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

CHAPTER 80--H.F.No. 3646

An act

relating to children, youth, and families; creating the statutory infrastructure for the new Department of Children, Youth, and Families; moving and copying statutes;

amending Minnesota Statutes 2022, sections 13.46, subdivisions 1, 3; 116L.665, subdivision 2; 116L.86, subdivisions 1, 3; 119A.5411; 119B.03, subdivision 8; 119B.09, subdivision 12; 119B.24; 124D.13, subdivisions 2, 3, 4; 124D.135, subdivisions 1, 3, by adding a subdivision; 124D.142, subdivision 1; 124D.15, subdivision 3a; 124D.151, subdivision 7, by adding a subdivision; 124D.16, by adding a subdivision; 124D.165, subdivision 1; 125A.02, subdivisions 1a, 2; 125A.28; 125A.35, subdivision 1; 125A.45; 125A.48; 125A.76, by adding a subdivision; 144.225, subdivision 2b; 245.814, subdivision 5; 245A.02, subdivision 6e; 245A.03, subdivisions 1, 4; 245A.035, subdivision 4; 245A.04, subdivision 9; 245A.08, subdivision 2a; 245A.09, subdivision 7; 245A.10, subdivisions 1, 2; 245A.14, subdivisions 1, 14; 245A.1443, subdivision 2; 245A.1444; 245A.146, subdivisions 1, 2, 5, 6; 245A.147, subdivision 1; 245A.156, subdivisions 1, 2; 245A.16, subdivisions 3, 5; 245A.18, subdivision 1; 245A.25, subdivisions 1, 6, 8; 245A.66, subdivision 1; 245C.03, by adding a subdivision; 245C.08, subdivision 3; 245C.22, by adding a subdivision; 245C.25; 256.01, subdivisions 1, 2, 4, 5, 12, 16, 18, 18a, 34; 256.012, subdivision 2, by adding a subdivision; 256.016; 256.017, subdivisions 1, 2, 3, 5, 7; 256.018; 256.019, subdivisions 1, 2; 256.029; 256.045, subdivisions 3b, 4, 6, 10; 256.0451, subdivisions 1, 2; 256.046, subdivision 2; 256.741, subdivisions 1, 2, 12a; 256.82; 256.87, subdivisions 1, 1a, 5; 256.981; 256.982; 256.983, as amended; 256.9831, subdivision 1; 256.986; 256.9861; 256.987, subdivision 1; 256.998, subdivision 7; 256D.64, subdivisions 1, 3; 256E.21, subdivision 1; 256E.22, subdivision 7; 256E.24; 256E.25, subdivisions 5, 6, 7; 256E.26; 256E.27; 256J.01, subdivision 2; 256J.021; 256J.08, subdivision 32; 256J.09, by adding a subdivision; 256J.351; 256J.395, subdivision 1; 256J.425, subdivision 8; 256J.645, subdivision 1; 256P.04, subdivision 13; 260.92, subdivision 1; 260C.178, subdivision 1; 260C.201, subdivision 1; 260C.215, subdivision 5; 260C.301, subdivision 1; 260D.02, subdivisions 5, 9; 260E.02, subdivision 2; 260E.03, subdivision 23; 260E.14, subdivision 1; 260E.20, subdivisions 3, 5; 260E.24, subdivision 5; 260E.28, subdivisions 1, 3; 260E.29, subdivision 2; 260E.30, subdivisions 3, 6; 260E.32, subdivision 3; 260E.33, subdivisions 2, 3, 5; 260E.34; 260E.35, subdivision 3; 260E.36, subdivision 4; 299A.72; 393.07, subdivisions 1, 2, 3, 4, 5, 7, 8, 10; 393.11, subdivision 2; 518A.26, by adding a subdivision; 518A.60; 631.40, subdivision 3; Minnesota Statutes 2023 Supplement, sections 13.46, subdivisions 2, 4; 119B.125, subdivisions 1a, 2, 3; 121A.19; 124D.142, subdivision 2; 124D.151, subdivision 5; 125A.02, subdivision 1; 142A.02, subdivision 1; 142A.03, subdivision 2, by adding subdivisions; 144.225, subdivision 2; 245A.02, subdivision 5a; 245A.03, subdivisions 2, 7; 245A.04, subdivisions 4, 7; 245A.041, subdivision 6; 245A.05; 245A.07, subdivisions 1, 3; 245A.10, subdivisions 3, 4; 245A.13, subdivision 7; 245A.1435; 245A.16, subdivision 1; 245A.66, subdivision 4; 245C.02, subdivision 22; 245C.03, subdivision 1; 245H.05; 256.045, subdivision 3; 256.046, subdivision 1; 256.0471, subdivision 1; 256.98, subdivision 8; 256D.65, subdivision 1; 256J.35; 256J.37, subdivision 3a; 256J.40; 260C.317, subdivision 3; 260E.02, subdivision 1; 609A.015, subdivisions 1, 2, 3; 609A.06, subdivisions 7, 12; Laws 2017, First Special Session chapter 5, article 8, section 9, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 142A; proposing coding for new law as Minnesota Statutes, chapters 142B; 142C; repealing Minnesota Statutes 2022, sections 245A.04, subdivision 17; 245A.09, subdivision 10; 245H.12; 256.01, subdivision 30; 256.741, subdivision 3; 256.9831, subdivisions 2, 3; 256J.01, subdivision 5; 256J.78, subdivision 3; Minnesota Statutes 2023 Supplement, section 245A.18, subdivision 2.

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

ARTICLE 1

CHAPTER 142A; DEPARTMENT OF CHILDREN, YOUTH, AND FAMILIES

Section 1.

Minnesota Statutes 2023 Supplement, section 142A.02, subdivision 1, is amended to read:

Subdivision 1.

Department.

The Department of Children, Youth, and Families is established.new text begin The commissioner of children, youth, and families is hereby constituted the "state agency" for the purposes of Title IV of the Social Security Act of the United States and the laws of this state.new text end

Sec. 2.

Minnesota Statutes 2023 Supplement, section 142A.03, subdivision 2, is amended to read:

Subd. 2.

Duties of the commissioner.

(a) The commissioner may apply for and accept on behalf of the state any grants, bequests, gifts, or contributions for the purpose of carrying out the duties and responsibilities of the commissioner. Any money received under this paragraph is appropriated and dedicated for the purpose for which the money is granted. The commissioner must biennially report to the chairs and ranking minority members of relevant legislative committees and divisions by January 15 of each even-numbered year a list of all grants and gifts received under this subdivision.

(b) Pursuant to law, the commissioner may apply for and receive money made available from federal sources for the purpose of carrying out the duties and responsibilities of the commissioner.

(c) The commissioner may make contracts with and grants to Tribal Nations, public and private agencies, for-profit and nonprofit organizations, and individuals using appropriated money.

(d) The commissioner must develop program objectives and performance measures for evaluating progress toward achieving the objectives. The commissioner must identify the objectives, performance measures, and current status of achieving the measures in a biennial report to the chairs and ranking minority members of relevant legislative committees and divisions. The report is due no later than January 15 each even-numbered year. The report must include, when possible, the following objectives:

(1) centering and including the lived experiences of children and youth, including those with disabilities and mental illness and their families, in all aspects of the department's work;

(2) increasing the effectiveness of the department's programs in addressing the needs of children and youth facing racial, economic, or geographic inequities;

(3) increasing coordination and reducing inefficiencies among the department's programs and the funding sources that support the programs;

(4) increasing the alignment and coordination of family access to child care and early learning programs and improving systems of support for early childhood and learning providers and services;

(5) improving the connection between the department's programs and the kindergarten through grade 12 and higher education systems; and

(6) minimizing and streamlining the effort required of youth and families to receive services to which the youth and families are entitled.

new text begin (e) The commissioner shall administer and supervise the forms of public assistance and other activities or services that are vested in the commissioner. Administration and supervision of activities or services includes but is not limited to assuring timely and accurate distribution of benefits, completeness of service, and quality program management. In addition to administering and supervising activities vested by law in the department, the commissioner has the authority to: new text end

new text begin (1) require county agency participation in training and technical assistance programs to promote compliance with statutes, rules, federal laws, regulations, and policies governing the programs and activities administered by the commissioner; new text end

new text begin (2) monitor, on an ongoing basis, the performance of county agencies in the operation and administration of activities and programs; enforce compliance with statutes, rules, federal laws, regulations, and policies governing welfare services; and promote excellence of administration and program operation; new text end

new text begin (3) develop a quality control program or other monitoring program to review county performance and accuracy of benefit determinations; new text end

new text begin (4) require county agencies to make an adjustment to the public assistance benefits issued to any individual consistent with federal law and regulation and state law and rule and to issue or recover benefits as appropriate; new text end

new text begin (5) delay or deny payment of all or part of the state and federal share of benefits and administrative reimbursement according to the procedures set forth in section 142A.10; new text end

new text begin (6) make contracts with and grants to public and private agencies and organizations, both for-profit and nonprofit, and individuals, using appropriated funds; and new text end

new text begin (7) enter into contractual agreements with federally recognized Indian Tribes with a reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved family assistance program or any other program under the supervision of the commissioner. The commissioner shall consult with the affected county or counties in the contractual agreement negotiations, if the county or counties wish to be included, in order to avoid the duplication of county and Tribal assistance program services. The commissioner may establish necessary accounts for the purposes of receiving and disbursing funds as necessary for the operation of the programs. new text end

new text begin The commissioner shall work in conjunction with the commissioner of human services to carry out the duties of this paragraph when necessary and feasible. new text end

new text begin (f) The commissioner shall inform county agencies, on a timely basis, of changes in statute, rule, federal law, regulation, and policy necessary to county agency administration of the programs and activities administered by the commissioner. new text end

new text begin (g) The commissioner shall administer and supervise child welfare activities, including promoting the enforcement of laws preventing child maltreatment and protecting children with a disability and children who are in need of protection or services, licensing and supervising child care and child-placing agencies, and supervising the care of children in foster care. The commissioner shall coordinate with the commissioner of human services on activities impacting children overseen by the Department of Human Services, such as disability services, behavioral health, and substance use disorder treatment. new text end

new text begin (h) The commissioner shall assist and cooperate with local, state, and federal departments, agencies, and institutions. new text end

new text begin (i) The commissioner shall establish and maintain any administrative units reasonably necessary for the performance of administrative functions common to all divisions of the department. new text end

new text begin (j) The commissioner shall act as designated guardian of children pursuant to chapter 260C. For children under the guardianship of the commissioner or a Tribe in Minnesota recognized by the Secretary of the Interior whose interests would be best served by adoptive placement, the commissioner may contract with a licensed child-placing agency or a Minnesota Tribal social services agency to provide adoption services. A contract with a licensed child-placing agency must be designed to supplement existing county efforts and may not replace existing county programs or Tribal social services, unless the replacement is agreed to by the county board and the appropriate exclusive bargaining representative, Tribal governing body, or the commissioner has evidence that child placements of the county continue to be substantially below that of other counties. Funds encumbered and obligated under an agreement for a specific child shall remain available until the terms of the agreement are fulfilled or the agreement is terminated. new text end

new text begin (k) The commissioner has the authority to conduct and administer experimental projects to test methods and procedures of administering assistance and services to recipients or potential recipients of public benefits. To carry out the experimental projects, the commissioner may waive the enforcement of existing specific statutory program requirements, rules, and standards in one or more counties. The order establishing the waiver must provide alternative methods and procedures of administration and must not conflict with the basic purposes, coverage, or benefits provided by law. No project under this paragraph shall exceed four years. No order establishing an experimental project as authorized by this paragraph is effective until the following conditions have been met: new text end

new text begin (1) the United States Secretary of Health and Human Services has agreed, for the same project, to waive state plan requirements relative to statewide uniformity; and new text end

new text begin (2) a comprehensive plan, including estimated project costs, has been approved by the Legislative Advisory Commission and filed with the commissioner of administration. new text end

new text begin (l) The commissioner shall, according to federal requirements and in coordination with the commissioner of human services, establish procedures to be followed by local welfare boards in creating citizen advisory committees, including procedures for selection of committee members. new text end

new text begin (m) The commissioner shall allocate federal fiscal disallowances or sanctions that are based on quality control error rates for the aid to families with dependent children (AFDC) program formerly codified in sections 256.72 to 256.87 or the Supplemental Nutrition Assistance Program (SNAP) in the following manner: new text end

new text begin (1) one-half of the total amount of the disallowance shall be borne by the county boards responsible for administering the programs. For AFDC, disallowances shall be shared by each county board in the same proportion as that county's expenditures to the total of all counties' expenditures for AFDC. For SNAP, sanctions shall be shared by each county board, with 50 percent of the sanction being distributed to each county in the same proportion as that county's administrative costs for SNAP benefits are to the total of all SNAP administrative costs for all counties, and 50 percent of the sanctions being distributed to each county in the same proportion as that county's value of SNAP benefits issued are to the total of all benefits issued for all counties. Each county shall pay its share of the disallowance to the state of Minnesota. When a county fails to pay the amount due under this paragraph, the commissioner may deduct the amount from reimbursement otherwise due the county, or the attorney general, upon the request of the commissioner, may institute civil action to recover the amount due; and new text end

new text begin (2) notwithstanding the provisions of clause (1), if the disallowance results from knowing noncompliance by one or more counties with a specific program instruction, and that knowing noncompliance is a matter of official county board record, the commissioner may require payment or recover from the county or counties, in the manner prescribed in clause (1), an amount equal to the portion of the total disallowance that resulted from the noncompliance and may distribute the balance of the disallowance according to clause (1). new text end

new text begin (n) The commissioner shall develop and implement special projects that maximize reimbursements and result in the recovery of money to the state. For the purpose of recovering state money, the commissioner may enter into contracts with third parties. Any recoveries that result from projects or contracts entered into under this paragraph shall be deposited in the state treasury and credited to a special account until the balance in the account reaches $1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be transferred and credited to the general fund. All money in the account is appropriated to the commissioner for the purposes of this paragraph. new text end

new text begin (o) The commissioner has the authority to establish and enforce the following county reporting requirements: new text end

new text begin (1) the commissioner shall establish fiscal and statistical reporting requirements necessary to account for the expenditure of funds allocated to counties for programs administered by the commissioner. When establishing financial and statistical reporting requirements, the commissioner shall evaluate all reports, in consultation with the counties, to determine if the reports can be simplified or the number of reports can be reduced; new text end

new text begin (2) the county board shall submit monthly or quarterly reports to the department as required by the commissioner. Monthly reports are due no later than 15 working days after the end of the month. Quarterly reports are due no later than 30 calendar days after the end of the quarter, unless the commissioner determines that the deadline must be shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss of federal funding. Only reports that are complete, legible, and in the required format shall be accepted by the commissioner; new text end

new text begin (3) if the required reports are not received by the deadlines established in clause (2), the commissioner may delay payments and withhold funds from the county board until the next reporting period. When the report is needed to account for the use of federal funds and the late report results in a reduction in federal funding, the commissioner shall withhold from the county boards with late reports an amount equal to the reduction in federal funding until full federal funding is received; new text end

new text begin (4) a county board that submits reports that are late, illegible, incomplete, or not in the required format for two out of three consecutive reporting periods is considered noncompliant. When a county board is found to be noncompliant, the commissioner shall notify the county board of the reason the county board is considered noncompliant and request that the county board develop a corrective action plan stating how the county board plans to correct the problem. The corrective action plan must be submitted to the commissioner within 45 days after the date the county board received notice of noncompliance; new text end

new text begin (5) the final deadline for fiscal reports or amendments to fiscal reports is one year after the date the report was originally due. If the commissioner does not receive a report by the final deadline, the county board forfeits the funding associated with the report for that reporting period and the county board must repay any funds associated with the report received for that reporting period; new text end

new text begin (6) the commissioner may not delay payments, withhold funds, or require repayment under clause (3) or (5) if the county demonstrates that the commissioner failed to provide appropriate forms, guidelines, and technical assistance to enable the county to comply with the requirements. If the county board disagrees with an action taken by the commissioner under clause (3) or (5), the county board may appeal the action according to sections 14.57 to 14.69; and new text end

new text begin (7) counties subject to withholding of funds under clause (3) or forfeiture or repayment of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover costs incurred due to actions taken by the commissioner under clause (3) or (5). new text end

new text begin (p) The commissioner shall allocate federal fiscal disallowances or sanctions for audit exceptions when federal fiscal disallowances or sanctions are based on a statewide random sample in direct proportion to each county's claim for that period. new text end

new text begin (q) The commissioner is responsible for ensuring the detection, prevention, investigation, and resolution of fraudulent activities or behavior by applicants, recipients, and other participants in the programs administered by the department. The commissioner shall cooperate with the commissioner of education to enforce the requirements for program integrity and fraud prevention for investigation for child care assistance under chapter 142E. new text end

new text begin (r) The commissioner shall require county agencies to identify overpayments, establish claims, and utilize all available and cost-beneficial methodologies to collect and recover these overpayments in the programs administered by the department. new text end

new text begin (s) The commissioner shall develop recommended standards for child foster care homes that address the components of specialized therapeutic services to be provided by child foster care homes with those services. new text end

new text begin (t) The commissioner shall authorize the method of payment to or from the department as part of the programs administered by the department. This authorization includes the receipt or disbursement of funds held by the department in a fiduciary capacity as part of the programs administered by the department. new text end

new text begin (u) In coordination with the commissioner of human services, the commissioner shall create and provide county and Tribal agencies with blank applications, affidavits, and other forms as necessary for public assistance programs. new text end

new text begin (v) The commissioner shall cooperate with the federal government and its public welfare agencies in any reasonable manner as may be necessary to qualify for federal aid for temporary assistance for needy families and in conformity with Title I of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor amendments, including making reports that contain information required by the federal Social Security Advisory Board and complying with any provisions the board may find necessary to assure the correctness and verification of the reports. new text end

new text begin (w) On or before January 15 in each even-numbered year, the commissioner shall make a biennial report to the governor concerning the activities of the agency. new text end

new text begin (x) The commissioner shall enter into agreements with other departments of the state as necessary to meet all requirements of the federal government. new text end

new text begin (y) The commissioner may cooperate with other state agencies in establishing reciprocal agreements in instances where a child receiving Minnesota family investment program (MFIP) assistance or its out-of-state equivalent moves or contemplates moving into or out of the state, in order that the child may continue to receive MFIP or equivalent aid from the state moved from until the child has resided for one year in the state moved to. new text end

new text begin (z) The commissioner shall provide appropriate technical assistance to county agencies to develop methods to have county financial workers remind and encourage recipients of aid to families with dependent children, the Minnesota family investment program, the Minnesota family investment plan, family general assistance, or SNAP benefits whose assistance unit includes at least one child under the age of five to have each young child immunized against childhood diseases. The commissioner must examine the feasibility of utilizing the capacity of a statewide computer system to assist county agency financial workers in performing this function at appropriate intervals. new text end

new text begin (aa) The commissioner shall have the power and authority to accept on behalf of the state contributions and gifts for the use and benefit of children under the guardianship or custody of the commissioner. The commissioner may also receive and accept on behalf of such children money due and payable to them as old age and survivors insurance benefits, veterans benefits, pensions, or other such monetary benefits. Gifts, contributions, pensions, and benefits under this paragraph must be deposited in and disbursed from the social welfare fund provided for in sections 256.88 to 256.92. new text end

new text begin (bb) The specific enumeration of powers and duties in this section must not be construed to be a limitation upon the general powers granted to the commissioner. new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 3. new text end

new text begin Subpoena power. new text end

new text begin (a) The commissioner may administer oaths and affirmations, take depositions, certify to official acts, and issue subpoenas to compel the attendance of individuals and the production of documents and other personal property necessary in connection with the administration of programs administered by the Department of Children, Youth, and Families. new text end

new text begin (b) The fees for service of a subpoena in paragraph (a) must be paid in the same manner as prescribed by law for a service of process issued by a district court. Witnesses must receive the same fees and mileage as in civil actions. new text end

new text begin (c) The subpoena in paragraph (a) shall be enforceable through the district court in the district where the subpoena is issued. new text end

new text begin (d) A subpoena issued under this subdivision must state that the person to whom the subpoena is directed may not disclose the fact that the subpoena was issued or the fact that the requested records have been given to law enforcement personnel or agents of the commissioner except: new text end

new text begin (1) insofar as the disclosure is necessary and agreed upon by the commissioner, to find and disclose the records; or new text end

new text begin (2) pursuant to court order. new text end

Sec. 4.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Advisory task forces. new text end

new text begin The commissioner may appoint advisory task forces to provide consultation on any of the programs under the commissioner's administration and supervision. A task force shall expire and the compensation, terms of office and removal of members shall be as provided in section 15.059. Notwithstanding section 15.059, the commissioner may pay a per diem of $35 to consumers and family members whose participation is needed in legislatively authorized state-level task forces, and whose participation on the task force is not as a paid representative of any agency, organization, or association. new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Centralized disbursement system. new text end

new text begin The commissioner may establish a system for the centralized disbursement of benefits administered by the commissioner as well as any related documents. Benefits must be issued by the state or county subject to section 142A.10. new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 6. new text end

new text begin Contracting with financial institutions. new text end

new text begin The state agency may contract with banks or other financial institutions to provide services associated with the processing of public assistance checks and may pay a service fee for these services, provided the fee charged does not exceed the fee charged to other customers of the institution for similar services. new text end

Sec. 7.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin American Indian child welfare projects. new text end

new text begin (a) The commissioner of children, youth, and families may authorize projects to initiate 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) screening, investigating, 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 142A.20 and 256.045 and chapter 260E that deal with the rights of individuals who are the subjects of reports or investigations, including notice and appeal rights and data practices requirements. The commissioner shall only authorize alternative methods that comply with the public policy under section 260E.01. The commissioner may seek any federal approval 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. new text end

new text begin (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. new text end

new text begin (c) In order to qualify for an American Indian child welfare project, a Tribe must: new text end

new text begin (1) be one of the existing Tribes with reservation land in Minnesota; new text end

new text begin (2) have a Tribal court with jurisdiction over child custody proceedings; new text end

new text begin (3) have a substantial number of children for whom determinations of maltreatment have occurred; new text end

new text begin (4)(i) have capacity to respond to reports of abuse and neglect under chapter 260E; 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

new text begin (5) provide a wide range of services to families in need of child welfare services; new text end

new text begin (6) have a Tribal-state title IV-E agreement in effect; and new text end

new text begin (7) enter into host Tribal contracts pursuant to section 142A.07, subdivision 6. new text end

new text begin (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: new text end

new text begin (1) assessment and prevention of child abuse and neglect; new text end

new text begin (2) family preservation; new text end

new text begin (3) facilitative, supportive, and reunification services; new text end

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

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

new text begin (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 chapter 260E 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. new text end

new text begin (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: new text end

new text begin (1) the child must be receiving child protective services; new text end

new text begin (2) the child must be in foster care; or new text end

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

new text begin 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. new text end

new text begin (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 7. Tribes with established child mortality review panels shall have access to nonpublic data and shall protect nonpublic data under subdivision 7, 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. new text end

new text begin (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. new text end

new text begin (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. new text end

Sec. 8.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 11. new text end

new text begin Information for persons with limited English-language proficiency. new text end

new text begin The commissioner shall implement a procedure for public assistance applicants and recipients to identify a language preference other than English in order to receive information pertaining to the public assistance programs in that preferred language. new text end

Sec. 9.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 12. new text end

new text begin Appropriation transfers to be reported. new text end

new text begin When the commissioner transfers operational money between programs under section 16A.285, in addition to the requirements of that section the commissioner must provide the chairs of the legislative committees that have jurisdiction over the agency's budget with sufficient detail to identify the account to which the money was originally appropriated, and the account to which the money is being transferred. new text end

Sec. 10.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Immigration status verifications. new text end

new text begin (a) Notwithstanding any waiver of this requirement by the secretary of the United States Department of Health and Human Services, the commissioner shall utilize the Systematic Alien Verification for Entitlements (SAVE) program to conduct immigration status verifications: new text end

new text begin (1) as required under United States Code, title 8, section 1642; and new text end

new text begin (2) for all applicants for food assistance benefits, whether under the federal SNAP, the MFIP or work first program, or the Minnesota food assistance program. new text end

new text begin (b) The commissioner shall comply with the reporting requirements under United States Code, title 42, section 611a, and any federal regulation or guidance adopted under that law. new text end

Sec. 11.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Public Assistance Reporting Information System. new text end

new text begin (a) The commissioner shall comply with the federal requirements in Public Law 110-379 in implementing the Public Assistance Reporting Information System (PARIS) to determine eligibility for all individuals applying for public benefits under chapter 142E and the Supplemental Nutrition Assistance Program. new text end

new text begin (b) The commissioner shall determine eligibility under paragraph (a) by performing data matches, including matching with medical assistance, cash, child care, and supplemental assistance programs operated by other states. new text end

Sec. 12.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 15. new text end

new text begin Drug convictions. new text end

new text begin (a) The state court administrator shall provide a report every six months by electronic means to the commissioner of children, youth, and families, including the name, address, date of birth, and, if available, driver's license or state identification card number, date of the sentence, effective date of the sentence, and county in which the conviction occurred, of each person convicted of a felony under chapter 152, except for convictions under section 152.0263 or 152.0264, during the previous six months. new text end

new text begin (b) The commissioner shall determine whether the individuals who are the subject of the data reported under paragraph (a) are receiving public assistance under chapter 142F or 142G, and if an individual is receiving assistance under chapter 142F or 142G, the commissioner shall instruct the county to proceed under section 142G.18 or 256D.024, whichever is applicable, for this individual. new text end

new text begin (c) The commissioner shall not retain any data received under paragraph (a) that does not relate to an individual receiving publicly funded assistance under chapter 142G or 256D. new text end

Sec. 13.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 16. new text end

new text begin Data sharing with Department of Children, Youth, and Families; multiple identification cards. new text end

new text begin (a) The commissioner of public safety shall, on a monthly basis, provide the commissioner of children, youth, and families with the first, middle, and last name, the address, date of birth, driver's license or state identification card number, and all photographs or electronically produced images of all applicants and holders whose drivers' licenses and state identification cards have been canceled under section 171.14, paragraph (a), clause (2) or (3), by the commissioner of public safety. After the initial data report has been provided by the commissioner of public safety to the commissioner of children, youth, and families under this paragraph, subsequent reports shall only include cancellations that occurred after the end date of the cancellations represented in the previous data report. new text end

new text begin (b) The commissioner of children, youth, and families shall compare the information provided under paragraph (a) with the commissioner's data regarding recipients of all public assistance programs managed by the Department of Children, Youth, and Families to determine whether any individual with multiple identification cards issued by the Department of Public Safety has illegally or improperly enrolled in any public assistance program managed by the Department of Children, Youth, and Families. new text end

new text begin (c) If the commissioner of children, youth, and families determines that an applicant or recipient has illegally or improperly enrolled in any public assistance program, the commissioner shall provide all due process protections to the individual before terminating the individual from the program according to applicable statute and notifying the county attorney. new text end

Sec. 14.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 17. new text end

new text begin Data sharing with Department of Children, Youth, and Families; legal presence date. new text end

new text begin (a) The commissioner of public safety shall, on a monthly basis, provide the commissioner of children, youth, and families with the first, middle, and last name, and address, date of birth, and driver's license or state identification card number of all applicants and holders of drivers' licenses and state identification cards whose temporary legal presence date has expired and as a result the driver's license or identification card has been accordingly canceled under section 171.14 by the commissioner of public safety. new text end

new text begin (b) The commissioner of children, youth, and families shall use the information provided under paragraph (a) to determine whether the eligibility of any recipients of public assistance programs managed by the Department of Children, Youth, and Families has changed as a result of the status change in the Department of Public Safety data. new text end

new text begin (c) If the commissioner of children, youth, and families determines that a recipient has illegally or improperly received benefits from any public assistance program, the commissioner shall provide all due process protections to the individual before terminating the individual from the program according to applicable statute and notifying the county attorney. new text end

Sec. 15.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 18. new text end

new text begin Homeless services. new text end

new text begin The commissioner of children, youth, and families may contract directly with nonprofit organizations providing homeless services in two or more counties. new text end

Sec. 16.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 19. new text end

new text begin Nonstate funding for program costs. new text end

new text begin Notwithstanding sections 16A.013 to 16A.016, the commissioner may accept, on behalf of the state, additional funding from sources other than state funds for the purpose of financing the cost of assistance program grants or nongrant administration. All additional funding is appropriated to the commissioner for use as designated by the grantor of funding. new text end

Sec. 17.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 20. new text end

new text begin Systems continuity. new text end

new text begin In the event of disruption of technical systems or computer operations, the commissioner may use available grant appropriations to ensure continuity of payments for maintaining the health, safety, and well-being of clients served by programs administered by the Department of Children, Youth, and Families. Grant funds must be used in a manner consistent with the original intent of the appropriation. new text end

Sec. 18.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 21. new text end

new text begin Federal administrative reimbursement dedicated. new text end

new text begin Federal administrative reimbursement resulting from the federal child support grant expenditures authorized under United States Code, title 42, section 1315, is appropriated to the commissioner. new text end

Sec. 19.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 23. new text end

new text begin DCYF receipt center accounting. new text end

new text begin The commissioner may transfer appropriations to, and account for DCYF receipt center operations in, the special revenue fund. new text end

Sec. 20.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 24. new text end

new text begin Nonfederal share transfers. new text end

new text begin The nonfederal share of activities for which federal administrative reimbursement is appropriated to the commissioner may be transferred to the special revenue fund. new text end

Sec. 21.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 25. new text end

new text begin Interview expenses. new text end

new text begin Job applicants for professional, administrative, or highly technical positions recruited by the commissioner may be reimbursed for necessary travel expenses to and from interviews arranged by the commissioner. new text end

Sec. 22.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 26. new text end

new text begin Changes to grant programs. new text end

new text begin Prior to implementing any substantial changes to a grant funding formula disbursed through allocations administered by the commissioner, the commissioner must provide a report on the nature of the changes, the effect the changes will have, whether any funding will change, and other relevant information, to the chairs and ranking minority members of the legislative committees with jurisdiction over children, youth, and families. The report must be provided prior to the start of a regular session, and the proposed changes cannot be implemented until after the adjournment of that regular session. new text end

Sec. 23.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 27. new text end

new text begin Federal grants for Minnesota Indians. new text end

new text begin The commissioner of children, youth, and families is authorized to enter into contracts with the United States Departments of Health and Human Services, Education, and Interior, and the Bureau of Indian Affairs, for the purpose of receiving federal grants for the support of Minnesota's Indian communities. new text end

Sec. 24.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 28. new text end

new text begin Reimbursement of counties for certain Indian benefits costs. new text end

new text begin (a) The commissioner, to the extent that state and federal money is available, shall reimburse any county for all benefits costs expended by the county to any Indian who is an enrolled member of the Red Lake Band of Chippewa and resides upon the Red Lake Indian Reservation. The commissioner may advance payments to a county on an estimated basis subject to audit and adjustment at the end of each state fiscal year. Reimbursements shall be prorated if the state appropriation for this purpose is insufficient to provide full reimbursement. new text end

new text begin (b) The commissioner may promulgate rules for the carrying out of the provisions of this subdivision and may negotiate for and accept grants from the United States government for the purposes of this section. new text end

Sec. 25.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 29. new text end

new text begin Rules on physical control of clients for facilities. new text end

new text begin For any applicable facility licensed or operated by the commissioner, the commissioner shall abide by and enforce the nonrulemaking provisions of sections 245.825 and 245.8251 and any rules adopted by the commissioner of human services pursuant to those sections. The commissioner shall cooperate with the commissioner of human services in any data collection and reviews of rules related to sections 245.825 and 245.8251. new text end

Sec. 26.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 30. new text end

new text begin Court-awarded funds; disposition. new text end

new text begin (a) The commissioner shall notify the house of representatives Ways and Means and senate Finance Committees of the terms of any contractual arrangement entered into by the commissioner and the attorney general, pursuant to an order of any court of law that provides for the receipt of funds by the commissioner. new text end

new text begin (b) Any funds recovered or received by the commissioner pursuant to an order of any court of law shall be placed in the general fund. new text end

Sec. 27.

