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

CHAPTER 9--S.F.No. 12

An act

relating to health and human services; modifying provisions relating to children and families, operations, direct care and treatment, continuing care for older adults, disability services, chemical and mental health, health care, health coverage, prescription drugs, health-related licensing boards, Health Department, and additional miscellaneous provisions; modifying provisions governing child care providers, child care assistance program, and medical assistance; establishing Child Welfare Training Academy; modifying sections relating to data; establishing Family Child Care Task Force; modifying provisions governing nursing facility property payment rates, disability waiver rate-setting, and home and community-based services; modifying requirements for substance use disorder treatment; establishing Community Competency Restoration Task Force; modifying step therapy exceptions; requiring certain coverage for PANDAS and PANS; establishing cost-sharing limits for prescription insulin drugs; establishing prescription drug repository program; requiring licensure of wholesale distributors and third-party logistics providers; modifying sections relating to borings; modifying provisions relating to hemp, cannabinoid products, and medical cannabis; designating Maternal Mental Health Awareness Month; establishing grant programs; modifying fees; making technical changes; requiring studies and reports; adjusting the forecast; appropriating money;

amending Minnesota Statutes 2018, sections 13.46, subdivisions 2, 3, 4; 13.461, subdivision 28; 13.69, subdivision 1; 13.851, by adding a subdivision; 15C.02; 16A.055, subdivision 1a; 16A.724, subdivision 2; 18K.03; 62A.30, by adding a subdivision; 62D.12, by adding a subdivision; 62D.124, subdivision 3, by adding a subdivision; 62E.23, subdivision 3; 62E.24, subdivision 2; 62J.23, subdivision 2; 62J.495, subdivisions 1, 3; 62K.07; 62K.075; 62K.10, subdivision 5; 62Q.01, by adding a subdivision; 62Q.184, subdivisions 1, 3; 62Q.47; 62U.04, subdivision 4; 103I.005, subdivisions 2, 8a, 17a; 103I.205, subdivisions 1, 4, 9; 103I.208, subdivision 1; 103I.235, subdivision 3; 103I.301, subdivision 6, by adding a subdivision; 103I.601, subdivision 4; 119B.011, subdivisions 19, 20, by adding a subdivision; 119B.02, subdivisions 6, 7; 119B.025, subdivision 1, by adding a subdivision; 119B.03, subdivision 9; 119B.09, subdivisions 1, 7; 119B.095, subdivision 2, by adding a subdivision; 119B.125, subdivision 6; 119B.13, subdivisions 6, 7; 119B.16, subdivisions 1, 1a, 1b, by adding subdivisions; 144.057, subdivision 3; 144.121, subdivision 1a, by adding a subdivision; 144.1506, subdivision 2; 144.225, subdivisions 2, 2a, 7; 144.3831, subdivision 1; 144.412; 144.413, subdivisions 1, 4; 144.414, subdivisions 2, 3; 144.416; 144.4165; 144.4167, subdivision 4; 144.417, subdivision 4; 144.552; 144.562, subdivision 2; 144.586, by adding a subdivision; 144.966, subdivision 2; 144.99, subdivision 1; 144A.071, subdivisions 1a, 2, 3, 4a, 4c, 4d, 5a; 144A.073, subdivision 3c, by adding a subdivision; 144A.43, subdivisions 11, 30, by adding a subdivision; 144A.472, subdivisions 5, 7; 144A.473; 144A.474, subdivision 2; 144A.475, subdivisions 1, 2, 5; 144A.476, subdivision 1; 144A.479, subdivision 7, by adding a subdivision; 144A.4791, subdivisions 1, 3, 6, 7, 8, 9; 144A.4792, subdivisions 1, 2, 5, 10; 144A.4793, subdivision 6; 144A.4796, subdivision 2; 144A.4797, subdivision 3; 144A.4798; 144A.4799, subdivisions 1, 3; 144A.484, subdivision 1; 145.908, subdivision 1; 145.928, subdivisions 1, 7; 145.986, subdivisions 1, 1a, 4, 5, 6; 147.037, subdivision 1; 147.0375, subdivision 1; 147D.27, by adding a subdivision; 147E.40, subdivision 1, as amended; 147F.17, subdivision 1, as amended; 148.59; 148.6445, subdivisions 1, 2, 2a, 3, 4, 5, 6, 10; 148.7815, subdivision 1, as amended; 148E.180; 150A.06, subdivision 3, by adding subdivisions; 150A.091, by adding subdivisions; 151.01, subdivisions 23, 31, 35; 151.06, by adding a subdivision; 151.065, subdivisions 1, 2, 3, 6; 151.071, subdivision 2; 151.15, subdivision 1, by adding subdivisions; 151.19, subdivisions 1, 3; 151.211, subdivision 2, by adding a subdivision; 151.252, subdivisions 1, 1a, 3; 151.253, by adding a subdivision; 151.32; 151.40, subdivisions 1, 2; 151.43; 151.46; 151.47, subdivision 1, by adding a subdivision; 152.01, subdivision 9; 152.126, subdivisions 6, 7, by adding a subdivision; 152.22, subdivisions 6, 11, 13, by adding subdivisions; 152.25, subdivisions 1, 1a, 1c, 4; 152.27, subdivisions 2, 3, 4, 5, 6; 152.28, subdivision 1; 152.29, subdivisions 1, 2, 3, 3a; 152.31; 152.32, subdivision 2; 152.33, subdivisions 1, 2; 152.34; 152.36, subdivision 2; 157.22; 214.25, subdivision 2; 237.50, subdivisions 4a, 6a, 10a, 11, by adding subdivisions; 237.51, subdivisions 1, 5a; 237.52, subdivision 5; 237.53; 245.095; 245.4889, subdivision 1; 245.735, subdivision 3; 245A.02, subdivisions 3, 5a, 8, 9, 12, 14, 18, by adding subdivisions; 245A.03, subdivisions 1, 3; 245A.04, subdivisions 1, 2, 4, 6, 7, 10, by adding subdivisions; 245A.05; 245A.07, subdivisions 1, 2, 2a, 3; 245A.14, subdivisions 4, 8, by adding subdivisions; 245A.145, subdivisions 1, 2; 245A.151; 245A.16, subdivision 1; 245A.18, subdivision 2; 245A.40; 245A.41; 245A.50, subdivision 1; 245A.51, subdivision 3, by adding subdivisions; 245A.66, subdivisions 2, 3; 245C.02, subdivision 6a, by adding subdivisions; 245C.03, subdivision 1; 245C.05, subdivisions 4, 5, 5a; 245C.08, subdivisions 1, 3; 245C.10, by adding a subdivision; 245C.13, subdivision 2, by adding a subdivision; 245C.22, subdivisions 4, 5; 245C.24, subdivisions 1, 2, by adding a subdivision; 245C.30, subdivisions 1, 2, 3; 245D.03, subdivision 1; 245D.071, subdivisions 1, 5; 245D.081, subdivision 3; 245D.09, subdivisions 5, 5a; 245D.091, subdivisions 2, 3, 4; 245E.02, by adding a subdivision; 245E.06, subdivision 3; 245F.05, subdivision 2; 245G.01, subdivisions 8, 21, by adding subdivisions; 245G.04; 245G.05; 245G.06, subdivisions 1, 2, 4; 245G.07; 245G.08, subdivision 3; 245G.10, subdivision 4; 245G.11, subdivisions 7, 8; 245G.12; 245G.13, subdivision 1; 245G.15, subdivisions 1, 2; 245G.18, subdivisions 3, 5; 245G.19, subdivision 4; 245G.22, subdivisions 1, 2, 3, 4, 6, 7, 15, 16, 17, 19; 245H.01, by adding subdivisions; 245H.03, by adding a subdivision; 245H.07; 245H.10, subdivision 1; 245H.11; 245H.13, subdivision 5, by adding subdivisions; 245H.14, subdivisions 1, 2, 3, 4, 5, 6; 245H.15, subdivision 1; 246.54, by adding a subdivision; 246B.10; 252.27, subdivision 2a; 252.275, subdivision 3; 252.32, subdivision 1a; 252.41, subdivisions 3, 4, 5, 6, 7, 9; 252.42; 252.43; 252.44; 252.45; 254A.03, subdivision 3; 254A.19, by adding a subdivision; 254B.02, subdivision 1; 254B.03, subdivisions 2, 4; 254B.04, subdivision 1, by adding a subdivision; 254B.05, subdivisions 1, 1a, 1b, 5; 254B.06, subdivisions 1, 2; 256.01, subdivision 14b; 256.043, as added; 256.046, subdivision 1, by adding a subdivision; 256.9365; 256.962, subdivision 5; 256.969, subdivisions 2b, 3a, 9, 17, 19; 256.98, subdivisions 1, 8; 256.983, by adding a subdivision; 256B.02, subdivision 7; 256B.04, subdivisions 14, 21, 22, by adding a subdivision; 256B.055, subdivision 2; 256B.056, subdivisions 1, 3, 5c, 7a; 256B.0625, subdivisions 3b, 13, 13e, 13f, 17, 24, 30, 43, 45a, 57, by adding subdivisions; 256B.064, subdivisions 1a, 1b, 2, by adding subdivisions; 256B.0651, subdivision 17; 256B.0658; 256B.0659, subdivisions 3a, 11, 12, 13, 19, 21, 24, 28, by adding a subdivision; 256B.0757, subdivisions 1, 2, 4, by adding subdivisions; 256B.0911, subdivisions 1a, 3a, 3f, 5, by adding a subdivision; 256B.0915, subdivisions 3a, 6; 256B.092, subdivision 1b; 256B.0921; 256B.27, subdivision 3; 256B.434, subdivisions 1, 3; 256B.49, subdivisions 13, 14; 256B.4912, by adding subdivisions; 256B.4913, subdivision 4a; 256B.4914, subdivisions 2, 3, as amended, 4, 5, 6, 7, 8, 9, 10, 10a, 14, 15, by adding a subdivision; 256B.5014; 256B.69, subdivision 4, by adding a subdivision; 256B.766; 256B.79, subdivisions 2, 3, 4, 5, 6; 256B.85, subdivisions 3, 10, 11, 12, 16, by adding a subdivision; 256I.03, subdivision 8; 256I.04, subdivisions 1, 2b, 2f, by adding subdivisions; 256I.06, subdivision 8; 256J.24, subdivision 5; 256K.45, subdivision 2; 256L.11, subdivision 2; 256M.41, subdivision 3, by adding a subdivision; 256R.02, subdivisions 8, 19, 33, by adding subdivisions; 256R.21, by adding a subdivision; 256R.25; 256R.26; 256R.44; 256R.50, subdivision 6; 260C.007, subdivision 18, by adding a subdivision; 260C.178, subdivision 1; 260C.201, subdivisions 1, 2, 6; 260C.212, subdivision 2; 260C.452, subdivision 4; 260C.503, subdivision 1; 518A.32, subdivision 3; 518A.51; 641.15, subdivision 3a; Laws 2017, chapter 13, article 1, section 15, as amended; Laws 2017, First Special Session chapter 6, article 1, sections 44; 45; article 3, section 49; article 5, section 11; article 8, sections 71, as amended; 72, as amended; Laws 2019, chapter 60, article 3, section 1, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 10; 62A; 62K; 62Q; 119B; 144; 144A; 148; 151; 214; 245; 245A; 245D; 256B; 256K; 256R; 260C; repealing Minnesota Statutes 2018, sections 119B.125, subdivision 8; 119B.16, subdivision 2; 144.414, subdivision 5; 144A.45, subdivision 6; 144A.481; 151.42; 151.44; 151.49; 151.50; 151.51; 151.55; 214.17; 214.18; 214.19; 214.20; 214.21; 214.22; 214.23; 214.24; 245E.06, subdivisions 2, 4, 5; 245H.10, subdivision 2; 246.18, subdivisions 8, 9; 252.41, subdivision 8; 252.431; 252.451; 254B.03, subdivision 4a; 256B.0625, subdivisions 31c, 63; 256B.0659, subdivision 22; 256B.0705; 256B.431, subdivisions 3i, 15, 16; 256B.434, subdivisions 6, 10; 256B.4913, subdivisions 4a, 5, 6, 7; 256B.79, subdivision 7; 256I.05, subdivision 3; 256L.11, subdivision 2a; 256R.53, subdivision 2; Laws 2010, First Special Session chapter 1, article 25, section 3, subdivision 10; Minnesota Rules, parts 2960.3030, subpart 3; 3400.0185, subpart 5; 6400.6970; 7200.6100; 7200.6105; 9502.0425, subparts 4, 16, 17; 9503.0155, subpart 8; 9549.0057; 9549.0060, subpart 14.

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

ARTICLE 1

CHILDREN AND FAMILIES

Section 1.

Minnesota Statutes 2018, section 119B.011, is amended by adding a subdivision to read:

new text begin Subd. 13b. new text end

new text begin Homeless. new text end

new text begin "Homeless" means a self-declared housing status as defined in the McKinney-Vento Homeless Assistance Act and United States Code, title 42, section 11302, paragraph (a). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020. new text end

Sec. 2.

Minnesota Statutes 2018, section 119B.011, subdivision 19, is amended to read:

Subd. 19.

Provider.

"Provider" means:

(1) an individual or child care center or facilitydeleted text begin , either licensed or unlicensed, providing legal child care services as defineddeleted text end new text begin licensed to provide child carenew text end under deleted text begin section 245A.03deleted text end new text begin chapter 245A when operating within the terms of the licensenew text end ; deleted text begin ordeleted text end

(2)new text begin a license exempt center required to be certified under chapter 245H;new text end

new text begin (3)new text end an individual or child care center or facility deleted text begin holdingdeleted text end new text begin that: (i) holds new text end a valid child care license issued by another state or a tribe deleted text begin and providingdeleted text end new text begin ; (ii) providesnew text end child care services in the licensing state or in the area under the licensing tribe's jurisdictionnew text begin ; and (iii) is in compliance with federal health and safety requirements as certified by the licensing state or tribe, or as determined by receipt of child care development block grant funds in the licensing state; ornew text end

new text begin (4) a legal nonlicensed child care provider as defined under section 119B.011, subdivision 16, providing legal child care servicesnew text end . A deleted text begin legally unlicensed familydeleted text end new text begin legal nonlicensed new text end child care provider must be at least 18 years of age, and not a member of the MFIP assistance unit or a member of the family receiving child care assistance to be authorized under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019. new text end

Sec. 3.

Minnesota Statutes 2018, section 119B.011, subdivision 20, is amended to read:

Subd. 20.

Transition year families.

"Transition year families" means families who have received MFIP assistance, or who were eligible to receive MFIP assistance after choosing to discontinue receipt of the cash portion of MFIP assistance under section 256J.31, subdivision 12, or families who have received DWP assistance under section 256J.95 for at least deleted text begin threedeleted text end new text begin onenew text end of the last six months before losing eligibility for MFIP or DWP. Notwithstanding Minnesota Rules, parts 3400.0040, subpart 10, and 3400.0090, subpart 2, transition year child care may be used to support employment, approved education or training programs, or job search that meets the requirements of section 119B.10. Transition year child care is not available to families who have been disqualified from MFIP or DWP due to fraud.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 23, 2020. new text end

Sec. 4.

Minnesota Statutes 2018, section 119B.02, subdivision 7, is amended to read:

Subd. 7.

Child care market rate survey.

deleted text begin Biennially,deleted text end The commissioner shall new text begin conduct the next new text end survey new text begin of new text end prices charged by child care providers in Minnesota new text begin in state fiscal year 2021 and every three years thereafter new text end to determine the 75th percentile for like-care arrangements in county price clusters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

Minnesota Statutes 2018, section 119B.025, subdivision 1, is amended to read:

Subdivision 1.

Applications.

(a) new text begin Except as provided in paragraph (c), clause (4), new text end the county shall verify the following at all initial child care applications using the universal application:

(1) identity of adults;

(2) presence of the minor child in the home, if questionable;

(3) relationship of minor child to the parent, stepparent, legal guardian, eligible relative caretaker, or the spouses of any of the foregoing;

(4) age;

(5) immigration status, if related to eligibility;

(6) Social Security number, if given;

(7) counted income;

(8) spousal support and child support payments made to persons outside the household;

(9) residence; and

(10) inconsistent information, if related to eligibility.

(b) The county must mail a notice of approval or denial of assistance to the applicant within 30 calendar days after receiving the application. The county may extend the response time by 15 calendar days if the applicant is informed of the extension.

new text begin (c) For an applicant who declares that the applicant is homeless and who meets the definition of homeless in section 119B.011, subdivision 13b, the county must: new text end

new text begin (1) if information is needed to determine eligibility, send a request for information to the applicant within five working days after receiving the application; new text end

new text begin (2) if the applicant is eligible, send a notice of approval of assistance within five working days after receiving the application; new text end

new text begin (3) if the applicant is ineligible, send a notice of denial of assistance within 30 days after receiving the application. The county may extend the response time by 15 calendar days if the applicant is informed of the extension; new text end

new text begin (4) not require verifications required by paragraph (a) before issuing the notice of approval or denial; and new text end

new text begin (5) follow limits set by the commissioner for how frequently expedited application processing may be used for an applicant under this paragraph. new text end

new text begin (d) An applicant who declares that the applicant is homeless must submit proof of eligibility within three months of the date the application was received. If proof of eligibility is not submitted within three months, eligibility ends. A 15-day adverse action notice is required to end eligibility. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020. new text end

Sec. 6.

Minnesota Statutes 2018, section 119B.025, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Information to applicants; child care fraud. new text end

new text begin At the time of initial application and at redetermination, the county must provide written notice to the applicant or participant listing the activities that constitute child care fraud and the consequences of committing child care fraud. An applicant or participant shall acknowledge receipt of the child care fraud notice in writing. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2019. new text end

Sec. 7.

Minnesota Statutes 2018, section 119B.03, subdivision 9, is amended to read:

Subd. 9.

Portability pool.

(a) The commissioner shall establish a pool of up to five percent of the annual appropriation for the basic sliding fee program to provide continuous child care assistance for eligible families who move between Minnesota counties. At the end of each allocation period, any unspent funds in the portability pool must be used for assistance under the basic sliding fee program. If expenditures from the portability pool exceed the amount of money available, the reallocation pool must be reduced to cover these shortages.

(b) deleted text begin To be eligible for portable basic sliding fee assistance,deleted text end A family that has moved from a county in which it was receiving basic sliding fee assistance to a county with a waiting list for the basic sliding fee program must:

(1) meet the income and eligibility guidelines for the basic sliding fee program; and

(2) notify deleted text begin the new county of residence within 60 days of moving and submit information to the new county of residence to verify eligibility for the basic sliding fee programdeleted text end new text begin the family's previous county of residence of the family's move to a new county of residencenew text end .

(c) The receiving county must:

(1) accept administrative responsibility for applicants for portable basic sliding fee assistance at the end of the two months of assistance under the Unitary Residency Act;

(2) continue new text begin portability pool new text end basic sliding fee assistance deleted text begin for the lesser of six months ordeleted text end until the family is able to receive assistance under the county's regular basic sliding program; and

(3) notify the commissioner through the quarterly reporting process of any family that meets the criteria of the portable basic sliding fee assistance pool.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective December 2, 2019. new text end

Sec. 8.

Minnesota Statutes 2018, section 119B.09, subdivision 1, is amended to read:

Subdivision 1.

General eligibility requirements.

(a) Child care services must be available to families who need child care to find or keep employment or to obtain the training or education necessary to find employment and who:

(1) have household income less than or equal to 67 percent of the state median income, adjusted for family size, at application and redetermination, and meet the requirements of section 119B.05; receive MFIP assistance; and are participating in employment and training services under chapter 256J; or

(2) have household income less than or equal to 47 percent of the state median income, adjusted for family size, at application and less than or equal to 67 percent of the state median income, adjusted for family size, at redetermination.

(b) Child care services must be made available as in-kind services.

(c) All applicants for child care assistance and families currently receiving child care assistance must be assisted and required to cooperate in establishment of paternity and enforcement of child support obligations for all children in the family at application and redetermination as a condition of program eligibility. For purposes of this section, a family is considered to meet the requirement for cooperation when the family complies with the requirements of section 256.741.

(d) All applicants for child care assistance and families currently receiving child care assistance must pay the co-payment fee under section 119B.12, subdivision 2, as a condition of eligibility. The co-payment fee may include additional recoupment fees due to a child care assistance program overpayment.

new text begin (e) If a family has one child with a child care authorization and the child reaches 13 years of age or the child has a disability and reaches 15 years of age, the family remains eligible until the redetermination. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 29, 2020. new text end

Sec. 9.

Minnesota Statutes 2018, section 119B.095, subdivision 2, is amended to read:

Subd. 2.

Maintain steady child care authorizations.

(a) Notwithstanding Minnesota Rules, chapter 3400, the amount of child care authorized under section 119B.10 for employment, education, or an MFIP or DWP employment plan shall continue at the same number of hours or more hours until redetermination, including:

(1) when the other parent moves in and is employed or has an education plan under section 119B.10, subdivision 3, or has an MFIP or DWP employment plan; or

(2) when the participant's work hours are reduced or a participant temporarily stops working or attending an approved education program. Temporary changes include, but are not limited to, a medical leave, seasonal employment fluctuations, or a school break between semesters.

(b) The county may increase the amount of child care authorized at any time if the participant verifies the need for increased hours for authorized activities.

(c) The county may reduce the amount of child care authorized if a parent requests a reduction or because of a change in:

(1) the child's school schedule;

(2) the custody schedule; or

(3) the provider's availability.

(d) The amount of child care authorized for a family subject to subdivision 1, paragraph (b), must change when the participant's activity schedule changes. Paragraph (a) does not apply to a family subject to subdivision 1, paragraph (b).

new text begin (e) When a child reaches 13 years of age or a child with a disability reaches 15 years of age, the amount of child care authorized shall continue at the same number of hours or more hours until redetermination. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 29, 2020. new text end

Sec. 10.

Minnesota Statutes 2018, section 119B.095, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Assistance for persons who are homeless. new text end

new text begin An applicant who is homeless and eligible for child care assistance is exempt from the activity participation requirements under this chapter for three months. The applicant under this subdivision is eligible for 60 hours of child care assistance per service period for three months from the date the county receives the application. Additional hours may be authorized as needed based on the applicant's participation in employment, education, or MFIP or DWP employment plan. To continue receiving child care assistance after the initial three months, the applicant must verify that the applicant meets eligibility and activity requirements for child care assistance under this chapter. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 21, 2020. new text end

Sec. 11.

Minnesota Statutes 2018, section 119B.16, subdivision 1, is amended to read:

Subdivision 1.

Fair hearing allowednew text begin for applicants and recipientsnew text end .

new text begin (a) new text end An applicant or recipient adversely affected by new text begin an action of new text end a county agency deleted text begin actiondeleted text end new text begin or the commissioner, for an action taken directly against the applicant or recipient,new text end may request new text begin and receive new text end a fair hearing in accordance with new text begin this subdivision and new text end section 256.045.new text begin An applicant or recipient does not have a right to a fair hearing if a county agency or the commissioner takes action against a provider.new text end

new text begin (b) A county agency must offer an informal conference to an applicant or recipient who is entitled to a fair hearing under this section. A county agency must advise an applicant or recipient that a request for a conference is optional and does not delay or replace the right to a fair hearing. new text end

new text begin (c) If a provider's authorization is suspended, denied, or revoked, a county agency or the commissioner must mail notice to each child care assistance program recipient receiving care from the provider. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 12.

Minnesota Statutes 2018, section 119B.16, subdivision 1a, is amended to read:

Subd. 1a.

Fair hearing allowed for providers.

(a) This subdivision applies to providers caring for children receiving child care assistance.

deleted text begin (b) A provider to whom a county agency has assigned responsibility for an overpayment may request a fair hearing in accordance with section 256.045 for the limited purpose of challenging the assignment of responsibility for the overpayment and the amount of the overpayment. The scope of the fair hearing does not include the issues of whether the provider wrongfully obtained public assistance in violation of section 256.98 or was properly disqualified under section 256.98, subdivision 8, paragraph (c), unless the fair hearing has been combined with an administrative disqualification hearing brought against the provider under section 256.046. deleted text end

new text begin (b) A provider may request a fair hearing according to sections 256.045 and 256.046 only if a county agency or the commissioner: new text end

new text begin (1) denies or revokes a provider's authorization, unless the action entitles the provider to an administrative review under section 119B.161; new text end

new text begin (2) assigns responsibility for an overpayment to a provider under section 119B.11, subdivision 2a; new text end

new text begin (3) establishes an overpayment for failure to comply with section 119B.125, subdivision 6; new text end

new text begin (4) seeks monetary recovery or recoupment under section 245E.02, subdivision 4, paragraph (c), clause (2); new text end

new text begin (5) initiates an administrative fraud disqualification hearing; or new text end

new text begin (6) issues a payment and the provider disagrees with the amount of the payment. new text end

new text begin (c) A provider may request a fair hearing by submitting a written request to the Department of Human Services, Appeals Division. A provider's request must be received by the Appeals Division no later than 30 days after the date a county or the commissioner mails the notice. new text end

new text begin (d) The provider's appeal request must contain the following: new text end

new text begin (1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the dollar amount involved for each disputed item; new text end

new text begin (2) the computation the provider believes to be correct, if applicable; new text end

new text begin (3) the statute or rule relied on for each disputed item; and new text end

new text begin (4) the name, address, and telephone number of the person at the provider's place of business with whom contact may be made regarding the appeal. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 13.

Minnesota Statutes 2018, section 119B.16, subdivision 1b, is amended to read:

Subd. 1b.

Joint fair hearings.

deleted text begin When a provider requests a fair hearing under subdivision 1a, the family in whose case the overpayment was created must be made a party to the fair hearing. All other issues raised by the family must be resolved in the same proceeding. When a family requests a fair hearing and claims that the county should have assigned responsibility for an overpayment to a provider, the provider must be made a party to the fair hearing.deleted text end The human services judge assigned to a fair hearing may join a family or a provider as a party to the fair hearing whenever joinder of that party is necessary to fully and fairly resolve deleted text begin overpaymentdeleted text end issues raised in the appeal.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 14.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision to read:

new text begin Subd. 1c. new text end

new text begin Notice to providers. new text end

new text begin (a) Before taking an action appealable under subdivision 1a, paragraph (b), a county agency or the commissioner must mail written notice to the provider against whom the action is being taken. Unless otherwise specified under chapter 119B or 245E or Minnesota Rules, chapter 3400, a county agency or the commissioner must mail the written notice at least 15 calendar days before the adverse action's effective date. new text end

new text begin (b) The notice shall state (1) the factual basis for the department's determination, (2) the action the department intends to take, (3) the dollar amount of the monetary recovery or recoupment, if known, and (4) the provider's right to appeal the department's proposed action. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 15.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Fair hearing stayed. new text end

new text begin (a) If a county agency or the commissioner denies or revokes a provider's authorization based on a licensing action under section 245A.07, and the provider appeals, the provider's fair hearing must be stayed until the commissioner issues an order as required under section 245A.08, subdivision 5. new text end

new text begin (b) If the commissioner denies or revokes a provider's authorization based on decertification under section 245H.07, and the provider appeals, the provider's fair hearing must be stayed until the commissioner issues a final order as required under section 245H.07. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 16.

Minnesota Statutes 2018, section 119B.16, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Final department action. new text end

new text begin Unless the commissioner receives a timely and proper request for an appeal, a county agency's or the commissioner's action shall be considered a final department action. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 17.

new text begin [119B.161] ADMINISTRATIVE REVIEW. new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin A provider has the right to an administrative review under this section if (1) a payment was suspended under chapter 245E, or (2) the provider's authorization was denied or revoked under section 119B.13, subdivision 6, paragraph (d), clause (1) or (2). new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin (a) A county agency or the commissioner must mail written notice to a provider within five days of suspending payment or denying or revoking the provider's authorization under subdivision 1. new text end

new text begin (b) The notice must: new text end

new text begin (1) state the provision under which a county agency or the commissioner is denying, revoking, or suspending the provider's authorization or suspending payment to the provider; new text end

new text begin (2) set forth the general allegations leading to the denial, revocation, or suspension of the provider's authorization. The notice need not disclose any specific information concerning an ongoing investigation; new text end

new text begin (3) state that the denial, revocation, or suspension of the provider's authorization is for a temporary period and explain the circumstances under which the action expires; and new text end

new text begin (4) inform the provider of the right to submit written evidence and argument for consideration by the commissioner. new text end

new text begin (c) Notwithstanding Minnesota Rules, part 3400.0185, if a county agency or the commissioner suspends payment to a provider under chapter 245E or denies or revokes a provider's authorization under section 119B.13, subdivision 6, paragraph (d), clause (1) or (2), a county agency or the commissioner must send notice of service authorization closure to each affected family. The notice sent to an affected family is effective on the date the notice is created. new text end

new text begin Subd. 3. new text end

new text begin Duration. new text end

new text begin If a provider's payment is suspended under chapter 245E or a provider's authorization is denied or revoked under section 119B.13, subdivision 6, paragraph (d), clause (1) or (2), the provider's denial, revocation, temporary suspension, or payment suspension remains in effect until: new text end

new text begin (1) the commissioner or a law enforcement authority determines that there is insufficient evidence warranting the action and a county agency or the commissioner does not pursue an additional administrative remedy under chapter 245E or section 256.98; or new text end

new text begin (2) all criminal, civil, and administrative proceedings related to the provider's alleged misconduct conclude and any appeal rights are exhausted. new text end

new text begin Subd. 4. new text end

new text begin Good cause exception. new text end

new text begin The commissioner may find that good cause exists not to deny, revoke, or suspend a provider's authorization, or not to continue a denial, revocation, or suspension of a provider's authorization if any of the following are applicable: new text end

new text begin (1) a law enforcement authority specifically requested that a provider's authorization not be denied, revoked, or suspended because that action may compromise an ongoing investigation; new text end

new text begin (2) the commissioner determines that the denial, revocation, or suspension should be removed based on the provider's written submission; or new text end

new text begin (3) the commissioner determines that the denial, revocation, or suspension is not in the best interests of the program. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 18.

Minnesota Statutes 2018, section 245E.06, subdivision 3, is amended to read:

Subd. 3.

Appeal of department deleted text begin sanctiondeleted text end new text begin actionnew text end .

deleted text begin (a) If the department does not pursue a criminal action against a provider, license holder, controlling individual, or recipient for financial misconduct, but the department imposes an administrative sanction under section 245E.02, subdivision 4, paragraph (c), any individual or entity against whom the sanction was imposed may appeal the department's administrative sanction under this section pursuant to section 119B.16 or 256.045 with the additional requirements in clauses (1) to (4). An appeal must specify: deleted text end

deleted text begin (1) each disputed item, the reason for the dispute, and an estimate of the dollar amount involved for each disputed item, if appropriate; deleted text end

deleted text begin (2) the computation that is believed to be correct, if appropriate; deleted text end

deleted text begin (3) the authority in the statute or rule relied upon for each disputed item; and deleted text end

deleted text begin (4) the name, address, and phone number of the person at the provider's place of business with whom contact may be made regarding the appeal. deleted text end

deleted text begin (b) Notwithstanding section 245E.03, subdivision 4, an appeal is considered timely only if postmarked or received by the department's Appeals Division within 30 days after receiving a notice of department sanction. deleted text end

deleted text begin (c) Before the appeal hearing, the department may deny or terminate authorizations or payment to the entity or individual if the department determines that the action is necessary to protect the public welfare or the interests of the child care assistance program. deleted text end new text begin A provider's rights related to the department's action taken under this chapter against a provider are established in sections 119B.16 and 119B.161. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 19.

Minnesota Statutes 2018, section 256.01, subdivision 14b, is amended to read:

Subd. 14b.

American Indian child welfare projects.

(a) The commissioner of human services may authorize projects to deleted text begin testdeleted text end new text begin initiatenew text end tribal delivery of child welfare services to American Indian children and their parents and custodians living on the reservation. The commissioner has authority to solicit and determine which tribes may participate in a project. Grants may be issued to Minnesota Indian tribes to support the projects. The commissioner may waive existing state rules as needed to accomplish the projects. The commissioner may authorize projects to use alternative methods of (1) new text begin screening, new text end investigatingnew text begin ,new text end and assessing reports of child maltreatment, and (2) administrative reconsideration, administrative appeal, and judicial appeal of maltreatment determinations, provided the alternative methods used by the projects comply with the provisions of sections 256.045 and 626.556 deleted text begin dealingdeleted text end new text begin that dealnew text end with the rights of individuals who are the subjects of reports or investigations, including notice and appeal rights and data practices requirements.new text begin The commissioner shall only authorize alternative methods that comply with the public policy under section 626.556, subdivision 1.new text end The commissioner may seek any federal approvals necessary to carry out the projects as well as seek and use any funds available to the commissioner, including use of federal funds, foundation funds, existing grant funds, and other funds. The commissioner is authorized to advance state funds as necessary to operate the projects. Federal reimbursement applicable to the projects is appropriated to the commissioner for the purposes of the projects. The projects must be required to address responsibility for safety, permanency, and well-being of children.

(b) For the purposes of this section, "American Indian child" means a person under 21 years old and who is a tribal member or eligible for membership in one of the tribes chosen for a project under this subdivision and who is residing on the reservation of that tribe.

(c) In order to qualify for an American Indian child welfare project, a tribe must:

(1) be one of the existing tribes with reservation land in Minnesota;

(2) have a tribal court with jurisdiction over child custody proceedings;

(3) have a substantial number of children for whom determinations of maltreatment have occurred;

(4)new text begin (i)new text end have capacity to respond to reports of abuse and neglect under section 626.556;new text begin or (ii) have codified the tribe's screening, investigation, and assessment of reports of child maltreatment procedures, if authorized to use an alternative method by the commissioner under paragraph (a);new text end

(5) provide a wide range of services to families in need of child welfare services; and

(6) have a tribal-state title IV-E agreement in effect.

(d) Grants awarded under this section may be used for the nonfederal costs of providing child welfare services to American Indian children on the tribe's reservation, including costs associated with:

(1) assessment and prevention of child abuse and neglect;

(2) family preservation;

(3) facilitative, supportive, and reunification services;

(4) out-of-home placement for children removed from the home for child protective purposes; and

(5) other activities and services approved by the commissioner that further the goals of providing safety, permanency, and well-being of American Indian children.

(e) When a tribe has initiated a project and has been approved by the commissioner to assume child welfare responsibilities for American Indian children of that tribe under this section, the affected county social service agency is relieved of responsibility for responding to reports of abuse and neglect under section 626.556 for those children during the time within which the tribal project is in effect and funded. The commissioner shall work with tribes and affected counties to develop procedures for data collection, evaluation, and clarification of ongoing role and financial responsibilities of the county and tribe for child welfare services prior to initiation of the project. Children who have not been identified by the tribe as participating in the project shall remain the responsibility of the county. Nothing in this section shall alter responsibilities of the county for law enforcement or court services.

(f) Participating tribes may conduct children's mental health screenings under section 245.4874, subdivision 1, paragraph (a), clause (12), for children who are eligible for the initiative and living on the reservation and who meet one of the following criteria:

(1) the child must be receiving child protective services;

(2) the child must be in foster care; or

(3) the child's parents must have had parental rights suspended or terminated.

Tribes may access reimbursement from available state funds for conducting the screenings. Nothing in this section shall alter responsibilities of the county for providing services under section 245.487.

(g) Participating tribes may establish a local child mortality review panel. In establishing a local child mortality review panel, the tribe agrees to conduct local child mortality reviews for child deaths or near-fatalities occurring on the reservation under subdivision 12. Tribes with established child mortality review panels shall have access to nonpublic data and shall protect nonpublic data under subdivision 12, paragraphs (c) to (e). The tribe shall provide written notice to the commissioner and affected counties when a local child mortality review panel has been established and shall provide data upon request of the commissioner for purposes of sharing nonpublic data with members of the state child mortality review panel in connection to an individual case.

(h) The commissioner shall collect information on outcomes relating to child safety, permanency, and well-being of American Indian children who are served in the projects. Participating tribes must provide information to the state in a format and completeness deemed acceptable by the state to meet state and federal reporting requirements.

(i) In consultation with the White Earth Band, the commissioner shall develop and submit to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services a plan to transfer legal responsibility for providing child protective services to White Earth Band member children residing in Hennepin County to the White Earth Band. The plan shall include a financing proposal, definitions of key terms, statutory amendments required, and other provisions required to implement the plan. The commissioner shall submit the plan by January 15, 2012.

Sec. 20.

Minnesota Statutes 2018, section 256J.24, subdivision 5, is amended to read:

Subd. 5.

MFIP transitional standard.

new text begin (a) new text end The MFIP transitional standard is based on the number of persons in the assistance unit eligible for both food and cash assistance. The amount of the transitional standard is published annually by the Department of Human Services.

new text begin (b) The amount of the MFIP cash assistance portion of the transitional standard is increased $100 per month per household. This increase shall be reflected in the MFIP cash assistance portion of the transitional standard published annually by the commissioner. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 1, 2020. new text end

Sec. 21.

Minnesota Statutes 2018, section 256M.41, subdivision 3, is amended to read:

Subd. 3.

Payments deleted text begin based on performancedeleted text end .

deleted text begin (a)deleted text end The commissioner shall make payments under this section to each county deleted text begin board on a calendar year basis in an amount determined under paragraph (b)deleted text end new text begin on or before July 10 of each yearnew text end .

deleted text begin (b) Calendar year allocations under subdivision 1 shall be paid to counties in the following manner: deleted text end

deleted text begin (1) 80 percent of the allocation as determined in subdivision 1 must be paid to counties on or before July 10 of each year; deleted text end

deleted text begin (2) ten percent of the allocation shall be withheld until the commissioner determines if the county has met the performance outcome threshold of 90 percent based on face-to-face contact with alleged child victims. In order to receive the performance allocation, the county child protection workers must have a timely face-to-face contact with at least 90 percent of all alleged child victims of screened-in maltreatment reports. The standard requires that each initial face-to-face contact occur consistent with timelines defined in section 626.556, subdivision 10, paragraph (i). The commissioner shall make threshold determinations in January of each year and payments to counties meeting the performance outcome threshold shall occur in February of each year. Any withheld funds from this appropriation for counties that do not meet this requirement shall be reallocated by the commissioner to those counties meeting the requirement; and deleted text end

deleted text begin (3) ten percent of the allocation shall be withheld until the commissioner determines that the county has met the performance outcome threshold of 90 percent based on face-to-face visits by the case manager. In order to receive the performance allocation, the total number of visits made by caseworkers on a monthly basis to children in foster care and children receiving child protection services while residing in their home must be at least 90 percent of the total number of such visits that would occur if every child were visited once per month. The commissioner shall make such determinations in January of each year and payments to counties meeting the performance outcome threshold shall occur in February of each year. Any withheld funds from this appropriation for counties that do not meet this requirement shall be reallocated by the commissioner to those counties meeting the requirement. For 2015, the commissioner shall only apply the standard for monthly foster care visits. deleted text end

deleted text begin (c) The commissioner shall work with stakeholders and the Human Services Performance Council under section 402A.16 to develop recommendations for specific outcome measures that counties should meet in order to receive funds withheld under paragraph (b), and include in those recommendations a determination as to whether the performance measures under paragraph (b) should be modified or phased out. The commissioner shall report the recommendations to the legislative committees having jurisdiction over child protection issues by January 1, 2018. deleted text end

Sec. 22.

Minnesota Statutes 2018, section 256M.41, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin County performance on child protection measures. new text end

new text begin The commissioner shall set child protection measures and standards. The commissioner shall require an underperforming county to demonstrate that the county designated sufficient funds and implemented a reasonable strategy to improve child protection performance, including the provision of a performance improvement plan and additional remedies identified by the commissioner. The commissioner may redirect up to 20 percent of a county's funds under this section toward the performance improvement plan. Sanctions under section 256M.20, subdivision 3, related to noncompliance with federal performance standards also apply. new text end

Sec. 23.

Minnesota Statutes 2018, section 260C.007, subdivision 18, is amended to read:

Subd. 18.

Foster care.

new text begin (a) new text end "Foster care" means deleted text begin 24 hourdeleted text end new text begin 24-hournew text end substitute care for deleted text begin children placed away from their parents or guardian anddeleted text end new text begin a childnew text end for whom a responsible social services agency has placement and care responsibilitydeleted text begin . "Foster care" includes, but is not limited to, placementdeleted text end new text begin and:new text end

new text begin (1) who is placed away from the child's parent or guardiannew text end in foster family homes, foster homes of relatives, group homes, emergency shelters, residential facilities not excluded in this subdivision, child care institutions, and preadoptive homesdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (2) who is colocated with the child's parent or guardian in a licensed residential family-based substance use disorder treatment program as defined in subdivision 22a; or new text end

new text begin (3) who is returned to the care of the child's parent or guardian from whom the child was removed under a trial home visit pursuant to section 260C.201, subdivision 1, paragraph (a), clause (3). new text end

new text begin (b)new text end A child is in foster care under this definition regardless of whether the facility is licensed and payments are made for the cost of care. Nothing in this definition creates any authority to place a child in a home or facility that is required to be licensed which is not licensed. "Foster care" does not include placement in any of the following facilities: hospitals, inpatient chemical dependency treatment facilitiesnew text begin where the child is the recipient of the treatmentnew text end , facilities that are primarily for delinquent children, any corrections facility or program within a particular correction's facility not meeting requirements for title IV-E facilities as determined by the commissioner, facilities to which a child is committed under the provision of chapter 253B, forestry camps, or jails. Foster care is intended to provide for a child's safety or to access treatment. Foster care must not be used as a punishment or consequence for a child's behavior.

Sec. 24.

Minnesota Statutes 2018, section 260C.007, is amended by adding a subdivision to read:

new text begin Subd. 22a. new text end

new text begin Licensed residential family-based substance use disorder treatment program. new text end

new text begin "Licensed residential family-based substance use disorder treatment program" means a residential treatment facility that provides the parent or guardian with parenting skills training, parent education, or individual and family counseling, under an organizational structure and treatment framework that involves understanding, recognizing, and responding to the effects of all types of trauma according to recognized principles of a trauma-informed approach and trauma-specific interventions to address the consequences of trauma and facilitate healing. The residential program must be licensed by the Department of Human Services under chapter 245A and sections 245G.01 to 245G.16, 245G.19, and 245G.21 as a residential substance use disorder treatment program specializing in the treatment of clients with children. new text end

Sec. 25.

Minnesota Statutes 2018, section 260C.178, subdivision 1, is amended to read:

Subdivision 1.

Hearing and release requirements.

(a) If a child was taken into custody under section 260C.175, subdivision 1, clause (1) or (2), item (ii), the court shall hold a hearing within 72 hours of the time the child was taken into custody, excluding Saturdays, Sundays, and holidays, to determine whether the child should continue in custody.

(b) Unless there is reason to believe that the child would endanger self or others or not return for a court hearing, or that the child's health or welfare would be immediately endangered, the child shall be released to the custody of a parent, guardian, custodian, or other suitable person, subject to reasonable conditions of release including, but not limited to, a requirement that the child undergo a chemical use assessment as provided in section 260C.157, subdivision 1.

(c) If the court determines there is reason to believe that the child would endanger self or others or not return for a court hearing, or that the child's health or welfare would be immediately endangered if returned to the care of the parent or guardian who has custody and from whom the child was removed, the court shall order the child into foster carenew text begin as defined in section 260C.007, subdivision 18,new text end under the legal responsibility of the responsible social services agency or responsible probation or corrections agency for the purposes of protective care as that term is used in the juvenile court rules or into the home of a noncustodial parent and order the noncustodial parent to comply with any conditions the court determines to be appropriate to the safety and care of the child, including cooperating with paternity establishment proceedings in the case of a man who has not been adjudicated the child's father. The court shall not give the responsible social services legal custody and order a trial home visit at any time prior to adjudication and disposition under section 260C.201, subdivision 1, paragraph (a), clause (3), but may order the child returned to the care of the parent or guardian who has custody and from whom the child was removed and order the parent or guardian to comply with any conditions the court determines to be appropriate to meet the safety, health, and welfare of the child.

(d) In determining whether the child's health or welfare would be immediately endangered, the court shall consider whether the child would reside with a perpetrator of domestic child abuse.

(e) The court, before determining whether a child should be placed in or continue in foster care under the protective care of the responsible agency, shall also make a determination, consistent with section 260.012 as to whether reasonable efforts were made to prevent placement or whether reasonable efforts to prevent placement are not required. In the case of an Indian child, the court shall determine whether active efforts, according to section 260.762 and the Indian Child Welfare Act of 1978, United States Code, title 25, section 1912(d), were made to prevent placement. The court shall enter a finding that the responsible social services agency has made reasonable efforts to prevent placement when the agency establishes either:

(1) that it has actually provided services or made efforts in an attempt to prevent the child's removal but that such services or efforts have not proven sufficient to permit the child to safely remain in the home; or

(2) that there are no services or other efforts that could be made at the time of the hearing that could safely permit the child to remain home or to return home. When reasonable efforts to prevent placement are required and there are services or other efforts that could be ordered which would permit the child to safely return home, the court shall order the child returned to the care of the parent or guardian and the services or efforts put in place to ensure the child's safety. When the court makes a prima facie determination that one of the circumstances under paragraph (g) exists, the court shall determine that reasonable efforts to prevent placement and to return the child to the care of the parent or guardian are not required.

If the court finds the social services agency's preventive or reunification efforts have not been reasonable but further preventive or reunification efforts could not permit the child to safely remain at home, the court may nevertheless authorize or continue the removal of the child.

(f) The court may not order or continue the foster care placement of the child unless the court makes explicit, individualized findings that continued custody of the child by the parent or guardian would be contrary to the welfare of the child and that placement is in the best interest of the child.

(g) At the emergency removal hearing, or at any time during the course of the proceeding, and upon notice and request of the county attorney, the court shall determine whether a petition has been filed stating a prima facie case that:

(1) the parent has subjected a child to egregious harm as defined in section 260C.007, subdivision 14;

(2) the parental rights of the parent to another child have been involuntarily terminated;

(3) the child is an abandoned infant under section 260C.301, subdivision 2, paragraph (a), clause (2);

(4) the parents' custodial rights to another child have been involuntarily transferred to a relative under Minnesota Statutes 2010, section 260C.201, subdivision 11, paragraph (e), clause (1); section 260C.515, subdivision 4; or a similar law of another jurisdiction;

(5) the parent has committed sexual abuse as defined in section 626.556, subdivision 2, against the child or another child of the parent;

(6) the parent has committed an offense that requires registration as a predatory offender under section 243.166, subdivision 1b, paragraph (a) or (b); or

(7) the provision of services or further services for the purpose of reunification is futile and therefore unreasonable.

(h) When a petition to terminate parental rights is required under section 260C.301, subdivision 4, or 260C.503, subdivision 2, but the county attorney has determined not to proceed with a termination of parental rights petition, and has instead filed a petition to transfer permanent legal and physical custody to a relative under section 260C.507, the court shall schedule a permanency hearing within 30 days of the filing of the petition.

(i) If the county attorney has filed a petition under section 260C.307, the court shall schedule a trial under section 260C.163 within 90 days of the filing of the petition except when the county attorney determines that the criminal case shall proceed to trial first under section 260C.503, subdivision 2, paragraph (c).

