probationary a license, the
commissioner shall evaluate information gathered under this
section. The commissioner's evaluation shall consider facts,
conditions, or circumstances concerning the program's operation,
the well-being of persons served by the program, consumer
evaluations of the program, and information about the character
and qualifications of the personnel employed by the applicant or
license holder.
The commissioner shall evaluate the results of the study
required in subdivision 3 and determine whether a risk of harm
to the persons served by the program exists. In conducting this
evaluation, the commissioner shall apply the disqualification
standards set forth in rules adopted under this chapter. If any
rule currently does not include these disqualification
standards, the commissioner shall apply the standards in section
364.03, subdivision 2 until the rule is revised to include
disqualification standards. The commissioner shall revise all
rules authorized by this chapter to include disqualification
standards. The provisions of chapter 364 do not apply to
applicants or licenseholders governed by sections 1 to 17 except
as provided in this subdivision.
Subd. 7. [ISSUANCE OF A LICENSE; PROVISIONAL LICENSE.] (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 a provisional license for a
period not to exceed one year 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.
A provisional license must not be issued except at the time that
a license is first issued to an applicant.
A license shall not be transferable to another individual,
corporation, partnership, voluntary association or other
organization, or to another location. 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.
Subd. 8. [HOSPITAL INSPECTIONS.] Licensing authority
granted under this section shall not modify the presumption
regarding routine hospital inspections under section 144.55,
subdivision 4.
Sec. 5. [245A.05] [DENIAL OF APPLICATION.]
An applicant whose application has been denied by the
commissioner must be given notice of the denial. Notice must be
given by certified mail. 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. The
applicant may appeal the denial by notifying the commissioner in
writing by certified mail within 20 calendar days after
receiving notice that the application was denied. Section 8
applies to hearings held to appeal the commissioner's denial of
an application.
Sec. 6. [245A.06] [CORRECTION ORDER AND FINES.]
Subdivision 1. [CONTENTS OF CORRECTION ORDERS.] If the
commissioner finds that the applicant or license holder has
failed to comply with an applicable law or rule and this failure
does not imminently endanger the health, safety, or rights of
the persons served by the program, the commissioner may issue a
correction order to the applicant or license holder. The
correction order must state:
(1) the conditions that constitute a violation of the law
or rule;
(2) the specific law or rule violated; and
(3) the time allowed to correct each violation.
Subd. 2. [RECONSIDERATION OF CORRECTION ORDERS.] If the
applicant or license holder believes that the contents of the
commissioner's correction order are in error, the applicant or
license holder may ask the department of human services to
reconsider the parts of the correction order that are alleged to
be in error. The request for reconsideration must be in
writing, delivered by certified mail, and:
(1) specify the parts of the correction order that are
alleged to be in error;
(2) explain why they are in error; and
(3) include documentation to support the allegation of
error.
A request for reconsideration does not stay any provisions
or requirements of the correction order. The commissioner shall
respond to requests made under this subdivision within 15
working days after receipt of the request for reconsideration.
The commissioner's disposition of a request for reconsideration
is final and not subject to appeal under chapter 14.
Subd. 3. [FAILURE TO COMPLY.] If upon reinspection, the
commissioner finds that the applicant or license holder has not
corrected the violations specified in the correction order, the
commissioner may order a fine. This section does not prohibit
the commissioner from seeking a court order, denying an
application, or suspending, revoking, or making probationary the
license in addition to ordering a fine.
Subd. 4. [NOTICE OF FINE; APPEAL.] A license holder who is
ordered to pay a fine must be notified of the order by certified
mail. 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 fine was ordered and must
inform the license holder of the right to a contested case
hearing under chapter 14. The license holder may appeal the
order to forfeit a fine by notifying the commissioner by
certified mail within 15 calendar days after receiving the
order. A timely appeal shall stay forfeiture of the fine until
the commissioner issues a final order under section 8,
subdivision 5.
Subd. 5. [FORFEITURE OF FINES.] The license holder shall
pay the fines assessed within 15 calendar days of receipt of
notice of the commissioner's order. If the license holder fails
to fully comply with the order, the commissioner shall 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.
