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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 193-S.F.No. 457 
                  An act relating to professions; modifying provisions 
                  relating to the board of social work; providing civil 
                  penalties; amending Minnesota Statutes 1996, sections 
                  13.99, subdivision 50; 148B.01, subdivisions 4 and 7; 
                  148B.03; 148B.04, subdivisions 2, 3, and 4; 148B.06, 
                  subdivision 3; 148B.07; 148B.08, subdivision 2; 
                  148B.18, subdivisions 4, 5, 11, and by adding 
                  subdivisions; 148B.19, subdivisions 1, 2, and 4; 
                  148B.20, subdivision 1, and by adding a subdivision; 
                  148B.21, subdivisions 3, 4, 5, 6, 7, and by adding a 
                  subdivision; 148B.215; 148B.22, by adding a 
                  subdivision; 148B.26, subdivision 1, and by adding a 
                  subdivision; 148B.27, subdivisions 1 and 2; and 
                  148B.28, subdivisions 1 and 4; proposing coding for 
                  new law in Minnesota Statutes, chapter 148B; repealing 
                  Minnesota Statutes 1996, sections 148B.01, subdivision 
                  3; 148B.18, subdivisions 6 and 7; 148B.19, subdivision 
                  3; and 148B.23. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 13.99, 
        subdivision 50, is amended to read: 
           Subd. 50.  [RECORDS OF MENTAL HEALTH AND SOCIAL WORK 
        DISCIPLINARY ACTION.] The administrative records of disciplinary 
        action taken by a the board under chapter 148B of social work 
        are sealed upon judicial review as provided in classified under 
        section 148B.10 148B.285. 
           Sec. 2.  Minnesota Statutes 1996, section 148B.01, 
        subdivision 4, is amended to read: 
           Subd. 4.  [BOARD OF MARRIAGE AND FAMILY THERAPY.] "Board of 
        marriage and family therapy" means the board of marriage and 
        family therapy established in section 148B.30. 
           Sec. 3.  Minnesota Statutes 1996, section 148B.01, 
        subdivision 7, is amended to read: 
           Subd. 7.  [LICENSEE.] "Licensee" means a person licensed by 
        the board of social work or the board of marriage and family 
        therapy. 
           Sec. 4.  Minnesota Statutes 1996, section 148B.03, is 
        amended to read: 
           148B.03 [APPLICABILITY.] 
           Sections 148B.04 to 148B.17 apply to the board of social 
        work and the board of marriage and family therapy, and the 
        licensees within their respective jurisdictions its 
        jurisdiction, unless superseded by an inconsistent law that 
        relates specifically to a particular board it. 
           Sec. 5.  Minnesota Statutes 1996, section 148B.04, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTESTED CASE PROCEEDINGS.] Upon application of 
        a party in a contested case proceeding before a the board, the 
        board shall produce and permit the inspection and copying, by or 
        on behalf of the moving party, of any designated documents or 
        papers relevant to the proceedings, in accordance with rule 34, 
        Minnesota rules of civil procedure. 
           Sec. 6.  Minnesota Statutes 1996, section 148B.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  [INFORMATION ON DISCIPLINARY ACTIONS.] If a the 
        board imposes disciplinary measures or takes disciplinary action 
        of any kind, the name and business address of the licensee, the 
        nature of the misconduct, and the action taken by the board, 
        including all settlement agreements and other board orders, are 
        public data. 
           Sec. 7.  Minnesota Statutes 1996, section 148B.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [EXCHANGE OF INFORMATION.] The boards board shall 
        exchange information with other boards, agencies, or departments 
        within the state, as required under section 214.10, subdivision 
        8, paragraph (d). 
           Sec. 8.  Minnesota Statutes 1996, section 148B.06, 
        subdivision 3, is amended to read: 
           Subd. 3.  [INFORMATION REQUIRED.] The boards board shall 
        require all licensees or applicants to provide their social 
        security number and Minnesota business identification number on 
        all license applications.  Upon request of the commissioner of 
        revenue, the board of social work and the board of marriage and 
        family therapy must provide to the commissioner of revenue a 
        list of all licensees and applicants, including the name and 
        address, social security number, and business identification 
        number.  The commissioner of revenue may request a list of the 
        licensees and applicants no more than once each calendar year.  
           Sec. 9.  Minnesota Statutes 1996, section 148B.07, is 
        amended to read: 
           148B.07 [REPORTING OBLIGATIONS.] 
           Subdivision 1.  [PERMISSION TO REPORT.] A person who has 
        knowledge of any conduct constituting grounds for disciplinary 
        action relating to licensure or unlicensed practice under this 
        chapter may report the violation to the appropriate board.  
           Subd. 2.  [INSTITUTIONS.] A state agency, political 
        subdivision, agency of a local unit of government, private 
        agency, hospital, clinic, prepaid medical plan, or other health 
        care institution or organization located in this state shall 
        report to the appropriate board any action taken by the agency, 
        institution, or organization or any of its administrators or 
        medical or other committees to revoke, suspend, restrict, or 
        condition a licensee's privilege to practice or treat patients 
        or clients in the institution, or as part of the organization, 
        any denial of privileges, or any other disciplinary action for 
        conduct that might constitute grounds for disciplinary action by 
        a the board under this chapter.  The institution or organization 
        shall also report the resignation of any licensees prior to the 
        conclusion of any disciplinary action proceeding for conduct 
        that might constitute grounds for disciplinary action under this 
        chapter, or prior to the commencement of formal charges but 
        after the licensee had knowledge that formal charges were 
        contemplated or in preparation. 
           Subd. 3.  [PROFESSIONAL SOCIETIES OR ASSOCIATIONS.] A state 
        or local professional society or association for licensees shall 
        forward to the appropriate board any complaint received 
        concerning the ethics or conduct of the practice which the board 
        regulates.  The society or association shall forward a complaint 
        to the appropriate board upon receipt of the complaint.  The 
        society or association shall also report to the appropriate 
        board any disciplinary action taken against a member.  
           Subd. 4.  [LICENSED PROFESSIONALS.] A licensed health 
        professional shall report to the appropriate board personal 
        knowledge of any conduct that the licensed health professional 
        reasonably believes constitutes grounds for disciplinary action 
        under this chapter by any licensee, including conduct indicating 
        that the licensee may be medically incompetent, or may be 
        medically or physically unable to engage safely in the provision 
        of services.  If the information was obtained in the course of a 
        client relationship, the client is another licensee, and the 
        treating individual successfully counsels the other individual 
        to limit or withdraw from practice to the extent required by the 
        impairment, the board may deem this limitation of or withdrawal 
        from practice to be sufficient disciplinary action. 
           Subd. 5.  [INSURERS.] Four times each year as prescribed by 
        a the board, each insurer authorized to sell insurance described 
        in section 60A.06, subdivision 1, clause (13), and providing 
        professional liability insurance to licensees, or the medical 
        joint underwriting association under chapter 62F, shall submit 
        to the appropriate board a report concerning the licensees 
        against whom malpractice settlements or awards have been made to 
        the plaintiff.  The report must contain at least the following 
        information:  
           (1) the total number of malpractice settlements or awards 
        made; 
           (2) the date the malpractice settlements or awards were 
        made; 
           (3) the allegations contained in the claim or complaint 
        leading to the settlements or awards made; 
           (4) the dollar amount of each malpractice settlement or 
        award; 
           (5) the regular address of the practice of the licensee 
        against whom an award was made or with whom a settlement was 
        made; and 
           (6) the name of the licensee against whom an award was made 
        or with whom a settlement was made.  
           The insurance company shall, in addition to the above 
        information, report to the board any information it possesses 
        that tends to substantiate a charge that a licensee may have 
        engaged in conduct violating this chapter.  