(j) If the court determines the child should be ordered into foster care and the child's parent refuses to give information to the responsible social services agency regarding the child's father or relatives of the child, the court may order the parent to disclose the names, addresses, telephone numbers, and other identifying information to the responsible social services agency for the purpose of complying with sections 260C.151, 260C.212, 260C.215, and 260C.221.

(k) If a child ordered into foster care has siblings, whether full, half, or step, who are also ordered into foster care, the court shall inquire of the responsible social services agency of the efforts to place the children together as required by section 260C.212, subdivision 2, paragraph (d), if placement together is in each child's best interests, unless a child is in placement for treatment or a child is placed with a previously noncustodial parent who is not a parent to all siblings. If the children are not placed together at the time of the hearing, the court shall inquire at each subsequent hearing of the agency's reasonable efforts to place the siblings together, as required under section 260.012. If any sibling is not placed with another sibling or siblings, the agency must develop a plan to facilitate visitation or ongoing contact among the siblings as required under section 260C.212, subdivision 1, unless it is contrary to the safety or well-being of any of the siblings to do so.

(l) When the court has ordered the child into foster care or into the home of a noncustodial parent, the court may order a chemical dependency evaluation, mental health evaluation, medical examination, and parenting assessment for the parent as necessary to support the development of a plan for reunification required under subdivision 7 and section 260C.212, subdivision 1, or the child protective services plan under section 626.556, subdivision 10, and Minnesota Rules, part 9560.0228.

Sec. 26.

new text begin [260C.190] FAMILY-FOCUSED RESIDENTIAL PLACEMENT. new text end

new text begin Subdivision 1. new text end

new text begin Placement. new text end

new text begin (a) An agency with legal responsibility for a child under section 260C.178, subdivision 1, paragraph (c), or legal custody of a child under section 260C.201, subdivision 1, paragraph (a), clause (3), may colocate a child with a parent who is receiving services in a licensed residential family-based substance use disorder treatment program for up to 12 months. new text end

new text begin (b) During the child's placement under paragraph (a), the agency: (1) may visit the child as the agency deems necessary and appropriate; (2) shall continue to have access to information under section 260C.208; and (3) shall continue to provide appropriate services to both the parent and the child. new text end

new text begin (c) The agency may terminate the child's placement under paragraph (a) to protect the child's health, safety, or welfare and may remove the child to foster care without a prior court order or authorization. new text end

new text begin Subd. 2. new text end

new text begin Case plans. new text end

new text begin (a) Before a child may be colocated with a parent in a licensed residential family-based substance use disorder treatment program, a recommendation that the child's placement with a parent is in the child's best interests must be documented in the child's case plan. Each child must have a written case plan developed with the parent and the treatment program staff that describes the safety plan for the child and the treatment program's responsibilities if the parent leaves or is discharged without completing the program. The treatment program must be provided with a copy of the case plan that includes the recommendations and safety plan at the time the child is colocated with the parent. new text end

new text begin (b) An out-of-home placement plan under section 260C.212, subdivision 1, must be completed no later than 30 days from when a child is colocated with a parent in a licensed residential family-based substance use disorder treatment program. The written plan developed with parent and treatment program staff in paragraph (a) may be updated and must be incorporated into the out-of-home placement plan. The treatment program must be provided with a copy of the child's out-of-home placement plan. new text end

new text begin Subd. 3. new text end

new text begin Required reviews and permanency proceedings. new text end

new text begin (a) For a child colocated with a parent under subdivision 1, court reviews must occur according to section 260C.202. new text end

new text begin (b) If a child has been in foster care for six months, a court review under section 260C.202 may be conducted in lieu of a permanency progress review hearing under section 260C.204 when the child is colocated with a parent consistent with section 260C.503, subdivision 3, paragraph (c), in a licensed residential family-based substance use disorder treatment program. new text end

new text begin (c) If the child is colocated with a parent in a licensed residential family-based substance use disorder treatment program 12 months after the child was placed in foster care, the agency must file a report with the court regarding the parent's progress in the treatment program and the agency's reasonable efforts to finalize the child's safe and permanent return to the care and custody of the parent consistent with section 260C.503, subdivision 3, paragraph (c), in lieu of filing a petition required under section 260C.505. new text end

new text begin (d) The court shall make findings regarding the reasonable efforts of the agency to finalize the child's return home as the permanency disposition order in the child's best interests. The court may continue the child's foster care placement colocated with a parent in a licensed residential family-based substance use disorder treatment program for up to 12 months. When a child has been in foster care placement for 12 months, but the duration of the colocation with a parent in a licensed residential family-based substance use disorder treatment program is less than 12 months, the court may continue the colocation with the total time spent in foster care not exceeding 15 out of the most recent 22 months. If the court finds that the agency fails to make reasonable efforts to finalize the child's return home as the permanency disposition order in the child's best interests, the court may order additional efforts to support the child remaining in the care of the parent. new text end

new text begin (e) If a parent leaves or is discharged from a licensed residential family-based substance use disorder treatment program without completing the program, the child's placement under this section is terminated and the agency may remove the child to foster care without a prior court order or authorization. Within three days of any termination of a child's placement, the agency shall notify the court and each party. new text end

new text begin (f) If a parent leaves or is discharged from a licensed residential family-based substance use disorder treatment program without completing the program and the child has been in foster care for less than six months, the court must hold a review hearing within ten days of receiving notice of a termination of a child's placement and must order an alternative disposition under section 260C.201. new text end

new text begin (g) If a parent leaves or is discharged from a licensed residential family-based substance use disorder treatment program without completing the program and the child is colocated with a parent and the child has been in foster care for more than six months but less than 12 months, the court must conduct a permanency progress review hearing under section 260C.204 no later than 30 days after the day the parent leaves or is discharged. new text end

new text begin (h) If a parent leaves or is discharged from a licensed residential family-based substance use disorder treatment program without completing the program and the child is colocated with a parent and the child has been in foster care for more than 12 months, the court shall begin permanency proceedings under sections 260C.503 to 260C.521. new text end

Sec. 27.

Minnesota Statutes 2018, section 260C.201, subdivision 1, is amended to read:

Subdivision 1.

Dispositions.

(a) If the court finds that the child is in need of protection or services or neglected and in foster care, it shall enter an order making any of the following dispositions of the case:

(1) place the child under the protective supervision of the responsible social services agency or child-placing agency in the home of a parent of the child under conditions prescribed by the court directed to the correction of the child's need for protection or services:

(i) the court may order the child into the home of a parent who does not otherwise have legal custody of the child, however, an order under this section does not confer legal custody on that parent;

(ii) if the court orders the child into the home of a father who is not adjudicated, the father must cooperate with paternity establishment proceedings regarding the child in the appropriate jurisdiction as one of the conditions prescribed by the court for the child to continue in the father's home; and

(iii) the court may order the child into the home of a noncustodial parent with conditions and may also order both the noncustodial and the custodial parent to comply with the requirements of a case plan under subdivision 2; or

(2) transfer legal custody to one of the following:

(i) a child-placing agency; or

(ii) the responsible social services agency. In making a foster care placement for a child whose custody has been transferred under this subdivision, the agency shall make an individualized determination of how the placement is in the child's best interests using the consideration for relatives deleted text begin anddeleted text end new text begin ,new text end the best interest factors in section 260C.212, subdivision 2, paragraph (b)new text begin , and may include a child colocated with a parent in a licensed residential family-based substance use disorder treatment program under section 260C.190new text end ; or

(3) order a trial home visit without modifying the transfer of legal custody to the responsible social services agency under clause (2). Trial home visit means the child is returned to the care of the parent or guardian from whom the child was removed for a period not to exceed six months. During the period of the trial home visit, the responsible social services agency:

(i) shall continue to have legal custody of the child, which means the agency may see the child in the parent's home, at school, in a child care facility, or other setting as the agency deems necessary and appropriate;

(ii) shall continue to have the ability to access information under section 260C.208;

(iii) shall continue to provide appropriate services to both the parent and the child during the period of the trial home visit;

(iv) without previous court order or authorization, may terminate the trial home visit in order to protect the child's health, safety, or welfare and may remove the child to foster care;

(v) shall advise the court and parties within three days of the termination of the trial home visit when a visit is terminated by the responsible social services agency without a court order; and

(vi) shall prepare a report for the court when the trial home visit is terminated whether by the agency or court order which describes the child's circumstances during the trial home visit and recommends appropriate orders, if any, for the court to enter to provide for the child's safety and stability. In the event a trial home visit is terminated by the agency by removing the child to foster care without prior court order or authorization, the court shall conduct a hearing within ten days of receiving notice of the termination of the trial home visit by the agency and shall order disposition under this subdivision or deleted text begin conduct a permanency hearing under subdivision 11 or 11adeleted text end new text begin commence permanency proceedings under sections 260C.503 to 260C.515new text end . The time period for the hearing may be extended by the court for good cause shown and if it is in the best interests of the child as long as the total time the child spends in foster care without a permanency hearing does not exceed 12 months;

(4) if the child has been adjudicated as a child in need of protection or services because the child is in need of special services or care to treat or ameliorate a physical or mental disability or emotional disturbance as defined in section 245.4871, subdivision 15, the court may order the child's parent, guardian, or custodian to provide it. The court may order the child's health plan company to provide mental health services to the child. Section 62Q.535 applies to an order for mental health services directed to the child's health plan company. If the health plan, parent, guardian, or custodian fails or is unable to provide this treatment or care, the court may order it provided. Absent specific written findings by the court that the child's disability is the result of abuse or neglect by the child's parent or guardian, the court shall not transfer legal custody of the child for the purpose of obtaining special treatment or care solely because the parent is unable to provide the treatment or care. If the court's order for mental health treatment is based on a diagnosis made by a treatment professional, the court may order that the diagnosing professional not provide the treatment to the child if it finds that such an order is in the child's best interests; or

(5) if the court believes that the child has sufficient maturity and judgment and that it is in the best interests of the child, the court may order a child 16 years old or older to be allowed to live independently, either alone or with others as approved by the court under supervision the court considers appropriate, if the county board, after consultation with the court, has specifically authorized this dispositional alternative for a child.

(b) If the child was adjudicated in need of protection or services because the child is a runaway or habitual truant, the court may order any of the following dispositions in addition to or as alternatives to the dispositions authorized under paragraph (a):

(1) counsel the child or the child's parents, guardian, or custodian;

(2) place the child under the supervision of a probation officer or other suitable person in the child's own home under conditions prescribed by the court, including reasonable rules for the child's conduct and the conduct of the parents, guardian, or custodian, designed for the physical, mental, and moral well-being and behavior of the child;

(3) subject to the court's supervision, transfer legal custody of the child to one of the following:

(i) a reputable person of good moral character. No person may receive custody of two or more unrelated children unless licensed to operate a residential program under sections 245A.01 to 245A.16; or

(ii) a county probation officer for placement in a group foster home established under the direction of the juvenile court and licensed pursuant to section 241.021;

(4) require the child to pay a fine of up to $100. The court shall order payment of the fine in a manner that will not impose undue financial hardship upon the child;

(5) require the child to participate in a community service project;

(6) order the child to undergo a chemical dependency evaluation and, if warranted by the evaluation, order participation by the child in a drug awareness program or an inpatient or outpatient chemical dependency treatment program;

(7) if the court believes that it is in the best interests of the child or of public safety that the child's driver's license or instruction permit be canceled, the court may order the commissioner of public safety to cancel the child's license or permit for any period up to the child's 18th birthday. If the child does not have a driver's license or permit, the court may order a denial of driving privileges for any period up to the child's 18th birthday. The court shall forward an order issued under this clause to the commissioner, who shall cancel the license or permit or deny driving privileges without a hearing for the period specified by the court. At any time before the expiration of the period of cancellation or denial, the court may, for good cause, order the commissioner of public safety to allow the child to apply for a license or permit, and the commissioner shall so authorize;

(8) order that the child's parent or legal guardian deliver the child to school at the beginning of each school day for a period of time specified by the court; or

(9) require the child to perform any other activities or participate in any other treatment programs deemed appropriate by the court.

To the extent practicable, the court shall enter a disposition order the same day it makes a finding that a child is in need of protection or services or neglected and in foster care, but in no event more than 15 days after the finding unless the court finds that the best interests of the child will be served by granting a delay. If the child was under eight years of age at the time the petition was filed, the disposition order must be entered within ten days of the finding and the court may not grant a delay unless good cause is shown and the court finds the best interests of the child will be served by the delay.

(c) If a child who is 14 years of age or older is adjudicated in need of protection or services because the child is a habitual truant and truancy procedures involving the child were previously dealt with by a school attendance review board or county attorney mediation program under section 260A.06 or 260A.07, the court shall order a cancellation or denial of driving privileges under paragraph (b), clause (7), for any period up to the child's 18th birthday.

(d) In the case of a child adjudicated in need of protection or services because the child has committed domestic abuse and been ordered excluded from the child's parent's home, the court shall dismiss jurisdiction if the court, at any time, finds the parent is able or willing to provide an alternative safe living arrangement for the child, as defined in Laws 1997, chapter 239, article 10, section 2.

(e) When a parent has complied with a case plan ordered under subdivision 6 and the child is in the care of the parent, the court may order the responsible social services agency to monitor the parent's continued ability to maintain the child safely in the home under such terms and conditions as the court determines appropriate under the circumstances.

Sec. 28.

Minnesota Statutes 2018, section 260C.201, subdivision 2, is amended to read:

Subd. 2.

Written findings.

(a) Any order for a disposition authorized under this section shall contain written findings of fact to support the disposition and case plan ordered and shall also set forth in writing the following information:

(1) why the best interests and safety of the child are served by the disposition and case plan ordered;

(2) what alternative dispositions or services under the case plan were considered by the court and why such dispositions or services were not appropriate in the instant case;

(3) when legal custody of the child is transferred, the appropriateness of the particular placement made or to be made by the placing agency using the factors in section 260C.212, subdivision 2, paragraph (b)new text begin , or the appropriateness of a child colocated with a parent in a licensed residential family-based substance use disorder treatment program under section 260C.190new text end ;

(4) whether reasonable efforts to finalize the permanent plan for the child consistent with section 260.012 were made including reasonable efforts:

(i) to prevent the child's placement and to reunify the child with the parent or guardian from whom the child was removed at the earliest time consistent with the child's safety. The court's findings must include a brief description of what preventive and reunification efforts were made and why further efforts could not have prevented or eliminated the necessity of removal or that reasonable efforts were not required under section 260.012 or 260C.178, subdivision 1;

(ii) to identify and locate any noncustodial or nonresident parent of the child and to assess such parent's ability to provide day-to-day care of the child, and, where appropriate, provide services necessary to enable the noncustodial or nonresident parent to safely provide day-to-day care of the child as required under section 260C.219, unless such services are not required under section 260.012 or 260C.178, subdivision 1;

(iii) to make the diligent search for relatives and provide the notices required under section 260C.221; a finding made pursuant to a hearing under section 260C.202 that the agency has made diligent efforts to conduct a relative search and has appropriately engaged relatives who responded to the notice under section 260C.221 and other relatives, who came to the attention of the agency after notice under section 260C.221 was sent, in placement and case planning decisions fulfills the requirement of this item;

(iv) to identify and make a foster care placement in the home of an unlicensed relative, according to the requirements of section 245A.035, a licensed relative, or other licensed foster care provider who will commit to being the permanent legal parent or custodian for the child in the event reunification cannot occur, but who will actively support the reunification plan for the child; and

(v) to place siblings together in the same home or to ensure visitation is occurring when siblings are separated in foster care placement and visitation is in the siblings' best interests under section 260C.212, subdivision 2, paragraph (d); and

(5) if the child has been adjudicated as a child in need of protection or services because the child is in need of special services or care to treat or ameliorate a mental disability or emotional disturbance as defined in section 245.4871, subdivision 15, the written findings shall also set forth:

(i) whether the child has mental health needs that must be addressed by the case plan;

(ii) what consideration was given to the diagnostic and functional assessments performed by the child's mental health professional and to health and mental health care professionals' treatment recommendations;

(iii) what consideration was given to the requests or preferences of the child's parent or guardian with regard to the child's interventions, services, or treatment; and

(iv) what consideration was given to the cultural appropriateness of the child's treatment or services.

(b) If the court finds that the social services agency's preventive or reunification efforts have not been reasonable but that further preventive or reunification efforts could not permit the child to safely remain at home, the court may nevertheless authorize or continue the removal of the child.

(c) If the child has been identified by the responsible social services agency as the subject of concurrent permanency planning, the court shall review the reasonable efforts of the agency to develop a permanency plan for the child that includes a primary plan which is for reunification with the child's parent or guardian and a secondary plan which is for an alternative, legally permanent home for the child in the event reunification cannot be achieved in a timely manner.

Sec. 29.

Minnesota Statutes 2018, section 260C.201, subdivision 6, is amended to read:

Subd. 6.

Case plan.

(a) For each disposition ordered where the child is placed away from a parent or guardian, the court shall order the responsible social services agency to prepare a written out-of-home placement plan according to the requirements of section 260C.212, subdivision 1.new text begin When a foster child is colocated with a parent in a licensed residential family-based substance use disorder treatment program under section 260C.190, the case plan must specify the recommendation for the colocation before the child is colocated with the parent.new text end

(b) In cases where the child is not placed out of the home or is ordered into the home of a noncustodial parent, the responsible social services agency shall prepare a plan for delivery of social services to the child and custodial parent under section 626.556, subdivision 10, or any other case plan required to meet the needs of the child. The plan shall be designed to safely maintain the child in the home or to reunite the child with the custodial parent.

(c) The court may approve the case plan as presented or modify it after hearing from the parties. Once the plan is approved, the court shall order all parties to comply with it. A copy of the approved case plan shall be attached to the court's order and incorporated into it by reference.

(d) A party has a right to request a court review of the reasonableness of the case plan upon a showing of a substantial change of circumstances.

Sec. 30.

Minnesota Statutes 2018, section 260C.212, subdivision 2, is amended to read:

Subd. 2.

Placement decisions based on best interests of the child.

(a) The policy of the state of Minnesota is to ensure that the child's best interests are met by requiring an individualized determination of the needs of the child and of how the selected placement will serve the needs of the child being placed. The authorized child-placing agency shall place a child, released by court order or by voluntary release by the parent or parents, in a family foster home selected by considering placement with relatives and important friends in the following order:

(1) with an individual who is related to the child by blood, marriage, or adoption; or

(2) with an individual who is an important friend with whom the child has resided or had significant contact.

For an Indian child, the agency shall follow the order of placement preferences in the Indian Child Welfare Act of 1978, United States Code, title 25, section 1915.

(b) Among the factors the agency shall consider in determining the needs of the child are the following:

(1) the child's current functioning and behaviors;

(2) the medical needs of the child;

(3) the educational needs of the child;

(4) the developmental needs of the child;

(5) the child's history and past experience;

(6) the child's religious and cultural needs;

(7) the child's connection with a community, school, and faith community;

(8) the child's interests and talents;

(9) the child's relationship to current caretakers, parents, siblings, and relatives;

(10) the reasonable preference of the child, if the court, or the child-placing agency in the case of a voluntary placement, deems the child to be of sufficient age to express preferences; and

(11) for an Indian child, the best interests of an Indian child as defined in section 260.755, subdivision 2a.

(c) Placement of a child cannot be delayed or denied based on race, color, or national origin of the foster parent or the child.

(d) Siblings should be placed together for foster care and adoption at the earliest possible time unless it is documented that a joint placement would be contrary to the safety or well-being of any of the siblings or unless it is not possible after reasonable efforts by the responsible social services agency. In cases where siblings cannot be placed together, the agency is required to provide frequent visitation or other ongoing interaction between siblings unless the agency documents that the interaction would be contrary to the safety or well-being of any of the siblings.

(e) Except for emergency placement as provided for in section 245A.035, the following requirements must be satisfied before the approval of a foster or adoptive placement in a related or unrelated home: (1) a completed background study under section 245C.08; and (2) a completed review of the written home study required under section 260C.215, subdivision 4, clause (5), or 260C.611, to assess the capacity of the prospective foster or adoptive parent to ensure the placement will meet the needs of the individual child.

new text begin (f) The agency must determine whether colocation with a parent who is receiving services in a licensed residential family-based substance use disorder treatment program is in the child's best interests according to paragraph (b) and include that determination in the child's case plan. The agency may consider additional factors not identified in paragraph (b). The agency's determination must be documented in the child's case plan before the child is colocated with a parent. new text end

Sec. 31.

new text begin [260C.228] VOLUNTARY FOSTER CARE; CHILD IS COLOCATED WITH PARENT IN TREATMENT PROGRAM. new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin When a parent requests assistance from an agency and both the parent and agency agree that a child's placement in foster care and colocation with a parent in a licensed residential family-based substance use treatment facility as defined by section 260C.007, subdivision 22a, is in the child's best interests, the agency must specify the recommendation for the placement in the child's case plan. After the child's case plan includes the recommendation, the agency and the parent may enter into a written voluntary placement agreement on a form approved by the commissioner. new text end

new text begin Subd. 2. new text end

new text begin Judicial review. new text end

new text begin (a) A judicial review of a child's voluntary placement is required within 165 days of the date the voluntary agreement was signed. The agency responsible for the child's placement in foster care shall request the judicial review. new text end

new text begin (b) The agency must forward a written report to the court at least five business days prior to the judicial review in paragraph (a). The report must contain: new text end

new text begin (i) a statement regarding whether the colocation of the child with a parent in a licensed residential family-based substance use disorder treatment program meets the child's needs and continues to be in the child's best interests; new text end

new text begin (ii) the child's name, dates of birth, race, gender, and current address; new text end

new text begin (iii) the names, race, dates of birth, residences, and post office addresses of the child's parents or custodian; new text end

new text begin (iv) a statement regarding the child's eligibility for membership or enrollment in an Indian tribe and the agency's compliance with applicable provisions of sections 260.751 to 260.835; new text end

new text begin (v) the name and address of the licensed residential family-based substance use disorder treatment program where the child and parent or custodian are colocated; new text end

new text begin (vi) a copy of the out-of-home placement plan under section 260C.212, subdivisions 1 and 3; new text end

new text begin (vii) a written summary of the proceedings of any administrative review required under section 260C.203; and new text end

new text begin (viii) any other information the agency, parent or custodian, child, or licensed residential family-based substance use disorder treatment program wants the court to consider. new text end

new text begin (c) The agency must inform a child, if the child is 12 years of age or older; the child's parent; and the licensed residential family-based substance use disorder treatment program of the reporting and court review requirements of this section and of their rights to submit information to the court as follows: new text end

new text begin (1) if the child, the child's parent, or the licensed residential family-based substance use disorder treatment program wants to send information to the court, the agency shall advise those persons of the reporting date and the date by which the agency must receive the information to submit to the court with the agency's report; and new text end

new text begin (2) the agency must inform the child, the child's parent, and the licensed residential family-based substance use disorder treatment program that they have the right to be heard in person by the court. An in-person hearing must be held if requested by the child, parent or legal guardian, or licensed residential family-based substance use disorder treatment program. new text end

new text begin (d) If, at the time required for the agency's report under this section, a child 12 years of age or older disagrees about the placement colocating the child with the parent in a licensed residential family-based substance use disorder treatment program or services provided under the out-of-home placement plan under section 260C.212, subdivision 1, the agency shall include information regarding the child's disagreement and to the extent possible the basis for the child's disagreement in the report. new text end

new text begin (e) Regardless of whether an in-person hearing is requested within ten days of receiving the agency's report, the court has jurisdiction to and must determine: new text end

new text begin (i) whether the voluntary foster care arrangement is in the child's best interests; new text end

new text begin (ii) whether the parent and agency are appropriately planning for the child; and new text end

new text begin (iii) if a child 12 years of age or older disagrees with the foster care placement colocating the child with the parent in a licensed residential family-based substance use disorder treatment program or services provided under the out-of-home placement plan, whether to appoint counsel and a guardian ad litem for the child according to section 260C.163. new text end

new text begin (f) Unless requested by the parent, representative of the licensed residential family-based substance use disorder treatment program, or child, an in-person hearing is not required for the court to make findings and issue an order. new text end

new text begin (g) If the court finds the voluntary foster care arrangement is in the child's best interests and that the agency and parent are appropriately planning for the child, the court shall issue an order containing explicit individualized findings to support the court's determination. The individual findings shall be based on the agency's written report and other materials submitted to the court. The court may make this determination notwithstanding the child's disagreement, if any, reported to the court under paragraph (d). new text end

new text begin (h) The court shall send a copy of the order to the county attorney, the agency, the parent, a child 12 years of age or older, and the licensed residential family-based substance use disorder treatment program. new text end

new text begin (i) If the court finds continuing the voluntary foster care arrangement is not in the child's best interests or that the agency or the parent is not appropriately planning for the child, the court shall notify the agency, the parent, the licensed residential family-based substance use disorder treatment program, a child 12 years of age or older, and the county attorney of the court's determination and the basis for the court's determination. The court shall set the matter for hearing and appoint a guardian ad litem for the child under section 260C.163, subdivision 5. new text end

new text begin Subd. 3. new text end

new text begin Termination. new text end

new text begin The voluntary placement agreement terminates at the parent's discharge from the licensed residential family-based substance use disorder treatment program, or upon receipt of a written and dated request from the parent, unless the request specifies a later date. If the child's voluntary foster care placement meets the calculated time to require a permanency proceeding under section 260C.503, subdivision 3, paragraph (a), and the child is not returned home, the agency must file a petition according to section 260C.141 or 260C.505. new text end

Sec. 32.

Minnesota Statutes 2018, section 260C.452, subdivision 4, is amended to read:

Subd. 4.

Administrative or court review of placements.

(a) When the child is 14 years of age or older, the court, in consultation with the child, shall review the independent living plan according to section 260C.203, paragraph (d).

(b) The responsible social services agency shall file a copy of the notification required in subdivision 3 with the court. If the responsible social services agency does not file the notice by the time the child is 17-1/2 years of age, the court shall require the responsible social services agency to file the notice.

(c) The court shall ensure that the responsible social services agency assists the child in obtaining the following documents before the child leaves foster care: a Social Security card; an official or certified copy of the child's birth certificate; a state identification card or driver's license, tribal enrollment identification card, green card, or school visa; health insurance information; the child's school, medical, and dental records; a contact list of the child's medical, dental, and mental health providers; and contact information for the child's siblings, if the siblings are in foster care.

(d) For a child who will be discharged from foster care at 18 years of age or older, the responsible social services agency must develop a personalized transition plan as directed by the child during the 90-day period immediately prior to the expected date of discharge. The transition plan must be as detailed as the child elects and include specific options, including but not limited to:

(1) affordable housing with necessary supports that does not include a homeless shelter;

(2) health insurance, including eligibility for medical assistance as defined in section 256B.055, subdivision 17;

(3) education, including application to the Education and Training Voucher Program;

(4) local opportunities for mentors and continuing support services, including the Healthy Transitions and Homeless Prevention program, if available;

(5) workforce supports and employment services;

(6) a copy of the child's consumer credit report as defined in section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report, at no cost to the child;

(7) information on executing a health care directive under chapter 145C and on the importance of designating another individual to make health care decisions on behalf of the child if the child becomes unable to participate in decisions; deleted text begin anddeleted text end

(8) appropriate contact information through 21 years of age if the child needs information or help dealing with a crisis situationdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (9) official documentation that the youth was previously in foster care. new text end

Sec. 33.

Minnesota Statutes 2018, section 260C.503, subdivision 1, is amended to read:

Subdivision 1.

Required permanency proceedings.

new text begin (a) new text end Except for children in foster care pursuant to chapter 260D, where the child is in foster care or in the care of a noncustodial or nonresident parent, the court shall commence proceedings to determine the permanent status of a child by holding the admit-deny hearing required under section 260C.507 not later than 12 months after the child is placed in foster care or in the care of a noncustodial or nonresident parent. Permanency proceedings for children in foster care pursuant to chapter 260D shall be according to section 260D.07.

new text begin (b) Permanency proceedings for a foster child who is colocated with a parent in a licensed residential family-based substance use disorder treatment program shall be conducted according to section 260C.190. new text end

Sec. 34.

Minnesota Statutes 2018, section 518A.32, subdivision 3, is amended to read:

Subd. 3.

Parent not considered voluntarily unemployed, underemployed, or employed on a less than full-time basis.

A parent is not considered voluntarily unemployed, underemployed, or employed on a less than full-time basis upon a showing by the parent that:

(1) the unemployment, underemployment, or employment on a less than full-time basis is temporary and will ultimately lead to an increase in income;

(2) the unemployment, underemployment, or employment on a less than full-time basis represents a bona fide career change that outweighs the adverse effect of that parent's diminished income on the child; or

(3) the unemployment, underemployment, or employment on a less than full-time basis is because a parent is physically or mentally incapacitated or due to incarcerationdeleted text begin , except where the reason for incarceration is the parent's nonpayment of supportdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 35.

Minnesota Statutes 2018, section 518A.51, is amended to read:

518A.51 FEES FOR IV-D SERVICES.

(a) When a recipient of IV-D services is no longer receiving assistance under the state's title IV-A, IV-E foster care, or medical assistance programs, the public authority responsible for child support enforcement must notify the recipient, within five working days of the notification of ineligibility, that IV-D services will be continued unless the public authority is notified to the contrary by the recipient. The notice must include the implications of continuing to receive IV-D services, including the available services and fees, cost recovery fees, and distribution policies relating to fees.

(b) In the case of an individual who has never received assistance under a state program funded under title IV-A of the Social Security Act and for whom the public authority has collected at least deleted text begin $500deleted text end new text begin $550new text end of support, the public authority must impose an annual federal collections fee of deleted text begin $25deleted text end new text begin $35new text end for each case in which services are furnished. This fee must be retained by the public authority from support collected on behalf of the individual, but not from the first deleted text begin $500deleted text end new text begin $550new text end collected.

(c) When the public authority provides full IV-D services to an obligee who has applied for those services, upon written notice to the obligee, the public authority must charge a cost recovery fee of two percent of the amount collected. This fee must be deducted from the amount of the child support and maintenance collected and not assigned under section 256.741 before disbursement to the obligee. This fee does not apply to an obligee who:

(1) is currently receiving assistance under the state's title IV-A, IV-E foster care, or medical assistance programs; or

(2) has received assistance under the state's title IV-A or IV-E foster care programs, until the person has not received this assistance for 24 consecutive months.

(d) When the public authority provides full IV-D services to an obligor who has applied for such services, upon written notice to the obligor, the public authority must charge a cost recovery fee of two percent of the monthly court-ordered child support and maintenance obligation. The fee may be collected through income withholding, as well as by any other enforcement remedy available to the public authority responsible for child support enforcement.

(e) Fees assessed by state and federal tax agencies for collection of overdue support owed to or on behalf of a person not receiving public assistance must be imposed on the person for whom these services are provided. The public authority upon written notice to the obligee shall assess a fee of $25 to the person not receiving public assistance for each successful federal tax interception. The fee must be withheld prior to the release of the funds received from each interception and deposited in the general fund.

(f) Federal collections fees collected under paragraph (b) and cost recovery fees collected under paragraphs (c) and (d) retained by the commissioner of human services shall be considered child support program income according to Code of Federal Regulations, title 45, section 304.50, and shall be deposited in the special revenue fund account established under paragraph (h). The commissioner of human services must elect to recover costs based on either actual or standardized costs.

(g) The limitations of this section on the assessment of fees shall not apply to the extent inconsistent with the requirements of federal law for receiving funds for the programs under title IV-A and title IV-D of the Social Security Act, United States Code, title 42, sections 601 to 613 and United States Code, title 42, sections 651 to 662.

(h) The commissioner of human services is authorized to establish a special revenue fund account to receive the federal collections fees collected under paragraph (b) and cost recovery fees collected under paragraphs (c) and (d).

(i) The nonfederal share of the cost recovery fee revenue must be retained by the commissioner and distributed as follows:

(1) one-half of the revenue must be transferred to the child support system special revenue account to support the state's administration of the child support enforcement program and its federally mandated automated system;

(2) an additional portion of the revenue must be transferred to the child support system special revenue account for expenditures necessary to administer the fees; and

(3) the remaining portion of the revenue must be distributed to the counties to aid the counties in funding their child support enforcement programs.

(j) The nonfederal share of the federal collections fees must be distributed to the counties to aid them in funding their child support enforcement programs.

(k) The commissioner of human services shall distribute quarterly any of the funds dedicated to the counties under paragraphs (i) and (j) using the methodology specified in section 256.979, subdivision 11. The funds received by the counties must be reinvested in the child support enforcement program and the counties must not reduce the funding of their child support programs by the amount of the funding distributed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2019. new text end

Sec. 36.

new text begin INSTRUCTION TO COMMISSIONER. new text end

new text begin All individuals in connection with a licensed children's residential facility required to complete a background study under Minnesota Statutes, chapter 245C, must complete a new background study consistent with the obligations and requirements of this article. The commissioner of human services shall establish a schedule for (1) individuals in connection with a licensed children's residential facility that serves children eligible to receive federal Title IV-E funding to complete the new background study by March 1, 2020, and (2) individuals in connection with a licensed children's residential facility that serves children not eligible to receive federal Title IV-E funding to complete the new background study by March 1, 2021. new text end

Sec. 37.

new text begin CHILD WELFARE TRAINING ACADEMY. new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The commissioner of human services shall modify the Child Welfare Training System developed pursuant to Minnesota Statutes, section 626.5591, subdivision 2, according to this section. The new training framework shall be known as the Child Welfare Training Academy. new text end

new text begin Subd. 2. new text end

new text begin Administration. new text end

new text begin (a) The Child Welfare Training Academy must be administered through five regional hubs in northwest, northeast, southwest, southeast, and central Minnesota. Each hub must deliver training targeted to the needs of the hub's particular region, taking into account varying demographics, resources, and practice outcomes. new text end

new text begin (b) The Child Welfare Training Academy must use training methods best suited to the training content. National best practices in adult learning must be used to the greatest extent possible, including online learning methodologies, coaching, mentoring, and simulated skill application. new text end

new text begin (c) Content of training delivered by the Child Welfare Training Academy must be informed using multidisciplinary approaches and must include input from stakeholders, including but not limited to child welfare professionals, resource parents, biological parents and caregivers, and other community members with expertise in child welfare racial disparities and implicit bias. Content must be structured to reflect the variety of communities served by the child welfare system in Minnesota and must be informed with attention to both child safety and the evidence-based understanding that maintaining family relationships and preventing out-of-home placement are essential to child well-being. Training delivered by the Child Welfare Training Academy must emphasize racial disparities and disproportionate child welfare outcomes that exist in Minnesota and must include specific content on recognizing and addressing implicit bias. new text end

new text begin (d) Each child welfare worker and supervisor must complete a certification, including a competency-based knowledge test and a skills demonstration, at the completion of the worker's or supervisor's initial training and biennially thereafter. The commissioner shall develop ongoing training requirements and a method for tracking certifications. new text end

new text begin (e) The Child Welfare Training Academy must serve the primary training audiences of (1) county and tribal child welfare workers, (2) county and tribal child welfare supervisors, and (3) staff at private agencies providing out-of-home placement services for children involved in Minnesota's county and tribal child welfare system. new text end

new text begin Subd. 3. new text end

new text begin Partnerships. new text end

new text begin The commissioner of human services shall enter into a partnership with the University of Minnesota to collaborate in the administration of workforce training. new text end

new text begin Subd. 4. new text end

new text begin Rulemaking. new text end

new text begin The commissioner of human services may adopt rules as necessary to establish the Child Welfare Training Academy. new text end

Sec. 38.

new text begin CHILD WELFARE CASELOAD STUDY. new text end

new text begin (a) The commissioner of human services shall conduct a child welfare caseload study to collect data on (1) the number of child welfare workers in Minnesota, and (2) the amount of time that child welfare workers spend on different components of child welfare work. The study must be completed by October 1, 2020. new text end

new text begin (b) The commissioner shall report the results of the child welfare caseload study to the governor and to the chairs and ranking minority members of the committees in the house of representatives and senate with jurisdiction over human services by December 1, 2020. new text end

new text begin (c) After the child welfare caseload study is complete, the commissioner shall work with counties and other stakeholders to develop a process for ongoing monitoring of child welfare workers' caseloads. new text end

Sec. 39.

new text begin DIRECTION TO COMMISSIONER; HOMELESS YOUTH ACCESS TO BIRTH RECORDS AND MINNESOTA IDENTIFICATION CARDS. new text end

new text begin No later than January 15, 2020, the commissioner of human services, in consultation with the commissioners of health and public safety, shall report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over the Homeless Youth Act with recommendations on providing homeless youth with access to birth records and Minnesota identification cards at no cost. new text end

Sec. 40.

new text begin DIRECTION TO COMMISSIONER; FAMILY FIRST PREVENTION KINSHIP SERVICES. new text end

new text begin The commissioner of human services shall review opportunities to implement kinship navigator models that support placement of children with relative foster parents in anticipation of reimbursement for eligible services under the Family First Prevention Services Act. Kinship navigator models would assist relative foster parents with home studies and licensing requirements and provide ongoing support to the relative caregivers and children in out-of-home placement with relatives. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 41.

new text begin DIRECTION TO COMMISSIONER; RELATIVE SEARCH. new text end

new text begin The commissioner of human services shall develop and provide guidance to assist local social services agencies in conducting relative searches under Minnesota Statutes, section 260C.221. The commissioner shall issue a bulletin containing relative search guidance by January 1, 2020. Guidance from the commissioner shall relate to: new text end

new text begin (1) easily understandable methods of relative notification; new text end

new text begin (2) resources for local social services agency child welfare staff to improve engagement and communication with relatives and kin; and new text end

new text begin (3) providing information to relatives and kin about all permanency options, sustaining relationships, visitation options, and supporting permanency. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 42.

new text begin REVISOR INSTRUCTION. new text end

new text begin The revisor of statutes, in consultation with the Department of Human Services, House Research Department, and Senate Counsel, Research and Fiscal Analysis shall change the terms "food support" and "food stamps" to "Supplemental Nutrition Assistance Program" or "SNAP" in Minnesota Statutes when appropriate. The revisor may make technical and other necessary changes to sentence structure to preserve the meaning of the text. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020. new text end

Sec. 43.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2018, sections 119B.16, subdivision 2; and 245E.06, subdivisions 2, 4, and 5, new text end new text begin and new text end new text begin Minnesota Rules, part 3400.0185, subpart 5, new text end new text begin are repealed effective February 26, 2021. new text end

ARTICLE 2

OPERATIONS

Section 1.

Minnesota Statutes 2018, section 13.46, subdivision 2, is amended to read:

Subd. 2.

General.

(a) Data on individuals collected, maintained, used, or disseminated by the welfare system are private data on individuals, and shall not be disclosed except:

(1) according to section 13.05;

(2) according to court order;

(3) according to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system and an investigator acting on behalf of a county, the state, or the federal government, including a law enforcement person or attorney in the investigation or prosecution of a criminal, civil, or administrative proceeding relating to the administration of a program;

(5) to personnel of the welfare system who require the data to verify an individual's identity; determine eligibility, amount of assistance, and the need to provide services to an individual or family across programs; coordinate services for an individual or family; evaluate the effectiveness of programs; assess parental contribution amounts; and investigate suspected fraud;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) to the Department of Revenue to assess parental contribution amounts for purposes of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs and to identify individuals who may benefit from these programs. The following information may be disclosed under this paragraph: an individual's and their dependent's names, dates of birth, Social Security numbers, income, addresses, and other data as required, upon request by the Department of Revenue. Disclosures by the commissioner of revenue to the commissioner of human services for the purposes described in this clause are governed by section 270B.14, subdivision 1. Tax refund or tax credit programs include, but are not limited to, the dependent care credit under section 290.067, the Minnesota working family credit under section 290.0671, the property tax refund and rental credit under section 290A.04, and the Minnesota education credit under section 290.0674;

(9) between the Department of Human Services, the Department of Employment and Economic Development, and when applicable, the Department of Education, for the following purposes:

(i) to monitor the eligibility of the data subject for unemployment benefits, for any employment or training program administered, supervised, or certified by that agency;

(ii) to administer any rehabilitation program or child care assistance program, whether alone or in conjunction with the welfare system;

(iii) to monitor and evaluate the Minnesota family investment program or the child care assistance program by exchanging data on recipients and former recipients of food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a medical program formerly codified under chapter 256D; and

(iv) to analyze public assistance employment services and program utilization, cost, effectiveness, and outcomes as implemented under the authority established in Title II, Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999. Health records governed by sections 144.291 to 144.298 and "protected health information" as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code of Federal Regulations, title 45, parts 160-164, including health care claims utilization information, must not be exchanged under this clause;

(10) to appropriate parties in connection with an emergency if knowledge of the information is necessary to protect the health or safety of the individual or other individuals or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be disclosed to the protection and advocacy system established in this state according to Part C of Public Law 98-527 to protect the legal and human rights of persons with developmental disabilities or other related conditions who live in residential facilities for these persons if the protection and advocacy system receives a complaint by or on behalf of that person and the person does not have a legal guardian or the state or a designee of the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be disclosed to the Minnesota Office of Higher Education to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant Social Security numbers and names collected by the telephone assistance program may be disclosed to the Department of Revenue to conduct an electronic data match with the property tax refund database to determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a Minnesota family investment program participant may be disclosed to law enforcement officers who provide the name of the participant and notify the agency that:

(i) the participant:

(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after conviction, for a crime or attempt to commit a crime that is a felony under the laws of the jurisdiction from which the individual is fleeing; or

(B) is violating a condition of probation or parole imposed under state or federal law;

(ii) the location or apprehension of the felon is within the law enforcement officer's official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance may be disclosed to probation officers and corrections agents who are supervising the recipient and to law enforcement officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from food support applicant or recipient households may be disclosed to local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the Food Stamp Act, according to Code of Federal Regulations, title 7, section 272.1(c);

(18) the address, Social Security number, and, if available, photograph of any member of a household receiving food support shall be made available, on request, to a local, state, or federal law enforcement officer if the officer furnishes the agency with the name of the member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal law; or

(C) has information that is necessary for the officer to conduct an official duty related to conduct described in subitem (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official duty;

(19) the current address of a recipient of Minnesota family investment program, general assistance, or food support may be disclosed to law enforcement officers who, in writing, provide the name of the recipient and notify the agency that the recipient is a person required to register under section 243.166, but is not residing at the address at which the recipient is registered under section 243.166;

(20) certain information regarding child support obligors who are in arrears may be made public according to section 518A.74;

(21) data on child support payments made by a child support obligor and data on the distribution of those payments excluding identifying information on obligees may be disclosed to all obligees to whom the obligor owes support, and data on the enforcement actions undertaken by the public authority, the status of those actions, and data on the income of the obligor or obligee may be disclosed to the other party;

(22) data in the work reporting system may be disclosed under section 256.998, subdivision 7;

(23) to the Department of Education for the purpose of matching Department of Education student data with public assistance data to determine students eligible for free and reduced-price meals, meal supplements, and free milk according to United States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state funds that are distributed based on income of the student's family; and to verify receipt of energy assistance for the telephone assistance plan;

(24) the current address and telephone number of program recipients and emergency contacts may be released to the commissioner of health or a community health board as defined in section 145A.02, subdivision 5, when the commissioner or community health board has reason to believe that a program recipient is a disease case, carrier, suspect case, or at risk of illness, and the data are necessary to locate the person;

(25) to other state agencies, statewide systems, and political subdivisions of this state, including the attorney general, and agencies of other states, interstate information networks, federal agencies, and other entities as required by federal regulation or law for the administration of the child support enforcement program;

(26) to personnel of public assistance programs as defined in section 256.741, for access to the child support system database for the purpose of administration, including monitoring and evaluation of those public assistance programs;

(27) to monitor and evaluate the Minnesota family investment program by exchanging data between the Departments of Human Services and Education, on recipients and former recipients of food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a medical program formerly codified under chapter 256D;

(28) to evaluate child support program performance and to identify and prevent fraud in the child support program by exchanging data between the Department of Human Services, Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b), without regard to the limitation of use in paragraph (c), Department of Health, Department of Employment and Economic Development, and other state agencies as is reasonably necessary to perform these functions;

(29) counties new text begin and the Department of Human Services new text end operating child care assistance programs under chapter 119B may disseminate data on program participants, applicants, and providers to the commissioner of education;

(30) child support data on the child, the parents, and relatives of the child may be disclosed to agencies administering programs under titles IV-B and IV-E of the Social Security Act, as authorized by federal law;

(31) to a health care provider governed by sections 144.291 to 144.298, to the extent necessary to coordinate services;

(32) to the chief administrative officer of a school to coordinate services for a student and family; data that may be disclosed under this clause are limited to name, date of birth, gender, and address; or

(33) to county correctional agencies to the extent necessary to coordinate services and diversion programs; data that may be disclosed under this clause are limited to name, client demographics, program, case status, and county worker information.

(b) Information on persons who have been treated for drug or alcohol abuse may only be disclosed according to the requirements of Code of Federal Regulations, title 42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), (17), or (18), or paragraph (b), are investigative data and are confidential or protected nonpublic while the investigation is active. The data are private after the investigation becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are not subject to the access provisions of subdivision 10, paragraph (b).

For the purposes of this subdivision, a request will be deemed to be made in writing if made through a computer interface system.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 2.

Minnesota Statutes 2018, section 13.46, subdivision 3, is amended to read:

Subd. 3.

Investigative data.

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

(1) pursuant to section 13.05;

(2) pursuant to statute or valid court order;

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

new text begin (4) to an agent of the welfare system or an investigator acting on behalf of a county, state, or federal government, including a law enforcement officer or attorney in the investigation or prosecution of a criminal, civil, or administrative proceeding, unless the commissioner of human services determines that disclosure may compromise a Department of Human Services ongoing investigation; or new text end

deleted text begin (4)deleted text end new text begin (5)new text end to provide notices required or permitted by statute.

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

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

(c) Notwithstanding paragraph (a) and section 13.39, the existence of an investigation by the commissionernew text begin of human servicesnew text end of possible overpayments of public funds to a service provider or recipient may be disclosed if the commissioner determines that it will not compromise the investigation.

Sec. 3.

Minnesota Statutes 2018, section 13.46, subdivision 4, is amended to read:

Subd. 4.

Licensing data.

(a) As used in this subdivision:

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

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

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

(b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license holders, and former licensees are public: name, address, telephone number of licensees, date of receipt of a completed application, dates of licensure, licensed capacity, type of client preferred, variances granted, record of training and education in child care and child development, type of dwelling, name and relationship of other family members, previous license history, class of license, the existence and status of complaints, and the number of serious injuries to or deaths of individuals in the licensed program as reported to the commissioner of human services, the local social services agency, or any other county welfare agency. For purposes of this clause, a serious injury is one that is treated by a physician.