Subd. 6. [AMOUNT OF FINES.] Until the commissioner adopts
one or more schedules of fines, fines shall be assessed as
follows:
(1) the license holder shall forfeit $1,000 for each
occurrence of violation of law or rule prohibiting the
maltreatment of children or the abuse, neglect, or exploitation
of vulnerable adults, including but not limited to corporal
punishment, illegal or unauthorized use of physical, mechanical,
or chemical restraints, and illegal or unauthorized use of
aversive or deprivation procedures;
(2) 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, except
that the holder of a family or group family day care license
shall forfeit $100 for a violation under this clause; and
(3) the license holder shall forfeit $100 for each
occurrence of a violation of law or rule other than those
included in clauses (1) and (2), except that the holder of a
family or group family day care license shall forfeit $50 for a
violation under this clause.
For the purposes of this section, "occurrence" means each
calendar day or part of a day that a violation continues to
exist after the date set for correction in the commissioner's
correction order.
Sec. 7. [245A.07] [SANCTIONS.]
Subdivision 1. [SANCTIONS AVAILABLE.] In addition to
ordering forfeiture of fines, the commissioner may propose to
suspend, revoke, or make probationary the license 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.
Subd. 2. [IMMEDIATE SUSPENSION IN CASES OF IMMINENT DANGER
TO HEALTH, SAFETY, OR RIGHTS.] If the license holder's failure
to comply with applicable law or rule has placed the health,
safety, or rights of persons served by the program in imminent
danger, the commissioner shall act immediately to suspend the
license. No state funds shall be made available or be expended
by any agency or department of state, county, or municipal
government for use by a license holder regulated under sections
1 to 17 while a license is under immediate suspension. A notice
stating the reasons for the immediate suspension and informing
the license holder of the right to a contested case hearing
under chapter 14 must be delivered by personal service to the
address shown on the application or the last known address of
the license holder. The license holder may appeal an order
immediately suspending a license by notifying the commissioner
in writing by certified mail within five calendar days after
receiving notice that the license has been immediately
suspended. A license holder shall discontinue operation of the
program upon receipt of the commissioner's order to immediately
suspend the license.
Subd. 3. [SUSPENSION, REVOCATION, PROBATION.] The
commissioner may suspend, revoke, or make probationary a license
if a license holder fails to comply fully with applicable laws
or rules. A license holder who has had a license suspended,
revoked, or made probationary must be given notice of the action
by certified mail. 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 made probationary and must inform the
license holder of the right to a contested case hearing under
chapter 14. The license holder may appeal an order suspending,
revoking, or making a license probationary by notifying the
commissioner in writing by certified mail within ten calendar
days after receiving notice that the license has been suspended,
revoked, or made probationary.
Sec. 8. [245A.08] [HEARINGS.]
Subdivision 1. [RECEIPT OF APPEAL; CONDUCT OF
HEARING.] Upon receiving a timely appeal or petition pursuant to
sections 5 to 7, the commissioner shall issue a notice of and
order for hearing to the appellant under chapter 14.
Subd. 2. [CONDUCT OF HEARINGS.] At any hearing provided
for by sections 5 to 7, the appellant may be represented by
counsel and has the right to call, examine, and cross-examine
witnesses. The administrative law judge may require the
presence of witnesses and evidence by subpoena on behalf of any
party.
Subd. 3. [BURDEN OF PROOF.] (a) At a hearing regarding
suspension, immediate suspension, revocation, or making
probationary a license for family day care or foster care, the
commissioner may demonstrate reasonable cause for action taken
by submitting statements, reports, or affidavits to substantiate
the allegations that the license holder failed to comply fully
with applicable law or rule. If the commissioner demonstrates
that reasonable cause existed, the burden of proof in hearings
involving suspension, immediate suspension, revocation, or
making probationary a family day care or foster care license
shifts to the license holder to demonstrate by a preponderance
of the evidence that the license holder was in full compliance
with those laws or rules that the commissioner alleges the
license holder violated, at the time that the commissioner
alleges the violations of law or rules occurred.
(b) At a hearing on denial of an application, the applicant
bears the burden of proof to demonstrate by a preponderance of
the evidence that the appellant has complied fully with sections
1 to 16 and other applicable law or rule and that the
application should be approved and a license granted.