           Subd. 6.  [COURTS.] The court administrator of district 
        court or any other court of competent jurisdiction shall report 
        to the board any judgment or other determination of the court 
        that adjudges or includes a finding that a licensee is mentally 
        ill, mentally incompetent, guilty of a felony, guilty of a 
        violation of federal or state narcotics laws or controlled 
        substances act, or guilty of an abuse or fraud under Medicare or 
        Medicaid; or that appoints a guardian of the licensee pursuant 
        to sections 525.54 to 525.61 or commits a licensee pursuant to 
        chapter 253B.  
           Subd. 7.  [SELF-REPORTING.] A licensee shall report to 
        the appropriate board or to the office of mental health practice 
        any personal action that would require that a report be filed by 
        any person, health care facility, business, or organization 
        pursuant to subdivisions 2 to 6. 
           Subd. 8.  [DEADLINES; FORMS.] Reports required by 
        subdivisions 2 to 7 must be submitted not later than 30 days 
        after the occurrence of the reportable event or transaction.  
        The boards board and the office of mental health practice may 
        provide forms for the submission of reports required by this 
        section, may require that reports be submitted on the forms 
        provided, and may adopt rules necessary to assure prompt and 
        accurate reporting.  
           Subd. 9.  [SUBPOENAS.] The boards board and the office of 
        mental health practice may issue subpoenas for the production of 
        any reports required by subdivisions 2 to 7 or any related 
        documents. 
           Sec. 10.  Minnesota Statutes 1996, section 148B.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INVESTIGATION.] Members of the boards of social 
        work and marriage and family therapy board and persons employed 
        by the boards board or engaged in the investigation of 
        violations and in the preparation and management of charges of 
        violations of this chapter on behalf of the boards board, are 
        immune from civil liability and criminal prosecution for any 
        actions, transactions, or publications in the execution of, or 
        relating to, their duties under this chapter.  
           Sec. 11.  Minnesota Statutes 1996, section 148B.18, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [APPLICANT.] "Applicant" means a person who has 
        submitted an application, with the appropriate fee, for 
        licensure by the board. 
           Sec. 12.  Minnesota Statutes 1996, section 148B.18, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [CLIENT.] "Client" means an individual, couple, 
        family, group, organization, or community that receives, 
        received, or should have received services from an applicant or 
        a licensee. 
           Sec. 13.  Minnesota Statutes 1996, section 148B.18, 
        subdivision 4, is amended to read: 
           Subd. 4.  [COUNTY AGENCY SOCIAL WORKER.] "County agency 
        social worker" means an individual who is employed by a county 
        social service agency in Minnesota in social work practice or 
        clinical social work. 
           Sec. 14.  Minnesota Statutes 1996, section 148B.18, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [LICENSEE.] "Licensee" means a person licensed 
        by the board. 
           Sec. 15.  Minnesota Statutes 1996, section 148B.18, 
        subdivision 5, is amended to read: 
           Subd. 5.  [STATE AGENCY SOCIAL WORKER.] "State agency 
        social worker" means an individual who is employed by a state 
        social service agency in Minnesota in social work practice or 
        clinical social work. 
           Sec. 16.  Minnesota Statutes 1996, section 148B.18, 
        subdivision 11, is amended to read: 
           Subd. 11.  [SOCIAL WORK PRACTICE.] (a) "Social work 
        practice" includes is the application of psychosocial social 
        work theory and, knowledge, methods in the prevention, 
        treatment, or resolution of social and/or psychological 
        dysfunction caused by environmental stress, interpersonal or 
        intrapersonal conflict, physical or mental disorders, or a 
        combination of these causes, and ethics to restore or enhance 
        social, psychosocial, or biopsychosocial functioning of 
        individuals, couples, families, groups, organizations, and 
        communities, with particular attention to 
        the person-in-situation person-in-environment configuration. 
           Social work practice also includes but is not limited to 
        psychotherapy, which is restricted to social workers qualified 
        to practice psychotherapy as defined in subdivision 9.  For the 
        following four categories of licensure, social work practice 
        also includes the following action: 
           (a) Licensed social workers evaluate and assess 
        difficulties in psychosocial functioning, develop a treatment 
        plan to alleviate those difficulties, and either carry it out 
        themselves or refer clients to other qualified resources for 
        assistance.  Treatment interventions commonly include but are 
        not limited to psychosocial evaluation; counseling of 
        individuals, families, and groups; advocacy; referral to 
        community resources; and facilitation of organizational change 
        to meet social needs. 
           (b) Licensed graduate social workers and licensed 
        independent social workers evaluate and treat more complex 
        problems in psychosocial functioning.  Treatment interventions 
        include but are not limited to psychosocial evaluation; 
        counseling of individuals, families, and groups; referral to 
        community resources; advocacy; facilitation of organizational 
        change to meet social needs; and psychotherapy when conducted 
        under supervision as defined in subdivision 12. 
           (b) For all levels of licensure, social work practice 
        includes assessment, treatment planning and evaluation, case 
        management, information and referral, counseling, advocacy, 
        teaching, research, supervision, consultation, community 
        organization, and the development, implementation, and 
        administration of policies, programs, and activities. 
           (c) For persons licensed at the licensed independent 
        clinical social workers provide professional services for worker 
        level, and for persons licensed at either the licensed graduate 
        social worker or the licensed independent social worker level 
        who practice social work under the supervision of a licensed 
        independent clinical social worker, social work practice 
        includes the diagnosis, and treatment, and prevention of mental 
        and emotional disorders in individuals, families, and groups, 
        with the goal of restoring, maintaining, and enhancing social 
        functioning.  The treatment interventions include, but are not 
        limited to, those listed for licensed graduate and licensed 
        independent social workers plus of mental and emotional 
        disorders includes the provision of individual, marital, and 
        group psychotherapy without supervision.  Independent clinical 
        social work practice may be conducted by independent clinical 
        social workers in private independent practice or in the employ 
        of a public or private agency or corporation or other legal 
        entity. 
           Social work practice is not medical care nor any other type 
        of remedial care that may be reimbursed under medical 
        assistance, chapter 256B, except to the extent such care is 
        reimbursed under section 256B.0625, subdivision 5, or as 
        provided under Minnesota Rules, parts 9500.1070, 9500.1020, or 
        their successor parts. 
           Sec. 17.  [148B.185] [APPLICABILITY.] 
           Sections 148B.18 to 148B.289 apply to all applicants and 
        licensees, to all persons practicing social work with clients in 
        this state, and to persons engaged in the unauthorized practice 
        of social work. 
           Sec. 18.  Minnesota Statutes 1996, section 148B.19, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION.] The board of social work is 
        created.  The board consists of 11 15 members appointed by the 
        governor.  The members are: 
           (1) eight ten social workers licensed under sections 
        148B.18 to 148B.28 148B.289; and 
           (2) three five public members as defined in section 214.02. 
           Sec. 19.  Minnesota Statutes 1996, section 148B.19, 
        subdivision 2, is amended to read: 
           Subd. 2.  [QUALIFICATIONS OF BOARD MEMBERS.] Five of the 
        eight social worker members of the board shall be as follows:  
        two licensed independent clinical social workers, two licensed 
        independent social workers, and four licensed social workers 
        licensed at the baccalaureate level of licensure and five shall 
        be licensed at the master's level of licensure. 
           Eight of the social worker members shall be engaged in the 
        practice of social work in Minnesota in the following settings: 
           (1) one member shall be engaged in the practice of social 
        work in a state agency; 
           (2) one member shall be engaged in the practice of social 
        work in a county agency; 
           (3) two members shall be engaged in the practice of social 
        work in a private agency; 
           (4) one member shall be engaged in the practice of social 
        work in a private clinical social work setting; 
           (5) one member shall be an educator engaged in regular 
        teaching duties at an accredited program of social work; 
           (6) one member shall be engaged in the practice of social 
        work in an elementary, middle, or secondary school, as defined 
        in section 120.05, and licensed by the board of teaching; and 
           (7) one member shall be employed in a hospital or nursing 
        home licensed under chapter 144 or 144A. 