(ii) new text begin Except as provided in item (v), new text end when a correction order, an order to forfeit a fine, an order of license suspension, an order of temporary immediate suspension, an order of license revocation, an order of license denial, or an order of conditional license has been issued, or a complaint is resolved, the following data on current and former licensees and applicants are public: the general nature of the complaint or allegations leading to the temporary immediate suspension; the substance and investigative findings of the licensing or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence of settlement negotiations; the record of informal resolution of a licensing violation; orders of hearing; findings of fact; conclusions of law; specifications of the final correction order, fine, suspension, temporary immediate suspension, revocation, denial, or conditional license contained in the record of licensing action; whether a fine has been paid; and the status of any appeal of these actions.

(iii) When a license denial under section 245A.05 or a sanction under section 245A.07 is based on a determination that a license holder, applicant, or controlling individual is responsible for maltreatment under section 626.556 or 626.557, the identity of the applicant, license holder, or controlling individual as the individual responsible for maltreatment is public data at the time of the issuance of the license denial or sanction.

(iv) When a license denial under section 245A.05 or a sanction under section 245A.07 is based on a determination that a license holder, applicant, or controlling individual is disqualified under chapter 245C, the identity of the license holder, applicant, or controlling individual as the disqualified individual and the reason for the disqualification are public data at the time of the issuance of the licensing sanction or denial. If the applicant, license holder, or controlling individual requests reconsideration of the disqualification and the disqualification is affirmed, the reason for the disqualification and the reason to not set aside the disqualification are public data.

new text begin (v) A correction order or fine issued to a child care provider for a licensing violation is private data on individuals under section 13.02, subdivision 12, or nonpublic data under section 13.02, subdivision 9, if the correction order or fine is seven years old or older. new text end

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

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

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

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

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

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

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

(f) Data generated in the course of licensing investigations that relate to an alleged violation of law are investigative data under subdivision 3.

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

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

(i) Data on individuals collected according to licensing activities under chapters 245A and 245C, data on individuals collected by the commissioner of human services according to investigations under chapters 245A, 245B, 245C, and 245D, and sections 626.556 and 626.557 may be shared with the Department of Human Rights, the Department of Health, the Department of Corrections, the ombudsman for mental health and developmental disabilities, and the individual's professional regulatory board when there is reason to believe that laws or standards under the jurisdiction of those agencies may have been violated or the information may otherwise be relevant to the board's regulatory jurisdiction. Background study data on an individual who is the subject of a background study under chapter 245C for a licensed service for which the commissioner of human services is the license holder may be shared with the commissioner and the commissioner's delegate by the licensing division. Unless otherwise specified in this chapter, the identity of a reporter of alleged maltreatment or licensing violations may not be disclosed.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2019. new text end

Sec. 4.

Minnesota Statutes 2018, section 13.461, subdivision 28, is amended to read:

Subd. 28.

Child care assistance program.

Data collected, maintained, used, or disseminated by the welfare system pertaining to persons selected as legal nonlicensed child care providers by families receiving child care assistance are classified under section 119B.02, subdivision 6new text begin , paragraph (a)new text end .new text begin Child care assistance program payment data is classified under section 119B.02, subdivision 6, paragraph (b).new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 5.

Minnesota Statutes 2018, section 15C.02, is amended to read:

15C.02 LIABILITY FOR CERTAIN ACTS.

(a) A person who commits any act described in clauses (1) to (7) is liable to the state or the political subdivision for a civil penalty deleted text begin of not less than $5,500 and not more than $11,000 per false or fraudulent claimdeleted text end new text begin in the amounts set forth in the federal False Claims Act, United States Code, title 31, section 3729, and as modified by the federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015new text end , plus three times the amount of damages that the state or the political subdivision sustains because of the act of that person, except as otherwise provided in paragraph (b):

(1) knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval;

(2) knowingly makes or uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim;

(3) knowingly conspires to commit a violation of clause (1), (2), (4), (5), (6), or (7);

(4) has possession, custody, or control of property or money used, or to be used, by the state or a political subdivision and knowingly delivers or causes to be delivered less than all of that money or property;

(5) is authorized to make or deliver a document certifying receipt for money or property used, or to be used, by the state or a political subdivision and, intending to defraud the state or a political subdivision, makes or delivers the receipt without completely knowing that the information on the receipt is true;

(6) knowingly buys, or receives as a pledge of an obligation or debt, public property from an officer or employee of the state or a political subdivision who lawfully may not sell or pledge the property; or

(7) knowingly makes or uses, or causes to be made or used, a false record or statement material to an obligation to pay or transmit money or property to the state or a political subdivision, or knowingly conceals or knowingly and improperly avoids or decreases an obligation to pay or transmit money or property to the state or a political subdivision.

(b) Notwithstanding paragraph (a), the court may assess not less than two times the amount of damages that the state or the political subdivision sustains because of the act of the person if:

(1) the person committing a violation under paragraph (a) furnished an officer or employee of the state or the political subdivision responsible for investigating the false or fraudulent claim violation with all information known to the person about the violation within 30 days after the date on which the person first obtained the information;

(2) the person fully cooperated with any investigation by the state or the political subdivision of the violation; and

(3) at the time the person furnished the state or the political subdivision with information about the violation, no criminal prosecution, civil action, or administrative action had been commenced under this chapter with respect to the violation and the person did not have actual knowledge of the existence of an investigation into the violation.

(c) A person violating this section is also liable to the state or the political subdivision for the costs of a civil action brought to recover any penalty or damages.

(d) A person is not liable under this section for mere negligence, inadvertence, or mistake with respect to activities involving a false or fraudulent claim.

Sec. 6.

Minnesota Statutes 2018, section 16A.055, subdivision 1a, is amended to read:

Subd. 1a.

Additional duties.

The commissioner may assist state agencies by providing analytical, statisticalnew text begin , program evaluation using experimental or quasi-experimental designnew text end , and organizational development services to state agencies in order to assist the agency to achieve the agency's mission and to operate efficiently and effectively. new text begin For purposes of this section, "experimental design" means a method of evaluating the impact of a service that uses random assignment to assign participants into groups that respectively receive the studied service and those that receive service as usual, so that any difference in outcomes found at the end of the evaluation can be attributed to the studied service; and "quasi-experimental design" means a method of evaluating the impact of a service that uses strategies other than random assignment to establish statistically similar groups that respectively receive the service and those that receive service as usual, so that any difference in outcomes found at the end of the evaluation can be attributed to the studied service.new text end

Sec. 7.

Minnesota Statutes 2018, section 119B.02, subdivision 6, is amended to read:

Subd. 6.

Data.

new text begin (a) new text end Data collected, maintained, used, or disseminated by the welfare system pertaining to persons selected as legal nonlicensed child care providers by families receiving child care assistance shall be treated as licensing data as provided in section 13.46, subdivision 4.

new text begin (b) For purposes of this paragraph, "child care assistance program payment data" means data for a specified time period showing (1) that a child care assistance program payment under this chapter was made, and (2) the amount of child care assistance payments made to a child care center. Child care assistance program payment data may include the number of families and children on whose behalf payments were made for the specified time period. Any child care assistance program payment data that may identify a specific child care assistance recipient or benefit paid on behalf of a specific child care assistance recipient, as determined by the commissioner, is private data on individuals as defined in section 13.02, subdivision 12. Data related to a child care assistance payment is public if the data relates to a child care assistance payment made to a licensed child care center or a child care center exempt from licensure and: new text end

new text begin (1) the child care center receives payment of more than $100,000 from the child care assistance program under this chapter in a period of one year or less; or new text end

new text begin (2) when the commissioner or county agency either: new text end

new text begin (i) disqualified the center from receipt of a payment from the child care assistance program under this chapter for wrongfully obtaining child care assistance under section 256.98, subdivision 8, paragraph (c); new text end

new text begin (ii) refused a child care authorization, revoked a child care authorization, stopped payment, or denied payment for a bill for the center under section 119B.13, subdivision 6, paragraph (d); or new text end

new text begin (iii) made a finding of financial misconduct under section 245E.02. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 8.

Minnesota Statutes 2018, section 119B.09, subdivision 7, is amended to read:

Subd. 7.

Date of eligibility for assistance.

(a) The date of eligibility for child care assistance under this chapter is the later of the date the application was received by the county; the beginning date of employment, education, or training; the date the infant is born for applicants to the at-home infant care program; or the date a determination has been made that the applicant is a participant in employment and training services under Minnesota Rules, part 3400.0080, or chapter 256J.

(b) Payment ceases for a family under the at-home infant child care program when a family has used a total of 12 months of assistance as specified under section 119B.035. Payment of child care assistance for employed persons on MFIP is effective the date of employment or the date of MFIP eligibility, whichever is later. Payment of child care assistance for MFIP or DWP participants in employment and training services is effective the date of commencement of the services or the date of MFIP or DWP eligibility, whichever is later. Payment of child care assistance for transition year child care must be made retroactive to the date of eligibility for transition year child care.

(c) Notwithstanding paragraph (b), payment of child care assistance for participants eligible under section 119B.05 may only be made retroactive for a maximum of deleted text begin sixdeleted text end new text begin threenew text end months from the date of application for child care assistance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019. new text end

Sec. 9.

Minnesota Statutes 2018, section 119B.125, subdivision 6, is amended to read:

Subd. 6.

Record-keeping requirement.

new text begin (a) As a condition of payment, new text end all providers receiving child care assistance payments mustnew text begin :new text end

new text begin (1)new text end keep new text begin accurate and legible new text end daily attendance records at the site where services are delivered for children receiving child care assistancenew text begin ;new text end and

deleted text begin mustdeleted text end new text begin (2) new text end make those records available immediately to the county or the commissioner upon request. new text begin Any records not provided to a county or the commissioner at the date and time of the request are deemed inadmissible if offered as evidence by the provider in any proceeding to contest an overpayment or disqualification of the provider.new text end

deleted text begin Thedeleted text end new text begin (b) As a condition of payment,new text end attendance records must be completed daily and include the date, the first and last name of each child in attendance, and the times when each child is dropped off and picked up. To the extent possible, the times that the child was dropped off to and picked up from the child care provider must be entered by the person dropping off or picking up the child. The daily attendance records must be retained at the site where services are delivered for six years after the date of service.

new text begin (c)new text end A county or the commissioner may deny new text begin or revoke a provider's new text end authorization deleted text begin as a child care provider to any applicant, rescind authorization of any provider,deleted text end new text begin to receive child care assistance payments under section 119B.13, subdivision 6, paragraph (d), pursue a fraud disqualification under section 256.98, take an action against the provider under chapter 245E,new text end or establish an new text begin attendance record new text end overpayment deleted text begin claim in the systemdeleted text end new text begin under paragraph (d)new text end against a current or former provider, when the county or the commissioner knows or has reason to believe that the provider has not complied with the record-keeping requirement in this subdivision. deleted text begin A provider's failure to produce attendance records as requested on more than one occasion constitutes grounds for disqualification as a provider.deleted text end

new text begin (d) To calculate an attendance record overpayment under this subdivision, the commissioner or county agency shall subtract the maximum daily rate from the total amount paid to a provider for each day that a child's attendance record is missing, unavailable, incomplete, inaccurate, or otherwise inadequate. new text end

new text begin (e) The commissioner shall develop criteria for a county to determine an attendance record overpayment under this subdivision. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019. new text end

Sec. 10.

Minnesota Statutes 2018, section 119B.13, subdivision 6, is amended to read:

Subd. 6.

Provider payments.

(a) new text begin A provider shall bill only for services documented according to section 119B.125, subdivision 6. new text end The provider shall bill for services provided within ten days of the end of the service period. Payments under the child care fund shall be made within 21 days of receiving a complete bill from the provider. Counties or the state may establish policies that make payments on a more frequent basis.

(b) If a provider has received an authorization of care and been issued a billing form for an eligible family, the bill must be submitted within 60 days of the last date of service on the bill. A bill submitted more than 60 days after the last date of service must be paid if the county determines that the provider has shown good cause why the bill was not submitted within 60 days. Good cause must be defined in the county's child care fund plan under section 119B.08, subdivision 3, and the definition of good cause must include county error. Any bill submitted more than a year after the last date of service on the bill must not be paid.

(c) If a provider provided care for a time period without receiving an authorization of care and a billing form for an eligible family, payment of child care assistance may only be made retroactively for a maximum of six months from the date the provider is issued an authorization of care and billing form.

(d) A county or the commissioner may refuse to issue a child care authorization to a licensed or legal nonlicensed provider, revoke an existing child care authorization to a licensed or legal nonlicensed provider, stop payment issued to a licensed or legal nonlicensed provider, or refuse to pay a bill submitted by a licensed or legal nonlicensed provider if:

(1) the provider admits to intentionally giving the county materially false information on the provider's billing forms;

(2) a county or the commissioner finds by a preponderance of the evidence that the provider intentionally gave the county materially false information on the provider's billing forms, or provided false attendance records to a county or the commissioner;

(3) the provider is in violation of child care assistance program rules, until the agency determines those violations have been corrected;

(4) the provider is operating after:

(i) an order of suspension of the provider's license issued by the commissioner;

(ii) an order of revocation of the provider's license; or

(iii) a final order of conditional license issued by the commissioner for as long as the conditional license is in effect;

(5) the provider submits false attendance reports or refuses to provide documentation of the child's attendance upon request; deleted text begin ordeleted text end

(6) the provider gives false child care price informationdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (7) the provider fails to report decreases in a child's attendance as required under section 119B.125, subdivision 9. new text end

(e) For purposes of paragraph (d), clauses (3), (5), deleted text begin anddeleted text end (6), new text begin and (7), new text end the county or the commissioner may withhold the provider's authorization or payment for a period of time not to exceed three months beyond the time the condition has been corrected.

(f) A county's payment policies must be included in the county's child care plan under section 119B.08, subdivision 3. If payments are made by the state, in addition to being in compliance with this subdivision, the payments must be made in compliance with section 16A.124.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019. new text end

Sec. 11.

Minnesota Statutes 2018, section 119B.13, subdivision 7, is amended to read:

Subd. 7.

Absent days.

(a) Licensed child care providers and license-exempt centers must not be reimbursed for more than 25 full-day absent days per child, excluding holidays, in a deleted text begin fiscaldeleted text end new text begin calendarnew text end year, or for more than ten consecutive full-day absent days. new text begin "Absent day" means any day that the child is authorized and scheduled to be in care with a licensed provider or license-exempt center, and the child is absent from the care for the entire day. new text end Legal nonlicensed family child care providers must not be reimbursed for absent days. If a child attends for part of the time authorized to be in care in a day, but is absent for part of the time authorized to be in care in that same day, the absent time must be reimbursed but the time must not count toward the absent days limit. Child care providers must only be reimbursed for absent days if the provider has a written policy for child absences and charges all other families in care for similar absences.

(b) Notwithstanding paragraph (a), children with documented medical conditions that cause more frequent absences may exceed the 25 absent days limit, or ten consecutive full-day absent days limit. Absences due to a documented medical condition of a parent or sibling who lives in the same residence as the child receiving child care assistance do not count against the absent days limit in a deleted text begin fiscaldeleted text end new text begin calendarnew text end year. Documentation of medical conditions must be on the forms and submitted according to the timelines established by the commissioner. A public health nurse or school nurse may verify the illness in lieu of a medical practitioner. If a provider sends a child home early due to a medical reason, including, but not limited to, fever or contagious illness, the child care center director or lead teacher may verify the illness in lieu of a medical practitioner.

(c) Notwithstanding paragraph (a), children in families may exceed the absent days limit if at least one parent: (1) is under the age of 21; (2) does not have a high school diploma or commissioner of education-selected high school equivalency certification; and (3) is a student in a school district or another similar program that provides or arranges for child care, parenting support, social services, career and employment supports, and academic support to achieve high school graduation, upon request of the program and approval of the county. If a child attends part of an authorized day, payment to the provider must be for the full amount of care authorized for that day.

(d) Child care providers must be reimbursed for up to ten federal or state holidays or designated holidays per year when the provider charges all families for these days and the holiday or designated holiday falls on a day when the child is authorized to be in attendance. Parents may substitute other cultural or religious holidays for the ten recognized state and federal holidays. Holidays do not count toward the absent days limit.

(e) A family or child care provider must not be assessed an overpayment for an absent day payment unless (1) there was an error in the amount of care authorized for the family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) the family or provider did not timely report a change as required under law.

(f) The provider and family shall receive notification of the number of absent days used upon initial provider authorization for a family and ongoing notification of the number of absent days used as of the date of the notification.

(g) For purposes of this subdivision, "absent days limit" means 25 full-day absent days per child, excluding holidays, in a deleted text begin fiscaldeleted text end new text begin calendarnew text end year; and ten consecutive full-day absent days.

new text begin (h) For purposes of this subdivision, "holidays limit" means ten full-day holidays per child, excluding absent days, in a calendar year. new text end

new text begin (i) If a day meets the criteria of an absent day or a holiday under this subdivision, the provider must bill that day as an absent day or holiday. A provider's failure to properly bill an absent day or a holiday results in an overpayment, regardless of whether the child reached, or is exempt from, the absent days limit or holidays limit for the calendar year. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019. new text end

Sec. 12.

Minnesota Statutes 2018, section 144.057, subdivision 3, is amended to read:

Subd. 3.

Reconsiderations.

The commissioner of health shall review and decide reconsideration requests, including the granting of variances, in accordance with the procedures and criteria contained in chapter 245C. new text begin The commissioner must set aside a disqualification for an individual who requests reconsideration and who meets the criteria described in section 245C.22, subdivision 4, paragraph (d). new text end The commissioner's decision shall be provided to the individual and to the Department of Human Services. The commissioner's decision to grant or deny a reconsideration of disqualification is the final administrative agency action, except for the provisions under sections 245C.25, 245C.27, and 245C.28, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 13.

Minnesota Statutes 2018, section 245.095, is amended to read:

245.095 LIMITS ON RECEIVING PUBLIC FUNDS.

Subdivision 1.

Prohibition.

new text begin (a) new text end If a provider, vendor, or individual enrolled, licensed, deleted text begin ordeleted text end receiving funds under a grant contractnew text begin , or registerednew text end in any program administered by the commissionernew text begin , including under the commissioner's powers and authorities in section 256.01,new text end is excluded from deleted text begin anydeleted text end new text begin thatnew text end program deleted text begin administered by the commissioner, including under the commissioner's powers and authorities in section 256.01deleted text end , the commissioner shallnew text begin :new text end

new text begin (1) new text end prohibit the excluded provider, vendor, or individual from enrolling deleted text begin ordeleted text end new text begin ,new text end becoming licensednew text begin , receiving grant funds, or registeringnew text end in any other program administered by the commissionerdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (2) disenroll, revoke or suspend a license, disqualify, or debar the excluded provider, vendor, or individual in any other program administered by the commissioner. new text end

new text begin (b)new text end The duration of this prohibitionnew text begin , disenrollment, revocation, suspension, disqualification, or debarmentnew text end must last for the longest applicable sanction or disqualifying period in effect for the provider, vendor, or individual permitted by state or federal law.

Subd. 2.

Definitions.

(a) For purposes of this section, the following definitions have the meanings given them.

(b) "Excluded" means disenrolled, deleted text begin subject to license revocation or suspension, disqualified, or subject to vendor debarmentdeleted text end new text begin disqualified, having a license that has been revoked or suspended under chapter 245A, or debarred or suspendednew text end under Minnesota Rules, part 1230.1150new text begin , or excluded pursuant to section 256B.064, subdivision 3new text end .

(c) "Individual" means a natural person providing products or services as a provider or vendor.

(d) "Provider" deleted text begin meansdeleted text end new text begin includes any entity or individual receiving payment from a program administered by the Department of Human Services, andnew text end an owner, controlling individual, license holder, director, or managerial officialnew text begin of an entity receiving payment from a program administered by the Department of Human Servicesnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 14.

Minnesota Statutes 2018, section 245A.02, subdivision 3, is amended to read:

Subd. 3.

Applicant.

"Applicant" means an individual, deleted text begin corporation, partnership, voluntary association, controlling individual, or otherdeleted text end organizationnew text begin , or government entity, as defined in section 13.02, subdivision 7a,new text end that deleted text begin has applied for licensure under this chapter and the rules of the commissionerdeleted text end new text begin is subject to licensure under this chapter and that has applied for but not yet been granted a license under this chapternew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 15.

Minnesota Statutes 2018, section 245A.02, is amended by adding a subdivision to read:

new text begin Subd. 3b. new text end

new text begin Authorized agent. new text end

new text begin "Authorized agent" means the controlling individual designated by the license holder responsible for communicating with the commissioner of human services on all matters related to this chapter and on whom service of all notices and orders must be made pursuant to section 245A.04, subdivision 1. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 16.

Minnesota Statutes 2018, section 245A.02, subdivision 8, is amended to read:

Subd. 8.

License.

"License" means a certificate issued by the commissioner new text begin under section 245A.04 new text end authorizing the license holder to provide a specified program for a specified period of time and in accordance with the terms of the license and the rules of the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 17.

Minnesota Statutes 2018, section 245A.02, subdivision 9, is amended to read:

Subd. 9.

License holder.

"License holder" means an individual, deleted text begin corporation, partnership, voluntary association, or otherdeleted text end organizationnew text begin , or government entitynew text end that is legally responsible for the operation of the programnew text begin or servicenew text end , new text begin and new text end has been granted a license by the commissioner under this chapter deleted text begin or chapter 245Ddeleted text end and the rules of the commissionerdeleted text begin , and is a controlling individualdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 18.

Minnesota Statutes 2018, section 245A.02, is amended by adding a subdivision to read:

new text begin Subd. 10c. new text end

new text begin Organization. new text end

new text begin "Organization" means a domestic or foreign corporation, nonprofit corporation, limited liability company, partnership, limited partnership, limited liability partnership, association, voluntary association, and any other legal or commercial entity. For purposes of this chapter, organization does not include a government entity. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019. new text end

Sec. 19.

Minnesota Statutes 2018, section 245A.02, subdivision 12, is amended to read:

Subd. 12.

Private agency.

"Private agency" means an deleted text begin individual, corporation, partnership, voluntary association or otherdeleted text end organization, other than a county agency, or a court with jurisdiction, that places persons who cannot remain in their own homes in residential programs, foster care, or adoptive homes.new text begin A private agency is designated to perform the commissioner's licensing functions under section 245A.16.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019. new text end

Sec. 20.

Minnesota Statutes 2018, section 245A.02, subdivision 14, is amended to read:

Subd. 14.

Residential program.

new text begin (a) Except as provided in paragraph (b), new text end "residential program" means a program that provides 24-hour-a-day care, supervision, food, lodging, rehabilitation, training, education, habilitation, or treatment outside a person's own home, including a program in an intermediate care facility for four or more persons with developmental disabilities; and chemical dependency or chemical abuse programs that are located in a hospital or nursing home and receive public funds for providing chemical abuse or chemical dependency treatment services under chapter 254B. deleted text begin Residential programs include home and community-based services for persons with disabilities or persons age 65 and older that are provided in or outside of a person's own home under chapter 245D.deleted text end

new text begin (b) For a residential program under chapter 245D, "residential program" means a single or multifamily dwelling that is under the control, either directly or indirectly, of the service provider licensed under chapter 245D and in which at least one person receives services under chapter 245D, including residential supports and services under section 245D.03, subdivision 1, paragraph (c), clause (3); out-of-home crisis respite services under section 245D.03, subdivision 1, paragraph (c), clause (1), item (ii); and out-of-home respite services under section 245D.03, subdivision 1, paragraph (b), clause (1). A residential program does not include out-of-home respite services when a case manager has determined that an unlicensed site meets the assessed needs of the person. A residential program also does not include multifamily dwellings where persons receive integrated community supports, even if authorization to provide these supports is granted under chapter 245D and approved in the federal waiver. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 21.

Minnesota Statutes 2018, section 245A.02, subdivision 18, is amended to read:

Subd. 18.

Supervision.

new text begin (a) new text end For purposes ofnew text begin licensednew text end child care centers, "supervision" means when a program staff personnew text begin :new text end

new text begin (1)new text end is deleted text begin within sight and hearing of a child at all times so that the program staffdeleted text end new text begin accountable for the child's care;new text end

new text begin (2)new text end can intervene to protect the health and safety of the childdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (3) is within sight and hearing of the child at all times except as described in paragraphs (b) to (d). new text end

new text begin (b)new text end When an infant is placed in a crib room to sleep, supervision occurs when anew text begin programnew text end 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 deleted text begin componentdeleted text end new text begin componentsnew text end .

new text begin (c) When a single school-age child uses the restroom within the licensed space, supervision occurs when a program staff person has knowledge of the child's activity and location and checks on the child at least every five minutes. When a school-age child uses the restroom outside the licensed space, including but not limited to field trips, supervision occurs when staff accompany children to the restroom. new text end

new text begin (d) When a school-age child leaves the classroom but remains within the licensed space to deliver or retrieve items from the child's personal storage space, supervision occurs when a program staff person has knowledge of the child's activity and location and checks on the child at least every five minutes. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 22.

Minnesota Statutes 2018, section 245A.03, subdivision 1, is amended to read:

Subdivision 1.

License required.

Unless licensed by the commissionernew text begin under this chapternew text end , an individual, deleted text begin corporation, partnership, voluntary association, otherdeleted text end organization, or deleted text begin controlling individualdeleted text end new text begin government entitynew text end must not:

(1) operate a residential or a nonresidential program;

(2) receive a child or adult for care, supervision, or placement in foster care or adoption;

(3) help plan the placement of a child or adult in foster care or adoption or engage in placement activities as defined in section 259.21, subdivision 9, in this state, whether or not the adoption occurs in this state; or

(4) advertise a residential or nonresidential program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 23.

Minnesota Statutes 2018, section 245A.03, subdivision 3, is amended to read:

Subd. 3.

Unlicensed programs.

(a) It is a misdemeanor for an individual, deleted text begin corporation, partnership, voluntary association, otherdeleted text end organization, or deleted text begin a controlling individualdeleted text end new text begin government entitynew text end to provide a residential or nonresidential program without a license new text begin issued under this chapter new text end and in willful disregard of this chapter unless the program is excluded from licensure under subdivision 2.

(b) The commissioner may ask the appropriate county attorney or the attorney general to begin proceedings to secure a court order against the continued operation of the program, if an individual, deleted text begin corporation, partnership, voluntary association, otherdeleted text end organization, or deleted text begin controlling individualdeleted text end new text begin government entitynew text end has:

(1) failed to apply for a license new text begin under this chapter new text end after receiving notice that a license is required or continues to operate without a license after receiving notice that a license is required;

(2) continued to operate without a license after deleted text begin thedeleted text end new text begin anew text end license new text begin issued under this chapter new text end has been revoked or suspended under deleted text begin section 245A.07deleted text end new text begin this chapternew text end , and the commissioner has issued a final order affirming the revocation or suspension, or the license holder did not timely appeal the sanction; or

(3) continued to operate without a license after deleted text begin thedeleted text end new text begin a temporary immediate suspension of anew text end license has been deleted text begin temporarily suspended under section 245A.07deleted text end new text begin issued under this chapternew text end .

new text begin (c) new text end The county attorney and the attorney general have a duty to cooperate with the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 24.

Minnesota Statutes 2018, section 245A.04, subdivision 1, is amended to read:

Subdivision 1.

Application for licensure.

(a) An individual, deleted text begin corporation, partnership, voluntary association, otherdeleted text end organization deleted text begin or controlling individualdeleted text end new text begin , or government entitynew text end that is subject to licensure under section 245A.03 must apply for a license. The application must be made on the forms and in the manner prescribed by the commissioner. The commissioner shall provide the applicant with instruction in completing the application and provide information about the rules and requirements of other state agencies that affect the applicant. An applicant seeking licensure in Minnesota with headquarters outside of Minnesota must have a program office located within new text begin 30 miles of new text end the deleted text begin statedeleted text end new text begin Minnesota bordernew text end .new text begin An applicant who intends to buy or otherwise acquire a program or services licensed under this chapter that is owned by another license holder must apply for a license under this chapter and comply with the application procedures in this section and section 245A.03.new text end

The commissioner shall act on the application within 90 working days after a complete application and any required reports have been received from other state agencies or departments, counties, municipalities, or other political subdivisions. The commissioner shall not consider an application to be complete until the commissioner receives all of the deleted text begin informationdeleted text end required deleted text begin under section 245C.05deleted text end new text begin informationnew text end .

When the commissioner receives an application for initial licensure that is incomplete because the applicant failed to submit required documents or that is substantially deficient because the documents submitted do not meet licensing requirements, the commissioner shall provide the applicant written notice that the application is incomplete or substantially deficient. In the written notice to the applicant the commissioner shall identify documents that are missing or deficient and give the applicant 45 days to resubmit a second application that is substantially complete. An applicant's failure to submit a substantially complete application after receiving notice from the commissioner is a basis for license denial under section 245A.05.

(b) An application for licensure must identify all controlling individuals new text begin as defined in section 245A.02, subdivision 5a, new text end and must deleted text begin specify andeleted text end new text begin designate one individual to be the authorizednew text end agent deleted text begin who is responsible for dealing with the commissioner of human services on all matters provided for in this chapter and on whom service of all notices and orders must be madedeleted text end . new text begin The application must be signed by the authorized agent and must include the authorized agent's first, middle, and last name; mailing address; and e-mail address. By submitting an application for licensure, the authorized agent consents to electronic communication with the commissioner throughout the application process. new text end The new text begin authorized new text end agent must be authorized to accept service on behalf of all of the controlling individuals deleted text begin of the programdeleted text end .new text begin A government entity that holds multiple licenses under this chapter may designate one authorized agent for all licenses issued under this chapter or may designate a different authorized agent for each license.new text end Service on the new text begin authorized new text end agent is service on all of the controlling individuals deleted text begin of the programdeleted text end . It is not a defense to any action arising under this chapter that service was not made on each controlling individual deleted text begin of the programdeleted text end . The designation of deleted text begin one or moredeleted text end new text begin anew text end controlling deleted text begin individualsdeleted text end new text begin individualnew text end as deleted text begin agentsdeleted text end new text begin the authorized agentnew text end under this paragraph does not affect the legal responsibility of any other controlling individual under this chapter.

(c) An applicant or license holder must have a policy that prohibits license holders, employees, subcontractors, and volunteers, when directly responsible for persons served by the program, from abusing prescription medication or being in any manner under the influence of a chemical that impairs the individual's ability to provide services or care. The license holder must train employees, subcontractors, and volunteers about the program's drug and alcohol policy.

(d) An applicant and license holder must have a program grievance procedure that permits persons served by the program and their authorized representatives to bring a grievance to the highest level of authority in the program.

(e) deleted text begin The applicant must be able to demonstrate competent knowledge of the applicable requirements of this chapter and chapter 245C, and the requirements of other licensing statutes and rules applicable to the program or services for which the applicant is seeking to be licensed. Effective January 1, 2013,deleted text end new text begin The commissioner may limit communication during the application process to the authorized agent or the controlling individuals identified on the license application and for whom a background study was initiated under chapter 245C.new text end The commissioner may require the applicant, except for child foster care, to demonstrate competence in the applicable licensing requirements by successfully completing a written examination. The commissioner may develop a prescribed written examination format.

(f) When an applicant is an individual, the deleted text begin individualdeleted text end new text begin applicantnew text end must provide:

(1) the applicant's taxpayer identification numbers including the Social Security numbernew text begin or Minnesota tax identification numbernew text end , and federal employer identification number if the applicant has employees;

(2) new text begin at the request of the commissioner, a copy of the most recent filing with the secretary of state that includes new text end the complete business name, if anydeleted text begin , anddeleted text end new text begin ;new text end

new text begin (3) new text end if doing business under a different name, the doing business as (DBA) name, as registered with the secretary of state; deleted text begin anddeleted text end

deleted text begin (3) a notarized signature of the applicant. deleted text end new text begin (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique Minnesota Provider Identifier (UMPI) number; and new text end

new text begin (5) at the request of the commissioner, the notarized signature of the applicant or authorized agent. new text end

(g) When an applicant is deleted text begin a nonindividualdeleted text end new text begin an organizationnew text end , the applicant must provide deleted text begin thedeleted text end :

(1) new text begin the new text end applicant's taxpayer identification numbers including the Minnesota tax identification number and federal employer identification number;

(2) new text begin at the request of the commissioner, a copy of the most recent filing with the secretary of state that includes the new text end complete business name, and if doing business under a different name, the doing business as (DBA) name, as registered with the secretary of state;

(3) new text begin the new text end first, middle, and last name, and address for all individuals who will be controlling individuals, including all officers, owners, and managerial officials as defined in section 245A.02, subdivision 5a, and the date that the background study was initiated by the applicant for each controlling individual; deleted text begin anddeleted text end

deleted text begin (4) first, middle, and last name, mailing address, and notarized signature of the agent authorized by the applicant to accept service on behalf of the controlling individuals. deleted text end

new text begin (4) if applicable, the applicant's NPI number and UMPI number; new text end

new text begin (5) the documents that created the organization and that determine the organization's internal governance and the relations among the persons that own the organization, have an interest in the organization, or are members of the organization, in each case as provided or authorized by the organization's governing statute, which may include a partnership agreement, bylaws, articles of organization, organizational chart, and operating agreement, or comparable documents as provided in the organization's governing statute; and new text end

new text begin (6) the notarized signature of the applicant or authorized agent. new text end

new text begin (h) When the applicant is a government entity, the applicant must provide: new text end

new text begin (1) the name of the government agency, political subdivision, or other unit of government seeking the license and the name of the program or services that will be licensed; new text end

new text begin (2) the applicant's taxpayer identification numbers including the Minnesota tax identification number and federal employer identification number; new text end

new text begin (3) a letter signed by the manager, administrator, or other executive of the government entity authorizing the submission of the license application; and new text end

new text begin (4) if applicable, the applicant's NPI number and UMPI number. new text end

deleted text begin (h)deleted text end new text begin (i)new text end At the time of application for licensure or renewal of a licensenew text begin under this chapternew text end , the applicant or license holder must acknowledge on the form provided by the commissioner if the applicant or license holder elects to receive any public funding reimbursement from the commissioner for services provided under the license that:

(1) the applicant's or license holder's compliance with the provider enrollment agreement or registration requirements for receipt of public funding may be monitored by the commissioner as part of a licensing investigation or licensing inspection; and

(2) noncompliance with the provider enrollment agreement or registration requirements for receipt of public funding that is identified through a licensing investigation or licensing inspection, or noncompliance with a licensing requirement that is a basis of enrollment for reimbursement for a service, may result in:

(i) a correction order or a conditional license under section 245A.06, or sanctions under section 245A.07;

(ii) nonpayment of claims submitted by the license holder for public program reimbursement;

(iii) recovery of payments made for the service;

(iv) disenrollment in the public payment program; or

(v) other administrative, civil, or criminal penalties as provided by law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 25.

Minnesota Statutes 2018, section 245A.04, subdivision 2, is amended to read:

Subd. 2.

Notification of affected municipality.

The commissioner must not issue a license new text begin under this chapter new text end without giving 30 calendar days' written notice to the affected municipality or other political subdivision unless the program is considered a permitted single-family residential use under sections 245A.11 and 245A.14. new text begin The commissioner may provide notice through electronic communication. new text end The notification must be given before the first issuance of a license new text begin under this chapter new text end and annually after that time if annual notification is requested in writing by the affected municipality or other political subdivision. State funds must not be made available to or be spent by an agency or department of state, county, or municipal government for payment to a residential or nonresidential program licensed under this chapter until the provisions of this subdivision have been complied with in full. The provisions of this subdivision shall not apply to programs located in hospitals.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 26.

Minnesota Statutes 2018, section 245A.04, subdivision 4, is amended to read:

Subd. 4.

Inspections; waiver.

(a) Before issuing deleted text begin an initialdeleted text end new text begin anew text end licensenew text begin under this chapternew text end , 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;

deleted text begin (3) an evaluation of the program by consumers of the program; deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end observation of the program in operation; and

deleted text begin (5)deleted text end new text begin (4)new text end an inspection for the health, safety, and fire standards in licensing requirements for a child care license holder.

deleted text begin 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. deleted text end

(b) The deleted text begin evaluation required in paragraph (a), clause (3), or thedeleted text end observation in paragraph (a), clause deleted text begin (4)deleted text end new text begin (3)new text end , is not required prior to issuing deleted text begin an initialdeleted text end new text begin anew text end license under subdivision 7. If the commissioner issues deleted text begin an initialdeleted text end new text begin anew text end license under deleted text begin subdivision 7deleted text end new text begin this chapternew text end , these requirements must be completed within one year after the issuance of deleted text begin an initialdeleted text end new text begin thenew text end license.

(c) Before completing a licensing inspection in a family child care program or child care center, the licensing agency must offer the license holder an exit interview to discuss violations new text begin or potential violations new text end of law or rule observed during the inspection and offer technical assistance on how to comply with applicable laws and rules. deleted text begin Nothing in this paragraph limits the ability of the commissioner to issue a correction order or negative action for violations of law or rule not discussed in an exit interview or in the event that a license holder chooses not to participate in an exit interview.deleted text end new text begin The commissioner shall not issue a correction order or negative licensing action for violations of law or rule not discussed in an exit interview, unless a license holder chooses not to participate in an exit interview or not to complete the exit interview. If the license holder is unable to complete the exit interview, the licensing agency must offer an alternate time for the license holder to complete the exit interview.new text end

new text begin (d) If a family child care license holder disputes a county licensor's interpretation of a licensing requirement during a licensing inspection or exit interview, the license holder may, within five business days after the exit interview or licensing inspection, request clarification from the commissioner, in writing, in a manner prescribed by the commissioner. The license holder's request must describe the county licensor's interpretation of the licensing requirement at issue, and explain why the license holder believes the county licensor's interpretation is inaccurate. The commissioner and the county must include the license holder in all correspondence regarding the disputed interpretation, and must provide an opportunity for the license holder to contribute relevant information that may impact the commissioner's decision. The county licensor must not issue a correction order related to the disputed licensing requirement until the commissioner has provided clarification to the license holder about the licensing requirement. new text end

deleted text begin (d)deleted text end new text begin (e)new text end The commissioner or the county shall inspect at least annually a child care provider licensed under this chapter and Minnesota Rules, chapter 9502 or 9503, for compliance with applicable licensing standards.

deleted text begin (e)deleted text end new text begin (f)new text end No later than November 19, 2017, the commissioner shall make publicly available on the department's website the results of inspection reports of all child care providers licensed under this chapter and under Minnesota Rules, chapter 9502 or 9503, and the number of deaths, serious injuries, and instances of substantiated child maltreatment that occurred in licensed child care settings each year.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments to paragraphs (a) and (b) are effective January 1, 2020. The amendments to paragraphs (c) to (f) are effective September 30, 2019. new text end

Sec. 27.

Minnesota Statutes 2018, section 245A.04, subdivision 6, is amended to read:

Subd. 6.

Commissioner's evaluation.

new text begin (a) new text end Before issuing, denying, suspending, revoking, or making conditional a license, the commissioner shall evaluate information gathered under this section. The commissioner's evaluation shall consider new text begin the applicable requirements of statutes and rules for the program or services for which the applicant seeks a license, including the disqualification standards set forth in chapter 245C, and shall evaluate new text end facts, conditions, or circumstances concerningnew text begin :new text end

new text begin (1) new text end the program's operationdeleted text begin ,deleted text end new text begin ;new text end

new text begin (2) new text end the well-being of persons served by the programdeleted text begin ,deleted text end new text begin ;new text end

new text begin (3) new text end available deleted text begin consumerdeleted text end evaluations of the programdeleted text begin , anddeleted text end new text begin by persons receiving services;new text end

new text begin (4) new text end information about the qualifications of the personnel employed by the applicant or license holderdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (5) the applicant's or license holder's ability to demonstrate competent knowledge of the applicable requirements of statutes and rules, including this chapter and chapter 245C, for which the applicant seeks a license or the license holder is licensed. new text end

new text begin (b) new text end The commissioner shall new text begin also new text end 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 chapter 245C.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 28.

Minnesota Statutes 2018, section 245A.04, subdivision 7, is amended to read:

Subd. 7.

Grant of license; license extension.

(a) If the commissioner determines that the program complies with all applicable rules and laws, the commissioner shall issue a licensenew text begin consistent with this section or, if applicable, a temporary change of ownership license under section 245A.043new text end . 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 deleted text begin an initialdeleted text end new text begin anew text end license for a period not to exceed two years if:

(1) the commissioner is unable to conduct the evaluation or observation required by subdivision 4, paragraph (a), deleted text begin clauses (3) anddeleted text end new text begin clausenew text end (4), because the program is not yet operational;

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

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

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

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

deleted text begin (e)deleted text end new text begin (d)new text end Except as provided in paragraphs deleted text begin (g)deleted text end new text begin (f)new text end and deleted text begin (h)deleted text end new text begin (g)new text end , the commissioner shall not issue or reissue a license if the applicant, license holder, or controlling individual has:

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

(2) been denied a license new text begin under this chapter, new text end within the past two years;

(3) had a license new text begin issued under this chapter new text end revoked within the past five years;

(4) an outstanding debt related to a license fee, licensing fine, or settlement agreement for which payment is delinquent; or

(5) failed to submit the information required of an applicant under subdivision 1, paragraph (f) or (g), after being requested by the commissioner.

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

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

deleted text begin (g)deleted text end new text begin (f)new text end Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license new text begin issued under this chapter new text end has been suspended or revoked and the suspension or revocation is under appeal, the program may continue to operate pending a final order from the commissioner. If the license under suspension or revocation will expire before a final order is issued, a temporary provisional license may be issued provided any applicable license fee is paid before the temporary provisional license is issued.

deleted text begin (h)deleted text end new text begin (g)new text end Notwithstanding paragraph deleted text begin (g)deleted text end new text begin (f)new text end , when a revocation is based on the disqualification of a controlling individual or license holder, and the controlling individual or license holder is ordered under section 245C.17 to be immediately removed from direct contact with persons receiving services or is ordered to be under continuous, direct supervision when providing direct contact services, the program may continue to operate only if the program complies with the order and submits documentation demonstrating compliance with the order. If the disqualified individual fails to submit a timely request for reconsideration, or if the disqualification is not set aside and no variance is granted, the order to immediately remove the individual from direct contact or to be under continuous, direct supervision remains in effect pending the outcome of a hearing and final order from the commissioner.

deleted text begin (i)deleted text end new text begin (h)new text end 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.

deleted text begin (j)deleted text end new text begin (i)new text end Unless otherwise specified by statute, all licenses new text begin issued under this chapter new text end 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.

deleted text begin (k)deleted text end new text begin (j)new text end The commissioner shall not issue or reissue a license new text begin under this chapter new text end if it has been determined that a tribal licensing authority has established jurisdiction to license the program or service.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 29.

Minnesota Statutes 2018, section 245A.04, is amended by adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Notification required. new text end

new text begin (a) A license holder must notify the commissioner, in a manner prescribed by the commissioner, and obtain the commissioner's approval before making any change that would alter the license information listed under subdivision 7, paragraph (a). new text end

new text begin (b) A license holder must also notify the commissioner, in a manner prescribed by the commissioner, before making any change: new text end

new text begin (1) to the license holder's authorized agent as defined in section 245A.02, subdivision 3b; new text end

new text begin (2) to the license holder's controlling individual as defined in section 245A.02, subdivision 5a; new text end

new text begin (3) to the license holder information on file with the secretary of state; new text end

new text begin (4) in the location of the program or service licensed under this chapter; and new text end

new text begin (5) to the federal or state tax identification number associated with the license holder. new text end

new text begin (c) When, for reasons beyond the license holder's control, a license holder cannot provide the commissioner with prior notice of the changes in paragraph (b), clauses (1) to (3), the license holder must notify the commissioner by the tenth business day after the change and must provide any additional information requested by the commissioner. new text end

new text begin (d) When a license holder notifies the commissioner of a change to the license holder information on file with the secretary of state, the license holder must provide amended articles of incorporation and other documentation of the change. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 30.

Minnesota Statutes 2018, section 245A.04, is amended by adding a subdivision to read:

new text begin Subd. 9a. new text end

new text begin Child foster home variances for capacity. new text end

new text begin (a) The commissioner, or the commissioner of corrections under section 241.021, may grant a variance for a licensed family foster parent to allow additional foster children if: new text end

new text begin (1) the variance is needed to allow: (i) a parenting youth in foster care to remain with the child of the parenting youth; (ii) siblings to remain together; (iii) a child with an established meaningful relationship with the family to remain with the family; or (iv) a family with special training or skills to provide care to a child who has a severe disability; new text end

new text begin (2) there is no risk of harm to a child currently in the home; new text end

new text begin (3) the structural characteristics of the home, including sleeping space, accommodates additional foster children; new text end

new text begin (4) the home remains in compliance with applicable zoning, health, fire, and building codes; and new text end

new text begin (5) the statement of intended use specifies conditions for an exception to capacity limits and specifies how the license holder will maintain a ratio of adults to children that ensures the safety and appropriate supervision of all the children in the home. new text end

new text begin (b) A variance granted to a family foster home under Minnesota Rules, part 2960.3030, subpart 3, prior to October 1, 2019, remains in effect until January 1, 2020. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2019. new text end

Sec. 31.

Minnesota Statutes 2018, section 245A.04, subdivision 10, is amended to read:

Subd. 10.

Adoption agency; additional requirements.

In addition to the other requirements of this section, an individualdeleted text begin , corporation, partnership, voluntary association, otherdeleted text end new text begin ornew text end organizationdeleted text begin , or controlling individualdeleted text end applying for a license to place children for adoption must:

(1) incorporate as a nonprofit corporation under chapter 317A;

(2) file with the application for licensure a copy of the disclosure form required under section 259.37, subdivision 2;

(3) provide evidence that a bond has been obtained and will be continuously maintained throughout the entire operating period of the agency, to cover the cost of transfer of records to and storage of records by the agency which has agreed, according to rule established by the commissioner, to receive the applicant agency's records if the applicant agency voluntarily or involuntarily ceases operation and fails to provide for proper transfer of the records. The bond must be made in favor of the agency which has agreed to receive the records; and

(4) submit a certified audit to the commissioner each year the license is renewed as required under section 245A.03, subdivision 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 32.