(c) At all other hearings under this section, the
commissioner bears the burden of proof to demonstrate, by a
preponderance of the evidence, that the violations of law or
rule alleged by the commissioner occurred.
Subd. 4. [RECOMMENDATION OF ADMINISTRATIVE LAW JUDGE.] The
administrative law judge shall recommend whether or not the
commissioner's order should be affirmed. The recommendations
must be consistent with sections 1 to 17 and the rules of the
commissioner. The recommendations must be in writing and
accompanied by findings of fact and conclusions and must be
mailed to the parties by certified mail to their last known
addresses as shown on the license or application.
Subd. 5. [NOTICE OF THE COMMISSIONER'S FINAL ORDER.] After
considering the findings of fact, conclusions, and
recommendations of the administrative law judge, the
commissioner shall issue a final order. The commissioner shall
consider, but shall not be bound by, the recommendations of the
administrative law judge. The appellant must be notified of the
commissioner's final order as required by chapter 14. The
notice must also contain information about the appellant's
rights under chapter 14. The institution of proceedings for
judicial review of the commissioner's final order shall not stay
the enforcement of the final order except as provided in section
14.65. A license holder whose license has been revoked because
of noncompliance with applicable law or rule must not be granted
a license for five years following the revocation.
Sec. 9. [245A.09] [RULES.]
Subdivision 1. [COMMISSIONER'S AUTHORITY.] The
commissioner shall adopt rules under chapter 14 to govern the
operation, maintenance, and licensure of programs subject to
licensure under sections 1 to 17. The commissioner shall not
adopt any rules that are inconsistent with or duplicative of
existing state or federal regulations. Nothing in this
subdivision shall be construed to prohibit the commissioner from
incorporating existing state or federal regulations or
accreditation standards by reference.
Subd. 2. [STANDARDS AND REGULATORY METHODS.] This
subdivision applies to rules governing sections 1 to 17 that are
adopted after July 1, 1987. As appropriate for each type of
license:
(a) The commissioner shall give preference in rule to
standards that describe program outcomes and the practices that
have been shown to result in the desired program outcomes.
(b) The rules may include model program standards for each
type of program licensed by the commissioner.
(c) The rules shall include basic licensing standards
governing licensure of each type of program licensed by the
commissioner. The basic licensing standards must be met by all
applicants and license holders. Basic licensing standards must
include, but are not limited to:
(1) standards for adequate staff that take into account the
age distribution and severity of handicap of persons served by
the program;
(2) safety standards that take into account the size and
conditions of the physical plant and studies of fire safety
including studies of the interaction between fire detection
factors, fire spread factors, and evacuation factors in case of
a fire;
(3) standards for program services that describe, when
appropriate, adequate levels of shelter, nutrition, planned
activities, materials, and qualifications of individuals
responsible for administering and delivering program services;
(4) standards that describe the characteristics of the
settings where program services are to be delivered; and
(5) health and sanitation standards.
Subd. 3. [REDUCTION OF FEES.] The commissioner may adopt
rules under subdivision 1 to provide for the reduction of fees
established under section 11 when a license holder substantially
exceeds the basic standards for licensure.
Subd. 4. [EVALUATION OF RULES.] For rules adopted under
this section after July 1, 1987, the commissioner shall evaluate
the effects of the rules within three years after the date of
adoption and at least once every five years thereafter. The
evaluation must include an assessment of any discrepancies
between the actual and intended effects of the rules,
identification of necessary revisions, if any, and a discussion
of the rules' effect on the availability and quality of licensed
programs. The commissioner shall consider the results of the
evaluation in amending and writing rules.
Subd. 5. [OTHER DUTIES OF THE COMMISSIONER.] For rules
adopted after July 1, 1987, the commissioner shall:
(1) summarize the rules in language understandable to the
general public and inform license holders and applicants where
they may obtain a copy of the rules and the summary;
(2) develop and provide each applicant with information
describing the services offered to applicants by the
commissioner and explaining the penalties for operating an
unlicensed program or failing to fully comply with the
commissioner's correction orders or applicable laws or rules;
(3) upon request, interpret rules for applicants and
license holders; and
(4) take measures to ensure that rules are enforced
uniformly throughout the state.
