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Minnesota Legislature

Office of the Revisor of Statutes

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

                            CHAPTER 248-S.F.No. 234 
                  An act relating to human services; adding provisions 
                  for licensing programs; imposing and modifying civil 
                  penalties; requiring reports on nonresidential child 
                  care programs; providing interim expansion of 
                  unlicensed child care providers; requiring reports 
                  from the commissioner of health and the commissioner 
                  of human services; creating a legislative task force 
                  to review the background study process; amending 
                  Minnesota Statutes 1996, sections 144.057, subdivision 
                  1; 144A.46, subdivision 5; 245A.02, subdivisions 15, 
                  16, 17, and by adding subdivisions; 245A.03, 
                  subdivision 2; 245A.04, subdivisions 3, 3a, 3b, 3c, 4, 
                  5, 6, 7, and by adding a subdivision; 245A.06, 
                  subdivisions 1, 3, 4, 5, 5a, 6, and 7; 245A.07, 
                  subdivisions 1 and 3; 245A.08, subdivisions 1 and 2; 
                  245A.09, subdivision 7; 245A.11, subdivision 2; 
                  245A.16, subdivision 2; 256E.115; and 364.09; Laws 
                  1995, chapter 158, section 7; proposing coding for new 
                  law in Minnesota Statutes, chapter 245A; proposing 
                  coding for new law as Minnesota Statutes, chapter 
                  245B; repealing Minnesota Statutes 1996, sections 
                  245A.091; 245A.20; 245A.21; and 252.53; Laws 1996, 
                  chapter 408, article 10, section 13; Minnesota Rules, 
                  parts 4668.0020; 9503.0170, subpart 7; 9525.0215; 
                  9525.0225; 9525.0235; 9525.0243; 9525.0245; 9525.0255; 
                  9525.0265; 9525.0275; 9525.0285; 9525.0295; 9525.0305; 
                  9525.0315; 9525.0325; 9525.0335; 9525.0345; 9525.0355; 
                  9525.0500; 9525.0510; 9525.0520; 9525.0530; 9525.0540; 
                  9525.0550; 9525.0560; 9525.0570; 9525.0580; 9525.0590; 
                  9525.0600; 9525.0610; 9525.0620; 9525.0630; 9525.0640; 
                  9525.0650; 9525.0660; 9525.1240, subpart 1, item E, 
                  subitem (6); 9525.1500; 9525.1510; 9525.1520; 
                  9525.1530; 9525.1540; 9525.1550; 9525.1560; 9525.1570, 
                  subparts 1, 2, 3, 4, 5, and 6; 9525.1590; 9525.1610; 
                  9525.1620; 9525.1630; 9525.1640; 9525.1650; 9525.1660; 
                  9525.1670; 9525.1680; 9525.1690; 9525.2000; 9525.2010; 
                  9525.2020; 9525.2025; 9525.2030; 9525.2040; 9525.2050; 
                  9525.2060; 9525.2070; 9525.2080; 9525.2090; 9525.2100; 
                  9525.2110; 9525.2120; 9525.2130; 9525.2140; 9543.3070; 
                  9555.8000; 9555.8100; 9555.8200; 9555.8300; 9555.8400; 
                  and 9555.8500. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 144.057, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BACKGROUND STUDIES REQUIRED.] The 
        commissioner of health shall contract with the commissioner of 
        human services to conduct background studies of: 
           (1) individuals providing services which have direct 
        contact, as defined under section 245A.04, subdivision 3, with 
        patients and residents in hospitals, boarding care homes, 
        outpatient surgical centers licensed under sections 144.50 to 
        144.58; nursing homes and home care agencies licensed under 
        chapter 144A; residential care homes licensed under chapter 
        144B, and board and lodging establishments that are registered 
        to provide supportive or health supervision services under 
        section 157.17.; and 
           (2) beginning July 1, 1999, all other employees in nursing 
        homes licensed under chapter 144A, and boarding care homes 
        licensed under sections 144.50 to 144.58.  A disqualification of 
        an individual in this section shall disqualify the individual 
        from positions allowing direct contact or access to patients or 
        residents receiving services. 
           If a facility or program is licensed by the department of 
        human services and subject to the background study provisions of 
        chapter 245A and is also licensed by the department of health, 
        the department of human services is solely responsible for the 
        background studies of individuals in the jointly licensed 
        programs. 
           Sec. 2.  Minnesota Statutes 1996, section 144A.46, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PRIOR CRIMINAL CONVICTIONS.] (a) Before the 
        commissioner issues a an initial or renewal license and, as 
        defined in the home care licensure rules promulgated by the 
        commissioner of health, an owner or managerial official shall be 
        required to disclose all criminal convictions.  The commissioner 
        may adopt rules that may require a person who must disclose 
        criminal convictions under this subdivision to provide 
        fingerprints and releases that authorize law enforcement 
        agencies, including the bureau of criminal apprehension and the 
        Federal Bureau of Investigation, to release information about 
        the person's criminal convictions to the commissioner and home 
        care providers.  The bureau of criminal apprehension, county 
        sheriffs, and local chiefs of police shall, if requested, 
        provide the commissioner with criminal conviction data available 
        from local, state, and national criminal record repositories, 
        including the criminal justice data communications 
        network complete a background study under section 144.057.  No 
        person may be involved in the management, operation, or control 
        of a provider, if the person has been convicted of a crime that 
        relates to the provision of home care services or to the 
        position, duties, or responsibilities undertaken by that person 
        in the operation of the home care provider, unless the person 
        can provide sufficient evidence of rehabilitation.  The 
        commissioner shall adopt rules for determining whether a crime 
        relates to home care services and what constitutes sufficient 
        evidence of rehabilitation.  The rules must require 
        consideration of the nature and seriousness of the crime; the 
        relationship of the crime to the purposes of home care licensure 
        and regulation; the relationship of the crime to the ability, 
        capacity, and fitness required to perform the duties and 
        discharge the responsibilities of the person's position; 
        mitigating circumstances or social conditions surrounding the 
        commission of the crime; the length of time elapsed since the 
        crime was committed; the seriousness of the risk to the home 
        care client's person or property; and other factors the 
        commissioner considers appropriate disqualified under the 
        provisions of chapter 245A.  Individuals disqualified under 
        these provisions can request a reconsideration, and if the 
        disqualification is set aside are then eligible to be involved 
        in the management, operation or control of the provider.  For 
        purposes of this section, owners of a home care provider subject 
        to the background check requirement are those individuals whose 
        ownership interest provides sufficient authority or control to 
        affect or change decisions related to the operation of the home 
        care provider.  An owner includes a sole proprietor, a general 
        partner, or any other individual whose individual ownership 
        interest can affect the management and direction of the policies 
        of the home care provider.  For the purposes of this section, 
        managerial officials subject to the background check requirement 
        are those individuals who provide "direct contact" as defined in 
        section 245A.04 or those individuals who have the responsibility 
        for the ongoing management or direction of the policies, 
        services, or employees of the home care provider.  Data 
        collected under this subdivision shall be classified as private 
        data under section 13.02, subdivision 12. 
           (b) Employees, contractors, and volunteers of a home care 
        provider or hospice are subject to the background study required 
        by section 144.057.  These individuals shall be disqualified 
        under the provisions of chapter 245A and Minnesota Rules, parts 
        9543.3000 to 9543.3090.  Until October 1, 1997, grounds for 
        disqualification shall also include the crimes specified under 
        Minnesota Rules, part 4668.0020, subpart 14, or a comparable 
        crime or act in another jurisdiction.  Nothing in this section 
        shall be construed to prohibit a home care provider from 
        requiring self-disclosure of criminal conviction information; 
        however, compliance with the provisions of section 144.057 
        constitutes compliance with the provisions of Minnesota Rules, 
        part 4668.0020, subpart 8. 
           (c) Notwithstanding the provisions of Minnesota Rules, part 
        4668.0020, subparts 12, 13, and 15, disqualifications under 
        paragraph (b), removal from a direct care position, and the 
        process for reconsiderations shall be governed by the provisions 
        of section 144.057. 
           (d) Unless superseded by the provisions of section 144.057 
        or this section, the provisions of Minnesota Rules, part 
        4668.0020, remain in effect. 
           (e) Termination of an employee in good faith reliance on 
        information or records obtained under paragraph (a) or (b) 
        regarding a confirmed conviction does not subject the home care 
        provider to civil liability or liability for reemployment 
        insurance benefits. 
           Sec. 3.  Minnesota Statutes 1996, section 245A.02, is 
        amended by adding a subdivision to read: 
           Subd. 6b.  [EXPERIENCE.] For purposes of child care 
        centers, "experience" includes paid or unpaid employment serving 
        children as a teacher, assistant teacher, aide, or a student 
        intern in a licensed child care center, in a public or nonpublic 
        school, or in a program licensed as a family day care or group 
        family day care provider. 
           Sec. 4.  Minnesota Statutes 1996, section 245A.02, 
        subdivision 15, is amended to read: 
           Subd. 15.  [RESPITE CARE SERVICES.] "Respite care services" 
        means temporary services provided to a person due to the absence 
        or need for relief of the primary caregiver, the person's family 
        member, or legal representative who is the primary caregiver and 
        principally responsible for the care and supervision of the 
        person.  Respite care services are those that provide the level 
        of supervision and care that is necessary to ensure the health 
        and safety of the person.  Respite care services do not include 
        services that are specifically directed toward the training and 
        habilitation of the person. 
           Sec. 5.  Minnesota Statutes 1996, section 245A.02, 
        subdivision 16, is amended to read: 
           Subd. 16.  [SCHOOL AGE CHILD.] "School age child," for 
        programs licensed or required to be licensed as a child care 
        center, means a child who is at least of sufficient age to have 
        attended the first day of kindergarten, or is eligible to enter 
        kindergarten within the next four months, but is younger than 13 
        years of age.  
           Sec. 6.  Minnesota Statutes 1996, section 245A.02, 
        subdivision 17, is amended to read: 
           Subd. 17.  [SCHOOL AGE CHILD CARE PROGRAM.] "School age 
        child care program" means a nonresidential program licensed or 
        required to be licensed as a child care center, serving more 
        than ten children with the primary purpose of providing child 
        care for school age children.  School age child care program 
        does not include programs such as scouting, boys clubs, girls 
        clubs, nor sports or art programs. 
           Sec. 7.  Minnesota Statutes 1996, section 245A.02, is 
        amended by adding a subdivision to read: 
           Subd. 18.  [SUPERVISION.] For purposes of child care 
        centers, "supervision" means when a program staff person is 
        within sight and hearing of a child at all times so that the 
        program staff can intervene to protect the health and safety of 
        the child.  When an infant is placed in a crib room to sleep, 
        supervision occurs when a staff person is within sight or 
        hearing of the infant.  When supervision of a crib room is 
        provided by sight or hearing, the center must have a plan to 
        address the other supervision component. 
           Sec. 8.  [245A.023] [IN-SERVICE TRAINING.] 
           For purposes of child care centers, in-service training 
        must be completed within the license period for which it is 
        required.  In-service training completed by staff persons as 
        required must be transferable upon a staff person's change in 
        employment to another child care program.  License holders shall 
        record all staff in-service training on forms prescribed by the 
        commissioner of human services. 
           Sec. 9.  Minnesota Statutes 1996, section 245A.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXCLUSION FROM LICENSURE.] Sections 245A.01 to 
        245A.16 do not apply to: 
           (1) residential or nonresidential programs that are 
        provided to a person by an individual who is related unless the 
        residential program is a foster care placement made by a local 
        social services agency or a licensed child-placing agency, 
        except as provided in subdivision 2a; 
           (2) nonresidential programs that are provided by an 
        unrelated individual to persons from a single related family; 
           (3) residential or nonresidential programs that are 
        provided to adults who do not abuse chemicals or who do not have 
        a chemical dependency, a mental illness, 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 economic security; 
           (5) programs for children enrolled in kindergarten to the 
        12th grade and prekindergarten special education in a school as 
        defined in section 120.101, subdivision 4, and programs serving 
        children in combined special education and regular 
        prekindergarten programs that are operated or assisted by the 
        commissioner of children, families, and learning; 
           (6) nonresidential programs primarily for children that 
        provide care or supervision, without charge for ten or fewer 
        days a year, and for periods of less than three hours a day 
        while the child's parent or legal guardian is in the same 
        building as the nonresidential program or present within another 
        building that is directly contiguous to the building in which 
        the nonresidential program is located; 
           (7) nursing homes or hospitals licensed by the commissioner 
        of health except as specified under section 245A.02; 
           (8) board and lodge facilities licensed by the commissioner 
        of health that provide services for five or more persons whose 
        primary diagnosis is mental illness who have refused an 
        appropriate residential program offered by a county agency.  
        This exclusion expires on July 1, 1990; 
           (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 or 
        programs operated by a park and recreation board of a city of 
        the first class whose primary purpose is to provide social and 
        recreational activities to school age children, provided the 
        program is approved by the park and recreation board; 
           (12) programs operated by a school as defined in section 
        120.101, subdivision 4, whose primary purpose is to provide 
        child care to school-age children, provided the program is 
        approved by the district's school board; 
           (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) nonresidential programs for nonhandicapped children 
        provided for a cumulative total of less than 30 days in any 
        12-month period; 
           (16) residential programs for persons with mental illness, 
        that are located in hospitals, until the commissioner adopts 
        appropriate rules; 
           (17) the religious instruction of school-age children; 
        Sabbath or Sunday schools; or the congregate care of children by 
        a church, congregation, or religious society during the period 
        used by the church, congregation, or religious society for its 
        regular worship; 
           (18) camps licensed by the commissioner of health under 
        Minnesota Rules, chapter 4630; 
           (19) mental health outpatient services for adults with 
        mental illness or children with emotional disturbance; 
           (20) residential programs serving school-age children whose 
        sole purpose is cultural or educational exchange, until the 
        commissioner adopts appropriate rules; 
           (21) unrelated individuals who provide out-of-home respite 
        care services to persons with mental retardation or related 
        conditions from a single related family for no more than 90 days 
        in a 12-month period and the respite care services are for the 
        temporary relief of the person's family or legal representative; 
           (22) respite care services provided as a home and 
        community-based service to a person with mental retardation or a 
        related condition, in the person's primary residence; 
           (23) community support services programs as defined in 
        section 245.462, subdivision 6, and family community support 
        services as defined in section 245.4871, subdivision 17; or 
           (24) the placement of a child by a birth parent or legal 
        guardian in a preadoptive home for purposes of adoption as 
        authorized by section 259.47. 
           For purposes of clause (6), a building is directly 
        contiguous to a building in which a nonresidential program is 
        located if it shares a common wall with the building in which 
        the nonresidential program is located or is attached to that 
        building by skyway, tunnel, atrium, or common roof. 
           Sec. 10.  Minnesota Statutes 1996, section 245A.04, 
        subdivision 3, is amended to read: 
           Subd. 3.  [BACKGROUND STUDY OF THE APPLICANT.] (a) Before 
        the commissioner issues a license, the commissioner shall 
        conduct a study of the individuals specified in paragraph (c), 
        clauses (1) to (5), according to rules of the commissioner.  
           Beginning January 1, 1997, the commissioner shall also 
        conduct a study of employees providing direct contact services 
        for nonlicensed personal care provider organizations described 
        in paragraph (c), clause (5). 
           The commissioner shall recover the cost of these background 
        studies through a fee of no more than $12 per study charged to 
        the personal care provider organization.  
           Beginning August 1, 1997, the commissioner shall conduct 
        all background studies required under this chapter for adult 
        foster care providers who are licensed by the commissioner of 
        human services and registered under chapter 144D.  The 
        commissioner shall conduct these background studies in 
        accordance with this chapter.  The commissioner shall initiate a 
        pilot project to conduct up to 5,000 background studies under 
        this chapter in programs with joint licensure as home- and 
        community-based services and adult foster care for people with 
        developmental disabilities when the license holder does not 
        reside in the foster care residence. 