Minnesota Statutes 2018, section 245A.04, is amended by adding a subdivision to read:

new text begin Subd. 18. new text end

new text begin Plain-language handbook. new text end

new text begin By January 1, 2020, the commissioner of human services shall, following consultation with family child care license holders, parents, and county agencies, develop a plain-language handbook that describes the process and requirements to become a licensed family child care provider. The handbook shall include a list of the applicable statutory provisions and rules that apply to licensed family child care providers. The commissioner shall electronically publish the handbook on the Department of Human Services website, available at no charge to the public. Each county human services office and the Department of Human Services shall maintain physical copies of the handbook for public use. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 33.

new text begin [245A.043] LICENSE APPLICATION AFTER CHANGE OF OWNERSHIP. new text end

new text begin Subdivision 1. new text end

new text begin Transfer prohibited. new text end

new text begin A license issued under this chapter is only valid for a premises and individual, organization, or government entity identified by the commissioner on the license. A license is not transferable or assignable. new text end

new text begin Subd. 2. new text end

new text begin Change in ownership. new text end

new text begin (a) If the commissioner determines that there is a change in ownership, the commissioner shall require submission of a new license application. This subdivision does not apply to a licensed program or service located in a home where the license holder resides. A change in ownership occurs when: new text end

new text begin (1) the license holder sells or transfers 100 percent of the property, stock, or assets; new text end

new text begin (2) the license holder merges with another organization; new text end

new text begin (3) the license holder consolidates with two or more organizations, resulting in the creation of a new organization; new text end

new text begin (4) there is a change to the federal tax identification number associated with the license holder; or new text end

new text begin (5) all controlling individuals associated with the original application have changed. new text end

new text begin (b) Notwithstanding paragraph (a), clauses (1) and (5), no change in ownership has occurred if at least one controlling individual has been listed as a controlling individual for the license for at least the previous 12 months. new text end

new text begin Subd. 3. new text end

new text begin Change of ownership process. new text end

new text begin (a) When a change in ownership is proposed and the party intends to assume operation without an interruption in service longer than 60 days after acquiring the program or service, the license holder must provide the commissioner with written notice of the proposed change on a form provided by the commissioner at least 60 days before the anticipated date of the change in ownership. For purposes of this subdivision and subdivision 4, "party" means the party that intends to operate the service or program. new text end

new text begin (b) The party must submit a license application under this chapter on the form and in the manner prescribed by the commissioner at least 30 days before the change in ownership is complete, and must include documentation to support the upcoming change. The party must comply with background study requirements under chapter 245C and shall pay the application fee required under section 245A.10. A party that intends to assume operation without an interruption in service longer than 60 days after acquiring the program or service is exempt from the requirements of Minnesota Rules, part 9530.6800. new text end

new text begin (c) The commissioner may streamline application procedures when the party is an existing license holder under this chapter and is acquiring a program licensed under this chapter or service in the same service class as one or more licensed programs or services the party operates and those licenses are in substantial compliance. For purposes of this subdivision, "substantial compliance" means within the previous 12 months the commissioner did not (1) issue a sanction under section 245A.07 against a license held by the party, or (2) make a license held by the party conditional according to section 245A.06. new text end

new text begin (d) Except when a temporary change in ownership license is issued pursuant to subdivision 4, the existing license holder is solely responsible for operating the program according to applicable laws and rules until a license under this chapter is issued to the party. new text end

new text begin (e) If a licensing inspection of the program or service was conducted within the previous 12 months and the existing license holder's license record demonstrates substantial compliance with the applicable licensing requirements, the commissioner may waive the party's inspection required by section 245A.04, subdivision 4. The party must submit to the commissioner (1) proof that the premises was inspected by a fire marshal or that the fire marshal deemed that an inspection was not warranted, and (2) proof that the premises was inspected for compliance with the building code or that no inspection was deemed warranted. new text end

new text begin (f) If the party is seeking a license for a program or service that has an outstanding action under section 245A.06 or 245A.07, the party must submit a letter as part of the application process identifying how the party has or will come into full compliance with the licensing requirements. new text end

new text begin (g) The commissioner shall evaluate the party's application according to section 245A.04, subdivision 6. If the commissioner determines that the party has remedied or demonstrates the ability to remedy the outstanding actions under section 245A.06 or 245A.07 and has determined that the program otherwise complies with all applicable laws and rules, the commissioner shall issue a license or conditional license under this chapter. The conditional license remains in effect until the commissioner determines that the grounds for the action are corrected or no longer exist. new text end

new text begin (h) The commissioner may deny an application as provided in section 245A.05. An applicant whose application was denied by the commissioner may appeal the denial according to section 245A.05. new text end

new text begin (i) This subdivision does not apply to a licensed program or service located in a home where the license holder resides. new text end

new text begin Subd. 4. new text end

new text begin Temporary change in ownership license. new text end

new text begin (a) After receiving the party's application pursuant to subdivision 3, upon the written request of the existing license holder and the party, the commissioner may issue a temporary change in ownership license to the party while the commissioner evaluates the party's application. Until a decision is made to grant or deny a license under this chapter, the existing license holder and the party shall both be responsible for operating the program or service according to applicable laws and rules, and the sale or transfer of the existing license holder's ownership interest in the licensed program or service does not terminate the existing license. new text end

new text begin (b) The commissioner may issue a temporary change in ownership license when a license holder's death, divorce, or other event affects the ownership of the program and an applicant seeks to assume operation of the program or service to ensure continuity of the program or service while a license application is evaluated. new text end

new text begin (c) This subdivision applies to any program or service licensed under this chapter. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 34.

Minnesota Statutes 2018, section 245A.05, is amended to read:

245A.05 DENIAL OF APPLICATION.

(a) The commissioner may deny a license if an applicant or controlling individual:

(1) fails to submit a substantially complete application after receiving notice from the commissioner under section 245A.04, subdivision 1;

(2) fails to comply with applicable laws or rules;

(3) 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;

(4) has a disqualification that has not been set aside under section 245C.22 and no variance has been granted;

(5) has an individual living in the household who received a background study under section 245C.03, subdivision 1, paragraph (a), clause (2), who has a disqualification that has not been set aside under section 245C.22, and no variance has been granted;

(6) is associated with an individual who received a background study under section 245C.03, subdivision 1, paragraph (a), clause (6), who may have unsupervised access to children or vulnerable adults, and who has a disqualification that has not been set aside under section 245C.22, and no variance has been granted; deleted text begin ordeleted text end

(7) fails to comply with section 245A.04, subdivision 1, paragraph (f) or (g)deleted text begin .deleted text end new text begin ;new text end

new text begin (8) fails to demonstrate competent knowledge as required by section 245A.04, subdivision 6; new text end

new text begin (9) has a history of noncompliance as a license holder or controlling individual with applicable laws or rules, including but not limited to this chapter and chapters 119B and 245C; or new text end

new text begin (10) is prohibited from holding a license according to section 245.095. new text end

(b) An applicant whose application has been denied by the commissioner must be given notice of the denial, which must state the reasons for the denial in plain language. Notice must be given by certified mail or personal service. The notice must state the reasons the application was denied and must inform the applicant of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The applicant may appeal the denial by notifying the commissioner in writing by certified mail or personal service. If mailed, the appeal must be postmarked and sent to the commissioner within 20 calendar days after the applicant received the notice of denial. If an appeal request is made by personal service, it must be received by the commissioner within 20 calendar days after the applicant received the notice of denial. Section 245A.08 applies to hearings held to appeal the commissioner's denial of an application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 35.

new text begin [245A.055] CLOSING A LICENSE. new text end

new text begin Subdivision 1. new text end

new text begin Inactive programs. new text end

new text begin The commissioner may close a license if the commissioner determines that a licensed program has not been serving any client for a consecutive period of 12 months or longer. The license holder is not prohibited from reapplying for a license if the license holder's license was closed under this chapter. new text end

new text begin Subd. 2. new text end

new text begin Reconsideration of closure. new text end

new text begin If a license is closed, the commissioner must notify the license holder of closure by certified mail or personal service. If mailed, the notice of closure must be mailed to the last known address of the license holder and must inform the license holder why the license was closed and that the license holder has the right to request reconsideration of the closure. If the license holder believes that the license was closed in error, the license holder may ask the commissioner to reconsider the closure. The license holder's request for reconsideration must be made in writing and must include documentation that the licensed program has served a client in the previous 12 months. The request for reconsideration must be postmarked and sent to the commissioner within 20 calendar days after the license holder receives the notice of closure. A timely request for reconsideration stays imposition of the license closure until the commissioner issues a decision on the request for reconsideration. new text end

new text begin Subd. 3. new text end

new text begin Reconsideration final. new text end

new text begin The commissioner's disposition of a request for reconsideration is final and not subject to appeal under chapter 14. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 36.

Minnesota Statutes 2018, section 245A.07, subdivision 1, is amended to read:

Subdivision 1.

Sanctions; appeals; license.

(a) In addition to making a license conditional under section 245A.06, the commissioner may suspend or revoke the license, impose a fine, or secure an injunction against the continuing operation of the program of a license holder who does not comply with applicable law or rule. When applying sanctions authorized under this section, the commissioner shall consider the nature, chronicity, or severity of the violation of law or rule and the effect of the violation on the health, safety, or rights of persons served by the program.

(b) If a license holder appeals the suspension or revocation of a license and the license holder continues to operate the program pending a final order on the appeal, the commissioner shall issue the license holder a temporary provisional license. Unless otherwise specified by the commissioner, variances in effect on the date of the license sanction under appeal continue under the temporary provisional license. If a license holder fails to comply with applicable law or rule while operating under a temporary provisional license, the commissioner may impose additional sanctions under this section and section 245A.06, and may terminate any prior variance. If a temporary provisional license is set to expire, a new temporary provisional license shall be issued to the license holder upon payment of any fee required under section 245A.10. The temporary provisional license shall expire on the date the final order is issued. If the license holder prevails on the appeal, a new nonprovisional license shall be issued for the remainder of the current license period.

(c) If a license holder is under investigation and the license new text begin issued under this chapter new text end is due to expire before completion of the investigation, the program shall be issued a new license upon completion of the reapplication requirements and payment of any applicable license fee. Upon completion of the investigation, a licensing sanction may be imposed against the new license under this section, section 245A.06, or 245A.08.

(d) Failure to reapply or closure of a license new text begin issued under this chapter new text end by the license holder prior to the completion of any investigation shall not preclude the commissioner from issuing a licensing sanction under this sectiondeleted text begin ,deleted text end new text begin ornew text end section 245A.06deleted text begin , or 245A.08deleted text end at the conclusion of the investigation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 37.

Minnesota Statutes 2018, section 245A.07, subdivision 2, is amended to read:

Subd. 2.

Temporary immediate suspension.

(a) The commissioner shall act immediately to temporarily suspend a license new text begin issued under this chapter new text end if:

(1) the license holder's actions or failure to comply with applicable law or rule, or the actions of other individuals or conditions in the program, pose an imminent risk of harm to the health, safety, or rights of persons served by the program; deleted text begin ordeleted text end

(2) while the program continues to operate pending an appeal of an order of revocation, the commissioner identifies one or more subsequent violations of law or rule which may adversely affect the health or safety of persons served by the programdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (3) the license holder is criminally charged in state or federal court with an offense that involves fraud or theft against a program administered by the commissioner. new text end

(b) No state funds shall be made available or be expended by any agency or department of state, county, or municipal government for use by a license holder regulated under this chapter while a license new text begin issued under this chapter new text end is under immediate suspension. A notice stating the reasons for the immediate suspension and informing the license holder of the right to an expedited hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612, must be delivered by personal service to the address shown on the application or the last known address of the license holder. The license holder may appeal an order immediately suspending a license. The appeal of an order immediately suspending a license must be made in writing by certified mail deleted text begin ordeleted text end new text begin ,new text end personal servicenew text begin , or other means expressly set forth in the commissioner's ordernew text end . If mailed, the appeal must be postmarked and sent to the commissioner within five calendar days after the license holder receives notice that the license has been immediately suspended. If a request is made by personal service, it must be received by the commissioner within five calendar days after the license holder received the order. A license holder and any controlling individual shall discontinue operation of the program upon receipt of the commissioner's order to immediately suspend the license.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 38.

Minnesota Statutes 2018, section 245A.07, subdivision 2a, is amended to read:

Subd. 2a.

Immediate suspension expedited hearing.

(a) Within five working days of receipt of the license holder's timely appeal, the commissioner shall request assignment of an administrative law judge. The request must include a proposed date, time, and place of a hearing. A hearing must be conducted by an administrative law judge within 30 calendar days of the request for assignment, unless an extension is requested by either party and granted by the administrative law judge for good cause. The commissioner shall issue a notice of hearing by certified mail or personal service at least ten working days before the hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary immediate suspension should remain in effect pending the commissioner's final order under section 245A.08, regarding a licensing sanction issued under subdivision 3 following the immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the burden of proof in expedited hearings under this subdivision shall be limited to the commissioner's demonstration that reasonable cause exists to believe that the license holder's actions or failure to comply with applicable law or rule poses, or the actions of other individuals or conditions in the program poses an imminent risk of harm to the health, safety, or rights of persons served by the program. "Reasonable cause" means there exist specific articulable facts or circumstances which provide the commissioner with a reasonable suspicion that there is an imminent risk of harm to the health, safety, or rights of persons served by the program. When the commissioner has determined there is reasonable cause to order the temporary immediate suspension of a license based on a violation of safe sleep requirements, as defined in section 245A.1435, the commissioner is not required to demonstrate that an infant died or was injured as a result of the safe sleep violations. For suspensions under subdivision 2, paragraph (a), clause (2), the burden of proof in expedited hearings under this subdivision shall be limited to the commissioner's demonstration by a preponderance of new text begin the new text end evidence that, since the license was revoked, the license holder committed additional violations of law or rule which may adversely affect the health or safety of persons served by the program.

(b) The administrative law judge shall issue findings of fact, conclusions, and a recommendation within ten working days from the date of hearing. The parties shall have ten calendar days to submit exceptions to the administrative law judge's report. The record shall close at the end of the ten-day period for submission of exceptions. The commissioner's final order shall be issued within ten working days from the close of the record. When an appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner shall issue a final order affirming the temporary immediate suspension within ten calendar days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days after a final order affirming an immediate suspension, the commissioner shall make a determination regarding whether a final licensing sanction shall be issued under subdivision 3. The license holder shall continue to be prohibited from operation of the program during this 90-day period.

(c) When the final order under paragraph (b) affirms an immediate suspension, and a final licensing sanction is issued under subdivision 3 and the license holder appeals that sanction, the license holder continues to be prohibited from operation of the program pending a final commissioner's order under section 245A.08, subdivision 5, regarding the final licensing sanction.

new text begin (d) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof in expedited hearings under this subdivision shall be limited to the commissioner's demonstration by a preponderance of the evidence that a criminal complaint and warrant or summons was issued for the license holder that was not dismissed, and that the criminal charge is an offense that involves fraud or theft against a program administered by the commissioner. new text end

Sec. 39.

Minnesota Statutes 2018, section 245A.07, subdivision 3, is amended to read:

Subd. 3.

License suspension, revocation, or fine.

(a) The commissioner may suspend or revoke a license, or impose a fine if:

(1) a license holder fails to comply fully with applicable laws or rulesnew text begin including but not limited to the requirements of this chapter and chapter 245Cnew text end ;

(2) a license holder, a controlling individual, or an individual living in the household where the licensed services are provided or is otherwise subject to a background study has deleted text begin adeleted text end new text begin been disqualified and thenew text end disqualification deleted text begin which hasdeleted text end new text begin wasnew text end not deleted text begin beendeleted text end set aside deleted text begin under section 245C.22deleted text end new text begin and no variance has been grantednew text end ;

(3) a license holder knowingly withholds relevant information from or gives false or misleading information to the commissioner in connection with an application for a license, in connection with the background study status of an individual, during an investigation, or regarding compliance with applicable laws or rules; deleted text begin ordeleted text end

(4) deleted text begin after July 1, 2012, and upon request by the commissioner, a license holder fails to submit the information required of an applicant under section 245A.04, subdivision 1, paragraph (f) or (g).deleted text end new text begin a license holder is excluded from any program administered by the commissioner under section 245.095; ornew text end

new text begin (5) revocation is required under section 245A.04, subdivision 7, paragraph (d). new text end

A license holder who has had a license new text begin issued under this chapter new text end suspended, revoked, or has been ordered to pay a fine must be given notice of the action by certified mail or personal service. If mailed, the notice must be mailed to the address shown on the application or the last known address of the license holder. The notice must state in plain language the reasons the license was suspended or revoked, or a fine was ordered.

(b) If the license was suspended or revoked, the notice must inform the license holder of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking a license. The appeal of an order suspending or revoking a license must be made in writing by certified mail or personal service. If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar days after the license holder receives notice that the license has been suspended or revoked. If a request is made by personal service, it must be received by the commissioner within ten calendar days after the license holder received the order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits a timely appeal of an order suspending or revoking a license, the license holder may continue to operate the program as provided in section 245A.04, subdivision 7, paragraphs deleted text begin (g)deleted text end new text begin (f)new text end and deleted text begin (h)deleted text end new text begin (g)new text end , until the commissioner issues a final order on the suspension or revocation.

(c)(1) If the license holder was ordered to pay a fine, the notice must inform the license holder of the responsibility for payment of fines and the right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal of an order to pay a fine must be made in writing by certified mail or personal service. If mailed, the appeal must be postmarked and sent to the commissioner within ten calendar days after the license holder receives notice that the fine has been ordered. If a request is made by personal service, it must be received by the commissioner within ten calendar days after the license holder received the order.

(2) The license holder shall pay the fines assessed on or before the payment date specified. If the license holder fails to fully comply with the order, the commissioner may issue a second fine or suspend the license until the license holder complies. If the license holder receives state funds, the state, county, or municipal agencies or departments responsible for administering the funds shall withhold payments and recover any payments made while the license is suspended for failure to pay a fine. A timely appeal shall stay payment of the fine until the commissioner issues a final order.

(3) A license holder shall promptly notify the commissioner of human services, in writing, when a violation specified in the order to forfeit a fine is corrected. If upon reinspection the commissioner determines that a violation has not been corrected as indicated by the order to forfeit a fine, the commissioner may issue a second fine. The commissioner shall notify the license holder by certified mail or personal service that a second fine has been assessed. The license holder may appeal the second fine as provided under this subdivision.

(4) Fines shall be assessed as follows:

(i) the license holder shall forfeit $1,000 for each determination of maltreatment of a child under section 626.556 or the maltreatment of a vulnerable adult under section 626.557 for which the license holder is determined responsible for the maltreatment under section 626.556, subdivision 10e, paragraph (i), or 626.557, subdivision 9c, paragraph (c);

(ii) if the commissioner determines that a determination of maltreatment for which the license holder is responsible is the result of maltreatment that meets the definition of serious maltreatment as defined in section 245C.02, subdivision 18, the license holder shall forfeit $5,000;

(iii) for a program that operates out of the license holder's home and a program licensed under Minnesota Rules, parts 9502.0300 to deleted text begin 9502.0495deleted text end new text begin 9502.0445new text end , the fine assessed against the license holder shall not exceed $1,000 for each determination of maltreatment;

(iv) the license holder shall forfeit $200 for each occurrence of a violation of law or rule governing matters of health, safety, or supervision, including but not limited to the provision of adequate staff-to-child or adult ratios, and failure to comply with background study requirements under chapter 245C; and

(v) the license holder shall forfeit $100 for each occurrence of a violation of law or rule other than those subject to a $5,000, $1,000, or $200 fine in items (i) to (iv).

For purposes of this section, "occurrence" means each violation identified in the commissioner's fine order. Fines assessed against a license holder that holds a license to provide home and community-based services, as identified in section 245D.03, subdivision 1, and a community residential setting or day services facility license under chapter 245D where the services are provided, may be assessed against both licenses for the same occurrence, but the combined amount of the fines shall not exceed the amount specified in this clause for that occurrence.

(5) When a fine has been assessed, the license holder may not avoid payment by closing, selling, or otherwise transferring the licensed program to a third party. In such an event, the license holder will be personally liable for payment. In the case of a corporation, each controlling individual is personally and jointly liable for payment.

(d) Except for background study violations involving the failure to comply with an order to immediately remove an individual or an order to provide continuous, direct supervision, the commissioner shall not issue a fine under paragraph (c) relating to a background study violation to a license holder who self-corrects a background study violation before the commissioner discovers the violation. A license holder who has previously exercised the provisions of this paragraph to avoid a fine for a background study violation may not avoid a fine for a subsequent background study violation unless at least 365 days have passed since the license holder self-corrected the earlier background study violation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 40.

Minnesota Statutes 2018, section 245A.14, subdivision 4, is amended to read:

Subd. 4.

Special family day care homes.

Nonresidential child care programs serving 14 or fewer children that are conducted at a location other than the license holder's own residence shall be licensed under this section and the rules governing family day care or group family day care if:

(a) the license holder is the primary provider of care and the nonresidential child care program is conducted in a dwelling that is located on a residential lot;

(b) the license holder is an employer who may or may not be the primary provider of care, and the purpose for the child care program is to provide child care services to children of the license holder's employees;

(c) the license holder is a church or religious organization;

(d) the license holder is a community collaborative child care provider. For purposes of this subdivision, a community collaborative child care provider is a provider participating in a cooperative agreement with a community action agency as defined in section 256E.31;

(e) the license holder is a not-for-profit agency that provides child care in a dwelling located on a residential lot and the license holder maintains two or more contracts with community employers or other community organizations to provide child care services. The county licensing agency may grant a capacity variance to a license holder licensed under this paragraph to exceed the licensed capacity of 14 children by no more than five children during transition periods related to the work schedules of parents, if the license holder meets the following requirements:

(1) the program does not exceed a capacity of 14 children more than a cumulative total of four hours per day;

(2) the program meets a one to seven staff-to-child ratio during the variance period;

(3) all employees receive at least an extra four hours of training per year than required in the rules governing family child care each year;

(4) the facility has square footage required per child under Minnesota Rules, part 9502.0425;

(5) the program is in compliance with local zoning regulations;

(6) the program is in compliance with the applicable fire code as follows:

(i) if the program serves more than five children older than 2-1/2 years of age, but no more than five children 2-1/2 years of age or less, the applicable fire code is educational occupancy, as provided in Group E Occupancy under the Minnesota State Fire Code deleted text begin 2003deleted text end new text begin 2015new text end , Section 202; or

(ii) if the program serves more than five children 2-1/2 years of age or less, the applicable fire code is Group I-4 Occupancies, as provided in the Minnesota State Fire Code deleted text begin 2003deleted text end new text begin 2015new text end , Section 202new text begin , unless the rooms in which the children are cared for are located on a level of exit discharge and each of these child care rooms has an exit door directly to the exterior, then the applicable fire code is Group E occupancies, as provided in the Minnesota State Fire Code 2015, Section 202new text end ; and

(7) any age and capacity limitations required by the fire code inspection and square footage determinations shall be printed on the license; or

(f) the license holder is the primary provider of care and has located the licensed child care program in a commercial space, if the license holder meets the following requirements:

(1) the program is in compliance with local zoning regulations;

(2) the program is in compliance with the applicable fire code as follows:

(i) if the program serves more than five children older than 2-1/2 years of age, but no more than five children 2-1/2 years of age or less, the applicable fire code is educational occupancy, as provided in Group E Occupancy under the Minnesota State Fire Code deleted text begin 2003deleted text end new text begin 2015new text end , Section 202; or

(ii) if the program serves more than five children 2-1/2 years of age or less, the applicable fire code is Group I-4 Occupancies, as provided under the Minnesota State Fire Code deleted text begin 2003deleted text end new text begin 2015new text end , Section 202;

(3) any age and capacity limitations required by the fire code inspection and square footage determinations are printed on the license; and

(4) the license holder prominently displays the license issued by the commissioner which contains the statement "This special family child care provider is not licensed as a child care center."

new text begin (g) The commissioner may approve two or more licenses under paragraphs (a) to (f) to be issued at the same location or under one contiguous roof, if each license holder is able to demonstrate compliance with all applicable rules and laws. Each license holder must operate the license holder's respective licensed program as a distinct program and within the capacity, age, and ratio distributions of each license. new text end

new text begin (h) The commissioner may grant variances to this section to allow a primary provider of care, a not-for-profit organization, a church or religious organization, an employer, or a community collaborative to be licensed to provide child care under paragraphs (e) and (f) if the license holder meets the other requirements of the statute. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 41.

Minnesota Statutes 2018, section 245A.14, subdivision 8, is amended to read:

Subd. 8.

Experienced aides; child care centers.

(a) An individual employed as an aide at a child care center may work with children without being directly supervised for an amount of time that does not exceed 25 percent of the child care center's daily hours if:

(1) a teacher is in the facility;

deleted text begin (2) the individual has received within the last three years first aid training that meets the requirements under section 245A.40, subdivision 3, and CPR training that meets the requirements under section 245A.40, subdivision 4; deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end the individual is at least 20 years old; and

deleted text begin (4)deleted text end new text begin (3)new text end the individual has at least 4,160 hours of child care experience as a staff member in a licensed child care center or as the license holder of a family day care home, 120 days of which must be in the employment of the current company.

(b) A child care center that uses experienced aides under this subdivision must notify parents or guardians by posting the notification in each classroom that uses experienced aides, identifying which staff member is the experienced aide. Records of experienced aide usage must be kept on site and given to the commissioner upon request.

(c) A child care center may not use the experienced aide provision for one year following two determined experienced aide violations within a one-year period.

(d) A child care center may use one experienced aide per every four full-time child care classroom staff.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 42.

Minnesota Statutes 2018, section 245A.14, is amended by adding a subdivision to read:

new text begin Subd. 16. new text end

new text begin Valid driver's license. new text end

new text begin Notwithstanding any law to the contrary, when a licensed child care center provides transportation for children or contracts to provide transportation for children, a person who has a current, valid driver's license appropriate to the vehicle driven may transport the child. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 43.

Minnesota Statutes 2018, section 245A.14, is amended by adding a subdivision to read:

new text begin Subd. 17. new text end

new text begin Reusable water bottles or cups. new text end

new text begin Notwithstanding any law to the contrary, a licensed child care center may provide drinking water to a child in a reusable water bottle or reusable cup if the center develops and ensures implementation of a written policy that at a minimum includes the following procedures: new text end

new text begin (1) each day the water bottle or cup is used, the child care center cleans and sanitizes the water bottle or cup using procedures that comply with the Food Code under Minnesota Rules, chapter 4626; new text end

new text begin (2) a water bottle or cup is assigned to a specific child and labeled with the child's first and last name; new text end

new text begin (3) water bottles and cups are stored in a manner that reduces the risk of a child using the wrong water bottle or cup; and new text end

new text begin (4) a water bottle or cup is used only for water. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 44.

Minnesota Statutes 2018, section 245A.145, subdivision 1, is amended to read:

Subdivision 1.

Policies and procedures.

(a) deleted text begin All licensed child care providersdeleted text end new text begin The Department of Human Servicesnew text end must develop policies and procedures for reporting suspected child maltreatment that fulfill the requirements in section 626.556 and deleted text begin must develop policies and procedures for reporting complaints about the operation of a child care program. The policies and procedures must include the telephone numbers of the local county child protection agency for reporting suspected maltreatment; the county licensing agency for family and group family child care providers; and the state licensing agency for child care centers.deleted text end new text begin provide the policies and procedures to all licensed child care providers. The policies and procedures must be written in plain language.new text end

(b) The policies and procedures required in paragraph (a) must:

(1) be provided to the parents of all children at the time of enrollment in the child care program; and

(2) be made available upon request.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 45.

Minnesota Statutes 2018, section 245A.145, subdivision 2, is amended to read:

Subd. 2.

Licensing agency phone number displayed.

deleted text begin By July 1, 2002,deleted text end A new or renewed child care license must includenew text begin the licensing agency's telephone number andnew text end a statement that informs parents who have deleted text begin concernsdeleted text end new text begin questionsnew text end about their child's care that they may call the licensing agency. deleted text begin The commissioner shall print the telephone number for the licensing agency in bold and large font on the license issued to child care providers.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 46.

new text begin [245A.149] SUPERVISION OF FAMILY CHILD CARE LICENSE HOLDER'S OWN CHILD. new text end

new text begin (a) Notwithstanding Minnesota Rules, part 9502.0365, subpart 5, an individual may be present in the licensed space, may supervise the family child care license holder's own child both inside and outside of the licensed space, and is exempt from the training and supervision requirements of this chapter and Minnesota Rules, chapter 9502, if the individual: new text end

new text begin (1) is related to the license holder, as defined in section 245A.02, subdivision 13; new text end

new text begin (2) is not a designated caregiver, helper, or substitute for the licensed program; new text end

new text begin (3) is involved only in the care of the license holder's own child; and new text end

new text begin (4) does not have direct, unsupervised contact with any nonrelative children receiving services. new text end

new text begin (b) If the individual in paragraph (a) is not a household member, the individual is also exempt from background study requirements under chapter 245C. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 47.

Minnesota Statutes 2018, section 245A.151, is amended to read:

245A.151 FIRE MARSHAL INSPECTION.

When licensure under this chapternew text begin or certification under chapter 245Hnew text end requires an inspection by a fire marshal to determine compliance with the State Fire Code under section 299F.011, a local fire code inspector approved by the state fire marshal may conduct the inspection. If a community does not have a local fire code inspector or if the local fire code inspector does not perform the inspection, the state fire marshal must conduct the inspection. A local fire code inspector or the state fire marshal may recover the cost of these inspections through a fee of no more than $50 per inspection charged to the applicant or license holdernew text begin or license-exempt child care center certification holdernew text end . The fees collected by the state fire marshal under this section are appropriated to the commissioner of public safety for the purpose of conducting the inspections.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 48.

Minnesota Statutes 2018, section 245A.16, subdivision 1, is amended to read:

Subdivision 1.

Delegation of authority to agencies.

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

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

(2) adult foster care maximum capacity;

(3) adult foster care minimum age requirement;

(4) child foster care maximum age requirement;

(5) variances regarding disqualified individuals except that, before the implementation of NETStudy 2.0, county agencies may issue variances under section 245C.30 regarding disqualified individuals when the county is responsible for conducting a consolidated reconsideration according to sections 245C.25 and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination and a disqualification based on serious or recurring maltreatment;

(6) the required presence of a caregiver in the adult foster care residence during normal sleeping hours; deleted text begin anddeleted text end

(7) variances to requirements relating to chemical use problems of a license holder or a household member of a license holderdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (8) variances to section 245A.53 for a time-limited period. If the commissioner grants a variance under this clause, the license holder must provide notice of the variance to all parents and guardians of the children in care. new text end

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

(b) Before the implementation of NETStudy 2.0, county agencies must report information about disqualification reconsiderations under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances granted under paragraph (a), clause (5), to the commissioner at least monthly in a format prescribed by the commissioner.

(c) For family child care programs, the commissioner shall require a county agency to conduct one unannounced licensing review at least annually.

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

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

(f) During implementation of chapter 245D, the commissioner shall consider:

(1) the role of counties in quality assurance;

(2) the duties of county licensing staff; and

(3) the possible use of joint powers agreements, according to section 471.59, with counties through which some licensing duties under chapter 245D may be delegated by the commissioner to the counties.

Any consideration related to this paragraph must meet all of the requirements of the corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.

(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or successor provisions; and section 245D.061 or successor provisions, for family child foster care programs providing out-of-home respite, as identified in section 245D.03, subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority to county and private agencies.

(h) A county agency shall report to the commissioner, in a manner prescribed by the commissioner, the following information for a licensed family child care program:

(1) the results of each licensing review completed, including the date of the review, and any licensing correction order issued; deleted text begin anddeleted text end

(2) any death, serious injury, or determination of substantiated maltreatmentdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (3) any fires that require the service of a fire department within 48 hours of the fire. The information under this clause must also be reported to the State Fire Marshal within two business days of receiving notice from a licensed family child care provider. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 49.

Minnesota Statutes 2018, section 245A.18, subdivision 2, is amended to read:

Subd. 2.

Child passenger restraint systems; training requirement.

(a) Programs licensed by the Department of Human Services under Minnesota Rules, chapter 2960, that serve a child or children under deleted text begin ninedeleted text end new text begin eightnew text end years of age must document training that fulfills the requirements in this subdivision.

(b) Before a license holder, staff person, or caregiver transports a child or children under age deleted text begin ninedeleted text end new text begin eightnew text end in a motor vehicle, the person transporting the child must satisfactorily complete training on the proper use and installation of child restraint systems in motor vehicles. Training completed under this section may be used to meet initial or ongoing training under Minnesota Rules, part 2960.3070, subparts 1 and 2.

deleted text begin For all providers licensed prior to July 1, 2006, the training required in this subdivision must be obtained by December 31, 2007. deleted text end

(c) Training required under this section must be deleted text begin at least one hour in length,deleted text end completed at orientation or initial trainingdeleted text begin ,deleted text end and repeated at least once every five years. At a minimum, the training must address the proper use of child restraint systems based on the child's size, weight, and age, and the proper installation of a car seat or booster seat in the motor vehicle used by the license holder to transport the child or children.

(d) Training under paragraph (c) must be provided by individuals who are certified and approved by the Department of Public Safety, Office of Traffic Safety. License holders may obtain a list of certified and approved trainers through the Department of Public Safety website or by contacting the agency.

deleted text begin (e) Child care providers that only transport school age children as defined in section 245A.02, subdivision 16, in school buses as defined in section 169.011, subdivision 71, paragraphs (c) to (f), are exempt from this subdivision. deleted text end

new text begin (e) Notwithstanding paragraph (a), for an emergency relative placement under section 245A.035, the commissioner may grant a variance to the training required by this subdivision for a relative who completes a child seat safety check up. The child seat safety check up trainer must be approved by the Department of Public Safety, Office of Traffic Safety, and must provide one-on-one instruction on placing a child of a specific age in the exact child passenger restraint in the motor vehicle in which the child will be transported. Once granted a variance, and if all other licensing requirements are met, the relative applicant may receive a license and may transport a relative foster child younger than eight years of age. A child seat safety check up must be completed each time a child requires a different size car seat according to car seat and vehicle manufacturer guidelines. A relative license holder must complete training that meets the other requirements of this subdivision prior to placement of another foster child younger than eight years of age in the home or prior to the renewal of the child foster care license. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 50.

new text begin [245A.24] MANDATORY REPORTING. new text end

new text begin Any individual engaging in licensing functions and activities under this chapter, including authorities delegated under section 245A.16, must immediately report any suspected fraud to county human services investigators or the Department of Human Services Office of Inspector General. new text end

Sec. 51.

Minnesota Statutes 2018, section 245A.40, is amended to read:

245A.40 CHILD CARE CENTER TRAINING REQUIREMENTS.

Subdivision 1.

Orientation.

new text begin (a) new text end The child care center license holder must ensure that deleted text begin everydeleted text end new text begin the director,new text end staff deleted text begin person and volunteer isdeleted text end new text begin persons, substitutes, and unsupervised volunteers arenew text end given orientation training and successfully deleted text begin completesdeleted text end new text begin completenew text end the training before starting assigned duties. deleted text begin The orientation training in this subdivision applies to volunteers who will have direct contact with or access to children and who are not under the direct supervision of a staff person. Completion of the orientation must be documented in the individual's personnel record.deleted text end The orientation training must include information about:

(1) the center's philosophy, child care program, and procedures for maintaining health and safety according to section 245A.41 and Minnesota Rules, part 9503.0140, and handling emergencies and accidents according to Minnesota Rules, part 9503.0110;

(2) specific job responsibilities;

(3) the behavior guidance standards in Minnesota Rules, part 9503.0055; deleted text begin anddeleted text end

(4) the reporting responsibilities in section 626.556, and Minnesota Rules, part 9503.0130deleted text begin .deleted text end new text begin ;new text end

new text begin (5) the center's drug and alcohol policy under section 245A.04, subdivision 1, paragraph (c); new text end

new text begin (6) the center's risk reduction plan as required under section 245A.66, subdivision 2; new text end

new text begin (7) at least one-half hour of training on the standards under section 245A.1435 and on reducing the risk of sudden unexpected infant death as required in subdivision 5, if applicable; new text end

new text begin (8) at least one-half hour of training on the risk of abusive head trauma as required for the director and staff under subdivision 5a, if applicable; and new text end

new text begin (9) training required by a child's individual child care program plan as required under Minnesota Rules, part 9503.0065, subpart 3, if applicable. new text end

new text begin (b) In addition to paragraph (a), before having unsupervised direct contact with a child, the director and staff persons within the first 90 days of employment, and substitutes and unsupervised volunteers within 90 days after the first date of direct contact with a child, must complete: new text end

new text begin (1) pediatric first aid, in accordance with subdivision 3; and new text end

new text begin (2) pediatric cardiopulmonary resuscitation, in accordance with subdivision 4. new text end

new text begin (c) In addition to paragraph (b), the director and staff persons within the first 90 days of employment, and substitutes and unsupervised volunteers within 90 days from the first date of direct contact with a child, must complete training in child development, in accordance with subdivision 2. new text end

new text begin (d) The license holder must ensure that documentation, as required in subdivision 10, identifies the number of hours completed for each topic with a minimum training time identified, if applicable, and that all required content is included. new text end

new text begin (e) Training in this subdivision must not be used to meet in-service training requirements in subdivision 7. new text end

new text begin (f) Training completed within the previous 12 months under paragraphs (a), clauses (7) and (8), and (c) are transferable to another child care center. new text end

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the meanings given. new text end

new text begin (b) "Substitute" means an adult who is temporarily filling a position as a director, teacher, assistant teacher, or aide in a licensed child care center for less than 240 hours total in a calendar year due to the absence of a regularly employed staff person. new text end

new text begin (c) "Staff person" means an employee of a child care center who provides direct contact services to children. new text end

new text begin (d) "Unsupervised volunteer" means an individual who: new text end

new text begin (1) assists in the care of a child in care; new text end

new text begin (2) is not under the continuous direct supervision of a staff person; and new text end

new text begin (3) is not employed by the child care center. new text end

Subd. 2.

Child development and learning training.

(a) deleted text begin For purposes of child care centers,deleted text end The director and all staff deleted text begin hired after July 1, 2006,deleted text end new text begin persons, substitutes, and unsupervised volunteersnew text end shall complete deleted text begin and document at least two hours ofdeleted text end child development and learning training within the first 90 days of employment.new text begin The director and staff persons, not including substitutes, must complete at least two hours of training on child development and learning. The training for substitutes and unsupervised volunteers is not required to be of a minimum length.new text end For purposes of this subdivision, "child development and learning training" meansnew text begin anynew text end training innew text begin Knowledge and Competency Area I: Child Development and Learning, which is training innew text end understanding how children develop physically, cognitively, emotionally, and socially and learn as part of the children's family, culture, and community. deleted text begin Training completed under this subdivision may be used to meet the in-service training requirements under subdivision 7.deleted text end

(b) Notwithstanding paragraph (a), individuals are exempt from this requirement if they:

(1) have taken a three-credit college course on early childhood development within the past five years;

(2) have received a baccalaureate or master's degree in early childhood education or school-age child care within the past five years;

(3) are licensed in Minnesota as a prekindergarten teacher, an early childhood educator, a kindergarten to sixth grade teacher with a prekindergarten specialty, an early childhood special education teacher, or an elementary teacher with a kindergarten endorsement; or

(4) have received a baccalaureate degree with a Montessori certificate within the past five years.

new text begin (c) The director and staff persons, not including substitutes, must complete at least two hours of child development and learning training every second calendar year. new text end

new text begin (d) Substitutes and unsupervised volunteers must complete child development and learning training every second calendar year. There is no minimum number of training hours required. new text end

new text begin (e) Except for training required under paragraph (a), training completed under this subdivision may be used to meet the in-service training requirements under subdivision 7. new text end

Subd. 3.

First aid.

(a) deleted text begin All teachers and assistant teachers in a child care center governed by Minnesota Rules, parts 9503.0005 to 9503.0170, and at least one staff person during field trips and when transporting children in care, must satisfactorily complete pediatric first aid training within 90 days of the start of work, unless the training has been completed within the previous two years.deleted text end new text begin Unless training has been completed within the previous two years, the director, staff persons, substitutes, and unsupervised volunteers must satisfactorily complete pediatric first aid training prior to having unsupervised direct contact with a child, but not to exceed the first 90 days of employment.new text end

(b) deleted text begin Notwithstanding paragraph (a), which allows 90 days to complete training, at least one staff person who has satisfactorily completed pediatric first aid training must be present at all times in the center, during field trips, and when transporting children in care.deleted text end new text begin Pediatric first aid training must be repeated at least every second calendar year. First aid training under this subdivision must be provided by an individual approved as a first aid instructor and must not be used to meet in-service training requirements under subdivision 7.new text end

deleted text begin (c) The pediatric first aid training must be repeated at least every two years, documented in the person's personnel record and indicated on the center's staffing chart, and provided by an individual approved as a first aid instructor. This training may be less than eight hours. deleted text end

Subd. 4.

Cardiopulmonary resuscitation.

deleted text begin (a) All teachers and assistant teachers in a child care center governed by Minnesota Rules, parts 9503.0005 to 9503.0170, and at least one staff person during field trips and when transporting children in care, must satisfactorily complete training in cardiopulmonary resuscitation (CPR) that includes CPR techniques for infants and children and in the treatment of obstructed airways. The CPR training must be completed within 90 days of the start of work, unless the training has been completed within the previous two years. The CPR training must have been provided by an individual approved to provide CPR instruction, must be repeated at least once every two years, and must be documented in the staff person's records. deleted text end

deleted text begin (b) Notwithstanding paragraph (a), which allows 90 days to complete training, at least one staff person who has satisfactorily completed cardiopulmonary resuscitation training must be present at all times in the center, during field trips, and when transporting children in care. deleted text end

deleted text begin (c) CPR training may be provided for less than four hours. deleted text end

deleted text begin (d) Persons providing CPR training must use CPR training that has been developed: deleted text end

deleted text begin (1) by the American Heart Association or the American Red Cross and incorporates psychomotor skills to support the instruction; or deleted text end

deleted text begin (2) using nationally recognized, evidence-based guidelines for CPR and incorporates psychomotor skills to support the instruction. deleted text end

new text begin (a) Unless training has been completed within the previous two years, the director, staff persons, substitutes, and unsupervised volunteers must satisfactorily complete pediatric cardiopulmonary resuscitation (CPR) training that meets the requirements of this subdivision. Pediatric CPR training must be completed prior to having unsupervised direct contact with a child, but not to exceed the first 90 days of employment. new text end

new text begin (b) Pediatric CPR training must be provided by an individual approved to provide pediatric CPR instruction. new text end

new text begin (c) The Pediatric CPR training must: new text end

new text begin (1) cover CPR techniques for infants and children and the treatment of obstructed airways; new text end

new text begin (2) include instruction, hands-on practice, and an in-person, observed skills assessment under the direct supervision of a CPR instructor; and new text end

new text begin (3) be developed by the American Heart Association, the American Red Cross, or another organization that uses nationally recognized, evidence-based guidelines for CPR. new text end

new text begin (d) Pediatric CPR training must be repeated at least once every second calendar year. new text end

new text begin (e) Pediatric CPR training in this subdivision must not be used to meet in-service training requirements under subdivision 7. new text end

Subd. 5.

Sudden unexpected infant death deleted text begin and abusive head traumadeleted text end training.

new text begin (a) Before caring for infants, the director, staff persons, substitutes, unsupervised volunteers, and any other volunteers must receive training on the standards under section 245A.1435 and on reducing the risk of sudden unexpected infant death during orientation and each calendar year thereafter. new text end

new text begin (b) Sudden unexpected infant death reduction training required under this subdivision must be at least one-half hour in length. At a minimum, the training must address the risk factors related to sudden unexpected infant death, means of reducing the risk of sudden unexpected infant death in child care, and license holder communication with parents regarding reducing the risk of sudden unexpected infant death. new text end

new text begin (c) Except if completed during orientation, training taken under this subdivision may be used to meet the in-service training requirements under subdivision 7. new text end

new text begin Subd. 5a. new text end

new text begin Abusive head trauma training. new text end

deleted text begin (a) License holders must document that before staff persons and volunteers care for infants, they are instructed on the standards in section 245A.1435 and receive training on reducing the risk of sudden unexpected infant death. In addition, license holders must document that before staff persons care for infants or children under school age, they receive training on the risk of abusive head trauma from shaking infants and young children. The training in this subdivision may be provided as orientation training under subdivision 1 and in-service training under subdivision 7. deleted text end new text begin (a) Before caring for children under school age, the director, staff persons, substitutes, and unsupervised volunteers must receive training on the risk of abusive head trauma during orientation and each calendar year thereafter. new text end

deleted text begin (b) Sudden unexpected infant death reduction training required under this subdivision must be at least one-half hour in length and must be completed at least once every year. At a minimum, the training must address the risk factors related to sudden unexpected infant death, means of reducing the risk of sudden unexpected infant death in child care, and license holder communication with parents regarding reducing the risk of sudden unexpected infant death. deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end Abusive head trauma training under this subdivision must be at least one-half hour in length deleted text begin and must be completed at least once every yeardeleted text end . At a minimum, the training must address the risk factors related to shaking infants and young children, means to reduce the risk of abusive head trauma in child care, and license holder communication with parents regarding reducing the risk of abusive head trauma.

new text begin (c) Except if completed during orientation, training taken under this subdivision may be used to meet the in-service training requirements under subdivision 7. new text end

(d) The commissioner shall make available for viewing a video presentation on the dangers associated with shaking infants and young children, which may be used in conjunction with the annual training required under paragraph deleted text begin (c)deleted text end new text begin (a)new text end .

Subd. 6.

Child passenger restraint systemsdeleted text begin ; training requirementdeleted text end .

deleted text begin (a) A license holder must comply with all seat belt and child passenger restraint system requirements under section 169.685. (b) Child care centers that serve a child or children under nine years of age must document training that fulfills the requirements in this subdivision. deleted text end

deleted text begin (1)deleted text end new text begin (a)new text end Before a license holder transports a child or children under age deleted text begin ninedeleted text end new text begin eightnew text end in a motor vehicle, the person placing the child or children in a passenger restraint must satisfactorily complete training on the proper use and installation of child restraint systems in motor vehicles. deleted text begin Training completed under this subdivision may be used to meet orientation training under subdivision 1 and in-service training under subdivision 7.deleted text end

deleted text begin (2)deleted text end new text begin (b)new text end Training required under this subdivision must be deleted text begin at least one hour in length, completed at orientation, anddeleted text end repeated at least once every five years. At a minimum, the training must address the proper use of child restraint systems based on the child's size, weight, and age, and the proper installation of a car seat or booster seat in the motor vehicle used by the license holder to transport the child or children.

deleted text begin (3)deleted text end new text begin (c)new text end Training required under this subdivision must be provided by individuals who are certified and approved by the Department of Public Safety, Office of Traffic Safety. License holders may obtain a list of certified and approved trainers through the Department of Public Safety website or by contacting the agency.

deleted text begin (4)deleted text end new text begin (d)new text end Child care providers that only transport school-age children as defined in section 245A.02, subdivision 16, in child care buses as defined in section 169.448, subdivision 1, paragraph (e), are exempt from this subdivision.

new text begin (e) Training completed under this subdivision may be used to meet in-service training requirements under subdivision 7. Training completed within the previous five years is transferable upon a staff person's change in employment to another child care center. new text end

Subd. 7.

In-service.