Minnesota Statutes 2023 Supplement, section 142A.03, is amended by adding a subdivision to read:

new text begin Subd. 31. new text end

new text begin Donated funds from private postsecondary institutions. new text end

new text begin The commissioner may accept, on behalf of the state, funds donated from private postsecondary institutions, as the state's share in claiming federal Title IV-E reimbursement, to support the Child Welfare State/University Partnership, consistent with Code of Federal Regulations, title 45, chapter 235, section 235.66, Sources of State Funds, if the funds: new text end

new text begin (1) are transferred to the state and under the state's administrative control; new text end

new text begin (2) are donated with no restriction that the funds be used for the training of a particular individual or at a particular facility or institution; and new text end

new text begin (3) do not revert to the donor's facility or use. new text end

Sec. 28.

new text begin [142A.06] ADMINISTRATION OF FEDERAL GRANTS-IN-AID. new text end

new text begin Subdivision 1. new text end

new text begin Administration of grants-in-aid. new text end

new text begin If, when and during such time as grants-in-aid are provided by the federal government for relief of the poor and accepted by this state, such aid shall be administered pursuant to and in accordance with rules promulgated and adopted by the commissioner of children, youth, and families; and during such time any provision of Minnesota Statutes 1945, chapter 261, as amended by Laws 1947, chapter 546, of Minnesota Statutes 1945, chapter 262, and of Minnesota Statutes 1945, chapter 263, in conflict with such rules shall be and remain, to the extent of such conflict, inoperative and suspended. new text end

new text begin Subd. 2. new text end

new text begin Treatment of grants-in-aid. new text end

new text begin Grants-in-aid received from the federal government for any welfare, assistance or relief program or for administration under the jurisdiction of the commissioner shall, in the first instance, be credited to a federal grant fund and shall be transferred therefrom to the credit of the commissioner in the appropriate account upon certification of the commissioner that the amounts so requested to be transferred have been earned or are required for the purposes and programs intended. Moneys received by the federal grant fund need not be budgeted as such, provided transfers from the fund are budgeted for allotment purposes in the appropriate appropriations. new text end

new text begin Subd. 3. new text end

new text begin Securing grants-in-aid. new text end

new text begin The commissioner shall negotiate with the federal government, or any agency, bureau, or department thereof, for the purpose of securing or obtaining any grants or aids. Any grants or aids thus secured or received are appropriated to the commissioner and made available for the uses and purposes for which they were received but shall be used to reduce the direct appropriations provided by law unless federal law prohibits such action or unless the commissioner obtains approval of the governor who shall seek the advice of the Legislative Advisory Commission. new text end

new text begin Subd. 4. new text end

new text begin Exclusion. new text end

new text begin This section does not apply to federal grants or aids received from the United States Department of Education. new text end

Sec. 29.

new text begin [142A.07] GRANTS AND PURCHASE OF SERVICE CONTRACTS. new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The local agency may purchase community social services by grant or purchase of service contract from agencies or individuals approved as vendors. new text end

new text begin Subd. 2. new text end

new text begin Duties of local agency. new text end

new text begin The local agency must: new text end

new text begin (1) use a written grant or purchase of service contract when purchasing community social services. Every grant and purchase of service contract must be completed, signed, and approved by all parties to the agreement, including the county board, unless the county board has designated the local agency to sign on its behalf. No service shall be provided before the effective date of the grant or purchase of service contract; new text end

new text begin (2) determine a client's eligibility for purchased services, or delegate the responsibility for making the preliminary determination to the approved vendor under the terms of the grant or purchase of service contract; new text end

new text begin (3) ensure the development of an individual social service plan based on the client's needs; new text end

new text begin (4) monitor purchased services and evaluate grants and contracts on the basis of client outcomes; and new text end

new text begin (5) purchase only from approved vendors. new text end

new text begin Subd. 3. new text end

new text begin Local agency criteria. new text end

new text begin When the local agency chooses to purchase community social services from a vendor that is not subject to state licensing laws or department rules, the local agency must establish written criteria for vendor approval to ensure the health, safety, and well being of clients. new text end

new text begin Subd. 4. new text end

new text begin Case records and reporting requirements. new text end

new text begin Case records and data reporting requirements for grants and purchased services are the same as case record and data reporting requirements for direct services. new text end

new text begin Subd. 5. new text end

new text begin Files. new text end

new text begin The local agency must keep an administrative file for each grant and contract. new text end

new text begin Subd. 6. new text end

new text begin Contracting within and across county lines; lead county contracts; lead Tribal contracts. new text end

new text begin (a) Paragraphs (b) to (f) govern contracting within and across county lines and lead county contracts. Paragraphs (b) to (f) govern contracting within and across reservation boundaries and lead Tribal contracts for initiative Tribes under section 142A.03, subdivision 9. For purposes of this subdivision, "local agency" includes a Tribe or a county agency. new text end

new text begin (b) Once a local agency and an approved vendor execute a contract that meets the requirements of this subdivision, the contract governs all other purchases of service from the vendor by all other local agencies for the term of the contract. The local agency that negotiated and entered into the contract becomes the lead Tribe or county for the contract. new text end

new text begin (c) When the local agency in the county or reservation where a vendor is located wants to purchase services from that vendor and the vendor has no contract with the local agency or any other Tribe or county, the local agency must negotiate and execute a contract with the vendor. new text end

new text begin (d) When a local agency wants to purchase services from a vendor located in another county or reservation, it must notify the local agency in the county or reservation where the vendor is located. Within 30 days of being notified, the local agency in the vendor's county or reservation must: new text end

new text begin (1) if it has a contract with the vendor, send a copy to the inquiring local agency; new text end

new text begin (2) if there is a contract with the vendor for which another local agency is the lead Tribe or county, identify the lead Tribe or county to the inquiring agency; or new text end

new text begin (3) if no local agency has a contract with the vendor, inform the inquiring agency whether it will negotiate a contract and become the lead Tribe or county. If the agency where the vendor is located will not negotiate a contract with the vendor because of concerns related to clients' health and safety, the agency must share those concerns with the inquiring local agency. new text end

new text begin (e) If the local agency in the county where the vendor is located declines to negotiate a contract with the vendor or fails to respond within 30 days of receiving the notification under paragraph (d), the inquiring agency is authorized to negotiate a contract and must notify the local agency that declined or failed to respond. new text end

new text begin (f) When the inquiring local agency under paragraph (e) becomes the lead Tribe or county for a contract and the contract expires and needs to be renegotiated, that Tribe or county must again follow the requirements under paragraph (d) and notify the local agency where the vendor is located. The local agency where the vendor is located has the option of becoming the lead Tribe or county for the new contract. If the local agency does not exercise the option, paragraph (e) applies. new text end

new text begin Subd. 7. new text end

new text begin Contracting for performance. new text end

new text begin A local agency may negotiate a supplemental agreement to a contract executed between a lead agency and an approved vendor under subdivision 6 for the purposes of contracting for specific performance. The supplemental agreement may augment the lead contract requirements and rates for services authorized by that local agency only. The additional provisions must be negotiated with the vendor and designed to encourage successful, timely, and cost-effective outcomes for clients, and may establish incentive payments, penalties, performance-related reporting requirements, and similar conditions. The per diem rate allowed under this subdivision must not be less than the rate established in the lead county contract. Nothing in the supplemental agreement between a local agency and an approved vendor binds the lead agency or other local agencies to the terms and conditions of the supplemental agreement. new text end

Sec. 30.

new text begin [142A.08] PLAIN LANGUAGE IN WRITTEN MATERIALS. new text end

new text begin (a) To the extent reasonable and consistent with the goals of providing easily understandable and readable materials and complying with federal and state laws governing the programs, all written materials relating to services and determinations of eligibility for or amounts of benefits that will be given to applicants for or recipients of assistance under a program administered or supervised by the commissioner must be understandable to a person who reads at the seventh-grade level, using the Flesch scale analysis readability score as determined under section 72C.09. new text end

new text begin (b) All written materials relating to determinations of eligibility for or amounts of benefits that will be given to applicants for or recipients of assistance under programs administered or supervised by the commissioner must be developed to satisfy the plain language requirements of the Plain Language Contract Act under sections 325G.29 to 325G.36. Materials may be submitted to the attorney general for review and certification. Notwithstanding section 325G.35, subdivision 1, the attorney general shall review submitted materials to determine whether they comply with the requirements of section 325G.31. The remedies available pursuant to sections 8.31 and 325G.33 to 325G.36 do not apply to these materials. Failure to comply with this section does not provide a basis for suspending the implementation or operation of other laws governing programs administered by the commissioner. new text end

new text begin (c) The requirements of this section do not apply to materials that must be submitted to a federal agency for approval, to the extent that application of the requirements prevents federal approval. new text end

new text begin (d) Nothing in this section may be construed to prohibit a lawsuit brought to require the commissioner to comply with this section or to affect individual appeal rights granted pursuant to section 256.045. new text end

Sec. 31.

new text begin [142A.09] BACKGROUND STUDIES ON LICENSEES AND OTHER PERSONNEL. new text end

new text begin Subdivision 1. new text end

new text begin Background studies required. new text end

new text begin The commissioner of children, youth, and families shall contract with the commissioner of human services to conduct background studies of individuals specified in section 245C.03, subdivision 1, affiliated with: new text end

new text begin (1) a facility or program licensed or seeking a license under chapter 142B; new text end

new text begin (2) a license-exempt child care center certified under chapter 142C; or new text end

new text begin (3) a legal nonlicensed child care provider authorized under chapter 142E. new text end

new text begin Subd. 2. new text end

new text begin Responsibilities of commissioner of human services. new text end

new text begin (a) The commissioner of human services shall conduct the background studies required by subdivision 1 in compliance with the provisions of chapter 245C. The commissioner of human services shall provide necessary forms and instructions, shall conduct the necessary background studies of individuals, and shall provide notification of the results of the studies to the facilities, individuals, and the commissioner of children, youth, and families. new text end

new text begin (b) If the commissioner of human services determines that an individual is disqualified pursuant to chapter 245C, the commissioner of human services shall notify the license holder; the commissioner of children, youth, and families; and the individual and shall inform the individual of the right to request a reconsideration of the disqualification. new text end

new text begin Subd. 3. new text end

new text begin Reconsiderations. new text end

new text begin (a) Notwithstanding any provision of chapter 245C, the commissioner of children, youth, and families shall review and decide reconsideration requests, including requests for variances, for all background studies of individuals in subdivision 1, paragraph (a), except for facilities or programs that are also licensed by the commissioner of human services. The commissioner of children, youth, and families must review and decide reconsideration requests in accordance with the procedures and criteria contained in chapter 245C. new text end

new text begin (b) The commissioner of human services is solely responsible for reviewing and deciding a reconsideration request for a background study of an individual affiliated with a facility or program licensed or certified by both the commissioner of children, youth, and families and the commissioner of human services. new text end

new text begin (c) The commissioner of children, youth, and family's decision must be provided to the individual and to the commissioner of human services. The commissioner's decision to grant or deny a reconsideration of disqualification is the final administrative agency action, except under the circumstances described in sections 245C.25, 245C.27, and 245C.28, subdivision 3. new text end

new text begin Subd. 4. new text end

new text begin Responsibilities of facilities and programs. new text end

new text begin Facilities and programs described in subdivision 1 shall be responsible for cooperating with the departments in implementing the provisions of this section. The responsibilities imposed on applicants, certification holders, and licensees under chapters 245A and 245C shall apply to these facilities. The provision of section 245C.09 shall apply to the refusal to cooperate with the completion of the background studies by an applicant, a licensee, a registrant, or an individual. new text end

Sec. 32.

new text begin [142A.10] COMPLIANCE SYSTEM. new text end

new text begin (a) The commissioner shall coordinate with the commissioner of human services to administer the compliance system in section 256.017. new text end

new text begin (b) The commissioner shall administer the compliance system for the Minnesota family investment program, the Supplemental Nutrition Assistance Program (SNAP), the child care assistance program, and all other programs administered by the commissioner or on behalf of the commissioner under the powers and authorities named in section 142A.03, subdivision 2. new text end

new text begin (c) The purpose of this section is to permit the commissioner to supervise the administration of public assistance programs; to enforce timely and accurate distribution of benefits, completeness of service, and efficient and effective program management and operations; to increase uniformity and consistency in the administration and delivery of public assistance programs throughout the state; and to reduce the possibility of sanctions and fiscal disallowances for noncompliance with federal regulations and state statutes. The commissioner, or the commissioner's representative, may issue administrative subpoenas as needed in administering the compliance system. new text end

new text begin (d) The commissioner shall utilize training, technical assistance, and monitoring activities, as specified in section 142A.03, subdivision 2, to encourage county agency compliance with written policies and procedures. new text end

new text begin (e) The commissioner shall coordinate with the commissioner of human services in funding and awarding grants from the county public assistance incentive fund under section 256.018. new text end

Sec. 33.

new text begin [142A.11] COUNTY PUBLIC ASSISTANCE INCENTIVE FUND. new text end

new text begin (a) The commissioner of children, youth, and families, in coordination with the commissioner of human services, shall grant incentive awards of money specifically appropriated for this purpose to counties that: (1) have not been assessed an administrative penalty under section 256.017 in the corresponding fiscal year; and (2) perform satisfactorily according to indicators established by the commissioner. new text end

new text begin (b) After consultation with county agencies, the commissioner shall inform county agencies in writing of the performance indicators that govern the awarding of the incentive fund for each fiscal year by April of the preceding fiscal year. new text end

new text begin (c) The commissioner may set performance indicators to govern the awarding of the total fund, may allocate portions of the fund to be awarded by unique indicators, or may set a sole indicator to govern the awarding of funds. new text end

new text begin (d) The funds shall be awarded to qualifying county agencies according to their share of benefits for the programs related to the performance indicators governing the distribution of the fund or part of the fund as compared to the total benefits of all qualifying county agencies for the programs related to the performance indicators governing the distribution of the fund or part of the fund. new text end

Sec. 34.

new text begin [142A.12] LIMITS ON RECEIVING PUBLIC FUNDS. new text end

new text begin Subdivision 1. new text end

new text begin Prohibition. new text end

new text begin (a) If a provider, vendor, or individual enrolled, licensed, receiving funds under a grant contract, or registered in any program administered by the commissioner, including under the commissioner's powers and authorities in section 142A.03, is excluded from that program, the commissioner shall: new text end

new text begin (1) prohibit the excluded provider, vendor, or individual from enrolling, becoming licensed, receiving grant funds, or registering in any other program administered by the commissioner; and new 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) If a provider, vendor, or individual enrolled, licensed, receiving funds under a grant contract, or registered in any program administered by the commissioner, including under the commissioner's powers and authorities in section 142A.03, is excluded from that program, the commissioner may: new text end

new text begin (1) prohibit any associated entities or associated individuals from enrolling, becoming licensed, receiving grant funds, or registering in any other program administered by the commissioner; and new text end

new text begin (2) disenroll, revoke or suspend a license of, disqualify, or debar any associated entities or associated individuals in any other program administered by the commissioner. new text end

new text begin (c) If a provider, vendor, or individual enrolled, licensed, or otherwise receiving funds under any contract or registered in any program administered by a Minnesota state or federal agency is excluded from that program, the commissioner of children, youth, and families may: new text end

new text begin (1) prohibit the excluded provider, vendor, individual, or any associated entities or associated individuals from enrolling, becoming licensed, receiving grant funds, or registering in any program administered by the commissioner; and new text end

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

new text begin (d) The duration of a prohibition, disenrollment, revocation, suspension, disqualification, or debarment under paragraph (a) must last for the longest applicable sanction or disqualifying period in effect for the provider, vendor, or individual permitted by state or federal law. The duration of a prohibition, disenrollment, revocation, suspension, disqualification, or debarment under paragraphs (b) and (c) may last until up to the longest applicable sanction or disqualifying period in effect for the provider, vendor, individual, associated entity, or associated individual as permitted by state or federal law. new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions have the meanings given. new text end

new text begin (b) "Associated entity" means a provider or vendor owned or controlled by an excluded individual. new text end

new text begin (c) "Associated individual" means an individual or entity that has a relationship with the business or its owners or controlling individuals, such that the individual or entity would have knowledge of the financial practices of the program in question. new text end

new text begin (d) "Excluded" means removed under other authorities from a program administered by a Minnesota state or federal agency, including a final determination to stop payments. new text end

new text begin (e) "Individual" means a natural person providing products or services as a provider or vendor. new text end

new text begin (f) "Provider" means any entity, individual, owner, controlling individual, license holder, director, or managerial official of an entity receiving payment from a program administered by a Minnesota state or federal agency. new text end

new text begin Subd. 3. new text end

new text begin Notice. new text end

new text begin Within five days of taking an action under subdivision (1), paragraph (a), (b), or (c), against a provider, vendor, individual, associated individual, or associated entity, the commissioner must send notice of the action to the provider, vendor, individual, associated individual, or associated entity. The notice must state: new text end

new text begin (1) the basis for the action; new text end

new text begin (2) the effective date of the action; new text end

new text begin (3) the right to appeal the action; and new text end

new text begin (4) the requirements and procedures for reinstatement. new text end

new text begin Subd. 4. new text end

new text begin Appeal. new text end

new text begin Upon receipt of a notice under subdivision 3, a provider, vendor, individual, associated individual, or associated entity may request a contested case hearing, as defined in section 14.02, subdivision 3, by filing with the commissioner a written request of appeal. The scope of any contested case hearing is solely limited to action taken under this section. The commissioner must receive the appeal request no later than 30 days after the date the notice was mailed to the provider, vendor, individual, associated individual, or associated entity. The appeal request must specify: new text end

new text begin (1) each disputed item and the reason for the dispute; new text end

new text begin (2) the authority in statute or rule upon which the provider, vendor, individual, associated individual, or associated entity relies for each disputed item; new text end

new text begin (3) the name and address of the person or entity with whom contacts may be made regarding the appeal; and new text end

new text begin (4) any other information required by the commissioner. new text end

new text begin Subd. 5. new text end

new text begin Withholding of payments. new text end

new text begin (a) Except as otherwise provided by state or federal law, the commissioner may withhold payments to a provider, vendor, individual, associated individual, or associated entity in any program administered by the commissioner if the commissioner determines there is a credible allegation of fraud for which an investigation is pending for a program administered by a Minnesota state or federal agency. new text end

new text begin (b) For purposes of this subdivision, "credible allegation of fraud" means an allegation that has been verified by the commissioner from any source, including but not limited to: new text end

new text begin (1) fraud hotline complaints; new text end

new text begin (2) claims data mining; new text end

new text begin (3) patterns identified through provider audits, civil false claims cases, and law enforcement investigations; and new text end

new text begin (4) court filings and other legal documents, including but not limited to police reports, complaints, indictments, informations, affidavits, declarations, and search warrants. new text end

new text begin (c) The commissioner must send notice of the withholding of payments within five days of taking such action. The notice must: new text end

new text begin (1) state that payments are being withheld according to this subdivision; new text end

new text begin (2) set forth the general allegations related to the withholding action, except the notice need not disclose specific information concerning an ongoing investigation; new text end

new text begin (3) state that the withholding is for a temporary period and cite the circumstances under which the withholding will be terminated; and new text end

new text begin (4) inform the provider, vendor, individual, associated individual, or associated entity of the right to submit written evidence to contest the withholding action for consideration by the commissioner. new text end

new text begin (d) If the commissioner withholds payments under this subdivision, the provider, vendor, individual, associated individual, or associated entity has a right to request administrative reconsideration. A request for administrative reconsideration must be made in writing, state with specificity the reasons the payment withholding decision is in error, and include documents to support the request. Within 60 days from receipt of the request, the commissioner shall judiciously review allegations, facts, evidence available to the commissioner, and information submitted by the provider, vendor, individual, associated individual, or associated entity to determine whether the payment withholding should remain in place. new text end

new text begin (e) The commissioner shall stop withholding payments if the commissioner determines there is insufficient evidence of fraud by the provider, vendor, individual, associated individual, or associated entity or when legal proceedings relating to the alleged fraud are completed, unless the commissioner has sent notice under subdivision 3 to the provider, vendor, individual, associated individual, or associated entity. new text end

new text begin (f) The withholding of payments is a temporary action and is not subject to appeal under section 142A.21 or chapter 14. new text end

Sec. 35.

new text begin [142A.13] ELECTRONIC BENEFIT TRANSFER CARD. new text end

new text begin Subdivision 1. new text end

new text begin Electronic benefit transfer (EBT) card. new text end

new text begin Cash benefits for the general assistance and Minnesota supplemental aid programs under chapter 256D and programs under chapter 142G must be issued on an EBT card with the name of the head of household printed on the card. The card must include the following statement: "It is unlawful to use this card to purchase tobacco products or alcoholic beverages." This card must be issued within 30 calendar days of an eligibility determination. During the initial 30 calendar days of eligibility, a recipient may have cash benefits issued on an EBT card without a name printed on the card. This card may be the same card on which Supplemental Nutrition Assistance Program (SNAP) benefits are issued and does not need to meet the requirements of this section. new text end

Sec. 36.

new text begin [142A.14] TAX REBATES. new text end

new text begin Any federal or state tax rebate received by a recipient of a public assistance program shall not be counted as income or as an asset for purposes of any of the public assistance programs under this chapter or any other chapter, including, but not limited to, chapter 142E, 142F, and 142G to the extent permitted under federal law. new text end

Sec. 37.

new text begin [142A.15] PUBLIC ASSISTANCE LIEN ON RECIPIENT'S CAUSE OF ACTION. new text end

new text begin Subdivision 1. new text end

new text begin State agency has lien. new text end

new text begin When the state agency provides, pays for, or becomes liable for medical care or furnishes subsistence or other payments to a person, the agency shall have a lien for the cost of the care and payments on any and all causes of action or recovery rights under any policy, plan, or contract providing benefits for health care or injury that accrue to the person to whom the care or payments were furnished, or to the person's legal representatives, as a result of the occurrence that necessitated the medical care, subsistence, or other payments. For purposes of this section, "state agency" includes prepaid health plans under contract with the commissioner according to sections 256B.69, 256L.01, subdivision 7, 256L.03, subdivision 6, and 256L.12, and Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, paragraph (c); children's mental health collaboratives under section 245.493; demonstration projects for persons with disabilities under section 256B.77; nursing homes reimbursed under chapter 256R; and county-based purchasing entities under section 256B.692. new text end

new text begin Subd. 2. new text end

new text begin Perfection; enforcement. new text end

new text begin (a) The state agency may perfect and enforce its lien under sections 514.69, 514.70, and 514.71, and must file the verified lien statement with the appropriate court administrator in the county of financial responsibility. The verified lien statement must contain the following: the name and address of the person to whom medical care, subsistence, or other payment was furnished; the date of injury; the name and address of vendors furnishing medical care; the dates of the service or payment; the amount claimed to be due for the care or payment; and to the best of the state agency's knowledge, the names and addresses of all persons, firms, or corporations claimed to be liable for damages arising from the injuries. new text end

new text begin (b) This section does not affect the priority of any attorney's lien. The state agency is not subject to any limitations period referred to in section 514.69 or 514.71 and has one year from the date notice is first received by it under subdivision 4, paragraph (c), even if the notice is untimely, or one year from the date medical bills are first paid by the state agency, whichever is later, to file its verified lien statement. The state agency may commence an action to enforce the lien within one year of (1) the date the notice required by subdivision 4, paragraph (c), is received, or (2) the date the person's cause of action is concluded by judgment, award, settlement, or otherwise, whichever is later. new text end

new text begin (c) If the notice required in subdivision 4 is not provided by any of the parties to the claim at any stage of the claim, the state agency will have one year from the date the state agency learns of the lack of notice to commence an action. If amounts on the claim or cause of action are paid and the amount required to be paid to the state agency under subdivision 5 is not paid to the state agency, the state agency may commence an action to recover on the lien against any or all of the parties or entities that have either paid or received the payments. new text end

new text begin Subd. 3. new text end

new text begin Prosecutor. new text end

new text begin (a) The attorney general shall represent the commissioner to enforce the lien created under this section or, if no action has been brought, may initiate and prosecute an independent action on behalf of the commissioner against a person, firm, or corporation that may be liable to the person to whom the care or payment was furnished. new text end

new text begin (b) Any prepaid health plan providing services under sections 256B.69 and 256L.12 and Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, paragraph (c); children's mental health collaboratives under section 245.493; demonstration projects for persons with disabilities under section 256B.77; nursing homes reimbursed under chapter 256R; or the county-based purchasing entity providing services under section 256B.692 may retain legal representation to enforce their lien created under this section or, if no action has been brought, may initiate and prosecute an independent action on their behalf against a person, firm, or corporation that may be liable to the person to whom the care or payment was furnished. new text end

new text begin Subd. 4. new text end

new text begin Notice. new text end

new text begin (a) The state agency must be given notice of monetary claims against a person, firm, or corporation that may be liable in damages to the injured person when the state agency has paid for or become liable for the cost of medical care or payments related to the injury. Notice must be given as provided in this subdivision. new text end

new text begin (b) Applicants for public assistance shall notify the state or county agency of any possible claims they may have against a person, firm, or corporation when they submit the application for assistance. Recipients of public assistance shall notify the state or county agency of any possible claims when those claims arise. new text end

new text begin (c) A person providing medical care services to a recipient of public assistance shall notify the state agency when the person has reason to believe that a third party may be liable for payment of the cost of medical care. new text end

new text begin (d) A party to a claim upon which the state agency may be entitled to a lien under this section shall notify the state agency of its potential lien claim at each of the following stages of a claim: new text end

new text begin (1) when a claim is filed; new text end

new text begin (2) when an action is commenced; and new text end

new text begin (3) when a claim is concluded by payment, award, judgment, settlement, or otherwise. new text end

new text begin (e) Every party involved in any stage of a claim under this subdivision is required to provide notice to the state agency at that stage of the claim. However, when one of the parties to the claim provides notice at that stage, every other party to the claim is deemed to have provided the required notice at that stage of the claim. If the required notice under this paragraph is not provided to the state agency, every party will be deemed to have failed to provide the required notice. A party to a claim includes the injured person or the person's legal representative, the plaintiff, the defendants, or persons alleged to be responsible for compensating the injured person or plaintiff, and any other party to the cause of action or claim, regardless of whether the party knows the state agency has a potential or actual lien claim. new text end

new text begin (f) Notice given to the county agency is not sufficient to meet the requirements of paragraphs (c) and (d). new text end

new text begin Subd. 5. new text end

new text begin Costs deducted. new text end

new text begin Upon any judgment, award, or settlement of a cause of action, or any part of it, upon which the state agency has filed its lien, including compensation for liquidated, unliquidated, or other damages, reasonable costs of collection, including attorney fees, must be deducted first. The full amount of public assistance paid to or on behalf of the person as a result of the injury must be deducted next, and paid to the state agency. The rest must be paid to the public assistance recipient or other plaintiff. The plaintiff, however, must receive at least one-third of the net recovery after attorney fees and other collection costs. new text end

new text begin Subd. 6. new text end

new text begin When effective. new text end

new text begin The lien created under this section is effective with respect to any public assistance paid on or after August 1, 1987. new text end

new text begin Subd. 7. new text end

new text begin Cooperation with information requests required. new text end

new text begin (a) Upon the request of the commissioner: new text end

new text begin (1) any state agency or third-party payer shall cooperate by furnishing information to help establish a third-party liability, as required by the federal Deficit Reduction Act of 2005, Public Law 109-171; new text end

new text begin (2) any employer or third-party payer shall cooperate by furnishing a data file containing information about group health insurance plan or medical benefit plan coverage of its employees or insureds within 60 days of the request. The information in the data file must include at least the following: full name, date of birth, Social Security number if collected and stored in a system routinely used for producing data files by the employer or third-party payer, employer name, policy identification number, group identification number, and plan or coverage type. new text end

new text begin (b) For purposes of section 176.191, subdivision 4, the commissioner of labor and industry may allow the commissioner of children, youth, and families and county agencies direct access and data matching on information relating to workers' compensation claims in order to determine whether the claimant has reported the fact of a pending claim and the amount paid to or on behalf of the claimant to the commissioner of human services. new text end

new text begin (c) For the purpose of compliance with section 169.09, subdivision 13, and federal requirements under Code of Federal Regulations, title 42, section 433.138 (d)(4), the commissioner of public safety shall provide accident data as requested by the commissioner of children, youth, and families. The disclosure shall not violate section 169.09, subdivision 13, paragraph (d). new text end

new text begin (d) The commissioner of children, youth, and families and county agencies shall limit its use of information gained from agencies, third-party payers, and employers to purposes directly connected with the administration of its public assistance and child support programs. The provision of information by agencies, third-party payers, and employers to the department under this subdivision is not a violation of any right of confidentiality or data privacy. new text end

Sec. 38.

new text begin [142A.20] ADMINISTRATIVE AND JUDICIAL REVIEW OF CHILDREN, YOUTH, AND FAMILIES MATTERS. new text end

new text begin Subdivision 1. new text end

new text begin Children, youth, and families judges; appointment. new text end

new text begin The commissioner of children, youth, and families may appoint one or more state children, youth, and families judges to conduct hearings and recommend orders in accordance with subdivisions 2, 3, and 5. Children, youth, and families judges designated pursuant to this section may administer oaths and shall be under the control and supervision of the commissioner of children, youth, and families and shall not be a part of the Office of Administrative Hearings established pursuant to sections 14.48 to 14.56. The commissioner shall only appoint as a full-time children, youth, and families judge an individual who is licensed to practice law in Minnesota and who is: new text end

new text begin (1) in active status; new text end

new text begin (2) an inactive resident; new text end

new text begin (3) retired; new text end

new text begin (4) on disabled status; or new text end

new text begin (5) on retired senior status. new text end

new text begin Subd. 2. new text end

new text begin State agency hearings. new text end

new text begin (a) State agency hearings are available for the following: new text end

new text begin (1) any person: new text end

new text begin (i) applying for, receiving, or having received public assistance or a program of social services administered by the commissioner or a county agency on behalf of the commissioner or the federal Food and Nutrition Act; and new text end

new text begin (ii) whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid; new text end

new text begin (2) any person whose claim for foster care payment according to a placement of the child resulting from a child protection assessment under chapter 260E is denied or not acted upon with reasonable promptness, regardless of funding source; new text end

new text begin (3) any person to whom a right of appeal according to this section is given by other provision of law; new text end

new text begin (4) except as provided under chapter 142B, an individual or facility determined to have maltreated a minor under chapter 260E, after the individual or facility has exercised the right to administrative reconsideration under chapter 260E; new text end

new text begin (5) except as provided under chapter 245C, an individual disqualified under sections 245C.14 and 245C.15, following a reconsideration decision issued under section 245C.23, on the basis of serious or recurring maltreatment; of a preponderance of the evidence that the individual has committed an act or acts that meet the definition of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports required under section 260E.06, subdivision 1, or 626.557, subdivision 3. Hearings regarding a maltreatment determination under clause (4) and a disqualification under this clause in which the basis for a disqualification is serious or recurring maltreatment shall be consolidated into a single fair hearing. In such cases, the scope of review by the children, youth, and families judge shall include both the maltreatment determination and the disqualification. The failure to exercise the right to an administrative reconsideration shall not be a bar to a hearing under this section if federal law provides an individual the right to a hearing to dispute a finding of maltreatment; and new text end

new text begin (6) any person with an outstanding debt resulting from receipt of public assistance or the federal Food and Nutrition Act who is contesting a setoff claim by the commissioner of children, youth, and families or a county agency. The scope of the appeal is the validity of the claimant agency's intention to request a setoff of a refund under chapter 270A against the debt. new text end

new text begin (b) The hearing for an individual or facility under paragraph (a), clause (4) or (5), is the only administrative appeal to the final agency determination specifically, including a challenge to the accuracy and completeness of data under section 13.04. A hearing for an individual or facility under paragraph (a), clause (4) or (5), is only available when there is no district court action pending. If such action is filed in district court while an administrative review is pending that arises out of some or all of the events or circumstances on which the appeal is based, the administrative review must be suspended until the judicial actions are completed. If the district court proceedings are completed, dismissed, or overturned, the matter may be considered in an administrative hearing. new text end

new text begin (c) For purposes of this section, bargaining unit grievance procedures are not an administrative appeal. new text end

new text begin (d) The scope of hearings involving claims to foster care payments under paragraph (a), clause (2), shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision. new text end

new text begin (e) An applicant or recipient is not entitled to receive social services beyond the services prescribed under chapter 256M or other social services the person is eligible for under state law. new text end

new text begin (f) The commissioner may summarily affirm the county or state agency's proposed action without a hearing when the sole issue is an automatic change due to a change in state or federal law. new text end

new text begin (g) Unless federal or Minnesota law specifies a different time frame in which to file an appeal, an individual or organization specified in this section may contest the specified action, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause, as defined in section 142A.21, subdivision 13, why the request was not submitted within the 30-day time limit. The individual filing the appeal has the burden of proving good cause by a preponderance of the evidence. new text end

new text begin Subd. 3. new text end

new text begin Standard of evidence for maltreatment and disqualification hearings. new text end

new text begin (a) The state children, youth, and families judge shall determine that maltreatment has occurred if a preponderance of evidence exists to support the final disposition under chapter 260E or section 626.557. For purposes of hearings regarding disqualification, the state children, youth, and families judge shall affirm the proposed disqualification in an appeal under subdivision 2, paragraph (a), clause (5), if a preponderance of the evidence shows the individual has: new text end

new text begin (1) committed maltreatment under section 626.557 or chapter 260E that is serious or recurring; new text end

new text begin (2) committed an act or acts meeting the definition of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or new text end

new text begin (3) failed to make required reports under section 626.557 or chapter 260E, for incidents in which the final disposition under section 626.557 or chapter 260E was substantiated maltreatment that was serious or recurring. new text end

new text begin (b) If the disqualification is affirmed, the state children, youth, and families judge shall determine whether the individual poses a risk of harm in accordance with the requirements of section 245C.22, and whether the disqualification should be set aside or not set aside. In determining whether the disqualification should be set aside, the children, youth, and families judge shall consider all of the characteristics that cause the individual to be disqualified, including those characteristics that were not subject to review under paragraph (a), in order to determine whether the individual poses a risk of harm. A decision to set aside a disqualification that is the subject of the hearing constitutes a determination that the individual does not pose a risk of harm and that the individual may provide direct contact services in the individual program specified in the set aside. new text end

new text begin (c) If a disqualification is based solely on a conviction or is conclusive for any reason under section 245C.29, the disqualified individual does not have a right to a hearing under this section. new text end

new text begin (d) The state children, youth, and families judge shall recommend an order to the commissioner of health; education; children, youth, and families; or human services, as applicable, who shall issue a final order. The commissioner shall affirm, reverse, or modify the final disposition. Any order of the commissioner issued in accordance with this subdivision is conclusive upon the parties unless appeal is taken in the manner provided in subdivision 7. In any licensing appeal under chapters 142B and 245C and sections 144.50 to 144.58 and 144A.02 to 144A.482, the commissioner's determination as to maltreatment is conclusive, as provided under section 245C.29. new text end

new text begin Subd. 4. new text end

new text begin Conduct of hearings. new text end

new text begin (a) All hearings held pursuant to subdivision 2 or 3 shall be conducted according to the provisions of the federal Social Security Act and the regulations implemented in accordance with that act to enable this state to qualify for federal grants-in-aid and according to the rules and written policies of the commissioner. County agencies shall install equipment necessary to conduct telephone hearings. A state children, youth, and families judge may schedule a telephone conference hearing when the distance or time required to travel to the county agency offices will cause a delay in the issuance of an order, or to promote efficiency, or at the mutual request of the parties. Hearings may be conducted by telephone conferences unless the applicant, recipient, former recipient, person, or facility contesting maltreatment objects. A children, youth, and families judge may grant a request for a hearing in person by holding the hearing by interactive video technology or in person. The children, youth, and families judge must hear the case in person if the person asserts that either the person or a witness has a physical or mental disability that would impair the person's or witness's ability to fully participate in a hearing held by interactive video technology. The hearing shall not be held earlier than five days after filing of the required notice with the county or state agency. The state children, youth, and families judge shall notify all interested persons of the time, date, and location of the hearing at least five days before the date of the hearing. Interested persons may be represented by legal counsel or other representative of their choice, including a provider of therapy services, at the hearing and may appear personally, testify and offer evidence, and examine and cross-examine witnesses. The applicant, recipient, former recipient, person, or facility contesting maltreatment shall have the opportunity to examine the contents of the case file and all documents and records to be used by the county or state agency at the hearing at a reasonable time before the date of the hearing and during the hearing. In hearings under subdivision 2, paragraph (a), clauses (4) and (5), either party may subpoena the private data relating to the investigation prepared by the agency under section 626.557 or chapter 260E that are not otherwise accessible under section 13.04, provided the identity of the reporter may not be disclosed. new text end