           (b) Beginning July 1, 1997 1998, the commissioner shall 
        conduct a background study on individuals specified in paragraph 
        (c), clauses (1) to (5), who perform direct contact services in 
        a nursing home or a home care agency licensed under chapter 144A 
        or a boarding care home licensed under sections 144.50 to 
        144.58, when the subject of the study resides outside Minnesota; 
        the study must be at least as comprehensive as that of a 
        Minnesota resident and include a search of information from the 
        criminal justice data communications network in the state where 
        the subject of the study resides. 
           (c) The applicant, license holder, the bureau of criminal 
        apprehension, the commissioner of health and county agencies, 
        after written notice to the individual who is the subject of the 
        study, shall help with the study by giving the commissioner 
        criminal conviction data and reports about the maltreatment of 
        adults substantiated under section 626.557 and the maltreatment 
        of minors in licensed programs substantiated under section 
        626.556.  The individuals to be studied shall include: 
           (1) the applicant; 
           (2) persons over the age of 13 living in the household 
        where the licensed program will be provided; 
           (3) current employees or contractors of the applicant who 
        will have direct contact with persons served by the facility, 
        agency, or program; 
           (4) volunteers or student volunteers who have direct 
        contact with persons served by the program to provide program 
        services, if the contact is not directly supervised by the 
        individuals listed in clause (1) or (3); and 
           (5) any person who, as an individual or as a member of an 
        organization, exclusively offers, provides, or arranges for 
        personal care assistant services under the medical assistance 
        program as authorized under sections 256B.04, subdivision 16, 
        and 256B.0625, subdivision 19. 
           The juvenile courts shall also help with the study by 
        giving the commissioner existing juvenile court records on 
        individuals described in clause (2) relating to delinquency 
        proceedings held within either the five years immediately 
        preceding the application or the five years immediately 
        preceding the individual's 18th birthday, whichever time period 
        is longer.  The commissioner shall destroy juvenile records 
        obtained pursuant to this subdivision when the subject of the 
        records reaches age 23.  
           For purposes of this section and Minnesota Rules, part 
        9543.3070, a finding that a delinquency petition is proven in 
        juvenile court shall be considered a conviction in state 
        district court. 
           For purposes of this subdivision, "direct contact" means 
        providing face-to-face care, training, supervision, counseling, 
        consultation, or medication assistance to persons served by a 
        program.  For purposes of this subdivision, "directly supervised"
        means an individual listed in clause (1), (3), or (5) is within 
        sight or hearing of a volunteer to the extent that the 
        individual listed in clause (1), (3), or (5) is capable at all 
        times of intervening to protect the health and safety of the 
        persons served by the program who have direct contact with the 
        volunteer. 
           A study of an individual in clauses (1) to (5) shall be 
        conducted at least upon application for initial license and 
        reapplication for a license.  The commissioner is not required 
        to conduct a study of an individual at the time of reapplication 
        for a license or if the individual has been continuously 
        affiliated with a foster care provider licensed by the 
        commissioner of human services and registered under chapter 
        144D, other than a family day care or foster care license, if:  
        (i) a study of the individual was conducted either at the time 
        of initial licensure or when the individual became affiliated 
        with the license holder; (ii) the individual has been 
        continuously affiliated with the license holder since the last 
        study was conducted; and (iii) the procedure described in 
        paragraph (d) has been implemented and was in effect 
        continuously since the last study was conducted.  For the 
        purposes of this section, a physician licensed under chapter 147 
        is considered to be continuously affiliated upon the license 
        holder's receipt from the commissioner of health or human 
        services of the physician's background study results.  For 
        individuals who are required to have background studies under 
        clauses (1) to (5) and who have been continuously affiliated 
        with a foster care provider that is licensed in more than one 
        county, criminal conviction data may be shared among those 
        counties in which the foster care programs are licensed.  A 
        county agency's receipt of criminal conviction data from another 
        county agency shall meet the criminal data background study 
        requirements of this section. 
           The commissioner may also conduct studies on individuals 
        specified in clauses (3) and (4) when the studies are initiated 
        by: 
           (i) personnel pool agencies; 
           (ii) temporary personnel agencies; 
           (iii) educational programs that train persons by providing 
        direct contact services in licensed programs; and 
           (iv) professional services agencies that are not licensed 
        and which contract with licensed programs to provide direct 
        contact services or individuals who provide direct contact 
        services. 
           Studies on individuals in items (i) to (iv) must be 
        initiated annually by these agencies, programs, and 
        individuals.  Except for personal care provider organizations, 
        no applicant, license holder, or individual who is the subject 
        of the study shall pay any fees required to conduct the study. 
           (1) At the option of the licensed facility, rather than 
        initiating another background study on an individual required to 
        be studied who has indicated to the licensed facility that a 
        background study by the commissioner was previously completed, 
        the facility may make a request to the commissioner for 
        documentation of the individual's background study status, 
        provided that: 
           (i) the facility makes this request using a form provided 
        by the commissioner; 
           (ii) in making the request the facility informs the 
        commissioner that either: 
           (A) the individual has been continuously affiliated with a 
        licensed facility since the individual's previous background 
        study was completed, or since October 1, 1995, whichever is 
        shorter; or 
           (B) the individual is affiliated only with a personnel pool 
        agency, a temporary personnel agency, an educational program 
        that trains persons by providing direct contact services in 
        licensed programs, or a professional services agency that is not 
        licensed and which contracts with licensed programs to provide 
        direct contact services or individuals who provide direct 
        contact services; and 
           (iii) the facility provides notices to the individual as 
        required in paragraphs (a) to (d), and that the facility is 
        requesting written notification of the individual's background 
        study status from the commissioner.  
           (2) The commissioner shall respond to each request under 
        paragraph (1) with a written or electronic notice to the 
        facility and the study subject.  If the commissioner determines 
        that a background study is necessary, the study shall be 
        completed without further request from a licensed agency or 
        notifications to the study subject.  
           (3) When a background study is being initiated by a 
        licensed facility or a foster care provider that is also 
        registered under chapter 144D, a study subject affiliated with 
        multiple licensed facilities may attach to the background study 
        form a cover letter indicating the additional facilities' names, 
        addresses, and background study identification numbers.  When 
        the commissioner receives such notices, each facility identified 
        by the background study subject shall be notified of the study 
        results.  The background study notice sent to the subsequent 
        agencies shall satisfy those facilities' responsibilities for 
        initiating a background study on that individual. 
           (d) If an individual who is affiliated with a program or 
        facility regulated by the department of human services or 
        department of health or who is affiliated with a nonlicensed 
        personal care provider organization, is convicted of a crime 
        constituting a disqualification under Minnesota Rules, parts 
        9543.3000 to 9543.3090 subdivision 3d, the probation officer or 
        corrections agent shall notify the commissioner of the 
        conviction.  The commissioner, in consultation with the 
        commissioner of corrections, shall develop forms and information 
        necessary to implement this paragraph and shall provide the 
        forms and information to the commissioner of corrections for 
        distribution to local probation officers and corrections 
        agents.  The commissioner shall inform individuals subject to a 
        background study that criminal convictions for disqualifying 
        crimes will be reported to the commissioner by the corrections 
        system.  A probation officer, corrections agent, or corrections 
        agency is not civilly or criminally liable for disclosing or 
        failing to disclose the information required by this paragraph.  
        Upon receipt of disqualifying information, the commissioner 
        shall provide the notifications required in subdivision 3a, as 
        appropriate to agencies on record as having initiated a 
        background study or making a request for documentation of the 
        background study status of the individual.  This paragraph does 
        not apply to family day care and child foster care programs. 
           (e) The individual who is the subject of the study must 
        provide the applicant or license holder with sufficient 
        information to ensure an accurate study including the 
        individual's first, middle, and last name; home address, city, 
        county, and state of residence for the past five years; zip 
        code; sex; date of birth; and driver's license number.  The 
        applicant or license holder shall provide this information about 
        an individual in paragraph (c), clauses (1) to (5), on forms 
        prescribed by the commissioner.  By January 1, 2000, for 
        background studies conducted by the department of human 
        services, the commissioner shall implement a system for the 
        electronic transmission of:  (1) background study information to 
        the commissioner; and (2) background study results to the 
        license holder.  The commissioner may request additional 
        information of the individual, which shall be optional for the 
        individual to provide, such as the individual's social security 
        number or race. 
           (f) Except for child foster care, adult foster care, and 
        family day care homes, a study must include information related 
        to names of substantiated perpetrators of maltreatment of 
        vulnerable adults that has been received by the commissioner as 
        required under section 626.557, subdivision 9c, paragraph (i), 
        and the commissioner's records relating to the maltreatment of 
        minors in licensed programs, information from juvenile courts as 
        required in paragraph (c) for persons listed in paragraph (c), 
        clause (2), and information from the bureau of criminal 
        apprehension.  For child foster care, adult foster care, and 
        family day care homes, the study must include information from 
        the county agency's record of substantiated maltreatment of 
        adults, and the maltreatment of minors, information from 
        juvenile courts as required in paragraph (c) for persons listed 
        in paragraph (c), clause (2), and information from the bureau of 
        criminal apprehension.  The commissioner may also review arrest 
        and investigative information from the bureau of criminal 
        apprehension, the commissioner of health, a county attorney, 
        county sheriff, county agency, local chief of police, other 
        states, the courts, or the Federal Bureau of Investigation if 
        the commissioner has reasonable cause to believe the information 
        is pertinent to the disqualification of an individual listed in 
        paragraph (c), clauses (1) to (5).  The commissioner is not 
        required to conduct more than one review of a subject's records 
        from the Federal Bureau of Investigation if a review of the 
        subject's criminal history with the Federal Bureau of 
        Investigation has already been completed by the commissioner and 
        there has been no break in the subject's affiliation with the 
        license holder who initiated the background studies. 
           When the commissioner has reasonable cause to believe that 
        further pertinent information may exist on the subject, the 
        subject shall provide a set of classifiable fingerprints 
        obtained from an authorized law enforcement agency.  For 
        purposes of requiring fingerprints, the commissioner shall be 
        considered to have reasonable cause under, but not limited to, 
        the following circumstances: 
           (1) information from the bureau of criminal apprehension 
        indicates that the subject is a multistate offender; 
           (2) information from the bureau of criminal apprehension 
        indicates that multistate offender status is undetermined; or 
           (3) the commissioner has received a report from the subject 
        or a third party indicating that the subject has a criminal 
        history in a jurisdiction other than Minnesota. 
           (g) An applicant's or license holder's failure or refusal 
        to cooperate with the commissioner is reasonable cause 
        to disqualify a subject, deny an a license application or 
        immediately suspend, suspend, or revoke 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. 
           (h) 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.  
           (i) No person in paragraph (c), clause (1), (2), (3), (4), 
        or (5) who is disqualified as a result of this section may be 
        retained by the agency in a position involving direct contact 
        with persons served by the program. 
           (j) Termination of persons in paragraph (c), clause (1), 
        (2), (3), (4), or (5), made in good faith reliance on a notice 
        of disqualification provided by the commissioner shall not 
        subject the applicant or license holder to civil liability. 
           (k) The commissioner may establish records to fulfill the 
        requirements of this section. 
           (l) The commissioner may not disqualify an individual 
        subject to a study under this section because that person has, 
        or has had, a mental illness as defined in section 245.462, 
        subdivision 20. 
           (m) An individual who is subject to an applicant background 
        study under this section and whose disqualification in 
        connection with a license would be subject to the limitations on 
        reconsideration set forth in subdivision 3b, paragraph (c), 
        shall be disqualified for conviction of the crimes specified in 
        the manner specified in subdivision 3b, paragraph (c).  The 
        commissioner of human services shall amend Minnesota Rules, part 
        9543.3070, to conform to this section. 
           (n) An individual subject to disqualification under this 
        subdivision has the applicable rights in subdivision 3a, 3b, or 
        3c. 
           Sec. 11.  Minnesota Statutes 1996, section 245A.04, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [NOTIFICATION TO SUBJECT AND LICENSE HOLDER OF 
        STUDY RESULTS; DETERMINATION OF RISK OF HARM.] (a) The 
        commissioner shall notify the applicant or license holder and 
        the individual who is the subject of the study, in writing or by 
        electronic transmission, of the results of the study.  When the 
        study is completed, a notice that the study was undertaken and 
        completed shall be maintained in the personnel files of the 
        program. 
           The commissioner shall notify the individual studied if the 
        information in the study indicates the individual is 
        disqualified from direct contact with persons served by the 
        program.  The commissioner shall disclose the 
        information causing disqualification and instructions on how to 
        request a reconsideration of the disqualification to the 
        individual studied.  An applicant or license holder who is not 
        the subject of the study shall be informed that the commissioner 
        has found information that disqualifies the subject from direct 
        contact with persons served by the program.  However, the 
        applicant or license holder shall not be told what that 
        information is only the individual studied must be informed of 
        the information contained in the subject's background study 
        unless the only basis for the disqualification is failure to 
        cooperate, the data practices act provides for release of the 
        information, or the individual studied authorizes the release of 
        the information. 
           (b) If the commissioner determines that the individual 
        studied has a disqualifying characteristic, the commissioner 
        shall review the information immediately available and make a 
        determination as to the subject's immediate risk of harm to 
        persons served by the program where the individual studied will 
        have direct contact.  The commissioner shall consider all 
        relevant information available, including the following factors 
        in determining the immediate risk of harm:  the recency of the 
        disqualifying characteristic, the recency of discharge from 
        probation for the crimes; the number of disqualifying 
        characteristics; the intrusiveness or violence of the 
        disqualifying characteristic; the vulnerability of the victim 
        involved in the disqualifying characteristic; and the similarity 
        of the victim to the persons served by the program where the 
        individual studied will have direct contact.  The commissioner 
        may determine that the evaluation of the information immediately 
        available gives the commissioner reason to believe one of the 
        following: 
           (1) The individual poses an imminent risk of harm to 
        persons served by the program where the individual studied will 
        have direct contact.  If the commissioner determines that an 
        individual studied poses an imminent risk of harm to persons 
        served by the program where the individual studied will have 
        direct contact, the individual and the license holder must be 
        sent a notice of disqualification.  The commissioner shall order 
        the license holder to immediately remove the individual studied 
        from direct contact.  The notice to the individual studied must 
        include an explanation of the basis of this determination. 
           (2) The individual poses a risk of harm requiring 
        continuous supervision while providing direct contact services 
        during the period in which the subject may request a 
        reconsideration.  If the commissioner determines that an 
        individual studied poses a risk of harm that requires continuous 
        supervision, the individual and the license holder must be sent 
        a notice of disqualification.  The commissioner shall order the 
        license holder to immediately remove the individual studied from 
        direct contact services or assure that the individual studied is 
        within sight or hearing of another staff person when providing 
        direct contact services during the period in which the 
        individual may request a reconsideration of the 
        disqualification.  If the individual studied does not submit a 
        timely request for reconsideration, or the individual submits a 
        timely request for reconsideration, but the disqualification is 
        not set aside for that license holder, the license holder will 
        be notified of the disqualification and ordered to immediately 
        remove the individual from any position allowing direct contact 
        with persons receiving services from the license holder. 
           (3) The individual does not pose an imminent risk of harm 
        or a risk of harm requiring continuous supervision while 
        providing direct contact services during the period in which the 
        subject may request a reconsideration.  If the commissioner 
        determines that an individual studied does not pose a risk of 
        harm that requires continuous supervision, only the individual 
        must be sent a notice of disqualification.  The license holder 
        must be sent a notice that more time is needed to complete the 
        individual's background study.  If the individual studied 
        submits a timely request for reconsideration, and if the 
        disqualification is set aside for that license holder, the 
        license holder will receive the same notification received by 
        license holders in cases where the individual studied has no 
        disqualifying characteristic.  If the individual studied does 
        not submit a timely request for reconsideration, or the 
        individual submits a timely request for reconsideration, but the 
        disqualification is not set aside for that license holder, the 
        license holder will be notified of the disqualification and 
        ordered to immediately remove the individual from any position 
        allowing direct contact with persons receiving services from the 
        license holder. 