           In addition, at least three five members shall be 
        persons with expertise in communities of color and at least four 
        six members shall reside outside of the seven-county 
        metropolitan area. 
           Sec. 20.  Minnesota Statutes 1996, section 148B.19, 
        subdivision 4, is amended to read: 
           Subd. 4.  [OFFICERS AND EXECUTIVE SECRETARY DIRECTOR.] The 
        board shall annually elect from its membership a chair, 
        vice-chair, and secretary-treasurer, and shall adopt rules to 
        govern its proceedings.  The board shall appoint and employ an 
        executive secretary director who is not a member of the board. 
           Sec. 21.  Minnesota Statutes 1996, section 148B.20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] The board of social work shall: 
           (a) Adopt and enforce rules for licensure of social workers 
        and for regulation of their professional conduct.  The rules 
        must be designed to protect the public. 
           (b) Adopt rules establishing standards and methods of 
        determining whether applicants and licensees are qualified under 
        sections 148B.21 to 148B.23.  The rules must make provision for 
        examinations and must establish standards for professional 
        conduct, including adoption of a code of professional ethics and 
        requirements for continuing education. 
           (c) Hold examinations at least twice a year to assess 
        applicants' knowledge and skills.  The examinations may be 
        written or oral and may be administered by the board or by a 
        body designated by the board.  Examinations must test the 
        knowledge and skills of each of the four groups of social 
        workers qualified under section 148B.21 to practice social work. 
        Examinations must minimize cultural bias and must be balanced in 
        theory. 
           (d) Issue licenses to individuals qualified under sections 
        148B.18 to 148B.28 148B.289.  
           (e) Issue copies of the rules for licensure to all 
        applicants. 
           (f) Establish and implement procedures, including a 
        standard disciplinary process, to ensure that individuals 
        licensed as social workers will comply with the board's rules. 
           (g) Establish, maintain, and publish annually a register of 
        current licensees. 
           (h) Establish initial and renewal application and 
        examination fees sufficient to cover operating expenses of the 
        board and its agents. 
           (i) Educate the public about the existence and content of 
        the rules for social work licensing to enable consumers to file 
        complaints against licensees who may have violated the rules. 
           (j) (i) Evaluate its rules in order to refine the standards 
        for licensing social workers and to improve the methods used to 
        enforce the board's standards. 
           Sec. 22.  Minnesota Statutes 1996, section 148B.20, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [DUTIES OF THE BOARD.] The board shall by rule 
        establish fees, including late fees, for licenses and renewals 
        so that the total fees collected by the board will as closely as 
        possible equal anticipated expenditures during the fiscal 
        biennium, as provided in section 16A.1285.  Fees must be 
        credited to accounts in the special revenue fund. 
           Sec. 23.  Minnesota Statutes 1996, section 148B.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SOCIAL WORKER.] To be licensed as a social 
        worker, an applicant must provide evidence satisfactory to the 
        board that the applicant: 
           (1) has received a baccalaureate degree from an accredited 
        program of social work; 
           (2) has passed the examination provided for in section 
        148B.20, subdivision 1; 
           (3) will engage in social work practice only under 
        supervision as defined in section 148B.18, subdivision 12, for 
        at least two years in full-time employment or 4,000 hours of 
        part-time employment; 
           (4) will conduct all professional activities as a social 
        worker in accordance with standards for professional conduct 
        established by the statutes and the rules of the board; and 
           (5) has not engaged in conduct warranting a disciplinary 
        action against a licensee.  If the applicant has engaged in 
        conduct warranting disciplinary action against a licensee, the 
        board may issue a license only on the applicant's showing that 
        the public will be protected through the issuance of a license 
        with conditions or limitations approved by the board. 
           Sec. 24.  Minnesota Statutes 1996, section 148B.21, 
        subdivision 4, is amended to read: 
           Subd. 4.  [GRADUATE SOCIAL WORKER.] To be licensed as a 
        graduate social worker, an applicant must provide evidence 
        satisfactory to the board that the applicant: 
           (1) has received a master's degree from an accredited 
        program of social work or doctoral degree in social work; 
           (2) has passed the examination provided for in section 
        148B.20, subdivision 1; 
           (3) will engage in social work practice only under 
        supervision as defined in section 148B.18, subdivision 12; 
           (4) will conduct all professional activities as a graduate 
        social worker in accordance with standards for professional 
        conduct established by the statutes and rules of the board; and 
           (5) has not engaged in conduct warranting a disciplinary 
        action against a licensee.  If the applicant has engaged in 
        conduct warranting disciplinary action against a licensee, the 
        board may issue a license only on the applicant's showing that 
        the public will be protected through the issuance of a license 
        with conditions or limitations approved by the board. 
           Sec. 25.  Minnesota Statutes 1996, section 148B.21, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INDEPENDENT SOCIAL WORKER.] To be licensed as an 
        independent social worker, an applicant must provide evidence 
        satisfactory to the board that the applicant: 
           (1) has received a master's degree from an accredited 
        program of social work or doctoral degree in social work; 
           (2) has passed the examination provided for in section 
        148B.20, subdivision 1; 
           (3) has practiced social work for at least two years in 
        full-time employment or 4,000 hours of part-time employment 
        under supervision as defined in section 148B.18, subdivision 12, 
        after receiving the master's or doctoral degree in social work; 
           (4) will conduct all professional activities as an 
        independent social worker in accordance with standards for 
        professional conduct established by the statutes and rules of 
        the board; and 
           (5) has not engaged in conduct warranting a disciplinary 
        action against a licensee.  If the applicant has engaged in 
        conduct warranting disciplinary action against a licensee, the 
        board may issue a license only on the applicant's showing that 
        the public will be protected through the issuance of a license 
        with conditions or limitations approved by the board. 
           Sec. 26.  Minnesota Statutes 1996, section 148B.21, 
        subdivision 6, is amended to read: 
           Subd. 6.  [INDEPENDENT CLINICAL SOCIAL WORKER.] To be 
        licensed as an independent clinical social worker, an applicant 
        must provide evidence satisfactory to the board that the 
        applicant: 
           (1) has received a master's degree from an accredited 
        program of social work, or doctoral degree in social work, that 
        included an advanced concentration of clinically oriented course 
        work as defined by the board and a supervised clinical field 
        placement at the graduate level, or post-master's clinical 
        training that is found by the board to be equivalent to that 
        course work and field placement; 
           (2) has practiced clinical social work for at least two 
        years in full-time employment or 4,000 hours of part-time 
        employment under supervision as defined in section 148B.18, 
        subdivision 12, after receiving the master's or doctoral degree 
        in social work; 
           (3) has passed the examination provided for in section 
        148B.20, subdivision 1; 
           (4) will conduct all professional activities as an 
        independent clinical social worker in accordance with standards 
        for professional conduct established by the statutes and rules 
        of the board; and 
           (5) has not engaged in conduct warranting a disciplinary 
        action against a licensee.  If the applicant has engaged in 
        conduct warranting disciplinary action against a licensee, the 
        board may issue a license only on the applicant's showing that 
        the public will be protected through the issuance of a license 
        with conditions or limitations approved by the board. 
           Sec. 27.  Minnesota Statutes 1996, section 148B.21, is 
        amended by adding a subdivision to read: 
           Subd. 6a.  [BACKGROUND CHECKS.] The board shall request a 
        criminal history background check from the superintendent of the 
        bureau of criminal apprehension on all applicants for initial 
        licensure.  An application for a license under this section must 
        be accompanied by an executed criminal history consent form and 
        the fee for conducting the criminal history background check. 
           Sec. 28.  Minnesota Statutes 1996, section 148B.21, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ESTABLISHMENT OF CANDIDACY STATUS TEMPORARY 
        PERMIT.] (a) The board may issue a practice temporary permit to 
        practice social work to an applicant in the following 
        situations, provided the applicant meets all other requirements 
        for licensure: 
           (1) the applicant has applied to take the first examination 
        for licensure given by the board following either graduation or 
        anticipated graduation from an passed the licensure examination 
        and the applicant's accredited program of social work; or has 
        submitted an affidavit on a form provided by the board verifying 
        the applicant's completion of the requirements for a degree.  