new text begin (b) The private data obtained by subpoena in a hearing under subdivision 2, paragraph (a), clause (2), must be subject to a protective order that prohibits its disclosure for any other purpose outside the hearing provided for in this section without prior order of the district court. Disclosure without court order is punishable by a sentence of not more than 90 days imprisonment or a fine of not more than $1,000, or both. These restrictions on the use of private data do not prohibit access to the data under section 13.03, subdivision 6. Except for appeals under subdivision 2, paragraph (a), clause (2), upon request, the county agency shall provide reimbursement for transportation, child care, photocopying, medical assessment, witness fee, and other necessary and reasonable costs incurred by the applicant, recipient, or former recipient in connection with the appeal. All evidence, except that privileged by law, commonly accepted by reasonable people in the conduct of their affairs as having probative value with respect to the issues, shall be submitted at the hearing and the hearing shall not be "a contested case" within the meaning of section 14.02, subdivision 3. The agency must present its evidence prior to or at the hearing and may not submit evidence after the hearing except by agreement of the parties at the hearing, provided the petitioner has the opportunity to respond. new text end

new text begin (c) In hearings under subdivision 2, paragraph (a), clauses (2) and (5), involving determinations of maltreatment or disqualification made by more than one county agency, by a county agency and a state agency, or by more than one state agency, the hearings may be consolidated into a single fair hearing upon the consent of all parties and the state children, youth, and families judge. new text end

new text begin Subd. 5. new text end

new text begin Orders of the commissioner of children, youth, and families. new text end

new text begin (a) A state children, youth, and families judge shall conduct a hearing on the appeal and shall recommend an order to the commissioner of children, youth, and families. The recommended order must be based on all relevant evidence and must not be limited to a review of the propriety of the state or county agency's action. A children, youth, and families judge may take official notice of adjudicative facts. The commissioner of children, youth, and families may accept the recommended order of a state children, youth, and families judge and issue the order to the county agency and the applicant, recipient, or former recipient. If the commissioner refuses to accept the recommended order of the state children, youth, and families judge, the commissioner shall notify the petitioner or the agency of the commissioner's refusal and shall state reasons for the refusal. The commissioner shall allow each party ten days' time to submit additional written argument on the matter. After the expiration of the ten-day period, the commissioner shall issue an order on the matter to the petitioner and the agency. new text end

new text begin (b) A party aggrieved by an order of the commissioner may appeal under subdivision 7 or request reconsideration by the commissioner within 30 days after the date the commissioner issues the order. The commissioner may reconsider an order upon request of any party or on the commissioner's own motion. A request for reconsideration does not stay implementation of the commissioner's order. The person seeking reconsideration has the burden to demonstrate why the matter should be reconsidered. The request for reconsideration may include legal argument and proposed additional evidence supporting the request. If proposed additional evidence is submitted, the person must explain why the proposed additional evidence was not provided at the time of the hearing. If reconsideration is granted, the other participants must be sent a copy of all material submitted in support of the request for reconsideration and must be given ten days to respond. Upon reconsideration, the commissioner may issue an amended order or an order affirming the original order. new text end

new text begin (c) Any order of the commissioner issued under this subdivision shall be conclusive upon the parties unless appeal is taken in the manner provided by subdivision 7. Any order of the commissioner is binding on the parties and must be implemented by the state agency or a county agency until the order is reversed by the district court or unless the commissioner or a district court orders monthly assistance or aid or services paid or provided under subdivision 10. new text end

new text begin (d) A vendor under contract with a county agency to provide social services is not a party and may not request a hearing or seek judicial review of an order issued under this section, unless assisting a recipient as provided in subdivision 4. new text end

new text begin Subd. 6. new text end

new text begin Additional powers of commissioner; subpoenas. new text end

new text begin (a) The commissioner may initiate a review of any action or decision of a county agency and direct that the matter be presented to a state children, youth, and families judge for a hearing held under subdivision 2 or 3. In all matters dealing with children, youth, and families committed by law to the discretion of the county agency, the commissioner's judgment may be substituted for that of the county agency. The commissioner may order an independent examination when appropriate. new text end

new text begin (b) Any party to a hearing held pursuant to subdivision 2 or 3 may request that the commissioner issue a subpoena to compel the attendance of witnesses and the production of records at the hearing. A local agency may request that the commissioner issue a subpoena to compel the release of information from third parties prior to a request for a hearing under section 142A.21 upon a showing of relevance to such a proceeding. The issuance, service, and enforcement of subpoenas under this subdivision is governed by section 357.22 and the Minnesota Rules of Civil Procedure. new text end

new text begin (c) The commissioner may issue a temporary order staying a proposed demission by a residential facility licensed under chapter 142B: new text end

new text begin (1) while an appeal by a recipient under subdivision 3 is pending; or new text end

new text begin (2) for the period of time necessary for the case management provider to implement the commissioner's order. new text end

new text begin Subd. 7. new text end

new text begin Judicial review. new text end

new text begin Any party who is aggrieved by an order of the commissioner of children, youth, and families may appeal the order to the district court of the county responsible for furnishing assistance, or, in appeals under subdivision 3, the county where the maltreatment occurred, by serving a written copy of a notice of appeal upon the commissioner and any adverse party of record within 30 days after the date the commissioner issued the order, the amended order, or order affirming the original order, and by filing the original notice and proof of service with the court administrator of the district court. Service may be made personally or by mail; service by mail is complete upon mailing. The court administrator shall not require a filing fee in appeals taken pursuant to this subdivision, except for appeals taken under subdivision 3. The commissioner may elect to become a party to the proceedings in the district court. Except for appeals under subdivision 3, any party may demand that the commissioner furnish all parties to the proceedings with a copy of the decision, and a transcript of any testimony, evidence, or other supporting papers from the hearing held before the children, youth, and families judge, by serving a written demand upon the commissioner within 30 days after service of the notice of appeal. Any party aggrieved by the failure of an adverse party to obey an order issued by the commissioner under subdivision 5 may compel performance according to the order in the manner prescribed in sections 586.01 to 586.12. new text end

new text begin Subd. 8. new text end

new text begin Hearing. new text end

new text begin Any party may obtain a hearing at a special term of the district court by serving a written notice of the time and place of the hearing at least ten days prior to the date of the hearing. The court may consider the matter in or out of chambers, and shall take no new or additional evidence unless it determines that such evidence is necessary for a more equitable disposition of the appeal. new text end

new text begin Subd. 9. new text end

new text begin Appeal. new text end

new text begin Any party aggrieved by the order of the district court may appeal the order as in other civil cases. Except for appeals under subdivision 3, no costs or disbursements shall be taxed against any party nor shall any filing fee or bond be required of any party. new text end

new text begin Subd. 10. new text end

new text begin Payments pending appeal. new text end

new text begin If the commissioner of children, youth, and families or district court orders monthly assistance or aid or services paid or provided in any proceeding under this section, it shall be paid or provided pending appeal to the commissioner of children, youth, and families, district court, court of appeals, or supreme court. The state or county agency has a claim for Supplemental Nutrition Assistance Program (SNAP) benefits or cash payments made to or on behalf of a recipient or former recipient while an appeal is pending if the recipient or former recipient is determined ineligible for SNAP benefits or cash payments as a result of the appeal. new text end

new text begin Subd. 11. new text end

new text begin Interagency agreement with DHS. new text end

new text begin The commissioner of children, youth, and families may enter into an agreement with the commissioner of human services so that the commissioner of human services may conduct hearings and recommend and issue orders on behalf of the commissioner of children, youth, and families in accordance with this section. new text end

Sec. 39.

new text begin [142A.21] HEARING PROCEDURES. new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin (a) The requirements in this section apply to all fair hearings and appeals under section 142A.20, subdivision 2, paragraph (a), clauses (1), (2), (3), and (6). Except as provided in subdivisions 3 and 19, the requirements under this section apply to fair hearings and appeals under section 142A.20, subdivision 2, paragraph (a), clause (2). new text end

new text begin (b) For purposes of this section, "person" means an individual who, on behalf of themselves or their household, is appealing, disputing, or challenging an action, a decision, or a failure to act by an agency in the children, youth, and families system. When a person involved in a proceeding under this section is represented by an attorney or by an authorized representative, the term "person" also means the person's attorney or authorized representative. Any notice sent to the person involved in the hearing must also be sent to the person's attorney or authorized representative. new text end

new text begin (c) For purposes of this section, "agency" means the county human services agency, the Department of Children, Youth, and Families, and, where applicable, any entity involved under a contract, subcontract, grant, or subgrant with the state agency or with a county agency, that provides or operates programs or services in which appeals are governed by section 142A.20. new text end

new text begin Subd. 2. new text end

new text begin Access to files. new text end

new text begin A person involved in a fair hearing appeal has the right of access to the person's complete case files and to examine all private welfare data on the person that has been generated, collected, stored, or disseminated by the agency. A person involved in a fair hearing appeal has the right to a free copy of all documents in the case file involved in a fair hearing appeal. For purposes of this section, "case file" means the information, documents, and data, in whatever form, that have been generated, collected, stored, or disseminated by the agency in connection with the person and the program or service involved. new text end

new text begin Subd. 3. new text end

new text begin Agency appeal summary. new text end

new text begin (a) Except in fair hearings and appeals under section 142A.20, subdivision 2, paragraph (a), clauses (4) and (5), the agency involved in an appeal must prepare a state agency appeal summary for each fair hearing appeal. The state agency appeal summary shall be mailed or otherwise delivered to the person who is involved in the appeal at least three working days before the date of the hearing. The state agency appeal summary must also be mailed or otherwise delivered to the department's Appeals Office at least three working days before the date of the fair hearing appeal. new text end

new text begin (b) In addition, the children, youth, and families judge shall confirm that the state agency appeal summary is mailed or otherwise delivered to the person involved in the appeal as required under paragraph (a). The person involved in the fair hearing should be provided, through the state agency appeal summary or other reasonable methods, appropriate information about the procedures for the fair hearing and an adequate opportunity to prepare. These requirements apply equally to the state agency or an entity under contract when involved in the appeal. new text end

new text begin (c) The contents of the state agency appeal summary must be adequate to inform the person involved in the appeal of the evidence on which the agency relies and the legal basis for the agency's action or determination. new text end

new text begin Subd. 4. new text end

new text begin Enforcing access to files. new text end

new text begin A person involved in a fair hearing appeal may enforce the right of access to data and copies of the case file by making a request to the children, youth, and families judge. The children, youth, and families judge will make an appropriate order enforcing the person's rights under the Minnesota Government Data Practices Act, including but not limited to, ordering access to files, data, and documents; continuing a hearing to allow adequate time for access to data; or prohibiting use by the agency of files, data, or documents that have been generated, collected, stored, or disseminated without compliance with the Minnesota Government Data Practices Act and that have not been provided to the person involved in the appeal. new text end

new text begin Subd. 5. new text end

new text begin Prehearing conferences. new text end

new text begin (a) The children, youth, and families judge prior to a fair hearing appeal may hold a prehearing conference to further the interests of justice or efficiency and must include the person involved in the appeal. A person involved in a fair hearing appeal or the agency may request a prehearing conference. The prehearing conference may be conducted by telephone, in person, or in writing. The prehearing conference may address the following: new text end

new text begin (1) disputes regarding access to files, evidence, subpoenas, or testimony; new text end

new text begin (2) the time required for the hearing or any need for expedited procedures or decision; new text end

new text begin (3) identification or clarification of legal or other issues that may arise at the hearing; new text end

new text begin (4) identification of and possible agreement to factual issues; and new text end

new text begin (5) scheduling and any other matter that will aid in the proper and fair functioning of the hearing. new text end

new text begin (b) The children, youth, and families judge shall make a record or otherwise contemporaneously summarize the prehearing conference in writing, which shall be sent to both the person involved in the hearing, the person's attorney or authorized representative, and the agency. A children, youth, and families judge may make and issue rulings and orders while the appeal is pending. During the pendency of the appeal, these rulings and orders are not subject to a request for reconsideration or appeal. These rulings and orders are subject to review under subdivision 24 and section 142A.20, subdivision 7. new text end

new text begin Subd. 6. new text end

new text begin Appeal request for emergency assistance or urgent matter. new text end

new text begin (a) When an appeal involves an application for emergency assistance, the agency involved shall mail or otherwise deliver the state agency appeal summary to the department's Appeals Office within two working days of receiving the request for an appeal. A person may also request that a fair hearing be held on an emergency basis when the issue requires an immediate resolution. The children, youth, and families judge shall schedule the fair hearing on the earliest available date according to the urgency of the issue involved. Issuance of the recommended decision after an emergency hearing shall be expedited. new text end

new text begin (b) The commissioner shall issue a written decision within five working days of receiving the recommended decision, shall immediately inform the parties of the outcome by telephone, and shall mail the decision no later than two working days following the date of the decision. new text end

new text begin Subd. 7. new text end

new text begin Continuance, rescheduling, or adjourning a hearing. new text end

new text begin (a) A person involved in a fair hearing, or the agency, may request a continuance, a rescheduling, or an adjournment of a hearing for a reasonable period of time. The grounds for granting a request for a continuance, a rescheduling, or adjournment of a hearing include, but are not limited to, the following: new text end

new text begin (1) to reasonably accommodate the appearance of a witness; new text end

new text begin (2) to ensure that the person has adequate opportunity for preparation and for presentation of evidence and argument; new text end

new text begin (3) to ensure that the person or the agency has adequate opportunity to review, evaluate, and respond to new evidence, or where appropriate, to require that the person or agency review, evaluate, and respond to new evidence; new text end

new text begin (4) to permit the person involved and the agency to negotiate toward resolution of some or all of the issues where both agree that additional time is needed; new text end

new text begin (5) to permit the agency to reconsider a previous action or determination; new text end

new text begin (6) to permit or to require the performance of actions not previously taken; and new text end

new text begin (7) to provide additional time or to permit or require additional activity by the person or agency as the interests of fairness may require. new text end

new text begin (b) Requests for continuances or for rescheduling may be made orally or in writing. The person or agency requesting the continuance or rescheduling must first make reasonable efforts to contact the other participants in the hearing or their representatives and seek to obtain an agreement on the request. Requests for continuance or rescheduling should be made no later than three working days before the scheduled date of the hearing, unless there is a good cause as specified in subdivision 13. Granting a continuance or rescheduling may be conditioned upon a waiver by the requester of applicable time limits but should not cause unreasonable delay. new text end

new text begin Subd. 8. new text end

new text begin Subpoenas. new text end

new text begin (a) A person involved in a fair hearing or the agency may request a subpoena for a witness, for evidence, or for both. A reasonable number of subpoenas shall be issued to require the attendance and the testimony of witnesses, and the production of evidence relating to any issue of fact in the appeal hearing. The request for a subpoena must show a need for the subpoena and the general relevance to the issues involved. The subpoena shall be issued in the name of the department and shall be served and enforced as provided in section 357.22 and the Minnesota Rules of Civil Procedure. new text end

new text begin (b) An individual or entity served with a subpoena may petition the children, youth, and families judge in writing to vacate or modify a subpoena. The children, youth, and families judge shall resolve such a petition in a prehearing conference involving all parties and shall make a written decision. A subpoena may be vacated or modified if the children, youth, and families judge determines that the testimony or evidence sought does not relate with reasonable directness to the issues of the fair hearing appeal; that the subpoena is unreasonable, over broad, or oppressive; that the evidence sought is repetitious or cumulative; or that the subpoena has not been served reasonably in advance of the time when the appeal hearing will be held. new text end

new text begin Subd. 9. new text end

new text begin No ex parte contact. new text end

new text begin The children, youth, and families judge shall not have ex parte contact on substantive issues with the agency or with any person or witness in a fair hearing appeal. No employee of the department or agency shall review, interfere with, change, or attempt to influence the recommended decision of the children, youth, and families judge in any fair hearing appeal, except through the procedure allowed in subdivision 18. The limitations in this subdivision do not affect the commissioner's authority to review or reconsider decisions or make final decisions. new text end

new text begin Subd. 10. new text end

new text begin Telephone or face-to-face hearing. new text end

new text begin A fair hearing appeal may be conducted by telephone, by other electronic media, or by an in-person, face-to-face hearing. At the request of the person involved in a fair hearing appeal or their representative, a face-to-face hearing shall be conducted with all participants personally present before the children, youth, and families judge. new text end

new text begin Subd. 11. new text end

new text begin Hearing facilities and equipment. new text end

new text begin The children, youth, and families judge shall conduct the hearing in the county where the person involved resides, unless an alternate location is mutually agreed upon before the hearing, or unless the person has agreed to a hearing by telephone. Hearings under section 142A.20, subdivision 2, paragraph (a), clauses (4) and (5), must be conducted in the county where the determination was made, unless an alternate location is mutually agreed upon before the hearing. The hearing room shall be of sufficient size and layout to adequately accommodate both the number of individuals participating in the hearing and any identified special needs of any individual participating in the hearing. The children, youth, and families judge shall ensure that all communication and recording equipment that is necessary to conduct the hearing and to create an adequate record is present and functioning properly. If any necessary communication or recording equipment fails or ceases to operate effectively, the children, youth, and families judge shall take any steps necessary, including stopping or adjourning the hearing, until the necessary equipment is present and functioning properly. All reasonable efforts shall be undertaken to prevent and avoid any delay in the hearing process caused by defective communication or recording equipment. new text end

new text begin Subd. 12. new text end

new text begin Interpreter and translation services. new text end

new text begin The children, youth, and families judge has a duty to inquire and to determine whether any participant in the hearing needs the services of an interpreter or translator in order to participate in or to understand the hearing process. Necessary interpreter or translation services must be provided at no charge to the person involved in the hearing. If it appears that interpreter or translation services are needed but are not available for the scheduled hearing, the children, youth, and families judge shall continue or postpone the hearing until appropriate services can be provided. new text end

new text begin Subd. 13. new text end

new text begin Failure to appear; good cause. new text end

new text begin If a person involved in a fair hearing appeal fails to appear at the hearing, the children, youth, and families judge may dismiss the appeal. The children, youth, and families judge may reopen the appeal if within ten working days after the date of the dismissal the person files information in writing with the children, youth, and families judge to show good cause for not appearing. Good cause can be shown when there is: new text end

new text begin (1) a death or serious illness in the person's family; new text end

new text begin (2) a personal injury or illness that reasonably prevents the person from attending the hearing; new text end

new text begin (3) an emergency, crisis, or unforeseen event that reasonably prevents the person from attending the hearing; new text end

new text begin (4) an obligation or responsibility of the person that a reasonable person, in the conduct of one's affairs, could reasonably determine takes precedence over attending the hearing; new text end

new text begin (5) lack of or failure to receive timely notice of the hearing in the preferred language of the person involved in the hearing; and new text end

new text begin (6) excusable neglect, excusable inadvertence, excusable mistake, or other good cause as determined by the children, youth, and families judge. new text end

new text begin Subd. 14. new text end

new text begin Commencement of hearing. new text end

new text begin The children, youth, and families judge shall begin each hearing by describing the process to be followed in the hearing, including the swearing in of witnesses, how testimony and evidence are presented, the order of examining and cross-examining witnesses, and the opportunity for an opening statement and a closing statement. The children, youth, and families judge shall identify for the participants the issues to be addressed at the hearing and shall explain to the participants the burden of proof that applies to the person involved and the agency. The children, youth, and families judge shall confirm, prior to proceeding with the hearing, that the state agency appeal summary, if required under subdivision 3, has been properly completed and provided to the person involved in the hearing, and that the person has been provided documents and an opportunity to review the case file, as provided in this section. new text end

new text begin Subd. 15. new text end

new text begin Conduct of the hearing. new text end

new text begin The children, youth, and families judge shall act in a fair and impartial manner at all times. At the beginning of the hearing the agency must designate one person as their representative who shall be responsible for presenting the agency's evidence and questioning any witnesses. The children, youth, and families judge shall make sure that the person and the agency are provided sufficient time to present testimony and evidence, to confront and cross-examine all adverse witnesses, and to make any relevant statement at the hearing. The children, youth, and families judge shall make reasonable efforts to explain the hearing process to persons who are not represented and shall ensure that the hearing is conducted fairly and efficiently. Upon the reasonable request of the person or the agency involved, the children, youth, and families judge may direct witnesses to remain outside the hearing room, except during their individual testimony. The children, youth, and families judge shall not terminate the hearing before affording the person and the agency a complete opportunity to submit all admissible evidence and reasonable opportunity for oral or written statement. If a hearing lasts longer than anticipated, the hearing shall be rescheduled or continued from day-to-day until completion. Hearings that have been continued shall be timely scheduled to minimize delay in the disposition of the appeal. new text end

new text begin Subd. 16. new text end

new text begin Scope of issues addressed at the hearing. new text end

new text begin The hearing shall address the correctness and legality of the agency's action and shall not be limited simply to a review of the propriety of the agency's action. The person involved may raise and present evidence on all legal claims or defenses arising under state or federal law as a basis for appealing or disputing an agency action but not constitutional claims beyond the jurisdiction of the fair hearing. The children, youth, and families judge may take official notice of adjudicative facts. new text end

new text begin Subd. 17. new text end

new text begin Burden of persuasion. new text end

new text begin The burden of persuasion is governed by specific state or federal law and regulations that apply to the subject of the hearing. If there is no specific law, then the participant in the hearing who asserts the truth of a claim is under the burden to persuade the children, youth, and families judge that the claim is true. new text end

new text begin Subd. 18. new text end

new text begin Inviting comment by department. new text end

new text begin The children, youth, and families judge or the commissioner may determine that a written comment by the department about the policy implications of a specific legal issue could help resolve a pending appeal. Such a written policy comment from the department shall be obtained only by a written request that is also sent to the person involved and to the agency or its representative. When such a written comment is received, both the person involved in the hearing and the agency shall have adequate opportunity to review, evaluate, and respond to the written comment, including submission of additional testimony or evidence, and cross-examination concerning the written comment. new text end

new text begin Subd. 19. new text end

new text begin Developing the record. new text end

new text begin The children, youth, and families judge shall accept all evidence, except evidence privileged by law, that is commonly accepted by reasonable people in the conduct of their affairs as having probative value on the issues to be addressed at the hearing. Except in fair hearings and appeals under section 142A.20, subdivision 2, paragraph (a), clauses (4) and (5), in cases involving medical issues such as a diagnosis, a physician's report, or a review team's decision, the children, youth, and families judge shall consider whether it is necessary to have a medical assessment other than that of the individual making the original decision. When necessary, the children, youth, and families judge shall require an additional assessment be obtained at agency expense and made part of the hearing record. The children, youth, and families judge shall ensure for all cases that the record is sufficiently complete to make a fair and accurate decision. new text end

new text begin Subd. 20. new text end

new text begin Unrepresented persons. new text end

new text begin In cases involving unrepresented persons, the children, youth, and families judge shall take appropriate steps to identify and develop in the hearing relevant facts necessary for making an informed and fair decision. These steps may include, but are not limited to, asking questions of witnesses and referring the person to a legal services office. An unrepresented person shall be provided an adequate opportunity to respond to testimony or other evidence presented by the agency at the hearing. The children, youth, and families judge shall ensure that an unrepresented person has a full and reasonable opportunity at the hearing to establish a record for appeal. new text end

new text begin Subd. 21. new text end

new text begin Closing of the record. new text end

new text begin The agency must present its evidence prior to or at the hearing. The agency shall not be permitted to submit evidence after the hearing except by agreement at the hearing between the person involved, the agency, and the children, youth, and families judge. If evidence is submitted after the hearing, based on such an agreement, the person involved and the agency must be allowed sufficient opportunity to respond to the evidence. When necessary, the record shall remain open to permit a person to submit additional evidence on the issues presented at the hearing. new text end

new text begin Subd. 22. new text end

new text begin Decisions. new text end

new text begin (a) A timely, written decision must be issued in every appeal. Each decision must contain a clear ruling on the issues presented in the appeal hearing and should contain a ruling only on questions directly presented by the appeal and the arguments raised in the appeal. new text end

new text begin (b) A written decision must be issued within 90 days of the date the person involved requested the appeal unless a shorter time is required by law. An additional 30 days is provided in those cases where the commissioner refuses to accept the recommended decision. In appeals of maltreatment determinations or disqualifications filed pursuant to section 142A.20, subdivision 2, paragraph (a), clause (4) or (5), that also give rise to possible licensing actions, the 90-day period for issuing final decisions does not begin until the later of the date that the licensing authority provides notice to the appeals division that the authority has made the final determination in the matter or the date the appellant files the last appeal in the consolidated matters. new text end

new text begin (c) The decision must contain both findings of fact and conclusions of law, clearly separated and identified. The findings of fact must be based on the entire record. Each finding of fact made by the children, youth, and families judge shall be supported by a preponderance of the evidence unless a different standard is required under the regulations of a particular program. The "preponderance of the evidence" means, in light of the record as a whole, the evidence leads the children, youth, and families judge to believe that the finding of fact is more likely to be true than not true. The legal claims or arguments of a participant do not constitute either a finding of fact or a conclusion of law, except to the extent the children, youth, and families judge adopts an argument as a finding of fact or conclusion of law. new text end

new text begin (d) The decision shall contain at least the following: new text end

new text begin (1) a listing of the date and place of the hearing and the participants at the hearing; new text end

new text begin (2) a clear and precise statement of the issues, including the dispute under consideration and the specific points that must be resolved in order to decide the case; new text end

new text begin (3) a listing of the material, including exhibits, records, reports, placed into evidence at the hearing, and upon which the hearing decision is based; new text end

new text begin (4) the findings of fact based upon the entire hearing record. The findings of fact must be adequate to inform the participants and any interested person in the public of the basis of the decision. If the evidence is in conflict on an issue that must be resolved, the findings of fact must state the reasoning used in resolving the conflict; new text end

new text begin (5) conclusions of law that address the legal authority for the hearing and the ruling and give appropriate attention to the claims of the participants to the hearing; new text end

new text begin (6) a clear and precise statement of the decision made resolving the dispute under consideration in the hearing; and new text end

new text begin (7) written notice of the right to appeal to district court or to request reconsideration, and of the actions required and the time limits for taking appropriate action to appeal to district court or to request a reconsideration. new text end

new text begin (e) The children, youth, and families judge shall not independently investigate facts or otherwise rely on information not presented at the hearing. The children, youth, and families judge may not contact other agency personnel, except as provided in subdivision 18. The children, youth, and families judge's recommended decision must be based exclusively on the testimony and evidence presented at the hearing, and legal arguments presented, and the children, youth, and families judge's research and knowledge of the law. new text end

new text begin (f) The commissioner will review the recommended decision and accept or refuse to accept the decision according to section 142A.20, subdivision 5. new text end

new text begin Subd. 23. new text end

new text begin Refusal to accept recommended orders. new text end

new text begin (a) If the commissioner refuses to accept the recommended order from the children, youth, and families judge, the person involved, the person's attorney or authorized representative, and the agency shall be sent a copy of the recommended order, a detailed explanation of the basis for refusing to accept the recommended order, and the proposed modified order. new text end

new text begin (b) The person involved and the agency shall have at least ten business days to respond to the proposed modification of the recommended order. The person involved and the agency may submit a legal argument concerning the proposed modification, and may propose to submit additional evidence that relates to the proposed modified order. new text end

new text begin Subd. 24. new text end

new text begin Reconsideration. new text end

new text begin (a) Reconsideration may be requested within 30 days of the date of the commissioner's final order. If reconsideration is requested under section 142A.20, subdivision 5, the other participants in the appeal shall be informed of the request. The person seeking reconsideration has the burden to demonstrate why the matter should be reconsidered. The request for reconsideration may include legal argument and may include proposed additional evidence supporting the request. The other participants shall be sent a copy of all material submitted in support of the request for reconsideration and must be given ten days to respond. new text end

new text begin (b) When the requesting party raises a question as to the appropriateness of the findings of fact, the commissioner shall review the entire record. new text end

new text begin (c) When the requesting party questions the appropriateness of a conclusion of law, the commissioner shall consider the recommended decision, the decision under reconsideration, and the material submitted in connection with the reconsideration. The commissioner shall review the remaining record as necessary to issue a reconsidered decision. new text end

new text begin (d) The commissioner shall issue a written decision on reconsideration in a timely fashion. The decision must clearly inform the parties that this constitutes the final administrative decision, advise the participants of the right to seek judicial review, and the deadline for doing so. new text end

new text begin Subd. 25. new text end

new text begin Access to appeal decisions. new text end

new text begin Appeal decisions must be maintained in a manner so that the public has ready access to previous decisions on particular topics, subject to appropriate procedures for safeguarding names, personal identifying information, and other private data on the individual persons involved in the appeal. new text end

Sec. 40.

new text begin [142A.22] OVERPAYMENTS BECOME JUDGMENTS BY OPERATION OF LAW. new text end

new text begin Subdivision 1. new text end

new text begin Qualifying overpayment. new text end

new text begin Any overpayment for assistance granted under chapters 142E and 142G and the Supplemental Nutrition Assistance Program (SNAP), except agency error claims, become a judgment by operation of law 90 days after the notice of overpayment is personally served upon the recipient in a manner that is sufficient under rule 4.03(a) of the Rules of Civil Procedure for district courts, or by certified mail, return receipt requested. This judgment shall be entitled to full faith and credit in this and any other state. new text end

new text begin Subd. 2. new text end

new text begin Overpayments included. new text end

new text begin This section is limited to overpayments for which notification is issued within the time period specified under section 541.05. new text end

new text begin Subd. 3. new text end

new text begin Notification requirements. new text end

new text begin A judgment is only obtained after: new text end

new text begin (1) a notice of overpayment has been personally served on the recipient or former recipient in a manner sufficient under rule 4.03(a) of the Rules of Civil Procedure for district courts, or mailed to the recipient or former recipient certified mail return receipt requested; and new text end

new text begin (2) the time period under section 142A.20, subdivision 3, has elapsed without a request for a hearing, or a hearing decision has been rendered under section 142A.20 or 142A.27 that concludes the existence of an overpayment that meets the requirements of this section. new text end

new text begin Subd. 4. new text end

new text begin Notice of overpayment. new text end

new text begin The notice of overpayment shall include the amount and cause of the overpayment, appeal rights, and an explanation of the consequences of the judgment that will be established if an appeal is not filed timely or if the administrative hearing decision establishes that there is an overpayment that qualifies for judgment. new text end

new text begin Subd. 5. new text end

new text begin Judgments entered and docketed. new text end

new text begin A judgment shall be entered and docketed under section 548.09 only after at least three months have elapsed since: new text end

new text begin (1) the notice of overpayment was served on the recipient pursuant to subdivision 3; and new text end

new text begin (2) the last time a monthly recoupment was applied to the overpayment. new text end

new text begin Subd. 6. new text end

new text begin Docketing of overpayments. new text end

new text begin On or after the date an unpaid overpayment becomes a judgment by operation of law under subdivision 1, the agency or public authority may file with the court administrator: new text end

new text begin (1) a statement identifying, or a copy of, the overpayment notice that provides for an appeal process and requires payment of the overpayment; new text end

new text begin (2) proof of service of the notice of overpayment; new text end

new text begin (3) an affidavit of default, stating the full name, occupation, place of residence, and last known post office address of the debtor; the name and post office address of the agency or public authority; the date or dates the overpayment was incurred; the program that was overpaid; and the total amount of the judgment; and new text end

new text begin (4) an affidavit of service of a notice of entry of judgment shall be made by first class mail at the address where the debtor was served with the notice of overpayment. Service is completed upon mailing in the manner designated. new text end

new text begin Subd. 7. new text end

new text begin Administrative renewal of overpayment judgments. new text end

new text begin Overpayment judgments may be renewed by service of notice upon the debtor. Service must be by first class mail at the last known address of the debtor, with service deemed complete upon mailing in that manner designated, or in the manner provided for the service of civil process. Upon filing of the notice and proof of service, the court administrator shall administratively renew the judgment for the overpayment without any additional filing fee in the same court file as the original overpayment judgment. The judgment must be renewed in an amount equal to the unpaid principal plus the accrued unpaid interest. Overpayment judgments may be renewed multiple times until satisfied. new text end

new text begin Subd. 8. new text end

new text begin Does not impede other methods. new text end

new text begin Nothing in this section shall be construed to impede or restrict alternative recovery methods for these overpayments or overpayments that do not meet the requirements of this section. new text end

Sec. 41.

new text begin [142A.25] WRONGFULLY OBTAINING ASSISTANCE; DISQUALIFICATION. new text end

new text begin Section 256.98 applies to: new text end

new text begin (1) all applicants for and recipients of benefits administered by the commissioner; and new text end

new text begin (2) child care providers receiving child care assistance under chapter 142E. new text end

Sec. 42.

new text begin [142A.26] FRAUD PREVENTION PROGRAM. new text end

new text begin (a) The commissioner of children, youth, and families shall work with the commissioner of human services to oversee and administer the fraud prevention program in sections 256.981 to 256.9861. new text end

new text begin (b) All recipients of benefits administered by the commissioner of children, youth, and families are subject to the requirements of sections 256.981 to 256.9861 and 256.9866. new text end

Sec. 43.

new text begin [142A.27] ADMINISTRATIVE FRAUD DISQUALIFICATION HEARINGS. new text end

new text begin Subdivision 1. new text end

new text begin Hearing authority. new text end

new text begin A local agency must initiate an administrative fraud disqualification hearing for individuals 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, and the Supplemental Nutrition Assistance Program (SNAP). The Department of Children, Youth, and Families, 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 sections 142A.20 and 142A.21 and the requirements in Code of Federal Regulations, title 7, section 273.16. new text end

new text begin Subd. 2. new text end

new text begin Combined hearing. new text end

new text begin The children, youth, and families judge may combine a fair hearing under section 142A.20 and administrative fraud disqualification hearing under this section into a single hearing if the factual issues arise out of the same, or related, circumstances and the individual receives prior notice that the hearings will be combined. If the administrative fraud disqualification hearing and fair hearing are combined, the time frames for administrative fraud disqualification hearings specified in Code of Federal Regulations, title 7, section 273.16, apply. If the individual accused of wrongfully obtaining assistance is charged under section 142A.25 or 256.98 for the same act or acts that are the subject of the hearing, the individual may request that the hearing be delayed until the criminal charge is decided by the court or withdrawn. new text end

new text begin (b) A human services judge may combine a fair hearing and administrative fraud disqualification hearing pursuant to section 142A.27, subdivision 2, or 256.046, subdivision 2, if either is under the jurisdiction of the commissioner of human services or the commissioner of children, youth, and families. new text end

Sec. 44.

new text begin [142A.28] RECOVERY OF MONEY; APPORTIONMENT. new text end

new text begin Subdivision 1. new text end

new text begin Retention rates. new text end

new text begin (a) When an assistance recovery amount is collected and posted by a county agency under the provisions governing public assistance programs, the county may keep one-half of the recovery made by the county agency using any method other than recoupment. new text end

new text begin (b) This section does not apply to recoveries by the attorney general's office or child support collections. In the Supplemental Nutrition Assistance Program (SNAP), the nonfederal share of recoveries in the federal tax offset program only will be divided equally between the state agency and the involved county agency. new text end

new text begin Subd. 2. new text end

new text begin Retention rates for AFDC and MFIP. new text end

new text begin (a) When an assistance recovery amount is collected and posted by a county agency under the provisions governing the aid to families with dependent children program formerly codified in 1996 in sections 256.72 to 256.87 or MFIP under chapter 142G, the commissioner shall reimburse the county agency from the proceeds of the recovery using the applicable rate specified in paragraph (b) or (c). new text end

new text begin (b) For recoveries of overpayments made on or before September 30, 1996, from the aid to families with dependent children program including the emergency assistance program, the commissioner shall reimburse the county agency at a rate of one-quarter of the recovery made by any method other than recoupment. new text end

new text begin (c) For recoveries of overpayments made after September 30, 1996, from the aid to families with dependent children including the emergency assistance program and programs funded in whole or in part by the temporary assistance to needy families program under section 142G.03, subdivision 2, and recoveries of nonfederally funded food assistance under section 142G.11, the commissioner shall reimburse the county agency at a rate of one-quarter of the recovery made by any method other than recoupment. new text end

Sec. 45.