           Sec. 12.  Minnesota Statutes 1996, section 245A.04, 
        subdivision 3b, is amended to read: 
           Subd. 3b.  [RECONSIDERATION OF DISQUALIFICATION.] (a) 
        Within 30 days after receiving notice of disqualification under 
        subdivision 3a, The individual who is the subject of the study 
        disqualification may request a reconsideration of the notice of 
        disqualification.  
           The individual must submit the request for reconsideration 
        to the commissioner in writing.  A request for reconsideration 
        for an individual who has been sent a notice of disqualification 
        under subdivision 3a, paragraph (b), clause (1) or (2), must be 
        submitted within 30 calendar days of the disqualified 
        individual's receipt of the notice of disqualification.  A 
        request for reconsideration for an individual who has been sent 
        a notice of disqualification under subdivision 3a, paragraph 
        (b), clause (3), must be submitted within 15 calendar days of 
        the disqualified individual's receipt of the notice of 
        disqualification.  Removal of a disqualified individual from 
        direct contact shall be ordered if the individual does not 
        request reconsideration within the prescribed time, and for an 
        individual who submits a timely request for reconsideration, if 
        the disqualification is not set aside.  The individual must 
        present information to show showing that: 
           (1) the information the commissioner relied upon is 
        incorrect or inaccurate.  If the basis of a reconsideration 
        request is that a maltreatment determination or disposition 
        under section 626.556 or 626.557 is incorrect, and the 
        commissioner has issued a final order in an appeal of that 
        determination or disposition under section 256.045, the 
        commissioner's order is conclusive on the issue of maltreatment; 
        or 
           (2) the subject of the study does not pose a risk of harm 
        to any person served by the applicant or license holder. 
           (b) The commissioner may set aside the disqualification 
        under this section if the commissioner finds that the 
        information the commissioner relied upon is incorrect or the 
        individual does not pose a risk of harm to any person served by 
        the applicant or license holder.  In determining that an 
        individual does not pose a risk of harm, the commissioner shall 
        review consider the consequences of the event or events 
        that could lead to disqualification, whether there is more than 
        one disqualifying event, the vulnerability of the victim at the 
        time of the event, the time elapsed without a repeat of the same 
        or similar event, and documentation of successful completion by 
        the individual studied of training or rehabilitation pertinent 
        to the event, and any other information relevant to 
        reconsideration.  In reviewing a disqualification under this 
        section, the commissioner shall give preeminent weight to the 
        safety of each person to be served by the license holder or 
        applicant over the interests of the license holder or applicant. 
           (c) Unless the information the commissioner relied on in 
        disqualifying an individual is incorrect, the commissioner may 
        not set aside the disqualification of an individual in 
        connection with a license to provide family day care for 
        children, foster care for children in the provider's own home, 
        or foster care or day care services for adults in the provider's 
        own home if: 
           (1) less than ten years have passed since the discharge of 
        the sentence imposed for the offense; and the individual has 
        been convicted of a violation of any offense listed in 
        section sections 609.20 (manslaughter in the first degree), 
        609.205 (manslaughter in the second degree), criminal vehicular 
        homicide under 609.21 (criminal vehicular homicide and injury), 
        609.215 (aiding suicide or aiding attempted suicide), felony 
        violations under 609.221 to 609.2231 (felony violations of 
        assault in the first, second, third, or fourth degree), 609.713 
        (terroristic threats), 609.235 (use of drugs to injure or to 
        facilitate crime), 609.24 (simple robbery), 609.245 (aggravated 
        robbery), 609.25 (kidnapping), 609.255 (false imprisonment), 
        609.561 or 609.562 (arson in the first or second degree), 609.71 
        (riot), burglary in the first or second degree under 609.582 
        (burglary in the first or second degree), 609.66 (reckless use 
        of a gun or dangerous weapon or intentionally pointing a gun at 
        or towards a human being), 609.665 (setting a spring gun guns), 
        609.67 (unlawfully owning, possessing, or operating a machine 
        gun guns and short-barreled shotguns), 609.749 (harassment; 
        stalking), 152.021 or 152.022 (controlled substance crime in the 
        first or second degree), 152.023, subdivision 1, clause (3) or 
        (4), or subdivision 2, clause (4) (controlled substance crime in 
        the third degree), 152.024, subdivision 1, clause (2), (3), or 
        (4) (controlled substance crime in the fourth degree), 609.224, 
        subdivision 2, paragraph (c) (fifth-degree assault by a 
        caregiver against a vulnerable adult), 609.228 (great bodily 
        harm caused by distribution of drugs), 609.23 (mistreatment of 
        persons confined), 609.231 (mistreatment of residents or 
        patients), 609.2325 (criminal abuse of a vulnerable adult), 
        609.233 (criminal neglect of a vulnerable adult), 609.2335 
        (financial exploitation of a vulnerable adult), 609.234 (failure 
        to report), 609.265 (abduction), 609.2664 to 609.2665 
        (manslaughter of an unborn child in the first or second degree), 
        609.267 to 609.2672 (assault of an unborn child in the first, 
        second, or third degree), 609.268 (injury or death of an unborn 
        child in the commission of a crime), 617.293 (disseminating or 
        displaying harmful material to minors), 609.378 (neglect or 
        endangerment of a child), a gross misdemeanor offense under 
        609.377 (a gross misdemeanor offense of malicious punishment of 
        a child), 609.72, subdivision 3 (disorderly conduct against a 
        vulnerable adult); or an attempt or conspiracy to commit any of 
        these offenses, as each of these offenses is defined in 
        Minnesota Statutes; or an offense in any other state, the 
        elements of which are substantially similar to the elements of 
        any of the foregoing offenses; 
           (2) regardless of how much time has passed since the 
        discharge of the sentence imposed for the offense, the 
        individual was convicted of a violation of any offense listed in 
        sections 609.185 to 609.195 (murder in the first, second, or 
        third degree), 609.2661 to 609.2663 (murder of an unborn child 
        in the first, second, or third degree), a felony offense under 
        609.377 (a felony offense of malicious punishment of a child), 
        609.322 (soliciting solicitation, inducement, or and promotion 
        of prostitution), 609.323 (receiving profit derived from 
        prostitution), 609.342 to 609.345 (criminal sexual conduct in 
        the first, second, third, or fourth degree), 609.352 
        (solicitation of children to engage in sexual conduct), 617.246 
        (use of minors in a sexual performance), 617.247 (possession of 
        pictorial representations of a minor), 609.365 (incest), or an 
        attempt or conspiracy to commit any of these offenses as defined 
        in Minnesota Statutes, or an offense in any other state, the 
        elements of which are substantially similar to any of the 
        foregoing offenses; 
           (3) within the seven years preceding the study, the 
        individual committed an act that constitutes maltreatment of a 
        child under section 626.556, subdivision 10e, and that resulted 
        in substantial bodily harm as defined in section 609.02, 
        subdivision 7a, or substantial mental or emotional harm as 
        supported by competent psychological or psychiatric evidence; or 
           (4) within the seven years preceding the study, the 
        individual was determined under section 626.557 to be the 
        perpetrator of a substantiated incident of abuse maltreatment of 
        a vulnerable adult that resulted in substantial bodily harm as 
        defined in section 609.02, subdivision 7a, or substantial mental 
        or emotional harm as supported by competent psychological or 
        psychiatric evidence. 
           In the case of any ground for disqualification under 
        clauses (1) to (4), if the act was committed by an individual 
        other than the applicant or license holder residing in the 
        applicant's or license holder's home, the applicant or license 
        holder may seek reconsideration when the individual who 
        committed the act no longer resides in the home.  
           The disqualification periods provided under clauses (1), 
        (3), and (4) are the minimum applicable disqualification 
        periods.  The commissioner may determine that an individual 
        should continue to be disqualified from licensure because the 
        license holder or applicant poses a risk of harm to a person 
        served by that individual after the minimum disqualification 
        period has passed. 
           (d) The commissioner shall respond in writing or by 
        electronic transmission to all reconsideration requests for 
        which the basis for the request is that the information relied 
        upon by the commissioner to disqualify is incorrect or 
        inaccurate within 30 working days of receipt of a request and 
        all relevant information.  If the basis for the request is that 
        the individual does not pose a risk of harm, the commissioner 
        shall respond to the request within 15 working days after 
        receiving the request for reconsideration and all relevant 
        information.  If the disqualification is set aside, the 
        commissioner shall notify the applicant or license holder in 
        writing or by electronic transmission of the decision. 
           (e) Except as provided in subdivision 3c, the 
        commissioner's decision to disqualify an individual, including 
        the decision to grant or deny a reconsideration of rescission or 
        set aside a disqualification under this subdivision, or to set 
        aside or uphold the results of the study under subdivision 
        3 this section, is the final administrative agency action and 
        shall not be subject to further review in a contested case under 
        chapter 14 involving a negative licensing action appeal taken in 
        response to the disqualification or involving an accuracy and 
        completeness appeal under section 13.04. 
           Sec. 13.  Minnesota Statutes 1996, section 245A.04, 
        subdivision 3c, is amended to read: 
           Subd. 3c.  [CONTESTED CASE.] If a disqualification is not 
        set aside, a person who, on or after the effective date of rules 
        adopted under subdivision 3, paragraph (i), is an employee of an 
        employer, as defined in section 179A.03, subdivision 15, may 
        request a contested case hearing under chapter 14.  Rules 
        adopted under this chapter may not preclude an employee in a 
        contested case hearing for disqualification from submitting 
        evidence concerning information gathered under subdivision 3, 
        paragraph (e). 
           Sec. 14.  Minnesota Statutes 1996, section 245A.04, is 
        amended by adding a subdivision to read: 
           Subd. 3d.  [DISQUALIFICATION.] When a background study 
        completed under subdivision 3 shows any of the following:  a 
        conviction of one or more crimes listed in clauses (1) to (4); 
        the individual has admitted to or a preponderance of the 
        evidence indicates the individual has committed an act or acts 
        that meet the definition of any of the crimes listed in clauses 
        (1) to (4); or an administrative determination listed under 
        clause (4), the individual shall be disqualified from any 
        position allowing direct contact with persons receiving services 
        from the license holder: 
           (1) regardless of how much time has passed since the 
        discharge of the sentence imposed for the offense, and unless 
        otherwise specified, regardless of the level of the conviction, 
        the individual was convicted of any of the following offenses:  
        sections 609.185 (murder in the first degree); 609.19 (murder in 
        the second degree); 609.195 (murder in the third degree); 
        609.2661 (murder of an unborn child in the first degree); 
        609.2662 (murder of an unborn child in the second degree); 
        609.2663 (murder of an unborn child in the third degree); 
        609.322 (solicitation, inducement, and promotion of 
        prostitution); 609.323 (receiving profit derived from 
        prostitution); 609.342 (criminal sexual conduct in the first 
        degree); 609.343 (criminal sexual conduct in the second degree); 
        609.344 (criminal sexual conduct in the third degree); 609.345 
        (criminal sexual conduct in the fourth degree); 609.352 
        (solicitation of children to engage in sexual conduct); 609.365 
        (incest); felony offense under 609.377 (malicious punishment of 
        a child); 617.246 (use of minors in sexual performance 
        prohibited); 617.247 (possession of pictorial representations of 
        minors); or attempt or conspiracy to commit any of these 
        offenses as defined in Minnesota Statutes, or an offense in any 
        other state or country, where the elements are substantially 
        similar to any of the offenses listed in this clause; 
           (2) if less than 15 years have passed since the discharge 
        of the sentence imposed for the offense; and the individual has 
        received a felony conviction for a violation of any of these 
        offenses:  sections 609.20 (manslaughter in the first degree); 
        609.205 (manslaughter in the second degree); 609.21 (criminal 
        vehicular homicide and injury); 609.215 (suicide); 609.221 to 
        609.2231 (assault in the first, second, third, or fourth 
        degree); repeat offenses under 609.224 (assault in the fifth 
        degree); 609.2242 and 609.2243 (domestic assault; sentencing; 
        repeat domestic assault); repeat offenses under 609.3451 
        (criminal sexual conduct in the fifth degree); 609.713 
        (terroristic threats); 609.235 (use of drugs to injure or 
        facilitate crime); 609.24 (simple robbery); 609.245 (aggravated 
        robbery); 609.25 (kidnapping); 609.255 (false imprisonment); 
        609.561 (arson in the first degree); 609.562 (arson in the 
        second degree); 609.563 (arson in the third degree); repeat 
        offenses under 617.23 (indecent exposure; penalties); repeat 
        offenses under 617.241 (obscene materials and performances; 
        distribution and exhibition prohibited; penalty); 609.71 (riot); 
        609.66 (dangerous weapons); 609.67 (machine guns and 
        short-barreled shotguns); 609.749 (harassment; stalking; 
        penalties); 609.228 (great bodily harm caused by distribution of 
        drugs); 609.2325 (criminal abuse of a vulnerable adult); 
        609.2664 (manslaughter of an unborn child in the first degree); 
        609.2665 (manslaughter of an unborn child in the second degree); 
        609.267 (assault of an unborn child in the first degree); 
        609.2671 (assault of an unborn child in the second degree); 
        609.268 (injury or death of an unborn child in the commission of 
        a crime); 609.378 (neglect or endangerment of a child); 609.324, 
        subdivision 1 (other prohibited acts); 609.52 (theft); 609.2335 
        (financial exploitation of a vulnerable adult); 609.521 
        (possession of shoplifting gear); 609.582 (burglary); 609.625 
        (aggravated forgery); 609.63 (forgery); 609.631 (check forgery; 
        offering a forged check); 609.635 (obtaining signature by false 
        pretense); 609.27 (coercion); 609.275 (attempt to coerce); 
        609.687 (adulteration); 260.221 (grounds for termination of 
        parental rights); and chapter 152 (drugs; controlled 
        substance).  An attempt or conspiracy to commit any of these 
        offenses, as each of these offenses is defined in Minnesota 
        Statutes; or an offense in any other state or country, the 
        elements of which are substantially similar to the elements of 
        the offenses in this clause.  If the individual studied is 
        convicted of one of the felonies listed in this clause, but the 
        sentence is a gross misdemeanor or misdemeanor disposition, the 
        look-back period for the conviction is the period applicable to 
        the disposition, that is the period for gross misdemeanors or 
        misdemeanors; 
           (3) if less than ten years have passed since the discharge 
        of the sentence imposed for the offense; and the individual has 
        received a gross misdemeanor conviction for a violation of any 
        of the following offenses:  sections 609.224 (assault in the 
        fifth degree); 609.2242 and 609.2243 (domestic assault); 
        violation of an order for protection under 518B.01, subdivision 
        14; 609.3451 (criminal sexual conduct in the fifth degree); 
        repeat offenses under 609.746 (interference with privacy); 
        repeat offenses under 617.23 (indecent exposure); 617.241 
        (obscene materials and performances); 617.243 (indecent 
        literature, distribution); 617.293 (harmful materials; 
        dissemination and display to minors prohibited); 609.71 (riot); 
        609.66 (dangerous weapons); 609.749 (harassment; stalking; 
        penalties); 609.224, subdivision 2, paragraph (c) (assault in 
        the fifth degree by a caregiver against a vulnerable adult); 
        609.23 (mistreatment of persons confined); 609.231 (mistreatment 
        of residents or patients); 609.2325 (criminal abuse of a 
        vulnerable adult); 609.233 (criminal neglect of a vulnerable 
        adult); 609.2335 (financial exploitation of a vulnerable adult); 
        609.234 (failure to report maltreatment of a vulnerable adult); 
        609.72, subdivision 3 (disorderly conduct against a vulnerable 
        adult); 609.265 (abduction); 609.378 (neglect or endangerment of 
        a child); 609.377 (malicious punishment of a child); 609.324, 
        subdivision 1a (other prohibited acts; minor engaged in 
        prostitution); 609.33 (disorderly house); 609.52 (theft); 
        609.582 (burglary); 609.631 (check forgery; offering a forged 
        check); 609.275 (attempt to coerce); or an attempt or conspiracy 
        to commit any of these offenses, as each of these offenses is 
        defined in Minnesota Statutes; or an offense in any other state 
        or country, the elements of which are substantially similar to 
        the elements of any of the offenses listed in this clause.  If 
        the defendant is convicted of one of the gross misdemeanors 
        listed in this clause, but the sentence is a misdemeanor 
        disposition, the look-back period for the conviction is the 
        period applicable to misdemeanors; 
           (4) if less than seven years have passed since the 
        discharge of the sentence imposed for the offense; and the 
        individual has received a misdemeanor conviction for a violation 
        of any of the following offenses:  sections 609.224 (assault in 
        the fifth degree); 609.2242 (domestic assault); violation of an 
        order for protection under 518B.01 (domestic abuse act); 
        violation of an order for protection under 609.3232 (protective 
        order authorized; procedures; penalties); 609.746 (interference 
        with privacy); 609.79 (obscene or harassing phone calls); 
        609.795 (letter, telegram, or package; opening; harassment); 
        617.23 (indecent exposure; penalties); 609.2672 (assault of an 
        unborn child in the third degree); 617.293 (harmful materials; 
        dissemination and display to minors prohibited); 609.66 
        (dangerous weapons); 609.665 (spring guns); 609.2335 (financial 
        exploitation of a vulnerable adult); 609.234 (failure to report 
        maltreatment of a vulnerable adult); 609.52 (theft); 609.27 
        (coercion); or an attempt or conspiracy to commit any of these 
        offenses, as each of these offenses is defined in Minnesota 
        Statutes; or an offense in any other state or country, the 
        elements of which are substantially similar to the elements of 
        any of the offenses listed in this clause; failure to make 
        required reports under section 626.556, subdivision 3, or 
        626.557, subdivision 3, for incidents in which:  (i) the final 
        disposition under section 626.556 or 626.557 was substantiated 
        maltreatment, and (ii) the maltreatment was recurring or 
        serious; or substantiated serious or recurring maltreatment of a 
        minor under section 626.556 or of a vulnerable adult under 
        section 626.557 for which there is a preponderance of evidence 
        that the maltreatment occurred, and that the subject was 
        responsible for the maltreatment.  For the purposes of this 
        section, serious maltreatment means sexual abuse; maltreatment 
        resulting in death; or maltreatment resulting in serious injury 
        which reasonably requires the care of a physician whether or not 
        the care of a physician was sought, including:  bruises, bites, 
        skin laceration or tissue damage; fractures; dislocations; 
        evidence of internal injuries; head injuries with loss of 
        consciousness; extensive second-degree or third-degree burns and 
        other burns for which complications are present; irreversible 
        mobility or avulsion of teeth; injuries to the eyeball; 
        ingestion of foreign substances and objects that are harmful; 
        near drowning; and heat exhaustion or sunstroke.  For the 
        purposes of this section, recurring maltreatment means more than 
        one incident of maltreatment for which there is a preponderance 
        of evidence that the maltreatment occurred, and that the subject 
        was responsible for the maltreatment. 