        The affidavit must be submitted within 15 days of the date of 
        completion of the degree requirements.  The temporary permit 
        under this clause is valid for six months, or until a license is 
        issued, whichever comes first, and is nonrenewable; 
           (2) the applicant is licensed or certified to practice 
        social work in Minnesota or another jurisdiction, meets the 
        requirements in section 148B.24, is intending to establish a 
        practice in Minnesota before being able to take the next 
        examination for licensure given by the board, and has applied to 
        take the same examination. has applied for licensure under 
        section 148B.24 and the board determines that the applicant must 
        pass the licensure examination before being licensed.  The 
        temporary permit under this clause is valid if the applicant 
        passes the examination and completes the licensure process 
        within the time periods specified by the board, and is 
        nonrenewable; or 
           (b) The practice permit is valid until the board takes 
        final action on the application, which shall occur within 60 
        days of the board's receipt of the applicant's examination 
        results.  The board, at its discretion, may extend the practice 
        permit if the applicant fails to pass or take the examination.  
        If the board determines that an extension of the practice permit 
        is not warranted, the applicant must cease practicing social 
        work immediately. 
           (3) the applicant has passed the licensure examination, has 
        graduated from a program of social work in candidacy status with 
        the Council on Social Work Education, and the program of social 
        work has submitted an affidavit on a form provided by the board 
        verifying the applicant's completion of the requirements for a 
        degree.  The affidavit must be submitted within 15 days of the 
        date of completion of the degree requirements.  The temporary 
        permit under this clause is valid for six months, and may be 
        extended at the board's discretion upon a showing that the 
        social work program remains in good standing with the Council on 
        Social Work Education.  If the board receives notice from the 
        Council on Social Work Education that the program of social work 
        is not in good standing or that accreditation will not be 
        granted to the program of social work, then the temporary permit 
        shall be invalid immediately and the applicant shall not qualify 
        for licensure. 
           (c) (b) An applicant who obtains a practice temporary 
        permit, and who has applied for a level of licensure which 
        requires supervision upon licensure, may practice social work 
        only under the supervision of a licensed social worker who is 
        eligible to provide supervision under section 148B.18, 
        subdivision 12.  The applicant's supervisor must provide 
        evidence to the board, before the applicant is approved by the 
        board for licensure, that the applicant has practiced social 
        work under supervision.  This supervision will not apply toward 
        the supervision requirement required after licensure. 
           (c) A temporary permit is nonrenewable. 
           Sec. 29.  Minnesota Statutes 1996, section 148B.215, is 
        amended to read: 
           148B.215 [CONTESTED CASE HEARING.] 
           An applicant or a licensee who is the subject of an adverse 
        action by the board may request a contested case hearing under 
        chapter 14.  An applicant or a licensee who desires to request a 
        contested case hearing must submit a written request to the 
        board within 90 days of receipt of the date on which the board 
        mailed the notification of the adverse action, or within 90 days 
        of August 1, 1992, whichever date occurs later. 
           Sec. 30.  Minnesota Statutes 1996, section 148B.22, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [BACKGROUND CHECKS.] The board shall request a 
        criminal history background check from the superintendent of the 
        bureau of criminal apprehension on all licensees under its 
        jurisdiction who did not complete a criminal history background 
        check as part of an application for initial licensure.  This 
        background check is a one-time requirement.  An application for 
        a license under this section must be accompanied by an executed 
        criminal history consent form and the fee for conducting the 
        criminal history background check. 
           Sec. 31.  Minnesota Statutes 1996, section 148B.26, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GROUNDS.] The following conduct is grounds 
        for the board may refuse to renew or to grant a license to, or 
        may suspend, revoke, or restrict the license of an individual 
        whom the board, after a hearing under the contested case 
        provisions of chapter 14, determines:  
           (1) is incompetent to engage in social work practice, is 
        found to be engaged in social work practice in a manner harmful 
        or dangerous to a client or to the public, or is found to have 
        engaged in unprofessional conduct, as established by statute, 
        rule, or a consensus of expert social work opinion as reasonably 
        necessary for the protection of the public interest; 
           (2) has violated the rules of the board, the statutes the 
        board is empowered to enforce, or any other law that is related 
        to the practice of social work; 
           (3) has obtained or attempted to obtain a license or 
        license renewal by bribery or fraudulent representation; or 
           (4) has knowingly made a false statement on a form required 
        by the board for licensing or license renewal. to deny the 
        application for or the renewal of a temporary permit or license, 
        to take disciplinary or other action against a license as 
        provided for in section 148B.281, or to take corrective action 
        against a licensee as provided for in chapter 214: 
           (1) engaging in any conduct which violates any statute or 
        rule enforced by the board, or any other law that is related to 
        the practice of social work; 
           (2) violating any order issued by the board; 
           (3) practicing outside the scope of practice authorized by 
        this chapter for each level of licensure; 
           (4) failing to demonstrate the qualifications or satisfy 
        the requirements for licensure, with the burden of proof on the 
        applicant to demonstrate the qualifications or the satisfaction 
        of the requirements; 
           (5) obtaining a temporary permit, license, or license 
        renewal by fraud, bribery, or cheating, or attempting to subvert 
        the examination process; 
           (6) making a false statement or misrepresentation to the 
        board; 
           (7) having been the subject of revocation, suspension, or 
        surrender of a social work or related license or of other 
        adverse action related to a social work or related license in 
        another jurisdiction or country; 
           (8) failing to report the revocation, suspension, or 
        surrender of a social work or related license or other adverse 
        action related to a social work or related license in another 
        jurisdiction or country, failing to report that a complaint or 
        other charges regarding the person's license have been brought 
        in this or another jurisdiction or country, or having been 
        refused a license by any other jurisdiction or country; 
           (9) engaging in unprofessional conduct or any other conduct 
        which has the potential for causing harm to the public, 
        including any departure from or failure to conform to the 
        minimum standards of acceptable and prevailing practice without 
        actual injury having to be established; 
           (10) engaging in unethical conduct or conduct likely to 
        deceive, defraud, or harm the public, demonstrating a willful or 
        careless disregard for the health, welfare, or safety of a 
        client, or engaging in a practice which is professionally 
        incompetent with proof of actual injury not having to be 
        established; 
           (11) being adjudicated by a court of competent 
        jurisdiction, within or without this state, as incapacitated, 
        mentally incompetent or mentally ill, chemically dependent, 
        mentally ill and dangerous to the public, or a psychopathic 
        personality; 
           (12) being unable to practice with reasonable skill and 
        safety by reason of illness, use of alcohol, drugs, chemicals or 
        any other materials, or as a result of any mental or physical 
        condition; 
           (13) engaging in improper or fraudulent billing practices, 
        including violations of the federal Medicare and Medicaid laws 
        or state medical assistance laws; 
           (14) obtaining money, property, or services from a client 
        through the use of undue influence, harassment, duress, 
        deception, or fraud or through the improper use of a 
        professional position; 
           (15) engaging in sexual contact, as defined in section 
        148A.01, with a client or conduct that is or may reasonably be 
        interpreted by the client as sexual, engaging in verbal behavior 
        that is or may be reasonably be interpreted as sexually 
        seductive or sexually demeaning to a client, or engaging in 
        conduct that violates section 617.23; 
           (16) being convicted, including a finding or verdict of 
        guilt, whether or not the adjudication of guilt is withheld or 
        not entered, an admission of guilt, or a no contest plea, of a 
        crime against a minor; 
           (17) being convicted, including a finding or verdict of 
        guilt, whether or not the adjudication of guilt is withheld or 
        not entered, an admission of guilt, or a no contest plea of a 
        felony, gross misdemeanor, or misdemeanor reasonably related to 
        the practice of social work, as evidenced by a certified copy of 
        the conviction; 
           (18) engaging in an unfair discriminatory practice 
        prohibited by chapter 363 of an employee of the applicant, 
        licensee, or facility in which the applicant or licensee 
        practices; 
           (19) engaging in false, fraudulent, deceptive, or 
        misleading advertising; or 
           (20) revealing a privileged communication from or relating 
        to a client except when otherwise required or permitted by law. 