Subd. 6. [CONSULTATION WITH AFFECTED PARTIES.] In
developing rules, the commissioner shall request and receive
consultation from: other state departments and agencies;
counties and other affected political subdivisions that reflect
the diversity of political subdivisions affected by the rule;
persons and relatives of persons using the program governed by
the rule; advocacy groups; and representatives of license
holders affected by the rule. In choosing parties for
consultation, the commissioner shall choose individuals and
representatives of groups that reflect a cross section of urban,
suburban, and rural areas of the state.
Subd. 7. [REGULATORY METHODS.] (a) Where appropriate and
feasible the commissioner shall identify and implement
alternative methods of regulation and enforcement to the extent
authorized in this subdivision. These methods shall include:
(1) expansion of the types and categories of licenses that
may be granted;
(2) when the standards of an independent accreditation body
have been shown to predict compliance with the rules, the
commissioner shall consider compliance with the accreditation
standards to be equivalent to partial compliance with the rules;
and
(3) use of an abbreviated inspection that employs key
standards that have been shown to predict full compliance with
the rules.
If the commissioner determines that the methods in clause
(2) or (3) can be used in licensing a program, the commissioner
may reduce any fee set under section 11 by up to 50 percent.
(b) The commissioner shall work with the commissioners of
health, public safety, administration, and education in
consolidating duplicative licensing and certification rules and
standards if the commissioner determines that consolidation is
administratively feasible, would significantly reduce the cost
of licensing, and would not reduce the protection given to
persons receiving services in licensed programs. Where
administratively feasible and appropriate, the commissioner
shall work with the commissioners of health, public safety,
administration, and education in conducting joint agency
inspections of programs.
(c) The commissioner shall work with the commissioners of
health, public safety, administration, and education in
establishing a single point of application for applicants who
are required to obtain concurrent licensure from more than one
of the commissioners listed in this clause.
(d) The commissioner may specify in rule periods of
licensure up to two years.
Sec. 10. [245A.095] [REVIEW OF RULES FOR PROGRAMS SERVING
PERSONS WITH MENTAL ILLNESSES.]
Subdivision 1. Residential programs for five or more
persons with a mental illness must be licensed under sections 1
to 17. To assure that this requirement is met, the commissioner
of health, in cooperation with the commissioner of human
services, shall monitor licensed boarding care, board and
lodging, and supervised living facilities.
Subd. 2. [SPECIFIC REVIEW OF RULES.] The commissioner
shall:
(1) provide in rule for various levels of care to address
the residential treatment needs of persons with mental illness;
(2) review category I and II programs established in
Minnesota Rules, parts 9520.0500 to 9520.0690 to ensure that the
categories of programs provide a continuum of residential
service programs for persons with mental illness;
(3) provide in rule for a definition of the term
"treatment" as used in relation to persons with mental illness;
(4) adjust funding mechanisms by rule as needed to reflect
the requirements established by rule for services being provided;
(5) review and recommend staff educational requirements and
staff training as needed; and
(6) review and make changes in rules relating to
residential care and service programs for persons with mental
illness as the commissioner may determine necessary.
Subd. 3. [HOUSING SERVICES FOR PERSONS WITH MENTAL
ILLNESS.] The commissioner of human services shall study the
housing needs of people with mental illness and shall articulate
a continuum of services from residential treatment as the most
intensive service through housing programs as the least
intensive. The commissioner shall develop recommendations for
implementing the continuum of services and shall present the
recommendations to the legislature by January 31, 1988.
Sec. 11. [245A.10] [FEES.]
The commissioner shall charge a fee for evaluation of
applications and inspection of programs, other than family day
care and foster care, which are licensed under sections 1 to 17.
Sec. 12. [245A.11] [SPECIAL CONDITIONS FOR RESIDENTIAL
PROGRAMS.]
Subdivision 1. [POLICY STATEMENT.] It is the policy of the
state that persons shall not be excluded by municipal zoning
ordinances or other land use regulations from the benefits of
normal residential surroundings.
Subd. 2. [PERMITTED SINGLE-FAMILY RESIDENTIAL
USE.] Residential programs with a licensed capacity of six or
fewer persons shall be considered a permitted single-family
residential use of property for the purposes of zoning and other
land use regulations.