           Sec. 15.  Minnesota Statutes 1996, section 245A.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INSPECTIONS; WAIVER.] (a) Before issuing a an 
        initial 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 an initial license under 
        subdivision 7.  If the commissioner issues a provisional an 
        initial license under subdivision 7, these requirements must be 
        completed within one year after the issuance of a provisional an 
        initial 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 
        benefiting from the program.  
           Sec. 16.  Minnesota Statutes 1996, section 245A.04, 
        subdivision 5, is amended to read: 
           Subd. 5.  [COMMISSIONER'S RIGHT OF ACCESS.] When the 
        commissioner is exercising the powers conferred by sections 
        245A.01 to 245A.15 this chapter, 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, maltreatment, or other violation 
        of applicable laws or rules.  In conducting inspections, the 
        commissioner may request and shall receive assistance from other 
        state, county, and municipal governmental agencies and 
        departments.  The applicant or license holder shall allow the 
        commissioner to photocopy, photograph, and make audio and video 
        tape recordings during the inspection of the program at the 
        commissioner's expense.  The commissioner shall obtain a court 
        order or the consent of the subject of the records or the 
        parents or legal guardian of the subject before photocopying 
        hospital medical records.  
           Persons served by the program have the right to refuse to 
        consent to be interviewed, photographed, or audio or videotaped. 
        Failure or refusal of an applicant or license holder to fully 
        comply with this subdivision is reasonable cause for the 
        commissioner to deny the application or immediately suspend or 
        revoke the license. 
           Sec. 17.  Minnesota Statutes 1996, section 245A.04, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COMMISSIONER'S EVALUATION.] Before granting, 
        suspending, revoking, or making probationary conditional 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, available consumer evaluations of the program, and 
        information about the 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.  Prior 
        to the adoption of rules establishing disqualification 
        standards, the commissioner shall forward the proposed rules to 
        the commissioner of human rights for review and recommendation 
        concerning the protection of individual rights.  The 
        recommendation of the commissioner of human rights is not 
        binding on the commissioner of human services.  
           Sec. 18.  Minnesota Statutes 1996, section 245A.04, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ISSUANCE OF A LICENSE; PROVISIONAL EXTENSION OF 
        A 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 an initial 
        license for a period not to exceed one year two years if:  
           (1) the commissioner is unable to conduct the evaluation or 
        observation required by subdivision 4, paragraph (a), clauses (3)
        and (4), because the program is not yet operational; 
           (2) certain records and documents are not available because 
        persons are not yet receiving services from the program; and 
           (3) the applicant complies with applicable laws and rules 
        in all other respects.  
        A provisional license must not be issued except at the time that 
        a license is first issued to an applicant. 
           (c) A decision by the commissioner to issue a license does 
        not guarantee that any person or persons will be placed or cared 
        for in the licensed program.  A license shall not be 
        transferable to another individual, corporation, partnership, 
        voluntary association, other organization, or controlling or to 
        another location. 
           For purposes of reimbursement for meals only, under the 
        Child and Adult Care Food Program, Code of Federal Regulations, 
        title 7, subtitle B, chapter II, subchapter A, part 226, 
        relocation within the same county by a licensed family day care 
        provider, shall be considered an extension of the license for a 
        period of no more than 30 calendar days or until the new license 
        is issued, whichever occurs first, provided the county agency 
        has determined the family day care provider meets licensure 
        requirements at the new location. 
           Unless otherwise specified by statute, all licenses expire 
        at 12:01 a.m. on the day after the expiration date stated on the 
        license.  A license holder must apply for and be granted a new 
        license to operate the program or the program must not be 
        operated after the expiration date.  
           Sec. 19.  Minnesota Statutes 1996, section 245A.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONTENTS OF CORRECTION ORDERS OR FINES.] 
        (a) 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 or impose a fine on the 
        applicant or license holder.  The correction order or fine 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; and 
           (4) if a fine is imposed, the amount of the fine. 
           (b) Nothing in this section prohibits the commissioner from 
        proposing a sanction as specified in section 245A.07, prior to 
        issuing a correction order or fine. 
           Sec. 20.  Minnesota Statutes 1996, section 245A.06, 
        subdivision 3, is amended to read: 
           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 impose a fine.  If a fine was imposed and 
        the violation was not corrected, the commissioner may impose an 
        additional fine.  This section does not prohibit the 
        commissioner from seeking a court order, denying an application, 
        or suspending, revoking, or making probationary conditional the 
        license in addition to ordering imposing a fine. 
           Sec. 21.  Minnesota Statutes 1996, section 245A.06, 
        subdivision 4, is amended to read: 
           Subd. 4.  [NOTICE OF FINE; APPEAL RECONSIDERATION OF FINE.] 
        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 
        responsibility for payment of fines in subdivision 7 and the 
        right to a contested case hearing under chapter 14 request 
        reconsideration of the fine.  The license holder may appeal 
        request reconsideration of the order to forfeit a fine by 
        notifying the commissioner by certified mail within 15 20 
        calendar days after receiving the order.  A timely appeal 
        request for reconsideration shall stay forfeiture of the fine 
        until the commissioner issues a final order under section 
        245A.08, subdivision 5 decision on the request for 
        reconsideration.  The request for reconsideration must be in 
        writing and: 
           (1) specify the parts of the violation that are alleged to 
        be in error; 
           (2) explain why they are in error; 
           (3) include documentation to support the allegation of 
        error; and 
           (4) any other information relevant to the fine or the 
        amount of the fine. 
           The commissioner's disposition of a request for 
        reconsideration is final and not subject to appeal under chapter 
        14. 
           Sec. 22.  Minnesota Statutes 1996, section 245A.06, 
        subdivision 5, is amended to read: 
           Subd. 5.  [FORFEITURE OF FINES.] The license holder shall 
        pay the fines assessed on or before the payment date specified 
        in the commissioner's order.  If the license holder fails to 
        fully comply with the order, the commissioner shall issue a 
        second fine or suspend the license until the license holder 
        complies.  If the license holder receives state funds, the 
        state, county, or municipal agencies or departments responsible 
        for administering the funds shall withhold payments and recover 
        any payments made while the license is suspended for failure to 
        pay a fine.  
           Sec. 23.  Minnesota Statutes 1996, section 245A.06, 
        subdivision 5a, is amended to read: 
           Subd. 5a.  [ACCRUAL OF FINES.] A license holder shall 
        promptly notify the commissioner of human services, in writing, 
        when a violation specified in an order to forfeit is corrected.  
        A fine assessed for a violation shall stop accruing when the 
        commissioner receives the written notice.  The commissioner 
        shall reinspect the program within three working days after 
        receiving the notice.  If upon reinspection the commissioner 
        determines that a violation has not been corrected as indicated 
        by the order to forfeit, accrual of the daily fine resumes on 
        the date of reinspection and the amount of fines that otherwise 
        would have accrued between the date the commissioner received 
        the notice and date of the reinspection is added to the total 
        assessment due from the license holder the commissioner may 
        issue a second fine.  The commissioner shall notify the license 
        holder by certified mail that accrual of the a second fine has 
        resumed been assessed.  The license holder may challenge the 
        resumption in a contested case under chapter 14 by written 
        request within 15 days after receipt of the notice of resumption.
        Recovery of the resumed fine must be stayed if a controlling 
        individual or a legal representative on behalf of the license 
        holder makes a written request for a hearing.  The request for 
        hearing, however, may not stay accrual of the daily fine for 
        violations that have not been corrected.  The cost of 
        reinspection conducted under this subdivision for uncorrected 
        violations must be added to the total amount of accrued fines 
        due from the license holder request reconsideration of the 
        second fine under the provisions of subdivision 4. 
           Sec. 24.  Minnesota Statutes 1996, section 245A.06, 
        subdivision 6, is amended to read: 
           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 
        maltreatment 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 identified in the 
        commissioner's correction forfeiture order. 
           Sec. 25.  Minnesota Statutes 1996, section 245A.06, 
        subdivision 7, is amended to read: 
           Subd. 7.  [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 
        fine has been assessed, the license holder may not avoid payment 
        by closing, selling, or otherwise transferring the licensed 
        program to a third party.  In such an event, the license holder 
        will be personally liable for payment.  In the case of a 
        corporation, each controlling individual is personally and 
        jointly liable for payment. 
           Fines for child care centers must be assessed according to 
        this section. 
           Sec. 26.  Minnesota Statutes 1996, section 245A.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SANCTIONS AVAILABLE.] In addition to 
        ordering forfeiture of fines, the commissioner may propose to 
        suspend, revoke, or make probationary conditional 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. 
           Sec. 27.  Minnesota Statutes 1996, section 245A.07, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SUSPENSION, REVOCATION, PROBATION DENIAL OF 
        CONDITIONAL LICENSE.] The commissioner may suspend, revoke, or 
        make probationary conditional, or deny a license if an applicant 
        or a license holder fails to comply fully with applicable laws 
        or rules, or knowingly withholds relevant information from or 
        gives false or misleading information to the commissioner in 
        connection with an application for a license or during an 
        investigation.  A license holder who has had a license 
        suspended, revoked, or made probationary conditional 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 
        conditional. 
           (a) If the license was suspended or revoked, the notice 
        must inform the license holder of the right to a contested case 
        hearing under chapter 14.  The license holder may appeal an 
        order suspending or revoking a license.  The appeal of an order 
        suspending or revoking a license must be made in writing by 
        certified mail and must be received by the commissioner within 
        ten calendar days after the license holder receives notice that 
        the license has been suspended or revoked.  
           (b) If the license was made probationary conditional, the 
        notice must inform the license holder of the right to request a 
        reconsideration by the commissioner.  The request for 
        reconsideration must be made in writing by certified mail and 
        must be received by the commissioner within ten calendar days 
        after the license holder receives notice that the license has 
        been made probationary conditional.  The license holder may 
        submit with the request for reconsideration written argument or 
        evidence in support of the request for reconsideration.  The 
        commissioner's disposition of a request for reconsideration is 
        final and is not subject to appeal under chapter 14.  
           Sec. 28.  Minnesota Statutes 1996, section 245A.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RECEIPT OF APPEAL; CONDUCT OF HEARING.] 
        Upon receiving a timely appeal or petition pursuant to 
        sections section 245A.05 to or 245A.07, the commissioner shall 
        issue a notice of and order for hearing to the appellant under 
        chapter 14. 
           Sec. 29.  Minnesota Statutes 1996, section 245A.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONDUCT OF HEARINGS.] At any hearing provided 
        for by sections section 245A.05 to or 245A.07, 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.  
           Sec. 30.  Minnesota Statutes 1996, section 245A.09, 
        subdivision 7, is amended to read: 
           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 another state or federal 
        governmental agency or an independent accreditation body have 
        been shown to predict compliance with the rules, the 
        commissioner shall consider compliance with the governmental or 
        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. 
           For programs and services for people with developmental 
        disabilities, the commissioner of human services shall develop 
        demonstration projects to use the standards of the commission on 
        accreditation of rehabilitation facilities and the standards of 
        the accreditation council on services to persons with 
        disabilities during the period of July 1, 1993 to December 31, 
        1994, and incorporate the alternative use of these standards and 
        methods in licensing rules where appropriate.  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 245A.10 by up to 50 percent.  The 
        commissioner shall present a plan by January 31, 1995, to accept 
        accreditation by either the accreditation council on services to 
        people with disabilities or the commission on the accreditation 
        of rehabilitation services as evidence of being in compliance 
        where applicable with state licensing. 
           (b) The commissioner shall work with the commissioners of 
        health, public safety, administration, and children, families, 
        and learning 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 children, families, and learning in 
        conducting joint agency inspections of programs. 
           (c) The commissioner shall work with the commissioners of 
        health, public safety, administration, and children, families, 
        and learning 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. 31.  Minnesota Statutes 1996, section 245A.11, 
        subdivision 2, is amended to read: 
           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, except that a residential program whose 
        primary purpose is to treat juveniles who have violated criminal 
        statutes relating to sex offenses or have been adjudicated 
        delinquent on the basis of conduct in violation of criminal 
        statutes relating to sex offenses shall not be considered a 
        permitted use.  This exception shall not apply to residential 
        programs licensed before July 1, 1995.  Programs otherwise 
        allowed under this subdivision shall not be prohibited by 
        operation of restrictive covenants or similar restrictions, 
        regardless of when entered into, which cannot be met because of 
        the nature of the licensed program, including provisions which 
        require the home's occupants be related, and that the home must 
        be occupied by the owner, or similar provisions. 
           Sec. 32.  Minnesota Statutes 1996, section 245A.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INVESTIGATIONS.] (a) The county or private 
        agency shall conduct timely investigations of allegations of 
        abuse or neglect maltreatment 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 conditional a license, the 
        county or private agency shall make that recommendation to the 
        commissioner within ten working days. 
           Sec. 33.  [245A.22] [INDEPENDENT LIVING ASSISTANCE FOR 
        YOUTH.] 