Minnesota Statutes 2022, section 245.814, subdivision 5, is amended to read:

Subd. 5.

Foster care parent liability insurance.

The commissionernew text begin of children, youth, and familiesnew text end may use federal reimbursement money earned on an expenditure for foster care parent liability insurance premiums to offset the costs of the premiums.new text begin The commissioner of children, youth, and families and human services will work with the insurance provider to transition coverage and responsibility as appropriate while avoiding a lapse in coverage.new text end

Sec. 46.

Minnesota Statutes 2022, section 256.01, subdivision 1, is amended to read:

Subdivision 1.

Powers transferred.

All the powers and duties now vested in or imposed upon the State Board of Control by the laws of this state or by any law of the United States are hereby transferred to, vested in, and imposed upon the commissioner of human services, except the powers and duties otherwise specifically transferred by Laws 1939, chapter 431, to other agencies. The commissioner of human services is hereby constituted the "state agency" as defined by the Social Security Act of the United States and the laws of this statenew text begin , except for the purposes of Title IV of the Social Security Actnew text end .

Sec. 47.

Minnesota Statutes 2022, section 256.01, subdivision 2, is amended to read:

Subd. 2.

Specific powers.

Subject to the provisions of section 241.021, subdivision 2, the commissioner of human services shall carry out the specific duties in paragraphs (a) through (bb):

(a) Administer and supervise deleted text begin alldeleted text end new text begin thenew text end forms of public assistance provided for by state law and other welfare activities or services deleted text begin asdeleted text end new text begin thatnew text end are vested in the commissioner. Administration and supervision of human services activities or services includes, but is not limited to, assuring timely and accurate distribution of benefits, completeness of service, and quality program management. In addition to administering and supervising human services activities vested by law in the department, the commissioner shall have the authority to:

(1) require county agency participation in training and technical assistance programs to promote compliance with statutes, rules, federal laws, regulations, and policies governing human services;

(2) monitor, on an ongoing basis, the performance of county agencies in the operation and administration of human services, enforce compliance with statutes, rules, federal laws, regulations, and policies governing welfare services and promote excellence of administration and program operation;

(3) develop a quality control program or other monitoring program to review county performance and accuracy of benefit determinations;

(4) require county agencies to make an adjustment to the public assistance benefits issued to any individual consistent with federal law and regulation and state law and rule and to issue or recover benefits as appropriate;

(5) delay or deny payment of all or part of the state and federal share of benefits and administrative reimbursement according to the procedures set forth in section 256.017;

(6) make contracts with and grants to public and private agencies and organizations, both profit and nonprofit, and individuals, using appropriated funds; and

(7) enter into contractual agreements with federally recognized Indian Tribes with a reservation in Minnesota to the extent necessary for the Tribe to operate a federally approved family assistance program or any other program under the supervision of the commissioner. The commissioner shall consult with the affected county or counties in the contractual agreement negotiations, if the county or counties wish to be included, in order to avoid the duplication of county and Tribal assistance program services. The commissioner may establish necessary accounts for the purposes of receiving and disbursing funds as necessary for the operation of the programs.

new text begin The commissioner shall work in conjunction with the commissioner of children, youth, and families to carry out the duties of this paragraph when necessary and feasible. new text end

(b) Inform county agencies, on a timely basis, of changes in statute, rule, federal law, regulation, and policy necessary to county agency administration of the programs.

deleted text begin (c) Administer and supervise all child welfare activities; promote the enforcement of laws protecting children with a disability and children who are dependent, neglected, or delinquent, and children born to mothers who were not married to the children's fathers at the times of the conception nor at the births of the children; license and supervise child-caring and child-placing agencies and institutions; supervise the care of children in boarding and foster homes or in private institutions; and generally perform all functions relating to the field of child welfare now vested in the State Board of Control. deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end Administer and supervise all noninstitutional service to persons with disabilities, including persons who have vision impairments, and persons who are deaf, deafblind, and hard-of-hearing or with other disabilities. The commissioner may provide and contract for the care and treatment of qualified indigent children in facilities other than those located and available at state hospitals when it is not feasible to provide the service in state hospitals.

deleted text begin (e)deleted text end new text begin (d)new text end Assist and actively cooperate with other departments, agencies and institutions, local, state, and federal, by performing services in conformity with the purposes of Laws 1939, chapter 431.

deleted text begin (f)deleted text end new text begin (e)new text end Act as the agent of and cooperate with the federal government in matters of mutual concern relative to and in conformity with the provisions of Laws 1939, chapter 431, including the administration of any federal funds granted to the state to aid in the performance of any functions of the commissioner as specified in Laws 1939, chapter 431, and including the promulgation of rules making uniformly available medical care benefits to all recipients of public assistance, at such times as the federal government increases its participation in assistance expenditures for medical care to recipients of public assistance, the cost thereof to be borne in the same proportion as are grants of aid to said recipients.

deleted text begin (g)deleted text end new text begin (f)new text end Establish and maintain any administrative units reasonably necessary for the performance of administrative functions common to all divisions of the department.

deleted text begin (h)deleted text end new text begin (g)new text end Act as designated guardian of both the estate and the person of all the wards of the state of Minnesota, whether by operation of law or by an order of court, without any further act or proceeding whatever, except as to persons committed as developmentally disabled. deleted text begin For children under the guardianship of the commissioner or a Tribe in Minnesota recognized by the Secretary of the Interior whose interests would be best served by adoptive placement, the commissioner may contract with a licensed child-placing agency or a Minnesota Tribal social services agency to provide adoption services. A contract with a licensed child-placing agency must be designed to supplement existing county efforts and may not replace existing county programs or Tribal social services, unless the replacement is agreed to by the county board and the appropriate exclusive bargaining representative, Tribal governing body, or the commissioner has evidence that child placements of the county continue to be substantially below that of other counties. Funds encumbered and obligated under an agreement for a specific child shall remain available until the terms of the agreement are fulfilled or the agreement is terminated.deleted text end

deleted text begin (i)deleted text end new text begin (h)new text end Act as coordinating referral and informational center on requests for service for newly arrived immigrants coming to Minnesota.

deleted text begin (j)deleted text end new text begin (i)new text end The specific enumeration of powers and duties as hereinabove set forth shall in no way be construed to be a limitation upon the general transfer of powers herein contained.

deleted text begin (k)deleted text end new text begin (j)new text end Establish county, regional, or statewide schedules of maximum fees and charges which may be paid by county agencies for medical, dental, surgical, hospital, nursing and nursing home care and medicine and medical supplies under all programs of medical care provided by the state and for congregate living care under the income maintenance programs.

deleted text begin (l)deleted text end new text begin (k)new text end Have the authority to conduct and administer experimental projects to test methods and procedures of administering assistance and services to recipients or potential recipients of public welfare. To carry out such experimental projects, it is further provided that the commissioner of human services is authorized to waive the enforcement of existing specific statutory program requirements, rules, and standards in one or more counties. The order establishing the waiver shall provide alternative methods and procedures of administration, shall not be in conflict with the basic purposes, coverage, or benefits provided by law, and in no event shall the duration of a project exceed four years. It is further provided that no order establishing an experimental project as authorized by the provisions of this section shall become effective until the following conditions have been met:

(1) the deleted text begin secretary of health and human services of thedeleted text end United States new text begin Secretary of Health and Human Services new text end has agreed, for the same project, to waive state plan requirements relative to statewide uniformity; and

(2) a comprehensive plan, including estimated project costs, shall be approved by the Legislative Advisory Commission and filed with the commissioner of administration.

deleted text begin (m)deleted text end new text begin (l)new text end According to federal requirementsnew text begin and in coordination with the commissioner of children, youth, and familiesnew text end , establish procedures to be followed by local welfare boards in creating citizen advisory committees, including procedures for selection of committee members.

deleted text begin (n)deleted text end new text begin (m)new text end Allocate federal fiscal disallowances or sanctions which are based on quality control error rates for deleted text begin the aid to families with dependent children program formerly codified in sections 256.72 to 256.87,deleted text end medical assistancedeleted text begin , or the Supplemental Nutrition Assistance Program (SNAP)deleted text end in the following manner:

(1) one-half of the total amount of the disallowance shall be borne by the county boards responsible for administering the programs. deleted text begin For the medical assistance and the AFDC program formerly codified in sections 256.72 to 256.87,deleted text end Disallowances shall be shared by each county board in the same proportion as that county's expenditures for the sanctioned program are to the total of all counties' expenditures for deleted text begin the AFDC program formerly codified in sections 256.72 to 256.87, anddeleted text end medical assistance deleted text begin programsdeleted text end . deleted text begin For SNAP, sanctions shall be shared by each county board, with 50 percent of the sanction being distributed to each county in the same proportion as that county's administrative costs for SNAP benefits are to the total of all SNAP administrative costs for all counties, and 50 percent of the sanctions being distributed to each county in the same proportion as that county's value of SNAP benefits issued are to the total of all benefits issued for all counties.deleted text end Each county shall pay its share of the disallowance to the state of Minnesota. When a county fails to pay the amount due hereunder, the commissioner may deduct the amount from reimbursement otherwise due the county, or the attorney general, upon the request of the commissioner, may institute civil action to recover the amount due; and

(2) notwithstanding the provisions of clause (1), if the disallowance results from knowing noncompliance by one or more counties with a specific program instruction, and that knowing noncompliance is a matter of official county board record, the commissioner may require payment or recover from the county or counties, in the manner prescribed in clause (1), an amount equal to the portion of the total disallowance which resulted from the noncompliance, and may distribute the balance of the disallowance according to clause (1).

deleted text begin (o)deleted text end new text begin (n)new text end Develop and implement special projects that maximize reimbursements and result in the recovery of money to the state. For the purpose of recovering state money, the commissioner may enter into contracts with third parties. Any recoveries that result from projects or contracts entered into under this paragraph shall be deposited in the state treasury and credited to a special account until the balance in the account reaches $1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be transferred and credited to the general fund. All money in the account is appropriated to the commissioner for the purposes of this paragraph.

deleted text begin (p)deleted text end new text begin (o)new text end Have the authority to establish and enforce the following county reporting requirements:

(1) the commissioner shall establish fiscal and statistical reporting requirements necessary to account for the expenditure of funds allocated to counties for human services programs. When establishing financial and statistical reporting requirements, the commissioner shall evaluate all reports, in consultation with the counties, to determine if the reports can be simplified or the number of reports can be reduced;

(2) the county board shall submit monthly or quarterly reports to the department as required by the commissioner. Monthly reports are due no later than 15 working days after the end of the month. Quarterly reports are due no later than 30 calendar days after the end of the quarter, unless the commissioner determines that the deadline must be shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines or risking a loss of federal funding. Only reports that are complete, legible, and in the required format shall be accepted by the commissioner;

(3) if the required reports are not received by the deadlines established in clause (2), the commissioner may delay payments and withhold funds from the county board until the next reporting period. When the report is needed to account for the use of federal funds and the late report results in a reduction in federal funding, the commissioner shall withhold from the county boards with late reports an amount equal to the reduction in federal funding until full federal funding is received;

(4) a county board that submits reports that are late, illegible, incomplete, or not in the required format for two out of three consecutive reporting periods is considered noncompliant. When a county board is found to be noncompliant, the commissioner shall notify the county board of the reason the county board is considered noncompliant and request that the county board develop a corrective action plan stating how the county board plans to correct the problem. The corrective action plan must be submitted to the commissioner within 45 days after the date the county board received notice of noncompliance;

(5) the final deadline for fiscal reports or amendments to fiscal reports is one year after the date the report was originally due. If the commissioner does not receive a report by the final deadline, the county board forfeits the funding associated with the report for that reporting period and the county board must repay any funds associated with the report received for that reporting period;

(6) the commissioner may not delay payments, withhold funds, or require repayment under clause (3) or (5) if the county demonstrates that the commissioner failed to provide appropriate forms, guidelines, and technical assistance to enable the county to comply with the requirements. If the county board disagrees with an action taken by the commissioner under clause (3) or (5), the county board may appeal the action according to sections 14.57 to 14.69; and

(7) counties subject to withholding of funds under clause (3) or forfeiture or repayment of funds under clause (5) shall not reduce or withhold benefits or services to clients to cover costs incurred due to actions taken by the commissioner under clause (3) or (5).

deleted text begin (q)deleted text end new text begin (p)new text end Allocate federal fiscal disallowances or sanctions for audit exceptions when federal fiscal disallowances or sanctions are based on a statewide random sample in direct proportion to each county's claim for that period.

deleted text begin (r)deleted text end new text begin (q)new text end Be responsible for ensuring the detection, prevention, investigation, and resolution of fraudulent activities or behavior by applicants, recipients, and other participants in the human services programs administered by the department.

deleted text begin (s)deleted text end new text begin (r)new text end Require county agencies to identify overpayments, establish claims, and utilize all available and cost-beneficial methodologies to collect and recover these overpayments in the human services programs administered by the department.

deleted text begin (t)deleted text end new text begin (s)new text end Have the authority to administer the federal drug rebate program for drugs purchased under the medical assistance program as allowed by section 1927 of title XIX of the Social Security Act and according to the terms and conditions of section 1927. Rebates shall be collected for all drugs that have been dispensed or administered in an outpatient setting and that are from manufacturers who have signed a rebate agreement with the United States Department of Health and Human Services.

deleted text begin (u)deleted text end new text begin (t)new text end Have the authority to administer a supplemental drug rebate program for drugs purchased under the medical assistance program. The commissioner may enter into supplemental rebate contracts with pharmaceutical manufacturers and may require prior authorization for drugs that are from manufacturers that have not signed a supplemental rebate contract. Prior authorization of drugs shall be subject to the provisions of section 256B.0625, subdivision 13.

deleted text begin (v)deleted text end new text begin (u)new text end Operate the department's communication systems account established in Laws 1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to manage shared communication costs necessary for the operation of the programs the commissioner supervises. A communications account may also be established for each regional treatment center which operates communications systems. Each account must be used to manage shared communication costs necessary for the operations of the programs the commissioner supervises. The commissioner may distribute the costs of operating and maintaining communication systems to participants in a manner that reflects actual usage. Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and other costs as determined by the commissioner. Nonprofit organizations and state, county, and local government agencies involved in the operation of programs the commissioner supervises may participate in the use of the department's communications technology and share in the cost of operation. The commissioner may accept on behalf of the state any gift, bequest, devise or personal property of any kind, or money tendered to the state for any lawful purpose pertaining to the communication activities of the department. Any money received for this purpose must be deposited in the department's communication systems accounts. Money collected by the commissioner for the use of communication systems must be deposited in the state communication systems account and is appropriated to the commissioner for purposes of this section.

deleted text begin (w)deleted text end new text begin (v)new text end Receive any federal matching money that is made available through the medical assistance program for the consumer satisfaction survey. Any federal money received for the survey is appropriated to the commissioner for this purpose. The commissioner may expend the federal money received for the consumer satisfaction survey in either year of the biennium.

deleted text begin (x)deleted text end new text begin (w)new text end Designate community information and referral call centers and incorporate cost reimbursement claims from the designated community information and referral call centers into the federal cost reimbursement claiming processes of the department according to federal law, rule, and regulations. Existing information and referral centers provided by Greater Twin Cities United Way or existing call centers for which Greater Twin Cities United Way has legal authority to represent, shall be included in these designations upon review by the commissioner and assurance that these services are accredited and in compliance with national standards. Any reimbursement is appropriated to the commissioner and all designated information and referral centers shall receive payments according to normal department schedules established by the commissioner upon final approval of allocation methodologies from the United States Department of Health and Human Services Division of Cost Allocation or other appropriate authorities.

deleted text begin (y)deleted text end new text begin (x)new text end Develop recommended standards for new text begin adult new text end foster care homes that address the components of specialized therapeutic services to be provided by new text begin adult new text end foster care homes with those services.

deleted text begin (z)deleted text end new text begin (y)new text end Authorize the method of payment to or from the department as part of the human services programs administered by the department. This authorization includes the receipt or disbursement of funds held by the department in a fiduciary capacity as part of the human services programs administered by the department.

deleted text begin (aa)deleted text end new text begin (z)new text end Designate the agencies that operate the Senior LinkAge Line under section 256.975, subdivision 7, and the Disability Hub under subdivision 24 as the state of Minnesota Aging and Disability Resource Center under United States Code, title 42, section 3001, the Older Americans Act Amendments of 2006, and incorporate cost reimbursement claims from the designated centers into the federal cost reimbursement claiming processes of the department according to federal law, rule, and regulations. Any reimbursement must be appropriated to the commissioner and treated consistent with section 256.011. All Aging and Disability Resource Center designated agencies shall receive payments of grant funding that supports the activity and generates the federal financial participation according to Board on Aging administrative granting mechanisms.

Sec. 48.

Minnesota Statutes 2022, section 256.01, subdivision 4, is amended to read:

Subd. 4.

Duties as state agency.

(a) The state agency shall:

deleted text begin (1) supervise the administration of assistance to dependent children under Laws 1937, chapter 438, by the county agencies in an integrated program with other service for dependent children maintained under the direction of the state agency; deleted text end

deleted text begin (2) establish adequate standards for personnel employed by the counties and the state agency in the administration of Laws 1937, chapter 438, and make the necessary rules to maintain such standards; deleted text end

deleted text begin (3)deleted text end new text begin (1) in coordination with the commissioner of children, youth, and families,new text end prescribe the form of and print and supply to the county agencies blanks for applications, reports, affidavits, and such other forms as it may deem necessary and advisable;

deleted text begin (4) cooperate with the federal government and its public welfare agencies in any reasonable manner as may be necessary to qualify for federal aid for temporary assistance for needy families and in conformity with title I of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 and successor amendments, including the making of such reports and such forms and containing such information as the Federal Social Security Board may from time to time require, and comply with such provisions as such board may from time to time find necessary to assure the correctness and verification of such reports; deleted text end

deleted text begin (5)deleted text end new text begin (2)new text end on or before October 1 in each even-numbered year make a biennial report to the governor concerning the activities of the agency;

deleted text begin (6)deleted text end new text begin (3)new text end enter into agreements with other departments of the state as necessary to meet all requirements of the federal government;new text begin andnew text end

deleted text begin (7) cooperate with the commissioner of education to enforce the requirements for program integrity and fraud prevention for investigation for child care assistance under chapter 119B; and deleted text end

deleted text begin (8)deleted text end new text begin (4)new text end require that the county or Tribal case manager for any person who is notified that their services will be terminated under section 245D.10, subdivision 3a, from residential supports and services as defined in section 245D.03, subdivision 1, paragraph (c), clause (3), develop an initial action plan within five business days of being notified of the termination; request technical assistance from the state agency; and proceed to promptly work to resolve the issues that led to the termination or arrange for alternative services as expeditiously as possible within the 60-day notice period.

(b) The state agency may:

(1) subpoena witnesses and administer oaths, make rules, and take such action as may be necessary or desirable for carrying out the provisions of Laws 1937, chapter 438. All rules made by the state agency shall be binding on the counties and shall be complied with by the respective county agencies;new text begin andnew text end

deleted text begin (2) cooperate with other state agencies in establishing reciprocal agreements in instances where a child receiving Minnesota family investment program assistance moves or contemplates moving into or out of the state, in order that the child may continue to receive supervised aid from the state moved from until the child has resided for one year in the state moved to; and deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end administer oaths and affirmations, take depositions, certify to official acts, and issue subpoenas to compel the attendance of individuals and the production of documents and other personal property necessary in connection with the administration of programs administered by, or for the purpose of any investigation, hearing, proceeding, or inquiry related to the duties and responsibilities of, the Department of Human Services.

(c) The fees for service of a subpoena in paragraph (b), clause deleted text begin (3)deleted text end new text begin (2)new text end , must be paid in the same manner as prescribed by law for a service of process issued by a district court. Witnesses must receive the same fees and mileage as in civil actions.

(d) The subpoena in paragraph (b), clause deleted text begin (3)deleted text end new text begin (2)new text end , shall be enforceable through the district court in the district where the subpoena is issued.

(e) A subpoena issued under this subdivision must state that the person to whom the subpoena is directed may not disclose the fact that the subpoena was issued or the fact that the requested records have been given to law enforcement personnel or agents of the commissioner except:

(1) insofar as the disclosure is necessary and agreed upon by the commissioner, to find and disclose the records; or

(2) pursuant to court order.

Sec. 49.

Minnesota Statutes 2022, section 256.01, subdivision 5, is amended to read:

Subd. 5.

Gifts, contributions, pensions and benefits; acceptance.

deleted text begin The commissioner shall have the power and authority to accept in behalf of the state contributions and gifts for the use and benefit of children under the guardianship or custody of the commissioner;deleted text end The commissioner may deleted text begin alsodeleted text end receive and accept on behalf of deleted text begin such children, and on behalf ofdeleted text end patients and residents at the several state hospitals for persons with mental illness or developmental disabilities during the period of their hospitalization and while on provisional discharge therefrom, money due and payable to them as old age and survivors insurance benefits, veterans benefits, pensions or other such monetary benefits. Such gifts, contributions, pensions and benefits shall be deposited in and disbursed from the social welfare fund provided for in sections 256.88 to 256.92.

Sec. 50.

Minnesota Statutes 2022, section 256.01, subdivision 12, is amended to read:

Subd. 12.

Child mortality review panel.

(a) The commissioner shall establish a child mortality review panel to review deaths of children in Minnesota, including deaths attributed to maltreatment or in which maltreatment may be a contributing cause and to review near fatalities as defined in section 260E.35. The commissioners of health, education, new text begin human services, new text end and public safety and the attorney general shall each designate a representative to the child mortality review panel. Other panel members shall be appointed by the commissioner, including a board-certified pathologist and a physician who is a coroner or a medical examiner. The purpose of the panel shall be to make recommendations to the state and to county agencies for improving the child protection system, including modifications in statute, rule, policy, and procedure.

(b) The commissioner may require a county agency to establish a local child mortality review panel. The commissioner may establish procedures for conducting local reviews and may require that all professionals with knowledge of a child mortality case participate in the local review. In this section, "professional" means a person licensed to perform or a person performing a specific service in the child protective service system. "Professional" includes law enforcement personnel, social service agency attorneys, educators, and social service, health care, and mental health care providers.

(c) If the commissioner of human services has reason to believe that a child's death was caused by maltreatment or that maltreatment was a contributing cause, the commissioner has access to not public data under chapter 13 maintained by state agencies, statewide systems, or political subdivisions that are related to the child's death or circumstances surrounding the care of the child. The commissioner shall also have access to records of private hospitals as necessary to carry out the duties prescribed by this section. Access to data under this paragraph is limited to police investigative data; autopsy records and coroner or medical examiner investigative data; hospital, public health, or other medical records of the child; hospital and other medical records of the child's parent that relate to prenatal care; and records created by social service agencies that provided services to the child or family within three years preceding the child's death. A state agency, statewide system, or political subdivision shall provide the data upon request of the commissioner. Not public data may be shared with members of the state or local child mortality review panel in connection with an individual case.

(d) Notwithstanding the data's classification in the possession of any other agency, data acquired by a local or state child mortality review panel in the exercise of its duties is protected nonpublic or confidential data as defined in section 13.02, but may be disclosed as necessary to carry out the purposes of the review panel. The data is not subject to subpoena or discovery. The commissioner may disclose conclusions of the review panel, but shall not disclose data that was classified as confidential or private data on decedents, under section 13.10, or private, confidential, or protected nonpublic data in the disseminating agency, except that the commissioner may disclose local social service agency data as provided in section 260E.35, on individual cases involving a fatality or near fatality of a person served by the local social service agency prior to the date of death.

(e) A person attending a child mortality review panel meeting shall not disclose what transpired at the meeting, except to carry out the purposes of the mortality review panel. The proceedings and records of the mortality review panel are protected nonpublic data as defined in section 13.02, subdivision 13, and are not subject to discovery or introduction into evidence in a civil or criminal action against a professional, the state or a county agency, arising out of the matters the panel is reviewing. Information, documents, and records otherwise available from other sources are not immune from discovery or use in a civil or criminal action solely because they were presented during proceedings of the review panel. A person who presented information before the review panel or who is a member of the panel shall not be prevented from testifying about matters within the person's knowledge. However, in a civil or criminal proceeding a person shall not be questioned about the person's presentation of information to the review panel or opinions formed by the person as a result of the review meetings.

Sec. 51.

Minnesota Statutes 2022, section 256.01, subdivision 16, is amended to read:

Subd. 16.

Information for persons with limited English-language proficiency.

deleted text begin By July 1, 1998,deleted text end The commissioner shall implement a procedure for public assistance applicants and recipients to identify a language preference other than English in order to receive information pertaining to the public assistance programs in that preferred language.

Sec. 52.

Minnesota Statutes 2022, section 256.01, subdivision 18, is amended to read:

Subd. 18.

Immigration status verifications.

(a) Notwithstanding any waiver of this requirement by the secretary of the United States Department of Health and Human Services, deleted text begin effective July 1, 2001,deleted text end the commissioner shall utilize the Systematic Alien Verification for Entitlements (SAVE) program to conduct immigration status verifications:

(1) as required under United States Code, title 8, section 1642;new text begin andnew text end

deleted text begin (2) for all applicants for food assistance benefits, whether under the federal SNAP, the MFIP or work first program, or the Minnesota food assistance program; and deleted text end

deleted text begin (3)deleted text end new text begin (2)new text end for all applicants for general assistance, Minnesota supplemental aid, MinnesotaCare, or housing support under chapter 256I, when the benefits provided by these programs would fall under the definition of "federal public benefit" under United States Code, title 8, section 1642, if federal funds were used to pay for all or part of the benefits.

(b) The commissioner shall comply with the reporting requirements under United States Code, title 42, section 611a, and any federal regulation or guidance adopted under that law.

Sec. 53.

Minnesota Statutes 2022, section 256.01, subdivision 18a, is amended to read:

Subd. 18a.

Public Assistance Reporting Information System.

(a) deleted text begin Effective October 1, 2009,deleted text end The commissioner shall comply with the federal requirements in Public Law 110-379 in implementing the Public Assistance Reporting Information System (PARIS) to determine eligibility for all individuals applying for:

(1) health care benefits under chapters 256B and 256L; and

(2) public benefits under chapters deleted text begin 119B,deleted text end 256Ddeleted text begin ,deleted text end and 256Ideleted text begin , and the supplemental nutrition assistance programdeleted text end .

(b) The commissioner shall determine eligibility under paragraph (a) by performing data matches, including matching with medical assistance, cash, child care, and supplemental assistance programs operated by other states.

Sec. 54.

Minnesota Statutes 2022, section 256.01, subdivision 34, is amended to read:

Subd. 34.

Federal administrative reimbursement dedicated.

Federal administrative reimbursement resulting from the following activities is appropriated to the commissioner for the designated purposes:

(1) reimbursement for the Minnesota senior health options project;new text begin andnew text end

(2) reimbursement related to prior authorization, review of medical necessity, and inpatient admission certification by a professional review organization. A portion of these funds must be used for activities to decrease unnecessary pharmaceutical costs in medical assistancedeleted text begin ; anddeleted text end new text begin .new text end

deleted text begin (3) reimbursement resulting from the federal child support grant expenditures authorized under United States Code, title 42, section 1315. deleted text end

Sec. 55.

Minnesota Statutes 2022, section 256.012, subdivision 2, is amended to read:

Subd. 2.

Payment for services provided.

(a) The cost of merit system operations shall be paid by counties and other entities that utilize merit system services. Total costs shall be determined by the commissioner annually and must be set at a level that neither significantly overrecovers nor underrecovers the costs of providing the service. The costs of merit system services shall be prorated among participating counties in accordance with an agreement between the commissioner and these counties. Participating counties will be billed quarterly in advance and shall pay their share of the costs upon receipt of the billing.

(b) This subdivision does not apply to counties with personnel systems otherwise provided by law that meet federal merit system requirements. A county that applies to withdraw from the merit system must notify the commissioner of the county's intent to develop its own personnel system. This notice must be provided in writing by December 31 of the year preceding the year of final participation in the merit system. The county may withdraw after the commissioner has certified that its personnel system meets federal merit system requirements.

(c) A county merit system operations account is established in the special revenue fund. Payments received by the commissioner for merit system costs must be deposited in the merit system operations account and must be used for the purpose of providing the services and administering the merit system.

deleted text begin (d) County payment of merit system costs is effective July 1, 2003, however payment for the period from July 1, 2003, through December 31, 2003, shall be made no later than January 31, 2004. deleted text end

Sec. 56.

Minnesota Statutes 2022, section 256.012, is amended by adding a subdivision to read:

new text begin Subd. 4. new text end

new text begin Consultation with commissioner of children, youth, and families required. new text end

new text begin The commissioner must consult with the commissioner of children, youth, and families on the administration of the merit system, including on the requirements in this section. new text end

Sec. 57.

Minnesota Statutes 2022, section 256.016, is amended to read:

256.016 PLAIN LANGUAGE IN WRITTEN MATERIALS.

(a) To the extent reasonable and consistent with the goals of providing easily understandable and readable materials and complying with federal and state laws governing the programs, all written materials relating to services and determinations of eligibility for or amounts of benefits that will be given to applicants for or recipients of assistance under a program administered or supervised by the commissioner of human services must be understandable to a person who reads at the seventh-grade level, using the Flesch scale analysis readability score as determined under section 72C.09.

(b) All written materials relating to determinations of eligibility for or amounts of benefits that will be given to applicants for or recipients of assistance under programs administered or supervised by the commissioner of human services must be developed to satisfy the plain language requirements of the Plain Language Contract Act under sections 325G.29 to 325G.36. Materials may be submitted to the attorney general for review and certification. Notwithstanding section 325G.35, subdivision 1, the attorney general shall review submitted materials to determine whether they comply with the requirements of section 325G.31. The remedies available pursuant to sections 8.31 and 325G.33 to 325G.36 do not apply to these materials. Failure to comply with this section does not provide a basis for suspending the implementation or operation of other laws governing programs administered by the commissioner.

(c) deleted text begin The requirements of this section apply to all materials modified or developed by the commissioner on or after July 1, 1988.deleted text end The requirements of this section do not apply to materials that must be submitted to a federal agency for approval, to the extent that application of the requirements prevents federal approval.

(d) Nothing in this section may be construed to prohibit a lawsuit brought to require the commissioner to comply with this section or to affect individual appeal rights granted pursuant to section 256.045.

Sec. 58.

Minnesota Statutes 2022, section 256.017, subdivision 1, is amended to read:

Subdivision 1.

Authority and purpose.

new text begin (a) The commissioner of human services shall directly administer the compliance system for general assistance, medical assistance, emergency general assistance, Minnesota supplemental assistance, housing support, preadmission screening, alternative care grants, and all other programs administered by the commissioner or on behalf of the commissioner under the powers and authorities named in section 256.01, subdivision 2. new text end

new text begin (b) The commissioner of children, youth, and families shall administer the compliance system for the Minnesota family investment program, the Supplemental Nutrition Assistance Program (SNAP), the child care assistance program, and all other programs administered by the commissioner or on behalf of the commissioner under the powers and authorities named in section 142A.03, subdivision 2. new text end

new text begin (c) new text end The deleted text begin commissionerdeleted text end new text begin commissioners of human services and children, youth, and families new text end shallnew text begin cooperate as necessary tonew text end administer deleted text begin adeleted text end compliance deleted text begin system fordeleted text end new text begin systems related tonew text end the Minnesota family investment program, the Supplemental Nutrition Assistance Program (SNAP), deleted text begin emergency assistance,deleted text end general assistance, medical assistance, emergency general assistance, Minnesota supplemental assistance, housing support, preadmission screening, alternative care grants, the child care assistance program, and all other programs administered by the commissioner new text begin of human services new text end or on behalf of the commissioner new text begin of human services new text end under the powers and authorities named in section 256.01, subdivision 2.

new text begin (d) new text end The purpose of the compliance system is to permit the deleted text begin commissionerdeleted text end new text begin commissionersnew text end to supervise the administration of public assistance programs and to enforce timely and accurate distribution of benefits, completeness of service and efficient and effective program management and operations, to increase uniformity and consistency in the administration and delivery of public assistance programs throughout the state, and to reduce the possibility of sanctions and fiscal disallowances for noncompliance with federal regulations and state statutes. The deleted text begin commissionerdeleted text end new text begin commissionersnew text end , or the deleted text begin commissioner's representativedeleted text end new text begin commissioners' representativesnew text end , may issue administrative subpoenas as needed in administering the compliance system.

new text begin (e) new text end The deleted text begin commissionerdeleted text end new text begin commissionersnew text end shall utilize training, technical assistance, and monitoring activities, as specified in deleted text begin sectiondeleted text end new text begin sections 142A.03, subdivision 2, andnew text end 256.01, subdivision 2, to encourage county agency compliance with written policies and procedures.

Sec. 59.

Minnesota Statutes 2022, section 256.017, subdivision 2, is amended to read:

Subd. 2.

Definitions.

The following terms have the meanings given for purposes of this section.