(a) A license holder must ensure that the center director deleted text begin and all staff who have direct contact with a child complete annual in-service training. In-service training requirements must be met by a staff person's participation in the following training areas:deleted text end new text begin , staff persons, substitutes, and unsupervised volunteers complete in-service training each calendar year.new text end

new text begin (b) The center director and staff persons who work more than 20 hours per week must complete 24 hours of in-service training each calendar year. Staff persons who work 20 hours or less per week must complete 12 hours of in-service training each calendar year. Substitutes and unsupervised volunteers must complete the requirements of paragraphs (e) to (h) and do not otherwise have a minimum number of hours of training to complete. new text end

new text begin (c) The number of in-service training hours may be prorated for individuals not employed for an entire year. new text end

new text begin (d) Each year, in-service training must include: new text end

new text begin (1) the center's procedures for maintaining health and safety according to section 245A.41 and Minnesota Rules, part 9503.0140, and handling emergencies and accidents according to Minnesota Rules, part 9503.0110; new text end

new text begin (2) the reporting responsibilities under section 626.556 and Minnesota Rules, part 9503.0130; new text end

new text begin (3) at least one-half hour of training on the standards under section 245A.1435 and on reducing the risk of sudden unexpected infant death as required under subdivision 5, if applicable; and new text end

new text begin (4) at least one-half hour of training on the risk of abusive head trauma from shaking infants and young children as required under subdivision 5a, if applicable. new text end

new text begin (e) Each year, or when a change is made, whichever is more frequent, in-service training must be provided on: (1) the center's risk reduction plan under section 245A.66, subdivision 2; and (2) a child's individual child care program plan as required under Minnesota Rules, part 9503.0065, subpart 3. new text end

new text begin (f) At least once every two calendar years, the in-service training must include: new text end

new text begin (1) child development and learning training under subdivision 2; new text end

new text begin (2) pediatric first aid that meets the requirements of subdivision 3; new text end

new text begin (3) pediatric cardiopulmonary resuscitation training that meets the requirements of subdivision 4; new text end

new text begin (4) cultural dynamics training to increase awareness of cultural differences; and new text end

new text begin (5) disabilities training to increase awareness of differing abilities of children. new text end

new text begin (g) At least once every five years, in-service training must include child passenger restraint training that meets the requirements of subdivision 6, if applicable. new text end

new text begin (h) The remaining hours of the in-service training requirement must be met by completing training in the following content areas of the Minnesota Knowledge and Competency Framework: new text end

(1)new text begin Content area I:new text end child development and learning;

(2)new text begin Content area II:new text end developmentally appropriate learning experiences;

(3)new text begin Content area III:new text end relationships with families;

(4)new text begin Content area IV:new text end assessment, evaluation, and individualization;

(5)new text begin Content area V:new text end historical and contemporary development of early childhood education;

(6)new text begin Content area VI:new text end professionalism; deleted text begin anddeleted text end

(7)new text begin Content area VII:new text end health, safety, and nutritionnew text begin ; andnew text end

new text begin (8) Content area VIII: application through clinical experiencesnew text end .

deleted text begin (b)deleted text end new text begin (i)new text end For purposes of this subdivision, the following terms have the meanings given them.

(1) "Child development and learning training" deleted text begin has the meaning given it in subdivision 2, paragraph (a).deleted text end new text begin means training in understanding how children develop physically, cognitively, emotionally, and socially and learn as part of the children's family, culture, and community.new text end

(2) "Developmentally appropriate learning experiences" means creating positive learning experiences, promoting cognitive development, promoting social and emotional development, promoting physical development, and promoting creative development.

(3) "Relationships with families" means training on building a positive, respectful relationship with the child's family.

(4) "Assessment, evaluation, and individualization" means training in observing, recording, and assessing development; assessing and using information to plan; and assessing and using information to enhance and maintain program quality.

(5) "Historical and contemporary development of early childhood education" means training in past and current practices in early childhood education and how current events and issues affect children, families, and programs.

(6) "Professionalism" means training in knowledge, skills, and abilities that promote ongoing professional development.

(7) "Health, safety, and nutrition" means training in establishing health practices, ensuring safety, and providing healthy nutrition.

new text begin (8) "Application through clinical experiences" means clinical experiences in which a person applies effective teaching practices using a range of educational programming models. new text end

deleted text begin (c) The director and all program staff persons must annually complete a number of hours of in-service training equal to at least two percent of the hours for which the director or program staff person is annually paid, unless one of the following is applicable. deleted text end

deleted text begin (1) A teacher at a child care center must complete one percent of working hours of in-service training annually if the teacher: deleted text end

deleted text begin (i) possesses a baccalaureate or master's degree in early childhood education or school-age care; deleted text end

deleted text begin (ii) is licensed in Minnesota as a prekindergarten teacher, an early childhood educator, a kindergarten to sixth grade teacher with a prekindergarten specialty, an early childhood special education teacher, or an elementary teacher with a kindergarten endorsement; or deleted text end

deleted text begin (iii) possesses a baccalaureate degree with a Montessori certificate. deleted text end

deleted text begin (2) A teacher or assistant teacher at a child care center must complete one and one-half percent of working hours of in-service training annually if the individual is: deleted text end

deleted text begin (i) a registered nurse or licensed practical nurse with experience working with infants; deleted text end

deleted text begin (ii) possesses a Montessori certificate, a technical college certificate in early childhood development, or a child development associate certificate; or deleted text end

deleted text begin (iii) possesses an associate of arts degree in early childhood education, a baccalaureate degree in child development, or a technical college diploma in early childhood development. deleted text end

deleted text begin (d) The number of required training hours may be prorated for individuals not employed full time or for an entire year. deleted text end

deleted text begin (e) The annual in-service training must be completed within the calendar year for which it was required. In-service training completed by staff persons is transferable upon a staff person's change in employment to another child care program. deleted text end

deleted text begin (f)deleted text end new text begin (j)new text end The license holder must ensure thatdeleted text begin , when a staff person completes in-service training, the training is documented in the staff person's personnel record. The documentation must include the date training was completed, the goal of the training and topics covered, trainer's name and organizational affiliation, trainer's signed statement that training was successfully completed,deleted text end new text begin documentation, as required in subdivision 10, includes the number of total training hours required to be completed, name of the training, the Minnesota Knowledge and Competency Framework content area, number of hours completed,new text end and the director's approval of the training.

new text begin (k) In-service training completed by a staff person that is not specific to that child care center is transferable upon a staff person's change in employment to another child care program. new text end

deleted text begin Subd. 8. deleted text end

deleted text begin Cultural dynamics and disabilities training for child care providers. deleted text end

deleted text begin (a) The training required of licensed child care center staff must include training in the cultural dynamics of early childhood development and child care. The cultural dynamics and disabilities training and skills development of child care providers must be designed to achieve outcomes for providers of child care that include, but are not limited to: deleted text end

deleted text begin (1) an understanding and support of the importance of culture and differences in ability in children's identity development; deleted text end

deleted text begin (2) understanding the importance of awareness of cultural differences and similarities in working with children and their families; deleted text end

deleted text begin (3) understanding and support of the needs of families and children with differences in ability; deleted text end

deleted text begin (4) developing skills to help children develop unbiased attitudes about cultural differences and differences in ability; deleted text end

deleted text begin (5) developing skills in culturally appropriate caregiving; and deleted text end

deleted text begin (6) developing skills in appropriate caregiving for children of different abilities. deleted text end

deleted text begin (b) Curriculum for cultural dynamics and disability training shall be approved by the commissioner. deleted text end

deleted text begin (c) The commissioner shall amend current rules relating to the training of the licensed child care center staff to require cultural dynamics training. Timelines established in the rule amendments for complying with the cultural dynamics training requirements must be based on the commissioner's determination that curriculum materials and trainers are available statewide. deleted text end

deleted text begin (d) For programs caring for children with special needs, the license holder shall ensure that any additional staff training required by the child's individual child care program plan required under Minnesota Rules, part 9503.0065, subpart 3, is provided. deleted text end

deleted text begin Subd. 9. deleted text end

deleted text begin Ongoing health and safety training. deleted text end

deleted text begin A staff person's orientation training on maintaining health and safety and handling emergencies and accidents, as required in subdivision 1, must be repeated at least once each calendar year by each staff person. The completion of the annual training must be documented in the staff person's personnel record. deleted text end

new text begin Subd. 10. new text end

new text begin Documentation. new text end

new text begin All training must be documented and maintained on site in each personnel record. In addition to any requirements for each training provided in this section, documentation for each staff person must include the staff person's first date of direct contact and first date of unsupervised contact with a child in care. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 52.

Minnesota Statutes 2018, section 245A.41, is amended to read:

245A.41 CHILD CARE CENTER HEALTH AND SAFETY REQUIREMENTS.

Subdivision 1.

Allergy prevention and response.

(a) Before admitting a child for care, the license holder must obtain documentation of any known allergy from the child's parent or legal guardian or the child's source of medical care. If a child has a known allergy, the license holder must maintain current information about the allergy in the child's record and develop an individual child care program plan as specified in Minnesota Rules, part 9503.0065, subpart 3. The individual child care program plan must include but not be limited to a description of the allergy, specific triggers, avoidance techniques, symptoms of an allergic reaction, and procedures for responding to an allergic reaction, including medication, dosages, and a doctor's contact information.

(b) The license holder must ensure that each staff person who is responsible for carrying out the individual child care program plan review and follow the plan. Documentation of a staff person's review must be kept on site.

(c) At least deleted text begin annuallydeleted text end new text begin once each calendar yearnew text end or following any changes made to allergy-related information in the child's record, the license holder must update the child's individual child care program plan and inform each staff person who is responsible for carrying out the individual child care program plan of the change. The license holder must keep on site documentation that a staff person was informed of a change.

(d) A child's allergy information must be available at all times including on site, when on field trips, or during transportation. A child's food allergy information must be readily available to a staff person in the area where food is prepared and served to the child.

(e) The license holder must contact the child's parent or legal guardian as soon as possible in any instance of exposure or allergic reaction that requires medication or medical intervention. The license holder must call emergency medical services when epinephrine is administered to a child in the license holder's care.

Subd. 2.

Handling and disposal of bodily fluids.

The licensed child care center must comply with the following procedures for safely handling and disposing of bodily fluids:

(1) surfaces that come in contact with potentially infectious bodily fluids, including blood and vomit, must be cleaned and disinfected according to Minnesota Rules, part 9503.0005, subpart 11;

(2) blood-contaminated material must be disposed of in a plastic bag with a secure tie;

(3) sharp items used for a child with special care needs must be disposed of in a "sharps container." The sharps container must be stored out of reach of a child;

(4) the license holder must have the following bodily fluid disposal supplies in the center: disposable gloves, disposal bags, and eye protection; and

(5) the license holder must ensure that each staff person deleted text begin is trained ondeleted text end new text begin followsnew text end universal precautions to reduce the risk of spreading infectious disease. deleted text begin A staff person's completion of the training must be documented in the staff person's personnel record.deleted text end

Subd. 3.

Emergency preparedness.

(a) deleted text begin No later than September 30, 2017,deleted text end A licensed child care center must have a written emergency plan for emergencies that require evacuation, sheltering, or other protection of a child, such as fire, natural disaster, intruder, or other threatening situation that may pose a health or safety hazard to a child. The plan must be written on a form developed by the commissioner and must include:

(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;

(2) a designated relocation site and evacuation route;

(3) procedures for notifying a child's parent or legal guardian of the evacuation, relocation, shelter-in-place, or lockdown, including procedures for reunification with families;

(4) accommodations for a child with a disability or a chronic medical condition;

(5) procedures for storing a child's medically necessary medicine that facilitates easy removal during an evacuation or relocation;

(6) procedures for continuing operations in the period during and after a crisis; deleted text begin anddeleted text end

(7) procedures for communicating with local emergency management officials, law enforcement officials, or other appropriate state or local authoritiesnew text begin ; andnew text end

new text begin (8) accommodations for infants and toddlersnew text end .

(b) The license holder must train staff persons on the emergency plan at orientation, when changes are made to the plan, and at least once each calendar year. Training must be documented in each staff person's personnel file.

(c) The license holder must conduct drills according to the requirements in Minnesota Rules, part 9503.0110, subpart 3. The date and time of the drills must be documented.

(d) The license holder must review and update the emergency plan annually. Documentation of the annual emergency plan review shall be maintained in the program's administrative records.

(e) The license holder must include the emergency plan in the program's policies and procedures as specified under section 245A.04, subdivision 14. The license holder must provide a physical or electronic copy of the emergency plan to the child's parent or legal guardian upon enrollment.

(f) The relocation site and evacuation route must be posted in a visible place as part of the written procedures for emergencies and accidents in Minnesota Rules, part 9503.0140, subpart 21.

new text begin Subd. 4. new text end

new text begin Child passenger restraint requirements. new text end

new text begin A license holder must comply with all seat belt and child passenger restraint system requirements under section 169.685. new text end

new text begin Subd. 5. new text end

new text begin Telephone requirement in licensed child care centers. new text end

new text begin (a) A working telephone which is capable of making outgoing calls and receiving incoming calls must be located within the licensed child care center at all times. Staff must have access to a working telephone while providing care and supervision to children in care, even if the care occurs outside of the child care facility. A license holder may use a cellular telephone to meet the requirements of this subdivision. new text end

new text begin (b) If a cellular telephone is used to satisfy the requirements of this subdivision, the cellular telephone must be accessible to staff, be stored in a centrally located area when not in use, and be sufficiently charged for use at all times. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 53.

Minnesota Statutes 2018, section 245A.50, subdivision 1, is amended to read:

Subdivision 1.

Initial training.

(a) License holders, caregivers, and substitutes must comply with the training requirements in this section.

(b) Helpers who assist with care on a regular basis must complete six hours of training within one year after the date of initial employment.

(c) Training requirements established under this section that must be completed prior to initial licensure must be satisfied only by a newly licensed child care provider or by a child care provider who has not held an active child care license in Minnesota in the previous 12 months. A child care provider deleted text begin who relocates within the state ordeleted text end who voluntarily cancels a license or allows the license to lapse for a period of less than 12 months and who seeks reinstatement of the lapsed or canceled license within 12 months of the lapse or cancellation must satisfy the annual, ongoing training requirements, and is not required to satisfy the training requirements that must be completed prior to initial licensure.new text begin A child care provider who relocates within the state must (1) satisfy the annual, ongoing training requirements according to the schedules established in this section and (2) not be required to satisfy the training requirements under this section that the child care provider completed prior to initial licensure. If a licensed provider moves to a new county, the new county is prohibited from requiring the provider to complete any orientation class or training for new providers.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 54.

Minnesota Statutes 2018, section 245A.51, subdivision 3, is amended to read:

Subd. 3.

Emergency preparedness plan.

(a) deleted text begin No later than September 30, 2017,deleted text end A licensed family child care provider must have a written emergency preparedness plan for emergencies that require evacuation, sheltering, or other protection of children, such as fire, natural disaster, intruder, or other threatening situation that may pose a health or safety hazard to children. The plan must be written on a form developed by the commissioner and updated at least annually. The plan must include:

(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;

(2) a designated relocation site and evacuation route;

(3) procedures for notifying a child's parent or legal guardian of the evacuation, shelter-in-place, or lockdown, including procedures for reunification with families;

(4) accommodations for a child with a disability or a chronic medical condition;

(5) procedures for storing a child's medically necessary medicine that facilitate easy removal during an evacuation or relocation;

(6) procedures for continuing operations in the period during and after a crisis; deleted text begin anddeleted text end

(7) procedures for communicating with local emergency management officials, law enforcement officials, or other appropriate state or local authoritiesnew text begin ; and new text end

new text begin (8) accommodations for infants and toddlersnew text end .

(b) The license holder must train caregivers before the caregiver provides care and at least annually on the emergency preparedness plan and document completion of this training.

(c) The license holder must conduct drills according to the requirements in Minnesota Rules, part 9502.0435, subpart 8. The date and time of the drills must be documented.

(d) The license holder must have the emergency preparedness plan available for review deleted text begin and posted in a prominent location. The license holder must provide a physical or electronic copy of the plan to the child's parent or legal guardian upon enrollmentdeleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 55.

Minnesota Statutes 2018, section 245A.51, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Transporting children. new text end

new text begin A license holder must ensure compliance with all seat belt and child passenger restraint system requirements under section 169.685. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 56.

Minnesota Statutes 2018, section 245A.51, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Telephone requirement. new text end

new text begin Notwithstanding Minnesota Rules, part 9502.0435, subpart 8, item B, a license holder is not required to post a list of emergency numbers. A license holder may use a cellular telephone to meet the requirements of Minnesota Rules, part 9502.0435, subpart 8, if the cellular telephone is sufficiently charged for use at all times. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 57.

new text begin [245A.52] FAMILY CHILD CARE PHYSICAL SPACE REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Means of escape. new text end

new text begin (a)(1) At least one emergency escape route separate from the main exit from the space must be available in each room used for sleeping by anyone receiving licensed care, and (2) a basement used for child care. One means of escape must be a stairway or door leading to the floor of exit discharge. The other must be a door or window leading directly outside. A window used as an emergency escape route must be openable without special knowledge. new text end

new text begin (b) In homes with construction that began before May 2, 2016, the interior of the window leading directly outside must have a net clear opening area of not less than 4.5 square feet or 648 square inches and have minimum clear opening dimensions of 20 inches wide and 20 inches high. The opening must be no higher than 48 inches from the floor. The height to the window may be measured from a platform if a platform is located below the window. new text end

new text begin (c) In homes with construction that began on or after May 2, 2016, the interior of the window leading directly outside must have minimum clear opening dimensions of 20 inches wide and 24 inches high. The net clear opening dimensions shall be the result of normal operation of the opening. The opening must be no higher than 44 inches from the floor. new text end

new text begin (d) Additional requirements are dependent on the distance of the openings from the ground outside the window: (1) windows or other openings with a sill height not more than 44 inches above or below the finished ground level adjacent to the opening (grade-floor emergency escape and rescue openings) must have a minimum opening of five square feet; and (2) non-grade floor emergency escape and rescue openings must have a minimum opening of 5.7 square feet. new text end

new text begin Subd. 2. new text end

new text begin Door to attached garage. new text end

new text begin Notwithstanding Minnesota Rules, part 9502.0425, subpart 5, day care residences with an attached garage are not required to have a self-closing door to the residence. The door to the residence may be a steel insulated door if the door is at least 1-3/8 inches thick. new text end

new text begin Subd. 3. new text end

new text begin Heating and venting systems. new text end

new text begin Notwithstanding Minnesota Rules, part 9502.0425, subpart 7, items that can be ignited and support combustion, including but not limited to plastic, fabric, and wood products must not be located within 18 inches of a gas or fuel-oil heater or furnace. If a license holder produces manufacturer instructions listing a smaller distance, then the manufacturer instructions control the distance combustible items must be from gas, fuel-oil, or solid-fuel burning heaters or furnaces. new text end

new text begin Subd. 4. new text end

new text begin Fire extinguisher. new text end

new text begin A portable, operational, multipurpose, dry chemical fire extinguisher with a minimum 2 A 10 BC rating must be located in or near the kitchen and cooking areas of the residence at all times. The fire extinguisher must be serviced annually by a qualified inspector. All caregivers must know how to properly use the fire extinguisher. new text end

new text begin Subd. 5. new text end

new text begin Carbon monoxide and smoke alarms. new text end

new text begin (a) All homes must have an approved and operational carbon monoxide alarm installed within ten feet of each room used for sleeping children in care. new text end

new text begin (b) Smoke alarms that have been listed by the Underwriter Laboratory must be properly installed and maintained on all levels including basements, but not including crawl spaces and uninhabitable attics, and in hallways outside rooms used for sleeping children in care. new text end

new text begin (c) In homes with construction that began on or after May 2, 2016, smoke alarms must be installed and maintained in each room used for sleeping children in care. new text end

new text begin Subd. 6. new text end

new text begin Updates. new text end

new text begin After readoption of the Minnesota State Fire Code, the fire marshal must notify the commissioner of any changes that conflict with this section and Minnesota Rules, chapter 9502. The state fire marshal must identify necessary statutory changes to align statutes with the revised code. The commissioner must recommend updates to sections of chapter 245A that are derived from the Minnesota State Fire Code in the legislative session following readoption of the code. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 58.

new text begin [245A.53] SUBSTITUTE CAREGIVERS AND REPLACEMENTS IN FAMILY CHILD CARE. new text end

new text begin Subdivision 1. new text end

new text begin Total hours allowed. new text end

new text begin Notwithstanding Minnesota Rules, part 9502.0365, subpart 5, the use of a substitute caregiver in a licensed family child care program must be limited to a cumulative total of not more than 500 hours annually. The license holder must document the name, dates, and number of hours of the substitute who provided care. new text end

new text begin Subd. 2. new text end

new text begin Emergency replacement supervision. new text end

new text begin (a) A license holder may allow an adult who has not completed the training requirements under this chapter or the background study requirements under chapter 245C to supervise children in a family child care program in an emergency. For purposes of this subdivision, an emergency is a situation in which: new text end

new text begin (1) the license holder has begun operating the family child care program for the day and for reasons beyond the license holder's control, including, but not limited to a serious illness or injury, accident, or situation requiring the license holder's immediate attention, the license holder needs to leave the licensed space and close the program for the day; and new text end

new text begin (2) the parents or guardians of the children attending the program are contacted to pick up their children as soon as is practicable. new text end

new text begin (b) The license holder must make reasonable efforts to minimize the time the emergency replacement has unsupervised contact with the children in care, not to exceed 24 hours per emergency incident. new text end

new text begin (c) The license holder shall not knowingly use a person as an emergency replacement who has committed an action or has been convicted of a crime that would cause the person to be disqualified from providing care to children, if a background study was conducted under chapter 245C. new text end

new text begin (d) To the extent practicable, the license holder must attempt to arrange for emergency care by a substitute caregiver before using an emergency replacement. new text end

new text begin (e) To the extent practicable, the license holder must notify the county licensing agency within seven days that an emergency replacement was used, and specify the circumstances that led to the use of the emergency replacement. The county licensing agency must notify the commissioner within three business days after receiving the license holder's notice that an emergency replacement was used, and specify the circumstances that led to the use of the emergency replacement. new text end

new text begin (f) Notwithstanding the requirements in Minnesota Rules, part 9502.0405, a license holder is not required to provide the names of persons who may be used as replacements in emergencies to parents or the county licensing agency. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 59.

Minnesota Statutes 2018, section 245A.66, subdivision 2, is amended to read:

Subd. 2.

Child care centers; risk reduction plan.

(a) Child care centers licensed under this chapter and Minnesota Rules, chapter 9503, must develop a risk reduction plan that identifies the general risks to children served by the child care center. The license holder must establish procedures to minimize identified risks, train staff on the procedures, and annually review the procedures.

(b) The risk reduction plan must include an assessment of risk to children the center serves or intends to serve and identify specific risks based on the outcome of the assessment. The assessment of risk must be based on the following:

(1) an assessment of the risks presented by the physical plant where the licensed services are provided, including an evaluation of the following factors: the condition and design of the facility and its outdoor space, bathrooms, storage areas, and accessibility of medications and cleaning products that are harmful to children when children are not supervised and the existence of areas that are difficult to supervise; and

(2) an assessment of the risks presented by the environment for each facility and for each site, including an evaluation of the following factors: the type of grounds and terrain surrounding the building and the proximity to hazards, busy roads, and publicly accessed businesses.

(c) The risk reduction plan must include a statement of measures that will be taken to minimize the risk of harm presented to children for each risk identified in the assessment required under paragraph (b) related to the physical plant and environment. At a minimum, the stated measures must include the development and implementation of specific policies and procedures or reference to existing policies and procedures that minimize the risks identified.

(d) In addition to any program-specific risks identified in paragraph (b), the plan must include development and implementation of specific policies and procedures or refer to existing policies and procedures that minimize the risk of harm or injury to children, including:

(1) closing children's fingers in doors, including cabinet doors;

(2) leaving children in the community without supervision;

(3) children leaving the facility without supervision;

(4) caregiver dislocation of children's elbows;

(5) burns from hot food or beverages, whether served to children or being consumed by caregivers, and the devices used to warm food and beverages;

(6) injuries from equipment, such as scissors and glue guns;

(7) sunburn;

(8) feeding children foods to which they are allergic;

(9) children falling from changing tables; and

(10) children accessing dangerous items or chemicals or coming into contact with residue from harmful cleaning products.

(e) The plan shall prohibit the accessibility of hazardous items to children.

(f) The plan must include specific policies and procedures to ensure adequate supervision of children at all times as defined under section 245A.02, subdivision 18, with particular emphasis on:

(1) times when children are transitioned from one area within the facility to another;

(2) nap-time supervision, including infant crib rooms as specified under section 245A.02, subdivision 18, which requires that when an infant is placed in a crib 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 components;

(3) child drop-off and pick-up times;

(4) supervision during outdoor play and on community activities, including but not limited to field trips and neighborhood walks; deleted text begin anddeleted text end

(5) supervision of children in hallwaysdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (6) supervision of school-age children when using the restroom and visiting the child's personal storage space. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 60.

Minnesota Statutes 2018, section 245A.66, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Orientation todeleted text end new text begin Yearly review ofnew text end risk reduction plan deleted text begin and annual review of plandeleted text end .

deleted text begin (a) The license holder shall ensure that all mandated reporters, as defined in section 626.556, subdivision 3, who are under the control of the license holder, receive an orientation to the risk reduction plan prior to first providing unsupervised direct contact services, as defined in section 245C.02, subdivision 11, to children, not to exceed 14 days from the first supervised direct contact, and annually thereafter. The license holder must document the orientation to the risk reduction plan in the mandated reporter's personnel records. deleted text end

deleted text begin (b)deleted text end The license holder must review the risk reduction plan deleted text begin annuallydeleted text end new text begin each calendar yearnew text end and document the deleted text begin annualdeleted text end review. When conducting the review, the license holder must consider incidents that have occurred in the center since the last review, including:

(1) the assessment factors in the plan;

(2) the internal reviews conducted under this section, if any;

(3) substantiated maltreatment findings, if any; and

(4) incidents that caused injury or harm to a child, if any, that occurred since the last review.

Following any change to the risk reduction plan, the license holder must inform deleted text begin mandated reportersdeleted text end new text begin staff personsnew text end , under the control of the license holder, of the changes in the risk reduction plan, and document that the deleted text begin mandated reportersdeleted text end new text begin staffnew text end were informed of the changes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 61.

Minnesota Statutes 2018, section 245C.02, is amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin License-exempt child care center certification holder. new text end

new text begin "License-exempt child care center certification holder" has the meaning given for "certification holder" in section 245H.01, subdivision 4. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 62.

Minnesota Statutes 2018, section 245C.02, subdivision 6a, is amended to read:

Subd. 6a.

Child care background study subject.

new text begin (a) new text end "Child care background study subject" means an individual who is affiliated with a licensed child care center, certified license exempt child care center, licensed family child care program, or legal nonlicensed child care provider authorized under chapter 119B, andnew text begin who isnew text end :

(1) deleted text begin who isdeleted text end employed by a child care provider for compensation;

(2) deleted text begin whose activities involvedeleted text end new text begin assisting innew text end the deleted text begin supervisiondeleted text end new text begin carenew text end of a child for a child care provider; deleted text begin ordeleted text end

deleted text begin (3) who is required to have a background study under section 245C.03, subdivision 1. deleted text end

new text begin (3) a person applying for licensure, certification, or enrollment; new text end

new text begin (4) a controlling individual as defined in section 245A.02, subdivision 5a; new text end

new text begin (5) an individual 13 years of age or older who lives in the household where the licensed program will be provided and who is not receiving licensed services from the program; new text end

new text begin (6) an individual ten to 12 years of age who lives in the household where the licensed services will be provided when the commissioner has reasonable cause as defined in section 245C.02, subdivision 15; new text end

new text begin (7) an individual who, without providing direct contact services at a licensed program, certified program, or program authorized under chapter 119B, may have unsupervised access to a child receiving services from a program when the commissioner has reasonable cause as defined in section 245C.02, subdivision 15; or new text end

new text begin (8) a volunteer, contractor, prospective employee, or other individual who has unsupervised physical access to a child served by a program and who is not under supervision by an individual listed in clause (1) or (5), regardless of whether the individual provides program services. new text end

new text begin (b) Notwithstanding paragraph (a), an individual who is providing services that are not part of the child care program is not required to have a background study if: new text end

new text begin (1) the child receiving services is signed out of the child care program for the duration that the services are provided; new text end

new text begin (2) the licensed child care center, certified license exempt child care center, licensed family child care program, or legal nonlicensed child care provider authorized under chapter 119B has obtained advanced written permission from the parent authorizing the child to receive the services, which is maintained in the child's record; new text end

new text begin (3) the licensed child care center, certified license exempt child care center, licensed family child care program, or legal nonlicensed child care provider authorized under chapter 119B maintains documentation on-site that identifies the individual service provider and the services being provided; and new text end

new text begin (4) the licensed child care center, certified license exempt child care center, licensed family child care program, or legal nonlicensed child care provider authorized under chapter 119B ensures that the service provider does not have unsupervised access to a child not receiving the provider's services. new text end

Sec. 63.

Minnesota Statutes 2018, section 245C.02, is amended by adding a subdivision to read:

new text begin Subd. 6b. new text end

new text begin Children's residential facility. new text end

new text begin "Children's residential facility" means a children's residential facility licensed by the commissioner of corrections or the commissioner of human services under Minnesota Rules, chapter 2960. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019, for background studies initiated on or after that date. new text end

Sec. 64.

Minnesota Statutes 2018, section 245C.02, is amended by adding a subdivision to read:

new text begin Subd. 20. new text end

new text begin Substance use disorder treatment field. new text end

new text begin "Substance use disorder treatment field" means a program exclusively serving individuals 18 years of age and older and that is required to be: new text end

new text begin (1) licensed under chapter 245G; or new text end

new text begin (2) registered under section 157.17 as a board and lodge establishment that predominantly serves individuals being treated for or recovering from a substance use disorder. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 65.

Minnesota Statutes 2018, section 245C.03, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs.

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

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

(2) an individual age 13 and over living in the household where the licensed program will be provided who is not receiving licensed services from the program;

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

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

(5) an individual age ten to 12 living in the household where the licensed services will be provided when the commissioner has reasonable cause as defined in section 245C.02, subdivision 15;

(6) an individual who, without providing direct contact services at a licensed program, may have unsupervised access to children or vulnerable adults receiving services from a program, when the commissioner has reasonable cause as defined in section 245C.02, subdivision 15;

(7) all controlling individuals as defined in section 245A.02, subdivision 5a; deleted text begin anddeleted text end

(8) new text begin notwithstanding the other requirements in this subdivision, new text end child care background study subjects as defined in section 245C.02, subdivision 6adeleted text begin .deleted text end new text begin ; andnew text end

new text begin (9) notwithstanding clause (3), for children's residential facilities, any adult working in the facility, whether or not the individual will have direct contact with persons served by the facility. new text end

deleted text begin (b) Paragraph (a), clauses (2), (5), and (6), apply to legal nonlicensed child care and certified license-exempt child care programs. deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end For child foster care when the license holder resides in the home where foster care services are provided, a short-term substitute caregiver providing direct contact services for a child for less than 72 hours of continuous care is not required to receive a background study under this chapter.

Sec. 66.

Minnesota Statutes 2018, section 245C.05, subdivision 4, is amended to read:

Subd. 4.

Electronic transmission.

(a) For background studies conducted by the Department of Human Services, the commissioner shall implement a secure system for the electronic transmission of:

(1) background study information to the commissioner;

(2) background study results to the license holder;

(3) background study results to county and private agencies for background studies conducted by the commissioner for child foster care; and

(4) background study results to county agencies for background studies conducted by the commissioner for adult foster care and family adult day services and, upon implementation of NETStudy 2.0, family child care and legal nonlicensed child care authorized under chapter 119B.

(b) Unless the commissioner has granted a hardship variance under paragraph (c), a license holder or an applicant must use the electronic transmission system known as NETStudy or NETStudy 2.0 to submit all requests for background studies to the commissioner as required by this chapter.

(c) A license holder or applicant whose program is located in an area in which high-speed Internet is inaccessible may request the commissioner to grant a variance to the electronic transmission requirement.

new text begin (d) Section 245C.08, subdivision 3, paragraph (c), applies to results transmitted under this subdivision. new text end

Sec. 67.

Minnesota Statutes 2018, section 245C.05, subdivision 5, is amended to read:

Subd. 5.

Fingerprints and photograph.

(a) Notwithstanding paragraph (b), for background studies conducted by the commissioner for child foster care,new text begin children's residential facilities,new text end adoptions, or a transfer of permanent legal and physical custody of a child, the subject of the background study, who is 18 years of age or older, shall provide the commissioner with a set of classifiable fingerprints obtained from an authorized agency for a national criminal history record check.

(b) For background studies initiated on or after the implementation of NETStudy 2.0, except as provided under subdivision 5a, every subject of a background study must provide the commissioner with a set of the background study subject's classifiable fingerprints and photograph. The photograph and fingerprints must be recorded at the same time by the commissioner's authorized fingerprint collection vendor and sent to the commissioner through the commissioner's secure data system described in section 245C.32, subdivision 1a, paragraph (b).

(c) The fingerprints shall be submitted by the commissioner to the Bureau of Criminal Apprehension and, when specifically required by law, submitted to the Federal Bureau of Investigation for a national criminal history record check.

(d) The fingerprints must not be retained by the Department of Public Safety, Bureau of Criminal Apprehension, or the commissioner. The Federal Bureau of Investigation will deleted text begin only retain fingerprints of subjects with a criminal historydeleted text end new text begin not retain background study subjects' fingerprintsnew text end .

(e) The commissioner's authorized fingerprint collection vendor shall, for purposes of verifying the identity of the background study subject, be able to view the identifying information entered into NETStudy 2.0 by the entity that initiated the background study, but shall not retain the subject's fingerprints, photograph, or information from NETStudy 2.0. The authorized fingerprint collection vendor shall retain no more than the name and date and time the subject's fingerprints were recorded and sent, only as necessary for auditing and billing activities.

(f) For any background study conducted under this chapter, the subject shall provide the commissioner with a set of classifiable fingerprints when the commissioner has reasonable cause to require a national criminal history record check as defined in section 245C.02, subdivision 15a.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective July 1, 2019, for background studies initiated on or after that date. new text end

Sec. 68.

Minnesota Statutes 2018, section 245C.05, subdivision 5a, is amended to read:

Subd. 5a.

Background study requirements for minors.

(a) A background study completed under this chapter on a subject who is required to be studied under section 245C.03, subdivision 1, and is 17 years of age or younger shall be completed by the commissioner for:

(1) a legal nonlicensed child care provider authorized under chapter 119B;

(2) a licensed family child care program; or

(3) a licensed foster care home.

(b) The subject shall submit to the commissioner only the information under subdivision 1, paragraph (a).

(c) A subject who is 17 years of age or younger is required to submit fingerprints and a photograph, and the commissioner shall conduct a national criminal history record check, if:

(1) the commissioner has reasonable cause to require a national criminal history record check defined in section 245C.02, subdivision 15a; or

(2) under paragraph (a), clauses (1) and (2), the subject is employed by the provider or supervises children served by the program.

new text begin (d) A subject who is 17 years of age or younger is required to submit non-fingerprint-based data according to section 245C.08, subdivision 1, paragraph (a), clause (6), item (iii), and the commissioner shall conduct the check if: new text end

new text begin (1) the commissioner has reasonable cause to require a national criminal history record check defined in section 245C.02, subdivision 15a; or new text end

new text begin (2) the subject is employed by the provider or supervises children served by the program under paragraph (a), clauses (1) and (2). new text end

Sec. 69.

Minnesota Statutes 2018, section 245C.08, subdivision 1, is amended to read:

Subdivision 1.

Background studies conducted by Department of Human Services.

(a) For a background study conducted by the Department of Human Services, the commissioner shall review:

(1) 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 (j);

(2) the commissioner's records relating to the maltreatment of minors in licensed programs, and from findings of maltreatment of minors as indicated through the social service information system;

(3) information from juvenile courts as required in subdivision 4 for individuals listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;

(4) information from the Bureau of Criminal Apprehension, including information regarding a background study subject's registration in Minnesota as a predatory offender under section 243.166;

(5) except as provided in clause (6), information received as a result of submission of fingerprints for a national criminal history record check, as defined in section 245C.02, subdivision 13c, when the commissioner has reasonable cause for a national criminal history record check as defined under section 245C.02, subdivision 15a, or as required under section 144.057, subdivision 1, clause (2);

(6) for a background study related to a child foster care application for licensure,new text begin children's residential facilities,new text end a transfer of permanent legal and physical custody of a child under sections 260C.503 to 260C.515, or adoptions, and for a background study required for family child care, certified license-exempt child care, child care centers, and legal nonlicensed child care authorized under chapter 119B, the commissioner shall also review:

(i) information from the child abuse and neglect registry for any state in which the background study subject has resided for the past five years; deleted text begin anddeleted text end

(ii) when the background study subject is 18 years of age or older, or a minor under section 245C.05, subdivision 5a, paragraph (c), information received following submission of fingerprints for a national criminal history record check; and

new text begin (iii) when the background study subject is 18 years of age or older or a minor under section 245C.05, subdivision 5a, paragraph (d), for licensed family child care, certified license-exempt child care, licensed child care centers, and legal nonlicensed child care authorized under chapter 119B, information obtained using non-fingerprint-based data including information from the criminal and sex offender registries for any state in which the background study subject resided for the past five years and information from the national crime information database and the national sex offender registry; and new text end

(7) for a background study required for family child care, certified license-exempt child care centers, licensed child care centers, and legal nonlicensed child care authorized under chapter 119B, the background study shall also include, to the extent practicable, a name and date-of-birth search of the National Sex Offender Public website.

(b) Notwithstanding expungement by a court, the commissioner may consider information obtained under paragraph (a), clauses (3) and (4), unless the commissioner received notice of the petition for expungement and the court order for expungement is directed specifically to the commissioner.

(c) The commissioner shall also review criminal case information received according to section 245C.04, subdivision 4a, from the Minnesota court information system that relates to individuals who have already been studied under this chapter and who remain affiliated with the agency that initiated the background study.

(d) When the commissioner has reasonable cause to believe that the identity of a background study subject is uncertain, the commissioner may require the subject to provide a set of classifiable fingerprints for purposes of completing a fingerprint-based record check with the Bureau of Criminal Apprehension. Fingerprints collected under this paragraph shall not be saved by the commissioner after they have been used to verify the identity of the background study subject against the particular criminal record in question.

(e) The commissioner may inform the entity that initiated a background study under NETStudy 2.0 of the status of processing of the subject's fingerprints.

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective July 1, 2019, for background studies initiated on or after that date. new text end

Sec. 70.

Minnesota Statutes 2018, section 245C.08, subdivision 3, is amended to read:

Subd. 3.

Arrest and investigative information.

(a) For any background study completed under this section, if the commissioner has reasonable cause to believe the information is pertinent to the disqualification of an individual, the commissioner also may review arrest and investigative information from:

(1) the Bureau of Criminal Apprehension;

(2) the deleted text begin commissionerdeleted text end new text begin commissionersnew text end of healthnew text begin and human servicesnew text end ;

(3) a county attorney;

(4) a county sheriff;

(5) a county agency;

(6) a local chief of police;

(7) other states;

(8) the courts;

(9) the Federal Bureau of Investigation;

(10) the National Criminal Records Repository; and

(11) criminal records from other states.

(b) new text begin Except when specifically required by law, new text end 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 deleted text begin license holder whodeleted text end new text begin entity thatnew text end initiated the background study.

new text begin (c) If the commissioner conducts a national criminal history record check when required by law and uses the information from the national criminal history record check to make a disqualification determination, the data obtained is private data and cannot be shared with county agencies, private agencies, or prospective employers of the background study subject. new text end

new text begin (d) If the commissioner conducts a national criminal history record check when required by law and uses the information from the national criminal history record check to make a disqualification determination, the license holder or entity that submitted the study is not required to obtain a copy of the background study subject's disqualification letter under section 245C.17, subdivision 3. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for background studies requested on or after October 1, 2019. new text end

Sec. 71.

Minnesota Statutes 2018, section 245C.10, is amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Children's residential facilities. new text end

new text begin The commissioner shall recover the cost of background studies initiated by a licensed children's residential facility through a fee of no more than $51 per study. Fees collected under this subdivision are appropriated to the commissioner for purposes of conducting background studies. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019, for background studies initiated on or after that date. new text end

Sec. 72.

Minnesota Statutes 2018, section 245C.13, subdivision 2, is amended to read:

Subd. 2.

Direct contact pending completion of background study.

The subject of a background study may not perform any activity requiring a background study under paragraph deleted text begin (b)deleted text end new text begin (c)new text end until the commissioner has issued one of the notices under paragraph (a).

(a) Notices from the commissioner required prior to activity under paragraph (b) include:

(1) a notice of the study results under section 245C.17 stating that:

(i) the individual is not disqualified; or

(ii) more time is needed to complete the study but the individual is not required to be removed from direct contact or access to people receiving services prior to completion of the study as provided under section 245C.17, subdivision 1, paragraph (b) or (c). The notice that more time is needed to complete the study must also indicate whether the individual is required to be under continuous direct supervision prior to completion of the background study;

(2) a notice that a disqualification has been set aside under section 245C.23; or

(3) a notice that a variance has been granted related to the individual under section 245C.30.

(b)new text begin For a background study affiliated with a licensed child care center or certified license exempt child care center, the notice sent under paragraph (a), clause (1), item (ii), must require the individual to be under continuous direct supervision prior to completion of the background study except as permitted in subdivision 3.new text end

new text begin (c)new text end Activities prohibited prior to receipt of notice under paragraph (a) include:

(1) being issued a license;

(2) living in the household where the licensed program will be provided;

(3) providing direct contact services to persons served by a program unless the subject is under continuous direct supervision; deleted text begin ordeleted text end

(4) having access to persons receiving services if the background study was completed under section 144.057, subdivision 1, or 245C.03, subdivision 1, paragraph (a), clause (2), (5), or (6), unless the subject is under continuous direct supervisiondeleted text begin .deleted text end new text begin ; ornew text end

new text begin (5) for licensed child care center and certified license exempt child care centers, providing direct contact services to persons served by the program. new text end

Sec. 73.

Minnesota Statutes 2018, section 245C.13, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Other state information. new text end

new text begin If the commissioner has not received criminal, sex offender, or maltreatment information from another state that is required to be reviewed under this chapter within ten days of requesting the information, and the lack of the information is the only reason that a notice is issued under subdivision 2, paragraph (a), clause (1), item (ii), the commissioner may issue a notice under subdivision 2, paragraph (a), clause (1), item (i). The commissioner may take action on information received from other states after issuing a notice under subdivision 2, paragraph (a), clause (1), item (ii). new text end

Sec. 74.

Minnesota Statutes 2018, section 245C.22, subdivision 4, is amended to read:

Subd. 4.

Risk of harm; set aside.

(a) The commissioner may set aside the disqualification if the commissioner finds that the individual has submitted sufficient information to demonstrate that the individual does not pose a risk of harm to any person served by the applicant, license holder, or other entities as provided in this chapter.

(b) In determining whether the individual has met the burden of proof by demonstrating the individual does not pose a risk of harm, the commissioner shall consider:

(1) the nature, severity, and consequences of the event or events that led to the disqualification;

(2) whether there is more than one disqualifying event;

(3) the age and vulnerability of the victim at the time of the event;

(4) the harm suffered by the victim;

(5) vulnerability of persons served by the program;

(6) the similarity between the victim and persons served by the program;

(7) the time elapsed without a repeat of the same or similar event;

(8) documentation of successful completion by the individual studied of training or rehabilitation pertinent to the event; and

(9) any other information relevant to reconsideration.

(c) If the individual requested reconsideration on the basis that the information relied upon to disqualify the individual was incorrect or inaccurate and the commissioner determines that the information relied upon to disqualify the individual is correct, the commissioner must also determine if the individual poses a risk of harm to persons receiving services in accordance with paragraph (b).

new text begin (d) For an individual seeking employment in the substance use disorder treatment field, the commissioner shall set aside the disqualification if the following criteria are met: new text end

new text begin (1) the individual is not disqualified for a crime of violence as listed under section 624.712, subdivision 5, except for the following crimes: crimes listed under section 152.021, subdivision 2 or 2a; 152.022, subdivision 2; 152.023, subdivision 2; 152.024; or 152.025; new text end

new text begin (2) the individual is not disqualified under section 245C.15, subdivision 1; new text end

new text begin (3) the individual is not disqualified under section 245C.15, subdivision 4, paragraph (b); new text end

new text begin (4) the individual provided documentation of successful completion of treatment, at least one year prior to the date of the request for reconsideration, at a program licensed under chapter 245G, and has had no disqualifying crimes or conduct under section 245C.15 after the successful completion of treatment; new text end

new text begin (5) the individual provided documentation demonstrating abstinence from controlled substances, as defined in section 152.01, subdivision 4, for the period of one year prior to the date of the request for reconsideration; and new text end

new text begin (6) the individual is seeking employment in the substance use disorder treatment field. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 75.

Minnesota Statutes 2018, section 245C.22, subdivision 5, is amended to read:

Subd. 5.

Scope of set-aside.

(a) If the commissioner sets aside a disqualification under this section, the disqualified individual remains disqualified, but may hold a license and have direct contact with or access to persons receiving services. Except as provided in paragraph (b), the commissioner's set-aside of a disqualification is limited solely to the licensed program, applicant, or agency specified in the set aside notice under section 245C.23. For personal care provider organizations, the commissioner's set-aside may further be limited to a specific individual who is receiving services. For new background studies required under section 245C.04, subdivision 1, paragraph (h), if an individual's disqualification was previously set aside for the license holder's program and the new background study results in no new information that indicates the individual may pose a risk of harm to persons receiving services from the license holder, the previous set-aside shall remain in effect.

(b) If the commissioner has previously set aside an individual's disqualification for one or more programs or agencies, and the individual is the subject of a subsequent background study for a different program or agency, the commissioner shall determine whether the disqualification is set aside for the program or agency that initiated the subsequent background study. A notice of a set-aside under paragraph (c) shall be issued within 15 working days if all of the following criteria are met:

(1) the subsequent background study was initiated in connection with a program licensed or regulated under the same provisions of law and rule for at least one program for which the individual's disqualification was previously set aside by the commissioner;

(2) the individual is not disqualified for an offense specified in section 245C.15, subdivision 1 or 2;

(3) the commissioner has received no new information to indicate that the individual may pose a risk of harm to any person served by the program; and

(4) the previous set-aside was not limited to a specific person receiving services.

new text begin (c) Notwithstanding paragraph (b), clause (2), for an individual who is employed in the substance use disorder field, if the commissioner has previously set aside an individual's disqualification for one or more programs or agencies in the substance use disorder treatment field, and the individual is the subject of a subsequent background study for a different program or agency in the substance use disorder treatment field, the commissioner shall set aside the disqualification for the program or agency in the substance use disorder treatment field that initiated the subsequent background study when the criteria under paragraph (b), clauses (1), (3), and (4), are met and the individual is not disqualified for an offense specified in section 254C.15, subdivision 1. A notice of a set-aside under paragraph (d) shall be issued within 15 working days. new text end

deleted text begin (c)deleted text end new text begin (d)new text end When a disqualification is set aside under paragraph (b), the notice of background study results issued under section 245C.17, in addition to the requirements under section 245C.17, shall state that the disqualification is set aside for the program or agency that initiated the subsequent background study. The notice must inform the individual that the individual may request reconsideration of the disqualification under section 245C.21 on the basis that the information used to disqualify the individual is incorrect.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 76.

Minnesota Statutes 2018, section 245C.24, subdivision 1, is amended to read:

Subdivision 1.

Minimum disqualification periods.