           Subdivision 1.  [INDEPENDENT LIVING ASSISTANCE FOR 
        YOUTH.] "Independent living assistance for youth" means a 
        nonresidential program that provides a system of services that 
        includes training, counseling, instruction, supervision, and 
        assistance provided to youth according to the youth's 
        independent living plan, when the placements in the program are 
        made by the county agency.  Services may include assistance in 
        locating housing, budgeting, meal preparation, shopping, 
        personal appearance, counseling, and related social support 
        services needed to meet the youth's needs and improve the 
        youth's ability to conduct such tasks independently.  Such 
        services shall not extend to youths needing 24-hour per day 
        supervision and services.  Youths needing a 24-hour per day 
        program of supervision and services shall not be accepted or 
        retained in an independent living assistance program. 
           Subd. 2.  [ADMISSION.] The license holder shall accept as 
        clients in the independent living assistance program only 
        individuals specified under section 256E.115. 
           Subd. 3.  [INDEPENDENT LIVING PLAN.] Unless an independent 
        living plan has been developed by the local agency, the license 
        holder shall develop a plan based on the client's individual 
        needs that specifies objectives for the client.  The services 
        provided shall include those specified in this section and the 
        services specified under section 256E.115, subdivision 2, 
        paragraph (a).  The plan shall identify the persons responsible 
        for implementation of each part of the plan.  The plan shall be 
        reviewed as necessary, but at least annually. 
           Subd. 4.  [RECORDS.] The license holder shall maintain a 
        record for each client. 
           (a) [REQUIRED RECORDS.] For each client the record 
        maintained by the license holder shall document the following: 
           (1) admission information; 
           (2) the independent living plan; 
           (3) delivery of the services required of the license holder 
        in the independent living plan; 
           (4) the client's progress toward obtaining the objectives 
        identified in the independent living plan; and 
           (5) a termination summary after service is terminated. 
           (b) [MONEY RECORDS.] If the license holder manages the 
        client's money, the record maintained by the license holder 
        shall also include the following: 
           (1) written permission from the client or the client's 
        legal guardian to manage the client's money; 
           (2) the reasons the license holder is to manage the 
        client's money; and 
           (3) a complete record of the use of the client's money and 
        reconciliation of the account. 
           Subd. 5.  [SERVICE TERMINATION PLAN.] The license holder, 
        in conjunction with the county agency, shall establish a service 
        termination plan that specifies how independent living 
        assistance services will be terminated and the actions to be 
        performed by the involved agencies, including necessary 
        referrals for other ongoing services. 
           Subd. 6.  [PLACE OF RESIDENCE PROVIDED BY PROGRAM.] When a 
        client's place of residence is provided by the license holder as 
        part of the independent living assistance program, the place of 
        residence is not subject to separate licensure. 
           Subd. 7.  [GENERAL LICENSING REQUIREMENTS APPLY.] In 
        addition to the requirements of this section, providers of 
        independent living assistance are subject to general licensing 
        requirements of this chapter. 
           Sec. 34.  [245A.65] [LICENSE HOLDER REQUIREMENTS GOVERNING 
        MALTREATMENT OF VULNERABLE ADULTS.] 
           Subdivision 1.  [LICENSE HOLDER INTERNAL REPORTING AND 
        INVESTIGATION OF MALTREATMENT.] All license holders serving 
        vulnerable adults shall establish and enforce written policies 
        and procedures related to suspected or alleged maltreatment, and 
        shall orient clients and mandated reporters who are under the 
        control of the license holder to these procedures, as defined in 
        section 626.5572, subdivision 16. 
           (a) License holders must establish policies and procedures 
        allowing but not mandating the internal reporting of alleged or 
        suspected maltreatment.  License holders shall ensure that the 
        policies and procedures on internal reporting: 
           (1) meet all the requirements identified for the optional 
        internal reporting policies and procedures in section 626.557, 
        subdivision 4a; and 
           (2) identify the primary and secondary person or position 
        to whom internal reports may be made and the primary and 
        secondary person or position responsible for forwarding internal 
        reports to the common entry point as defined in section 
        626.5572, subdivision 5.  The secondary person must be involved 
        when there is reason to believe that the primary person was 
        involved in the alleged or suspected maltreatment. 
           (b) The license holder shall:  
           (1) establish and maintain policies and procedures to 
        ensure that an internal review is completed when the facility 
        has reason to know that an internal or external report of 
        alleged or suspected maltreatment has been made.  The review 
        must include an evaluation of whether related policies and 
        procedures were followed, whether the policies and procedures 
        were adequate, whether there is a need for additional staff 
        training, and whether there is a need for any further action to 
        be taken by the facility to protect the health and safety of 
        vulnerable adults; 
           (2) identify the primary and secondary person or position 
        who will ensure that, when required, internal reviews are 
        completed.  The secondary person shall be involved when there is 
        reason to believe that the primary person was involved in the 
        alleged or suspected maltreatment; and 
           (3) document and make internal reviews accessible to the 
        commissioner upon the commissioner's request. 
           (c) The license holder shall provide an orientation to the 
        internal and external reporting procedures to all persons 
        receiving services.  The orientation shall include the telephone 
        number for the license holder's common entry point as defined in 
        section 626.5572, subdivision 5.  If applicable, the person's 
        legal representative must be notified of the orientation.  The 
        program shall provide this orientation for each new person 
        within 24 hours of admission, or for persons who would benefit 
        more from a later orientation, the orientation may take place 
        within 72 hours. 
           (d) The license holder shall post a copy of the internal 
        and external reporting policies and procedures, including the 
        telephone number of the common entry point as defined in section 
        626.5572, subdivision 5, in a prominent location in the program 
        and have it available upon request to mandated reporters, 
        persons receiving services, and the person's legal 
        representatives. 
           Subd. 2.  [ABUSE PREVENTION PLANS.] All license holders 
        shall establish and enforce ongoing written program abuse 
        prevention plans and individual abuse prevention plans as 
        required under section 626.557, subdivision 14. 
           (a) The scope of the program abuse prevention plan is 
        limited to the population, physical plant, and environment 
        within the control of the license holder and the location where 
        licensed services are provided.  In addition to the requirements 
        in section 626.557, subdivision 14, the program abuse prevention 
        plan shall meet the requirements in clauses (1) to (5). 
           (1) The assessment of the population shall include an 
        evaluation of the following factors:  age, gender, mental 
        functioning, physical and emotional health or behavior of the 
        client; the need for specialized programs of care for clients; 
        the need for training of staff to meet identified individual 
        needs; and the knowledge a license holder may have regarding 
        previous abuse that is relevant to minimizing risk of abuse for 
        clients. 
           (2) The assessment of the physical plant where the licensed 
        services are provided shall include an evaluation of the 
        following factors:  the condition and design of the building as 
        it relates to the safety of the clients; and the existence of 
        areas in the building which are difficult to supervise. 
           (3) The assessment of the environment for each facility and 
        for each site when living arrangements are provided by the 
        agency shall include an evaluation of the following factors:  
        the location of the program in a particular neighborhood or 
        community; the type of grounds and terrain surrounding the 
        building; the type of internal programming; and the program's 
        staffing patterns. 
           (4) The license holder shall provide an orientation to the 
        program abuse prevention plan for clients receiving services.  
        If applicable, the client's legal representative must be 
        notified of the orientation.  The license holder shall provide 
        this orientation for each new person within 24 hours of 
        admission, or for persons who would benefit more from a later 
        orientation, the orientation may take place within 72 hours. 
           (5) The license holder's governing body shall review the 
        plan at least annually using the assessment factors in the plan 
        and any substantiated maltreatment findings that occurred since 
        the last review.  The governing body shall revise the plan, if 
        necessary, to reflect the review results. 
           (6) A copy of the program abuse prevention plan shall be 
        posted in a prominent location in the program and be available 
        upon request to mandated reporters, persons receiving services, 
        and legal representatives. 
           (b) In addition to the requirements in section 626.557, 
        subdivision 14, the individual abuse prevention plan shall meet 
        the requirements in clauses (1) and (2).  
           (1) The plan shall include a statement of measures that 
        will be taken to minimize the risk of abuse to the vulnerable 
        adult when the individual assessment required in section 
        626.557, subdivision 14, paragraph (b), indicates the need for 
        measures in addition to the specific measures identified in the 
        program abuse prevention plan.  The measures shall include the 
        specific actions the program will take to minimize the risk of 
        abuse within the scope of the licensed services, and will 
        identify referrals made when the vulnerable adult is susceptible 
        to abuse outside the scope or control of the licensed services.  
        When the assessment indicates that the vulnerable adult does not 
        need specific risk reduction measures in addition to those 
        identified in the program abuse prevention plan, the individual 
        abuse prevention plan shall document this determination. 
           (2) An individual abuse prevention plan shall be developed 
        for each new person as part of the initial individual program 
        plan or service plan required under the applicable licensing 
        rule.  The review and evaluation of the individual abuse 
        prevention plan shall be done as part of the review of the 
        program plan or service plan.  The person receiving services 
        shall participate in the development of the individual abuse 
        prevention plan to the full extent of the person's abilities.  
        If applicable, the person's legal representative shall be given 
        the opportunity to participate with or for the person in the 
        development of the plan.  The interdisciplinary team shall 
        document the review of all abuse prevention plans at least 
        annually, using the individual assessment and any reports of 
        abuse relating to the person.  The plan shall be revised to 
        reflect the results of this review. 
           Subd. 3.  [ORIENTATION OF MANDATED REPORTERS.] The license 
        holder shall ensure that each new mandated reporter, as defined 
        in section 626.5572, subdivision 16, who is under the control of 
        the license holder, receives an orientation within 72 hours of 
        first providing direct contact services as defined in section 
        245A.04, subdivision 3, to a vulnerable adult and annually 
        thereafter.  The orientation and annual review shall inform the 
        mandated reporters of the reporting requirements and definitions 
        in sections 626.557 and 626.5572, the requirements of this 
        section, the license holder's program abuse prevention plan, and 
        all internal policies and procedures related to the prevention 
        and reporting of maltreatment of individuals receiving services. 
           Sec. 35.  [245B.01] [RULE CONSOLIDATION.] 
           This chapter establishes new methods to ensure the quality 
        of services to persons with mental retardation or related 
        conditions, and streamlines and simplifies regulation of 
        services and supports for persons with mental retardation or 
        related conditions.  Sections 245B.02 to 245B.07 establishes new 
        standards that eliminate duplication and overlap of regulatory 
        requirements by consolidating and replacing rule parts from four 
        program rules.  Section 245B.08 authorizes the commissioner of 
        human services to develop and use new regulatory strategies to 
        maintain compliance with the streamlined requirements.  
           Sec. 36.  [245B.02] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE.] The terms used in this chapter 
        have the meanings given them. 
           Subd. 2.  [APPLICANT.] "Applicant" has the meaning given in 
        section 245A.02, subdivision 3. 
           Subd. 3.  [CASE MANAGER.] "Case manager" means the 
        individual designated by the county board under rules of the 
        commissioner to provide case management services as delineated 
        in section 256B.092 or successor provisions. 
           Subd. 4.  [CONSUMER.] "Consumer" means a person who has 
        been determined eligible to receive and is receiving services or 
        support for persons with mental retardation or related 
        conditions. 
           Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
        commissioner of the department of human services or the 
        commissioner's designated representative. 
           Subd. 6.  [DAY TRAINING AND HABILITATION SERVICES FOR 
        ADULTS WITH MENTAL RETARDATION OR RELATED CONDITIONS.] "Day 
        training and habilitation services for adults with mental 
        retardation or related conditions" has the meaning given in 
        sections 252.40 to 252.46. 
           Subd. 7.  [DEPARTMENT.] "Department" means the department 
        of human services. 
           Subd. 8.  [DIRECT SERVICE.] "Direct service" means, for a 
        consumer receiving residential-based services, day training and 
        habilitation services, or respite care services, one or more of 
        the following:  supervision, assistance, or training. 
           Subd. 9.  [HEALTH SERVICES.] "Health services" means any 
        service or treatment consistent with the health needs of the 
        consumer, such as medication administration and monitoring, 
        medical, dental, nutritional, health monitoring, wellness 
        education, and exercise. 
           Subd. 10.  [INCIDENT.] "Incident" means any serious injury 
        as determined by section 245.91, subdivision 6; accident; 
        reports of a child or vulnerable adult maltreatment; 
        circumstances that involve a law enforcement agency; or a 
        consumer's death. 
           Subd. 11.  [INDIVIDUAL SERVICE PLAN.] "Individual service 
        plan" has the meaning given in section 256B.092 or successor 
        provisions. 
           Subd. 12.  [INDIVIDUAL WHO IS RELATED.] "Individual who is 
        related" has the meaning given in section 245A.02, subdivision 
        13. 
           Subd. 13.  [INTERMEDIATE CARE FACILITY FOR PERSONS WITH 
        MENTAL RETARDATION OR RELATED CONDITIONS OR ICF/MR.] 
        "Intermediate care facility" for persons with mental retardation 
        or related conditions or ICF/MR means a residential program 
        licensed to provide services to persons with mental retardation 
        or related conditions under section 252.28 and chapter 245A and 
        a physical facility licensed as a supervised living facility 
        under chapter 144, which together are certified by the 
        department of health as an intermediate care facility for 
        persons with mental retardation or related conditions. 
           Subd. 14.  [LEAST RESTRICTIVE ENVIRONMENT.] "Least 
        restrictive environment" means an environment where services: 
           (1) are delivered with minimum limitation, intrusion, 
        disruption, or departure from typical patterns of living 
        available to persons without disabilities; 
           (2) do not subject the consumer or others to unnecessary 
        risks to health or safety; and 
           (3) maximize the consumer's level of independence, 
        productivity, and inclusion in the community. 
           Subd. 15.  [LEGAL REPRESENTATIVE.] "Legal representative" 
        means the parent or parents of a consumer who is under 18 years 
        of age or a guardian, conservator, or guardian ad litem 
        authorized by the court, or other legally authorized 
        representative to make decisions about services for a consumer. 
           Subd. 16.  [LICENSE.] "License" has the meaning given in 
        section 245A.02, subdivision 8. 
           Subd. 17.  [LICENSE HOLDER.] "License holder" has the 
        meaning given in section 245A.02, subdivision 9. 
           Subd. 18.  [PERSON WITH MENTAL RETARDATION OR A RELATED 
        CONDITION.] "Person with mental retardation or a related 
        condition" means a person who has been diagnosed under section 
        256B.092 as having substantial limitations in present 
        functioning, manifested as significantly subaverage intellectual 
        functioning, existing concurrently with demonstrated deficits in 
        adaptive behavior, and who manifests these conditions before the 
        person's 22nd birthday.  A person with a related condition means 
        a person who meets the diagnostic definition under section 
        252.27, subdivision 1a. 
           Subd. 19.  [PSYCHOTROPIC MEDICATION USE CHECKLIST.] 
        "Psychotropic medication use checklist" means the psychotropic 
        medication monitoring checklist and manual used to govern the 
        administration of psychotropic medications.  The commissioner 
        may revise or update the psychotropic medication use checklist 
        to comply with legal requirements or to meet professional 
        standards or guidelines in the area of developmental 
        disabilities.  For purposes of this chapter, psychotropic 
        medication means any medication prescribed to treat mental 
        illness and associated behaviors or to control or alter 
        behavior.  The major classes of psychotropic medication are 
        antipsychotic (neuroleptic), antidepressant, antianxiety, 
        antimania, stimulant, and sedative or hypnotic.  Other 
        miscellaneous medications are considered to be a psychotropic 
        medication when they are specifically prescribed to treat a 
        mental illness or to control or alter behavior. 
           Subd. 20.  [RESIDENTIAL-BASED HABILITATION.] 
        "Residential-based habilitation" means care, supervision, and 
        training provided primarily in the consumer's own home or place 
        of residence but also including community-integrated activities 
        following the individual service plan.  Residential habilitation 
        services are provided in coordination with the provision of day 
        training and habilitation services for those persons receiving 
        day training and habilitation services under sections 252.40 to 
        252.46. 