(a) "Administrative penalty" means an adjustment against the county agency's state and federal benefit and federal administrative reimbursement when the commissioner determines that the county agency is not in compliance with the policies and procedures established by the commissioner.

new text begin (b) "Commissioner" means the commissioner of human services for programs listed in subdivision 1, paragraph (b), and the commissioner of children, youth, and families for programs listed in subdivision 1, paragraph (c). new text end

deleted text begin (b)deleted text end new text begin (c)new text end "Quality control case penalty" means an adjustment against the county agency's federal administrative reimbursement and state and federal benefit reimbursement when the commissioner determines through a quality control review that the county agency has made incorrect payments, terminations, or denials of benefits as determined by state quality control procedures for the aid to families with dependent children program formerly codified in sections 256.72 to 256.87, Minnesota family investment program, SNAP, or medical assistance programs, or any other programs for which the commissioner has developed a quality control system. Quality control case penalties apply only to agency errors as defined by state quality control procedures.

deleted text begin (c)deleted text end new text begin (d)new text end "Quality control/quality assurance" means a review system of a statewide random sample of cases, designed to provide data on program outcomes and the accuracy with which state and federal policies are being applied in issuing benefits and as a fiscal audit to ensure the accuracy of expenditures. The quality control/quality assurance system is administered by the department. For the aid to families with dependent children program formerly codified in sections 256.72 to 256.87, SNAP, and medical assistance, the quality control system is that required by federal regulation, or those developed by the commissioner.

Sec. 60.

Minnesota Statutes 2022, section 256.017, subdivision 3, is amended to read:

Subd. 3.

Quality control case penalty.

The deleted text begin departmentdeleted text end new text begin commissionernew text end shall disallow, withhold, or deny state and federal benefit reimbursement and federal administrative reimbursement payment to a county when the commissioner determines that the county has incorrectly issued benefits or incorrectly denied or terminated benefits. These cases shall be identified by state quality control reviews.

Sec. 61.

Minnesota Statutes 2022, section 256.017, subdivision 5, is amended to read:

Subd. 5.

Administrative penalties.

The deleted text begin departmentdeleted text end new text begin commissionernew text end shall disallow or withhold state and federal benefit reimbursement and federal administrative reimbursement from county agencies when the actions performed by the county agency are not in compliance with the written policies and procedures established by the commissioner. The policies and procedures must be previously communicated to the county agency. A county agency shall not be penalized for complying with a written policy or procedure, even if the policy or procedure is found to be erroneous and is subsequently rescinded by the commissioner.

Sec. 62.

Minnesota Statutes 2022, section 256.017, subdivision 7, is amended to read:

Subd. 7.

Process and exception.

(a)(1) The deleted text begin departmentdeleted text end new text begin commissionernew text end shall notify the county agency in writing of all proposed quality control case penalties.

(2) The county agency may submit a written exception of the quality control error claim and proposed penalty. The exception must be submitted to the commissioner within ten calendar days of the receipt of the penalty notice.

(3) Within 20 calendar days of receipt of the written exception, the commissioner shall sustain, dismiss, or amend the quality control findings and case penalty and notify the county agency, in writing, of the decision and the amount of any penalty. The commissioner's decision is not subject to judicial review.

(b)(1) The deleted text begin departmentdeleted text end new text begin commissionernew text end shall notify the county agency in writing of any proposed administrative penalty, the date by which the county agency must correct the issues noted in the penalty, and the time period within which the county agency must submit a corrective action plan for compliance.

(2) If the county agency fails to submit a corrective action plan within the stated time period, or if the corrective action plan does not bring the agency into compliance as determined by the deleted text begin departmentdeleted text end new text begin commissionernew text end , or if the county agency fails to meet the commitments in the corrective action plan, the deleted text begin departmentdeleted text end new text begin commissionernew text end shall issue the administrative penalty and notify the county agency in writing.

(3) The county agency may file written exception to the administrative penalty with the commissioner within 30 days of the receipt of the deleted text begin department'sdeleted text end new text begin commissioner'snew text end notice of issuing the administrative penalty. The county agency must notify the commissioner of its intent to file a written exception within ten days of the delivery of the deleted text begin department'sdeleted text end new text begin commissioner'snew text end notice of the administrative penalty. If the county agency does not notify the commissioner of its intent to file and does not file a written exception within the prescribed time periods, the department's initial decision shall be final.

(4) The commissioner shall sustain, dismiss, or amend the administrative penalty findings, and shall issue a written order to the county agency within 30 calendar days after receiving the county agency's written exception.

Sec. 63.

Minnesota Statutes 2022, section 256.018, is amended to read:

256.018 COUNTY PUBLIC ASSISTANCE INCENTIVE FUND.

The commissioner new text begin of human services, in coordination with the commissioner of children, youth, and families, new text end shall grant incentive awards of money specifically appropriated for this purpose to counties: (1) that have not been assessed an administrative penalty under section 256.017 in the corresponding fiscal year; and (2) that perform satisfactorily according to indicators established by the commissioner.

After consultation with county agencies, the commissioner shall inform county agencies in writing of the performance indicators that govern the awarding of the incentive fund for each fiscal year by April of the preceding fiscal year.

The commissioner may set performance indicators to govern the awarding of the total fund, may allocate portions of the fund to be awarded by unique indicators, or may set a sole indicator to govern the awarding of funds.

The funds shall be awarded to qualifying county agencies according to their share of benefits for the programs related to the performance indicators governing the distribution of the fund or part of it as compared to the total benefits of all qualifying county agencies for the programs related to the performance indicators governing the distribution of the fund or part of it.

Sec. 64.

Minnesota Statutes 2022, section 256.019, subdivision 1, is amended to read:

Subdivision 1.

Retention rates.

When an assistance recovery amount is collected and posted by a county agency under the provisions governing public assistance programs including general assistance medical care formerly codified in chapter 256D, general assistance, and Minnesota supplemental aid, the county may keep one-half of the recovery made by the county agency using any method other than recoupment. For medical assistance, if the recovery is made by a county agency using any method other than recoupment, the county may keep one-half of the nonfederal share of the recovery. For MinnesotaCare, if the recovery is collected and posted by the county agency, the county may keep one-half of the nonfederal share of the recovery.

This does not apply to recoveries from medical providers or to recoveries begun by the Department of Human Services' Surveillance and Utilization Review Division, State Hospital Collections Unit, and the Benefit Recoveries Division or, by the attorney general's office, or child support collections. deleted text begin In the Supplemental Nutrition Assistance Program (SNAP), the nonfederal share of recoveries in the federal tax offset program only will be divided equally between the state agency and the involved county agency.deleted text end

Sec. 65.

Minnesota Statutes 2022, section 256.019, subdivision 2, is amended to read:

Subd. 2.

Retention rates for deleted text begin AFDC anddeleted text end MFIP.

(a) When an assistance recovery amount is collected and posted by a county agency under the provisions governing deleted text begin the aid to families with dependent children program formerly codified in 1996 in sections 256.72 to 256.87 ordeleted text end MFIP under chapter 256J, the commissioner shall reimburse the county agency from the proceeds of the recovery using the applicable rate specified in paragraph (b) deleted text begin or (c)deleted text end .

deleted text begin (b) For recoveries of overpayments made on or before September 30, 1996, from the aid to families with dependent children program including the emergency assistance program, the commissioner shall reimburse the county agency at a rate of one-quarter of the recovery made by any method other than recoupment. deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end For recoveries of overpayments deleted text begin made after September 30, 1996, from the aid to families with dependent children including the emergency assistance program anddeleted text end new text begin fromnew text end programs funded in whole or in part by the temporary assistance to needy families program under section 256J.02, subdivision 2, and recoveries of nonfederally funded food assistance under section 256J.11, the commissioner shall reimburse the county agency at a rate of one-quarter of the recovery made by any method other than recoupment.

Sec. 66.

Minnesota Statutes 2022, section 256.029, is amended to read:

256.029 DOMESTIC VIOLENCE INFORMATIONAL BROCHURE.

(a) The commissioner shall provide a domestic violence informational brochure that provides information about the existence of domestic violence waivers for eligible public assistance applicants to all applicants of general assistance, deleted text begin Minnesota family investment program,deleted text end medical assistance, and MinnesotaCare. The brochure must explain that eligible applicants may be temporarily waived from certain program requirements due to domestic violence. The brochure must provide information about services and other programs to help victims of domestic violence.

(b) The brochure must be funded with TANF funds.

Sec. 67.

Minnesota Statutes 2023 Supplement, section 256.045, subdivision 3, is amended to read:

Subd. 3.

State agency hearings.

(a) State agency hearings are available for the following:

(1) any personnew text begin :new text end

new text begin (i)new text end applying for, receiving or having received public assistance, medical care, or a program of social services deleted text begin granted by the state agencydeleted text end new text begin administered by the commissionernew text end or a county agency deleted text begin or the federal Food and Nutrition Actdeleted text end new text begin on behalf of the commissioner; andnew text end

new text begin (ii)new text end whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid;

(2) any patient or relative aggrieved by an order of the commissioner under section 252.27;

(3) a party aggrieved by a ruling of a prepaid health plan;

(4) except as provided under chapter 245C, any individual or facility determined by a lead investigative agency to have maltreated a vulnerable adult under section 626.557 after they have exercised their right to administrative reconsideration under section 626.557;

deleted text begin (5) any person whose claim for foster care payment according to a placement of the child resulting from a child protection assessment under chapter deleted text end deleted text begin 260E deleted text end deleted text begin is denied or not acted upon with reasonable promptness, regardless of funding source; deleted text end

deleted text begin (6)deleted text end new text begin (5)new text end any person to whom a right of appeal according to this section is given by other provision of law;

deleted text begin (7)deleted text end new text begin (6)new text end an applicant aggrieved by an adverse decision to an application for a hardship waiver under section 256B.15;

deleted text begin (8)deleted text end new text begin (7)new text end an applicant aggrieved by an adverse decision to an application or redetermination for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;

deleted text begin (9) except as provided under chapter deleted text end deleted text begin 245A deleted text end deleted text begin , an individual or facility determined to have maltreated a minor under chapter deleted text end deleted text begin 260E deleted text end deleted text begin , after the individual or facility has exercised the right to administrative reconsideration under chapter deleted text end deleted text begin 260E deleted text end deleted text begin ; deleted text end

deleted text begin (10)deleted text end new text begin (8)new text end except as provided under chapter 245Cnew text begin and except for a subject of a background study that the commissioner has conducted on behalf of another agency for a program or facility not otherwise overseen by the commissionernew text end , an individual disqualified under sections 245C.14 and 245C.15, following a reconsideration decision issued under section 245C.23, on the basis of serious or recurring maltreatment; a preponderance of the evidence that the individual has committed an act or acts that meet the definition of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make reports required under section 260E.06, subdivision 1, or 626.557, subdivision 3. Hearings regarding a maltreatment determination under clause (4) or deleted text begin (9)deleted text end new text begin (8) or section 142A.20, subdivision 3, clause (4),new text end and a disqualification under this clause in which the basis for a disqualification is serious or recurring maltreatment, shall be consolidated into a single fair hearing. In such cases, the scope of review by the human services judge shall include both the maltreatment determination and the disqualification. The failure to exercise the right to an administrative reconsideration shall not be a bar to a hearing under this section if federal law provides an individual the right to a hearing to dispute a finding of maltreatment;

deleted text begin (11)deleted text end new text begin (9)new text end any person with an outstanding debt resulting from receipt of public assistancedeleted text begin ,deleted text end new text begin administered by the commissioner ornew text end medical caredeleted text begin , or the federal Food and Nutrition Actdeleted text end who is contesting a setoff claim by the Department of Human Services or a county agency. The scope of the appeal is the validity of the claimant agency's intention to request a setoff of a refund under chapter 270A against the debt;

deleted text begin (12)deleted text end new text begin (10)new text end a person issued a notice of service termination under section 245D.10, subdivision 3a, by a licensed provider of any residential supports or services listed in section 245D.03, subdivision 1, paragraphs (b) and (c), that is not otherwise subject to appeal under subdivision 4a;

deleted text begin (13)deleted text end new text begin (11)new text end an individual disability waiver recipient based on a denial of a request for a rate exception under section 256B.4914;

deleted text begin (14)deleted text end new text begin (12)new text end a person issued a notice of service termination under section 245A.11, subdivision 11, that is not otherwise subject to appeal under subdivision 4a; or

deleted text begin (15)deleted text end new text begin (13)new text end a recovery community organization seeking medical assistance vendor eligibility under section 254B.01, subdivision 8, that is aggrieved by a membership or accreditation determination and that believes the organization meets the requirements under section 254B.05, subdivision 1, paragraph (d), clauses (1) to (10). The scope of the review by the human services judge shall be limited to whether the organization meets each of the requirements under section 254B.05, subdivision 1, paragraph (d), clauses (1) to (10).

(b) The hearing for an individual or facility under paragraph (a), clause (4), deleted text begin (9)deleted text end new text begin (8)new text end , or deleted text begin (10)deleted text end new text begin (9)new text end , is the only administrative appeal to the final agency determination specifically, including a challenge to the accuracy and completeness of data under section 13.04. Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a contested case proceeding under the provisions of chapter 14. Hearings requested under paragraph (a), clause deleted text begin (9)deleted text end new text begin (8)new text end , apply only to incidents of maltreatment that occur on or after July 1, 1997. A hearing for an individual or facility under paragraph (a), deleted text begin clauses (4), (9), and (10)deleted text end new text begin clause (4), (8), or (9)new text end , is only available when there is no district court action pending. If such action is filed in district court while an administrative review is pending that arises out of some or all of the events or circumstances on which the appeal is based, the administrative review must be suspended until the judicial actions are completed. If the district court proceedings are completed, dismissed, or overturned, the matter may be considered in an administrative hearing.

(c) For purposes of this section, bargaining unit grievance procedures are not an administrative appeal.

deleted text begin (d) The scope of hearings involving claims to foster care payments under paragraph (a), clause (5), shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision. deleted text end

deleted text begin (e)deleted text end new text begin (d)new text end The scope of hearings under paragraph (a), clauses deleted text begin (12)deleted text end new text begin (11)new text end and deleted text begin (14)deleted text end new text begin (13)new text end , shall be limited to whether the proposed termination of services is authorized under section 245D.10, subdivision 3a, paragraph (b), or 245A.11, subdivision 11, and whether the requirements of section 245D.10, subdivision 3a, paragraphs (c) to (e), or 245A.11, subdivision 2a, paragraphs (d) deleted text begin to (f)deleted text end new text begin and (e)new text end , were met. If the appeal includes a request for a temporary stay of termination of services, the scope of the hearing shall also include whether the case management provider has finalized arrangements for a residential facility, a program, or services that will meet the assessed needs of the recipient by the effective date of the service termination.

deleted text begin (f)deleted text end new text begin (e)new text end A vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services is not a party and may not request a hearing under this section, except if assisting a recipient as provided in subdivision 4.

deleted text begin (g)deleted text end new text begin (f)new text end An applicant or recipient is not entitled to receive social services beyond the services prescribed under chapter 256M or other social services the person is eligible for under state law.

deleted text begin (h)deleted text end new text begin (g)new text end The commissioner may summarily affirm the county or state agency's proposed action without a hearing when the sole issue is an automatic change due to a change in state or federal law.

deleted text begin (i)deleted text end new text begin (h)new text end Unless federal or Minnesota law specifies a different time frame in which to file an appeal, an individual or organization specified in this section may contest the specified action, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition, or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause, as defined in section 256.0451, subdivision 13, why the request was not submitted within the 30-day time limit. The individual filing the appeal has the burden of proving good cause by a preponderance of the evidence.

Sec. 68.

Minnesota Statutes 2022, section 256.045, subdivision 3b, is amended to read:

Subd. 3b.

Standard of evidence for maltreatment and disqualification hearings.

(a) The state human services judge shall determine that maltreatment has occurred if a preponderance of evidence exists to support the final disposition under section 626.557 and chapter 260E. For purposes of hearings regarding disqualification, the state human services judge shall affirm the proposed disqualification in an appeal under subdivision 3, paragraph (a), clause deleted text begin (10)deleted text end new text begin (9)new text end , if a preponderance of the evidence shows the individual has:

(1) committed maltreatment under section 626.557 or chapter 260Edeleted text begin , whichdeleted text end new text begin thatnew text end is serious or recurring;

(2) committed an act or acts meeting the definition of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or

(3) failed to make required reports under section 626.557 or chapter 260E, for incidents in which the final disposition under section 626.557 or chapter 260E was substantiated maltreatment that was serious or recurring.

(b) If the disqualification is affirmed, the state human services judge shall determine whether the individual poses a risk of harm in accordance with the requirements of section 245C.22, and whether the disqualification should be set aside or not set aside. In determining whether the disqualification should be set aside, the human services judge shall consider all of the characteristics that cause the individual to be disqualified, including those characteristics that were not subject to review under paragraph (a), in order to determine whether the individual poses a risk of harm. A decision to set aside a disqualification that is the subject of the hearing constitutes a determination that the individual does not pose a risk of harm and that the individual may provide direct contact services in the individual program specified in the set aside.

(c) If a disqualification is based solely on a conviction or is conclusive for any reason under section 245C.29, the disqualified individual does not have a right to a hearing under this section.

(d) The state human services judge shall recommend an order to the commissioner of health, education, or human services, as applicable, who shall issue a final order. The commissioner shall affirm, reverse, or modify the final disposition. Any order of the commissioner issued in accordance with this subdivision is conclusive upon the parties unless appeal is taken in the manner provided in subdivision 7. In any licensing appeal under chapters 245A and 245C and sections 144.50 to 144.58 and 144A.02 to 144A.482, the commissioner's determination as to maltreatment is conclusive, as provided under section 245C.29.

Sec. 69.

Minnesota Statutes 2022, section 256.045, subdivision 4, is amended to read:

Subd. 4.

Conduct of hearings.

(a) All hearings held pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted according to the provisions of the federal Social Security Act and the regulations implemented in accordance with that act to enable this state to qualify for federal grants-in-aid, and according to the rules and written policies of the commissioner of human services. County agencies shall install equipment necessary to conduct telephone hearings. A state human services judge may schedule a telephone conference hearing when the distance or time required to travel to the county agency offices will cause a delay in the issuance of an order, or to promote efficiency, or at the mutual request of the parties. Hearings may be conducted by telephone conferences unless the applicant, recipient, former recipient, person, or facility contesting maltreatment objects. A human services judge may grant a request for a hearing in person by holding the hearing by interactive video technology or in person. The human services judge must hear the case in person if the person asserts that either the person or a witness has a physical or mental disability that would impair the person's or witness's ability to fully participate in a hearing held by interactive video technology. The hearing shall not be held earlier than five days after filing of the required notice with the county or state agency. The state human services judge shall notify all interested persons of the time, date, and location of the hearing at least five days before the date of the hearing. Interested persons may be represented by legal counsel or other representative of their choice, including a provider of therapy services, at the hearing and may appear personally, testify and offer evidence, and examine and cross-examine witnesses. The applicant, recipient, former recipient, person, or facility contesting maltreatment shall have the opportunity to examine the contents of the case file and all documents and records to be used by the county or state agency at the hearing at a reasonable time before the date of the hearing and during the hearing. In hearings under subdivision 3, paragraph (a), clauses (4), deleted text begin (9)deleted text end new text begin (8)new text end , and deleted text begin (10)deleted text end new text begin (9)new text end , either party may subpoena the private data relating to the investigation prepared by the agency under section 626.557 or chapter 260E that is not otherwise accessible under section 13.04, provided the identity of the reporter may not be disclosed.

(b) The private data obtained by subpoena in a hearing under subdivision 3, paragraph (a), clause (4), deleted text begin (9)deleted text end new text begin (8)new text end , or deleted text begin (10)deleted text end new text begin (9)new text end , must be subject to a protective order which prohibits its disclosure for any other purpose outside the hearing provided for in this section without prior order of the district court. Disclosure without court order is punishable by a sentence of not more than 90 days imprisonment or a fine of not more than $1,000, or both. These restrictions on the use of private data do not prohibit access to the data under section 13.03, subdivision 6. Except for appeals under subdivision 3, paragraph (a), clauses (4), deleted text begin (5), (9)deleted text end new text begin (8)new text end , and deleted text begin (10)deleted text end new text begin (9)new text end , upon request, the county agency shall provide reimbursement for transportation, child care, photocopying, medical assessment, witness fee, and other necessary and reasonable costs incurred by the applicant, recipient, or former recipient in connection with the appeal. All evidence, except that privileged by law, commonly accepted by reasonable people in the conduct of their affairs as having probative value with respect to the issues shall be submitted at the hearing and such hearing shall not be "a contested case" within the meaning of section 14.02, subdivision 3. The agency must present its evidence prior to or at the hearing, and may not submit evidence after the hearing except by agreement of the parties at the hearing, provided the petitioner has the opportunity to respond.

(c) In hearings under subdivision 3, paragraph (a), deleted text begin clauses (4), (9), and (10)deleted text end new text begin clause (4), (8), or (9)new text end , involving determinations of maltreatment or disqualification made by more than one county agency, by a county agency and a state agency, or by more than one state agency, the hearings may be consolidated into a single fair hearing upon the consent of all parties and the state human services judge.

(d) For hearings under subdivision 3, paragraph (a), clause (4) or deleted text begin (10)deleted text end new text begin (9)new text end , involving a vulnerable adult, the human services judge shall notify the vulnerable adult who is the subject of the maltreatment determination and, if known, a guardian of the vulnerable adult appointed under section 524.5-310, or a health care agent designated by the vulnerable adult in a health care directive that is currently effective under section 145C.06 and whose authority to make health care decisions is not suspended under section 524.5-310, of the hearing. The notice must be sent by certified mail and inform the vulnerable adult of the right to file a signed written statement in the proceedings. A guardian or health care agent who prepares or files a written statement for the vulnerable adult must indicate in the statement that the person is the vulnerable adult's guardian or health care agent and sign the statement in that capacity. The vulnerable adult, the guardian, or the health care agent may file a written statement with the human services judge hearing the case no later than five business days before commencement of the hearing. The human services judge shall include the written statement in the hearing record and consider the statement in deciding the appeal. This subdivision does not limit, prevent, or excuse the vulnerable adult from being called as a witness testifying at the hearing or grant the vulnerable adult, the guardian, or health care agent a right to participate in the proceedings or appeal the human services judge's decision in the case. The lead investigative agency must consider including the vulnerable adult victim of maltreatment as a witness in the hearing. If the lead investigative agency determines that participation in the hearing would endanger the well-being of the vulnerable adult or not be in the best interests of the vulnerable adult, the lead investigative agency shall inform the human services judge of the basis for this determination, which must be included in the final order. If the human services judge is not reasonably able to determine the address of the vulnerable adult, the guardian, or the health care agent, the human services judge is not required to send a hearing notice under this subdivision.

Sec. 70.

Minnesota Statutes 2022, section 256.045, subdivision 6, is amended to read:

Subd. 6.

Additional powers of commissioner; subpoenas.

(a) The commissioner of human services, or the commissioner of health for matters within the commissioner's jurisdiction under subdivision 3b, may initiate a review of any action or decision of a county agency and direct that the matter be presented to a state human services judge for a hearing held under subdivision 3, 3a, 3b, or 4a. In all matters dealing with human services committed by law to the discretion of the county agency, the commissioner's judgment may be substituted for that of the county agency. The commissioner may order an independent examination when appropriate.

(b) Any party to a hearing held pursuant to subdivision 3, 3a, 3b, or 4a may request that the commissioner issue a subpoena to compel the attendance of witnesses and the production of records at the hearing. A local agency may request that the commissioner issue a subpoena to compel the release of information from third parties prior to a request for a hearing under section 256.046 upon a showing of relevance to such a proceeding. The issuance, service, and enforcement of subpoenas under this subdivision is governed by section 357.22 and the Minnesota Rules of Civil Procedure.

(c) The commissioner may issue a temporary order staying a proposed demission by a residential facility licensed under chapter 245A:

(1) while an appeal by a recipient under subdivision 3 is pending;

(2) for the period of time necessary for the case management provider to implement the commissioner's order; or

(3) for appeals under subdivision 3, paragraph (a), clause deleted text begin (12)deleted text end new text begin (11)new text end , when the individual is seeking a temporary stay of demission on the basis that the county has not yet finalized an alternative arrangement for a residential facility, a program, or services that will meet the assessed needs of the individual by the effective date of the service termination, a temporary stay of demission may be issued for no more than 30 calendar days to allow for such arrangements to be finalized.

Sec. 71.

Minnesota Statutes 2022, section 256.045, subdivision 10, is amended to read:

Subd. 10.

Payments pending appeal.

If the commissioner of human services or district court orders monthly assistance or aid or services paid or provided in any proceeding under this section, it shall be paid or provided pending appeal to the commissioner of human services, district court, court of appeals, or supreme court. The human services judge may order the local human services agency to reduce or terminate medical assistance to a recipient before a final order is issued under this section if: (1) the human services judge determines at the hearing that the sole issue on appeal is one of a change in state or federal law; and (2) the commissioner or the local agency notifies the recipient before the action. The state or county agency has a claim for deleted text begin Supplemental Nutrition Assistance Program (SNAP) benefits,deleted text end cash payments, medical assistance, and MinnesotaCare program payments made to or on behalf of a recipient or former recipient while an appeal is pending if the recipient or former recipient is determined ineligible for deleted text begin SNAP benefits,deleted text end cash payments, medical assistance, or MinnesotaCare as a result of the appeal, except for medical assistance made on behalf of a recipient pursuant to a court order. In enforcing a claim on MinnesotaCare program payments, the state or county agency shall reduce the claim amount by the value of any premium payments made by a recipient or former recipient during the period for which the recipient or former recipient has been determined to be ineligible. Provision of a health care service by the state agency under medical assistance or MinnesotaCare pending appeal shall not render moot the state agency's position in a court of law.

Sec. 72.

Minnesota Statutes 2022, section 256.0451, subdivision 1, is amended to read:

Subdivision 1.

Scope.

new text begin (a) new text end The requirements in this section apply to all fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (1), (2), (3), (5), (6), (7), (8), (11), and (13). Except as provided in subdivisions 3 and 19, the requirements under this section apply to fair hearings and appeals under section 256.045, subdivision 3, paragraph (a), clauses (4), (9), (10), and (12).

deleted text begin The term "person" is used in this section to meandeleted text end new text begin (b) For purposes of this section, "person" meansnew text end an individual who, on behalf of themselves or their household, is appealing or disputing or challenging an action, a decision, or a failure to act, by an agency in the human services system. When a person involved in a proceeding under this section is represented by an attorney or by an authorized representative, the term "person" also deleted text begin refers todeleted text end new text begin meansnew text end the person's attorney or authorized representative. Any notice sent to the person involved in the hearing must also be sent to the person's attorney or authorized representative.

deleted text begin The term "agency" includesdeleted text end new text begin (c) For purposes of this section, "agency" meansnew text end the county human services agency, the state human services agency, and, where applicable, any entity involved under a contract, subcontract, grant, or subgrant with the state agency or with a county agency, that provides or operates programs or services in which appeals are governed by section 256.045.

Sec. 73.

Minnesota Statutes 2022, section 256.0451, subdivision 2, is amended to read:

Subd. 2.

Access to files.

A person involved in a fair hearing appeal has the right of access to the person's complete case files and to examine all private welfare data on the person which has been generated, collected, stored, or disseminated by the agency. A person involved in a fair hearing appeal has the right to a free copy of all documents in the case file involved in a fair hearing appeal. new text begin For purposes of this section, new text end "case file" means the information, documents, and data, in whatever form, which have been generated, collected, stored, or disseminated by the agency in connection with the person and the program or service involved.

Sec. 74.

Minnesota Statutes 2023 Supplement, section 256.046, subdivision 1, is amended to read:

Subdivision 1.

Hearing authority.

A local agency must initiate an administrative fraud disqualification hearing for individuals accused of wrongfully obtaining assistance or intentional program violations, in lieu of a criminal action when it has not been pursued, in deleted text begin the Minnesota family investment program and any affiliated program to include the work participation cash benefit program, child care assistance programs,deleted text end general assistance, family general assistance program formerly codified in section 256D.05, subdivision 1, clause (15), Minnesota supplemental aid, deleted text begin the Supplemental Nutrition Assistance Program (SNAP),deleted text end 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 sections 256.045 and 256.0451 and the requirements in Code of Federal Regulations, title 7, section 273.16.

Sec. 75.

Minnesota Statutes 2022, section 256.046, subdivision 2, is amended to read:

Subd. 2.

Combined hearing.

new text begin (a) new text end The human services judge may combine a fair hearing new text begin under section 142A.20 or 256.045 new text end and administrative fraud disqualification hearing new text begin under this section or section 142A.27 new text end into a single hearing if the factual issues arise out of the same, or related, circumstancesnew text begin ; the commissioner of human services has jurisdiction over at least one of the hearings;new text end and the individual receives prior notice that the hearings will be combined. If the administrative fraud disqualification hearing and fair hearing are combined, the time frames for administrative fraud disqualification hearings specified in Code of Federal Regulations, title 7, section 273.16, apply. If the individual accused of wrongfully obtaining assistance is charged under section 256.98 for the same act or acts which are the subject of the hearing, the individual may request that the hearing be delayed until the criminal charge is decided by the court or withdrawn.

new text begin (b) The human services judge must conduct any hearings under section 142A.20 or 142A.27 pursuant to the relevant laws and rules governing children, youth, and families judges. new text end

Sec. 76.

Minnesota Statutes 2023 Supplement, section 256.0471, subdivision 1, is amended to read:

Subdivision 1.

Qualifying overpayment.

Any overpayment deleted text begin for assistance granted under the MFIP program formerly codified under sections 256.031 to 256.0361 and the AFDC program formerly codified under sections 256.72 to 256.871; for assistance granted under chapters deleted text end deleted text begin 119Bdeleted text end deleted text begin , deleted text end deleted text begin 256Ddeleted text end deleted text begin , deleted text end deleted text begin 256Ideleted text end deleted text begin , deleted text end deleted text begin 256Jdeleted text end deleted text begin , and deleted text end deleted text begin 256Kdeleted text end deleted text begin ;deleted text end for assistance granted pursuant to section 256.045, subdivision 10; deleted text begin for state-funded medical assistance and state-funded MinnesotaCare under chapters deleted text end deleted text begin 256Bdeleted text end deleted text begin and deleted text end deleted text begin 256Ldeleted text end deleted text begin ; and for assistance granted under the Supplemental Nutrition Assistance Program (SNAP),deleted text end new text begin chapter 256B for state-funded medical assistance; and chapters 256D, 256I, 256K, and 256L for state-funded MinnesotaCare new text end except agency error claims, become a judgment by operation of law 90 days after the notice of overpayment is personally served upon the recipient in a manner that is sufficient under rule 4.03(a) of the Rules of Civil Procedure for district courts, or by certified mail, return receipt requested. This judgment shall be entitled to full faith and credit in this and any other state.

Sec. 77.

Minnesota Statutes 2022, section 256.82, is amended to read:

256.82 PAYMENTS BY STATE.

Subd. 2.

Foster care maintenance payments.

(a) For the purpose of foster care maintenance payments under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to 676, the county or American Indian child welfare initiative Tribes under section 256.01, subdivision 14b, paying the maintenance costs must be reimbursed for the costs from the federal money available for the purpose. deleted text begin Beginning July 1, 1997,deleted text end For the purposes of determining a child's eligibility under title IV-E of the Social Security Act, the placing agency shall use AFDC requirements in effect on July 16, 1996.

(b) For the purpose of foster care maintenance payments under title IV-E of the Social Security Act, United States Code, title 42, sections 670 to 676, the state is responsible for approving of child care institutions for the county paying the facility's maintenance costs to be reimbursed from the federal money available for the purpose. The facility must be licensed by the state or approved or licensed by a Tribe.

Subd. 3.

Setting foster care standard rates.

(a) The commissioner shall annually establish minimum rates for foster care maintenance including supplemental difficulty of care payments for all children eligible for Northstar Care for Children under chapter 256N.

(b) All children entering foster care on or after January 1, 2015, are eligible for Northstar Care for Children under chapter 256N. Any increase in rates shall in no case exceed three percent per annum.

(c) All children in foster care on December 31, 2014, must remain in the pre-Northstar Care for Children foster care program under sections 256N.21, subdivision 6, and 260C.4411, subdivision 1. The rates for the pre-Northstar Care for Children foster care program shall remain those in effect on January 1, 2013.

new text begin (d) The commissioner of children, youth, and families may promulgate rules as necessary to implement this section. new text end

Sec. 78.

Minnesota Statutes 2023 Supplement, 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 work participation cash benefit program, the Supplemental Nutrition Assistance Program (SNAP), 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 SNAP. 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 sectionnew text begin 142A.27; 142E.51, subdivision 5; ornew text end 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 three years for the first offense. 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. 79.

Minnesota Statutes 2022, section 256.981, is amended to read:

256.981 TRAINING OF WELFARE FRAUD PROSECUTORS.

The deleted text begin commissionerdeleted text end new text begin commissionersnew text end of human services new text begin and children, youth, and families new text end shall, to the extent an appropriation is provided for this purpose, contract with the county attorney's council or other public or private entity experienced in providing training for prosecutors to conduct quarterly workshops and seminars focusing on current Minnesota family investment program issues, other income maintenance program changes, recovery issues, alternative sentencing methods, use of technical aids for interviews and interrogations, and other matters affecting prosecution of welfare fraud cases.

Sec. 80.

Minnesota Statutes 2022, section 256.982, is amended to read:

256.982 TRAINING OF WELFARE FRAUD INVESTIGATORS.

The deleted text begin commissionerdeleted text end new text begin commissionersnew text end of human services new text begin and children, youth, and families new text end shall, to the extent an appropriation is provided for this purpose, establish a pilot project for further education and training of welfare fraud investigators. The commissioner may enter into contractual agreements with other state, federal, or county agencies as part of cooperative projects employing experienced investigators to provide on-the-job training to county investigators.

Sec. 81.

Minnesota Statutes 2022, section 256.983, as amended by Laws 2023, chapter 70, article 13, section 24, is amended to read:

256.983 FRAUD PREVENTION INVESTIGATIONS.

Subdivision 1.

Programs established.

Within the limits of available appropriations, the deleted text begin commissionerdeleted text end new text begin commissionersnew text end of human services new text begin and children, youth, and families new text end shall require the maintenance of budget neutral fraud prevention investigation programs in the counties or Tribal agencies participating in the fraud prevention investigation project established under this section. If funds are sufficient, the deleted text begin commissionerdeleted text end new text begin commissionersnew text end may also extend fraud prevention investigation programs to other counties or Tribal agencies provided the expansion is budget neutral to the state. Under any expansion, the deleted text begin commissioner hasdeleted text end new text begin commissioners jointly havenew text end the final authority in decisions regarding the creation and realignment of individual county, Tribal agency, or regional operations.new text begin The commissioners may establish a joint office or interagency agreement to facilitate joint oversight and administration of sections 256.981 to 256.9861 and 256.9866.new text end

Subd. 2.