The disqualification periods under subdivisions 3 deleted text begin and 4deleted text end new text begin to 5new text end are the minimum applicable disqualification periods. The commissioner may determine that an individual should continue to be disqualified from licensure because the individual continues to pose a risk of harm to persons served by that individual, even after the minimum disqualification period has passed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2020. new text end

Sec. 77.

Minnesota Statutes 2018, section 245C.24, subdivision 2, is amended to read:

Subd. 2.

Permanent bar to set aside a disqualification.

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

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

new text begin (c) If an individual who requires a background study for nonemergency medical transportation services under section 245C.03, subdivision 12, was disqualified for a crime or conduct listed under section 245C.15, subdivision 1, and if more than 40 years have passed since the discharge of the sentence imposed, the commissioner may consider granting a set aside pursuant to section 245C.22. A request for reconsideration evaluated under this paragraph must include a letter of recommendation from the employer. This paragraph does not apply to a person disqualified based on a violation of sections 243.166; 609.185 to 609.205; 609.25; 609.342 to 609.3453; 609.352; 617.23, subdivision 2, clause (1), or 3, clause (1); 617.246; or 617.247. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 78.

Minnesota Statutes 2018, section 245C.24, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Five-year bar to set aside disqualification; children's residential facilities. new text end

new text begin The commissioner shall not set aside the disqualification of an individual in connection with a license for a children's residential facility who was convicted of a felony within the past five years for: (1) physical assault or battery; or (2) a drug-related offense. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for background studies initiated on or after July 1, 2019. new text end

Sec. 79.

Minnesota Statutes 2018, section 245C.30, subdivision 1, is amended to read:

Subdivision 1.

License holder new text begin and license-exempt child care center certification holder new text end variance.

(a) Except for any disqualification under section 245C.15, subdivision 1, when the commissioner has not set aside a background study subject's disqualification, and there are conditions under which the disqualified individual may provide direct contact services or have access to people receiving services that minimize the risk of harm to people receiving services, the commissioner may grant a time-limited variance to a license holdernew text begin or license-exempt child care center certification holdernew text end .

(b) The variance shall state the reason for the disqualification, the services that may be provided by the disqualified individual, and the conditions with which the license holdernew text begin , license-exempt child care center certification holder,new text end or applicant must comply for the variance to remain in effect.

(c) Except for programs licensed to provide family child care, 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, the variance must be requested by the license holdernew text begin or license-exempt child care center certification holdernew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 80.

Minnesota Statutes 2018, section 245C.30, subdivision 2, is amended to read:

Subd. 2.

Disclosure of reason for disqualification.

(a) The commissioner may not grant a variance for a disqualified individual unless the applicantnew text begin , license-exempt child care center certification holder,new text end or license holder requests the variance and the disqualified individual provides written consent for the commissioner to disclose to the applicantnew text begin , license-exempt child care center certification holder,new text end or license holder the reason for the disqualification.

(b) This subdivision does not apply to programs licensed to provide family child 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. When the commissioner grants a variance for a disqualified individual in connection with a license to provide the services specified in this paragraph, the disqualified individual's consent is not required to disclose the reason for the disqualification to the license holder in the variance issued under subdivision 1, provided that the commissioner may not disclose the reason for the disqualification if the disqualification is based on a felony-level conviction for a drug-related offense within the past five years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 81.

Minnesota Statutes 2018, section 245C.30, subdivision 3, is amended to read:

Subd. 3.

Consequences for failing to comply with conditions of variance.

When a license holdernew text begin or license-exempt child care center certification holdernew text end permits a disqualified individual to provide any services for which the subject is disqualified without complying with the conditions of the variance, the commissioner may terminate the variance effective immediately and subject the license holder to a licensing action under sections 245A.06 and 245A.07new text begin or a license-exempt child care center certification holder to an action under sections 245H.06 and 245H.07new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 82.

Minnesota Statutes 2018, section 245E.02, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Provider definitions. new text end

new text begin For the purposes of this section, "provider" includes: new text end

new text begin (1) individuals or entities meeting the definition of provider in section 245E.01, subdivision 12; and new text end

new text begin (2) owners and controlling individuals of entities identified in clause (1). new text end

Sec. 83.

Minnesota Statutes 2018, section 245G.11, subdivision 7, is amended to read:

Subd. 7.

Care coordination provider qualifications.

(a) Care coordination must be provided by qualified staff. An individual is qualified to provide care coordination if the individual:

(1) is skilled in the process of identifying and assessing a wide range of client needs;

(2) is knowledgeable about local community resources and how to use those resources for the benefit of the client;

(3) has successfully completed 30 hours of classroom instruction on care coordination for an individual with substance use disorder;

(4) has either:

(i) a bachelor's degree in one of the behavioral sciences or related fields; or

(ii) current certification as an alcohol and drug counselor, level I, by the Upper Midwest Indian Council on Addictive Disorders; and

(5) has at least 2,000 hours of supervised experience working with individuals with substance use disorder.

(b) A care coordinator must receive at least one hour of supervision regarding individual service delivery from an alcohol and drug counselor deleted text begin weeklydeleted text end new text begin , or a mental health professional who has substance use treatment and assessments within the scope of their practice, on a monthly basisnew text end .

Sec. 84.

Minnesota Statutes 2018, section 245G.19, subdivision 4, is amended to read:

Subd. 4.

Additional licensing requirements.

During the times the license holder is responsible for the supervision of a child, the license holder must meet the following standards:

(1) child and adult ratios in Minnesota Rules, part 9502.0367;

(2) day care training in section 245A.50;

(3) behavior guidance in Minnesota Rules, part 9502.0395;

(4) activities and equipment in Minnesota Rules, part 9502.0415;

(5) physical environment in Minnesota Rules, part 9502.0425; deleted text begin anddeleted text end

(6) new text begin physical space requirements in section 245A.52; andnew text end

new text begin (7) new text end water, food, and nutrition in Minnesota Rules, part 9502.0445, unless the license holder has a license from the Department of Health.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 85.

Minnesota Statutes 2018, section 245H.01, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Substitute. new text end

new text begin "Substitute" means an adult who is temporarily filling a position as a staff person for less than 240 hours total in a calendar year due to the absence of a regularly employed staff person who provides direct contact services to a child. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 86.

Minnesota Statutes 2018, section 245H.01, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Staff person. new text end

new text begin "Staff person" means an employee of a certified center who provides direct contact services to children. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 87.

Minnesota Statutes 2018, section 245H.01, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Unsupervised volunteer. new text end

new text begin "Unsupervised volunteer" means an individual who: (1) assists in the care of a child in care; (2) is not under the continuous direct supervision of a staff person; and (3) is not employed by the certified center. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 88.

Minnesota Statutes 2018, section 245H.03, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Reconsideration of certification denial. new text end

new text begin (a) The applicant may request reconsideration of the denial by notifying the commissioner by certified mail or personal service. The request must be made in writing. If sent by certified mail, the request must be postmarked and sent to the commissioner within 20 calendar days after the applicant received the order. If a request is made by personal service, it must be received by the commissioner within 20 calendar days after the applicant received the order. The applicant may submit with the request for reconsideration a written argument or evidence in support of the request for reconsideration. new text end

new text begin (b) The commissioner's disposition of a request for reconsideration is final and not subject to appeal under chapter 14. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 89.

Minnesota Statutes 2018, section 245H.07, is amended to read:

245H.07 DECERTIFICATION.

new text begin Subdivision 1. new text end

new text begin Generally. new text end

(a) The commissioner may decertify a center if a certification holder:

(1) failed to comply with an applicable law or rule; deleted text begin ordeleted text end

(2) knowingly withheld relevant information from or gave false or misleading information to the commissioner in connection with an application for certification, in connection with the background study status of an individual, during an investigation, or regarding compliance with applicable laws or rulesdeleted text begin .deleted text end new text begin ; ornew text end

new text begin (3) has authorization to receive child care assistance payments revoked pursuant to chapter 119B. new text end

(b) When considering decertification, the commissioner shall consider the nature, chronicity, or severity of the violation of law or rule.

(c) When a center is decertified, the center is ineligible to receive a child care assistance paymentnew text begin under chapter 119Bnew text end .

new text begin Subd. 2. new text end

new text begin Reconsideration of decertification. new text end

new text begin (a) The certification holder may request reconsideration of the decertification by notifying the commissioner by certified mail or personal service. The request must be made in writing. If sent by certified mail, the request must be postmarked and sent to the commissioner within 20 calendar days after the certification holder received the order. If a request is made by personal service, it must be received by the commissioner within 20 calendar days after the certification holder received the order. With the request for reconsideration, the certification holder may submit a written argument or evidence in support of the request for reconsideration. new text end

new text begin (b) The commissioner's disposition of a request for reconsideration is final and not subject to appeal under chapter 14. new text end

new text begin Subd. 3. new text end

new text begin Decertification due to maltreatment. new text end

new text begin If the commissioner decertifies a center pursuant to subdivision 1, paragraph (a), clause (1), based on a determination that the center was responsible for maltreatment, and if the center requests reconsideration of the decertification according to subdivision 2, paragraph (a), and appeals the maltreatment determination under section 626.556, subdivision 10i, the final decertification determination is stayed until the commissioner issues a final decision regarding the maltreatment appeal. new text end

new text begin Subd. 4. new text end

new text begin Decertification due to revocation of child care assistance. new text end

new text begin If the commissioner decertifies a center that had payments revoked pursuant to chapter 119B, and if the center appeals the revocation of the center's authorization to receive child care assistance payments, the final decertification determination is stayed until the appeal of the center's authorization under chapter 119B is resolved. If the center also requests reconsideration of the decertification, the center must do so according to subdivision 2, paragraph (a). The final decision on reconsideration is stayed until the appeal of the center's authorization under chapter 119B is resolved. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivisions 1 to 3 are effective September 30, 2019. Subdivision 4 is effective February 26, 2021. new text end

Sec. 90.

Minnesota Statutes 2018, section 245H.10, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Documentationdeleted text end new text begin Individuals to be studiednew text end .

(a) The applicant or certification holder must submit deleted text begin and maintain documentation ofdeleted text end a completed background study fordeleted text begin :deleted text end new text begin each child care background study subject as defined in section 245C.02, subdivision 6a.new text end

deleted text begin (1) each person applying for the certification; deleted text end

deleted text begin (2) each person identified as a center operator or program operator as defined in section 245H.01, subdivision 3; deleted text end

deleted text begin (3) each current or prospective staff person or contractor of the certified center who will have direct contact with a child served by the center; deleted text end

deleted text begin (4) each volunteer who has direct contact with a child served by the center if the contact is not under the continuous, direct supervision by an individual listed in clause (1), (2), or (3); and deleted text end

deleted text begin (5) each managerial staff person of the certification holder with oversight and supervision of the certified center. deleted text end

(b) To be accepted for certification, a background study on every individual deleted text begin in paragraph (a), clause (1),deleted text end new text begin applying for certificationnew text end must be completed under chapter 245C and result in a not disqualified determination under section 245C.14 or a disqualification that was set aside under section 245C.22.

Sec. 91.

Minnesota Statutes 2018, section 245H.11, is amended to read:

245H.11 REPORTING.

(a) The certification holder must complynew text begin and must have written policies for staff to complynew text end with the reporting requirements for abuse and neglect specified in section 626.556. A person mandated to report physical or sexual child abuse or neglect occurring within a certified center shall report the information to the commissioner.

(b) The certification holder must inform the commissioner within 24 hours of:

(1) the death of a child in the program; and

(2) any injury to a child in the program that required treatment by a physician.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 92.

Minnesota Statutes 2018, section 245H.13, subdivision 5, is amended to read:

Subd. 5.

Building and physical premises; free of hazards.

(a) deleted text begin The certified center must document compliance with the State Fire Code by providingdeleted text end new text begin To be accepted for certification, the applicant must demonstrate compliance with the State Fire Code, section 299F.011, by either:new text end

new text begin (1) providing new text end documentation of a fire marshal inspection completed within the previous three years by a state fire marshal or a local fire code inspector trained by the state fire marshaldeleted text begin .deleted text end new text begin ; ornew text end

new text begin (2) complying with the fire marshal inspection requirements according to section 245A.151. new text end

(b) The certified center must designate a primary indoor and outdoor space used for child care on a facility site floor plan.

(c) The certified center must ensure the areas used by a child are clean and in good repair, with structurally sound and functional furniture and equipment that is appropriate to the age and size of a child who uses the area.

(d) The certified center must ensure hazardous items including but not limited to sharp objects, medicines, cleaning supplies, poisonous plants, and chemicals are out of reach of a child.

(e) The certified center must safely handle and dispose of bodily fluids and other potentially infectious fluids by using gloves, disinfecting surfaces that come in contact with potentially infectious bodily fluids, and disposing of bodily fluid in a securely sealed plastic bag.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 93.

Minnesota Statutes 2018, section 245H.13, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Risk reduction plan. new text end

new text begin (a) The certified center must develop a risk reduction plan that identifies risks to children served by the child care center. The assessment of risk must include risks presented by (1) the physical plant where the certified services are provided, including electrical hazards; and (2) the environment, including the proximity to busy roads and bodies of water. new text end

new text begin (b) The certification holder must establish policies and procedures to minimize identified risks. After any change to the risk reduction plan, the certification holder must inform staff of the change in the risk reduction plan and document that staff were informed of the change. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 94.

Minnesota Statutes 2018, section 245H.13, is amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Required policies. new text end

new text begin A certified center must have written policies for health and safety items in subdivisions 1 to 6. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 95.

Minnesota Statutes 2018, section 245H.13, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Behavior guidance. new text end

new text begin The certified center must ensure that staff and volunteers use positive behavior guidance and do not subject children to: new text end

new text begin (1) corporal punishment, including but not limited to rough handling, shoving, hair pulling, ear pulling, shaking, slapping, kicking, biting, pinching, hitting, and spanking; new text end

new text begin (2) humiliation; new text end

new text begin (3) abusive language; new text end

new text begin (4) the use of mechanical restraints, including tying; new text end

new text begin (5) the use of physical restraints other than to physically hold a child when containment is necessary to protect a child or others from harm; or new text end

new text begin (6) the withholding or forcing of food and other basic needs. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 96.

Minnesota Statutes 2018, section 245H.13, is amended by adding a subdivision to read:

new text begin Subd. 10. new text end

new text begin Supervision. new text end

new text begin Staff must supervise each child at all times. Staff are responsible for the ongoing activity of each child, appropriate visual or auditory awareness, physical proximity, and knowledge of activity requirements and each child's needs. Staff must intervene when necessary to ensure a child's safety. In determining the appropriate level of supervision of a child, staff must consider: (1) the age of a child; (2) individual differences and abilities; (3) indoor and outdoor layout of the child care program; and (4) environmental circumstances, hazards, and risks. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 97.

Minnesota Statutes 2018, section 245H.14, subdivision 1, is amended to read:

Subdivision 1.

First aid and cardiopulmonary resuscitation.

deleted text begin At least one designated staff person who completed pediatric first aid training and pediatric cardiopulmonary resuscitation (CPR) training must be present at all times at the program, during field trips, and when transporting a child. The designated staff person must repeat pediatric first aid training and pediatric CPR training at least once every two years. deleted text end

new text begin (a) Before having unsupervised direct contact with a child, but within the first 90 days of employment for the director and all staff persons, and within 90 days after the first date of direct contact with a child for substitutes and unsupervised volunteers, each person must successfully complete pediatric first aid and pediatric cardiopulmonary resuscitation (CPR) training, unless the training has been completed within the previous two calendar years. Staff must complete the pediatric first aid and pediatric CPR training at least every other calendar year and the center must document the training in the staff person's personnel record. new text end

new text begin (b) Training completed under this subdivision may be used to meet the in-service training requirements under subdivision 6. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 98.

Minnesota Statutes 2018, section 245H.14, subdivision 2, is amended to read:

Subd. 2.

Sudden unexpected infant death.

A certified center that cares for an infant who is younger than one year of age must ensure that new text begin the director, all new text end staff personsnew text begin , including substitutes, unsupervised volunteers,new text end and new text begin any other new text end volunteers receive training according to section 245A.1435 on reducing the risk of sudden unexpected infant death before assisting in the care of an infant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 99.

Minnesota Statutes 2018, section 245H.14, subdivision 3, is amended to read:

Subd. 3.

Abusive head trauma.

A certified center that cares for a child deleted text begin through four years of agedeleted text end new text begin under school agenew text end must ensure thatnew text begin the director and allnew text end staff persons deleted text begin and volunteersdeleted text end new text begin , including substitutes and unsupervised volunteers,new text end receive training on abusive head trauma deleted text begin from shaking infants and young childrendeleted text end before assisting in the care of a child deleted text begin through four years of agedeleted text end new text begin under school agenew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 100.

Minnesota Statutes 2018, section 245H.14, subdivision 4, is amended to read:

Subd. 4.

Child development.

The certified center must ensure deleted text begin each staff person completes at least two hours ofdeleted text end new text begin that the director and all staff persons completenew text end child development and learning training within deleted text begin 14deleted text end new text begin 90new text end days of employment and deleted text begin annuallydeleted text end new text begin every second calendar yearnew text end thereafter. new text begin Substitutes and unsupervised volunteers must complete child development and learning training within 90 days after the first date of direct contact with a child and every second calendar year thereafter.new text end new text begin The director and staff persons not including substitutes must complete at least two hours of training on child development. The training for substitutes and unsupervised volunteers is not required to be of a minimum length.new text end For purposes of this subdivision, "child development and learning training" means how a child develops physically, cognitively, emotionally, and socially and learns as part of the child's family, culture, and community.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 101.

Minnesota Statutes 2018, section 245H.14, subdivision 5, is amended to read:

Subd. 5.

Orientation.

The certified center must ensure deleted text begin each staff person isdeleted text end new text begin the director and all staff persons, substitutes, and unsupervised volunteers arenew text end trained at orientation on health and safety requirements in sections 245H.11, 245H.13, 245H.14, and 245H.15. The certified center must provide deleted text begin staff with andeleted text end orientation within 14 days deleted text begin of employmentdeleted text end new text begin after the first date of direct contact with a childnew text end . Before the completion of orientation, deleted text begin a staff persondeleted text end new text begin these individualsnew text end must be supervised while providing direct care to a child.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 102.

Minnesota Statutes 2018, section 245H.14, subdivision 6, is amended to read:

Subd. 6.

In service.

(a) The certified center must ensure deleted text begin eachdeleted text end new text begin that the director and allnew text end staff deleted text begin person isdeleted text end new text begin persons, including substitutes and unsupervised volunteers, arenew text end trained at least deleted text begin annuallydeleted text end new text begin once each calendar yearnew text end on health and safety requirements in sections 245H.11, 245H.13, 245H.14, and 245H.15.

(b) new text begin The director and new text end each staff personnew text begin , not including substitutes,new text end must deleted text begin annuallydeleted text end complete at least six hours of trainingnew text begin each calendar yearnew text end . Training required under paragraph (a) may be used toward the hourly training requirements of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 103.

Minnesota Statutes 2018, section 245H.15, subdivision 1, is amended to read:

Subdivision 1.

Written emergency plan.

(a) A certified center must have a written emergency plan for emergencies that require evacuation, sheltering, or other protection of children, such as fire, natural disaster, intruder, or other threatening situation that may pose a health or safety hazard to children. The plan must be written on a form developed by the commissioner and reviewed and updated at least once each calendar year. The annual review of the emergency plan must be documented.

(b) The plan must include:

(1) procedures for an evacuation, relocation, shelter-in-place, or lockdown;

(2) a designated relocation site and evacuation route;

(3) procedures for notifying a child's parent or legal guardian of the relocation and reunification with families;

(4) accommodations for a child with a disability or a chronic medical condition;

(5) procedures for storing a child's medically necessary medicine that facilitates easy removal during an evacuation or relocation;

(6) procedures for continuing operations in the period during and after a crisis; deleted text begin anddeleted text end

(7) procedures for communicating with local emergency management officials, law enforcement officials, or other appropriate state or local authoritiesdeleted text begin .deleted text end new text begin ; andnew text end

new text begin (8) accommodations for infants and toddlers. new text end

(c) The certification holder must have an emergency plan available for review upon request by the child's parent or legal guardian.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 30, 2019. new text end

Sec. 104.

Minnesota Statutes 2018, section 254B.05, subdivision 1, is amended to read:

Subdivision 1.

Licensure required.

(a) Programs licensed by the commissioner are eligible vendors. Hospitals may apply for and receive licenses to be eligible vendors, notwithstanding the provisions of section 245A.03. American Indian programs that provide substance use disorder treatment, extended care, transitional residence, or outpatient treatment services, and are licensed by tribal government are eligible vendors.

(b) On July 1, 2018, or upon federal approval, whichever is later, a licensed professional in private practice who meets the requirements of section 245G.11, subdivisions 1 and 4, is an eligible vendor of a comprehensive assessment and assessment summary provided according to section 245G.05, and treatment services provided according to sections 245G.06 and 245G.07, subdivision 1, paragraphs (a), clauses (1) to (5), and (b); and subdivision 2.

(c) On July 1, 2018, or upon federal approval, whichever is later, a county is an eligible vendor for a comprehensive assessment and assessment summary when provided by an individual who meets the staffing credentials of section 245G.11, subdivisions 1 and deleted text begin 4deleted text end new text begin 5new text end , and completed according to the requirements of section 245G.05. A county is an eligible vendor of care coordination services when provided by an individual who meets the staffing credentials of section 245G.11, subdivisions 1 and 7, and provided according to the requirements of section 245G.07, subdivision 1, clause (7).

(d) On July 1, 2018, or upon federal approval, whichever is later, a recovery community organization that meets certification requirements identified by the commissioner is an eligible vendor of peer support services.

(e) Detoxification programs licensed under Minnesota Rules, parts 9530.6510 to 9530.6590, are not eligible vendors. Programs that are not licensed as a residential or nonresidential substance use disorder treatment or withdrawal management program by the commissioner or by tribal government or do not meet the requirements of subdivisions 1a and 1b are not eligible vendors.

Sec. 105.

Minnesota Statutes 2018, section 254B.05, subdivision 1b, is amended to read:

Subd. 1b.

Additional vendor requirements.

Vendors must comply with the following duties:

(1) maintain a provider agreement with the department;

(2) continually comply with the standards in the agreement;

(3) participate in the Drug Alcohol Normative Evaluation System;

(4) submit an annual financial statement which reports functional expenses of chemical dependency treatment costs in a form approved by the commissioner;

(5) report information about the vendor's current capacity in a manner prescribed by the commissioner; and

(6) maintain adequate and appropriate insurance coverage necessary to provide chemical dependency treatment services, and at a minimum:

(i) employee dishonesty in the amount of $10,000 if the vendor has or had custody or control of money or property belonging to clients; and

(ii) bodily injury and property damage in the amount of $2,000,000 for each occurrencenew text begin , except that a county or a county joint powers entity who is otherwise an eligible vendor shall be subject to the limits on liability under section 466.04new text end .

Sec. 106.

Minnesota Statutes 2018, section 256.046, subdivision 1, is amended to read:

Subdivision 1.

Hearing authority.

A local agency must initiate an administrative fraud disqualification hearing for individualsdeleted text begin , including child care providers caring for children receiving child care assistance,deleted text end accused of wrongfully obtaining assistance or intentional program violations, in lieu of a criminal action when it has not been pursued, in the Minnesota family investment program and any affiliated program to include the diversionary work program and the work participation cash benefit program, child care assistance programs, general assistance, family general assistance program formerly codified in section 256D.05, subdivision 1, clause (15), Minnesota supplemental aid, food stamp programs, MinnesotaCare for adults without children, and upon federal approval, all categories of medical assistance and remaining categories of MinnesotaCare except for children through age 18. The Department of Human Services, in lieu of a local agency, may initiate an administrative fraud disqualification hearing when the state agency is directly responsible for administration or investigation of the program for which benefits were wrongfully obtained. The hearing is subject to the requirements of deleted text begin sectiondeleted text end new text begin sectionsnew text end 256.045 new text begin and 256.0451 new text end and the requirements in Code of Federal Regulations, title 7, section 273.16.

Sec. 107.

Minnesota Statutes 2018, section 256.046, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Administrative disqualification of child care providers caring for children receiving child care assistance. new text end

new text begin (a) The department or local agency shall pursue an administrative disqualification, if the child care provider is accused of committing an intentional program violation, in lieu of a criminal action when it has not been pursued. Intentional program violations include intentionally making false or misleading statements; intentionally misrepresenting, concealing, or withholding facts; and repeatedly and intentionally violating program regulations under chapters 119B and 245E. Intent may be proven by demonstrating a pattern of conduct that violates program rules under chapters 119B and 245E. new text end

new text begin (b) To initiate an administrative disqualification, a local agency or the commissioner must mail written notice by certified mail to the provider against whom the action is being taken. Unless otherwise specified under chapter 119B or 245E or Minnesota Rules, chapter 3400, a local agency or the commissioner must mail the written notice at least 15 calendar days before the adverse action's effective date. The notice shall state (1) the factual basis for the agency's determination, (2) the action the agency intends to take, (3) the dollar amount of the monetary recovery or recoupment, if known, and (4) the provider's right to appeal the agency's proposed action. new text end

new text begin (c) The provider may appeal an administrative disqualification by submitting a written request to the Department of Human Services, Appeals Division. A provider's request must be received by the Appeals Division no later than 30 days after the date a local agency or the commissioner mails the notice. new text end

new text begin (d) The provider's appeal request must contain the following: new text end

new text begin (1) each disputed item, the reason for the dispute, and, if applicable, an estimate of the dollar amount involved for each disputed item; new text end

new text begin (2) the computation the provider believes to be correct, if applicable; new text end

new text begin (3) the statute or rule relied on for each disputed item; and new text end

new text begin (4) the name, address, and telephone number of the person at the provider's place of business with whom contact may be made regarding the appeal. new text end

new text begin (e) On appeal, the issuing agency bears the burden of proof to demonstrate by a preponderance of the evidence that the provider committed an intentional program violation. new text end

new text begin (f) The hearing is subject to the requirements of sections 256.045 and 256.0451. The human services judge may combine a fair hearing and administrative disqualification hearing into a single hearing if the factual issues arise out of the same or related circumstances and the provider receives prior notice that the hearings will be combined. new text end

new text begin (g) A provider found to have committed an intentional program violation and is administratively disqualified shall be disqualified, for a period of three years for the first offense and permanently for any subsequent offense, from receiving any payments from any child care program under chapter 119B. new text end

new text begin (h) Unless a timely and proper appeal made under this section is received by the department, the administrative determination of the department is final and binding. new text end

Sec. 108.

Minnesota Statutes 2018, section 256.98, subdivision 1, is amended to read:

Subdivision 1.

Wrongfully obtaining assistance.

A person who commits any of the following acts or omissions with intent to defeat the purposes of sections 145.891 to 145.897, the MFIP program formerly codified in sections 256.031 to 256.0361, the AFDC program formerly codified in sections 256.72 to 256.871, chapter 256B, 256D, new text begin 256I, new text end 256J, 256K, or 256L, child care assistance programs, and emergency assistance programs under section 256D.06, is guilty of theft and shall be sentenced under section 609.52, subdivision 3, clauses (1) to (5):

(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a willfully false statement or representation, by intentional concealment of any material fact, or by impersonation or other fraudulent device, assistance or the continued receipt of assistance, to include child care assistance or vouchers produced according to sections 145.891 to 145.897 and MinnesotaCare services according to sections 256.9365, 256.94, and 256L.01 to 256L.15, to which the person is not entitled or assistance greater than that to which the person is entitled;

(2) knowingly aids or abets in buying or in any way disposing of the property of a recipient or applicant of assistance without the consent of the county agency; or

(3) obtains or attempts to obtain, alone or in collusion with others, the receipt of payments to which the individual is not entitled as a provider of subsidized child care, or by furnishing or concurring in a willfully false claim for child care assistance.

The continued receipt of assistance to which the person is not entitled or greater than that to which the person is entitled as a result of any of the acts, failure to act, or concealment described in this subdivision shall be deemed to be continuing offenses from the date that the first act or failure to act occurred.

Sec. 109.

Minnesota Statutes 2018, section 256.98, subdivision 8, is amended to read:

Subd. 8.

Disqualification from program.

(a) Any person found to be guilty of wrongfully obtaining assistance by a federal or state court or by an administrative hearing determination, or waiver thereof, through a disqualification consent agreement, or as part of any approved diversion plan under section 401.065, or any court-ordered stay which carries with it any probationary or other conditions, in the Minnesota family investment program and any affiliated program to include the diversionary work program and the work participation cash benefit program, the food stamp or food support program, the general assistance program, housing support under chapter 256I, or the Minnesota supplemental aid program shall be disqualified from that program. In addition, any person disqualified from the Minnesota family investment program shall also be disqualified from the food stamp or food support program. The needs of that individual shall not be taken into consideration in determining the grant level for that assistance unit:

(1) for one year after the first offense;

(2) for two years after the second offense; and

(3) permanently after the third or subsequent offense.

The period of program disqualification shall begin on the date stipulated on the advance notice of disqualification without possibility of postponement for administrative stay or administrative hearing and shall continue through completion unless and until the findings upon which the sanctions were imposed are reversed by a court of competent jurisdiction. The period for which sanctions are imposed is not subject to review. The sanctions provided under this subdivision are in addition to, and not in substitution for, any other sanctions that may be provided for by law for the offense involved. A disqualification established through hearing or waiver shall result in the disqualification period beginning immediately unless the person has become otherwise ineligible for assistance. If the person is ineligible for assistance, the disqualification period begins when the person again meets the eligibility criteria of the program from which they were disqualified and makes application for that program.

(b) A family receiving assistance through child care assistance programs under chapter 119B with a family member who is found to be guilty of wrongfully obtaining child care assistance by a federal court, state court, or an administrative hearing determination or waiver, through a disqualification consent agreement, as part of an approved diversion plan under section 401.065, or a court-ordered stay with probationary or other conditions, is disqualified from child care assistance programs. The disqualifications must be for periods of one year and two years for the first and second offenses, respectively. Subsequent violations must result in permanent disqualification. During the disqualification period, disqualification from any child care program must extend to all child care programs and must be immediately applied.

(c) A provider caring for children receiving assistance through child care assistance programs under chapter 119B is disqualified from receiving payment for child care services from the child care assistance program under chapter 119B when the provider is found to have wrongfully obtained child care assistance by a federal court, state court, or an administrative hearing determination or waiver under section 256.046, through a disqualification consent agreement, as part of an approved diversion plan under section 401.065, or a court-ordered stay with probationary or other conditions. The disqualification must be for a period of deleted text begin one yeardeleted text end new text begin three yearsnew text end for the first offense deleted text begin and two years for the second offensedeleted text end . Any subsequent violation must result in permanent disqualification. The disqualification period must be imposed immediately after a determination is made under this paragraph. During the disqualification period, the provider is disqualified from receiving payment from any child care program under chapter 119B.

(d) Any person found to be guilty of wrongfully obtaining MinnesotaCare for adults without children and upon federal approval, all categories of medical assistance and remaining categories of MinnesotaCare, except for children through age 18, by a federal or state court or by an administrative hearing determination, or waiver thereof, through a disqualification consent agreement, or as part of any approved diversion plan under section 401.065, or any court-ordered stay which carries with it any probationary or other conditions, is disqualified from that program. The period of disqualification is one year after the first offense, two years after the second offense, and permanently after the third or subsequent offense. The period of program disqualification shall begin on the date stipulated on the advance notice of disqualification without possibility of postponement for administrative stay or administrative hearing and shall continue through completion unless and until the findings upon which the sanctions were imposed are reversed by a court of competent jurisdiction. The period for which sanctions are imposed is not subject to review. The sanctions provided under this subdivision are in addition to, and not in substitution for, any other sanctions that may be provided for by law for the offense involved.

Sec. 110.

Minnesota Statutes 2018, section 256.983, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Child care providers; financial misconduct. new text end

new text begin (a) A county or tribal agency may conduct investigations of financial misconduct by child care providers as described in chapter 245E. Prior to opening an investigation, a county or tribal agency must contact the commissioner to determine whether an investigation under this chapter may compromise an ongoing investigation. new text end

new text begin (b) If, upon investigation, a preponderance of evidence shows a provider committed an intentional program violation, intentionally gave the county or tribe materially false information on the provider's billing forms, provided false attendance records to a county, tribe, or the commissioner, or committed financial misconduct as described in section 245E.01, subdivision 8, the county or tribal agency may suspend a provider's payment pursuant to chapter 245E, or deny or revoke a provider's authorization pursuant to section 119B.13, subdivision 6, paragraph (d), clause (2), prior to pursuing other available remedies. The county must send notice in accordance with the requirements of section 119B.161, subdivision 2. If a provider's payment is suspended under this section, the payment suspension shall remain in effect until: (1) the commissioner, county, or a law enforcement authority determines that there is insufficient evidence warranting the action and a county, tribe, or the commissioner does not pursue an additional administrative remedy under chapter 119B or 245E, or section 256.046 or 256.98; or (2) all criminal, civil, and administrative proceedings related to the provider's alleged misconduct conclude and any appeal rights are exhausted. new text end

new text begin (c) For the purposes of this section, an intentional program violation includes intentionally making false or misleading statements; intentionally misrepresenting, concealing, or withholding facts; and repeatedly and intentionally violating program regulations under chapters 119B and 245E. new text end

new text begin (d) A provider has the right to administrative review under section 119B.161 if: (1) payment is suspended under chapter 245E; or (2) the provider's authorization was denied or revoked under section 119B.13, subdivision 6, paragraph (d), clause (2). new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective February 26, 2021. new text end

Sec. 111.

Minnesota Statutes 2018, section 256B.02, subdivision 7, is amended to read:

Subd. 7.

Vendor of medical care.

(a) "Vendor of medical care" means any person or persons furnishing, within the scope of the vendor's respective license, any or all of the following goods or services: medical, surgical, hospital, ambulatory surgical center services, optical, visual, dental and nursing services; drugs and medical supplies; appliances; laboratory, diagnostic, and therapeutic services; nursing home and convalescent care; screening and health assessment services provided by public health nurses as defined in section 145A.02, subdivision 18; health care services provided at the residence of the patient if the services are performed by a public health nurse and the nurse indicates in a statement submitted under oath that the services were actually provided; and such other deleted text begin medicaldeleted text end services or supplies provided or prescribed by persons authorized by state law to give such services and supplies. The term includes, but is not limited to, directors and officers of corporations or members of partnerships who, either individually or jointly with another or others, have the legal control, supervision, or responsibility of submitting claims for reimbursement to the medical assistance program. The term only includes directors and officers of corporations who personally receive a portion of the distributed assets upon liquidation or dissolution, and their liability is limited to the portion of the claim that bears the same proportion to the total claim as their share of the distributed assets bears to the total distributed assets.

(b) "Vendor of medical care" also includes any person who is credentialed as a health professional under standards set by the governing body of a federally recognized Indian tribe authorized under an agreement with the federal government according to United States Code, title 25, section 450f, to provide health services to its members, and who through a tribal facility provides covered services to American Indian people within a contract health service delivery area of a Minnesota reservation, as defined under Code of Federal Regulations, title 42, section 36.22.

(c) A federally recognized Indian tribe that intends to implement standards for credentialing health professionals must submit the standards to the commissioner of human services, along with evidence of meeting, exceeding, or being exempt from corresponding state standards. The commissioner shall maintain a copy of the standards and supporting evidence, and shall use those standards to enroll tribal-approved health professionals as medical assistance providers. For purposes of this section, "Indian" and "Indian tribe" mean persons or entities that meet the definition in United States Code, title 25, section 450b.

Sec. 112.

Minnesota Statutes 2018, section 256B.04, subdivision 21, is amended to read:

Subd. 21.

Provider enrollment.

(a) If the commissioner or the Centers for Medicare and Medicaid Services determines that a provider is designated "high-risk," the commissioner may withhold payment from providers within that category upon initial enrollment for a 90-day period. The withholding for each provider must begin on the date of the first submission of a claim.

(b) An enrolled provider that is also licensed by the commissioner under chapter 245A, or is licensed as a home care provider by the Department of Health under chapter 144A and has a home and community-based services designation on the home care license under section 144A.484, must designate an individual as the entity's compliance officer. The compliance officer must:

(1) develop policies and procedures to assure adherence to medical assistance laws and regulations and to prevent inappropriate claims submissions;

(2) train the employees of the provider entity, and any agents or subcontractors of the provider entity including billers, on the policies and procedures under clause (1);

(3) respond to allegations of improper conduct related to the provision or billing of medical assistance services, and implement action to remediate any resulting problems;

(4) use evaluation techniques to monitor compliance with medical assistance laws and regulations;

(5) promptly report to the commissioner any identified violations of medical assistance laws or regulations; and

(6) within 60 days of discovery by the provider of a medical assistance reimbursement overpayment, report the overpayment to the commissioner and make arrangements with the commissioner for the commissioner's recovery of the overpayment.

The commissioner may require, as a condition of enrollment in medical assistance, that a provider within a particular industry sector or category establish a compliance program that contains the core elements established by the Centers for Medicare and Medicaid Services.

(c) The commissioner may revoke the enrollment of an ordering or rendering provider for a period of not more than one year, if the provider fails to maintain and, upon request from the commissioner, provide access to documentation relating to written orders or requests for payment for durable medical equipment, certifications for home health services, or referrals for other items or services written or ordered by such provider, when the commissioner has identified a pattern of a lack of documentation. A pattern means a failure to maintain documentation or provide access to documentation on more than one occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a provider under the provisions of section 256B.064.

(d) The commissioner shall terminate or deny the enrollment of any individual or entity if the individual or entity has been terminated from participation in Medicare or under the Medicaid program or Children's Health Insurance Program of any other state.new text begin The commissioner may exempt a rehabilitation agency from termination or denial that would otherwise be required under this paragraph, if the agency:new text end

new text begin (1) is unable to retain Medicare certification and enrollment solely due to a lack of billing to the Medicare program; new text end

new text begin (2) meets all other applicable Medicare certification requirements based on an on-site review completed by the commissioner of health; and new text end

new text begin (3) serves primarily a pediatric population. new text end

(e) As a condition of enrollment in medical assistance, the commissioner shall require that a provider designated "moderate" or "high-risk" by the Centers for Medicare and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid Services, its agents, or its designated contractors and the state agency, its agents, or its designated contractors to conduct unannounced on-site inspections of any provider location. The commissioner shall publish in the Minnesota Health Care Program Provider Manual a list of provider types designated "limited," "moderate," or "high-risk," based on the criteria and standards used to designate Medicare providers in Code of Federal Regulations, title 42, section 424.518. The list and criteria are not subject to the requirements of chapter 14. The commissioner's designations are not subject to administrative appeal.

(f) As a condition of enrollment in medical assistance, the commissioner shall require that a high-risk provider, or a person with a direct or indirect ownership interest in the provider of five percent or higher, consent to criminal background checks, including fingerprinting, when required to do so under state law or by a determination by the commissioner or the Centers for Medicare and Medicaid Services that a provider is designated high-risk for fraud, waste, or abuse.

(g)(1) Upon initial enrollment, reenrollment, and notification of revalidation, all durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) medical suppliers meeting the durable medical equipment provider and supplier definition in clause (3), operating in Minnesota and receiving Medicaid funds must purchase a surety bond that is annually renewed and designates the Minnesota Department of Human Services as the obligee, and must be submitted in a form approved by the commissioner. For purposes of this clause, the following medical suppliers are not required to obtain a surety bond: a federally qualified health center, a home health agency, the Indian Health Service, a pharmacy, and a rural health clinic.

(2) At the time of initial enrollment or reenrollment, durable medical equipment providers and suppliers defined in clause (3) must purchase a surety bond of $50,000. If a revalidating provider's Medicaid revenue in the previous calendar year is up to and including $300,000, the provider agency must purchase a surety bond of $50,000. If a revalidating provider's Medicaid revenue in the previous calendar year is over $300,000, the provider agency must purchase a surety bond of $100,000. The surety bond must allow for recovery of costs and fees in pursuing a claim on the bond.

(3) "Durable medical equipment provider or supplier" means a medical supplier that can purchase medical equipment or supplies for sale or rental to the general public and is able to perform or arrange for necessary repairs to and maintenance of equipment offered for sale or rental.

(h) The Department of Human Services may require a provider to purchase a surety bond as a condition of initial enrollment, reenrollment, reinstatement, or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the department determines there is significant evidence of or potential for fraud and abuse by the provider, or (3) the provider or category of providers is designated high-risk pursuant to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The surety bond must be in an amount of $100,000 or ten percent of the provider's payments from Medicaid during the immediately preceding 12 months, whichever is greater. The surety bond must name the Department of Human Services as an obligee and must allow for recovery of costs and fees in pursuing a claim on the bond. This paragraph does not apply if the provider currently maintains a surety bond under the requirements in section 256B.0659 or 256B.85.

Sec. 113.

Minnesota Statutes 2018, section 256B.064, subdivision 1b, is amended to read:

Subd. 1b.

Sanctions available.

The commissioner may impose the following sanctions for the conduct described in subdivision 1a: suspension or withholding of payments to a vendor and suspending or terminating participation in the program, or imposition of a fine under subdivision 2, paragraph (f). When imposing sanctions under this section, the commissioner shall consider the nature, chronicity, or severity of the conduct and the effect of the conduct on the health and safety of persons served by the vendor.new text begin The commissioner shall suspend a vendor's participation in the program for a minimum of five years if the vendor is convicted of a crime, received a stay of adjudication, or entered a court-ordered diversion program for an offense related to a provision of a health service under medical assistance or health care fraud.new text end Regardless of imposition of sanctions, the commissioner may make a referral to the appropriate state licensing board.

Sec. 114.

Minnesota Statutes 2018, section 256B.064, subdivision 2, is amended to read:

Subd. 2.

Imposition of monetary recovery and sanctions.

(a) The commissioner shall determine any monetary amounts to be recovered and sanctions to be imposed upon a vendor of medical care under this section. Except as provided in paragraphs (b) and (d), neither a monetary recovery nor a sanction will be imposed by the commissioner without prior notice and an opportunity for a hearing, according to chapter 14, on the commissioner's proposed action, provided that the commissioner may suspend or reduce payment to a vendor of medical care, except a nursing home or convalescent care facility, after notice and prior to the hearing if in the commissioner's opinion that action is necessary to protect the public welfare and the interests of the program.

(b) Except when the commissioner finds good cause not to suspend payments under Code of Federal Regulations, title 42, section 455.23 (e) or (f), the commissioner shall withhold or reduce payments to a vendor of medical care without providing advance notice of such withholding or reduction if either of the following occurs:

(1) the vendor is convicted of a crime involving the conduct described in subdivision 1a; or

(2) the commissioner determines there is a credible allegation of fraud for which an investigation is pending under the program. A credible allegation of fraud is an allegation which has been verified by the state, from any source, including but not limited to:

(i) fraud hotline complaints;

(ii) claims data mining; and

(iii) patterns identified through provider audits, civil false claims cases, and law enforcement investigations.

Allegations are considered to be credible when they have an indicia of reliability and the state agency has reviewed all allegations, facts, and evidence carefully and acts judiciously on a case-by-case basis.

(c) The commissioner must send notice of the withholding or reduction of payments under paragraph (b) within five days of taking such action unless requested in writing by a law enforcement agency to temporarily withhold the notice. The notice must:

(1) state that payments are being withheld according to paragraph (b);

(2) set forth the general allegations as to the nature of the withholding action, but need not disclose any specific information concerning an ongoing investigation;

(3) except in the case of a conviction for conduct described in subdivision 1a, state that the withholding is for a temporary period and cite the circumstances under which withholding will be terminated;

(4) identify the types of claims to which the withholding applies; and

(5) inform the vendor of the right to submit written evidence for consideration by the commissioner.

The withholding or reduction of payments will not continue after the commissioner determines there is insufficient evidence of fraud by the vendor, or after legal proceedings relating to the alleged fraud are completed, unless the commissioner has sent notice of intention to impose monetary recovery or sanctions under paragraph (a).new text begin Upon conviction for a crime related to the provision, management, or administration of a health service under medical assistance, a payment held pursuant to this section by the commissioner or a managed care organization that contracts with the commissioner under section 256B.035 is forfeited to the commissioner or managed care organization, regardless of the amount charged in the criminal complaint or the amount of criminal restitution ordered.new text end

(d) The commissioner shall suspend or terminate a vendor's participation in the program without providing advance notice and an opportunity for a hearing when the suspension or termination is required because of the vendor's exclusion from participation in Medicare. Within five days of taking such action, the commissioner must send notice of the suspension or termination. The notice must:

(1) state that suspension or termination is the result of the vendor's exclusion from Medicare;

(2) identify the effective date of the suspension or termination; and

(3) inform the vendor of the need to be reinstated to Medicare before reapplying for participation in the program.

(e) Upon receipt of a notice under paragraph (a) that a monetary recovery or sanction is to be imposed, a vendor may request a contested case, as defined in section 14.02, subdivision 3, by filing with the commissioner a written request of appeal. The appeal request must be received by the commissioner no later than 30 days after the date the notification of monetary recovery or sanction was mailed to the vendor. The appeal request must specify:

(1) each disputed item, the reason for the dispute, and an estimate of the dollar amount involved for each disputed item;

(2) the computation that the vendor believes is correct;

(3) the authority in statute or rule upon which the vendor relies for each disputed item;

(4) the name and address of the person or entity with whom contacts may be made regarding the appeal; and

(5) other information required by the commissioner.

(f) The commissioner may order a vendor to forfeit a fine for failure to fully document services according to standards in this chapter and Minnesota Rules, chapter 9505. The commissioner may assess fines if specific required components of documentation are missing. The fine for incomplete documentation shall equal 20 percent of the amount paid on the claims for reimbursement submitted by the vendor, or up to $5,000, whichever is less.new text begin If the commissioner determines that a vendor repeatedly violated this chapter or Minnesota Rules, chapter 9505, related to the provision of services to program recipients and the submission of claims for payment, the commissioner may order a vendor to forfeit a fine based on the nature, severity, and chronicity of the violations, in an amount of up to $5,000 or 20 percent of the value of the claims, whichever is greater.new text end

(g) The vendor shall pay the fine assessed on or before the payment date specified. If the vendor fails to pay the fine, the commissioner may withhold or reduce payments and recover the amount of the fine. A timely appeal shall stay payment of the fine until the commissioner issues a final order.

Sec. 115.

Minnesota Statutes 2018, section 256B.064, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Vendor mandates on prohibited payments. new text end

new text begin (a) The commissioner shall maintain and publish a list of each excluded individual and entity that was convicted of a crime related to the provision, management, or administration of a medical assistance health service, or suspended or terminated under subdivision 2. Medical assistance payments cannot be made by a vendor for items or services furnished either directly or indirectly by an excluded individual or entity, or at the direction of excluded individuals or entities. new text end

new text begin (b) The vendor must check the exclusion list on a monthly basis and document the date and time the exclusion list was checked and the name and title of the person who checked the exclusion list. The vendor must immediately terminate payments to an individual or entity on the exclusion list. new text end

new text begin (c) A vendor's requirement to check the exclusion list and to terminate payments to individuals or entities on the exclusion list applies to each individual or entity on the exclusion list, even if the named individual or entity is not responsible for direct patient care or direct submission of a claim to medical assistance. new text end

new text begin (d) A vendor that pays medical assistance program funds to an individual or entity on the exclusion list must refund any payment related to either items or services rendered by an individual or entity on the exclusion list from the date the individual or entity is first paid or the date the individual or entity is placed on the exclusion list, whichever is later, and a vendor may be subject to: new text end

new text begin (1) sanctions under subdivision 2; new text end

new text begin (2) a civil monetary penalty of up to $25,000 for each determination by the department that the vendor employed or contracted with an individual or entity on the exclusion list; and new text end

new text begin (3) other fines or penalties allowed by law. new text end

Sec. 116.