           Subd. 21.  [RESPITE CARE.] "Respite care" has the meaning 
        given in section 245A.02, subdivision 15. 
           Subd. 22.  [SERVICE.] "Service" means care, supervision, 
        activities, or training designed to achieve the outcomes 
        assigned to the license holder. 
           Subd. 23.  [SEMI-INDEPENDENT LIVING SERVICES OR 
        SILS] "Semi-independent living services" or "SILS" has the 
        meaning given in section 252.275. 
           Subd. 24.  [VOLUNTEER.] "Volunteer" means an individual 
        who, under the direction of the license holder, provides direct 
        services without pay to consumers served by the license holder. 
           Sec. 37.  [245B.03] [APPLICABILITY AND EFFECT.] 
           Subdivision 1.  [APPLICABILITY.] The standards in this 
        chapter govern services to persons with mental retardation or 
        related conditions receiving services from license holders 
        providing residential-based habilitation; day training and 
        habilitation services for adults; semi-independent living 
        services; residential programs that serve more than four 
        consumers, including intermediate care facilities for persons 
        with mental retardation; and respite care provided outside the 
        consumer's home for more than four consumers at the same time at 
        a single site. 
           Subd. 2.  [RELATIONSHIP TO OTHER STANDARDS GOVERNING 
        SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 
        CONDITIONS.] (a) ICFs/MR are exempt from: 
           (1) section 245B.04; 
           (2) section 245B.06, subdivisions 4 and 6; and 
           (3) section 245B.07, subdivisions 4, paragraphs (b) and 
        (c); 7; and 8, paragraphs (1), clause (iv), and (2). 
           (b) License holders also licensed under chapter 144 as a 
        supervised living facility are exempt from section 245B.04. 
           (c) Residential service sites controlled by license holders 
        licensed under chapter 245B for home and community-based 
        waivered services for four or fewer adults are exempt from 
        compliance with Minnesota Rules, parts 9543.0040, subpart 2, 
        item C; 9555.5505; 9555.5515, items B and G; 9555.5605; 
        9555.5705; 9555.6125, subparts 3, item C, subitem (2), and 4 to 
        6; 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 
        9555.6265.  The commissioner may approve alternative methods of 
        providing overnight supervision using the process and criteria 
        for granting a variance in section 245A.04, subdivision 9.  This 
        chapter does not apply to foster care homes that do not provide 
        residential habilitation services funded under the home and 
        community-based waiver programs defined in section 256B.092. 
           (d) The commissioner may exempt license holders from 
        applicable standards of this chapter when the license holder 
        meets the standards under section 245A.09, subdivision 7.  
        License holders that are accredited by an independent 
        accreditation body shall continue to be licensed under this 
        chapter. 
           (e) License holders governed by sections 245B.02 to 245B.07 
        must also meet the licensure requirements in chapter 245A.  
           (f) Nothing in this chapter prohibits license holders from 
        concurrently serving consumers with and without mental 
        retardation or related conditions provided this chapter's 
        standards are met as well as other relevant standards. 
           (g) The documentation that sections 245B.02 to 245B.07 
        require of the license holder meets the individual program plan 
        required in section 256B.092 or successor provisions.  
           Sec. 38.  [245B.04] [CONSUMER RIGHTS.] 
           Subdivision 1.  [LICENSE HOLDER'S RESPONSIBILITY FOR 
        CONSUMERS' RIGHTS.] The license holder must: 
           (1) provide the consumer or the consumer's legal 
        representative a copy of the consumer's rights on the day that 
        services are initiated and an explanation of the rights in 
        subdivisions 2 and 3 within five working days of service 
        initiation.  Reasonable accommodations shall be made by the 
        license holder to provide this information in other formats as 
        needed to facilitate understanding of the rights by the consumer 
        and the consumer's legal representative, if any; 
           (2) document the consumer's or the consumer's legal 
        representative's receipt of a copy of the rights and an 
        explanation of the rights; and 
           (3) ensure the exercise and protection of the consumer's 
        rights in the services provided by the license holder and 
        authorized in the individual service plan. 
           Subd. 2.  [SERVICE-RELATED RIGHTS.] A consumer's 
        service-related rights include the right to: 
           (1) refuse or terminate services and be informed of the 
        consequences of refusing or terminating services; 
           (2) know, in advance, limits to the services available from 
        the license holder; 
           (3) know conditions and terms governing the provision of 
        services, including those related to initiation and termination; 
           (4) know what the charges are for services, regardless of 
        who will be paying for the services, and be notified of changes 
        in those charges; 
           (5) know, in advance, whether services are covered by 
        insurance, government funding, or other sources, and be told of 
        any charges the consumer or other private party may have to pay; 
        and 
           (6) receive licensed services from individuals who are 
        competent and trained, who have professional certification or 
        licensure, as required, and who meet additional qualifications 
        identified in the individual service plan. 
           Subd. 3.  [PROTECTION-RELATED RIGHTS.] The consumer's 
        protection-related rights include the right to: 
           (1) have personal, financial, services, and medical 
        information kept private, and be advised of the license holder's 
        policies and procedures regarding disclosure of such 
        information; 
           (2) access records and recorded information; 
           (3) be free from maltreatment; 
           (4) be treated with courtesy and respect for the consumer's 
        individuality, mode of communication, and culture, and receive 
        respectful treatment of the consumer's property; 
           (5) voice grievances, know the contact persons responsible 
        for addressing problems and how to contact those persons; 
           (6) any procedures for grievance or complaint resolution 
        and the right to appeal under section 256.045; 
           (7) know the name and address of the state, county, or 
        advocacy agency to contact for additional information or 
        assistance; 
           (8) assert these rights personally, or have them asserted 
        by the consumer's family or legal representative, without 
        retaliation; 
           (9) give or withhold written informed consent to 
        participate in any research or experimental treatment; 
           (10) have daily, private access to and use of a noncoin- 
        operated telephone for local calls and long-distance calls made 
        collect or paid for by the resident; 
           (11) receive and send uncensored, unopened mail; 
           (12) marital privacy for visits with the consumer's spouse 
        and, if both are residents of the site, the right to share a 
        bedroom and bed; 
           (13) associate with other persons of the consumer's choice; 
           (14) personal privacy; and 
           (15) engage in chosen activities. 
           Sec. 39.  [245B.05] [CONSUMER PROTECTION STANDARDS.] 
           Subdivision 1.  [ENVIRONMENT.] The license holder must: 
           (1) ensure that services are provided in a safe and 
        hazard-free environment when the license holder is the owner, 
        lessor, or tenant of the service site.  All other license 
        holders shall inform the consumer or the consumer's legal 
        representative and case manager about any environmental safety 
        concerns in writing; 
           (2) lock doors only to protect the safety of consumers and 
        not as a substitute for staff supervision or interactions with 
        consumers; 
           (3) follow procedures that minimize the consumer's health 
        risk from communicable diseases; and 
           (4) maintain equipment, vehicles, supplies, and materials 
        owned or leased by the license holder in good condition. 
           Subd. 2.  [LICENSED CAPACITY FOR FACILITY-BASED DAY 
        TRAINING AND HABILITATION SERVICES.] Licensed capacity of day 
        training and habilitation service sites must be determined by 
        the amount of primary space available, the scheduling of 
        activities at other service sites, and the space requirements of 
        consumers receiving services.  Primary space does not include 
        hallways, stairways, closets, utility areas, bathrooms, 
        kitchens, and floor areas beneath stationary equipment.  A 
        minimum of 40 square feet of primary space must be available for 
        each consumer who is engaged in a day training and habilitation 
        activity at the site for which the licensed capacity must be 
        determined. 
           Subd. 3.  [RESIDENTIAL SERVICE SITES FOR MORE THAN FOUR 
        CONSUMERS; FOUR-BED ICFS/MR.] Residential service sites licensed 
        to serve more than four consumers and four-bed ICFs/MR must meet 
        the fire protection provisions of either the Residential Board 
        and Care Occupancies Chapter or the Health Care Occupancies 
        Chapter of the Life Safety Code (LSC), National Fire Protection 
        Association, 1985 edition, or its successors.  Sites meeting the 
        definition of a residential board and care occupancy for 16 or 
        less beds must have the emergency evacuation capability of 
        residents evaluated in accordance with Appendix F of the LSC or 
        its successors, except for those sites that meet the LSC Health 
        Care Occupancies Chapter or its successors. 
           Subd. 4.  [MEETING FIRE AND SAFETY CODES.] An applicant or 
        license holder under sections 245A.01 to 245A.16 must document 
        compliance with applicable building codes, fire and safety 
        codes, health rules, and zoning ordinances, or document that an 
        appropriate waiver has been granted. 
           Subd. 5.  [CONSUMER HEALTH.] The license holder is 
        responsible for meeting the health service needs assigned to the 
        license holder in the individual service plan and for bringing 
        health needs as discovered by the license holder promptly to the 
        attention of the consumer, the consumer's legal representative, 
        and the case manager.  The license holder is required to 
        maintain documentation on how the consumer's health needs will 
        be met, including a description of procedures the license holder 
        will follow for the consumer regarding medication monitoring and 
        administration and seizure monitoring, if needed.  The 
        medication administration procedures are those procedures 
        necessary to implement medication and treatment orders issued by 
        appropriately licensed professionals, and must be established in 
        consultation with a registered nurse, nurse practitioner, 
        physician's assistant, or medical doctor. 
           Subd. 6.  [FIRST AID.] When the license holder is providing 
        direct service and supervision to a consumer who requires a 
        24-hour plan of care and receives services at a site licensed 
        under this chapter, the license holder must have available a 
        staff person trained in first aid, and, if needed under section 
        245B.07, subdivision 6, paragraph (d), cardiopulmonary 
        resuscitation from a qualified source, as determined by the 
        commissioner. 
           Subd. 7.  [REPORTING INCIDENTS AND EMERGENCIES.] The 
        license holder must report the following incidents to the 
        consumer's legal representative, caregiver, and case manager 
        within 24 hours of the occurrence, or within 24 hours of receipt 
        of the information: 
           (1) the death of a consumer; 
           (2) any medical emergencies, unexpected serious illnesses, 
        or accidents that require physician treatment or 
        hospitalization; 
           (3) a consumer's unauthorized absence; or 
           (4) any fires and incidents involving a law enforcement 
        agency. 
           Death or serious injury of the consumer must also be 
        reported to the commissioner and the ombudsman, as required 
        under sections 245.91 and 245.94, subdivision 2a. 
           Sec. 40.  [245B.06] [SERVICE STANDARDS.] 
           Subdivision 1.  [OUTCOME-BASED SERVICES.] (a) The license 
        holder must provide outcome-based services in response to the 
        consumer's identified needs as specified in the individual 
        service plan.  
           (b) Services must be based on the needs and preferences of 
        the consumer and the consumer's personal goals and be consistent 
        with the principles of least restrictive environment, 
        self-determination, and consistent with: 
           (1) the recognition of each consumer's history, dignity, 
        and cultural background; 
           (2) the affirmation and protection of each consumer's civil 
        and legal rights; 
           (3) the provision of services and supports for each 
        consumer which: 
           (i) promote community inclusion and self-sufficiency; 
           (ii) provide services in the least restrictive environment; 
           (iii) promote social relationships, natural supports, and 
        participation in community life; 
           (iv) allow for a balance between safety and opportunities; 
        and 
           (v) provide opportunities for the development and exercise 
        of age-appropriate skills, decision making and choice, personal 
        advocacy, and communication; and 
           (4) the provision of services and supports for families 
        which address the needs of the consumer in the context of the 
        family and support family self-sufficiency. 
           (c) The license holder must make available to the consumer 
        opportunities to participate in the community, functional skill 
        development, reduced dependency on care providers, and 
        opportunities for development of decision-making skills.  
        "Outcome" means the behavior, action, or status attained by the 
        consumer that can be observed, measured, and can be determined 
        reliable and valid.  Outcomes are the equivalent of the 
        long-range goals and short-term goals referenced in section 
        256B.092, and any rules promulgated under that section.  
           Subd. 2.  [RISK MANAGEMENT PLAN.] The license holder must 
        develop and document in writing a risk management plan that 
        incorporates the individual abuse prevention plan as required in 
        chapter 245C.  License holders jointly providing services to a 
        consumer shall coordinate and use the resulting assessment of 
        risk areas for the development of this plan.  Upon initiation of 
        services, the license holder will have in place an initial risk 
        management plan that identifies areas in which the consumer is 
        vulnerable, including health, safety, and environmental issues 
        and the supports the provider will have in place to protect the 
        consumer and to minimize these risks.  The plan must be changed 
        based on the needs of the individual consumer and reviewed at 
        least annually. 
           Subd. 3.  [ASSESSMENTS.] (a) The license holder shall 
        assess and reassess the consumer within stated time lines and 
        assessment areas specified in the individual service plan or as 
        requested in writing by the case manager. 
           (b) For each area of assessment requested, the license 
        holder must provide a written summary, analysis, and 
        recommendations for use in the development of the individual 
        service plan. 
           (c) All assessments must include information about the 
        consumer that is descriptive of: 
           (1) the consumer's strengths and functional skills; and 
           (2) the level of support and supervision the consumer needs 
        to achieve the outcomes in subdivision 1. 
           Subd. 4.  [SUPPORTS AND METHODS.] The license holder, in 
        coordination with other service providers, shall meet with the 
        consumer, the consumer's legal representative, case manager, and 
        other members of the interdisciplinary team within 45 days of 
        service initiation.  Within ten working days after the meeting, 
        the license holder shall develop and document in writing: 
           (1) the methods that will be used to support the individual 
        or accomplish the outcomes in section 245B.06, subdivision 1, 
        including information about physical and social environments, 
        the equipment and materials required, and techniques that are 
        consistent with the consumer's communication mode and learning 
        style specified as the license holder's responsibility in the 
        individual service plan; 
           (2) the projected starting date for service supports and 
        the criteria for identifying when the desired outcome has been 
        achieved and when the service supports need to be reviewed; and 
           (3) the names of the staff, staff position, or contractors 
        responsible for implementing each outcome. 
           Subd. 5.  [PROGRESS REVIEWS.] The license holder must 
        participate in progress review meetings following stated time 
        lines established in the consumer's individual service plan or 
        as requested in writing by the consumer, the consumer's legal 
        representative, or the case manager, at a minimum of once a 
        year.  The license holder must summarize the progress toward 
        achieving the desired outcomes and make recommendations in a 
        written report sent to the consumer or the consumer's legal 
        representative and case manager prior to the review meeting.  
        For consumers under public guardianship, the license holder is 
        required to provide quarterly written progress review reports to 
        the consumer, designated family member, and case manager.  
           Subd. 6.  [REPORTS.] The license holder shall provide 
        written reports regarding the consumer's status as requested by 
        the consumer, or the consumer's legal representative and case 
        manager. 
           Subd. 7.  [STAFFING REQUIREMENTS.] The license holder must 
        provide supervision to ensure the health, safety, and protection 
        of rights of each consumer and to be able to implement each 
        consumer's individual service plan.  Day training and 
        habilitation programs must meet the minimum staffing 
        requirements as specified in sections 252.40 to 252.46 and rules 
        promulgated under those sections. 
           Subd. 8.  [LEAVING THE RESIDENCE.] As specified in each 
        consumer's individual service plan, each consumer requiring a 
        24-hour plan of care must leave the residence to participate in 
        regular education, employment, or community activities.  License 
        holders, providing services to consumers living in a licensed 
        site, shall ensure that they are prepared to care for consumers 
        whenever they are at the residence during the day because of 
        illness, work schedules, or other reasons. 
           Subd. 9.  [DAY TRAINING AND HABILITATION SERVICE DAYS.] Day 
        training and habilitation services must meet a minimum of 195 
        available service days. 
           Subd. 10.  [PROHIBITION.] Psychotropic medication and the 
        use of aversive and deprivation procedures, as referenced in 
        section 245.825 and rules promulgated under that section, cannot 
        be used as a substitute for adequate staffing, as punishment, or 
        for staff convenience. 