County and Tribal agency proposals.

Each participating county and Tribal agency shall develop and submit an annual staffing and funding proposal to the deleted text begin commissionerdeleted text end new text begin commissionersnew text end no later than April 30 of each year. Each proposal shall include, but not be limited to, the staffing and funding of the fraud prevention investigation program, a job description for investigators involved in the fraud prevention investigation program, and the organizational structure of the county or Tribal agency unit, training programs for case workers, and the operational requirements which may be directed by the deleted text begin commissionerdeleted text end new text begin commissionersnew text end . The proposal shall be approved, to include any changes directed or negotiated by the deleted text begin commissionerdeleted text end new text begin commissionersnew text end , no later than June 30 of each year.

Subd. 3.

Department responsibilities.

The deleted text begin commissionerdeleted text end new text begin commissionersnew text end shall establish training programs which shall be attended by all investigative and supervisory staff of the involved county and Tribal agencies. The deleted text begin commissionerdeleted text end new text begin commissionersnew text end shall also develop the necessary operational guidelines, forms, and reporting mechanismsdeleted text begin , whichdeleted text end new text begin thatnew text end shall be used by the involved county or Tribal agencies. An individual's application or redetermination form for public assistance benefits, including child care assistance programs and medical care programs, must include an authorization for release by the individual to obtain documentation for any information on that form which is involved in a fraud prevention investigation. The authorization for release is effective for six months after public assistance benefits have ceased.

Subd. 4.

Funding.

(a) County and Tribal agency reimbursement shall be made through the settlement provisions applicable to the Supplemental Nutrition Assistance Program (SNAP), MFIP, child care assistance programs, the medical assistance program, and other federal and state-funded programs.

(b) The deleted text begin commissionerdeleted text end new text begin commissionersnew text end will maintain program compliance if for any three consecutive month period, a county or Tribal agency fails to comply with fraud prevention investigation program guidelines, or fails to meet the cost-effectiveness standards developed by the deleted text begin commissionerdeleted text end new text begin commissionersnew text end . This result is contingent on the deleted text begin commissionerdeleted text end new text begin commissionersnew text end providing written notice, including an offer of technical assistance, within 30 days of the end of the third or subsequent month of noncompliance. The county or Tribal agency shall be required to submit a corrective action plan to the deleted text begin commissionerdeleted text end new text begin commissionersnew text end within 30 days of receipt of a notice of noncompliance. Failure to submit a corrective action plan or, continued deviation from standards of more than ten percent after submission of a corrective action plan, will result in denial of funding for each subsequent month, or billing the county or Tribal agency for fraud prevention investigation (FPI) service provided by the deleted text begin commissionerdeleted text end new text begin commissionersnew text end , or reallocation of program grant funds, or investigative resources, or both, to other counties or Tribal agencies. The denial of funding shall apply to the general settlement received by the county or Tribal agency on a quarterly basis and shall not reduce the grant amount applicable to the FPI project.

Subd. 5.

Child care providers; financial misconduct.

(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 deleted text begin commissionerdeleted text end new text begin commissionersnew text end to determine whether an investigation under this chapter may compromise an ongoing investigation.

(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 deleted text begin commissionerdeleted text end new text begin commissionersnew text end , or committed financial misconduct as described in section 245E.01, subdivision 8, the county or Tribal agency may recommend that the deleted text begin commissionerdeleted text end new text begin commissionersnew text end 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.

Sec. 82.

Minnesota Statutes 2022, section 256.9831, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Definitiondeleted text end new text begin Gambling establishmentsnew text end .

new text begin (a) new text end For purposes of this section, "gambling establishment" means a racetrack licensed under section 240.06 or 240.09, a casino operated under a Tribal-state compact under section 3.9221, or any other establishment that receives at least 50 percent of its gross revenue from the conduct of gambling.

new text begin (b) The commissioner shall take all actions necessary to ensure that no person may obtain benefits under chapter 256, 256D, or 256J through the use of a financial transaction card, as defined in section 609.821, subdivision 1, paragraph (a), at a terminal located in or attached to a gambling establishment, liquor store, tobacco store, or tattoo parlor. new text end

new text begin (c) The commissioner shall take all actions necessary to ensure that warrants issued to pay benefits under chapter 256 or 256D bear a restrictive endorsement that prevents their being cashed in a gambling establishment. new text end

Sec. 83.

Minnesota Statutes 2022, section 256.986, is amended to read:

256.986 COUNTY COORDINATION OF FRAUD CONTROL ACTIVITIES.

(a) The county agency shall prepare and submit to the deleted text begin commissionerdeleted text end new text begin commissionersnew text end of human services new text begin and children, youth, and families new text end by April 30 of each state fiscal year a plan to coordinate county duties related to the prevention, investigation, and prosecution of fraud in public assistance programs. Each county must submit its first annual plan prior to April 30, 1998.

(b) Within the limits of appropriations specifically made available for this purpose, the deleted text begin commissionerdeleted text end new text begin commissionersnew text end may make grants to counties submitting plans under paragraph (a) to implement coordination activities.

Sec. 84.

Minnesota Statutes 2022, section 256.9861, is amended to read:

256.9861 FRAUD CONTROL; PROGRAM INTEGRITY REINVESTMENT PROJECT.

Subdivision 1.

Program established.

Within the limits of available state and federal appropriations, the deleted text begin commissionerdeleted text end new text begin commissionersnew text end of human services new text begin and children, youth, and families new text end shall make funding available to county agencies for fraud control efforts and require the maintenance of county efforts and financial contributions that were in place during fiscal year 1996.

Subd. 2.

County proposals.

Each included county shall develop and submit annual funding, staffing, and operating grant proposals to the deleted text begin commissionerdeleted text end new text begin commissionersnew text end no later than April 30 of each year for the purpose of allocating federal and state funding and appropriations. Each proposal shall provide information on:

(1) the staffing and funding of the fraud investigation and prosecution operations;

(2) job descriptions for agency fraud control staff;

(3) contracts covering outside investigative agencies;

(4) operational methods to integrate the use of fraud prevention investigation techniques; and

(5) implementation and utilization of administrative disqualification hearings and diversions by the existing county fraud control and prosecution procedures.

Subd. 3.

Department responsibilities.

The deleted text begin commissionerdeleted text end new text begin commissionersnew text end shall provide written instructions outlining the contents of the proposals to be submitted under this section. Instructions shall be made available 30 days prior to the date by which proposals under subdivision 2 must be submitted. The deleted text begin commissionerdeleted text end new text begin commissionersnew text end shall establish training programs which shall be attended by fraud control staff of all involved counties. The deleted text begin commissionerdeleted text end new text begin commissionersnew text end shall also develop the necessary operational guidelines, forms, and reporting mechanisms which shall be used by the involved counties.

Subd. 4.

Standards.

The deleted text begin commissionerdeleted text end new text begin commissionersnew text end shall, after consultation with the involved counties, establish standards governing the performance levels of county investigative units based on grant agreements with the county agencies. The standards shall take into consideration and may include investigative caseloads, grant savings levels, the comparison of fraud prevention and prosecution directed investigations, utilization levels of administrative disqualification hearings, the timely reporting and implementation of disqualifications, and the timeliness of the submission of statistical reports.

Subd. 5.

Funding.

(a) State funding shall be made available contingent on counties submitting a plan that is approved by the deleted text begin Departmentdeleted text end new text begin Departmentsnew text end of Human Servicesnew text begin and Children, Youth, and Familiesnew text end . Failure or delay in obtaining that approval shall not, however, eliminate the obligation to maintain fraud control efforts at the June 30, 1996, level. County agency reimbursement shall be made through the settlement provisions applicable to the MFIP, Supplemental Nutrition Assistance Program (SNAP), and medical assistance program.

(b) Should a county agency fail to comply with the standards set, or fail to meet cost-effectiveness standards developed by the deleted text begin commissionerdeleted text end new text begin commissionersnew text end for any three-month period, the deleted text begin commissionerdeleted text end new text begin commissionersnew text end shall deny reimbursement or administrative costs, after allowing an opportunity to establish compliance.

(c) Any denial of reimbursement under paragraph (b) is contingent on the deleted text begin commissionerdeleted text end new text begin commissionersnew text end providing written notice, including an offer of technical assistance, within 30 days of the end of the third or subsequent months of noncompliance. The county agency shall be required to submit a corrective action plan to the deleted text begin commissionerdeleted text end new text begin commissionersnew text end within 30 days of receipt of a notice of noncompliance. Failure to submit a corrective action plan or continued deviation from standards of more than ten percent after submission of corrective action plan, will result in denial of funding for each such month during the grant year, or billing of the county agency for program integrity reinvestment project services provided by the deleted text begin commissionerdeleted text end new text begin commissionersnew text end or reallocation of grant funds to other counties. The denial of funding shall apply to the general settlement received by the county agency on a quarterly basis and shall not reduce the grant amount applicable to the program integrity reinvestment project.

Sec. 85.

Minnesota Statutes 2022, section 256.987, subdivision 1, is amended to read:

Subdivision 1.

Electronic benefit transfer (EBT) card.

Cash benefits for the general assistance and Minnesota supplemental aid programs under chapter 256D and programs under chapter 256J must be issued on an EBT card deleted text begin with the name of the head of household printed on the card. The card must include the following statement: "It is unlawful to use this card to purchase tobacco products or alcoholic beverages." This card must be issued within 30 calendar days of an eligibility determination. During the initial 30 calendar days of eligibility, a recipient may have cash benefits issued on an EBT card without a name printed on the card. This card may be the same card on which Supplemental Nutrition Assistance Program (SNAP) benefits are issued and does not need to meet the requirements of this section.deleted text end new text begin that meets the requirements in section 142A.13.new text end

Sec. 86.

Minnesota Statutes 2022, section 256.998, subdivision 7, is amended to read:

Subd. 7.

Access to data.

The commissioner of human services shall retain the information reported to the work reporting system for a period of six months. Data in the work reporting system may be disclosed to new text begin the commissioner of children, youth, and families; new text end the public authority responsible for child support enforcementdeleted text begin ,deleted text end new text begin ;new text end federal agenciesdeleted text begin ,deleted text end new text begin ;new text end state and local agencies of other states for the purposes of enforcing state and federal laws governing child supportdeleted text begin ,deleted text end new text begin ;new text end and agencies responsible for the administration of programs under title IV-A of the Social Security Act, the Department of Employment and Economic Development, and the Department of Labor and Industry.

Sec. 87.

Minnesota Statutes 2022, section 256E.21, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

The definitions in this section apply to deleted text begin Laws 1986, chapter 423, sections 1 to 9deleted text end new text begin sections 142A.41 to 142A.416 and 144.226, subdivision 3new text end .

Sec. 88.

Minnesota Statutes 2022, section 256E.22, subdivision 7, is amended to read:

Subd. 7.

Responsibilities of commissioner.

(a) The commissioner shall:

(1) provide for the coordination and exchange of information on the establishment and maintenance of prevention programs;

(2) develop and publish criteria for receiving trust fund money by prevention programs;

(3) review, approve, and monitor the spending of trust fund money by prevention programs;

(4) provide statewide educational and public informational seminars to develop public awareness on preventing child abuse; to encourage professional persons and groups to recognize instances of child abuse and work to prevent them; to make information on child abuse prevention available to the public and to organizations and agencies; and to encourage the development of prevention programs, including programs that provide support for adolescent parents, fathering education programs, and other prevention activities designed to prevent teen pregnancy;

(5) establish a procedure for an annual, internal evaluation of the functions, responsibilities, and performance of the commissioner in carrying out deleted text begin Laws 1986, chapter 423deleted text end new text begin sections 142A.41 to 142A.416 and 144.226, subdivision 3new text end ;

(6) provide technical assistance to local councils and agencies working in the area of child abuse prevention; and

(7) accept and review grant applications deleted text begin beginning June 1, 1987deleted text end .

(b) The commissioner shall recommend to the governor changes in state programs, statutes, policies, budgets, and standards that will reduce the problems of child abuse, improve coordination among state agencies that provide prevention services, and improve the condition of children, parents, or guardians in need of prevention program services.

Sec. 89.

Minnesota Statutes 2022, section 256E.24, is amended to read:

256E.24 LOCAL CHILD ABUSE PREVENTION COUNCILS.

A child abuse prevention council may be established in any county or group of counties that was eligible to receive funds under Minnesota Statutes 1986, section 145.917 as of January 1, 1986. A council organized in such a county or group of counties shall be authorized by the commissioner to review programs seeking trust fund money on finding that the council meets the criteria in this section:

(a) The council has submitted a plan for the prevention of child abuse that includes a rank ordering of needed programs and services, assesses the need for additional programs or services, and demonstrates that standards and procedures have been established to ensure that funds will be distributed and used according to deleted text begin Laws 1986, chapter 423deleted text end new text begin sections 142A.41 to 142A.416 and 144.226, subdivision 3new text end .

(b) A single-county council shall consist of:

(1) a minimum of nine members with the majority consisting of members from the community-at-large who do not represent service-providing agencies. These members shall represent the demographic and geographic composition of the county and, to the extent possible, represent the following groups: parents, businesses, racial and ethnic minority communities, and the faith communities; and

(2) if necessary, enough additional members with knowledge in the area of child abuse prevention so that a majority of the council is composed of members who do not represent public agencies.

(c) A multicounty council shall be composed of the combined membership of persons in paragraph (b).

Sec. 90.

Minnesota Statutes 2022, section 256E.25, subdivision 5, is amended to read:

Subd. 5.

Local council as recipient of funds.

The commissioner may disburse funds to a local council for community education purposes, or for administrative costs in carrying out deleted text begin Laws 1986, chapter 423deleted text end new text begin sections 142A.41 to 142A.416 and 144.226, subdivision 3new text end , if all criteria and standards are met.

Sec. 91.

Minnesota Statutes 2022, section 256E.25, subdivision 6, is amended to read:

Subd. 6.

Contracts.

The commissioner shall use state or local resources and staff if practicabledeleted text begin ,deleted text end but may enter into contracts with public or nonprofit private agencies to fulfill the requirements of deleted text begin Laws 1986, chapter 423deleted text end new text begin sections 142A.41 to 142A.416 and 144.226, subdivision 3new text end .

Sec. 92.

Minnesota Statutes 2022, section 256E.25, subdivision 7, is amended to read:

Subd. 7.

Rules.

The commissioner may adopt rules to carry out deleted text begin Laws 1986, chapter 423deleted text end new text begin sections 142A.41 to 142A.416 and 144.226, subdivision 3new text end .

Sec. 93.

Minnesota Statutes 2022, section 256E.26, is amended to read:

256E.26 ACCEPTANCE OF FEDERAL FUNDS AND OTHER DONATIONS.

The commissioner may accept federal money and gifts, donations, and bequests for the purposes of deleted text begin Laws 1986, chapter 423deleted text end new text begin sections 142A.41 to 142A.416 and 144.226, subdivision 3new text end . Money so received and proceeds from the sale of promotional items, minus sales promotional costs, must be deposited in the trust fund and must be made available to the commissioner.

Sec. 94.

Minnesota Statutes 2022, section 256E.27, is amended to read:

256E.27 ANNUAL APPROPRIATION.

All earnings from trust fund assets, all sums received under section 256E.26, and 60 percent of the amount collected under section 144.226, subdivision 3, are appropriated annually from the children's trust fund for the prevention of child abuse to the commissioner of human services to carry out sections 256E.20 to 256E.26. deleted text begin In fiscal year 1987 only, the first $75,000 collected under section 144.226, subdivision 3, is appropriated from the children's trust fund for the prevention of child abuse to the commissioner of human services to carry out sections 256E.20 to 256E.26.deleted text end

Sec. 95.

Minnesota Statutes 2022, section 299A.72, is amended to read:

299A.72 JUVENILE JUSTICE PROGRAM.

The governor shall designate the Department of deleted text begin Public Safetydeleted text end new text begin Children, Youth, and Familiesnew text end as the sole agency responsible for supervising the preparation and administration of the state plan for juvenile justice required by the Juvenile Justice and Delinquency Prevention Act of 1974, as amended.

The governor shall designate the Juvenile Justice Advisory Committee as the supervisory board for the Department of deleted text begin Public Safetydeleted text end new text begin Children, Youth, and Familiesnew text end with respect to preparation and administration of the state plan and award of grants.

The governor shall appoint members to the Juvenile Justice Advisory Committee in accordance with the membership requirements of the Juvenile Justice and Delinquency Prevention Act of 1974, as amended. Section 15.059, subdivision 3, governs the compensation of the members.

Sec. 96.

new text begin REVISOR INSTRUCTION. new text end

new text begin The revisor of statutes must renumber sections or subdivisions in Column A as Column B. new text end

new text begin Column A new text end new text begin Column B new text end
new text begin 256.01, subdivision 12 new text end new text begin 142A.03, subdivision 7 new text end
new text begin 256.01, subdivision 12a new text end new text begin 142A.03, subdivision 8 new text end
new text begin 256.01, subdivision 15 new text end new text begin 142A.03, subdivision 10 new text end
new text begin 256.01, subdivision 36 new text end new text begin 142A.03, subdivision 22 new text end
new text begin 256.0112, subdivision 10 new text end new text begin 142A.07, subdivision 8 new text end
new text begin 256.019, subdivision 2 new text end new text begin 142A.28, subdivision 2 new text end
new text begin 256.4793 new text end new text begin 142A.45 new text end
new text begin 256.4794 new text end new text begin 142A.451 new text end
new text begin 256.82 new text end new text begin 142A.418 new text end
new text begin 256.9831 new text end new text begin 142A.13, subdivision 14 new text end
new text begin 256.9862, subdivision 1 new text end new text begin 142A.13, subdivision 10 new text end
new text begin 256.9862, subdivision 2 new text end new text begin 142A.13, subdivision 11 new text end
new text begin 256.9863 new text end new text begin 142A.13, subdivision 5 new text end
new text begin 256.9865, subdivision 1 new text end new text begin 142A.13, subdivision 6 new text end
new text begin 256.9865, subdivision 2 new text end new text begin 142A.13, subdivision 7 new text end
new text begin 256.9865, subdivision 3 new text end new text begin 142A.13, subdivision 8 new text end
new text begin 256.9865, subdivision 4 new text end new text begin 142A.13, subdivision 9 new text end
new text begin 256.987, subdivision 2 new text end new text begin 142A.13, subdivision 2 new text end
new text begin 256.987, subdivision 3 new text end new text begin 142A.13, subdivision 3 new text end
new text begin 256.987, subdivision 4 new text end new text begin 142A.13, subdivision 4 new text end
new text begin 256.9871 new text end new text begin 142A.13, subdivision 12 new text end
new text begin 256.9872 new text end new text begin 142A.13, subdivision 13 new text end
new text begin 256.997 new text end new text begin 142A.30 new text end
new text begin 256.998 new text end new text begin 142A.29 new text end
new text begin 256B.06, subdivision 6 new text end new text begin 142A.40 new text end
new text begin 256E.20 new text end new text begin 142A.41 new text end
new text begin 256E.21 new text end new text begin 142A.411 new text end
new text begin 256E.22 new text end new text begin 142A.412 new text end
new text begin 256E.24 new text end new text begin 142A.413 new text end
new text begin 256E.25 new text end new text begin 142A.414 new text end
new text begin 256E.26 new text end new text begin 142A.415 new text end
new text begin 256E.27 new text end new text begin 142A.416 new text end
new text begin 256E.28 new text end new text begin 142A.417 new text end
new text begin 256N.001 new text end new text begin 142A.60 new text end
new text begin 256N.01 new text end new text begin 142A.601 new text end
new text begin 256N.02 new text end new text begin 142A.602 new text end
new text begin 256N.20 new text end new text begin 142A.603 new text end
new text begin 256N.21 new text end new text begin 142A.604 new text end
new text begin 256N.22 new text end new text begin 142A.605 new text end
new text begin 256N.23 new text end new text begin 142A.606 new text end
new text begin 256N.24 new text end new text begin 142A.607 new text end
new text begin 256N.25 new text end new text begin 142A.608 new text end
new text begin 256N.26 new text end new text begin 142A.609 new text end
new text begin 256N.261 new text end new text begin 142A.61 new text end
new text begin 256N.27 new text end new text begin 142A.611 new text end
new text begin 256N.28 new text end new text begin 142A.612 new text end
new text begin 257.175 new text end new text begin 142A.03, subdivision 32 new text end
new text begin 257.33, subdivision 1 new text end new text begin 142A.03, subdivision 33 new text end
new text begin 257.33, subdivision 2 new text end new text begin 142A.03, subdivision 34 new text end
new text begin 260.014 new text end new text begin 142A.452 new text end
new text begin 299A.72 new text end new text begin 142A.75 new text end
new text begin 299A.73 new text end new text begin 142A.43 new text end
new text begin 299A.95 new text end new text begin 142A.76 new text end

new text begin The revisor of statutes must correct any statutory cross-references consistent with this renumbering. new text end

Sec. 97.

new text begin REPEALER. new text end

new text begin Minnesota Statutes 2022, sections 256.01, subdivision 30; and 256.9831, subdivisions 2 and 3, new text end new text begin are repealed. new text end

ARTICLE 2

CHAPTER 142B; LICENSING

Section 1.

new text begin [142B.01] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The terms used in this chapter have the meanings given them in this section. new text end

new text begin Subd. 2. new text end

new text begin Annual or annually. new text end

new text begin With the exception of subdivision 3, "annual" or "annually" means prior to or within the same month of the subsequent calendar year. new text end

new text begin Subd. 3. new text end

new text begin Applicant. new text end

new text begin "Applicant" means an individual, organization, or government entity, as defined in section 13.02, subdivision 7a, that is subject to licensure under this chapter and that has applied for but not yet been granted a license under this chapter. new text end

new text begin Subd. 4. 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 children, youth, and families on all matters related to this chapter and on whom service of all notices and orders must be made pursuant to section 142B.10, subdivision 1. new text end

new text begin Subd. 5. new text end

new text begin Child. new text end

new text begin "Child" means a person who has not reached age 18. new text end

new text begin Subd. 6. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of children, youth, and families or the commissioner's designated representative including county agencies and private agencies. new text end

new text begin Subd. 7. new text end

new text begin Controlling individual. new text end

new text begin (a) "Controlling individual" means an owner of a program or service provider licensed under this chapter and the following individuals, if applicable: new text end

new text begin (1) each officer of the organization, including the chief executive officer and chief financial officer; new text end

new text begin (2) the individual designated as the authorized agent under section 142B.10, subdivision 1, paragraph (b); new text end

new text begin (3) the individual designated as the compliance officer under section 256B.04, subdivision 21, paragraph (g); new text end

new text begin (4) each managerial official whose responsibilities include the direction of the management or policies of a program; new text end

new text begin (5) the individual designated as the primary provider of care for a special family child care program under section 142B.41, subdivision 4, paragraph (d); and new text end

new text begin (6) the president and treasurer of the board of directors of a nonprofit corporation. new text end

new text begin (b) Controlling individual does not include: new text end

new text begin (1) a bank, savings bank, trust company, savings association, credit union, industrial loan and thrift company, investment banking firm, or insurance company unless the entity operates a program directly or through a subsidiary; new text end

new text begin (2) an individual who is a state or federal official, or state or federal employee, or a member or employee of the governing body of a political subdivision of the state or federal government that operates one or more programs, unless the individual is also an officer, owner, or managerial official of the program, receives remuneration from the program, or owns any of the beneficial interests not excluded in this subdivision; new text end

new text begin (3) an individual who owns less than five percent of the outstanding common shares of a corporation: new text end

new text begin (i) whose securities are exempt under section 80A.45, clause (6); or new text end

new text begin (ii) whose transactions are exempt under section 80A.46, clause (2); new text end

new text begin (4) an individual who is a member of an organization exempt from taxation under section 290.05, unless the individual is also an officer, owner, or managerial official of the program or owns any of the beneficial interests not excluded in this subdivision. This clause does not exclude from the definition of controlling individual an organization that is exempt from taxation; or new text end

new text begin (5) an employee stock ownership plan trust, or a participant or board member of an employee stock ownership plan, unless the participant or board member is a controlling individual according to paragraph (a). new text end

new text begin (c) For purposes of this subdivision, "managerial official" means an individual who has the decision-making authority related to the operation of the program, and the responsibility for the ongoing management of or direction of the policies, services, or employees of the program. A site director who has no ownership interest in the program is not considered to be a managerial official for purposes of this definition. new text end

new text begin Subd. 8. new text end

new text begin County agency. new text end

new text begin "County agency" means the agency designated by the county board of commissioners, human service boards, local social services agencies or multicounty local social services agencies, or departments where those have been established under the law. new text end

new text begin Subd. 9. new text end

new text begin Cradleboard. new text end

new text begin "Cradleboard" means a board or frame on which an infant is secured using blankets or other material, such as fabric or leather sides, and laces and often has a frame extending to protect the infant's head. The infant is always placed with the infant's head facing outward, and the infant remains supervised in the cradleboard while sleeping or being carried. new text end

new text begin Subd. 10. new text end

new text begin Foster family setting. new text end

new text begin "Foster family setting" has the meaning given in Minnesota Rules, part 2960.3010, subpart 23, and includes settings licensed by the commissioner of children, youth, and families or the commissioner of corrections. new text end

new text begin Subd. 11. new text end

new text begin Foster residence setting. new text end

new text begin "Foster residence setting" has the meaning given in Minnesota Rules, part 2960.3010, subpart 26, and includes settings licensed by the commissioner of children, youth, and families or the commissioner of corrections. new text end

new text begin Subd. 12. new text end

new text begin Individual who is related. new text end

new text begin "Individual who is related" means a spouse, a parent, a birth or adopted child or stepchild, a stepparent, a stepbrother, a stepsister, a niece, a nephew, an adoptive parent, a grandparent, a sibling, an aunt, an uncle, or a legal guardian. new text end

new text begin Subd. 13. new text end

new text begin License. new text end

new text begin "License" means a certificate issued by the commissioner under section 142B.10 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 end

new text begin Subd. 14. new text end

new text begin License holder. new text end

new text begin "License holder" means an individual, organization, or government entity that is legally responsible for the operation of the program or service, and has been granted a license by the commissioner under this chapter and the rules of the commissioner. new text end

new text begin Subd. 15. new text end

new text begin Nonresidential program. new text end

new text begin "Nonresidential program" means care, supervision, rehabilitation, training, or habilitation of a child provided outside the child's home and provided for fewer than 24 hours a day, including child care programs. new text end

new text begin Subd. 16. new text end

new text begin Owner. new text end

new text begin "Owner" means an individual or organization that has a direct or indirect ownership interest of five percent or more in a program licensed under this chapter. For purposes of this subdivision, "direct ownership interest" means the possession of equity in capital, stock, or profits of an organization, and "indirect ownership interest" means a direct ownership interest in an entity that has a direct or indirect ownership interest in a licensed program. For purposes of this chapter, "owner of an employee stock ownership plan" means the president and treasurer of the entity. A government entity or nonprofit corporation that is issued a license under this chapter shall be designated the owner. new text end

new text begin Subd. 17. 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 Subd. 18. new text end

new text begin Residential program. new text end

new text begin "Residential program" means a program that provides 24-hour-a-day care, supervision, food, or lodging to a child or youth outside of the child or youth's home, including foster care. new text end

new text begin Subd. 19. new text end

new text begin Respite care services. new text end

new text begin "Respite care services" means temporary services provided to a person due to the absence or need for relief of the primary caregiver, the person's family member, or legal representative who is the primary caregiver and principally responsible for the care and supervision of the person. Respite care services are those that provide the level of supervision and care that is necessary to ensure the health and safety of the person. Respite care services do not include services that are specifically directed toward the training and habilitation of the person. new text end

new text begin Subd. 20. new text end

new text begin Youth. new text end

new text begin "Youth" means a child as defined in section 260C.007, subdivision 4, and includes individuals under 21 years of age who are in foster care pursuant to section 260C.451. new text end

Sec. 2.

new text begin [142B.02] RULES. new text end

new text begin Subdivision 1. new text end

new text begin Commissioner's authority. new text end

new text begin The commissioner shall adopt rules under chapter 14 to govern the operation, maintenance, and licensure of programs subject to licensure under this chapter. The commissioner shall not adopt any rules that are inconsistent with or duplicative of existing state or federal regulations. Nothing in this subdivision shall be construed to prohibit the commissioner from incorporating existing state or federal regulations or accreditation standards by reference. new text end

new text begin Subd. 2. new text end

new text begin Standards and regulatory methods. new text end

new text begin This subdivision applies to rules governing this chapter. As appropriate for each type of license: new text end

new text begin (a) The commissioner shall give preference in rule to standards that describe program outcomes and the practices that have been shown to result in the desired program outcomes. new text end

new text begin (b) The rules may include model program standards for each type of program licensed by the commissioner. new text end

new text begin (c) The rules shall include basic licensing standards governing licensure of each type of program licensed by the commissioner. The basic licensing standards must be met by all applicants and license holders. Basic licensing standards must include, but are not limited to: new text end

new text begin (1) standards for adequate staff that take into account the age distribution and severity of the disability of persons served by the program; new text end

new text begin (2) safety standards that take into account the size and conditions of the physical plant and studies of fire safety including studies of the interaction between fire detection factors, fire spread factors, and evacuation factors in case of a fire; new text end

new text begin (3) standards for program services that describe, when appropriate, adequate levels of shelter, nutrition, planned activities, materials, and qualifications of individuals responsible for administering and delivering program services; new text end

new text begin (4) standards that describe the characteristics of the settings where program services are to be delivered; and new text end

new text begin (5) health and sanitation standards. new text end

new text begin Subd. 3. new text end

new text begin Reduction of fees. new text end

new text begin The commissioner may adopt rules under subdivision 1 to provide for the reduction of fees established under section 142B.12 when a license holder substantially exceeds the basic standards for licensure. new text end

new text begin Subd. 4. new text end

new text begin Evaluation of rules. new text end

new text begin The commissioner shall evaluate the effects of the rules within three years after the date of adoption and at least once every five years thereafter. The evaluation must include an assessment of any discrepancies between the actual and intended effects of the rules, identification of necessary revisions, if any, and a discussion of the rules' effect on the availability and quality of licensed programs. The commissioner shall consider the results of the evaluation in amending and writing rules. new text end

new text begin Subd. 5. new text end

new text begin Other duties of commissioner. new text end

new text begin The commissioner shall: new text end

new text begin (1) summarize the rules in language understandable to the general public and inform license holders and applicants where they may obtain a copy of the rules and the summary; new text end

new text begin (2) develop and provide each applicant with information describing the services offered to applicants by the commissioner and explaining the penalties for operating an unlicensed program or failing to fully comply with the commissioner's correction orders or applicable laws or rules; new text end

new text begin (3) upon request, interpret rules for applicants and license holders; and new text end

new text begin (4) take measures to ensure that rules are enforced uniformly throughout the state. new text end

new text begin Subd. 6. new text end

new text begin Consultation with affected parties. new text end

new text begin In developing rules, the commissioner shall request and receive consultation from: other state departments and agencies; counties and other affected political subdivisions that reflect the diversity of political subdivisions affected by the rule; persons and relatives of persons using the program governed by the rule; advocacy groups; and representatives of license holders affected by the rule. In choosing parties for consultation, the commissioner shall choose individuals and representatives of groups that reflect a cross section of urban, suburban, and rural areas of the state. new text end

new text begin Subd. 7. new text end

new text begin Regulatory methods. new text end

new text begin (a) Where appropriate and feasible, the commissioner shall identify and implement alternative methods of regulation and enforcement to the extent authorized in this subdivision. These methods shall include: new text end

new text begin (1) expansion of the types and categories of licenses that may be granted; new text end

new text begin (2) when the standards of another state or federal governmental agency or an independent accreditation body have been shown to require the same standards, methods, or alternative methods to achieve substantially the same intended outcomes as the licensing standards, the commissioner shall consider compliance with the governmental or accreditation standards to be equivalent to partial compliance with the licensing standards; and new text end

new text begin (3) use of an abbreviated inspection that employs key standards that have been shown to predict full compliance with the rules. new text end

new text begin (b) If the commissioner accepts accreditation as documentation of compliance with a licensing standard under paragraph (a), the commissioner shall continue to investigate complaints related to noncompliance with all licensing standards. The commissioner may take a licensing action for noncompliance under this chapter and shall recognize all existing appeal rights regarding any licensing actions taken under this chapter. new text end

new text begin (c) The commissioner shall work with the commissioners of human services, health, public safety, administration, and education in consolidating duplicative licensing and certification rules and standards if the commissioner determines that consolidation is administratively feasible, would significantly reduce the cost of licensing, and would not reduce the protection given to persons receiving services in licensed programs. Where administratively feasible and appropriate, the commissioner shall work with the commissioners of human services, health, public safety, administration, and education in conducting joint agency inspections of programs. new text end

new text begin (d) The commissioner shall work with the commissioners of human services, health, public safety, administration, and education in establishing a single point of application for applicants who are required to obtain concurrent licensure from more than one of the commissioners listed in this paragraph. new text end

new text begin (e) Unless otherwise specified in statute, the commissioner may conduct routine inspections biennially. new text end

new text begin (f) For a licensed child care center, the commissioner shall conduct one unannounced licensing inspection at least once per calendar year. new text end

new text begin Subd. 8. new text end

new text begin Interpretive guidelines; authority. new text end

new text begin The commissioner of children, youth, and families may develop and publish interpretive guidelines. new text end

new text begin Subd. 9. new text end

new text begin Effect of interpretive guidelines. new text end

new text begin Interpretive guidelines do not have the force and effect of law and have no precedential effect, but may be relied on by consumers, providers of service, county agencies, the Department of Children, Youth, and Families, and others concerned until revoked or modified. A guideline may be expressly revoked or modified by the commissioner, by the issuance of another interpretive guideline, but may not be revoked or modified retroactively to the detriment of consumers, providers of service, county agencies, the Department of Children, Youth, and Families, or others concerned. A change in the law or an interpretation of the law occurring after the interpretive guidelines are issued, whether in the form of a statute, court decision, administrative ruling, or subsequent interpretive guideline, results in the revocation or modification of the previously adopted guidelines to the extent that the change affects the guidelines. new text end

new text begin Subd. 10. new text end

new text begin Issuance; discretion of commissioner. new text end

new text begin The issuance of interpretive guidelines is at the discretion of the commissioner of children, youth, and families. new text end

Sec. 3.