Subd. 3. [PERMITTED MULTIFAMILY RESIDENTIAL USE.] Unless
otherwise provided in any town, municipal, or county zoning
regulation, a licensed residential program with a licensed
capacity of seven to 16 adults or children shall be considered a
permitted multifamily residential use of property for the
purposes of zoning and other land use regulations. A town,
municipal, or county zoning authority may require a conditional
use or special use permit to assure proper maintenance and
operation of a residential program. Conditions imposed on the
residential program must not be more restrictive than those
imposed on other conditional uses or special uses of residential
property in the same zones, unless the additional conditions are
necessary to protect the health and safety of the adults or
children being served by the program. Nothing in sections 1 to
17 shall be construed to exclude or prohibit residential
programs from single-family zones if otherwise permitted by
local zoning regulations.
Subd. 4. [LOCATION OF RESIDENTIAL PROGRAMS.] In
determining whether to grant a license, the commissioner shall
specifically consider the population, size, land use plan,
availability of community services, and the number and size of
existing licensed residential programs in the town,
municipality, or county in which the applicant seeks to operate
a residential program. The commissioner shall not grant an
initial license to any residential program if the residential
program will be within 1,320 feet of an existing residential
program unless the town, municipality, or county zoning
authority grants the residential program a conditional use or
special use permit. In cities of the first class, this
subdivision applies even if a residential program is considered
a permitted single-family residential use of property under
subdivision 2. Foster care homes are exempt from this
subdivision.
Subd. 5. [OVERCONCENTRATION AND DISPERSAL.] (a) Before
January 1, 1985, each county having two or more group
residential programs within 1,320 feet of each other shall
submit to the department of human services a plan to promote
dispersal of group residential programs. In formulating its
plan, the county shall solicit the participation of affected
persons, programs, municipalities having highly concentrated
residential program populations, and advocacy groups. For the
purposes of this subdivision, "highly concentrated" means having
a population in residential programs serving seven or more
persons that exceeds one-half of one percent of the population
of a recognized planning district or other administrative
subdivision.
(b) Within 45 days after the county submits the plan, the
commissioner shall certify whether the plan fulfills the
purposes and requirements of this subdivision including the
following requirements:
(1) a new program serving seven or more persons must not be
located in any recognized planning district or other
administrative subdivision where the population in residential
programs is highly concentrated;
(2) the county plan must promote dispersal of highly
concentrated residential program populations;
(3) the county plan shall promote the development of
residential programs in areas that are not highly concentrated;
(4) no person in a residential program shall be displaced
as a result of this section until a relocation plan has been
implemented that provides for an acceptable alternative
placement;
(5) if the plan provides for the relocation of residential
programs, the relocation must be completed by January 1, 1990.
If the commissioner certifies that the plan does not do so, the
commissioner shall state the reasons, and the county has 30 days
to submit a plan amended to comply with the requirements of the
commissioner.
(c) After July 1, 1985, the commissioner may reduce grants
under section 245.73 to a county required to have an approved
plan under paragraph (a) if the county does not have a plan
approved by the commissioner. The county board has the right to
be provided with advance notice and to appeal the commissioner's
decision. If the county requests a hearing within 30 days of
the notification of intent to reduce grants, the commissioner
shall not certify any reduction in grants until a hearing is
conducted and a decision made in accordance with the contested
case provisions of chapter 14.
Subd. 6. [HOSPITALS; EXEMPTION.] Residential programs
located in hospitals shall be exempt from the provisions of this
section.
Sec. 13. [245A.12] [VOLUNTARY RECEIVERSHIP FOR RESIDENTIAL
FACILITIES.]
A majority of controlling persons of a residential program
may at any time ask the commissioner to assume operation of the
residential program through appointment of a receiver. On
receiving the request for a receiver, the commissioner may enter
into an agreement with a majority of controlling persons and
provide for the appointment of a receiver to operate the
residential program under conditions acceptable to both the
commissioner and the majority of controlling persons. The
agreement must specify the terms and conditions of the
receivership and preserve the rights of the persons being served
by the residential program. A receivership set up under this
section terminates at the time specified by the parties to the
agreement or 30 days after either of the parties gives written
notice to the other party of termination of the receivership
agreement.