Minnesota Statutes 2018, section 256B.064, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Notice. new text end

new text begin (a) The notice required under subdivision 2 shall be served by certified mail at the address submitted to the department by the vendor. Service is complete upon mailing. The commissioner shall place an affidavit of the certified mailing in the vendor's file as an indication of the address and the date of mailing. new text end

new text begin (b) The department shall give notice in writing to a recipient placed in the Minnesota restricted recipient program under section 256B.0646 and Minnesota Rules, part 9505.2200. The notice shall be sent by first class mail to the recipient's current address on file with the department. A recipient placed in the Minnesota restricted recipient program may contest the placement by submitting a written request for a hearing to the department within 90 days of the notice being mailed. new text end

Sec. 117.

Minnesota Statutes 2018, section 256B.064, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Immunity; good faith reporters. new text end

new text begin (a) A person who makes a good faith report is immune from any civil or criminal liability that might otherwise arise from reporting or participating in the investigation. Nothing in this subdivision affects a vendor's responsibility for an overpayment established under this subdivision. new text end

new text begin (b) A person employed by a lead investigative agency who is conducting or supervising an investigation or enforcing the law according to the applicable law or rule is immune from any civil or criminal liability that might otherwise arise from the person's actions, if the person is acting in good faith and exercising due care. new text end

new text begin (c) For purposes of this subdivision, "person" includes a natural person or any form of a business or legal entity. new text end

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

Sec. 118.

new text begin [256B.0646] MINNESOTA RESTRICTED RECIPIENT PROGRAM; PERSONAL CARE ASSISTANCE SERVICES. new text end

new text begin (a) When a recipient's use of personal care assistance services or community first services and supports under section 256B.85 results in abusive or fraudulent billing, the commissioner may place a recipient in the Minnesota restricted recipient program under Minnesota Rules, part 9505.2165. A recipient placed in the Minnesota restricted recipient program under this section must: (1) use a designated traditional personal care assistance provider agency; and (2) obtain a new assessment under section 256B.0911, including consultation with a registered or public health nurse on the long-term care consultation team pursuant to section 256B.0911, subdivision 3, paragraph (b), clause (2). new text end

new text begin (b) A recipient must comply with additional conditions for the use of personal care assistance services or community first services and supports if the commissioner determines it is necessary to prevent future misuse of personal care assistance services or abusive or fraudulent billing. Additional conditions may include but are not limited to restricting service authorizations for a duration of no more than one month and requiring a qualified professional to monitor and report services on a monthly basis. new text end

new text begin (c) A recipient placed in the Minnesota restricted recipient program under this section may appeal the placement according to section 256.045. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 119.

Minnesota Statutes 2018, section 256B.0651, subdivision 17, is amended to read:

Subd. 17.

Recipient protection.

(a) Providers of home care services must provide each recipient with a copy of the home care bill of rights under section 144A.44 at least 30 days prior to terminating services to a recipient, if the termination results from provider sanctions under section 256B.064, such as a payment withhold, a suspension of participation, or a termination of participation. If a home care provider determines it is unable to continue providing services to a recipient, the provider must notify the recipient, the recipient's responsible party, and the commissioner 30 days prior to terminating services to the recipient because of an action under section 256B.064, and must assist the commissioner and lead agency in supporting the recipient in transitioning to another home care provider of the recipient's choice.

(b) In the event of a payment withhold from a home care provider, a suspension of participation, or a termination of participation of a home care provider under section 256B.064, the commissioner may inform the Office of Ombudsman for Long-Term Care and the lead agencies for all recipients with active service agreements with the provider. At the commissioner's request, the lead agencies must contact recipients to ensure that the recipients are continuing to receive needed care, and that the recipients have been given free choice of provider if they transfer to another home care provider. In addition, the commissioner or the commissioner's delegate may directly notify recipients who receive care from the provider that payments have been new text begin or will be new text end withheld or that the provider's participation in medical assistance has been new text begin or will be new text end suspended or terminated, if the commissioner determines that notification is necessary to protect the welfare of the recipients. For purposes of this subdivision, "lead agencies" means counties, tribes, and managed care organizations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 120.

Minnesota Statutes 2018, section 256B.0659, subdivision 12, is amended to read:

Subd. 12.

Documentation of personal care assistance services provided.

(a) Personal care assistance services for a recipient must be documented daily by each personal care assistant, on a time sheet form approved by the commissioner. All documentation may be web-based, electronic, or paper documentation. The completed form must be submitted on a monthly basis to the provider and kept in the recipient's health record.

(b) The activity documentation must correspond to the personal care assistance care plan and be reviewed by the qualified professional.

(c) The personal care assistant time sheet must be on a form approved by the commissioner documenting time the personal care assistant provides services in the home. The following criteria must be included in the time sheet:

(1) full name of personal care assistant and individual provider number;

(2) provider name and telephone numbers;

(3) full name of recipientnew text begin and either the recipient's medical assistance identification number or date of birthnew text end ;

(4) consecutive dates, including month, day, and year, and arrival and departure times with a.m. or p.m. notations;

(5) signatures of recipient or the responsible party;

(6) personal signature of the personal care assistant;

(7) any shared care provided, if applicable;

(8) a statement that it is a federal crime to provide false information on personal care service billings for medical assistance payments; and

(9) dates and location of recipient stays in a hospital, care facility, or incarceration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 121.

Minnesota Statutes 2018, section 256B.27, subdivision 3, is amended to read:

Subd. 3.

Access to medical records.

The commissioner of human services, with the written consent of the recipient, on file with the local welfare agency, shall be allowed access to all personal medical records of medical assistance recipients solely for the purposes of investigating whether or not: (a) a vendor of medical care has submitted a claim for reimbursement, a cost report or a rate application which is duplicative, erroneous, or false in whole or in part, or which results in the vendor obtaining greater compensation than the vendor is legally entitled to; or (b) the medical care was medically necessary. deleted text begin The vendor of medical care shall receive notification from the commissioner at least 24 hours before the commissioner gains access to such records.deleted text end new text begin When the commissioner is investigating a possible overpayment of Medicaid funds, the commissioner must be given immediate access without prior notice to the vendor's office during regular business hours and to documentation and records related to services provided and submission of claims for services provided. The department shall document in writing the need for immediate access to records related to a specific investigation. Denying the commissioner access to records is cause for the vendor's immediate suspension of payment or termination according to section 256B.064.new text end The determination of provision of services not medically necessary shall be made by the commissioner. Notwithstanding any other law to the contrary, a vendor of medical care shall not be subject to any civil or criminal liability for providing access to medical records to the commissioner of human services pursuant to this section.

Sec. 122.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Home and community-based service billing requirements. new text end

new text begin (a) A home and community-based service is eligible for reimbursement if: new text end

new text begin (1) the service is provided according to a federally approved waiver plan as authorized under sections 256B.0913, 256B.0915, 256B.092, and 256B.49; new text end

new text begin (2) if applicable, the service is provided on days and times during the days and hours of operation specified on any license required under chapter 245A or 245D; and new text end

new text begin (3) the provider complies with subdivisions 12 to 15, if applicable. new text end

new text begin (b) The provider must maintain documentation that, upon employment and annually thereafter, staff providing a service have attested to reviewing and understanding the following statement: "It is a federal crime to provide materially false information on service billings for medical assistance or services provided under a federally approved waiver plan as authorized under Minnesota Statutes, sections 256B.0913, 256B.0915, 256B.092, and 256B.49." new text end

new text begin (c) The department may recover payment according to section 256B.064 and Minnesota Rules, parts 9505.2160 to 9505.2245, for a service that does not satisfy this subdivision. new text end

Sec. 123.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Home and community-based service documentation requirements. new text end

new text begin (a) Documentation may be collected and maintained electronically or in paper form by providers and must be produced upon request by the commissioner. new text end

new text begin (b) Documentation of a delivered service must be in English and must be legible according to the standard of a reasonable person. new text end

new text begin (c) If the service is reimbursed at an hourly or specified minute-based rate, each documentation of the provision of a service, unless otherwise specified, must include: new text end

new text begin (1) the date the documentation occurred; new text end

new text begin (2) the day, month, and year when the service was provided; new text end

new text begin (3) the start and stop times with a.m. and p.m. designations, except for case management services as defined under sections 256B.0913, subdivision 7; 256B.0915, subdivision 1a; 256B.092, subdivision 1a; and 256B.49, subdivision 13; new text end

new text begin (4) the service name or description of the service provided; and new text end

new text begin (5) the name, signature, and title, if any, of the provider of service. If the service is provided by multiple staff members, the provider may designate a staff member responsible for verifying services and completing the documentation required by this paragraph. new text end

new text begin (d) If the service is reimbursed at a daily rate or does not meet the requirements in paragraph (c), each documentation of the provision of a service, unless otherwise specified, must include: new text end

new text begin (1) the date the documentation occurred; new text end

new text begin (2) the day, month, and year when the service was provided; new text end

new text begin (3) the service name or description of the service provided; and new text end

new text begin (4) the name, signature, and title, if any, of the person providing the service. If the service is provided by multiple staff, the provider may designate a staff member responsible for verifying services and completing the documentation required by this paragraph. new text end

Sec. 124.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Waiver transportation documentation and billing requirements. new text end

new text begin (a) A waiver transportation service must be a waiver transportation service that: (1) is not covered by medical transportation under the Medicaid state plan; and (2) is not included as a component of another waiver service. new text end

new text begin (b) In addition to the documentation requirements in subdivision 12, a waiver transportation service provider must maintain: new text end

new text begin (1) odometer and other records pursuant to section 256B.0625, subdivision 17b, paragraph (b), clause (3), sufficient to distinguish an individual trip with a specific vehicle and driver for a waiver transportation service that is billed directly by the mile. A common carrier as defined by Minnesota Rules, part 9505.0315, subpart 1, item B, or a publicly operated transit system provider are exempt from this clause; and new text end

new text begin (2) documentation demonstrating that a vehicle and a driver meet the standards determined by the Department of Human Services on vehicle and driver qualifications in section 256B.0625, subdivision 17, paragraph (c). new text end

Sec. 125.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Equipment and supply documentation requirements. new text end

new text begin (a) In addition to the requirements in subdivision 12, an equipment and supply services provider must for each documentation of the provision of a service include: new text end

new text begin (1) the recipient's assessed need for the equipment or supply; new text end

new text begin (2) the reason the equipment or supply is not covered by the Medicaid state plan; new text end

new text begin (3) the type and brand name of the equipment or supply delivered to or purchased by the recipient, including whether the equipment or supply was rented or purchased; new text end

new text begin (4) the quantity of the equipment or supply delivered or purchased; and new text end

new text begin (5) the cost of the equipment or supply if the amount paid for the service depends on the cost. new text end

new text begin (b) A provider must maintain a copy of the shipping invoice or a delivery service tracking log or other documentation showing the date of delivery that proves the equipment or supply was delivered to the recipient or a receipt if the equipment or supply was purchased by the recipient. new text end

Sec. 126.

Minnesota Statutes 2018, section 256B.4912, is amended by adding a subdivision to read:

new text begin Subd. 15. new text end

new text begin Adult day service documentation and billing requirements. new text end

new text begin (a) In addition to the requirements in subdivision 12, a provider of adult day services as defined in section 245A.02, subdivision 2a, and licensed under Minnesota Rules, parts 9555.9600 to 9555.9730, must maintain documentation of: new text end

new text begin (1) a needs assessment and current plan of care according to section 245A.143, subdivisions 4 to 7, or Minnesota Rules, part 9555.9700, for each recipient, if applicable; new text end

new text begin (2) attendance records as specified under section 245A.14, subdivision 14, paragraph (c), including the date of attendance with the day, month, and year; and the pickup and drop-off time in hours and minutes with a.m. and p.m. designations; new text end

new text begin (3) the monthly and quarterly program requirements in Minnesota Rules, part 9555.9710, subparts 1, items E and H; 3; 4; and 6, if applicable; new text end

new text begin (4) the name and qualification of each registered physical therapist, registered nurse, and registered dietitian who provides services to the adult day services or nonresidential program; and new text end

new text begin (5) the location where the service was provided. If the location is an alternate location from the usual place of service, the documentation must include the address, or a description if the address is not available, of both the origin site and destination site; the length of time at the alternate location with a.m. and p.m. designations; and a list of participants who went to the alternate location. new text end

new text begin (b) A provider must not exceed the provider's licensed capacity. If a provider exceeds the provider's licensed capacity, the department must recover all Minnesota health care programs payments from the date the provider exceeded licensed capacity. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2019. new text end

Sec. 127.

new text begin EVALUATION OF GRANT PROGRAMS; PROVEN-EFFECTIVE PRACTICES. new text end

new text begin (a) The commissioner of management and budget shall consult with the commissioner of human services to establish a plan to review the services delivered under grant programs administered by the commissioner of human services to determine whether the grant programs prioritize proven-effective or promising practices. new text end

new text begin (b) In accordance with the plan established in paragraph (a), the commissioner of management and budget, in consultation with the commissioner of human services, shall identify services to evaluate using an experimental or quasi-experimental design to provide information needed to modify or develop grant programs to promote proven-effective practices to improve the intended outcomes of the grant program. new text end

new text begin (c) The commissioner of management and budget, in consultation with the commissioner of human services, shall develop reports for the legislature and other stakeholders to provide information on incorporating proven-effective practices in program and budget decisions. The commissioner of management and budget, under Minnesota Statutes, section 15.08, may obtain additional relevant data to support the evaluation activities under this section. new text end

new text begin (d) For purposes of this section, the following terms have the meanings given: new text end

new text begin (1) "proven-effective practice" means a service or practice that offers a high level of research on effectiveness for at least one outcome of interest, as determined through multiple evaluations outside of Minnesota or one or more local evaluation in Minnesota. The research on effectiveness used to determine whether a service is proven-effective must use rigorously implemented experimental or quasi-experimental designs; and new text end

new text begin (2) "promising practices" means a service or practice that is supported by research demonstrating effectiveness for at least one outcome of interest, and includes a single evaluation that is not contradicted by other studies, but does not meet the full criteria for the proven-effective designation. The research on effectiveness used to determine whether a service is a promising practice must use rigorously implemented experimental or quasi-experimental designs. new text end

Sec. 128.

new text begin DIRECTION TO COMMISSIONER; CORRECTION ORDER ENFORCEMENT REVIEW. new text end

new text begin By January 1, 2020, the commissioner of human services shall develop and implement a process to review licensing inspection results provided under Minnesota Statutes, section 245A.16, subdivision 1, paragraph (h), clause (1), by county to identify trends in correction order enforcement. The commissioner shall develop guidance and training as needed to address any imbalance or inaccuracy in correction order enforcement. The commissioner shall include the results in the annual report on child care under Minnesota Statutes, section 245A.153, provided that the results are limited to summary data as defined in Minnesota Statutes, section 13.02, subdivision 19. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 129.

new text begin DIRECTION TO COMMISSIONER; RESPONSIBILITY FOR FRAUD INVESTIGATIONS IN PUBLIC PROGRAMS. new text end

new text begin No later than January 15, 2020, the commissioner of human services, in consultation with counties, shall report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over human services on recommendations for legislation that identifies and clarifies the responsibilities of the department and counties for fraud investigations in public programs administered by the commissioner. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 130.

new text begin DIRECTION TO COMMISSIONER; SELF-EMPLOYMENT INCOME IN PUBLIC ASSISTANCE PROGRAMS. new text end

new text begin No later than January 15, 2020, the commissioner of human services, in consultation with counties and other relevant stakeholders, shall report to the chairs and ranking minority members of the legislative committees and divisions with jurisdiction over human services with recommendations for legislation on how to count self-employment income for purposes of determining eligibility for and maintaining the integrity of public assistance programs. new text end

Sec. 131.

new text begin DIRECTION TO COMMISSIONER; SUBSTANCE USE DISORDER COUNTY STAFF QUALIFICATIONS. new text end

new text begin The commissioner of human services shall, in consultation with county agencies, identify specific training, education, and experience requirements that would qualify individuals employed by a county who are not alcohol and drug counselors to perform comprehensive assessments and treatment coordination. The commissioner shall provide a list of resources available to meet the necessary training and education requirements. By December 1, 2019, the commissioner shall provide a progress update to the chairs and ranking minority members of the legislative committees with jurisdiction over substance use disorder services and provide recommendations on any statutory changes needed to implement this section. new text end

Sec. 132.

new text begin FAMILY CHILD CARE TASK FORCE. new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin (a) The Family Child Care Task Force shall consist of 25 members, appointed as follows: new text end

new text begin (1) two members representing family child care providers from greater Minnesota, including one appointed by the speaker of the house and one appointed by the senate majority leader; new text end

new text begin (2) two members representing family care providers from the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2, including one appointed by the speaker of the house and one appointed by the senate majority leader; new text end

new text begin (3) one member appointed by the Minnesota Association of Child Care Professionals; new text end

new text begin (4) one member appointed by the Minnesota Child Care Provider Information Network; new text end

new text begin (5) two members from the house of representatives, including one appointed by the speaker of the house and one appointed by the minority leader; new text end

new text begin (6) two members from the senate, including one appointed by the senate majority leader and one appointed by the senate minority leader; new text end

new text begin (7) the commissioner of human services or designee; new text end

new text begin (8) two members representing Department of Human Services-recognized family child care associations from greater Minnesota, appointed by the commissioner of human services; new text end

new text begin (9) two members appointed by the Association of Minnesota Child Care Licensors, including one from greater Minnesota and one from the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2; new text end

new text begin (10) four parents of children enrolled in family child care programs, appointed by the commissioner of human services; new text end

new text begin (11) one member appointed by the Greater Minnesota Partnership; new text end

new text begin (12) one member appointed by the Minnesota Chamber of Commerce; new text end

new text begin (13) one member appointed by Child Care Aware of Minnesota; new text end

new text begin (14) one member appointed by the Minnesota Initiative Foundation; new text end

new text begin (15) one member appointed by Minnesota's Children's Cabinet; and new text end

new text begin (16) one member appointed by First Children's Finance. new text end

new text begin (b) Appointments to the task force must be made by July 15, 2019. new text end

new text begin Subd. 2. new text end

new text begin Compensation. new text end

new text begin Public members of the task force may be compensated as provided by Minnesota Statutes, section 15.059, subdivision 3. new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The task force shall: new text end

new text begin (1) identify difficulties that providers face regarding licensing and inspection, including specific licensing requirements that have led to the closure of family child care programs, by reviewing previous survey results and conducting follow-up surveys, if necessary; new text end

new text begin (2) propose regulatory reforms to improve licensing efficiency, including discussion of criteria that would qualify a provider for an abbreviated licensing review based on statistically significant key indicators that predict full compliance with all applicable rules and statutes, and discussion of the development of a risk-based, data driven, tiered violation system with corresponding enforcement mechanisms that are appropriate to the risk presented by a violation; new text end

new text begin (3) review existing variance authority delegated to counties and recommend changes, if needed; new text end

new text begin (4) recommend business development and technical assistance resources to promote provider recruitment and retention, including the potential need for mentors, a family child care provider network, or shared services; new text end

new text begin (5) develop recommendations for alternative child care delivery systems that could be more financially viable in smaller communities with unmet child care capacity needs in greater Minnesota, which could include new licensure models for large group family child care or small capacity child care centers; new text end

new text begin (6) review Parent Aware program participation and identify obstacles and suggested improvements; new text end

new text begin (7) review how trainings for licensed family child care providers are offered, provided, coordinated, and approved, and make a recommendation on the establishment of a family child care continuing education training committee, to advise on compliance with federal and state training requirements; and new text end

new text begin (8) consider methods to improve access to and understanding of the rules and statutes governing family child care providers. new text end

new text begin Subd. 4. new text end

new text begin Officers; meetings. new text end

new text begin (a) The task force shall be cochaired by the task force member from the majority party of the house of representatives and the task force member from the majority party of the senate, and may elect other officers as necessary. new text end

new text begin (b) The commissioner of human services shall convene the first meeting by August 15, 2019. new text end

new text begin (c) The cochairs shall alternate possession of the gavel between meetings. new text end

new text begin (d) Each meeting shall be moderated by a neutral third-party facilitator. new text end

new text begin (e) The agenda for each meeting shall be determined by the cochairs, the commissioner of human services or designee, and the facilitator. new text end

new text begin (d) Meetings of the task force are subject to the Minnesota Open Meeting Law under Minnesota Statutes, chapter 13D. new text end

new text begin Subd. 5. new text end

new text begin Report required. new text end

new text begin The task force shall submit an interim written report by March 1, 2020, and a final written report by February 1, 2021, to the chairs and ranking minority members of the committees in the house of representatives and the senate with jurisdiction over child care. The reports shall explain the task force's findings and recommendations relating to each of the duties under subdivision 3, and include any draft legislation necessary to implement the recommendations. new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The task force expires upon submission of the final report in subdivision 5 or February 1, 2021, whichever is later. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 133.

new text begin INSTRUCTION TO COMMISSIONER; REVIEW OF CHILD CARE LICENSING AND BACKGROUND STUDY PROVISIONS. new text end

new text begin The commissioner of human services shall review existing statutes and rules relating to child care licensing and background study requirements and propose legislation for the 2020 legislative session that eliminates unnecessary and duplicative record keeping or documentation requirements for child care providers. The commissioner shall also establish a process for child care providers to electronically submit requested information to the commissioner. new text end

Sec. 134.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Rules, parts 9502.0425, subparts 4, 16, and 17; and 9503.0155, subpart 8, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Minnesota Statutes 2018, sections 119B.125, subdivision 8; and 245H.10, subdivision 2, new text end new text begin are repealed. new text end

new text begin (c) new text end new text begin Minnesota Rules, part 2960.3030, subpart 3, new text end new text begin is repealed. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraphs (a) and (b) are effective September 30, 2019. Paragraph (c) is effective October 1, 2019. new text end

ARTICLE 3

DIRECT CARE AND TREATMENT

Section 1.

Minnesota Statutes 2018, section 246.54, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Administrative review of county liability for cost of care. new text end

new text begin (a) The county of financial responsibility may submit a written request for administrative review by the commissioner of the county's payment of the cost of care when a delay in discharge of a client from a regional treatment center, state-operated community-based behavioral health hospital, or other state-operated facility results from the following actions by the facility: new text end

new text begin (1) the facility did not provide notice to the county that the facility has determined that it is clinically appropriate for a client to be discharged; new text end

new text begin (2) the notice to the county that the facility has determined that it is clinically appropriate for a client to be discharged was communicated on a holiday or weekend; new text end

new text begin (3) the required documentation or procedures for discharge were not completed in order for the discharge to occur in a timely manner; or new text end

new text begin (4) the facility disagrees with the county's discharge plan. new text end

new text begin (b) The county of financial responsibility may not appeal the determination that it is clinically appropriate for a client to be discharged from a regional treatment center, state-operated community-based behavioral health hospital, or other state-operated facility. new text end

new text begin (c) The commissioner must evaluate the request for administrative review and determine if the facility's actions listed in paragraph (a) caused undue delay in discharging the client. If the commissioner determines that the facility's actions listed in paragraph (a) caused undue delay in discharging the client, the county's liability must be reduced to the level of the cost of care for a client whose stay in a facility is determined to be clinically appropriate, effective on the date of the facility's action or failure to act that caused the delay. The commissioner's determination under this subdivision is final and not subject to appeal. new text end

new text begin (d) If a county's liability is reduced pursuant to paragraph (c), a county's liability must return to the level of the cost of care for a client whose stay in a facility is determined to no longer be appropriate effective on the date the facility rectifies the action or failure to act that caused the delay under paragraph (a). new text end

new text begin (e) Any difference in the county cost of care liability resulting from administrative review under this subdivision must not be billed to the client or applied to future reimbursement from the client's estate or relatives. new text end

Sec. 2.

Minnesota Statutes 2018, section 246B.10, is amended to read:

246B.10 LIABILITY OF COUNTY; REIMBURSEMENT.

new text begin (a) new text end The civilly committed sex offender's county shall pay to the state a portion of the cost of care provided in the Minnesota sex offender program to a civilly committed sex offender who has legally settled in that county.

new text begin (b)new text end A county's payment must be made from the county's own sources of revenue and payments mustnew text begin :new text end

new text begin (1) equal ten percent of the cost of care, as determined by the commissioner, for each day or portion of a day that the civilly committed sex offender spends at the facility for individuals admitted to the Minnesota sex offender program before August 1, 2011; or new text end

new text begin (2)new text end equal 25 percent of the cost of care, as determined by the commissioner, for each day or portion of a daydeleted text begin ,deleted text end that the civilly committed sex offendernew text begin :new text end

new text begin (i) new text end spends at the facilitydeleted text begin .deleted text end new text begin for individuals admitted to the Minnesota sex offender program on or after August 1, 2011; ornew text end

new text begin (ii) receives services within a program operated by the Minnesota sex offender program while on provisional discharge. new text end

new text begin (c) The county is responsible for paying the state the remaining amountnew text end if payments received by the state under this chapter exceednew text begin :new text end

new text begin (1) 90 percent of the cost of care for individuals admitted to the Minnesota sex offender program before August 1, 2011; or new text end

new text begin (2)new text end 75 percent of the cost of caredeleted text begin , the county is responsible for paying the state the remaining amountdeleted text end new text begin for individuals:new text end

new text begin (i) admitted to the Minnesota sex offender program on or after August 1, 2011; or new text end

new text begin (ii) receiving services within a program operated by the Minnesota sex offender program while on provisional dischargenew text end .

new text begin (d)new text end The county is not entitled to reimbursement from the civilly committed sex offender, the civilly committed sex offender's estate, or from the civilly committed sex offender's relatives, except as provided in section 246B.07.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019. new text end

Sec. 3.

new text begin DIRECTION TO COMMISSIONER; REPORT REQUIRED; DISCHARGE DELAY REDUCTION. new text end

new text begin No later than January 1, 2023, the commissioner of human services must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over human services that provides an update on county and state efforts to reduce the number of days clients spend in state-operated facilities after discharge from the facility has been determined to be clinically appropriate. The report must also include information on the fiscal impact of clinically inappropriate stays in these facilities. new text end

Sec. 4.

new text begin REPEALER. new text end

new text begin (a) new text end new text begin Minnesota Statutes 2018, section 246.18, subdivisions 8 and 9, new text end new text begin are repealed. new text end

new text begin (b) new text end new text begin Laws 2010, First Special Session chapter 1, article 25, section 3, subdivision 10, new text end new text begin is repealed. new text end

ARTICLE 4

CONTINUING CARE FOR OLDER ADULTS

Section 1.

Minnesota Statutes 2018, section 144A.071, subdivision 1a, is amended to read:

Subd. 1a.

Definitions.

For purposes of sections 144A.071 to 144A.073, the following terms have the meanings given them:

(a) "Attached fixtures" has the meaning given in Minnesota Rules, part 9549.0020, subpart 6.

(b) deleted text begin "Buildings"deleted text end new text begin "Building"new text end has the meaning given in deleted text begin Minnesota Rules, part 9549.0020, subpart 7deleted text end new text begin section 256R.261, subdivision 4new text end .

(c) "Capital assets" has the meaning given in section deleted text begin 256B.421, subdivision 16deleted text end new text begin 256R.02, subdivision 8new text end .

(d) "Commenced construction" means that all of the following conditions were met: the final working drawings and specifications were approved by the commissioner of health; the construction contracts were let; a timely construction schedule was developed, stipulating dates for beginning, achieving various stages, and completing construction; and all zoning and building permits were applied for.

(e) "Completion date" means the date on which clearance for the construction project is issued, or if a clearance for the construction project is not required, the date on which the construction project assets are available for facility use.

(f) "Construction" means any erection, building, alteration, reconstruction, modernization, or improvement necessary to comply with the nursing home licensure rules.

(g) "Construction project" means:

(1) a capital asset addition to, or replacement of a nursing home or certified boarding care home that results in new space or the remodeling of or renovations to existing facility space; and

(2) the remodeling or renovation of existing facility space the use of which is modified as a result of the project described in clause (1). This existing space and the project described in clause (1) must be used for the functions as designated on the construction plans on completion of the project described in clause (1) for a period of not less than 24 months.

(h) "Depreciation guidelines" deleted text begin means the most recent publication of "The Estimated Useful Lives of Depreciable Hospital Assets," issued by the American Hospital Association, 840 North Lake Shore Drive, Chicago, Illinois, 60611deleted text end new text begin has the meaning given in section 256R.261, subdivision 11new text end .

(i) "New licensed" or "new certified beds" means:

(1) newly constructed beds in a facility or the construction of a new facility that would increase the total number of licensed nursing home beds or certified boarding care or nursing home beds in the state; or

(2) newly licensed nursing home beds or newly certified boarding care or nursing home beds that result from remodeling of the facility that involves relocation of beds but does not result in an increase in the total number of beds, except when the project involves the upgrade of boarding care beds to nursing home beds, as defined in section 144A.073, subdivision 1. "Remodeling" includes any of the type of conversion, renovation, replacement, or upgrading projects as defined in section 144A.073, subdivision 1.

deleted text begin (j) "Project construction costs" means the cost of the following items that have a completion date within 12 months before or after the completion date of the project described in item (g), clause (1): deleted text end

deleted text begin (1) facility capital asset additions; deleted text end

deleted text begin (2) replacements; deleted text end

deleted text begin (3) renovations; deleted text end

deleted text begin (4) remodeling projects; deleted text end

deleted text begin (5) construction site preparation costs; deleted text end

deleted text begin (6) related soft costs; and deleted text end

deleted text begin (7) the cost of new technology implemented as part of the construction project and depreciable equipment directly identified to the project, if the construction costs for clauses (1) to (6) exceed the threshold for additions and replacements stated in section 256B.431, subdivision 16. Technology and depreciable equipment shall be included in the project construction costs unless a written election is made by the facility, to not include it in the facility's appraised value for purposes of Minnesota Rules, part 9549.0020, subpart 5. Debt incurred for purchase of technology and depreciable equipment shall be included as allowable debt for purposes of Minnesota Rules, part 9549.0060, subpart 5, items A and C, unless the written election is to not include it. Any new technology and depreciable equipment included in the project construction costs that the facility elects not to include in its appraised value and allowable debt shall be treated as provided in section 256B.431, subdivision 17, deleted text end deleted text begin paragraph (b). Written election under this paragraph must be included in the facility's request for the rate change related to the project, and this election may not be changed. deleted text end

deleted text begin (k) "Technology" means information systems or devices that make documentation, charting, and staff time more efficient or encourage and allow for care through alternative settings including, but not limited to, touch screens, monitors, hand-helds, swipe cards, motion detectors, pagers, telemedicine, medication dispensers, and equipment to monitor vital signs and self-injections, and to observe skin and other conditions. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 2.

Minnesota Statutes 2018, section 144A.071, subdivision 2, is amended to read:

Subd. 2.

Moratorium.

The commissioner of health, in coordination with the commissioner of human services, shall deny each request for new licensed or certified nursing home or certified boarding care beds except as provided in subdivision 3 or 4a, or section 144A.073. "Certified bed" means a nursing home bed or a boarding care bed certified by the commissioner of health for the purposes of the medical assistance program, under United States Code, title 42, sections 1396 et seq. Certified beds in facilities which do not allow medical assistance intake shall be deemed to be decertified for purposes of this section only.

The commissioner of human services, in coordination with the commissioner of health, shall deny any request to issue a license under section 252.28 and chapter 245A to a nursing home or boarding care home, if that license would result in an increase in the medical assistance reimbursement amount.

In addition, the commissioner of health must not approve any construction project whose cost exceeds $1,000,000, unless:

(a) any construction costs exceeding $1,000,000 are not added to the facility's appraised value and are not included in the facility's payment rate for reimbursement under the medical assistance program; or

(b) the project:

(1) has been approved through the process described in section 144A.073;

(2) meets an exception in subdivision 3 or 4a;

(3) is necessary to correct violations of state or federal law issued by the commissioner of health;

(4) is necessary to repair or replace a portion of the facility that was damaged by fire, lightning, ground shifts, or other such hazards, including environmental hazards, provided that the provisions of subdivision 4a, clause (a), are met; new text begin ornew text end

deleted text begin (5) as of May 1, 1992, the facility has submitted to the commissioner of health written documentation evidencing that the facility meets the "commenced construction" definition as specified in subdivision 1a, paragraph (d), or that substantial steps have been taken prior to April 1, 1992, relating to the construction project. "Substantial steps" require that the facility has made arrangements with outside parties relating to the construction project and include the hiring of an architect or construction firm, submission of preliminary plans to the Department of Health or documentation from a financial institution that financing arrangements for the construction project have been made; or deleted text end new text begin new text end

deleted text begin (6)deleted text end new text begin (5)new text end is being proposed by a licensed nursing facility that is not certified to participate in the medical assistance program and will not result in new licensed or certified beds.

Prior to the final plan approval of any construction project, the deleted text begin commissionerdeleted text end new text begin commissionersnew text end of health new text begin and human services new text end shall be provided with an itemized cost estimate for the project construction costs. If a construction project is anticipated to be completed in phases, the total estimated cost of all phases of the project shall be submitted to the deleted text begin commissionerdeleted text end new text begin commissionersnew text end and shall be considered as one construction project. Once the construction project is completed and prior to the final clearance by the deleted text begin commissionerdeleted text end new text begin commissionersnew text end , the total project construction costs for the construction project shall be submitted to the deleted text begin commissionerdeleted text end new text begin commissionersnew text end . If the final project construction cost exceeds the dollar threshold in this subdivision, the commissioner of human services shall not recognize any of the project construction costs or the related financing costs in excess of this threshold in establishing the facility's property-related payment rate.

The dollar thresholds for construction projects are as follows: for construction projects other than those authorized in clauses (1) to (6), the dollar threshold is $1,000,000. For projects authorized after July 1, 1993, under clause (1), the dollar threshold is the cost estimate submitted with a proposal for an exception under section 144A.073, plus inflation as calculated according to section 256B.431, subdivision 3f, paragraph (a). For projects authorized under clauses (2) to (4), the dollar threshold is the itemized estimate project construction costs submitted to the commissioner of health at the time of final plan approval, plus inflation as calculated according to section 256B.431, subdivision 3f, paragraph (a).

The commissioner of health shall adopt rules to implement this section or to amend the emergency rules for granting exceptions to the moratorium on nursing homes under section 144A.073.

Sec. 3.

Minnesota Statutes 2018, section 144A.071, subdivision 3, is amended to read:

Subd. 3.

Exceptions authorizing increase in beds; hardship areas.

(a) The commissioner of health, in coordination with the commissioner of human services, may approve the addition of new licensed and Medicare and Medicaid certified nursing home beds, using the criteria and process set forth in this subdivision.

(b) The commissioner, in cooperation with the commissioner of human services, shall consider the following criteria when determining that an area of the state is a hardship area with regard to access to nursing facility services:

(1) a low number of beds per thousand in a specified area using as a standard the beds per thousand people age 65 and older, in five year age groups, using data from the most recent census and population projections, weighted by each group's most recent nursing home utilization, of the county at the 20th percentile, as determined by the commissioner of human services;

(2) a high level of out-migration for nursing facility services associated with a described area from the county or counties of residence to other Minnesota counties, as determined by the commissioner of human services, using as a standard an amount greater than the out-migration of the county ranked at the 50th percentile;

(3) an adequate level of availability of noninstitutional long-term care services measured as public spending for home and community-based long-term care services per individual age 65 and older, in five year age groups, using data from the most recent census and population projections, weighted by each group's most recent nursing home utilization, as determined by the commissioner of human services using as a standard an amount greater than the 50th percentile of counties;

(4) there must be a declaration of hardship resulting from insufficient access to nursing home beds by local county agencies and area agencies on aging; and

(5) other factors that may demonstrate the need to add new nursing facility beds.

(c) On August 15 of odd-numbered years, the commissioner, in cooperation with the commissioner of human services, may publish in the State Register a request for information in which interested parties, using the data provided under section 144A.351, along with any other relevant data, demonstrate that a specified area is a hardship area with regard to access to nursing facility services. For a response to be considered, the commissioner must receive it by November 15. The commissioner shall make responses to the request for information available to the public and shall allow 30 days for comment. The commissioner shall review responses and comments and determine if any areas of the state are to be declared hardship areas.

(d) For each designated hardship area determined in paragraph (c), the commissioner shall publish a request for proposals in accordance with section 144A.073 and Minnesota Rules, parts 4655.1070 to 4655.1098. The request for proposals must be published in the State Register by March 15 following receipt of responses to the request for information. The request for proposals must specify the number of new beds which may be added in the designated hardship area, which must not exceed the number which, if added to the existing number of beds in the area, including beds in layaway status, would have prevented it from being determined to be a hardship area under paragraph (b), clause (1). Beginning July 1, 2011, the number of new beds approved must not exceed 200 beds statewide per biennium. After June 30, 2019, the number of new beds that may be approved in a biennium must not exceed 300 statewide. For a proposal to be considered, the commissioner must receive it within six months of the publication of the request for proposals. The commissioner shall review responses to the request for proposals and shall approve or disapprove each proposal by the following July 15, in accordance with section 144A.073 and Minnesota Rules, parts 4655.1070 to 4655.1098. The commissioner shall base approvals or disapprovals on a comparison and ranking of proposals using only the criteria in subdivision 4a. Approval of a proposal expires after 18 months unless the facility has added the new beds using existing space, subject to approval by the commissioner, or has commenced construction as defined in subdivision 1a, paragraph (d). If, after the approved beds have been added, fewer than 50 percent of the beds in a facility are newly licensed, the operating payment rates previously in effect shall remain. If, after the approved beds have been added, 50 percent or more of the beds in a facility are newly licensed, operatingnew text begin and external fixednew text end payment rates shall be determined according to deleted text begin Minnesota Rules, part 9549.0057, using the limits under sections 256R.23, subdivision 5, and 256R.24, subdivision 3. External fixed costs payment rates must be determined according to section 256R.25deleted text end new text begin section 256R.21, subdivision 5new text end . Property payment rates for facilities with beds added under this subdivision must be determined deleted text begin in the same manner as rate determinations resulting from projects approved and completed under section 144A.073deleted text end new text begin under section 256R.26new text end .

(e) The commissioner may:

(1) certify or license new beds in a new facility that is to be operated by the commissioner of veterans affairs or when the costs of constructing and operating the new beds are to be reimbursed by the commissioner of veterans affairs or the United States Veterans Administration; and

(2) license or certify beds in a facility that has been involuntarily delicensed or decertified for participation in the medical assistance program, provided that an application for relicensure or recertification is submitted to the commissioner by an organization that is not a related organization as defined in section 256R.02, subdivision 43, to the prior licensee within 120 days after delicensure or decertification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 4.

Minnesota Statutes 2018, section 144A.071, subdivision 4a, is amended to read:

Subd. 4a.

Exceptions for replacement beds.

It is in the best interest of the state to ensure that nursing homes and boarding care homes continue to meet the physical plant licensing and certification requirements by permitting certain construction projects. Facilities should be maintained in condition to satisfy the physical and emotional needs of residents while allowing the state to maintain control over nursing home expenditure growth.

The commissioner of health in coordination with the commissioner of human services, may approve the renovation, replacement, upgrading, or relocation of a nursing home or boarding care home, under the following conditions:

(a) to license or certify beds in a new facility constructed to replace a facility or to make repairs in an existing facility that was destroyed or damaged after June 30, 1987, by fire, lightning, or other hazard provided:

(i) destruction was not caused by the intentional act of or at the direction of a controlling person of the facility;

(ii) at the time the facility was destroyed or damaged the controlling persons of the facility maintained insurance coverage for the type of hazard that occurred in an amount that a reasonable person would conclude was adequate;

(iii) the net proceeds from an insurance settlement for the damages caused by the hazard are applied to the cost of the new facility or repairs;

(iv) the number of licensed and certified beds in the new facility does not exceed the number of licensed and certified beds in the destroyed facility; and

(v) the commissioner determines that the replacement beds are needed to prevent an inadequate supply of beds.

Project construction costs incurred for repairs authorized under this clause shall not be considered in the dollar threshold amount defined in subdivision 2;

(b) to license or certify beds that are moved from one location to another within a nursing home facility, provided the total costs of remodeling performed in conjunction with the relocation of beds does not exceed $1,000,000;

(c) to license or certify beds in a project recommended for approval under section 144A.073;

(d) to license or certify beds that are moved from an existing state nursing home to a different state facility, provided there is no net increase in the number of state nursing home beds;

(e) to certify and license as nursing home beds boarding care beds in a certified boarding care facility if the beds meet the standards for nursing home licensure, or in a facility that was granted an exception to the moratorium under section 144A.073, and if the cost of any remodeling of the facility does not exceed $1,000,000. If boarding care beds are licensed as nursing home beds, the number of boarding care beds in the facility must not increase beyond the number remaining at the time of the upgrade in licensure. The provisions contained in section 144A.073 regarding the upgrading of the facilities do not apply to facilities that satisfy these requirements;

(f) to license and certify up to 40 beds transferred from an existing facility owned and operated by the Amherst H. Wilder Foundation in the city of St. Paul to a new unit at the same location as the existing facility that will serve persons with Alzheimer's disease and other related disorders. The transfer of beds may occur gradually or in stages, provided the total number of beds transferred does not exceed 40. At the time of licensure and certification of a bed or beds in the new unit, the commissioner of health shall delicense and decertify the same number of beds in the existing facility. As a condition of receiving a license or certification under this clause, the facility must make a written commitment to the commissioner of human services that it will not seek to receive an increase in its property-related payment rate as a result of the transfers allowed under this paragraph;

(g) to license and certify nursing home beds to replace currently licensed and certified boarding care beds which may be located either in a remodeled or renovated boarding care or nursing home facility or in a remodeled, renovated, newly constructed, or replacement nursing home facility within the identifiable complex of health care facilities in which the currently licensed boarding care beds are presently located, provided that the number of boarding care beds in the facility or complex are decreased by the number to be licensed as nursing home beds and further provided that, if the total costs of new construction, replacement, remodeling, or renovation exceed ten percent of the appraised value of the facility or $200,000, whichever is less, the facility makes a written commitment to the commissioner of human services that it will not seek to receive an increase in its property-related payment rate by reason of the new construction, replacement, remodeling, or renovation. The provisions contained in section 144A.073 regarding the upgrading of facilities do not apply to facilities that satisfy these requirements;

(h) to license as a nursing home and certify as a nursing facility a facility that is licensed as a boarding care facility but not certified under the medical assistance program, but only if the commissioner of human services certifies to the commissioner of health that licensing the facility as a nursing home and certifying the facility as a nursing facility will result in a net annual savings to the state general fund of $200,000 or more;

(i) to certify, after September 30, 1992, and prior to July 1, 1993, existing nursing home beds in a facility that was licensed and in operation prior to January 1, 1992;

(j) to license and certify new nursing home beds to replace beds in a facility acquired by the Minneapolis Community Development Agency as part of redevelopment activities in a city of the first class, provided the new facility is located within three miles of the site of the old facility. Operating and property costs for the new facility must be determined and allowed under section 256B.431 or 256B.434 or chapter 256R;

(k) to license and certify up to 20 new nursing home beds in a community-operated hospital and attached convalescent and nursing care facility with 40 beds on April 21, 1991, that suspended operation of the hospital in April 1986. The commissioner of human services shall provide the facility with the same per diem property-related payment rate for each additional licensed and certified bed as it will receive for its existing 40 beds;

(l) to license or certify beds in renovation, replacement, or upgrading projects as defined in section 144A.073, subdivision 1, so long as the cumulative total costs of the facility's remodeling projects do not exceed $1,000,000;

(m) to license and certify beds that are moved from one location to another for the purposes of converting up to five four-bed wards to single or double occupancy rooms in a nursing home that, as of January 1, 1993, was county-owned and had a licensed capacity of 115 beds;

(n) to allow a facility that on April 16, 1993, was a 106-bed licensed and certified nursing facility located in Minneapolis to layaway all of its licensed and certified nursing home beds. These beds may be relicensed and recertified in a newly constructed teaching nursing home facility affiliated with a teaching hospital upon approval by the legislature. The proposal must be developed in consultation with the interagency committee on long-term care planning. The beds on layaway status shall have the same status as voluntarily delicensed and decertified beds, except that beds on layaway status remain subject to the surcharge in section 256.9657. This layaway provision expires July 1, 1998;

(o) to allow a project which will be completed in conjunction with an approved moratorium exception project for a nursing home in southern Cass County and which is directly related to that portion of the facility that must be repaired, renovated, or replaced, to correct an emergency plumbing problem for which a state correction order has been issued and which must be corrected by August 31, 1993;

(p) to allow a facility that on April 16, 1993, was a 368-bed licensed and certified nursing facility located in Minneapolis to layaway, upon 30 days prior written notice to the commissioner, up to 30 of the facility's licensed and certified beds by converting three-bed wards to single or double occupancy. Beds on layaway status shall have the same status as voluntarily delicensed and decertified beds except that beds on layaway status remain subject to the surcharge in section 256.9657, remain subject to the license application and renewal fees under section 144A.07 and shall be subject to a $100 per bed reactivation fee. In addition, at any time within three years of the effective date of the layaway, the beds on layaway status may be:

(1) relicensed and recertified upon relocation and reactivation of some or all of the beds to an existing licensed and certified facility or facilities located in Pine River, Brainerd, or International Falls; provided that the total project construction costs related to the relocation of beds from layaway status for any facility receiving relocated beds may not exceed the dollar threshold provided in subdivision 2 unless the construction project has been approved through the moratorium exception process under section 144A.073;

(2) relicensed and recertified, upon reactivation of some or all of the beds within the facility which placed the beds in layaway status, if the commissioner has determined a need for the reactivation of the beds on layaway status.

