Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 498-S.F.No. 2051 
           An act relating to health; allowing a waiver of 
          restrictions that may be placed upon controlling 
          persons of a nursing home; amending Minnesota Statutes 
          1988, section 144A.04, subdivision 4; and by adding a 
          subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
     Section 1.  Minnesota Statutes 1988, section 144A.04, 
subdivision 4, is amended to read: 
    Subd. 4.  [CONTROLLING PERSON RESTRICTIONS.] (a) The 
controlling persons of a nursing home may not include any person 
who was a controlling person of another nursing home during any 
period of time in the previous two-year period:  
    (a) (1) during which time of control that other nursing 
home incurred the following number of uncorrected or repeated 
violations: 
    (1) (i) two or more uncorrected violations or one or more 
repeated violations which created an imminent risk to direct 
resident care or safety; or 
    (2) (ii) four or more uncorrected violations or two or more 
repeated violations of any nature for which the fines are in the 
four highest daily fine categories prescribed in rule; or 
    (b) (2) who was convicted of a felony or gross misdemeanor 
punishable by a term of imprisonment of more than 90 days that 
relates to operation of the nursing home or directly affects 
resident safety or care, during that period. 
    (b) The provisions of this subdivision shall not apply to 
any controlling person who had no legal authority to affect or 
change decisions related to the operation of the nursing home 
which incurred the uncorrected violations. 
     Sec. 2.  Minnesota Statutes 1988, section 144A.04, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [STAY OF ADVERSE ACTION REQUIRED BY CONTROLLING 
PERSON RESTRICTIONS.] (a) In lieu of revoking, suspending, or 
refusing to renew the license of a nursing home with a 
controlling person disqualified by subdivision 4, paragraph (a), 
clause (1), the commissioner may issue an order staying the 
revocation, suspension, or nonrenewal of the nursing home 
license.  The order may, but need not, be contingent upon the 
nursing home's compliance with restrictions and conditions 
imposed on the license to ensure the proper operation of the 
nursing home and to protect the health, safety, comfort, 
treatment, and well-being of the residents in the home.  The 
decision to issue an order for stay must be made within 90 days 
of the commissioner's determination that a controlling person is 
disqualified by subdivision 4, paragraph (a), clause (1), from 
operating a nursing home. 
    (b) In determining whether to issue a stay and to impose 
conditions and restrictions, the commissioner shall consider the 
following factors: 
    (1) the ability of the controlling persons to operate other 
nursing homes in accordance with the licensure rules and laws; 
    (2) the conditions in the facility that received the number 
and type of uncorrected or repeated violations described in 
subdivision 4, paragraph (a), clause (1); and 
    (3) the conditions and compliance history of each of the 
nursing homes operated by the controlling persons. 
    (c) The commissioner's decision to exercise the authority 
under this subdivision in lieu of revoking, suspending, or 
refusing to renew the license of the nursing home is not subject 
to administrative or judicial review. 
    (d) The order for the stay of revocation, suspension, or 
nonrenewal of the nursing home license must include any 
conditions and restrictions on the nursing home license that the 
commissioner deems necessary based upon the factors listed in 
paragraph (b). 
    (e) Prior to issuing an order for stay of revocation, 
suspension, or nonrenewal, the commissioner shall inform the 
controlling persons, in writing, of any conditions and 
restrictions that will be imposed.  The controlling persons 
shall, within 10 working days, notify the commissioner in 
writing of their decision to accept or reject the conditions and 
restrictions.  If the nursing home rejects any of the conditions 
and restrictions, the commissioner shall either modify the 
conditions and restrictions or take action to suspend, revoke, 
or not renew the nursing home license. 
    (f) Upon issuance of the order for stay of revocation, 
suspension, or nonrenewal, the controlling persons shall be 
responsible for compliance with the conditions and restrictions 
contained therein.  Any time after the conditions and 
restrictions have been in place for 180 days, the controlling 
persons may petition the commissioner for removal or 
modification of the conditions and restrictions.  The 
commissioner shall respond to the petition within 30 days of the 
receipt of the written petition.  If the commissioner denies the 
petition, the controlling persons may request a hearing under 
the provisions of chapter 14.  Any hearing shall be limited to a 
determination of whether the conditions and restrictions shall 
be modified or removed.  At the hearing, the controlling persons 
will have the burden of proof. 
    (g) The failure of the controlling persons to comply with 
the conditions and restrictions contained in the order for stay 
shall result in the immediate removal of the stay and the 
commissioner shall take action to suspend, revoke, or not renew 
the license. 
    (h) The conditions and restrictions are effective for two 
years after the date they are imposed. 
    (i) Nothing in this subdivision shall be construed to limit 
in any way the commissioner's ability to impose other sanctions 
against a nursing home license under the standards set forth in 
state or federal law whether or not a stay of revocation, 
suspension, or nonrenewal is issued. 
    Sec.  3.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective the day following final 
enactment.  The provisions of section 2 apply to any contested 
case proceeding that is pending on the date of enactment as well 
as to licensing actions and contested case hearings commenced on 
or after that date. 
    Presented to the governor April 24, 1990 
    Signed by the governor April 24, 1990, 9:56 p.m.