Sec. 14. [245A.13] [INVOLUNTARY RECEIVERSHIP FOR
RESIDENTIAL FACILITIES.]
Subdivision 1. [APPLICATION.] The commissioner may
petition the district court in the county where the residential
program is located for an order directing the controlling
persons of the residential program to show cause why the
commissioner or the commissioner's designated representative
should not be appointed receiver to operate the residential
program. The petition to the district court must contain proof
by affidavit that the commissioner has either begun license
suspension or revocation proceedings, suspended or revoked a
license, or decided to deny an application for licensure of the
residential program. If the license holder or applicant
operates more than one residential program, the commissioner's
petition must specify and be limited to the residential program
for which the commissioner has either begun license suspension
or revocation proceedings, suspended or revoked a license, or
has decided to deny an application for licensure of the
residential program. The order to show cause is returnable not
less than five days after service is completed and must provide
for personal service of a copy to the residential program
administrator and to the persons designated as agents by the
controlling persons to accept service on their behalf.
Subd. 2. [APPOINTMENT OF RECEIVER; RENTAL.] If the court
finds that involuntary receivership is necessary as a means of
protecting the health, safety, or rights of persons being served
by the residential program, the court shall appoint the
commissioner or the commissioner's designated representative as
a receiver to operate the residential program. The court shall
determine a fair monthly rental for the physical plant, taking
into account all relevant factors including the conditions of
the physical plant. The rental fee must be paid by the receiver
to the appropriate controlling persons for each month that the
receivership remains in effect. No payment made to a
controlling person by the receiver or any state agency during a
period of involuntary receivership shall include any allowance
for profit or be based on any formula that includes an allowance
for profit.
Subd. 3. [POWERS AND DUTIES OF THE RECEIVER.] Within 18
months after the receivership order, a receiver appointed to
operate a residential program during a period of involuntary
receivership shall provide for the orderly transfer of the
persons served by the residential program to other residential
programs or make other provisions to protect their health,
safety, and rights. The receiver shall correct or eliminate
deficiencies in the residential program that the commissioner
determines endanger the health, safety, or welfare of the
persons being served by the residential program unless the
correction or elimination of deficiencies involves major
alteration in the structure of the physical plant. If the
correction or elimination of the deficiencies requires major
alterations in the structure of the physical plant, the receiver
shall take actions designed to result in the immediate transfer
of persons served by the residential program. During the period
of the receivership, the receiver shall operate the residential
program in a manner designed to guarantee the health, safety,
rights, adequate care, and supervision of the persons served by
the residential program. The receiver may make contracts and
incur lawful expenses. The receiver shall collect incoming
payments from all sources and apply them to the cost incurred in
the performance of the receiver's functions including the
receiver's fee set under subdivision 4. No security interest in
any real or personal property comprising the residential program
or contained within it, or in any fixture of the physical plant,
shall be impaired or diminished in priority by the receiver.
The receiver shall pay all valid obligations of the residential
program and may deduct these expenses, if necessary, from rental
payments owed to any controlling person by virtue of the
receivership.
Subd. 4. [RECEIVER'S FEE; LIABILITY; ASSISTANCE FROM THE
COMMISSIONER.] A receiver appointed under an involuntary
receivership is entitled to a reasonable receiver's fee as
determined by the court. The receiver is liable only in an
official capacity for injury to person and property by reason of
the conditions of the residential program. The receiver is not
personally liable, except for gross negligence and intentional
acts.
Subd. 5. [TERMINATION.] An involuntary receivership
terminates 18 months after the date on which it was ordered or
at any other time designated by the court or when any of the
following events occurs:
(1) the commissioner determines that the residential
program's license application should be granted or should not be
suspended or revoked;
(2) a new license is granted to the residential program; or
(3) the commissioner determines that all persons residing
in the residential program have been provided with alternative
residential programs.
Sec. 15. [245A.14] [SPECIAL CONDITIONS FOR NONRESIDENTIAL
PROGRAMS.]