           Sec. 41.  [245B.07] [MANAGEMENT STANDARDS.] 
           Subdivision 1.  [CONSUMER DATA FILE.] The license holder 
        must maintain the following information for each consumer: 
           (1) identifying information that includes date of birth, 
        medications, legal representative, history, medical, and other 
        individual-specific information, and names and telephone numbers 
        of contacts; 
           (2) consumer health information, including individual 
        medication administration and monitoring information; 
           (3) the consumer's individual service plan.  When a 
        consumer's case manager does not provide a current individual 
        service plan, the license holder shall make a written request to 
        the case manager to provide a copy of the individual service 
        plan and inform the consumer or the consumer's legal 
        representative of the right to an individual service plan and 
        the right to appeal under section 256.045; 
           (4) copies of assessments, analyses, summaries, and 
        recommendations; 
           (5) progress review reports; 
           (6) incident and emergency reports involving the consumer; 
           (7) discharge summary, when applicable; 
           (8) record of other license holders serving the consumer 
        that includes a contact person and telephone numbers, services 
        being provided, services that require coordination between two 
        license holders, and name of staff responsible for coordination; 
        and 
           (9) incidents involving verbal and physical aggression 
        between consumers and self-abuse affecting the consumer. 
           Subd. 2.  [ACCESS TO RECORDS.] The license holder must 
        ensure that the following people have access to the information 
        in subdivision 1: 
           (1) the consumer, the consumer's legal representative, and 
        anyone properly authorized by the consumer or legal 
        representative; 
           (2) the consumer's case manager; 
           (3) staff providing direct services to the consumer unless 
        the information is not relevant to carrying out the individual 
        service plan; and 
           (4) the county adult foster care licensor, when services 
        are also licensed as an adult foster home.  Adult foster home 
        means a licensed residence operated by an operator who, for 
        financial gain or otherwise, provides 24-hour foster care to no 
        more than four functionally impaired residents. 
           Subd. 3.  [RETENTION OF CONSUMER'S RECORDS.] The license 
        holder must retain the records required for consumers for at 
        least three years following termination of services. 
           Subd. 4.  [STAFF QUALIFICATIONS.] (a) The license holder 
        must ensure that staff is competent through training, 
        experience, and education to meet the consumer's needs and 
        additional requirements as written in the individual service 
        plan.  Staff qualifications must be documented.  Staff under 18 
        years of age may not perform overnight duties or administer 
        medication. 
           (b) Delivery and evaluation of services provided by the 
        license holder to a consumer must be coordinated by a designated 
        person.  The designated person or coordinator must minimally 
        have a four-year degree in a field related to service provision, 
        and one year work experience with consumers with mental 
        retardation or related conditions, a two-year degree in a field 
        related to service provision, and two years of work experience 
        with consumers with mental retardation or related conditions, or 
        a diploma in community-based developmental disability services 
        from an accredited post-secondary institution and two years of 
        work experience with consumers with mental retardation or 
        related conditions.  The coordinator must provide supervision, 
        support, and evaluation of activities that include: 
           (1) oversight of the license holder's responsibilities 
        designated in the individual service plan; 
           (2) instruction and assistance to staff implementing the 
        individual service plan areas; 
           (3) evaluation of the effectiveness of service delivery, 
        methodologies, and progress on consumer outcomes based on the 
        condition set for objective change; and 
           (4) review of incident and emergency reports, 
        identification of incident patterns, and implementation of 
        corrective action as necessary to reduce occurrences. 
           (c) The coordinator is responsible for taking the action 
        necessary to facilitate the accomplishment of the outcomes for 
        each consumer as specified in the consumer's individual service 
        plan. 
           (d) The license holder must provide for adequate 
        supervision of direct care staff to ensure implementation of the 
        individual service plan. 
           Subd. 5.  [STAFF ORIENTATION.] (a) Within 60 days of hiring 
        staff who provide direct service, the license holder must 
        provide 30 hours of staff orientation.  Direct care staff must 
        complete 15 of the 30 hours orientation before providing any 
        unsupervised direct service to a consumer.  If the staff person 
        has received orientation training from a license holder licensed 
        under this chapter, or provides semi-independent living services 
        only, the 15-hour requirement may be reduced to eight hours.  
        The total orientation of 30 hours may be reduced to 15 hours if 
        the staff person has previously received orientation training 
        from a license holder licensed under this chapter. 
           (b) The 30 hours of orientation must combine supervised 
        on-the-job training with coverage of the following material: 
           (1) review of the consumer's service plans and risk 
        management plan to achieve an understanding of the consumer as a 
        unique individual; 
           (2) review and instruction on the license holder's policies 
        and procedures, including their location and access; 
           (3) emergency procedures; 
           (4) explanation of specific job functions, including 
        implementing objectives from the consumer's individual service 
        plan; 
           (5) explanation of responsibilities related to chapter 
        245C; sections 626.556 and 626.557, governing maltreatment 
        reporting and service planning for children and vulnerable 
        adults; and section 245.825, governing use of aversive and 
        deprivation procedures; 
           (6) medication administration as it applies to the 
        individual consumer, from a training curriculum developed by a 
        health services professional described in section 245B.05, 
        subdivision 5, and when the consumer meets the criteria of 
        having overriding health care needs, then medication 
        administration taught by a health services professional.  Once a 
        consumer with overriding health care needs is admitted, staff 
        will be provided with remedial training as deemed necessary by 
        the license holder and the health professional to meet the needs 
        of that consumer. 
           For purposes of this section, overriding health care needs 
        means a health care condition that affects the service options 
        available to the consumer because the condition requires: 
           (i) specialized or intensive medical or nursing 
        supervision; and 
           (ii) nonmedical service providers to adapt their services 
        to accommodate the health and safety needs of the consumer; 
           (7) consumer rights; and 
           (8) other topics necessary as determined by the consumer's 
        individual service plan or other areas identified by the license 
        holder. 
           (c) The license holder must document each employee's 
        orientation received. 
           Subd. 6.  [STAFF TRAINING.] (a) The license holder shall 
        ensure that direct service staff annually complete hours of 
        training equal to two percent of the number of hours the staff 
        person worked or one percent for license holders providing 
        semi-independent living services.  If direct service staff has 
        received training from a license holder licensed under a program 
        rule identified in this chapter or completed course work 
        regarding disability-related issues from a post-secondary 
        educational institute, that training may also count toward 
        training requirements for other services and for other license 
        holders. 
           (b) The license holder must document the training completed 
        by each employee. 
           (c) Training shall address staff competencies necessary to 
        address the consumer needs as identified in the consumer's 
        individual service plan and ensure consumer health, safety, and 
        protection of rights.  Training may also include other areas 
        identified by the license holder. 
           (d) For consumers requiring a 24-hour plan of care, the 
        license holder shall provide training in cardiopulmonary 
        resuscitation, from a qualified source determined by the 
        commissioner, if the consumer's health needs as determined by 
        the consumer's physician indicate trained staff would be 
        necessary to the consumer. 
           Subd. 7.  [VOLUNTEERS.] The license holder must ensure that 
        volunteers who provide direct services to consumers receive the 
        training and orientation necessary to fulfill their 
        responsibilities. 
           Subd. 8.  [POLICIES AND PROCEDURES.] The license holder 
        must develop and implement the policies and procedures in 
        paragraphs (1) to (3). 
           (1) policies and procedures that promote consumer health 
        and safety by ensuring: 
           (i) consumer safety in emergency situations as identified 
        in section 245B.05, subdivision 7; 
           (ii) consumer health through sanitary practices; 
           (iii) safe transportation, when the license holder is 
        responsible for transportation of consumers, with provisions for 
        handling emergency situations; 
           (iv) a system of recordkeeping for both individuals and the 
        organization, for review of incidents and emergencies, and 
        corrective action if needed; 
           (v) a plan for responding to and reporting all emergencies, 
        including deaths, medical emergencies, illnesses, accidents, 
        missing consumers, fires, severe weather and natural disasters, 
        bomb threats, and other threats; 
           (vi) safe medication administration as identified in 
        section 245B.05, subdivision 5; 
           (vii) psychotropic medication monitoring when the consumer 
        is prescribed a psychotropic medication, including the use of 
        the psychotropic medication use checklist.  If the 
        responsibility for implementing the psychotropic medication use 
        checklist has not been assigned in the individual service plan 
        and the consumer lives in a licensed site, the residential 
        license holder shall be designated; and 
           (viii) criteria for admission or service initiation 
        developed by the license holder; 
           (2) policies and procedures that protect consumer rights 
        and privacy by ensuring: 
           (i) consumer data privacy, in compliance with the Minnesota 
        Data Practices Act, chapter 13; and 
           (ii) that complaint procedures provide consumers with a 
        simple process to bring grievances and consumers receive a 
        response to the grievance within a reasonable time period.  The 
        license holder must provide a copy of the program's grievance 
        procedure and time lines for addressing grievances.  The 
        program's grievance procedure must permit consumers served by 
        the program and the authorized representatives to bring a 
        grievance to the highest level of authority in the program; and 
           (3) policies and procedures that promote continuity and 
        quality of consumer supports by ensuring: 
           (i) continuity of care and service coordination, including 
        provisions for service termination, temporary service 
        suspension, and efforts made by the license holder to coordinate 
        services with other vendors who also provide support to the 
        consumer.  The policy must include the following requirements: 
           (A) the license holder must notify the consumer or 
        consumer's legal representative and the consumer's case manager 
        in writing of the intended termination or temporary service 
        suspension and the consumer's right to seek a temporary order 
        staying the termination or suspension of service according to 
        the procedures in section 256.045, subdivision 4a or subdivision 
        6, paragraph (c); 
           (B) notice of the proposed termination of services must be 
        given at least 60 days before the proposed termination is to 
        become effective, unless services are temporarily suspended 
        according to the license holder's written temporary service 
        suspension procedures, in which case notice must be given as 
        soon as possible; 
           (C) the license holder must provide information requested 
        by the consumer or consumer's legal representative or case 
        manager when services are temporarily suspended or upon notice 
        of termination; 
           (D) use of temporary service suspension procedures are 
        restricted to situations in which the consumer's behavior causes 
        immediate and serious danger to the health and safety of the 
        individual or others; 
           (E) prior to giving notice of service termination or 
        temporary service suspension, the license holder must document 
        actions taken to minimize or eliminate the need for service 
        termination or temporary service suspension; and 
           (F) during the period of temporary service suspension, the 
        license holder will work with the appropriate county agency to 
        develop reasonable alternatives to protect the individual and 
        others; and 
           (ii) quality services measured through a program evaluation 
        process including regular evaluations of consumer satisfaction 
        and sharing the results of the evaluations with the consumers 
        and legal representatives. 
           Subd. 9.  [AVAILABILITY OF CURRENT WRITTEN POLICIES AND 
        PROCEDURES.] The license holder shall: 
           (1) review and update, as needed, the written policies and 
        procedures in this subdivision and inform all consumers or the 
        consumer's legal representatives, case managers, and employees 
        of the revised policies and procedures when they affect the 
        service provision; 
           (2) inform consumers or the consumer's legal 
        representatives of the written policies and procedures in this 
        subdivision upon service initiation.  Copies must be available 
        to consumers or the consumer's legal representatives, case 
        managers, the county where services are located, and the 
        commissioner upon request; and 
           (3) document and maintain relevant information related to 
        the policies and procedures in this subdivision. 
           Subd. 10.  [CONSUMER FUNDS.] (a) The license holder must 
        ensure that consumers retain the use and availability of 
        personal funds or property unless restrictions are justified in 
        the consumer's individual service plan. 
           (b) The license holder must ensure separation of resident 
        funds from funds of the license holder, the residential program, 
        or program staff. 
           (c) Whenever the license holder assists a consumer with the 
        safekeeping of funds or other property, the license holder must: 
           (1) document receipt and disbursement of the consumer's 
        funds or the property, and include the signature of the 
        consumer, conservator, or payee; 
           (2) provide a statement at least quarterly itemizing 
        receipts and disbursements of resident funds or other property; 
        and 
           (3) return to the consumer upon the consumer's request, 
        funds and property in the license holder's possession subject to 
        restrictions in the consumer's individual service plan, as soon 
        as possible, but no later than three working days after the date 
        of the request. 
           (d) License holders and program staff must not: 
           (1) borrow money from a consumer; 
           (2) purchase personal items from a consumer; 
           (3) sell merchandise or personal services to a consumer; 
           (4) require a resident to purchase items for which the 
        license holder is eligible for reimbursement; or 
           (5) use resident funds in a manner that would violate 
        section 256B.04, or any rules promulgated under that section. 
           Subd. 11.  [TRAVEL TIME TO AND FROM A DAY TRAINING AND 
        HABILITATION SITE.] Except in unusual circumstances, the license 
        holder must not transport a consumer receiving services for 
        longer than one hour per one-way trip. 
           Subd. 12.  [SEPARATE LICENSE REQUIRED FOR SEPARATE SITES.] 
        The license holder shall apply for separate licenses for each 
        day training and habilitation service site owned or leased by 
        the license holder at which persons receiving services and the 
        provider's employees who provide training and habilitation 
        services are present for a cumulative total of more than 30 days 
        within any 12-month period, and for each residential service 
        site.  
           Subd. 13.  [VARIANCE.] The commissioner may grant a 
        variance to any of the requirements in sections 245B.02 to 
        245B.07 except section 245B.07, subdivision 8(1)(vii), or 
        provisions governing data practices and information rights of 
        consumers if the conditions in section 245A.04, subdivision 9 
        are met.  Upon the request of the license holder, the 
        commissioner shall continue variances from the standards in this 
        chapter previously granted under Minnesota Rules that are 
        repealed as a result of this chapter.  The commissioner may 
        approve variances for a license holder on a program, geographic, 
        or organizational basis. 
           Sec. 42.  [245B.08] [NEW REGULATORY STRATEGIES.] 
           Subdivision 1.  [ALTERNATIVE METHODS OF DETERMINING 
        COMPLIANCE.] (a) In addition to methods specified in chapter 
        245A, the commissioner may use alternative methods and new 
        regulatory strategies to determine compliance with this 
        section.  The commissioner may use sampling techniques to ensure 
        compliance with this section.  Notwithstanding section 245A.09, 
        subdivision 7, paragraph (d), the commissioner may also extend 
        periods of licensure, not to exceed five years, for license 
        holders who have demonstrated substantial and consistent 
        compliance with sections 245B.02 to 245B.07 and have 
        consistently maintained the health and safety of consumers and 
        have demonstrated by alternative methods in paragraph (b) that 
        they meet or exceed the requirements of this section.  For 
        purposes of this section, "substantial and consistent 
        compliance" means that during the current licensing period: 
           (1) the license holder's license has not been made 
        conditional, suspended, or revoked; 
           (2) there have been no substantiated allegations of 
        maltreatment against the license holder; 
           (3) there have been no program deficiencies that have been 
        identified that would jeopardize the health or safety of 
        consumers being served; and 
           (4) the license holder is in substantial compliance with 
        the other requirements of chapter 245A and other applicable laws 
        and rules. 
           (b) To determine the length of a license, the commissioner 
        shall consider: 
           (1) information from affected consumers, and the license 
        holder's responsiveness to consumers' concerns and 
        recommendations; 
           (2) self assessments and peer reviews of the standards of 
        this section, corrective actions taken by the license holder, 
        and sharing the results of the inspections with consumers, the 
        consumers' families, and others, as requested; 
           (3) length of accreditation by an independent accreditation 
        body, if applicable; 
           (4) information from the county where the license holder is 
        located; and 
           (5) information from the license holder demonstrating 
        performance that meets or exceeds the minimum standards of this 
        chapter. 
           (c) The commissioner may reduce the length of the license 
        if the license holder fails to meet the criteria in paragraph 
        (a) and the conditions specified in paragraph (b). 