           Sec. 32.  Minnesota Statutes 1996, section 148B.26, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [CONDUCT BEFORE LICENSURE.] The board's 
        jurisdiction to exercise its powers as provided for in 
        subdivision 1 extends to an applicant's or licensee's conduct 
        that occurred prior to licensure, if the conduct fell below 
        minimum standards for the practice of social work at the time 
        the conduct occurred or the conduct continues to affect the 
        applicant's or licensee's present ability to practice social 
        work in conformity with this chapter and the board's rules. 
           Sec. 33.  Minnesota Statutes 1996, section 148B.27, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PRACTICE.] After the board adopts rules, 
        No individual shall engage in social work practice unless that 
        individual holds a valid temporary permit or a license as a 
        licensed social worker, licensed graduate social worker, 
        licensed independent social worker, or licensed independent 
        clinical social worker.  
           Sec. 34.  Minnesota Statutes 1996, section 148B.27, 
        subdivision 2, is amended to read: 
           Subd. 2.  [USE OF TITLES.] After the board adopts rules, No 
        individual shall be presented to the public by any title 
        incorporating the words "social work" or "social worker" unless 
        that individual holds a valid temporary permit or a license 
        issued under sections 148B.18 to 148B.28 148B.289.  City, 
        county, and state agency social workers who are not licensed 
        under sections 148B.18 to 148B.28 148B.289 may use only the 
        title city agency social worker or county agency social worker 
        or state agency social worker.  
           Sec. 35.  Minnesota Statutes 1996, section 148B.28, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [OTHER PROFESSIONALS.] Nothing in sections 
        148B.18 to 148B.28 148B.289 shall be construed to prevent 
        members of other professions or occupations from performing 
        functions for which they are qualified or licensed.  This 
        exception includes but is not limited to licensed physicians; 
        registered nurses; licensed practical nurses; psychological 
        practitioners; probation officers; members of the clergy; 
        attorneys; marriage and family therapists; chemical dependency 
        counselors; professional counselors; school counselors; and 
        registered occupational therapists or certified occupational 
        therapist assistants.  These persons must not, however, hold 
        themselves out to the public by any title or description stating 
        or implying that they are engaged in the practice of social 
        work, or that they are licensed to engage in the practice of 
        social work.  Persons engaged in the practice of social work are 
        not exempt from the board's jurisdiction solely by the use of 
        one of the above titles. 
           Sec. 36.  Minnesota Statutes 1996, section 148B.28, 
        subdivision 4, is amended to read: 
           Subd. 4.  [CITY, COUNTY, AND STATE AGENCY SOCIAL WORKERS.] 
        The licensing of city, county, and state agency social workers 
        shall be voluntary.  City, county, and state agencies employing 
        social workers shall not be required to employ licensed social 
        workers, nor shall they require their social worker employees to 
        be licensed. 
           Sec. 37.  [148B.281] [COMPLAINTS; INVESTIGATION AND 
        HEARING.] 
           Subdivision 1.  [DISCOVERY; SUBPOENAS.] In all matters 
        relating to its lawful regulatory activities, the board may 
        issue subpoenas and compel the attendance of witnesses and the 
        production of all necessary papers, books, records, documents, 
        and other evidentiary material.  Any person failing or refusing 
        to appear to testify regarding any matter about which the person 
        may be lawfully questioned or failing to produce any papers, 
        books, records, documents, or other evidentiary materials in the 
        matter to be heard, after having been required by order of the 
        board or by a subpoena of the board to do so may, upon 
        application to the district court in any district, be ordered to 
        comply with the subpoena or order.  Any board member may 
        administer oaths to witnesses or take their affirmation.  
        Depositions may be taken within or without the state in the 
        manner provided by law for the taking of depositions in civil 
        actions.  A subpoena or other process or paper may be served 
        upon a person it names anywhere within the state by any officer 
        authorized to serve subpoenas or other process or paper in civil 
        actions in the same manner as prescribed by law for service of 
        process issued out of the district court of this state. 
           Subd. 2.  [CLASSIFICATION OF DATA.] The board shall 
        maintain any records, other than client records, obtained as 
        part of an investigation, as investigative data under section 
        13.41.  Client records are classified as private under chapter 
        13, and must be protected as such in the records of the board 
        and in administrative or judicial proceedings unless the client 
        authorizes the board in writing to make public the identity of 
        the client or a portion or all of the client's records. 
           Subd. 3.  [EXAMINATION.] If the board has probable cause to 
        believe that an applicant or licensee has engaged in conduct 
        prohibited by chapter 214 or a statute or rule enforced by the 
        board, it may issue an order directing the applicant or licensee 
        to submit to a mental or physical examination or chemical 
        dependency evaluation.  For the purpose of this section, every 
        applicant or licensee is considered to have consented to submit 
        to a mental or physical examination or chemical dependency 
        evaluation when ordered to do so in writing by the board and to 
        have waived all objections to the admissibility of the 
        examiner's or evaluator's testimony or reports on the grounds 
        that the testimony or reports constitute a privileged 
        communication. 
           Subd. 4.  [FAILURE TO SUBMIT TO AN EXAMINATION.] Failure to 
        submit to an examination or evaluation when ordered, unless the 
        failure was due to circumstances beyond the control of the 
        applicant or licensee, constitutes an admission that the 
        applicant or licensee violated chapter 214 or a statute or rule 
        enforced by the board, based on the factual specifications in 
        the examination or evaluation order, and may result in an 
        application being denied or a default and final disciplinary 
        order being entered without the taking of testimony or other 
        evidence.  If a contested case hearing is requested, the only 
        issues to be determined at the hearing are whether the 
        designated board member had probable cause to issue the 
        examination or evaluation order and whether the failure to 
        submit was due to circumstances beyond the control of the 
        applicant or licensee.  Neither the record of a proceeding under 
        this subdivision nor the orders entered by the board are 
        admissible, subject to subpoena, or to be used against the 
        applicant or licensee in a proceeding in which the board is not 
        a party or decision maker.  Information obtained under this 
        subdivision is classified as private under chapter 13 and the 
        orders issued by the board as the result of an applicant's or a 
        licensee's failure to submit to an examination or evaluation are 
        classified as public. 
           Subd. 5.  [ACCESS TO DATA AND RECORDS.] In addition to 
        ordering a physical or mental examination or chemical dependency 
        evaluation and notwithstanding section 13.42, 144.651, 595.02, 
        or any other law limiting access to medical or other health 
        records, the board may obtain data and health records relating 
        to an applicant or licensee without the applicant's or 
        licensee's consent if the board has probable cause to believe 
        that an applicant or licensee has engaged in conduct prohibited 
        by chapter 214 or a statute or rule enforced by the board.  An 
        applicant, licensee, insurance company, health care facility, 
        provider as defined in section 144.335, subdivision 1, paragraph 
        (b), or government agency shall comply with any written request 
        of the board under this subdivision and is not liable in any 
        action for damages for releasing the data requested by the board 
        if the data are released in accordance with a written request 
        made under this subdivision, unless the information is false and 
        the person or entity giving the information knew or had reason 
        to know that the information was false.  Information on 
        individuals obtained under this section is investigative data 
        under section 13.41. 