Subdivision 1. [PERMITTED SINGLE-FAMILY RESIDENTIAL
USE.] A licensed nonresidential program with a licensed capacity
of 12 or fewer persons shall be considered a permitted
single-family residential use of property for the purposes of
zoning and other land use regulations.
Subd. 2. [PERMITTED MULTIFAMILY USE.] Unless otherwise
provided in a town, municipal, or county regulation, a licensed
nonresidential program with a licensed capacity of 13 to 16
persons shall be considered a permitted multifamily residential
use of property for purposes of zoning. A town, municipal, or
county zoning authority may require a conditional use or special
use permit in order to assure proper maintenance and operation
of the program. Conditions imposed on the nonresidential
program must not be more restrictive than those imposed on other
conditional uses or special uses of residential property in the
same zones unless the additional conditions are necessary to
protect the health and safety of the persons being served by the
nonresidential program. Nothing in sections 1 to 17 shall be
construed to exclude or prohibit nonresidential programs from
single-family zones if otherwise permitted by local zoning
regulations.
Subd. 3. [CONDITIONAL LICENSE.] Until such time as the
commissioner adopts appropriate rules for conditional licenses,
no license holder or applicant for a family or group family day
care license is required to spend more than $100 to meet fire
safety rules in excess of those required to meet Group "R"
occupancies under the Uniform Building Code, chapter 12, as
incorporated by reference in Minnesota Rules, part 1305.0100.
When the commissioner determines that an applicant or
license holder of a family or group family day care license
would be required to spend over $100 for physical changes to
ensure fire safety, the commissioner may issue a conditional
license when all of the following conditions have been met:
(a) The commissioner shall notify the provider or
applicant in writing of the fire safety deficiencies.
(b) The commissioner shall notify the provider or applicant
in writing of alternative compliance standards that would
correct deficiencies, if available.
(c) The provider or applicant agrees in writing to notify
each parent, on a form prescribed by the commissioner that
requires the signature of the parent, of the fire safety
deficiencies, and the existence of the conditional license.
Sec. 16. [245A.15] [REGULATION OF FAMILY DAY CARE BY LOCAL
GOVERNMENT.]
The authority of local units of government to establish
requirements for family day care programs is limited by section
299F.011, subdivision 4a, clauses (1) and (2).
Sec. 17. [245A.16] [STANDARDS FOR COUNTY AGENCIES AND
PRIVATE AGENCIES.]
Subdivision 1. [DELEGATION OF AUTHORITY TO
AGENCIES.] County agencies and private agencies that have been
designated or licensed by the commissioner to perform licensing
functions and activities under section 4, to recommend denial of
applicants under section 5, or to recommend suspending,
revoking, and making licenses probationary under section 7,
shall comply with rules and directives of the commissioner
governing those functions and with this section.
Subd. 2. [INVESTIGATIONS.] (a) The county or private
agency shall conduct timely investigations of allegations of
abuse or neglect of children or adults in programs for which the
county or private agency is the commissioner's designated
representative and record a disposition of each complaint in
accordance with applicable law or rule. The county or private
agency shall conduct similar investigations of allegations of
violations of rules governing licensure of the program.
(b) If an investigation conducted under clause (a) results
in evidence that the commissioner should deny an application or
suspend, revoke, or make probationary a license, the county or
private agency shall make that recommendation to the
commissioner within ten working days.
Subd. 3. [RECOMMENDATIONS TO THE COMMISSIONER.] The county
or private agency shall not make recommendations to the
commissioner regarding licensure without first conducting an
inspection, study of the applicant, and evaluation pursuant to
section 4, subdivisions 3 and 4. The county or private agency
must forward its recommendation to the commissioner regarding
the appropriate licensing action within 20 working days of
receipt of a completed application.
Subd. 4. [ENFORCEMENT OF THE COMMISSIONER'S ORDERS.] The
county or private agency shall enforce the commissioner's orders
under sections 7 and 8, subdivision 5, according to the
instructions of the commissioner.
Subd. 5. [INSTRUCTION AND TECHNICAL ASSISTANCE.] The
commissioner shall provide instruction and technical assistance
to county and private agencies that are subject to this section.
County and private agencies shall cooperate with the
commissioner in carrying out this section by ensuring that
affected employees participate in instruction and technical
assistance provided by the commissioner.