           Subd. 2.  [ADDITIONAL MEASURES.] The commissioner may 
        require the license holder to implement additional measures on a 
        time-limited basis to ensure the health and safety of consumers 
        when the health and safety of consumers has been determined to 
        be at risk as determined by substantiated incidents of 
        maltreatment under sections 626.556 and 626.557.  The license 
        holder may request reconsideration of the actions taken by the 
        commissioner under this subdivision according to section 245A.06.
           Subd. 3.  [SANCTIONS AVAILABLE.] Nothing in this 
        subdivision shall be construed to limit the commissioner's 
        authority to suspend, revoke, or make conditional at any time a 
        license under section 245A.07; make correction orders and 
        require fines for failure to comply with applicable laws or 
        rules under section 245A.06; or deny an application for license 
        under section 245A.05. 
           Subd. 4.  [EFFICIENT APPLICATION.] The commissioner shall 
        establish application procedures for license holders licensed 
        under this chapter to reduce the need to submit duplicative 
        material. 
           Subd. 5.  [INFORMATION.] The commissioner shall make 
        information available to consumers and interested others 
        regarding the licensing status of a license holder. 
           Subd. 6.  [IMPLEMENTATION.] The commissioner shall seek 
        advice from parties affected by the implementation of this 
        chapter. 
           Subd. 7.  [DEEM STATUS.] The commissioner may exempt a 
        license holder from duplicative standards if the license holder 
        is already licensed under chapter 245A. 
           Sec. 43.  Minnesota Statutes 1996, section 256E.115, is 
        amended to read: 
           256E.115 [SAFE HOUSES AND, TRANSITIONAL HOUSING, AND 
        INDEPENDENT LIVING ASSISTANCE SERVICES FOR HOMELESS YOUTH.] 
           Subdivision 1.  [DEFINITIONS; COMMISSIONER DUTIES.] (a) The 
        following definitions apply to this section: 
           (1) "Targeted youth" means children who are ages 16 to 21 
        and who are in out-of-home placement, leaving out-of-home 
        placement, at risk of becoming homeless, or homeless. 
           (2) "Safe house" means a facility providing emergency 
        housing for homeless targeted youth with the goal of reuniting 
        the family if appropriate and possible. 
           (3) "Transitional housing" means congregate or cooperative 
        housing for targeted youth who are transitioning to independent 
        living. 
           (4) "Independent living assistance" means services provided 
        to assist targeted youth who are not living in a safe house or 
        transitional housing to make the transition to independent 
        living. 
           (b) The commissioner shall issue a request for proposals 
        from organizations that are knowledgeable about the needs 
        of homeless targeted youth for the purpose of providing 
        establishing a system of safe houses and, transitional housing, 
        and independent living assistance for homeless such youth.  The 
        commissioner shall appoint a review committee of up to eight 
        members to evaluate the proposals.  The review panel must 
        include representation from communities of color, youth, and 
        other community providers and agency representatives who 
        understand the needs and problems of homeless targeted youth.  
        The commissioner shall also assist in coordinating funding from 
        federal and state grant programs and funding available from a 
        variety of sources for efforts to promote a continuum of 
        services for targeted youth through a consolidated grant 
        application.  The commissioner shall analyze the needs 
        of homeless targeted youth and gaps in services throughout the 
        state and determine how to best serve those needs within the 
        available funding. 
           Subd. 2.  [SAFE HOUSES AND TRANSITIONAL HOUSING PROGRAM 
        SERVICE REQUIREMENTS; PARTICIPATION REQUIREMENTS; LICENSURE OF 
        INDEPENDENT LIVING ASSISTANCE PROVIDERS.] A safe house provides 
        emergency housing for homeless youth ranging in age from 13 to 
        22 with the goal of reuniting the family, if appropriate, 
        whenever possible.  Transitional housing provides housing for 
        homeless youth ages 16 to 22 who are transitioning into 
        independent living. 
           In developing both types of housing, the commissioner and 
        the review committee shall try to create a family atmosphere in 
        a neighborhood or community and, if possible, provide separate 
        but cooperative homes for males and females.  It may be 
        necessary, due to licensing restrictions, to provide separate 
        housing for different age groups. (a) The following services, or 
        adequate access to referrals for the following services, must be 
        made available to the homeless targeted youth participating in 
        the programs described in subdivision 1: 
           (1) counseling services for the youth, and their families, 
        if appropriate, on site, to help with problems that resulted 
        in contributed to the homelessness or could impede making the 
        transition to independent living; 
           (2) job services to help youth find employment in addition 
        to creating jobs on site, including food service, maintenance, 
        child care, and tutoring; 
           (3) health services that are confidential and provide 
        preventive care services, crisis referrals, and other necessary 
        health care services; 
           (4) living skills training to help youth learn how to care 
        for themselves; and 
           (5) education services that help youth enroll in academic 
        programs, if they are currently not in a program.  Enrollment in 
        an academic program is required for residency in transitional 
        housing. 
           (b)(1) Targeted youth who have current drug or alcohol 
        problems, a recent history of violent behaviors, or a mental 
        health disorder or issue that is not being resolved through 
        counseling or treatment are not eligible to receive the services 
        described in subdivision 1. 
           (2) Targeted youth who are not employed, participating in 
        employment training, or enrolled in an academic program are not 
        eligible to receive transitional housing or independent living 
        assistance. 
           (c) Providers of independent living assistance services 
        must be licensed under section 245A.22. 
           Sec. 44.  Minnesota Statutes 1996, section 364.09, is 
        amended to read: 
           364.09 [EXCEPTIONS.] 
           (a) This chapter does not apply to the licensing process 
        for peace officers; to law enforcement agencies as defined in 
        section 626.84, subdivision 1, paragraph (h); to fire protection 
        agencies; to eligibility for a private detective or protective 
        agent license; to eligibility for a family day care license, a 
        family foster care license, or a home care provider license the 
        licensing and background study process under chapter 245A; to 
        eligibility for school bus driver endorsements; or to 
        eligibility for special transportation service endorsements.  
        This chapter also shall not apply to eligibility for juvenile 
        corrections employment, where the offense involved child 
        physical or sexual abuse or criminal sexual conduct.  
           (b) This chapter does not apply to a school district or to 
        eligibility for a license issued or renewed by the board of 
        teaching or the state board of education.  
           (c) Nothing in this section precludes the Minnesota police 
        and peace officers training board or the state fire marshal from 
        recommending policies set forth in this chapter to the attorney 
        general for adoption in the attorney general's discretion to 
        apply to law enforcement or fire protection agencies. 
           (d) This chapter does not apply to a license to practice 
        medicine that has been denied or revoked by the board of medical 
        practice pursuant to section 147.091, subdivision 1a. 
           Sec. 45.  Laws 1995, chapter 158, section 7, is amended to 
        read: 
           Sec. 7.  [RECOMMENDATIONS ON REGULATING CHILD CARE 
        PROGRAMS.] 
           The commissioner of human services shall review and make 
        recommendations to the legislature regarding what programs 
        should be regulated that provide child care for children, and 
        the manner in which these programs should be regulated. 
           The commissioner shall also examine and make 
        recommendations regarding the feasibility of permitting 
        worksite-based nonresidential child care programs serving 14 or 
        fewer children to be licensed under the family and group family 
        day care standards.  In developing these recommendations, the 
        commissioner shall consult with representatives of organizations 
        with an interest in child care services including, but not 
        limited to, the following:  large and small employers, including 
        employers who provide child care on site; foundations; the state 
        commissioners of economic security and children, families, and 
        learning; not-for-profit and county agencies; and consumers of 
        child care services. 
           The commissioner shall submit the recommendations by 
        December 15, 1997, to the chairs of the house health and human 
        services committee and the health and human services finance 
        division, and of the senate health and family services security 
        committee and the health care and family services finance 
        security budget division. 
           Sec. 46.  [UNLICENSED CHILD CARE PROVIDERS; INTERIM 
        EXPANSION.] 
           (a) Notwithstanding Minnesota Statutes, section 245A.03, 
        subdivision 2, clause (2), until June 30, 1999, nonresidential 
        child care programs or services that are provided by an 
        unrelated individual to persons from two or three other 
        unrelated families are excluded from the licensure provisions of 
        Minnesota Statutes, chapter 245A, provided that: 
           (1) the individual provides services at any one time to no 
        more than four children who are unrelated to the individual; 
           (2) no more than two of the children are under two years of 
        age; and 
           (3) the total number of children being cared for at any one 
        time does not exceed five. 
           (b) Paragraph (a), clauses (1) and (2), do not apply to 
        nonresidential programs that are provided by an unrelated 
        individual to persons from a single related family. 
           Sec. 47.  [FAMILY DAY CARE LICENSURE; INTERIM EXPANSION.] 
           Subdivision 1.  [INTERIM AGE GROUPINGS; FAMILY DAY 
        CARE.] Notwithstanding Minnesota Rules, part 9502.0315, subparts 
        22, 28 and 30, until June 30, 1998, for the purposes of family 
        day care and group family day care licensure the following 
        definitions apply: 
           (1) "Preschooler" means a child who is at least 24 months 
        old up to the age of being eligible to enter kindergarten within 
        the next four months. 
           (2) "Toddler" means a child who is at least 12 months old 
        but less than 24 months old, except that for purposes of 
        specialized infant and toddler family and group family day care, 
        "toddler" means a child who is at least 12 months old but less 
        than 30 months old. 
           (3) "School age" means a child who is at least of 
        sufficient age to have attended the first day of kindergarten, 
        or is eligible to enter kindergarten within the next four 
        months, but is younger than 11 years of age. 
           Subd. 2.  [COMMISSIONER'S AUTHORITY.] The commissioner may 
        grant a variance to any of the provisions in subdivision 1, as 
        long as the health and safety of the children served by the 
        program are not affected.  The request for a variance shall 
        comply with the provisions of Minnesota Statutes, section 
        245A.04, subdivision 9. 
           Sec. 48.  [COMMISSIONER OF HEALTH; BACKGROUND STUDIES 
        REPORT.] 
           By January 15, 1998, the commissioner of health shall 
        report to the chairs of the health and human services fiscal 
        committees of the house and the senate on the background study 
        costs required by Minnesota Statutes, sections 245A.04, 
        subdivision 3, paragraphs (b) and (e) and 144.057, subdivision 
        1, clause (2), with recommendations for providing funding to 
        cover the costs of these studies. 
           Sec. 49.  [REPORT ON RULE CONSOLIDATION.] 
           The commissioner of human services shall report no later 
        than March 15, 1998, to the chairs of the senate committee on 
        health and family security, the house committee on health and 
        human services, the senate health and family security budget 
        division, and the house health and human services finance 
        division on the implementation of rule consolidation authorized 
        by Minnesota Statutes, section 245B.01.  In addition, the report 
        shall include recommendations as needed to improve the 
        consolidated rule's effectiveness in providing safeguards for 
        clients while streamlining the regulatory process.  The 
        commissioner shall appoint an advisory task force to assist in 
        developing the report.  The task force membership shall include, 
        but not be limited to, representatives from provider, advocacy, 
        and other interested groups.  Department of human services staff 
        shall not be members of the task force but shall provide 
        technical assistance as needed. 
           Sec. 50.  [LEGISLATIVE TASK FORCE TO REVIEW THE BACKGROUND 
        STUDY PROCESS.] 
           The task force must consist of at least six legislators and 
        other members appointed by the commissioner of human services, 
        which may include representatives from the departments of human 
        services, health, corrections, and public safety, the ombudsman 
        for older Minnesotans, the ombudsman for mental health and 
        mental retardation, representatives from the attorney general's 
        office, and county agencies, persons receiving services in 
        licensed facilities, families of persons receiving services in 
        licensed facilities, representatives from consumer and advocacy 
        groups, representatives of agencies that provide services, 
        representatives of individuals and professionals who provide 
        services within the agencies, and representatives of employee 
        bargaining units. 
           The speaker of the house and the rules and administration 
        subcommittee on committees in the senate shall appoint at least 
        three members from each body to constitute a legislative task 
        force to review the background study process for individuals 
        providing services in facilities and programs licensed by either 
        the department of human services or the department of health.  
        At least one of the members from each body shall be from the 
        minority party.  Members shall be appointed before July 1, 1997, 
        and shall convene as soon as possible during the 1997 interim at 
        the call of the chairs. 
           Members shall evaluate the current systems for background 
        studies completed under Minnesota Statutes, section 144.057, and 
        chapter 245A, specific to, but not limited to, the 
        appropriateness of the authority to disqualify individuals based 
        on a commissioner's determination that, absent a criminal 
        conviction, there is a preponderance of evidence that the 
        individual committed an act that meets the definition of a 
        disqualifying crime under Minnesota Statutes, section 245A.04, 
        the appropriateness and effectiveness of the due process 
        available to disqualified individuals, and the appropriateness 
        of standardizing disqualifying characteristics across all 
        services licensed by the department of human services and the 
        department of health. 
           The deliberations of the task force shall include 
        consideration of the privacy issues related to background 
        studies, specifically the efficient and effective dissemination 
        of information while protecting individual privacy rights, and 
        issues related to rehabilitation and present fitness to perform 
        the duties of employment, and be based upon the recognition that 
        the background study process exists to protect vulnerable 
        children and adults receiving services in licensed programs and 
        facilities and that the safety of these persons shall be given 
        preeminent weight over the interests of persons subject to the 
        background study process. 
           The task force shall present a report containing any 
        recommendations for change, with draft legislation, to the 
        legislature by February 1, 1998.  The task force expires June 
        30, 1998.  
           Sec. 51.  [REPEALER.] 
           Subdivision 1.  Minnesota Rules, parts 9555.8000; 
        9555.8100; 9555.8200; 9555.8300; 9555.8400; and 9555.8500, are 
        repealed. 
           Subd. 2.  (a) Laws 1996, chapter 408, article 10, section 
        13, is repealed. 
           (b) Minnesota Rules, parts 4668.0020 and 9543.3070, are 
        repealed. 
           Subd. 3.  (a) Minnesota Statutes 1996, sections 245A.091; 
        245A.20; 245A.21; and 252.53, are repealed. 
           (b) Minnesota Rules, parts 9503.0170, subpart 7; 9525.0215; 
        9525.0225; 9525.0235; 9525.0243; 9525.0245; 9525.0255; 
        9525.0265; 9525.0275; 9525.0285; 9525.0295; 9525.0305; 
        9525.0315; 9525.0325; 9525.0335; 9525.0345; 9525.0355; 
        9525.0500; 9525.0510; 9525.0520; 9525.0530; 9525.0540; 
        9525.0550; 9525.0560; 9525.0570; 9525.0580; 9525.0590; 
        9525.0600; 9525.0610; 9525.0620; 9525.0630; 9525.0640; 
        9525.0650; 9525.0660; 9525.1240, subpart 1, item E, subitem (6); 
        9525.1500; 9525.1510; 9525.1520; 9525.1530; 9525.1540; 
        9525.1550; 9525.1560; 9525.1570, subparts 1, 2, 3, 4, 5, and 6; 
        9525.1590; 9525.1610; 9525.1620; 9525.1630; 9525.1640; 
        9525.1650; 9525.1660; 9525.1670; 9525.1680; 9525.1690; 
        9525.2000; 9525.2010; 9525.2020; 9525.2025; 9525.2030; 
        9525.2040; 9525.2050; 9525.2060; 9525.2070; 9525.2080; 
        9525.2090; 9525.2100; 9525.2110; 9525.2120; 9525.2130; and 
        9525.2140, are repealed. 
           Sec. 52.  [EFFECTIVE DATE.] 
           Sections 1, 3 to 9, 12, 13, 15 to 34, 43 to 50, and 51, 
        subdivision 1, are effective the day following final enactment.  
        Sections 2, 10, 11, 14, and 51, subdivision 2, are effective 
        August 1, 1997.  Sections 35 to 42 and 51, subdivision 3, are 
        effective January 1, 1998. 
           Presented to the governor May 30, 1997 
           Signed by the governor June 3, 1997, 2:58 p.m.