new text begin [142B.03] SYSTEMS AND RECORDS. new text end

new text begin Subdivision 1. new text end

new text begin Record retention; license holder requirements. new text end

new text begin (a) A license holder must maintain and store records in a manner that will allow for review by the commissioner as identified in section 142B.10, subdivision 5. The following records must be maintained as specified and in accordance with applicable state or federal law, regulation, or rule: new text end

new text begin (1) service recipient records, including verification of service delivery, must be maintained for a minimum of five years following discharge or termination of service; new text end

new text begin (2) personnel records must be maintained for a minimum of five years following termination of employment; and new text end

new text begin (3) program administration and financial records must be maintained for a minimum of five years from the date the program closes. new text end

new text begin (b) A license holder who ceases to provide services must maintain all records related to the licensed program for five years from the date the program closes. The license holder must notify the commissioner of the location where the licensing records will be stored and the name of the person responsible for maintaining the stored records. new text end

new text begin (c) If the ownership of a licensed program or service changes, the transferor, unless otherwise provided by law or written agreement with the transferee, is responsible for maintaining, preserving, and making available to the commissioner on demand the license records generated before the date of the transfer. new text end

new text begin (d) In the event of a contested case, the license holder must retain records as required in paragraph (a) or until the final agency decision is issued and the conclusion of any related appeal, whichever period is longer. new text end

new text begin Subd. 2. new text end

new text begin Electronic records; license holder use. new text end

new text begin A license holder's use of electronic record keeping or electronic signatures must meet the following requirements: new text end

new text begin (1) use of electronic record keeping or electronic signatures does not alter the license holder's obligations under state or federal law, regulation, or rule; new text end

new text begin (2) the license holder must ensure that the use of electronic record keeping does not limit the commissioner's access to records as specified under section 142B.10, subdivision 5; new text end

new text begin (3) upon request, the license holder must assist the commissioner in accessing and copying all records, including encrypted records and electronic signatures; and new text end

new text begin (4) the license holder must establish a mechanism or procedure to ensure that: new text end

new text begin (i) the act of creating the electronic record or signature is attributable to the license holder, according to section 325L.09; new text end

new text begin (ii) the electronic records and signatures are maintained in a form capable of being retained and accurately reproduced; new text end

new text begin (iii) the commissioner has access to information that establishes the date and time that data and signatures were entered into the electronic record; and new text end

new text begin (iv) the license holder's use of electronic record keeping or electronic signatures does not compromise the security of the records. new text end

new text begin Subd. 3. new text end

new text begin First date of working in a setting; documentation requirements. new text end

new text begin Foster residence setting license holders must document the first date that a person who is a background study subject begins working in the license holder's setting. If the license holder does not maintain documentation of each background study subject's first date of working in the setting in the license holder's personnel files, the license holder must provide documentation to the commissioner that contains the first date that each background study subject began working in the license holder's program upon the commissioner's request. new text end

new text begin Subd. 4. new text end

new text begin First date of direct contact; documentation requirements. new text end

new text begin Except for family child care and family foster care for children, license holders must document the first date that a background study subject has direct contact, as defined in section 245C.02, subdivision 11, with a person served by the license holder's program. Unless this chapter otherwise requires, if the license holder does not maintain the documentation required by this subdivision in the license holder's personnel files, the license holder must provide the documentation to the commissioner upon the commissioner's request. new text end

Sec. 4.

new text begin [142B.05] WHO MUST BE LICENSED. new text end

new text begin Subdivision 1. new text end

new text begin License required. new text end

new text begin Unless licensed by the commissioner under this chapter, an individual, organization, or government entity must not: new text end

new text begin (1) operate a residential or a nonresidential program; new text end

new text begin (2) receive a child or youth for care, supervision, or placement in foster care or adoption; new text end

new text begin (3) help plan the placement of a child or youth 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 new text end

new text begin (4) advertise a residential or nonresidential program. new text end

new text begin Subd. 2. new text end

new text begin Exclusion from licensure. new text end

new text begin (a) This chapter does not apply to: new text end

new text begin (1) residential or nonresidential programs that are provided to a person by an individual who is related unless the residential program is a child foster care placement made by a local social services agency or a licensed child-placing agency, except as provided in subdivision 3; new text end

new text begin (2) nonresidential programs that are provided by an unrelated individual to persons from a single related family; new text end

new text begin (3) programs operated by a public school for children 33 months or older; new text end

new text begin (4) nonresidential programs primarily for children that provide care or supervision for periods of less than three hours a day while the child's parent or legal guardian is in the same building as the nonresidential program or present within another building that is directly contiguous to the building in which the nonresidential program is located; new text end

new text begin (5) homes providing programs for persons placed by a county or a licensed agency for legal adoption, unless the adoption is not completed within two years; new text end

new text begin (6) programs licensed or certified by the commissioner of corrections; new text end

new text begin (7) recreation programs for children or adults that are operated or approved by a park and recreation board whose primary purpose is to provide social and recreational activities; new text end

new text begin (8) programs operated by a school as defined in section 120A.22, subdivision 4; YMCA as defined in section 315.44; YWCA as defined in section 315.44; or JCC as defined in section 315.51, whose primary purpose is to provide child care or services to school-age children; new text end

new text begin (9) Head Start nonresidential programs that operate for less than 45 days in each calendar year; new text end

new text begin (10) programs for children such as scouting, boys clubs, girls clubs, and sports and art programs, and nonresidential programs for children provided for a cumulative total of less than 30 days in any 12-month period; new text end

new text begin (11) the religious instruction of school-age children; Sabbath or Sunday schools; or the congregate care of children by a church, congregation, or religious society during the period used by the church, congregation, or religious society for its regular worship; new text end

new text begin (12) camps licensed by the commissioner of health under Minnesota Rules, chapter 4630; new text end

new text begin (13) residential programs serving school-age children whose sole purpose is cultural or educational exchange, until the commissioner adopts appropriate rules; new text end

new text begin (14) community support services programs as defined in section 245.462, subdivision 6, and family community support services as defined in section 245.4871, subdivision 17; new text end

new text begin (15) the placement of a child by a birth parent or legal guardian in a preadoptive home for purposes of adoption as authorized by section 259.47; new text end

new text begin (16) a program serving only children who are age 33 months or older, that is operated by a nonpublic school, for no more than four hours per day per child, with no more than 20 children at any one time, and that is accredited by: new text end

new text begin (i) an accrediting agency that is formally recognized by the commissioner of education as a nonpublic school accrediting organization; or new text end

new text begin (ii) an accrediting agency that requires background studies and that receives and investigates complaints about the services provided. new text end

new text begin A program that asserts its exemption from licensure under item (ii) shall, upon request from the commissioner, provide the commissioner with documentation from the accrediting agency that verifies that the accreditation is current, that the accrediting agency investigates complaints about services, and that the accrediting agency's standards require background studies on all people providing direct contact services; new text end

new text begin (17) a program operated by a nonprofit organization incorporated in Minnesota or another state that serves youth in kindergarten through grade 12; provides structured, supervised youth development activities; and has learning opportunities take place before or after school, on weekends, or during the summer or other seasonal breaks in the school calendar. A program exempt under this clause is not eligible for child care assistance under chapter 119B. A program exempt under this clause must: new text end

new text begin (i) have a director or supervisor on site who is responsible for overseeing written policies relating to the management and control of the daily activities of the program, ensuring the health and safety of program participants, and supervising staff and volunteers; new text end

new text begin (ii) have obtained written consent from a parent or legal guardian for each youth participating in activities at the site; and new text end

new text begin (iii) have provided written notice to a parent or legal guardian for each youth at the site that the program is not licensed or supervised by the state of Minnesota and is not eligible to receive child care assistance payments; new text end

new text begin (18) Head Start programs that serve only children who are at least three years old but not yet six years old; or new text end

new text begin (19) programs licensed by the commissioner of human services under chapter 245A. new text end

new text begin (b) For purposes of paragraph (a), clause (4), a building is directly contiguous to a building in which a nonresidential program is located if it shares a common wall with the building in which the nonresidential program is located or is attached to that building by skyway, tunnel, atrium, or common roof. new text end

new text begin (c) Nothing in this chapter shall be construed to require licensure for any services provided and funded according to an approved federal waiver plan where licensure is specifically identified as not being a condition for the services and funding. new text end

new text begin Subd. 3. new text end

new text begin Unlicensed programs. new text end

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

new text begin (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, organization, or government entity has: new text end

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

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

new text begin (3) continued to operate without a license after a temporary immediate suspension of a license has been issued under this chapter. new text end

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

new text begin Subd. 4. new text end

new text begin Licensing moratorium. new text end

new text begin (a) The commissioner shall not issue an initial license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, under this chapter for a physical location that will not be the primary residence of the license holder for the entire period of licensure. If a family child foster care home license is issued during this moratorium and the license holder changes the license holder's primary residence away from the physical location of the foster care license, the commissioner shall revoke the license according to section 142B.18. When approving an exception under this paragraph, the commissioner shall consider the resource need determination process in paragraph (e), the availability of foster care licensed beds in the geographic area in which the licensee seeks to operate, the results of a person's choices during their annual assessment and service plan review, and the recommendation of the local county board. The determination by the commissioner is final and not subject to appeal. Exceptions to the moratorium include: new text end

new text begin (1) foster care licenses replacing foster care licenses in existence on May 15, 2009, and determined to be needed by the commissioner under paragraph (b); and new text end

new text begin (2) new foster care licenses determined to be needed by the commissioner under paragraph (b) for persons requiring hospital-level care. new text end

new text begin (b) The commissioner shall determine the need for newly licensed foster care homes. As part of the determination, the commissioner shall consider the availability of foster care capacity in the area in which the licensee seeks to operate, and the recommendation of the local county board. The determination by the commissioner must be final. A determination of need is not required for a change in ownership at the same address. new text end

new text begin (c) At the time of application and reapplication for licensure, the applicant and the license holder that are subject to the moratorium or an exclusion established in paragraph (a) are required to inform the commissioner whether the physical location where the foster care will be provided is or will be the primary residence of the license holder for the entire period of licensure. If the primary residence of the applicant or license holder changes, the applicant or license holder must notify the commissioner immediately. The commissioner shall print on the foster care license certificate whether or not the physical location is the primary residence of the license holder. new text end

new text begin (d) License holders of foster care homes identified under paragraph (c) that are not the primary residence of the license holder and that also provide services in the foster care home that are covered by a federally approved home and community-based services waiver, as authorized under chapter 256S or section 256B.092 or 256B.49, must inform the children, youth, and families licensing division that the license holder provides or intends to provide these waiver-funded services. new text end

new text begin (e) The commissioner may adjust capacity to address needs identified in section 144A.351. Under this authority, the commissioner may approve new licensed settings or delicense existing settings. Delicensing of settings will be accomplished through a process identified in section 256B.493. new text end

Sec. 5.

new text begin [142B.10] APPLICATION PROCEDURES. new text end

new text begin Subdivision 1. new text end

new text begin Application for licensure. new text end

new text begin (a) An individual, organization, or government entity that is subject to licensure under section 142B.05 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 30 miles of the Minnesota border. 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 142B.11. new text end

new text begin 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 required information. new text end

new text begin 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 142B.11. new text end

new text begin (b) An application for licensure must identify all controlling individuals as defined in section 142B.01, subdivision 8, and must designate one individual to be the authorized agent. The application must be signed by the authorized agent and must include the authorized agent's first, middle, and last name; mailing address; and email address. By submitting an application for licensure, the authorized agent consents to electronic communication with the commissioner throughout the application process. The authorized agent must be authorized to accept service on behalf of all of the controlling individuals. 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. Service on the authorized agent is service on all of the controlling individuals. It is not a defense to any action arising under this chapter that service was not made on each controlling individual. The designation of a controlling individual as the authorized agent under this paragraph does not affect the legal responsibility of any other controlling individual under this chapter. new text end

new text begin (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. new text end

new text begin (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. new text end

new text begin (e) 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. Upon implementation of the provider licensing and reporting hub, applicants and license holders must use the hub in the manner prescribed by the commissioner. 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. new text end

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

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

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

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

new text begin (g) When an applicant is an organization, the applicant must provide: new text end

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

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

new text begin (3) the 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 142B.01, subdivision 8, and the date that the background study was initiated by the applicant for each controlling individual; new 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

new text begin (i) At the time of application for licensure or renewal of a license under this chapter, 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: new text end

new text begin (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 new text end

new text begin (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: new text end

new text begin (i) a correction order or a conditional license under section 142B.16, or sanctions under section 142B.18; new text end

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

new text begin (iii) recovery of payments made for the service; new text end

new text begin (iv) disenrollment in the public payment program; or new text end

new text begin (v) other administrative, civil, or criminal penalties as provided by law. new text end

new text begin Subd. 2. new text end

new text begin Notification of affected municipality. new text end

new text begin The commissioner must not issue a license under this chapter 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 142B.40 and 142B.41. The commissioner may provide notice through electronic communication. The notification must be given before the first issuance of a license under this chapter 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 end

new text begin Subd. 3. new text end

new text begin Meeting fire and safety codes. new text end

new text begin An applicant or license holder under sections 142B.01 to 142B.50 must document compliance with applicable building codes, fire and safety codes, health rules, and zoning ordinances, or document that an appropriate waiver has been granted. new text end

new text begin Subd. 4. new text end

new text begin Background study. new text end

new text begin Individuals and organizations that are required under section 245C.03 to have or initiate background studies shall comply with the requirements in chapter 245C. new text end

new text begin Subd. 5. new text end

new text begin Notice of background study results; determination of risk of harm. new text end

new text begin The notice of background study results and the commissioner's determination of the background subject's risk of harm shall be governed according to sections 245C.16 and 245C.17. new text end

new text begin Subd. 6. new text end

new text begin Reconsideration of disqualification. new text end

new text begin Reconsideration of a disqualification shall be governed according to sections 245C.21 to 245C.27. new text end

new text begin Subd. 7. new text end

new text begin Contested case. new text end

new text begin Contested case hearing rights related to a disqualification shall be governed according to section 245C.28. new text end

new text begin Subd. 8. new text end

new text begin Disqualification. new text end

new text begin Disqualification shall be governed according to sections 245C.14 and 245C.15. new text end

new text begin Subd. 9. new text end

new text begin Variance for a disqualified individual. new text end

new text begin A variance for a disqualified individual shall be governed according to section 245C.30. new text end

new text begin Subd. 10. new text end

new text begin Conclusive determinations or dispositions. new text end

new text begin Whether a disqualification determination or maltreatment determination or disposition is deemed conclusive shall be governed according to section 245C.29. new text end

new text begin Subd. 11. new text end

new text begin Inspections; waiver. new text end

new text begin (a) Before issuing a license under this chapter, the commissioner shall conduct an inspection of the program. The inspection must include but is not limited to: new text end

new text begin (1) an inspection of the physical plant; new text end

new text begin (2) an inspection of records and documents; new text end

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

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

new text begin (b) The observation in paragraph (a), clause (3), is not required prior to issuing a license under subdivision 14. If the commissioner issues a license under this chapter, these requirements must be completed within one year after the issuance of the license. new text end

new text begin (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 or potential violations of law or rule observed during the inspection and offer technical assistance on how to comply with applicable laws and rules. 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

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

new text begin (f) 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 end

new text begin Subd. 12. new text end

new text begin Commissioner's right of access. new text end

new text begin (a) When the commissioner is exercising the powers conferred by this chapter, section 626.557, and chapter 260E, the commissioner must be given access to: new text end

new text begin (1) the physical plant and grounds where the program is provided; new text end

new text begin (2) documents and records, including records maintained in electronic format; new text end

new text begin (3) persons served by the program; and new text end

new text begin (4) staff and personnel records of current and former staff whenever the program is in operation and the information is relevant to inspections or investigations conducted by the commissioner. Upon request, the license holder must provide the commissioner verification of documentation of staff work experience, training, or educational requirements. new text end

new text begin The commissioner must be given access without prior notice and as often as the commissioner considers necessary if the commissioner is investigating alleged maltreatment, conducting a licensing inspection, or investigating an alleged violation of applicable laws or rules. In conducting inspections, the commissioner may request and shall receive assistance from other state, county, and municipal governmental agencies and departments. The applicant or license holder shall allow the commissioner to photocopy, photograph, and make audio and video recordings during the inspection of the program at the commissioner's expense. The commissioner shall obtain a court order or the consent of the subject of the records or the parents or legal guardian of the subject before photocopying hospital medical records. new text end

new text begin (b) Persons served by the program have the right to refuse to consent to be interviewed, photographed, or audio or video recorded. Failure or refusal of an applicant or license holder to fully comply with this subdivision is reasonable cause for the commissioner to deny the application or immediately suspend or revoke the license. new text end

new text begin Subd. 13. new text end

new text begin Commissioner's evaluation. new text end

new text begin (a) 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 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 facts, conditions, or circumstances concerning: new text end

new text begin (1) the program's operation; new text end

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

new text begin (3) available evaluations of the program by persons receiving services; new text end

new text begin (4) information about the qualifications of the personnel employed by the applicant or license holder; and new 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) The commissioner shall review the results of the study required in subdivision 4 and determine whether the commissioner of human services correctly determined whether a risk of harm to the person served by the program exists under the standards set forth in chapter 245C. new text end

new text begin Subd. 14. new text end

new text begin Grant of license; license extension. new text end

new text begin (a) If the commissioner determines that the program complies with all applicable rules and laws, the commissioner shall issue a license consistent with this section or, if applicable, a temporary change of ownership license under section 142B.11. At minimum, the license shall state: new text end

new text begin (1) the name of the license holder; new text end

new text begin (2) the address of the program; new text end

new text begin (3) the effective date and expiration date of the license; new text end

new text begin (4) the type of license; new text end

new text begin (5) the maximum number and ages of persons that may receive services from the program; and new text end

new text begin (6) any special conditions of licensure. new text end

new text begin (b) The commissioner may issue a license for a period not to exceed two years if: new text end

new text begin (1) the commissioner is unable to conduct the observation required by subdivision 11, paragraph (a), clause (3), because the program is not yet operational; new text end

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

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

new text begin (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. new text end

new text begin (d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a license if the applicant, license holder, or an affiliated controlling individual has: new text end

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

new text begin (2) been denied a license under this chapter or chapter 245A within the past two years; new text end

new text begin (3) had a license issued under this chapter or chapter 245A revoked within the past five years; or new text end

new text begin (4) failed to submit the information required of an applicant under subdivision 1, paragraph (f), (g), or (h), after being requested by the commissioner. new text end

new text begin When a license issued under this chapter or chapter 245A is revoked, the license holder and each affiliated controlling individual with a revoked license may not hold any license under chapter 142B for five years following the revocation, and other licenses held by the applicant or license holder or licenses affiliated with each controlling individual shall also be revoked. new text end

new text begin (e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license affiliated with a license holder or controlling individual that had a license revoked within the past five years if the commissioner determines that (1) the license holder or controlling individual is operating the program in substantial compliance with applicable laws and rules and (2) the program's continued operation is in the best interests of the community being served. new text end

new text begin (f) Notwithstanding paragraph (d), the commissioner may issue a new license in response to an application that is affiliated with an applicant, license holder, or controlling individual that had an application denied within the past two years or a license revoked within the past five years if the commissioner determines that (1) the applicant or controlling individual has operated one or more programs in substantial compliance with applicable laws and rules and (2) the program's operation would be in the best interests of the community to be served. new text end

new text begin (g) In determining whether a program's operation would be in the best interests of the community to be served, the commissioner shall consider factors such as the number of persons served, the availability of alternative services available in the surrounding community, the management structure of the program, whether the program provides culturally specific services, and other relevant factors. new text end

new text begin (h) The commissioner shall not issue or reissue a license under this chapter if an individual living in the household where the 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. new text end

new text begin (i) Pursuant to section 142B.18, subdivision 1, paragraph (b), when a license issued under this chapter 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. new text end

new text begin (j) Notwithstanding paragraph (i), 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. new text end

new text begin (k) 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. new text end

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

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

new text begin (n) The commissioner of children, youth, and families shall coordinate and share data with the commissioner of human services to enforce this section. new text end

new text begin Subd. 15. 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 14, 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 142B.01, subdivision 5; new text end

new text begin (2) to the license holder's controlling individual as defined in section 142B.01, subdivision 8; 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 (e) Upon implementation of the provider licensing and reporting hub, license holders must enter and update information in the hub in a manner prescribed by the commissioner. new text end

new text begin Subd. 16. new text end

new text begin Variances. new text end

new text begin (a) The commissioner may grant variances to rules that do not affect the health or safety of persons in a licensed program if the following conditions are met: new text end

new text begin (1) the variance must be requested by an applicant or license holder on a form and in a manner prescribed by the commissioner; new text end

new text begin (2) the request for a variance must include the reasons that the applicant or license holder cannot comply with a requirement as stated in the rule and the alternative equivalent measures that the applicant or license holder will follow to comply with the intent of the rule; and new text end

new text begin (3) the request must state the period of time for which the variance is requested. new text end

new text begin The commissioner may grant a permanent variance when conditions under which the variance is requested do not affect the health or safety of persons being served by the licensed program, nor compromise the qualifications of staff to provide services. The permanent variance shall expire as soon as the conditions that warranted the variance are modified in any way. Any applicant or license holder must inform the commissioner of any changes or modifications that have occurred in the conditions that warranted the permanent variance. Failure to advise the commissioner shall result in revocation of the permanent variance and may be cause for other sanctions under sections 142B.17 and 142B.18. new text end

new text begin The commissioner's decision to grant or deny a variance request is final and not subject to appeal under the provisions of chapter 14. new text end

new text begin (b) The commissioner shall consider variances for child care center staff qualification requirements under Minnesota Rules, parts 9503.0032 and 9503.0033, that do not affect the health and safety of children served by the center. A variance request must be submitted to the commissioner in accordance with paragraph (a) and must include a plan for the staff person to gain additional experience, education, or training, as requested by the commissioner. When reviewing a variance request under this section, the commissioner shall consider the staff person's level of professional development, including but not limited to steps completed on the Minnesota career lattice. new text end

new text begin (c) Counties shall use a uniform application form developed by the commissioner for variance requests by family child care license holders. new text end

new text begin Subd. 17. new text end

new text begin Education program; permitted ages; additional requirement. new text end

new text begin (a) A program licensed by the commissioner under Minnesota Rules, chapter 2960, may serve a person who is over the age of 18 but under the age of 21 if the person is: new text end

new text begin (1) completing secondary education or a program leading to an equivalent credential; new text end

new text begin (2) enrolled in an institution that provides postsecondary or vocational education; new text end

new text begin (3) participating in a program or activity designed to promote or remove barriers to employment; new text end

new text begin (4) employed for at least 80 hours per month; or new text end

new text begin (5) incapable of doing any of the activities described in clauses (1) to (4) due to a medical condition, which incapability is supported by regularly updated information in the case plan of the person. new text end

new text begin (b) Nothing in this subdivision precludes the license holder from seeking other variances under subdivision 16. new text end

new text begin Subd. 18. new text end

new text begin Funds and property; other requirements. new text end

new text begin (a) A license holder must ensure that persons served by the program retain the use and availability of personal funds or property unless restrictions are justified in the person's individual plan. new text end

new text begin (b) The license holder must ensure separation of funds of persons served by the program from funds of the license holder, the program, or program staff. new text end

new text begin (c) Whenever the license holder assists a person served by the program with the safekeeping of funds or other property, the license holder must: new text end

new text begin (1) immediately document receipt and disbursement of the person's funds or other property at the time of receipt or disbursement, including the person's signature, or the signature of the conservator or payee; and new text end

new text begin (2) return to the person upon the person's request, funds and property in the license holder's possession subject to restrictions in the person's treatment plan, as soon as possible, but no later than three working days after the date of request. new text end

new text begin (d) License holders and program staff must not: new text end

new text begin (1) borrow money from a person served by the program; new text end

new text begin (2) purchase personal items from a person served by the program; new text end

new text begin (3) sell merchandise or personal services to a person served by the program; new text end

new text begin (4) require a person served by the program to purchase items for which the license holder is eligible for reimbursement; or new text end

new text begin (5) use funds of persons served by the program to purchase items for which the facility is already receiving public or private payments. new text end

new text begin Subd. 19. new text end

new text begin Policies and procedures for program administration required and enforceable. new text end

new text begin (a) The license holder shall develop program policies and procedures necessary to maintain compliance with licensing requirements under Minnesota Statutes and Minnesota Rules. new text end

new text begin (b) The license holder shall: new text end

new text begin (1) provide training to program staff related to their duties in implementing the program's policies and procedures developed under paragraph (a); new text end

new text begin (2) document the provision of this training; and new text end

new text begin (3) monitor implementation of policies and procedures by program staff. new text end

new text begin (c) The license holder shall keep program policies and procedures readily accessible to staff and index the policies and procedures with a table of contents or another method approved by the commissioner. new text end

new text begin Subd. 20. new text end

new text begin Pandemic planning. new text end

new text begin Upon request, the license holder must cooperate with state and local government disaster planning agencies working to prepare for or react to emergencies presented by a pandemic outbreak. new text end

new text begin Subd. 21. new text end

new text begin Plan for transfer of clients and records upon closure. new text end

new text begin (a) Except for license holders who reside on the premises and child care providers, an applicant for initial or continuing licensure or certification must submit a written plan indicating how the program will ensure the transfer of clients and records for both open and closed cases if the program closes. The plan must provide for managing private and confidential information concerning program clients. The plan must also provide for notifying affected clients of the closure at least 25 days prior to closure, including information on how to access their records. A controlling individual of the program must annually review and sign the plan. new text end

new text begin (b) Plans for the transfer of open cases and case records must specify arrangements the program will make to transfer clients to another provider or county agency for continuation of services and to transfer the case record with the client. new text end

new text begin (c) Plans for the transfer of closed case records must be accompanied by a signed agreement or other documentation indicating that a county or a similarly licensed provider has agreed to accept and maintain the program's closed case records and to provide follow-up services as necessary to affected clients. new text end

new text begin Subd. 22. new text end

new text begin Program policy; reporting a death in the program. new text end

new text begin Unless such reporting is otherwise already required under statute or rule, programs licensed under this chapter must have a written policy for reporting the death of an individual served by the program to the commissioner of children, youth, and families. Within 24 hours of receiving knowledge of the death of an individual served by the program, the license holder shall notify the commissioner of the individual's death. If the license holder has reason to know that the death has been reported to the commissioner, a subsequent report is not required. new text end

Sec. 6.

new text begin [142B.11] 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. 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

Sec. 7.

new text begin [142B.12] FEES. new text end

new text begin Subdivision 1. new text end

new text begin Application or license fee required, programs exempt from fee. new text end

new text begin (a) Unless exempt under paragraph (b), the commissioner shall charge a fee for evaluation of applications and inspection of programs that are licensed under this chapter. new text end

new text begin (b) Except as provided under subdivision 2, no application or license fee shall be charged for child foster care or family and group family child care. new text end

new text begin Subd. 2. new text end

new text begin County fees for applications and licensing inspections. new text end

new text begin (a) A county agency may charge a license fee to an applicant or license holder not to exceed $50 for a one-year license or $100 for a two-year license. new text end

new text begin (b) Counties may allow providers to pay the applicant fee in paragraph (a) on an installment basis for up to one year. If the provider is receiving child care assistance payments from the state, the provider may have the fee under paragraph (a) deducted from the child care assistance payments for up to one year and the state shall reimburse the county for the county fees collected in this manner. new text end

new text begin (c) For purposes of child foster care licensing under this chapter, a county agency may charge a fee to a corporate applicant or corporate license holder to recover the actual cost of licensing inspections, not to exceed $500 annually. new text end

new text begin (d) Counties may elect to reduce or waive the fees in paragraph (c) under the following circumstances: new text end

new text begin (1) in cases of financial hardship; new text end

new text begin (2) if the county has a shortage of providers in the county's area; or new text end

new text begin (3) for new providers. new text end

new text begin Subd. 3. new text end

new text begin Application fee for initial license. new text end

new text begin (a) For fees required under subdivision 1, an applicant for an initial license issued by the commissioner shall submit a $500 application fee with each new application required under this subdivision. The application fee shall not be prorated, is nonrefundable, and is in lieu of the annual license fee that expires on December 31. The commissioner shall not process an application until the application fee is paid. new text end

new text begin (b) An applicant shall apply for a license to provide services at a specific location, except an applicant for a license for a private agency to provide foster care or adoption services under Minnesota Rules, parts 9545.0755 to 9545.0845, shall submit a single application to provide services statewide. new text end

new text begin Subd. 4. new text end

new text begin License fee for certain programs. new text end

new text begin (a) Child care centers shall pay an annual nonrefundable license fee based on the following schedule: new text end

new text begin Licensed Capacity new text end new text begin Child Care Center
License Fee
new text end
new text begin 1 to 24 persons new text end new text begin $200 new text end
new text begin 25 to 49 persons new text end new text begin $300 new text end
new text begin 50 to 74 persons new text end new text begin $400 new text end
new text begin 75 to 99 persons new text end new text begin $500 new text end
new text begin 100 to 124 persons new text end new text begin $600 new text end
new text begin 125 to 149 persons new text end new text begin $700 new text end
new text begin 150 to 174 persons new text end new text begin $800 new text end
new text begin 175 to 199 persons new text end new text begin $900 new text end
new text begin 200 to 224 persons new text end new text begin $1,000 new text end
new text begin 225 or more persons new text end new text begin $1,100 new text end

new text begin (b) A private agency licensed to provide foster care and adoption services under Minnesota Rules, parts 9545.0755 to 9545.0845, shall pay an annual nonrefundable license fee of $875. new text end

new text begin Subd. 5. new text end

new text begin License not issued until license fee is paid. new text end

new text begin The commissioner shall not issue or reissue a license until the license fee is paid. The commissioner shall send a bill for the license fee to the billing address identified by the license holder. If the license holder does not submit the license fee payment by the due date, the commissioner shall send the license holder a past due notice. If the license holder fails to pay the license fee by the due date on the past due notice, the commissioner shall send a final notice to the license holder informing the license holder that the program license will expire on December 31 unless the license fee is paid before December 31. If a license expires, the program is no longer licensed and, unless exempt from licensure under section 142B.05, subdivision 2, must not operate after the expiration date. After a license expires, if the former license holder wishes to provide licensed services, the former license holder must submit a new license application and application fee under subdivision 3. new text end

new text begin Subd. 6. new text end

new text begin Children, youth, and families licensing fees to recover expenditures. new text end

new text begin Notwithstanding section 16A.1285, subdivision 2, related to activities for which the commissioner charges a fee, the commissioner must plan to fully recover direct expenditures for licensing activities under this chapter over a five-year period. The commissioner may have anticipated expenditures in excess of anticipated revenues in a biennium by using surplus revenues accumulated in previous bienniums. new text end

new text begin Subd. 7. new text end

new text begin Deposit of license fees. new text end

new text begin A children, youth, and families licensing account is created in the state government special revenue fund. Fees collected under subdivisions 3 and 4 must be deposited in the children, youth, and families licensing account and are annually appropriated to the commissioner for licensing activities authorized under this chapter. new text end

new text begin Subd. 8. new text end

new text begin License not reissued until outstanding debt is paid. new text end

new text begin The commissioner shall not reissue a license until the license holder has paid all outstanding debts related to a licensing fine or settlement agreement for which payment is delinquent. If the payment is past due, the commissioner shall send a past due notice informing the license holder that the program license will expire on December 31 unless the outstanding debt is paid before December 31. If a license expires, the program is no longer licensed and must not operate after the expiration date. After a license expires, if the former license holder wishes to provide licensed services, the former license holder must submit a new license application and application fee under subdivision 3. new text end

Sec. 8.

new text begin [142B.15] DENIAL OF APPLICATION. new text end

new text begin (a) The commissioner may deny a license if an applicant or controlling individual: new text end

new text begin (1) fails to submit a substantially complete application after receiving notice from the commissioner under section 142B.10, subdivision 1; new text end

new text begin (2) fails to comply with applicable laws or rules; new text end

new text begin (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; new text end

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

new text begin (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; new text end

new text begin (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; new text end

new text begin (7) fails to comply with section 142B.10, subdivision 1, paragraph (f) or (g); new text end

new text begin (8) fails to demonstrate competent knowledge as required by section 142B.10, subdivision 13; 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 142E, 245A, and 245C; new text end

new text begin (10) is prohibited from holding a license according to section 142A.12 or 245.095; or new text end

new text begin (11) for a family foster setting, has or has an individual who is living in the household where the licensed services are provided or is otherwise subject to a background study who has nondisqualifying background study information, as described in section 245C.05, subdivision 4, that reflects on the applicant's ability to safely provide care to foster children. new text end

new text begin (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, by personal service, or through the provider licensing and reporting hub. 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, by personal service, or through the provider licensing and reporting hub. 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. If the order is issued through the provider hub, the appeal must be received by the commissioner within 20 calendar days from the date the commissioner issued the order through the hub. Section 142B.20 applies to hearings held to appeal the commissioner's denial of an application. new text end

Sec. 9.