Subd. 6. [CERTIFICATION BY THE COMMISSIONER.] The
commissioner shall ensure that rules are uniformly enforced
throughout the state by reviewing each county and private agency
for compliance with this section and other applicable laws and
rules at least biennially. County agencies that comply with
this section shall be certified by the commissioner. If a
county agency fails to be certified by the commissioner, the
commissioner shall certify a reduction of up to 20 percent of
the county's community social services act funding or an
equivalent amount from state administrative aids.
Sec. 18. Minnesota Statutes 1986, section 256D.01, is
amended by adding a subdivision to read:
Subd. 1d. [PAYMENTS TO FACILITIES.] After the effective
date of this subdivision, the commissioner shall make no
payments under rules authorized by subdivision 1b to
newly-licensed facilities which have five or more residents with
a primary diagnosis of mental illness unless they are licensed
or exempted from licensure under chapter 245A. The commissioner
of health shall monitor newly-licensed boarding care, board and
lodging and supervised living facilities, and shall report to
the commissioner of human services facilities that are not in
compliance with this subdivision.
Sec. 19. Minnesota Statutes 1986, section 256D.37, is
amended by adding a subdivision to read:
Subd. 5. After the effective date of this subdivision, the
commissioner shall make no payments under subdivision 1 to
newly-licensed facilities which have five or more residents with
a primary diagnosis of mental illness unless they are licensed
or exempted from licensure under chapter 245A. The commissioner
of health shall monitor newly-licensed boarding care, board and
lodging and supervised living facilities, and shall report to
the commissioner of human services facilities that are not in
compliance with this subdivision.
Sec. 20. [REPEALER.]
Minnesota Statutes 1986, sections 245.781; 245.782;
245.783; 245.791; 245.792; 245.801; 245.802; 245.803; 245.804;
245.805; 245.811; 245.812; 245.88; 245.881; 245.882; 245.883;
245.884; and 245.885, are repealed.
Sec. 21. [EFFECTIVE DATE.]
Sections 1 to 17 are effective July 1, 1987.
Sec. 22. [INSTRUCTIONS TO REVISOR.]
In the next edition of Minnesota Statutes, in the sections
referred to in column A, the revisor of statutes shall delete
the reference in column B and insert the reference in column C.
The revisor may change the references in column C to the
sections of Minnesota Statutes in which the bill sections are
compiled.
Column A Column B Column C
13.46, subd. 2 245.782 245A.02
144.653, subd. 1 245.781 245A.01
144A.01, subd. 5 245.781 245A.01
144A.071, subd. 2 245.781 245A.01
144A.10, subd. 1 245.781 245A.01
174.30, subd. 1 245.781 245A.01
241.021, subd. 2 245.783 245A.04
241.021, subd. 2 245.791 245A.03
245.73, subd. 1 245.781 245A.01
245.73, subd. 2 245.781 245A.01
252.24, subd. 1 245.781 245A.01
252.275, subd. 1 245.781 245A.01
252.291, subd. 1 245.782 245A.02
252.32, subd. 1 245.782 245A.02
254B.03, subd. 2 245.781 245A.01
254B.03, subd. 2 245.791 245A.03
254B.05 245.781 245A.01
254B.05 245.791 245A.03
256B.02, subd. 2 245.782 245A.02
260.185, subd. 1 245.781 245A.01
260.191, subd. 1 245.781 245A.01
260.194, subd. 1 245.781 245A.01
268.04, subd. 32 245.791 245A.03
268.38, subd. 12 245.781 245A.01
299F.011, subd. 4 245.782 245A.02
462.357, subd. 6 245.782 245A.02
466.01, subd. 4 245.782 245A.02
466.03, subd. 6 245.782 245A.02
595.02, subd. 2 245.801 245A.08
611A.52, subd. 8 245.791 245A.03
626.556, subd. 2 245.781 245A.01
626.556, subd. 2 245.782 245A.02
626.556, subd. 10 245.781 245A.01
626.557, subd. 2 245.781 245A.01
626.557, subd. 10 245.781 245A.01
Approved May 29, 1987
Official Publication of the State of Minnesota
Revisor of Statutes