           Subd. 6.  [FORMS OF DISCIPLINARY ACTION.] When grounds for 
        disciplinary action exist under chapter 214 or a statute or rule 
        enforced by the board, it may take one or more of the following 
        disciplinary actions: 
           (1) deny the right to practice; 
           (2) revoke the right to practice; 
           (3) suspend the right to practice; 
           (4) impose limitations on the practice of the licensee; 
           (5) impose conditions on the practice of the licensee; 
           (6) impose a civil penalty not exceeding $10,000 for each 
        separate violation, the amount of the civil penalty to be fixed 
        so as to deprive the licensee of any economic advantage gained 
        by reason of the violation charged, or to discourage repeated 
        violations; 
           (7) impose a fee to reimburse the board for all or part of 
        the cost of the proceedings resulting in disciplinary action 
        including, but not limited to, the amount paid by the board for 
        services from the office of administrative hearings, attorney 
        fees, court reporters, witnesses, reproduction of records, board 
        members' per diem compensation, board staff time, and expense 
        incurred by board members and staff; 
           (8) censure or reprimand the licensee; 
           (9) require the passing of the examination provided for in 
        section 148B.20, subdivision 1; or 
           (10) take any other action justified by the facts of the 
        case. 
           Subd. 7.  [CENSURE OR REPRIMAND.] (a) In addition to the 
        board's authority to issue a censure or a reprimand to a 
        licensee, a designated board member reviewing a complaint as 
        provided for in chapter 214 may issue a censure or a reprimand 
        to a licensee.  The censure or reprimand shall notify the 
        licensee that the censure or reprimand will become final 
        disciplinary action unless the licensee requests a hearing 
        within 14 days. 
           (b) If the licensee requests a timely hearing, the 
        committee shall either schedule a hearing or withdraw the 
        censure or reprimand.  The hearing shall be de novo before the 
        board, provided that the designated board member who issued the 
        censure or reprimand shall not deliberate or vote.  Evidence 
        shall be received only in form of affidavits or other documents 
        except for testimony by the licensee or other witnesses whose 
        testimony the board chair has authorized for good cause.  If 
        testimony is authorized, it shall be subject to 
        cross-examination.  After the hearing, the board shall affirm or 
        dismiss the censure or reprimand, or direct the committee to 
        initiate a contested case proceeding pursuant to chapter 14. 
           Subd. 8.  [TEMPORARY SUSPENSION.] In addition to any other 
        remedy provided by law, the board may, acting through its 
        designated board member and without a hearing, temporarily 
        suspend the right of a licensee to practice if the board member 
        finds that the licensee has violated a statute or rule that the 
        board is empowered to enforce and that continued practice by the 
        licensee would create a serious risk of harm to others.  The 
        suspension is in effect upon service of a written order on the 
        licensee specifying the statute or rule violated.  The order 
        remains in effect until the board issues a final order in the 
        matter after a hearing or upon agreement between the board and 
        the licensee.  Service of the order is effective if the order is 
        served on the licensee or counsel of record personally or by 
        first class mail to the most recent address provided to the 
        board for the licensee or the counsel of record.  Within ten 
        days of service of the order, the board shall hold a hearing 
        before its own members on the sole issue of whether there is a 
        reasonable basis to continue, modify, or lift the suspension.  
        Evidence presented by the board or licensee may be in affidavit 
        form only.  The licensee or the counsel of record may appear for 
        oral argument.  Within five working days after the hearing, the 
        board shall issue its order and, if the suspension is continued, 
        schedule a contested case hearing within 45 days after issuance 
        of the order.  The administrative law judge shall issue a report 
        within 30 days after closing of the contested case hearing 
        record.  The board shall issue a final order within 30 days 
        after receipt of that report. 
           Subd. 9.  [AUTOMATIC SUSPENSION; RESTORATION.] The right to 
        practice is automatically suspended if (1) a guardian of a 
        licensee is appointed by order of a court under sections 525.54 
        to 525.61, or (2) the licensee is committed by order of a court 
        pursuant to chapter 253B.  The right to practice remains 
        suspended until the licensee is restored to capacity by a court 
        and, upon petition by the licensee, the suspension is terminated 
        by the board after a hearing or upon agreement between the board 
        and the licensee.  In its discretion, the board may restore and 
        reissue permission to provide services, but as a condition of 
        the permission may impose a disciplinary or corrective measure 
        that it might originally have imposed.  
           Subd. 10.  [ADDITIONAL REMEDIES.] The board may in its own 
        name issue a cease and desist order to stop a person from 
        engaging in an unauthorized practice or violating or threatening 
        to violate a statute, rule, or order which the board has issued 
        or is empowered to enforce.  The cease and desist order must 
        state the reason for its issuance and give notice of the 
        person's right to request a hearing under sections 14.57 to 
        14.62.  If, within 15 days of service of the order, the subject 
        of the order fails to request a hearing in writing, the order is 
        the final order of the board and is not reviewable by a court or 
        agency. 
           A hearing must be initiated by the board not later than 30 
        days from the date of the board's receipt of a written hearing 
        request.  Within 30 days of receipt of the administrative law 
        judge's report, the board shall issue a final order modifying, 
        vacating, or making permanent the cease and desist order as the 
        facts require.  The final order remains in effect until modified 
        or vacated by the board. 
           When a request for a stay accompanies a timely hearing 
        request, the board may, in its discretion, grant the stay.  If 
        the board does not grant a requested stay, it shall refer the 
        request to the office of administrative hearings within three 
        working days of receipt of the request.  Within ten days after 
        receiving the request from the board, an administrative law 
        judge shall issue a recommendation to grant or deny the stay.  
        The board shall grant or deny the stay within five days of 
        receiving the administrative law judge's recommendation. 
           In the event of noncompliance with a cease and desist 
        order, the board may institute a proceeding in Ramsey county 
        district court to obtain injunctive relief or other appropriate 
        relief, including a civil penalty payable to the board not 
        exceeding $10,000 for each separate violation. 
           Subd. 11.  [INJUNCTIVE RELIEF.] In addition to any other 
        remedy provided by law, including the issuance of a cease and 
        desist order under subdivision 1, the board may in its own name 
        bring an action in Ramsey county district court for injunctive 
        relief to restrain any unauthorized practice or violation or 
        threatened violation of any statute, rule, or order which the 
        board is empowered to regulate, enforce, or issue.  A temporary 
        restraining order must be granted in the proceeding if continued 
        activity by a licensee would create a serious risk of harm to 
        others.  The board need not show irreparable harm. 
           Subd. 12.  [ADDITIONAL POWERS.] The issuance of a cease and 
        desist order or injunctive relief granted under this section 
        does not relieve a licensee from criminal prosecution by a 
        competent authority or from disciplinary action by the board.  
        Nothing in this section limits the board's authority to seek 
        injunctive relief under section 214.11. 
           Subd. 13.  [PENDING APPEAL.] A suspension, revocation, 
        condition, limitation, qualification, or restriction of an 
        individual's license or right to practice is in effect pending 
        determination of an appeal unless the court, upon petition and 
        for good cause shown, orders otherwise.  
           Sec. 38.  [148B.282] [PROFESSIONAL COOPERATION.] 
           An applicant or a licensee who is the subject of an 
        investigation, or who is questioned in connection with an 
        investigation, by or on behalf of the board shall cooperate 
        fully with the investigation.  Cooperation includes responding 
        fully and promptly to any question raised by or on behalf of the 
        board relating to the subject of the investigation, providing 
        copies of client and other records in the applicant's or 
        licensee's possession relating to the matter under investigation 
        and executing releases for records, as reasonably requested by 
        the board, and appearing at conferences or hearings scheduled by 
        the board.  The board shall pay for copies requested.  The board 
        shall be allowed access to any records of a client provided 
        services by the applicant or licensee under review.  If the 
        client has not signed a consent permitting access to the 
        client's records, the applicant or licensee shall delete any 
        data in the record that identifies the client before providing 
        them to the board.  The board shall maintain any records 
        obtained pursuant to this section as investigative data pursuant 
        to chapter 13. 
           Sec. 39.  [148B.283] [REPORTING OBLIGATIONS.] 
           Subdivision 1.  [PERMISSION TO REPORT.] A person who has 
        knowledge of any conduct by an applicant or a licensee which may 
        constitute grounds for disciplinary action under this chapter or 
        the rules of the board or of any unlicensed practice under this 
        chapter may report the violation to the board.  