The property-related payment rate of a facility placing beds on layaway status must be adjusted by the incremental change in its rental per diem after recalculating the rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c). The property-related payment rate for a facility relicensing and recertifying beds from layaway status must be adjusted by the incremental change in its rental per diem after recalculating its rental per diem using the number of beds after the relicensing to establish the facility's capacity day divisor, which shall be effective the first day of the month following the month in which the relicensing and recertification became effective. Any beds remaining on layaway status more than three years after the date the layaway status became effective must be removed from layaway status and immediately delicensed and decertified;

(q) to license and certify beds in a renovation and remodeling project to convert 12 four-bed wards into 24 two-bed rooms, expand space, and add improvements in a nursing home that, as of January 1, 1994, met the following conditions: the nursing home was located in Ramsey County; had a licensed capacity of 154 beds; and had been ranked among the top 15 applicants by the 1993 moratorium exceptions advisory review panel. The total project construction cost estimate for this project must not exceed the cost estimate submitted in connection with the 1993 moratorium exception process;

(r) to license and certify up to 117 beds that are relocated from a licensed and certified 138-bed nursing facility located in St. Paul to a hospital with 130 licensed hospital beds located in South St. Paul, provided that the nursing facility and hospital are owned by the same or a related organization and that prior to the date the relocation is completed the hospital ceases operation of its inpatient hospital services at that hospital. After relocation, the nursing facility's status shall be the same as it was prior to relocation. The nursing facility's property-related payment rate resulting from the project authorized in this paragraph shall become effective no earlier than April 1, 1996. For purposes of calculating the incremental change in the facility's rental per diem resulting from this project, the allowable appraised value of the nursing facility portion of the existing health care facility physical plant prior to the renovation and relocation may not exceed $2,490,000;

(s) to license and certify two beds in a facility to replace beds that were voluntarily delicensed and decertified on June 28, 1991;

(t) to allow 16 licensed and certified beds located on July 1, 1994, in a 142-bed nursing home and 21-bed boarding care home facility in Minneapolis, notwithstanding the licensure and certification after July 1, 1995, of the Minneapolis facility as a 147-bed nursing home facility after completion of a construction project approved in 1993 under section 144A.073, to be laid away upon 30 days' prior written notice to the commissioner. Beds on layaway status shall have the same status as voluntarily delicensed or decertified beds except that they shall remain subject to the surcharge in section 256.9657. The 16 beds on layaway status may be relicensed as nursing home beds and recertified at any time within five years of the effective date of the layaway upon relocation of some or all of the beds to a licensed and certified facility located in Watertown, provided that the total project construction costs related to the relocation of beds from layaway status for the Watertown facility may not exceed the dollar threshold provided in subdivision 2 unless the construction project has been approved through the moratorium exception process under section 144A.073.

The property-related payment rate of the facility placing beds on layaway status must be adjusted by the incremental change in its rental per diem after recalculating the rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c). The property-related payment rate for the facility relicensing and recertifying beds from layaway status must be adjusted by the incremental change in its rental per diem after recalculating its rental per diem using the number of beds after the relicensing to establish the facility's capacity day divisor, which shall be effective the first day of the month following the month in which the relicensing and recertification became effective. Any beds remaining on layaway status more than five years after the date the layaway status became effective must be removed from layaway status and immediately delicensed and decertified;

(u) to license and certify beds that are moved within an existing area of a facility or to a newly constructed addition which is built for the purpose of eliminating three- and four-bed rooms and adding space for dining, lounge areas, bathing rooms, and ancillary service areas in a nursing home that, as of January 1, 1995, was located in Fridley and had a licensed capacity of 129 beds;

(v) to relocate 36 beds in Crow Wing County and four beds from Hennepin County to a 160-bed facility in Crow Wing County, provided all the affected beds are under common ownership;

(w) to license and certify a total replacement project of up to 49 beds located in Norman County that are relocated from a nursing home destroyed by flood and whose residents were relocated to other nursing homes. The operating cost payment rates for the new nursing facility shall be determined based on the interim and settle-up payment provisions of deleted text begin Minnesota Rules, part 9549.0057,deleted text end new text begin section 256R.27new text end and the reimbursement provisions of chapter 256R. Property-related reimbursement rates shall be determined under section 256R.26, taking into account any federal or state flood-related loans or grants provided to the facility;

(x) to license and certify to the licensee of a nursing home in Polk County that was destroyed by flood in 1997 replacement projects with a total of up to 129 beds, with at least 25 beds to be located in Polk County and up to 104 beds distributed among up to three other counties. These beds may only be distributed to counties with fewer than the median number of age intensity adjusted beds per thousand, as most recently published by the commissioner of human services. If the licensee chooses to distribute beds outside of Polk County under this paragraph, prior to distributing the beds, the commissioner of health must approve the location in which the licensee plans to distribute the beds. The commissioner of health shall consult with the commissioner of human services prior to approving the location of the proposed beds. The licensee may combine these beds with beds relocated from other nursing facilities as provided in section 144A.073, subdivision 3c. The operating payment rates for the new nursing facilities shall be determined based on the interim and settle-up payment provisions of Minnesota Rules, parts 9549.0010 to 9549.0080. Property-related reimbursement rates shall be determined under section 256R.26. If the replacement beds permitted under this paragraph are combined with beds from other nursing facilities, the rates shall be calculated as the weighted average of rates determined as provided in this paragraph and section 256R.50;

(y) to license and certify beds in a renovation and remodeling project to convert 13 three-bed wards into 13 two-bed rooms and 13 single-bed rooms, expand space, and add improvements in a nursing home that, as of January 1, 1994, met the following conditions: the nursing home was located in Ramsey County, was not owned by a hospital corporation, had a licensed capacity of 64 beds, and had been ranked among the top 15 applicants by the 1993 moratorium exceptions advisory review panel. The total project construction cost estimate for this project must not exceed the cost estimate submitted in connection with the 1993 moratorium exception process;

(z) to license and certify up to 150 nursing home beds to replace an existing 285 bed nursing facility located in St. Paul. The replacement project shall include both the renovation of existing buildings and the construction of new facilities at the existing site. The reduction in the licensed capacity of the existing facility shall occur during the construction project as beds are taken out of service due to the construction process. Prior to the start of the construction process, the facility shall provide written information to the commissioner of health describing the process for bed reduction, plans for the relocation of residents, and the estimated construction schedule. The relocation of residents shall be in accordance with the provisions of law and rule;

(aa) to allow the commissioner of human services to license an additional 36 beds to provide residential services for the physically disabled under Minnesota Rules, parts 9570.2000 to 9570.3400, in a 198-bed nursing home located in Red Wing, provided that the total number of licensed and certified beds at the facility does not increase;

(bb) to license and certify a new facility in St. Louis County with 44 beds constructed to replace an existing facility in St. Louis County with 31 beds, which has resident rooms on two separate floors and an antiquated elevator that creates safety concerns for residents and prevents nonambulatory residents from residing on the second floor. The project shall include the elimination of three- and four-bed rooms;

(cc) to license and certify four beds in a 16-bed certified boarding care home in Minneapolis to replace beds that were voluntarily delicensed and decertified on or before March 31, 1992. The licensure and certification is conditional upon the facility periodically assessing and adjusting its resident mix and other factors which may contribute to a potential institution for mental disease declaration. The commissioner of human services shall retain the authority to audit the facility at any time and shall require the facility to comply with any requirements necessary to prevent an institution for mental disease declaration, including delicensure and decertification of beds, if necessary;

(dd) to license and certify 72 beds in an existing facility in Mille Lacs County with 80 beds as part of a renovation project. The renovation must include construction of an addition to accommodate ten residents with beginning and midstage dementia in a self-contained living unit; creation of three resident households where dining, activities, and support spaces are located near resident living quarters; designation of four beds for rehabilitation in a self-contained area; designation of 30 private rooms; and other improvements;

(ee) to license and certify beds in a facility that has undergone replacement or remodeling as part of a planned closure under section 256R.40;

(ff) to license and certify a total replacement project of up to 124 beds located in Wilkin County that are in need of relocation from a nursing home significantly damaged by flood. The operating cost payment rates for the new nursing facility shall be determined based on the interim and settle-up payment provisions of deleted text begin Minnesota Rules, part 9549.0057,deleted text end new text begin section 256R.27new text end and the reimbursement provisions of chapter 256R. Property-related reimbursement rates shall be determined under section 256R.26, taking into account any federal or state flood-related loans or grants provided to the facility;

(gg) to allow the commissioner of human services to license an additional nine beds to provide residential services for the physically disabled under Minnesota Rules, parts 9570.2000 to 9570.3400, in a 240-bed nursing home located in Duluth, provided that the total number of licensed and certified beds at the facility does not increase;

(hh) to license and certify up to 120 new nursing facility beds to replace beds in a facility in Anoka County, which was licensed for 98 beds as of July 1, 2000, provided the new facility is located within four miles of the existing facility and is in Anoka County. Operating and property rates shall be determined and allowed under chapter 256R and Minnesota Rules, parts 9549.0010 to 9549.0080; or

(ii) to transfer up to 98 beds of a 129-licensed bed facility located in Anoka County that, as of March 25, 2001, is in the active process of closing, to a 122-licensed bed nonprofit nursing facility located in the city of Columbia Heights or its affiliate. The transfer is effective when the receiving facility notifies the commissioner in writing of the number of beds accepted. The commissioner shall place all transferred beds on layaway status held in the name of the receiving facility. The layaway adjustment provisions of section 256B.431, subdivision 30, do not apply to this layaway. The receiving facility may only remove the beds from layaway for recertification and relicensure at the receiving facility's current site, or at a newly constructed facility located in Anoka County. The receiving facility must receive statutory authorization before removing these beds from layaway status, or may remove these beds from layaway status if removal from layaway status is part of a moratorium exception project approved by the commissioner under section 144A.073.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 5.

Minnesota Statutes 2018, section 144A.071, subdivision 4c, is amended to read:

Subd. 4c.

Exceptions for replacement beds after June 30, 2003.

(a) The commissioner of health, in coordination with the commissioner of human services, may approve the renovation, replacement, upgrading, or relocation of a nursing home or boarding care home, under the following conditions:

(1) to license and certify an 80-bed city-owned facility in Nicollet County to be constructed on the site of a new city-owned hospital to replace an existing 85-bed facility attached to a hospital that is also being replaced. The threshold allowed for this project under section 144A.073 shall be the maximum amount available to pay the additional medical assistance costs of the new facility;

(2) to license and certify 29 beds to be added to an existing 69-bed facility in St. Louis County, provided that the 29 beds must be transferred from active or layaway status at an existing facility in St. Louis County that had 235 beds on April 1, 2003.

The licensed capacity at the 235-bed facility must be reduced to 206 beds, but the payment rate at that facility shall not be adjusted as a result of this transfer. The operating payment rate of the facility adding beds after completion of this project shall be the same as it was on the day prior to the day the beds are licensed and certified. This project shall not proceed unless it is approved and financed under the provisions of section 144A.073;

(3) to license and certify a new 60-bed facility in Austin, provided that: (i) 45 of the new beds are transferred from a 45-bed facility in Austin under common ownership that is closed and 15 of the new beds are transferred from a 182-bed facility in Albert Lea under common ownership; (ii) the commissioner of human services is authorized by the 2004 legislature to negotiate budget-neutral planned nursing facility closures; and (iii) money is available from planned closures of facilities under common ownership to make implementation of this clause budget-neutral to the state. The bed capacity of the Albert Lea facility shall be reduced to 167 beds following the transfer. Of the 60 beds at the new facility, 20 beds shall be used for a special care unit for persons with Alzheimer's disease or related dementias;

(4) to license and certify up to 80 beds transferred from an existing state-owned nursing facility in Cass County to a new facility located on the grounds of the Ah-Gwah-Ching campus. The operating cost payment rates for the new facility shall be determined based on the interim and settle-up payment provisions of deleted text begin Minnesota Rules, part 9549.0057,deleted text end new text begin section 256R.27new text end and the reimbursement provisions of chapter 256R. The property payment rate for the first three years of operation shall be $35 per day. For subsequent years, the property payment rate of $35 per day shall be adjusted for inflation as provided in section 256B.434, subdivision 4, paragraph (c), as long as the facility has a contract under section 256B.434;

(5) to initiate a pilot program to license and certify up to 80 beds transferred from an existing county-owned nursing facility in Steele County relocated to the site of a new acute care facility as part of the county's Communities for a Lifetime comprehensive plan to create innovative responses to the aging of its population. Upon relocation to the new site, the nursing facility shall delicense 28 beds. The payment rate for external fixed costs for the new facility shall be increased by an amount as calculated according to items (i) to (v):

(i) compute the estimated decrease in medical assistance residents served by the nursing facility by multiplying the decrease in licensed beds by the historical percentage of medical assistance resident days;

(ii) compute the annual savings to the medical assistance program from the delicensure of 28 beds by multiplying the anticipated decrease in medical assistance residents, determined in item (i), by the existing facility's weighted average payment rate multiplied by 365;

(iii) compute the anticipated annual costs for community-based services by multiplying the anticipated decrease in medical assistance residents served by the nursing facility, determined in item (i), by the average monthly elderly waiver service costs for individuals in Steele County multiplied by 12;

(iv) subtract the amount in item (iii) from the amount in item (ii);

(v) divide the amount in item (iv) by an amount equal to the relocated nursing facility's occupancy factor under section 256B.431, subdivision 3f, paragraph (c), multiplied by the historical percentage of medical assistance resident days; and

(6) to consolidate and relocate nursing facility beds to a new site in Goodhue County and to integrate these services with other community-based programs and services under a communities for a lifetime pilot program and comprehensive plan to create innovative responses to the aging of its population. Two nursing facilities, one for 84 beds and one for 65 beds, in the city of Red Wing licensed on July 1, 2015, shall be consolidated into a newly renovated 64-bed nursing facility resulting in the delicensure of 85 beds. Notwithstanding the carryforward of the approval authority in section 144A.073, subdivision 11, the funding approved in April 2009 by the commissioner of health for a project in Goodhue County shall not carry forward. The closure of the 85 beds shall not be eligible for a planned closure rate adjustment under section 256R.40. The construction project permitted in this clause shall not be eligible for a threshold project rate adjustment under section 256B.434, subdivision 4f. The payment rate for external fixed costs for the new facility shall be increased by an amount as calculated according to items (i) to (vi):

(i) compute the estimated decrease in medical assistance residents served by both nursing facilities by multiplying the difference between the occupied beds of the two nursing facilities for the reporting year ending September 30, 2009, and the projected occupancy of the facility at 95 percent occupancy by the historical percentage of medical assistance resident days;

(ii) compute the annual savings to the medical assistance program from the delicensure by multiplying the anticipated decrease in the medical assistance residents, determined in item (i), by the hospital-owned nursing facility weighted average payment rate multiplied by 365;

(iii) compute the anticipated annual costs for community-based services by multiplying the anticipated decrease in medical assistance residents served by the facilities, determined in item (i), by the average monthly elderly waiver service costs for individuals in Goodhue County multiplied by 12;

(iv) subtract the amount in item (iii) from the amount in item (ii);

(v) multiply the amount in item (iv) by 57.2 percent; and

(vi) divide the difference of the amount in item (iv) and the amount in item (v) by an amount equal to the relocated nursing facility's occupancy factor under section 256B.431, subdivision 3f, paragraph (c), multiplied by the historical percentage of medical assistance resident days.

(b) Projects approved under this subdivision shall be treated in a manner equivalent to projects approved under subdivision 4a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020. new text end

Sec. 6.

Minnesota Statutes 2018, section 144A.071, subdivision 4d, is amended to read:

Subd. 4d.

Consolidation of nursing facilities.

(a) The commissioner of health, in consultation with the commissioner of human services, may approve a request for consolidation of nursing facilities which includes the closure of one or more facilities and the upgrading of the physical plant of the remaining nursing facility or facilities, the costs of which exceed the threshold project limit under subdivision 2, clause (a). The commissioners shall consider the criteria in this section, section 144A.073, and section 256R.40, in approving or rejecting a consolidation proposal. In the event the commissioners approve the request, the commissioner of human services shall calculate an external fixed costs rate adjustment according to clauses (1) to (3):

(1) the closure of beds shall not be eligible for a planned closure rate adjustment under section 256R.40, subdivision 5;

(2) the construction project permitted in this clause shall not be eligible for a threshold project rate adjustment under section 256B.434, subdivision 4f, or a moratorium exception adjustment under section 144A.073; and

(3) the payment rate for external fixed costs for a remaining facility or facilities shall be increased by an amount equal to 65 percent of the projected net cost savings to the state calculated in paragraph (b), divided by the state's medical assistance percentage of medical assistance dollars, and then divided by estimated medical assistance resident days, as determined in paragraph (c), of the remaining nursing facility or facilities in the request in this paragraph. The rate adjustment is effective on the first day of the month of January or July, whichever date occurs first following both the completion of the construction upgrades in the consolidation plan and the complete closure of the facility or facilities designated for closure in the consolidation plan. If more than one facility is receiving upgrades in the consolidation plan, each facility's date of construction completion must be evaluated separately.

(b) For purposes of calculating the net cost savings to the state, the commissioner shall consider clauses (1) to (7):

(1) the annual savings from estimated medical assistance payments from the net number of beds closed taking into consideration only beds that are in active service on the date of the request and that have been in active service for at least three years;

(2) the estimated annual cost of increased case load of individuals receiving services under the elderly waiver;

(3) the estimated annual cost of elderly waiver recipients receiving support under housing support under chapter 256I;

(4) the estimated annual cost of increased case load of individuals receiving services under the alternative care program;

(5) the annual loss of license surcharge payments on closed beds;

(6) the savings from not paying planned closure rate adjustments that the facilities would otherwise be eligible for under section 256R.40; and

(7) the savings from not paying external fixed costs payment rate adjustments from submission of renovation costs that would otherwise be eligible as threshold projects under section 256B.434, subdivision 4f.

(c) For purposes of the calculation in paragraph (a), clause (3), the estimated medical assistance resident days of the remaining facility or facilities shall be computed assuming 95 percent occupancy multiplied by the historical percentage of medical assistance resident days of the remaining facility or facilities, as reported on the facility's or facilities' most recent nursing facility statistical and cost report filed before the plan of closure is submitted, multiplied by 365.

(d) For purposes of net cost of savings to the state in paragraph (b), the average occupancy percentages will be those reported on the facility's or facilities' most recent nursing facility statistical and cost report filed before the plan of closure is submitted, and the average payment rates shall be calculated based on the approved payment rates in effect at the time the consolidation request is submitted.

(e) To qualify for the external fixed costs payment rate adjustment under this subdivision, the closing facilities shall:

(1) submit an application for closure according to section 256R.40, subdivision 2; and

(2) follow the resident relocation provisions of section 144A.161.

(f) The county or counties in which a facility or facilities are closed under this subdivision shall not be eligible for designation as a hardship area under subdivision 3 for five years from the date of the approval of the proposed consolidation. The applicant shall notify the county of this limitation and the county shall acknowledge this in a letter of support.

new text begin (g) Projects approved on or after March 1, 2020, are not subject to paragraph (a), clauses (2) and (3), and paragraph (c). The 65 percent projected net cost savings to the state calculated in paragraph (b) must be applied to the moratorium cost of the project and the remainder must be added to the moratorium funding under section 144A.073, subdivision 11. new text end

new text begin (h) Consolidation project applications not approved by the commissioner prior to March 1, 2020, are subject to the moratorium process under section 144A.073, subdivision 2. Upon request by the applicant, the commissioner may extend this deadline to August 1, 2020, so long as the facilities, bed numbers, and counties specified in the original application are not altered. Proposals from facilities seeking approval for a consolidation project prior to March 1, 2020, must be received by the commissioner no later than January 1, 2020. This paragraph expires August 1, 2020. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 7.

Minnesota Statutes 2018, section 144A.071, subdivision 5a, is amended to read:

Subd. 5a.

Cost estimate of a moratorium exception project.

deleted text begin (a)deleted text end For the purposes of this section and section 144A.073, the cost estimate of a moratorium exception project shall include the effects of the proposed project on the costs of the state subsidy for community-based services, nursing services, and housing in institutional and noninstitutional settings. The commissioner of health, in cooperation with the commissioner of human services, shall define the method for estimating these costs in the permanent rule implementing section 144A.073. The commissioner of human services shall prepare an estimate of thenew text begin property payment rate to be established upon completion of the project andnew text end total state annual long-term costs of each moratorium exception proposal.new text begin The property payment rate estimate shall be based upon the estimated costs and total building valuation to be used in the total property payment rate calculation under section 256R.26. For the purposes of determining the actual total property payment rate under section 256R.26 upon completion of the project, the final building valuation is the lesser of the limited depreciated replacement cost as determined under section 256R.26, subdivision 3, following a physical building appraisal or 105 percent of the estimated total building valuation from the moratorium application. new text end

deleted text begin (b) The interest rate to be used for estimating the cost of each moratorium exception project proposal shall be the lesser of either the prime rate plus two percentage points, or the posted yield for standard conventional fixed rate mortgages of the Federal Home Loan Mortgage Corporation plus two percentage points as published in the Wall Street Journal and in effect 56 days prior to the application deadline. If the applicant's proposal uses this interest rate, the commissioner of human services, in determining the facility's actual property-related payment rate to be established upon completion of the project must use the actual interest rate obtained by the facility for the project's permanent financing up to the maximum permitted under Minnesota Rules, part 9549.0060, subpart 6. deleted text end

deleted text begin The applicant may choose an alternate interest rate for estimating the project's cost. If the applicant makes this election, the commissioner of human services, in determining the facility's actual property-related payment rate to be established upon completion of the project, must use the lesser of the actual interest rate obtained for the project's permanent financing or the interest rate which was used to estimate the proposal's project cost. For succeeding rate years, the applicant is at risk for financing costs in excess of the interest rate selected. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for projects approved by the commissioner of health on or after March 1, 2020. new text end

Sec. 8.

Minnesota Statutes 2018, section 144A.073, subdivision 3c, is amended to read:

Subd. 3c.

deleted text begin Cost neutraldeleted text end new text begin Bednew text end relocation new text begin threshold new text end projects.

(a) Notwithstanding subdivision 3, the commissioner may at any time accept proposals, or amendments to proposals previously approved under this section, for relocations deleted text begin that are cost neutral with respect to state costs as defined in section 144A.071, subdivision 5adeleted text end new text begin to existing licensed nursing facilities when costs are less than the maximum threshold limit determined under section 256R.267, paragraph (a)new text end . The commissioner, in consultation with the commissioner of human services, shall evaluate proposals according to subdivision 4a, clauses (1), (4), (5), (6), and (8), and other criteria established in rule or law. deleted text begin The commissioner of human services shall determine the allowable payment rates of the facility receiving the beds in accordance with section 256R.50deleted text end new text begin The commissioner of human services shall determine the allowable payment rates of the facility receiving the beds in accordance with section 256R.21. No part of the source facility rates are transferred to the receiving facilitynew text end . The commissioner shall approve or disapprove a project within 90 days.

(b) deleted text begin For the purposes of paragraph (a), cost neutrality shall be measured over the first three 12-month periods of operation after completion of the project.deleted text end new text begin Bed relocation threshold projects seeking reimbursement for costs that exceed the moratorium limit or that result in a newly constructed or newly licensed building must apply to relocate beds as part of the competitive moratorium application and review process under subdivisions 2 and 3.new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for project proposals received by the commissioner of health after January 1, 2020, and approved by the commissioner on or after March 1, 2020. new text end

Sec. 9.

Minnesota Statutes 2018, section 144A.073, is amended by adding a subdivision to read:

new text begin Subd. 16. new text end

new text begin Moratorium exception funding. new text end

new text begin In fiscal year 2020, the commissioner may approve moratorium exception projects under this section for which the full annualized state share of medical assistance costs does not exceed $1,250,000 plus any carryover of previous appropriations for this purpose. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 10.

Minnesota Statutes 2018, section 256B.434, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Alternative payment demonstration project establisheddeleted text end new text begin Contractual agreementsnew text end .

deleted text begin The commissioner of human services shall establish a contractual alternative payment demonstration project for paying for nursing facility services under the medical assistance program. A nursing facility may apply to be paid under the contractual alternative payment demonstration project instead of the cost-based payment system established under section 256B.431. A nursing facilitydeleted text end new text begin A nursing facility located in Minnesota new text end electing to deleted text begin use the alternative payment demonstration projectdeleted text end new text begin enroll as a medical assistance provider new text end must enter into a contract with the commissioner. Payment rates and procedures deleted text begin for facilities electing to use the alternative payment demonstration projectdeleted text end are determined and governed by this section and by the terms of the contract. The commissioner may negotiate different contract terms for different nursing facilities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 11.

Minnesota Statutes 2018, section 256B.434, subdivision 3, is amended to read:

Subd. 3.

Duration and termination of contracts.

deleted text begin (a) Subject to available resources, the commissioner may begin to execute contracts with nursing facilities November 1, 1995. deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end All contracts entered into under this section are for a term not to exceed four years. Either party may terminate a contract at any time without cause by providing 90 calendar days advance written notice to the other party. The decision to terminate a contract is not appealable. deleted text begin Notwithstanding section 16C.05, subdivision 2, paragraph (a), clause (5), the contract shall be renegotiated for additional terms of up to four years, unless either party provides written notice of termination.deleted text end The provisions of the contract shall be renegotiated at a minimum of every four years by the parties prior to the expiration date of the contract. The parties may voluntarily deleted text begin renegotiatedeleted text end new text begin amendnew text end the terms of the contract at any time by mutual agreement.

deleted text begin (c)deleted text end new text begin (b)new text end If a nursing facility fails to comply with the terms of a contract, the commissioner shall provide reasonable notice regarding the breach of contract and a reasonable opportunity for the facility to come into compliance. If the facility fails to come into compliance or to remain in compliance, the commissioner may terminate the contract. deleted text begin If a contract is terminated, the contract payment remains in effect for the remainder of the rate year in which the contract was terminated, but in all other respects the provisions of this section do not apply to that facility effective the date the contract is terminated. The contract shall contain a provision governing the transition back to the cost-based reimbursement system established under section 256B.431 and Minnesota Rules, parts 9549.0010 to 9549.0080. A contract entered into under this section may be amended by mutual agreement of the parties.deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. new text end

Sec. 12.

Minnesota Statutes 2018, section 256R.02, subdivision 8, is amended to read:

Subd. 8.

Capital assets.

"Capital assets" means a nursing facility's buildings, deleted text begin attached fixturesdeleted text end new text begin fixed equipmentnew text end , land improvements, leasehold improvements, and all additions to or replacements of those assets used directly for resident care.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020. new text end

Sec. 13.

Minnesota Statutes 2018, section 256R.02, subdivision 19, is amended to read:

Subd. 19.

External fixed costs.

"External fixed costs" means costs related to the nursing home surcharge under section 256.9657, subdivision 1; licensure fees under section 144.122; family advisory council fee under section 144A.33; scholarships under section 256R.37; planned closure rate adjustments under section 256R.40; consolidation rate adjustments under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d; single-bed room incentives under section 256R.41; property taxes, new text begin special new text end assessments, and payments in lieu of taxes; employer health insurance costs; quality improvement incentive payment rate adjustments under section 256R.39; performance-based incentive payments under section 256R.38; special dietary needs under section 256R.51; rate adjustments for compensation-related costs for minimum wage changes under section 256R.49 provided on or after January 1, 2018; deleted text begin anddeleted text end Public Employees Retirement Association employer costsnew text begin ; and border city rate adjustments under section 256R.481new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2020. new text end

Sec. 14.

Minnesota Statutes 2018, section 256R.02, is amended by adding a subdivision to read:

new text begin Subd. 25a. new text end

new text begin Interim payment rates. new text end

new text begin "Interim payment rates" means the total operating and external fixed costs payment rates determined by anticipated costs and resident days reported on an interim cost report as described in section 256R.27. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020. new text end

Sec. 15.

Minnesota Statutes 2018, section 256R.02, subdivision 33, is amended to read:

Subd. 33.

Nursing facility.

"Nursing facility" new text begin or "facility" new text end means a facility with a medical assistance provider agreement that is licensed as a nursing home under chapter 144A or as a boarding care home under sections 144.50 to 144.56.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020. new text end

Sec. 16.

Minnesota Statutes 2018, section 256R.02, is amended by adding a subdivision to read:

new text begin Subd. 47a. new text end

new text begin Settle-up payment rates. new text end

new text begin "Settle-up payment rates" means the total operating and external fixed costs payment rates determined by actual allowable costs and resident days reported on a settle-up cost report as described under section 256R.27. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020. new text end

Sec. 17.

Minnesota Statutes 2018, section 256R.21, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Total payment rate for new facilities. new text end

new text begin For a new nursing facility created under section 144A.071, subdivisions 2 and 3, the total payment rate must be determined according to section 256R.27. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for projects approved by the commissioner of health on or after March 1, 2020. new text end

Sec. 18.

Minnesota Statutes 2018, section 256R.25, is amended to read:

256R.25 EXTERNAL FIXED COSTS PAYMENT RATE.

(a) The payment rate for external fixed costs is the sum of the amounts in paragraphs (b) to deleted text begin (n)deleted text end new text begin (o)new text end .

(b) For a facility licensed as a nursing home, the portion related to the provider surcharge under section 256.9657 is equal to $8.86 per resident day. For a facility licensed as both a nursing home and a boarding care home, the portion related to the provider surcharge under section 256.9657 is equal to $8.86 per resident day multiplied by the result of its number of nursing home beds divided by its total number of licensed beds.

(c) The portion related to the licensure fee under section 144.122, paragraph (d), is the amount of the fee divided by the sum of the facility's resident days.

(d) The portion related to development and education of resident and family advisory councils under section 144A.33 is $5 per resident day divided by 365.

(e) The portion related to scholarships is determined under section 256R.37.

(f) The portion related to planned closure rate adjustments is as determined under section 256R.40, subdivision 5, and Minnesota Statutes 2010, section 256B.436.

(g) The portion related to consolidation rate adjustments shall be as determined under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d.

(h) The portion related to single-bed room incentives is as determined under section 256R.41.

(i) The portions related to real estate taxes, special assessments, and payments made in lieu of real estate taxes directly identified or allocated to the nursing facility are the deleted text begin actualdeleted text end new text begin allowablenew text end amounts divided by the sum of the facility's resident days. Allowable costs under this paragraph for payments made by a nonprofit nursing facility that are in lieu of real estate taxes shall not exceed the amount which the nursing facility would have paid to a city or township and county for fire, police, sanitation services, and road maintenance costs had real estate taxes been levied on that property for those purposes.

(j) The portion related to employer health insurance costs is the allowable costs divided by the sum of the facility's resident days.

(k) The portion related to the Public Employees Retirement Association is deleted text begin actualdeleted text end new text begin allowablenew text end costs divided by the sum of the facility's resident days.

(l) The portion related to quality improvement incentive payment rate adjustments is the amount determined under section 256R.39.

(m) The portion related to performance-based incentive payments is the amount determined under section 256R.38.

(n) The portion related to special dietary needs is the amount determined under section 256R.51.

new text begin (o) The portion related to the rate adjustments for border city facilities is the amount determined under section 256R.481. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020, except paragraph (o) is effective for rate years beginning on or after January 1, 2021. new text end

Sec. 19.

Minnesota Statutes 2018, section 256R.26, is amended to read:

256R.26 PROPERTY PAYMENT RATE.

new text begin Subdivision 1. new text end

new text begin Determination of the limited undepreciated replacement cost. new text end

deleted text begin The property payment rate for a nursing facility is the property rate established for the facility under sections 256B.431 and 256B.434. deleted text end new text begin A facility's limited URC is the lesser of: new text end

new text begin (1) the facility's URC from the appraisal; or new text end

new text begin (2) the product of (i) the number of the facility's licensed beds three months prior to the beginning of the rate year, (ii) the construction cost per square foot value, and (iii) 1,000 square feet. new text end

new text begin Subd. 2. new text end

new text begin Determination of limited undepreciated replacement cost ratio. new text end

new text begin A facility's limited URC ratio is the facility's limited URC as determined in subdivision 1 divided by the facility's URC. new text end

new text begin Subd. 3. new text end

new text begin Determination of limited depreciated replacement cost. new text end

new text begin A facility's limited DRC is the product of the facility's DRC and the facility's limited URC ratio as determined in subdivision 2. new text end

new text begin Subd. 4. new text end

new text begin Determination of land and land improvement value. new text end

new text begin A facility's land and land improvement value is the facility's limited URC as determined in subdivision 1 multiplied by 0.05. new text end

new text begin Subd. 5. new text end

new text begin Determination of annual fair rental value. new text end

new text begin A facility's annual fair rental value is the product of: new text end

new text begin (1) the sum of the facility's limited DRC as determined in subdivision 3 and the land and land improvement value as determined in subdivision 4; multiplied by new text end

new text begin (2) the rental rate. new text end

new text begin Subd. 6. new text end

new text begin Determination of fair rental value property rate. new text end

new text begin A facility's fair rental value property rate is the quotient of: new text end

new text begin (1) the facility's annual fair rental value as determined in subdivision 5; divided by new text end

new text begin (2) the product of the facility's capacity days and 0.88. new text end

new text begin Subd. 7. new text end

new text begin Determination of equipment allowance rate. new text end

new text begin A facility's equipment allowance rate is the quotient of: new text end

new text begin (1) the product of (i) the equipment allowance per bed value, (ii) the facility's number of licensed beds, and (iii) the rental rate; divided by new text end

new text begin (2) the product of the facility's capacity days and 0.88. new text end

new text begin Subd. 8. new text end

new text begin Determination of total property payment rate. new text end

new text begin Except as provided in subdivision 9, paragraph (a), a facility's total property payment rate is the sum of the facility's fair rental value property rate as determined in subdivision 6 and the facility's equipment allowance rate as determined in subdivision 7. new text end

new text begin Subd. 9. new text end

new text begin Transition period. new text end

new text begin (a) A facility's property payment rate is the property rate established for the facility under sections 256B.431 and 256B.434 until the facility's property rate is transitioned upon completion of any project authorized under section 144A.071, subdivision 3 or 4d; or 144A.073, subdivision 3, to the fair rental value property rate calculated under this chapter. new text end

new text begin (b) Effective the first day of the first month of the calendar quarter after the completion of the project described in paragraph (a), the commissioner shall transition a facility to the property payment rate calculated under this chapter. The initial rate year ends on December 31 and may be less than a full 12-month period. The commissioner shall schedule an appraisal within 90 days of the commissioner receiving notification from the facility that the project is completed. The commissioner shall apply the property payment rate determined after the appraisal retroactively to the first day of the first month of the calendar quarter after the completion of the project. new text end

new text begin (c) Upon a facility's transition to the fair rental value property rates calculated under this chapter, the facility's total property payment rate under subdivision 8 shall be the only payment for costs related to capital assets, including depreciation, interest and lease expenses for all depreciable assets, including moveable equipment, land improvements, and land. Facilities with property payment rates established under subdivisions 1 to 8 are not eligible for planned closure rate adjustments under section 256R.40; consolidation rate adjustments under section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d; single-bed room incentives under section 256R.41; and the property rate inflation adjustment under section 256B.434, subdivision 4. The commissioner shall remove any of these incentives from the facility's existing rate upon the facility transitioning to the fair rental value property rates calculated under this chapter. new text end

new text begin Subd. 10. new text end

new text begin New nursing facilities. new text end

new text begin A nursing facility new to the medical assistance program must, upon completion of construction of the nursing facility, have the building and fixed equipment appraised by a property appraisal firm selected by the commissioner or, if not newly constructed, upon entering the medical assistance program. The commissioner shall schedule an appraisal within 90 days of notification from the facility that the facility has become Medicaid certified. The commissioner shall apply the property payment rate determined after the initial appraisal retroactively to the Medicaid certification date. new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivisions 1 to 10 are effective for rate years beginning on or after January 1, 2020, for nursing facilities that completed projects authorized after March 1, 2020, under Minnesota Statutes, section 144A.071, subdivision 3 or 4d; or 144A.073, subdivision 3. new text end

Sec. 20.

new text begin [256R.261] PROPERTY RATE DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of sections 256R.26 to 256R.267, the terms in this section have the meanings given unless otherwise provided for in this chapter. new text end

new text begin Subd. 2. new text end

new text begin Addition. new text end

new text begin "Addition" means an extension, enlargement, or expansion of the nursing facility for the purpose of increasing the number of licensed beds or improving resident care. new text end

new text begin Subd. 3. new text end

new text begin Appraisal. new text end

new text begin "Appraisal" means an evaluation of the nursing facility's physical real estate conducted by a property appraisal firm selected by the commissioner to establish the valuation of a building and fixed equipment. An appraisal does not include an evaluation of moveable equipment, land, or land improvements. An appraisal may include an evaluation of shared space provided the valuation is subsequently adjusted for any shared area included in the depreciated replacement cost and undepreciated replacement cost that is not used exclusively for nursing facility purposes. new text end

new text begin Subd. 4. new text end

new text begin Building. new text end

new text begin "Building" means the physical plant and fixed equipment used directly for resident care and licensed under chapter 144A or sections 144.50 to 144.56. Building excludes buildings or portions of buildings used by central, affiliated, or corporate offices. new text end

new text begin Subd. 5. new text end

new text begin Capacity days. new text end

new text begin "Capacity days" means the number of licensed beds within the nursing facility multiplied by 365 days. new text end

new text begin Subd. 6. new text end

new text begin Construction cost per square foot value. new text end

new text begin "Construction cost per square foot value" means the RSMeans nursing home cost per square foot of floor area for a 40,000 square foot nursing home with precast concrete and bearing walls multiplied by the commercial location factor for Minneapolis as indicated in the most recently available edition of the Square Foot Costs with RSMeans Data, as published by Gordian. new text end

new text begin Subd. 7. new text end

new text begin Commercial valuation system. new text end

new text begin "Commercial valuation system" means the commercially available building valuation system selected by the commissioner for use in all appraisals. new text end

new text begin Subd. 8. new text end

new text begin Depreciable movable equipment. new text end

new text begin "Depreciable movable equipment" means the standard movable care equipment and support service equipment generally used in nursing facilities. Depreciable movable equipment includes equipment specified in the major movable equipment table of the depreciation guidelines. new text end

new text begin Subd. 9. new text end

new text begin Depreciated replacement cost or DRC. new text end

new text begin "Depreciated replacement cost" or "DRC" means the depreciated replacement cost determined by an appraisal using the commercial valuation system selected by the commissioner. DRC excludes costs related to parking structures. new text end

new text begin Subd. 10. new text end

new text begin Depreciation expense. new text end

new text begin "Depreciation expense" means the portion of a capital asset deemed to be consumed or expired over the life of the asset. new text end

new text begin Subd. 11. new text end

new text begin Depreciation guidelines. new text end

new text begin "Depreciation guidelines" means the most recent publication of "Estimated Useful Lives of Depreciable Hospital Assets" issued by the American Hospital Association. new text end

new text begin Subd. 12. new text end

new text begin Equipment allowance. new text end

new text begin "Equipment allowance" means the component of the property payment rate that is a payment for the use of depreciable movable equipment. new text end

new text begin Subd. 13. new text end

new text begin Equipment allowance per bed value. new text end

new text begin The equipment allowance per bed value is $10,000 adjusted annually for rate years beginning on or after January 1, 2021, by the percentage change indicated by the urban consumer price index for Minneapolis-St. Paul, as published by the Bureau of Labor Statistics (series 1967=100) for the two previous Julys. The computation for this annual adjustment is based on the data that is publicly available on November 1 immediately preceding the start of the rate year. new text end

new text begin Subd. 14. new text end

new text begin Fair rental value system. new text end

new text begin "Fair rental value system" means a system that establishes a price for the use of a space based on an appraised value of the property. The price is established without consideration of the actual accounting cost to construct or remodel the property. The price is the nursing facility value, subject to limits, multiplied by an established rental rate. new text end

new text begin Subd. 15. new text end

new text begin Fixed equipment. new text end

new text begin "Fixed equipment" means equipment affixed to the building and not subject to transfer, including but not limited to wiring, electrical fixtures, plumbing, elevators, and heating and air conditioning systems. new text end

new text begin Subd. 16. new text end

new text begin Land improvement. new text end

new text begin "Land improvement" means improvement to the land surrounding the nursing facility directly used for nursing facility operations as specified in the land improvements table of the depreciation guidelines, if replacement of the land improvement is the responsibility of the nursing facility. Land improvement includes construction of auxiliary buildings including sheds, garages, storage buildings, and parking structures. Parking structures are a land improvement and included only in the land and land improvement value under section 256R.26, subdivision 4. Parking structures are not to be included in either the undepreciated replacement cost or depreciated replacement cost. new text end

new text begin Subd. 17. new text end

new text begin Rental rate. new text end

new text begin (a) "Rental rate" means the percentage applied to the allowable value of the building, moveable, and fixed equipment per year in the property payment rate calculation. new text end

new text begin (b) The rental rate is the sum of the 20-year treasury bond rate as published in the Federal Reserve Bulletin using the average for the calendar year preceding the rate year based on data publicly available on November 1 each year, plus a risk value of three percent. new text end

new text begin (c) Regardless of the result in paragraph (b), the rental rate must not be less than 7.5 percent or more than 12 percent. new text end

new text begin Subd. 18. new text end

new text begin Shared area. new text end

new text begin "Shared area" means square footage that a nursing facility shares with a nonnursing facility operation to provide a support service. The appraisals initially may include the full value of all shared areas. The undepreciated replacement cost and depreciated replacement cost established by the appraisals must be adjusted in the final nursing facility values to reflect only the nursing facility usage. The adjustment must be based on a Medicare-approved allocation basis for the type of service provided by each area. Shared areas outside the appraised space must be added to DRC, URC, and related square footage using the average of each value from the space in the appraisal. new text end

new text begin Subd. 19. new text end

new text begin Threshold project. new text end

new text begin "Threshold project" means additions to a building or fixed equipment that are subject to the threshold project limits under section 256R.267, paragraph (a). Threshold project excludes land, land improvements, and depreciable movable equipment purchases. new text end

new text begin Subd. 20. new text end

new text begin Undepreciated replacement cost or URC. new text end

new text begin "Undepreciated replacement cost" or "URC" means the undepreciated replacement cost determined by the appraisal for building and fixed equipment using the commercial valuation system and appraisal firm. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020. new text end

Sec. 21.

new text begin [256R.265] APPRAISALS AND DETERMINATION OF REPLACEMENT COSTS. new text end

new text begin Subdivision 1. new text end

new text begin Selection of valuation system and appraisal firms. new text end

new text begin The commissioner shall select a commercial valuation system that property appraisal firms selected by the commissioner must utilize for all nursing facility property appraisals. The commissioner shall use appraisal reports produced by commissioner-selected appraisal firms using the commissioner-selected commercial valuation system for the purposes of rate setting under section 256R.26, subdivisions 1 to 8. The commissioner shall not adjust or substitute any alternative appraisal of properties. new text end

new text begin Subd. 2. new text end

new text begin Appraised valuations generally. new text end

new text begin The property appraisal firm selected by the commissioner shall determine the appraised valuation of a building and fixed equipment. The appraisal firm shall not include depreciable movable equipment, land, land improvements, or the physical plant for central office operations in the appraised valuation of the nursing facility. Appraisals are not intended to exactly reflect market value. new text end

new text begin Subd. 3. new text end

new text begin Appraisal reports. new text end

new text begin Appraisal firms selected by the commissioner shall produce a report detailing both the DRC and URC of the nursing facility. new text end

new text begin Subd. 4. new text end

new text begin Appraised valuations of shared space. new text end

new text begin Selected appraisal firms may include the full value of all shared areas in an initial appraisal but must adjust the nursing facility valuation of any shared area included in the square footage, DRC, and URC that are not used for nursing facility purposes to reflect only the nursing facility usage of shared areas. Selected appraisal firms shall adjust facility valuation for shared areas using a Medicare-approved allocation basis for the type of service provided in each area. Shared areas outside the appraised space must be added to the DRC, URC, and related square footage using the average of each value from the space in the appraisal. new text end

new text begin Subd. 5. new text end

new text begin Review and appeal of appraisal reports. new text end

new text begin A nursing facility may appeal a finding of fact in the appraisal report to the appraiser within 20 calendar days after receipt of the appraisal report and request revision. new text end

new text begin Subd. 6. new text end

new text begin Update of replacement costs. new text end

new text begin When a facility's most recent physical appraisal was completed more than 12 months before the start of the rate year, the appraisal firm shall use the commercial valuation system to update the most recent DRC and URC of the nursing facility and the commissioner shall use the updated DRC and URC to determine the total property payment rate under section 256R.26. Updated DRC and URC are updates only and not subject to revisions of any of the original valuations or appeal to the appraiser by the facility. new text end

new text begin Subd. 7. new text end

new text begin Appraisal frequency. new text end

new text begin After a facility's initial rate year described in section 256R.26, subdivision 9, paragraph (b), the commissioner shall ensure that a selected appraisal firm conducts a new physical appraisal of the facility at least once every three years using a commercial valuation system. new text end

new text begin Subd. 8. new text end

new text begin Limitation on appraisal values. new text end

new text begin After the initial rate year described in section 256R.26, subdivision 9, paragraph (b), the increase in the URC for each subsequent appraisal shall not exceed $2,000 per bed per year since the most recent physical appraisal, plus any projects completed under section 256R.267 since the most recent appraisal. Any limitation to the URC must be applied in the same proportion to the DRC. The commissioner shall update annually on January 1 the per-bed per-year limit on the increase in the URC in this subdivision by the annual percent change in the construction cost per square foot value. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020. new text end

Sec. 22.

new text begin [256R.267] THRESHOLD PROJECT PROPERTY PAYMENT RATE INTERIM ADJUSTMENTS. new text end

new text begin (a) A facility reimbursed under section 256R.26, subdivisions 1 to 8, may receive a property payment rate interim adjustment for threshold projects the cumulative cost of which during the three years between physical appraisals is between the following threshold project cost limits: new text end

new text begin (1) the lesser of $316,816 or $10,000 per bed in service; and new text end

new text begin (2) the greater of $1,620,943 or $20,000 per bed in service. new text end

new text begin The commissioner shall update the threshold project cost limits each January 1 by the annual percent change in the construction cost per square foot value based on the information that is publicly available on November 1 immediately preceding the rate year. new text end

new text begin (b) A facility seeking a property payment rate interim adjustment must request an adjustment after the threshold project is completed. The nursing facility or the lease holder must have incurred the threshold project cost subsequent to the facility's last physical appraisal. The nursing facility must submit to the commissioner all building and fixed equipment cost data related to the project within 90 days of completing the project. new text end

new text begin (c) Effective January 1 or July 1, whichever occurs first after a facility completes a threshold project and requests the property payment rate interim adjustment, the commissioner shall add the allowable reported threshold project costs to the facility's URC under section 256R.26, subdivision 1, and to the DRC under section 256R.26, subdivision 3, before calculating an adjusted property payment rate under section 256R.26. The commissioner shall not include in the facility's limited URC threshold project costs reported to the commissioner between physical appraisals that exceed the maximum cumulative project cost limits described in paragraph (a). new text end

new text begin (d) In subsequent property payment rate calculations following the completion of a physical appraisal, the commissioner shall eliminate any interim adjustment to the DRC and URC under paragraph (c). new text end

new text begin (e) At the option of the commissioner, the commissioner may adjust the appraisal schedule for a nursing facility that has completed a threshold project. new text end

new text begin (f) If more or less than three years pass between a facility's physical appraisals, the commissioner shall prorate the facility's threshold project cost limits accordingly. new text end

new text begin (g) After the initial rate year project adjustments are allowed once annually based on the previous project completion date. new text end

new text begin (h) Two threshold projects may not be conducted at the same time. Purchases for a second project must be made after the completion date of the first project. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rate years beginning on or after January 1, 2020. new text end

Sec. 23.

new text begin [256R.27] INTERIM AND SETTLE-UP PAYMENT RATES. new text end

new text begin