           Subd. 2.  [INSTITUTIONS.] A state agency, political 
        subdivision, agency of a local unit of government, private 
        agency, hospital, clinic, prepaid medical plan, or other health 
        care institution or organization located in this state shall 
        report to the board any action taken by the agency, institution, 
        or organization or any of its administrators or medical or other 
        committees to revoke, suspend, restrict, or condition an 
        applicant's or a licensee's privilege to practice or treat 
        patients or clients in the institution, or as part of the 
        organization, any denial of privileges, or any other 
        disciplinary action for conduct that might constitute grounds 
        for disciplinary action by the board under this chapter.  The 
        institution or organization shall also report the resignation of 
        any applicants or licensees prior to the conclusion of any 
        disciplinary action proceeding for conduct that might constitute 
        grounds for disciplinary action under this chapter, or prior to 
        the commencement of formal charges but after the applicant or 
        licensee had knowledge that formal charges were contemplated or 
        in preparation. 
           Subd. 3.  [PROFESSIONAL SOCIETIES OR ASSOCIATIONS.] A state 
        or local professional society or association for licensees shall 
        forward to the board any complaint received concerning the 
        ethics or conduct of the practice which the board regulates.  
        The society or association shall forward a complaint to the 
        board upon receipt of the complaint.  The society or association 
        shall also report to the board any disciplinary action taken 
        against a member.  
           Subd. 4.  [LICENSED PROFESSIONALS.] (a) A licensed health 
        professional shall report to the board information on the 
        following conduct by an applicant or a licensee: 
           (1) sexual contact or sexual conduct with a client or a 
        former client; 
           (2) failure to make reports required by section 626.556 or 
        626.557; 
           (3) impairment in the ability to practice by reason of 
        illness, use of alcohol, drugs, or other chemicals, or as a 
        result of any mental or physical condition; 
           (4) improper or fraudulent billing practices, including 
        violations of the federal Medicare and Medicaid laws or state 
        medical assistance laws; 
           (5) fraud in the licensure application process or any other 
        false statements made to the board; 
           (6) conviction of a felony reasonably related to the 
        practice of social work, including conviction of the 
        psychotherapist sex crimes in chapter 609; and 
           (7) a violation of a board order. 
           (b) A licensed health professional shall also report to the 
        board information on any other conduct by an applicant or a 
        licensee that constitutes grounds for disciplinary action under 
        this chapter or the rules of the board when the licensed health 
        professional reasonably believes, after appropriate assessment, 
        that the client's functioning has been or likely will be 
        affected negatively by the conduct, regardless of whether the 
        conduct has ceased. 
           (c) Notwithstanding paragraphs (a) and (b), a licensed 
        health professional shall report to the board knowledge of any 
        actions which institutions must report under subdivision 2. 
           Subd. 5.  [REPORTING OTHER LICENSED PROFESSIONALS.] An 
        applicant or a licensee shall report to the appropriate board 
        conduct by a licensed health professional which would constitute 
        grounds for disciplinary action under the chapter governing the 
        practice of the other licensed health professional and which is 
        required by law to be reported to the same board. 
           Subd. 6.  [INSURERS AND OTHER ENTITIES MAKING LIABILITY 
        PAYMENTS.] (a) Four times each year as prescribed by the board, 
        each insurer authorized to sell insurance described in section 
        60A.06, subdivision 1, clause (13), and providing professional 
        liability insurance to licensees, or the medical joint 
        underwriting association under chapter 62F, shall submit to the 
        board a report concerning the licensees against whom malpractice 
        settlements or awards have been made to the plaintiff.  The 
        report must contain at least the following information:  
           (1) the total number of malpractice settlements or awards 
        made; 
           (2) the date the malpractice settlements or awards were 
        made; 
           (3) the allegations contained in the claim or complaint 
        leading to the settlements or awards made; 
           (4) the dollar amount of each malpractice settlement or 
        award; 
           (5) the regular address of the practice of the licensee 
        against whom an award was made or with whom a settlement was 
        made; and 
           (6) the name of the licensee against whom an award was made 
        or with whom a settlement was made.  
           (b) A medical clinic, hospital, political subdivision, or 
        other entity which makes professional liability insurance 
        payments on behalf of applicants or licensees shall submit to 
        the board a report concerning malpractice settlements or awards 
        paid on behalf of applicants or licensees, and any settlements 
        or awards paid by a clinic, hospital, political subdivision, or 
        other entity on its own behalf because of care rendered by 
        applicants or licensees.  This requirement excludes forgiveness 
        of bills.  The report shall be made to the board within 30 days 
        of payment of all or part of any settlement or award. 
           (c) The insurance company or other entity making 
        professional liability insurance payments shall, in addition to 
        the information in paragraph (b), report to the board any 
        information it possesses that tends to substantiate a charge, 
        including the factual data underlying a settlement, that an 
        applicant or a licensee may have engaged in conduct violating 
        this chapter.  
           Subd. 7.  [COURTS.] The court administrator of district 
        court or any other court of competent jurisdiction shall report 
        to the board any judgment or other determination of the court 
        that adjudges or includes a finding that an applicant or a 
        licensee is mentally ill, mentally incompetent, guilty of a 
        felony, guilty of a violation of federal or state narcotics laws 
        or controlled substances act, or guilty of an abuse or fraud 
        under Medicare or Medicaid; or that appoints a guardian of the 
        applicant or licensee pursuant to sections 525.54 to 525.61 or 
        commits an applicant or a licensee pursuant to chapter 253B.  
           Subd. 8.  [SELF-REPORTING.] An applicant or a licensee 
        shall report to the board any personal action that would require 
        that a report be filed by any person, health care facility, 
        business, or organization pursuant to subdivisions 2 to 7. 
           Subd. 9.  [DEADLINES; FORMS.] Reports required by 
        subdivisions 2 to 8 must be submitted not later than 30 days 
        after the occurrence of the reportable event or transaction.  
        The board may provide forms for the submission of reports 
        required by this section, may require that reports be submitted 
        on the forms provided, and may adopt rules necessary to assure 
        prompt and accurate reporting.  
           Subd. 10.  [SUBPOENAS.] The board may issue subpoenas for 
        the production of any reports required by subdivisions 2 to 8 or 
        any related documents. 
           Sec. 40.  [148B.284] [IMMUNITY.] 
           Subdivision 1.  [REPORTING.] Any person, health care 
        facility, business, or organization is immune from civil 
        liability or criminal prosecution for submitting in good faith a 
        report under section 148B.283 or for otherwise reporting, 
        providing information, or testifying about violations or alleged 
        violations of this chapter.  The reports are classified under 
        section 13.41. 
           Subd. 2.  [INVESTIGATION.] Board members and employees; 
        persons engaged on behalf of the board in the investigation of 
        violations and in the preparation, presentation, and management 
        of and testimony pertaining to charges of violations; and 
        persons engaged in monitoring compliance with statutes, rules, 
        board orders, or corrective action agreements are immune from 
        civil liability and criminal prosecution for any actions, 
        transactions, or publications in the execution of, or relating 
        to, their duties under this chapter.  
           Sec. 41.  [148B.285] [DISCLOSURE.] 
           Subdivision 1.  [CONTESTED CASE PROCEEDINGS.] (a) Upon 
        application of a party in a board hearing or a contested case 
        hearing before the board, the board shall produce and permit the 
        inspection and copying, by or on behalf of the moving party, of 
        any designated documents or papers relevant to the proceedings, 
        in accordance with rule 34, Minnesota rules of civil procedure. 
           (b) The board hearing or contested case hearing shall be 
        open to the public, except that the board or administrative law 
        judge shall close the hearing for testimony by clients, and 
        testimony and argument about clients. 
           (c) Notwithstanding section 13.41, information which may 
        identify a client, client records, and licensee health records 
        are private data during the contested case hearing, as part of 
        the hearing record, and as part of any appellate or other court 
        record. 
           (d) Clients may waive the protections afforded by this 
        subdivision. 
           Subd. 2.  [INFORMATION ON DISCIPLINARY ACTIONS.] If the 
        board imposes disciplinary measures or takes disciplinary action 
        of any kind, the name and business address of the licensee, the 
        nature of the misconduct, and the action taken by the board, 
        including all settlement agreements and other board orders, are 
        public data. 
           Subd. 3.  [EXCHANGE OF INFORMATION.] The board shall 
        exchange information with other boards, agencies, or departments 
        within the state, as required under section 214.10, subdivision 
        8, paragraph (d). 
           Subd. 4.  [INFORMATION TO THE COMPLAINANT.] The board shall 
        furnish to a person who made a complaint a statement of the 
        result of an investigation of the complaint and a description of 
        the activities and actions of the board relating to the 
        complaint. 
           Subd. 5.  [CLASSIFICATION OF CERTAIN RESIDENCE ADDRESSES 
        AND TELEPHONE NUMBERS.] Notwithstanding section 13.41, 
        subdivision 2 or 4, the residence address and telephone number 
        of an applicant or licensee are private data on individuals as 
        defined in section 13.02, subdivision 12, if the applicant or 
        licensee so requests and provides an alternative address and 
        telephone number. 
           Subd. 6.  [PUBLICATION OF DISCIPLINARY ACTIONS.] At least 
        annually, each board shall publish and release to the public a 
        description of all disciplinary measures or actions taken by the 
        board.  The publication must include, for each disciplinary 
        measure or action taken, the name and business address of the 
        licensee, the nature of the misconduct, and the measure or 
        action taken by the board. 
           Sec. 42.  [148B.286] [PROFESSIONAL ACCOUNTABILITY.] 
           Subdivision 1.  [INVESTIGATION.] The board shall maintain 
        and keep current a file containing the reports and complaints 
        filed against applicants or licensees within the board's 
        jurisdiction.  Each complaint filed with the board pursuant to 
        chapter 214 must be investigated according to chapter 214.  If 
        the files maintained by the board show that a malpractice 
        settlement or award to the plaintiff has been made against an 
        applicant or a licensee as reported by insurers under section 
        148B.283, the executive director of the board shall notify the 
        board and the board may authorize a review of the provider's 
        practice. 
           Subd. 2.  [ATTORNEY GENERAL INVESTIGATES.] When the board 
        initiates a review of an applicant's or a licensee's practice it 
        shall notify the attorney general who shall investigate the 
        matter in the same manner as provided in chapter 214.  If an 
        investigation is to be made, the attorney general shall notify 
        the applicant or licensee, and, if the incident being 
        investigated occurred there, the administrator and chief of 
        staff at the health care facilities or clinics in which the 
        professional serves, if applicable. 
           Subd. 3.  [ACCESS TO RECORDS.] The board shall be allowed 
        access to any records of a client provided services by the 
        applicant or licensee under review.  If the client has not 
        signed a consent permitting access, the applicant, licensee, or 
        custodian of the records shall first delete the client's name or 
        other client identifiers before providing the records to the 
        board.  
           Sec. 43.  [148B.287] [MALPRACTICE HISTORY.] 
           Subdivision 1.  [SUBMISSION.] Licensees or applicants for 
        licensure who have previously practiced in another state shall 
        submit with their application the following information:  
           (1) number, date, and disposition of any malpractice 
        settlement or award made relating to the quality of services 
        provided by the licensee or applicant; and 
           (2) number, date, and disposition of any civil litigations 
        or arbitrations relating to the quality of services provided by 
        the licensee or applicant in which the party complaining against 
        the licensee or applicant prevailed or otherwise received a 
        favorable decision or order.  
           Subd. 2.  [BOARD ACTION.] The board shall give due 
        consideration to the information submitted under this section.  
        A licensee or applicant for licensure who willfully submits 
        incorrect information is subject to disciplinary action under 
        this chapter. 
           Sec. 44.  [148B.288] [EVIDENCE OF PAST SEXUAL CONDUCT.] 
           In a proceeding for the suspension or revocation of the 
        right to practice or other disciplinary or adverse action 
        involving sexual contact with a client or former client, the 
        board or administrative law judge shall not consider evidence of 
        the client's previous sexual conduct nor shall any reference to 
        this conduct be made during the proceedings or in the findings, 
        except by motion of the complainant, unless the evidence would 
        be admissible under the applicable provisions of section 
        609.347, subdivision 3. 
           Sec. 45.  [148B.289] [TAX CLEARANCE CERTIFICATE.] 
           Subdivision 1.  [CERTIFICATE REQUIRED.] The board may not 
        issue or renew a license if the commissioner of revenue notifies 
        the board and the licensee or applicant for a license that the 
        licensee or applicant owes the state delinquent taxes in the 
        amount of $500 or more.  The board may issue or renew a license 
        or filing only if the commissioner of revenue issues a tax 
        clearance certificate and the commissioner of revenue or the 
        licensee or applicant forwards a copy of the clearance to the 
        board.  The commissioner of revenue may issue a clearance 
        certificate only if the licensee or applicant does not owe the 
        state any uncontested delinquent taxes.  For purposes of this 
        section, "taxes" means all taxes payable to the commissioner of 
        revenue, including penalties and interest due on those taxes.  
        "Delinquent taxes" do not include a tax liability if (1) an 
        administrative or court action that contests the amount or 
        validity of the liability has been filed or served, (2) the 
        appeal period to contest the tax liability has not expired, or 
        (3) the licensee or applicant has entered into a payment 
        agreement to pay the liability and is current with the payments. 
           Subd. 2.  [HEARING.] In lieu of the notice and hearing 
        requirements of section 148B.281, when a licensee or applicant 
        is required to obtain a clearance certificate under this 
        subdivision, a contested case hearing must be held if the 
        licensee or applicant requests a hearing in writing to the 
        commissioner of revenue within 30 days of the date of the notice 
        required in subdivision 1.  The hearing must be held within 45 
        days of the date the commissioner of revenue refers the case to 
        the office of administrative hearings.  Notwithstanding any 
        other law, the licensee or applicant must be served with 20 
        days' notice in writing specifying the time and place of the 
        hearing and the allegations against the licensee or applicant.  
        The notice may be served personally or by mail. 
           Subd. 3.  [INFORMATION REQUIRED.] The board shall require 
        all licensees or applicants to provide their social security 
        number and Minnesota business identification number on all 
        license applications.  Upon request of the commissioner of 
        revenue, the board must provide to the commissioner of revenue a 
        list of all licensees and applicants, including the name and 
        address, social security number, and business identification 
        number.  The commissioner of revenue may request a list of the 
        licensees and applicants no more than once each calendar year. 
           Sec. 46.  [EXEMPTION CLARIFICATION.] 
           The board of social work may grant a license pursuant to 
        Minnesota Statutes 1996, section 148B.23, subdivision 1, to a 
        person who applied for licensure under that section by June 30, 
        1996, and submitted verification of having practiced social work 
        in a hospital or nursing home operated by the United States 
        Department of Veterans Affairs or by a federally recognized 
        tribe. 
           Sec. 47.  [REVISOR'S INSTRUCTION.] 
           The revisor shall change "148B.28" to "148B.289" in 
        Minnesota Statutes, sections 144A.46; 148B.18; 148B.19; 148B.22; 
        148B.27; and 148B.60. 
           Sec. 48.  [REPEALER.] 
           Minnesota Statutes 1996, sections 148B.01, subdivision 3; 
        148B.18, subdivisions 6 and 7; 148B.19, subdivision 3; and 
        148B.23, are repealed. 
           Sec. 49.  [EFFECTIVE DATE.] 
           Sections 28 and 46 are effective on the day following final 
        enactment. 
           Presented to the governor May 19, 1997 
           Signed by the governor May 20, 1997, 10:52 a.m.