new text begin [142B.16] CORRECTION ORDER AND CONDITIONAL LICENSE. new text end

new text begin Subdivision 1. new text end

new text begin Contents of correction orders and conditional licenses. new text end

new text begin (a) If the commissioner finds that the applicant or license holder has failed to comply with an applicable law or rule and this failure does not imminently endanger the health, safety, or rights of the persons served by the program, the commissioner may issue a correction order and an order of conditional license to the applicant or license holder. When issuing a conditional license, 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. The correction order or conditional license must state the following in plain language: new text end

new text begin (1) the conditions that constitute a violation of the law or rule; new text end

new text begin (2) the specific law or rule violated; new text end

new text begin (3) the time allowed to correct each violation; and new text end

new text begin (4) if a license is made conditional, the length and terms of the conditional license, and the reasons for making the license conditional. new text end

new text begin (b) Nothing in this section prohibits the commissioner from proposing a sanction as specified in section 142B.18, prior to issuing a correction order or conditional license. new text end

new text begin (c) The commissioner may issue a correction order and an order of conditional license to the applicant or license holder through the provider licensing and reporting hub. new text end

new text begin Subd. 2. new text end

new text begin Reconsideration of correction orders. new text end

new text begin (a) If the applicant or license holder believes that the contents of the commissioner's correction order are in error, the applicant or license holder may ask the Department of Children, Youth, and Families to reconsider the parts of the correction order that are alleged to be in error. The request for reconsideration must be made in writing and must be postmarked and sent to the commissioner within 20 calendar days after receipt of the correction order by the applicant or license holder or submitted in the provider licensing and reporting hub within 20 calendar days from the date the commissioner issued the order through the hub, and: new text end

new text begin (1) specify the parts of the correction order that are alleged to be in error; new text end

new text begin (2) explain why they are in error; and new text end

new text begin (3) include documentation to support the allegation of error. new text end

new text begin Upon implementation of the provider licensing and reporting hub, the provider must use the hub to request reconsideration. A request for reconsideration does not stay any provisions or requirements of the correction order. 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 (b) This paragraph applies only to licensed family child care providers. A licensed family child care provider who requests reconsideration of a correction order under paragraph (a) may also request, on a form and in the manner prescribed by the commissioner, that the commissioner expedite the review if: new text end

new text begin (1) the provider is challenging a violation and provides a description of how complying with the corrective action for that violation would require the substantial expenditure of funds or a significant change to their program; and new text end

new text begin (2) describes what actions the provider will take in lieu of the corrective action ordered to ensure the health and safety of children in care pending the commissioner's review of the correction order. new text end

new text begin Subd. 3. new text end

new text begin Failure to comply. new text end

new text begin If the commissioner finds that the applicant or license holder has not corrected the violations specified in the correction order or conditional license, the commissioner may impose a fine and order other licensing sanctions pursuant to section 142B.18. new text end

new text begin Subd. 4. new text end

new text begin Notice of conditional license; reconsideration of conditional license. new text end

new text begin (a) If a license is made conditional, the license holder must be notified of the order by certified mail, by personal service, or through the provider licensing and reporting hub. 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 the reasons the conditional license was ordered and must inform the license holder of the right to request reconsideration of the conditional license by the commissioner. The license holder may request reconsideration of the order of conditional license by notifying the commissioner by certified mail, by personal service, or through the provider licensing and reporting hub. The request must be made in writing. If sent by certified mail, the request must be postmarked and sent to the commissioner within ten calendar days after the license holder received the order. 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. If the order is issued through the provider hub, the request must be received by the commissioner within ten calendar days from the date the commissioner issued the order through the hub. The license holder may submit with the request for reconsideration written argument or evidence in support of the request for reconsideration. A timely request for reconsideration shall stay imposition of the terms of the conditional license until the commissioner issues a decision on the request for reconsideration. If the commissioner issues a dual order of conditional license under this section and an order to pay a fine under section 142B.18, subdivision 6, the license holder has a right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The scope of the contested case hearing shall include the fine and the conditional license. In this case, a reconsideration of the conditional license will not be conducted under this section. If the license holder does not appeal the fine, the license holder does not have a right to a contested case hearing and a reconsideration of the conditional license must be conducted under this subdivision. 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

Sec. 10.

new text begin [142B.18] SANCTIONS. new text end

new text begin Subdivision 1. new text end

new text begin Sanctions; appeals; license. new text end

new text begin (a) In addition to making a license conditional under section 142B.16, 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: new text end

new text begin (1) does not comply with applicable law or rule; new text end

new text begin (2) has nondisqualifying background study information, as described in section 245C.05, subdivision 4, that reflects on the license holder's ability to safely provide care to foster children; or new text end

new text begin (3) has an individual living in the household where the licensed services are provided or is otherwise subject to a background study, and the individual has nondisqualifying background study information, as described in section 245C.05, subdivision 4, that reflects on the license holder's ability to safely provide care to foster children. new text end

new text begin 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. new text end

new text begin (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 142B.16 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 142B.12. 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. new text end

new text begin (c) If a license holder is under investigation and the license issued under this chapter 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 or section 142B.16 or 142B.20. new text end

new text begin (d) Failure to reapply or closure of a license issued under this chapter by the license holder prior to the completion of any investigation shall not preclude the commissioner from issuing a licensing sanction under this section or section 142B.16 at the conclusion of the investigation. new text end

new text begin Subd. 2. new text end

new text begin Temporary immediate suspension. new text end

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

new text begin (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; new text end

new text begin (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 that may adversely affect the health or safety of persons served by the program; or new 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

new text begin (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 issued under this chapter 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, personal service, or other means expressly set forth in the commissioner's order. 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 end

new text begin Subd. 3. new text end

new text begin Immediate suspension expedited hearing. new text end

new text begin (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 142B.20, regarding a licensing sanction issued under subdivision 5 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 that 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 142B.46, 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 the evidence that, since the license was revoked, the license holder committed additional violations of law or rule that may adversely affect the health or safety of persons served by the program. new text end

new text begin (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 an immediate suspension has been issued and the license holder has not submitted a timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final order affirming an immediate suspension, the commissioner shall determine: new text end

new text begin (1) whether a final licensing sanction shall be issued under subdivision 5, paragraph (a), clauses (1) to (6). The license holder shall continue to be prohibited from operation of the program during this 90-day period; or new text end

new text begin (2) whether the outcome of related, ongoing investigations or judicial proceedings are necessary to determine if a final licensing sanction under subdivision 5, paragraph (a), clauses (1) to (6), will be issued and whether persons served by the program remain at an imminent risk of harm during the investigation period or proceedings. If so, the commissioner shall issue a suspension order under subdivision 5, paragraph (a), clause (7). new text end

new text begin (c) When the final order under paragraph (b) affirms an immediate suspension, or the license holder does not submit a timely appeal of the immediate suspension, and a final licensing sanction is issued under subdivision 5 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 142B.20, subdivision 6, regarding the final licensing sanction. new text end

new text begin (d) The license holder shall continue to be prohibited from operation of the program while a suspension order issued under paragraph (b), clause (2), remains in effect. new text end

new text begin (e) 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

new text begin Subd. 4. new text end

new text begin Immediate suspension of residential programs. new text end

new text begin For suspensions issued to a licensed residential program as defined in section 142B.01, subdivision 24, the effective date of the order may be delayed for up to 30 calendar days to provide for the continuity of care of service recipients. The license holder must cooperate with the commissioner to ensure service recipients receive continued care during the period of the delay and to facilitate the transition of service recipients to new providers. In these cases, the suspension order takes effect when all service recipients have been transitioned to a new provider or 30 days after the suspension order was issued, whichever comes first. new text end

new text begin Subd. 5. new text end

new text begin License suspension, revocation, or fine. new text end

new text begin (a) The commissioner may suspend or revoke a license, or impose a fine if: new text end

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

new text begin (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 been disqualified and the disqualification was not set aside and no variance has been granted; new text end

new text begin (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; new text end

new text begin (4) a license holder is excluded from any program administered by the commissioner under section 142A.12; new text end

new text begin (5) revocation is required under section 142B.10, subdivision 14, paragraph (d); new text end

new text begin (6) for a family foster setting, a license holder, or an individual living in the household where the licensed services are provided or who is otherwise subject to a background study, has nondisqualifying background study information, as described in section 245C.05, subdivision 4, that reflects on the license holder's ability to safely provide care to foster children; or new text end

new text begin (7) suspension is necessary under subdivision 3, paragraph (b), clause (2). new text end

new text begin A license holder who has had a license issued under this chapter suspended, revoked, or has been ordered to pay a fine must be given notice of the action by certified mail, by personal service, or through the provider licensing and reporting hub. 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. new text end

new text begin (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, by personal service, or through the provider licensing and reporting hub. 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. If the order is issued through the provider hub, the appeal must be received by the commissioner within ten calendar days from the date the commissioner issued the order through the hub. Except as provided in subdivision 3, 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 under section 142B.10, subdivision 14, paragraphs (i) and (j), until the commissioner issues a final order on the suspension or revocation. new text end

new text begin (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, by personal service, or through the provider licensing and reporting hub. 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. If the order is issued through the provider hub, the appeal must be received by the commissioner within ten calendar days from the date the commissioner issued the order through the hub. new text end

new text begin (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. new text end

new text begin (3) A license holder shall promptly notify the commissioner of children, youth, and families, 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, by personal service, or through the provider licensing and reporting hub that a second fine has been assessed. The license holder may appeal the second fine as provided under this subdivision. new text end

new text begin (4) Fines shall be assessed as follows: new text end

new text begin (i) the license holder shall forfeit $1,000 for each determination of maltreatment of a child under chapter 260E or the maltreatment of a vulnerable adult under section 626.557 for which the license holder is determined responsible for the maltreatment under section 260E.30, subdivision 4, paragraphs (a) and (b), or 626.557, subdivision 9c, paragraph (c); new text end

new text begin (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; new text end

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

new text begin (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 new text end

new text begin (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). new text end

new text begin (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. new text end

new text begin (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 end

new text begin Subd. 6. new text end

new text begin Appeal of multiple sanctions. new text end

new text begin (a) When the license holder appeals more than one licensing action or sanction that were simultaneously issued by the commissioner, the license holder shall specify the actions or sanctions that are being appealed. new text end

new text begin (b) If there are different timelines prescribed in statutes for the licensing actions or sanctions being appealed, the license holder must submit the appeal within the longest of those timelines specified in statutes. new text end

new text begin (c) The appeal must be made in writing by certified mail or personal service. If mailed, the appeal must be postmarked and sent to the commissioner within the prescribed timeline with the first day beginning the day after the license holder receives the certified letter. If a request is made by personal service, it must be received by the commissioner within the prescribed timeline with the first day beginning the day after the license holder receives the certified letter. new text end

new text begin (d) When there are different timelines prescribed in statutes for the appeal of licensing actions or sanctions simultaneously issued by the commissioner, the commissioner shall specify in the notice to the license holder the timeline for appeal as specified under paragraph (b). new text end

new text begin Subd. 7. new text end

new text begin Time frame for conducting hearing. new text end

new text begin Within 15 working days of receipt of the license holder's timely appeal of a sanction under this section other than a temporary immediate suspension, the commissioner shall request assignment of an administrative law judge. The commissioner's request must include a proposed date, time, and place of a hearing. A hearing must be conducted by an administrative law judge within 90 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 or for purposes of discussing settlement. In no case shall one or more extensions be granted for a total of more than 90 calendar days unless there is a criminal or juvenile court action pending against the license holder or another individual subject to a background study. new text end

Sec. 11.

new text begin [142B.19] DISQUALIFIED INDIVIDUAL; DENIAL, CONDITIONAL LICENSE, REVOCATION. new text end

new text begin (a) For the purpose of keeping a disqualified individual away from individuals receiving services in a license holder's home, when the disqualified individual has not received a set-aside and a variance has not been granted under chapter 245C, the commissioner may issue: new text end

new text begin (1) an order of denial of an application; new text end

new text begin (2) an order of conditional license; or new text end

new text begin (3) an order of revocation. new text end

new text begin (b) An order issued by the commissioner under this section is subject to notice and appeal rights provided under this chapter as follows: new text end

new text begin (1) an order of denial of an application according to section 142B.15; new text end

new text begin (2) an order of conditional license according to section 142B.16; and new text end

new text begin (3) an order of revocation of a license according to section 142B.18. new text end

Sec. 12.

new text begin [142B.20] HEARINGS. new text end

new text begin Subdivision 1. new text end

new text begin Receipt of appeal; conduct of hearing. new text end

new text begin Upon receiving a timely appeal or petition pursuant to section 142B.15; 142B.18, subdivision 6; or 245C.28, the commissioner shall issue a notice of and order for hearing to the appellant under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. new text end

new text begin Subd. 2. new text end

new text begin Conduct of hearings. new text end

new text begin At any hearing provided for by section 142B.15; 142B.18, subdivision 6; or 245C.28, the appellant may be represented by counsel and has the right to call, examine, and cross-examine witnesses. The administrative law judge may require the presence of witnesses and evidence by subpoena on behalf of any party. new text end

new text begin Subd. 3. new text end

new text begin Consolidated contested case hearings. new text end

new text begin (a) When a denial of a license under section 142B.15 or a licensing sanction under section 142B.18, subdivision 6, is based on a disqualification for which reconsideration was timely requested and which was not set aside under section 245C.22, the scope of the contested case hearing shall include the disqualification and the licensing sanction or denial of a license, unless otherwise specified in this subdivision. When the licensing sanction or denial of a license is based on a determination of maltreatment under section 626.557 or chapter 260E, or a disqualification for serious or recurring maltreatment that was not set aside, the scope of the contested case hearing shall include the maltreatment determination, disqualification, and the licensing sanction or denial of a license, unless otherwise specified in this subdivision. In these cases, a fair hearing under section 142A.20 shall not be conducted as provided in sections 245C.27, 260E.33, and 626.557, subdivision 9d. new text end

new text begin (b) Except for family child care and child foster care, reconsideration of a maltreatment determination under sections 260E.33 and 626.557, subdivision 9d, and reconsideration of a disqualification under section 245C.22, shall not be conducted when: new text end

new text begin (1) a denial of a license under section 142B.15, or a licensing sanction under section 142B.18, is based on a determination that the license holder is responsible for maltreatment or the disqualification of a license holder is based on serious or recurring maltreatment; new text end

new text begin (2) the denial of a license or licensing sanction is issued at the same time as the maltreatment determination or disqualification; and new text end

new text begin (3) the license holder appeals the maltreatment determination or disqualification, and denial of a license or licensing sanction. In these cases, a fair hearing shall not be conducted under sections 245C.27, 260E.33, and 626.557, subdivision 9d. The scope of the contested case hearing must include the maltreatment determination, disqualification, and denial of a license or licensing sanction. new text end

new text begin Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment determination or disqualification, but does not appeal the denial of a license or a licensing sanction, reconsideration of the maltreatment determination shall be conducted under sections 260E.33 and 626.557, subdivision 9d, and reconsideration of the disqualification shall be conducted under section 245C.22. In such cases, a fair hearing shall also be conducted as provided under sections 245C.27, 260E.33, and 626.557, subdivision 9d. new text end

new text begin (c) In consolidated contested case hearings regarding sanctions issued in family child care and child foster care, the county attorney shall defend the commissioner's orders in accordance with section 142B.30, subdivision 4. new text end

new text begin (d) The commissioner's final order under subdivision 6 is the final agency action on the issue of maltreatment and disqualification, including for purposes of subsequent background studies under chapter 245C and is the only administrative appeal of the final agency determination, including a challenge to the accuracy and completeness of data under section 13.04. new text end

new text begin (e) When consolidated hearings under this subdivision involve a licensing sanction based on a previous maltreatment determination for which the commissioner has issued a final order in an appeal of that determination under section 142A.20 or the individual failed to exercise the right to appeal the previous maltreatment determination under section 260E.33 or 626.557, subdivision 9d, the commissioner's order is conclusive on the issue of maltreatment. In such cases, the scope of the administrative law judge's review shall be limited to the disqualification and the licensing sanction or denial of a license. In the case of a denial of a license or a licensing sanction issued to a facility based on a maltreatment determination regarding an individual who is not the license holder or a household member, the scope of the administrative law judge's review includes the maltreatment determination. new text end

new text begin (f) The hearings of all parties may be consolidated into a single contested case hearing upon consent of all parties and the administrative law judge, if: new text end

new text begin (1) a maltreatment determination or disqualification that was not set aside under section 245C.22 is the basis for a denial of a license under section 245A.05 or a licensing sanction under section 245A.07; new text end

new text begin (2) the disqualified subject is an individual other than the license holder and upon whom a background study must be conducted under section 245C.03; and new text end

new text begin (3) the individual has a hearing right under section 245C.27. new text end

new text begin (g) When a denial of a license under section 142B.15 or a licensing sanction under section 142B.18 is based on a disqualification for which reconsideration was requested and was not set aside under section 245C.22, and the individual otherwise has no hearing right under section 245C.27, the scope of the administrative law judge's review shall include the denial or sanction and a determination whether the disqualification should be set aside, unless section 245C.24 prohibits the set-aside of the disqualification. In determining whether the disqualification should be set aside, the administrative law judge shall consider the factors under section 245C.22, subdivision 4, to determine whether the individual poses a risk of harm to any person receiving services from the license holder. new text end

new text begin (h) Notwithstanding section 245C.30, subdivision 5, when a licensing sanction under section 142B.18 is based on the termination of a variance under section 245C.30, subdivision 4, the scope of the administrative law judge's review shall include the sanction and a determination whether the disqualification should be set aside, unless section 245C.24 prohibits the set-aside of the disqualification. In determining whether the disqualification should be set aside, the administrative law judge shall consider the factors under section 245C.22, subdivision 4, to determine whether the individual poses a risk of harm to any person receiving services from the license holder. new text end

new text begin Subd. 4. new text end

new text begin Burden of proof. new text end

new text begin (a) At a hearing regarding a licensing sanction under section 142B.18, including consolidated hearings under subdivision 3, the commissioner may demonstrate reasonable cause for action taken by submitting statements, reports, or affidavits to substantiate the allegations that the license holder failed to comply fully with applicable law or rule. If the commissioner demonstrates that reasonable cause existed, the burden of proof shifts to the license holder to demonstrate by a preponderance of the evidence that the license holder was in full compliance with those laws or rules that the commissioner alleges the license holder violated, at the time that the commissioner alleges the violations of law or rules occurred. new text end

new text begin (b) At a hearing on denial of an application, the applicant bears the burden of proof to demonstrate by a preponderance of the evidence that the appellant has complied fully with this chapter and other applicable law or rule and that the application should be approved and a license granted. new text end

new text begin Subd. 5. new text end

new text begin Recommendation of administrative law judge. new text end

new text begin The administrative law judge shall recommend whether or not the commissioner's order should be affirmed. The recommendations must be consistent with this chapter and the rules of the commissioner. The recommendations must be in writing and accompanied by findings of fact and conclusions and must be mailed to the parties by certified mail to their last known addresses as shown on the license or application. new text end

new text begin Subd. 6. new text end

new text begin Notice of commissioner's final order. new text end

new text begin After considering the findings of fact, conclusions, and recommendations of the administrative law judge, the commissioner shall issue a final order. The commissioner shall consider, but shall not be bound by, the recommendations of the administrative law judge. The appellant must be notified of the commissioner's final order as required by chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The notice must also contain information about the appellant's rights under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The institution of proceedings for judicial review of the commissioner's final order shall not stay the enforcement of the final order except as provided in section 14.65. new text end

new text begin Subd. 7. new text end

new text begin Granting subsequent license. new text end

new text begin (a) A license holder and each controlling individual of a license holder whose license has been revoked under this chapter or chapter 245A because of noncompliance with applicable law or rule must not be granted a license for five years following the revocation. Notwithstanding the five-year restriction, when a license is revoked under this chapter or chapter 245A because a person, other than the license holder, resides in the home where services are provided and that person has a disqualification that is not set aside and no variance has been granted, the former license holder may reapply for a license when: new text end

new text begin (1) the person with a disqualification, who is not a minor child, is no longer residing in the home and is prohibited from residing in or returning to the home; or new text end

new text begin (2) the person with the disqualification is a minor child, the restriction applies until the minor child becomes an adult and permanently moves away from the home or five years, whichever is less. new text end

new text begin (b) An applicant or controlling individual whose application was denied under this chapter or chapter 245A must not be granted a license for two years following a denial, unless the applicant's subsequent application contains new information which constitutes a substantial change in the conditions that caused the previous denial. The addition of a new co-applicant in a subsequent application does not constitute a substantial change. If an applicant or controlling individual whose application was denied under this chapter or chapter 245A is affiliated with a subsequent application, and two years have not passed since the denial, the subsequent application must be denied. new text end

Sec. 13.

new text begin [142B.21] SETTLEMENT AGREEMENT. new text end

new text begin (a) A license holder who has made a timely appeal pursuant to section 142B.16, subdivision 4, or 142B.18, subdivision 6, or the commissioner may initiate a discussion about a possible settlement agreement related to the licensing sanction. For the purposes of this section, the following conditions apply to a settlement agreement reached by the parties: new text end

new text begin (1) if the parties enter into a settlement agreement, the effect of the agreement shall be that the appeal is withdrawn and the agreement shall constitute the full agreement between the commissioner and the party who filed the appeal; and new text end

new text begin (2) the settlement agreement must identify the agreed-upon actions the license holder has taken and will take in order to achieve and maintain compliance with the licensing requirements that the commissioner determined the license holder had violated. new text end

new text begin (b) Neither the license holder nor the commissioner is required to initiate a settlement discussion under this section. new text end

new text begin (c) If a settlement discussion is initiated by the license holder, the commissioner shall respond to the license holder within 14 calendar days of receipt of the license holder's submission. new text end

new text begin (d) If the commissioner agrees to engage in settlement discussions, the commissioner may decide at any time not to continue settlement discussions with a license holder. new text end

Sec. 14.

new text begin [142B.22] CONSOLIDATION OF HEARINGS; RECONSIDERATION. new text end

new text begin Hearings authorized under this chapter, sections 142A.20 and 626.557, and chapters 245C and 260E pursuant to the commissioner's power under section 142A.09 must be consolidated if feasible and in accordance with other applicable statutes and rules. new text end

Sec. 15.

new text begin [142B.25] 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, by personal service, or through the provider licensing and reporting hub. 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 or submitted through the provider licensing and reporting hub within 20 calendar days after the license holder receives the notice of closure. Upon implementation of the provider licensing and reporting hub, the provider must use the hub to request reconsideration. If the order is issued through the provider hub, the reconsideration must be received by the commissioner within 20 calendar days from the date the commissioner issued the order through the hub. 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

Sec. 16.

new text begin [142B.30] STANDARDS FOR COUNTY AGENCIES AND PRIVATE AGENCIES. new text end

new text begin Subdivision 1. new text end

new text begin Delegation of authority to agencies. new text end

new text begin (a) County agencies and private agencies that have been designated or licensed by the commissioner to perform licensing functions and activities under section 142B.10 and background studies for family child care under chapter 245C; to recommend denial of applicants under section 142B.15; to issue correction orders, to issue variances, and to recommend a conditional license under section 142B.16; or to recommend suspending or revoking a license or issuing a fine under section 142B.18, 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: new text end

new text begin (1) dual licensure of family child care and family child foster care, dual licensure of family child foster care and family adult foster care, dual licensure of child foster residence setting and community residential setting, and dual licensure of family adult foster care and family child care; new text end

new text begin (2) child foster care maximum age requirement; new text end

new text begin (3) variances regarding disqualified individuals; new text end

new text begin (4) variances to requirements relating to chemical use problems of a license holder or a household member of a license holder; and new text end

new text begin (5) variances to section 142B.74 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

new text begin Except as provided in section 142B.41, 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. new text end

new text begin (b) A county agency that has been designated by the commissioner to issue family child care variances must: new text end

new text begin (1) publish the county agency's policies and criteria for issuing variances on the county's public website and update the policies as necessary; and new text end

new text begin (2) annually distribute the county agency's policies and criteria for issuing variances to all family child care license holders in the county. new text end

new text begin (c) 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. new text end

new text begin (d) For family child care programs, the commissioner shall require a county agency to conduct one unannounced licensing review at least annually. new text end

new text begin (e) A license issued under this section may be issued for up to two years. new text end

new text begin (f) 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: new text end

new text begin (1) the results of each licensing review completed, including the date of the review, and any licensing correction order issued; new text end

new text begin (2) any death, serious injury, or determination of substantiated maltreatment; and new 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 Subd. 2. new text end

new text begin Investigations. new text end

new text begin (a) The county or private agency shall conduct timely investigations of allegations of license violations in programs for which the county or private agency is the commissioner's designated representative and record a disposition of each complaint in accordance with applicable law or rule. new text end

new text begin (b) If an investigation conducted under paragraph (a) results in evidence that the commissioner should deny an application or suspend, revoke, or make conditional a license, the county or private agency shall make that recommendation to the commissioner within ten working days. new text end

new text begin Subd. 3. new text end

new text begin Recommendations to commissioner. new text end

new text begin The county or private agency shall not make recommendations to the commissioner regarding licensure without first conducting an inspection. The county or private agency must forward its recommendation to the commissioner regarding the appropriate licensing action within 20 working days of receipt of a completed application. new text end

new text begin Subd. 4. new text end

new text begin Enforcement of commissioner's orders. new text end

new text begin The county or private agency shall enforce the orders of the commissioner of children, youth, and families under sections 142B.18 and 142B.20, subdivision 6, and the orders of the commissioner of human services under chapter 245C, according to the instructions of the commissioner of children, youth, and families. The county attorney shall assist the county agency in the enforcement and defense of the orders of the commissioner of children, youth, and families under sections 142B.18 and 142B.20, subdivision 6, and the orders of the commissioner of human services under chapter 245C, according to the instructions of the commissioner of children, youth, and families, unless a conflict of interest exists between the county attorney and the commissioner. For purposes of this section, a conflict of interest means that the county attorney has a direct or shared financial interest with the license holder or has a personal relationship or family relationship with a party in the licensing action. new text end

new text begin Subd. 5. new text end

new text begin Instruction and technical assistance. new text end

new text begin (a) The commissioner shall provide instruction and technical assistance to county and private agencies that are subject to this section. County and private agencies shall cooperate with the commissioner in carrying out this section by ensuring that affected employees participate in instruction and technical assistance provided by the commissioner. new text end

new text begin (b) The commissioner shall provide training to county agencies that perform child care licensing functions on identifying and preventing fraud relating to provider reimbursement in the child care assistance program. new text end

new text begin Subd. 6. new text end

new text begin Certification by commissioner. new text end

new text begin The commissioner shall ensure that rules are uniformly enforced throughout the state by reviewing each county and private agency for compliance with this section and other applicable laws and rules at least every four years. County agencies that comply with this section shall be certified by the commissioner. If a county agency fails to be certified by the commissioner, the commissioner shall certify a reduction of state administrative aids in an amount up to 20 percent of the county's state portion of Vulnerable Children and Adults Act funding. new text end

new text begin Subd. 7. new text end

new text begin Notice of county recommendation. new text end

new text begin The county or private agency shall provide written notice to the license holder when the agency recommends a licensing action to the commissioner under subdivision 2 or 3. The written notice shall inform the license holder about the process for determining a licensing action and how the license holder will be notified of a licensing action determination. The notice shall include the following: new text end

new text begin (1) that the county or private agency made a recommendation to the commissioner to deny an application or suspend, revoke, or make conditional a license; new text end

new text begin (2) that the commissioner will review the recommendation from the county or private agency and then determine if a licensing action will be issued; new text end

new text begin (3) that the license holder will receive written notice from the commissioner indicating the reasons for the licensing action issued; and new text end

new text begin (4) instructions on how to request reconsideration or appeal, if a licensing action is issued. new text end

new text begin County or private agency recommendations under this section are classified as confidential data under chapter 13 and may only be disclosed as permitted by law. new text end

new text begin Subd. 8. new text end

new text begin Licensing and reporting hub. new text end

new text begin Upon implementation of the provider licensing and reporting hub, county staff who perform licensing functions must use the hub in the manner prescribed by the commissioner. new text end

Sec. 17.

new text begin [142B.31] PUBLIC FUNDS PROGRAM INTEGRITY MONITORING. new text end

new text begin (a) An applicant or a license holder that has enrolled to receive public funding reimbursement for services is required to comply with the registration or enrollment requirements as licensing standards. new text end

new text begin (b) Compliance with the licensing standards established under paragraph (a) may be monitored during a licensing investigation or inspection. Noncompliance with these licensure standards may result in: new text end

new text begin (1) a correction order or a conditional license under section 142B.16, or sanctions under section 142B.18; new text end

new text begin (2) nonpayment of claims submitted by the license holder for public program reimbursement according to the statute applicable to that program; new text end

new text begin (3) recovery of payments made for the service according to the statute applicable to that program; new text end

new text begin (4) disenrollment in the public payment program according to the statute applicable to that program; or new text end

new text begin (5) a referral for other administrative, civil, or criminal penalties as provided by law. new text end

Sec. 18.

new text begin [142B.40] SPECIAL CONDITIONS FOR RESIDENTIAL PROGRAMS. new text end

new text begin Subdivision 1. new text end

new text begin Policy statement. new text end

new text begin It is the policy of the state that persons shall not be excluded by municipal zoning ordinances or other land use regulations from the benefits of normal residential surroundings. new text end

new text begin Subd. 2. new text end

new text begin Permitted single-family residential use. new text end

new text begin Residential programs with a licensed capacity of six or fewer persons shall be considered a permitted single-family residential use of property for the purposes of zoning and other land use regulations, except that a residential program whose primary purpose is to treat juveniles who have violated criminal statutes relating to sex offenses or have been adjudicated delinquent on the basis of conduct in violation of criminal statutes relating to sex offenses shall not be considered a permitted use. This exception shall not apply to residential programs licensed before July 1, 1995. Programs otherwise allowed under this subdivision shall not be prohibited by operation of restrictive covenants or similar restrictions, regardless of when entered into, that cannot be met because of the nature of the licensed program, including provisions that require the home's occupants be related, and that the home must be occupied by the owner, or similar provisions. new text end

new text begin Subd. 3. new text end

new text begin License holder qualifications for child foster care. new text end

new text begin (a) Child foster care license holders must maintain the ability to care for a foster child and ensure a safe home environment for children placed in their care. License holders must immediately notify the licensing agency of: new text end

new text begin (1) any changes to the license holder or household member's physical or behavioral health that may affect the license holder's ability to care for a foster child or pose a risk to a foster child's health; or new text end

new text begin (2) changes related to the care of a child or vulnerable adult for whom the license holder is a parent or legally responsible, including living out of the home for treatment for physical or behavioral health, modified parenting time arrangements, legal custody, or placement in foster care. new text end

new text begin (b) The licensing agency may request a license holder or household member to undergo an evaluation by a specialist in areas such as physical or behavioral health to evaluate the license holder's ability to provide a safe environment for a foster child. Prior to assigning a specialist to evaluate, the licensing agency must tell the license holder or household member why the licensing agency has requested a specialist evaluation and request a release of information from the license holder or household member. new text end

Sec. 19.

new text begin [142B.41] SPECIAL CONDITIONS FOR NONRESIDENTIAL PROGRAMS. new text end

new text begin Subdivision 1. new text end

new text begin Permitted single-family residential use. new text end

new text begin A licensed nonresidential program with a licensed capacity of 12 or fewer persons and a group family day care facility licensed under Minnesota Rules, parts 9502.0315 to 9502.0445, to serve 14 or fewer children shall be considered a permitted single-family residential use of property for the purposes of zoning and other land use regulations. new text end

new text begin Subd. 2. new text end

new text begin Permitted multifamily use. new text end

new text begin Except as otherwise provided in subdivision 1 or in a town, municipal, or county regulation, a licensed nonresidential program with a licensed capacity of 13 to 16 persons shall be considered a permitted multifamily residential use of property for purposes of zoning. A town, municipal, or county zoning authority may require a conditional use or special use permit in order to assure proper maintenance and operation of the program. Conditions imposed on the nonresidential program must not be more restrictive than those imposed on other conditional uses or special uses of residential property in the same zones unless the additional conditions are necessary to protect the health and safety of the persons being served by the nonresidential program. Nothing in this chapter shall be construed to exclude or prohibit nonresidential programs from single-family zones if otherwise permitted by local zoning regulations. new text end

new text begin Subd. 3. new text end

new text begin Attendance records for publicly funded services. new text end

new text begin (a) A child care center licensed under this chapter and according to Minnesota Rules, chapter 9503, must maintain documentation of actual attendance for each child receiving care for which the license holder is reimbursed by a governmental program. The records must be accessible to the commissioner during the program's hours of operation, they must be completed on the actual day of attendance, and they must include: new text end

new text begin (1) the first and last name of the child; new text end

new text begin (2) the time of day that the child was dropped off; and new text end

new text begin (3) the time of day that the child was picked up. new text end

new text begin (b) A family child care provider licensed under this chapter and according to Minnesota Rules, chapter 9502, must maintain documentation of actual attendance for each child receiving care for which the license holder is reimbursed for the care of that child by a governmental program. The records must be accessible to the commissioner during the program's hours of operation, they must be completed on the actual day of attendance, and they must include: new text end

new text begin (1) the first and last name of the child; new text end

new text begin (2) the time of day that the child was dropped off; and new text end

new text begin (3) the time of day that the child was picked up. new text end

Sec. 20.

new text begin [142B.42] VOLUNTARY RECEIVERSHIP FOR RESIDENTIAL OR NONRESIDENTIAL PROGRAMS. new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section and section 142B.43, the following terms have the meanings given. new text end

new text begin (a) "Controlling individual" has the meaning in section 142B.01, subdivision 8. When used in this section and section 142B.43, it means only those individuals controlling the residential or nonresidential program prior to the commencement of the receivership period. new text end

new text begin (b) "Physical plant" means the building or buildings in which a residential or nonresidential program is located; all equipment affixed to the building and not easily subject to transfer as specified in the building and fixed equipment tables of the depreciation guidelines; and auxiliary buildings in the nature of sheds, garages, and storage buildings located on the same site if used for purposes related to resident or client care. new text end

new text begin (c) "Related party" means a person who is a close relative of a provider or a provider group; an affiliate of a provider or a provider group; a close relative of an affiliate of a provider or provider group; or an affiliate of a close relative of an affiliate of a provider or provider group. For the purposes of this paragraph, the following terms have the meanings given them. new text end

new text begin (1) "Affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with another person. new text end

new text begin (2) "Person" means an individual, a corporation, a partnership, an association, a trust, an unincorporated organization, or a government or political subdivision. new text end

new text begin (3) "Close relative of an affiliate of a provider or provider group" means an individual whose relationship by blood, marriage, or adoption to an individual who is an affiliate to a provider or a provider group is no more remote than first cousin. new text end

new text begin (4) "Control" includes the terms "controlling," "controlled by," and "under common control with" and means the possession, direct or indirect, of the power to direct or cause the direction of the management, operations, or policies of a person, whether through the ownership of voting securities, by contract, or otherwise. new text end

new text begin (5) "Provider or provider group" means the license holder or controlling individual prior to the effective date of the receivership. new text end

new text begin Subd. 2. new text end

new text begin Receivership agreement. new text end

new text begin A majority of controlling individuals of a residential or nonresidential program licensed or certified by the commissioner may at any time ask the commissioner to assume operation of the program through appointment of a receiver. On receiving the request for a receiver, the commissioner may enter into an agreement with a majority of controlling individuals and become the receiver and operate the residential or nonresidential program under conditions acceptable to both the commissioner and the majority of controlling individuals. The agreement must specify the terms and conditions of the receivership and preserve the rights of the persons being served by the program. A receivership set up under this section terminates at the time specified by the parties to the agreement. new text end

new text begin Subd. 3. new text end

new text begin Management agreement. new text end

new text begin When the commissioner agrees to become the receiver of a residential or nonresidential program, the commissioner may enter into a management agreement with another entity or group to act as the managing agent during the receivership period. The managing agent will be responsible for the day-to-day operations of the program subject at all times to the review and approval of the commissioner. A reasonable fee may be paid to the managing agent for the performance of these services. new text end

new text begin Subd. 4. new text end

new text begin Controlling individuals; restrictions on licensure. new text end

new text begin No controlling individual of a residential or nonresidential program placed into receivership under this section shall apply for or receive a license or certification from the commissioner to operate a residential or nonresidential program for five years from the commencement of the receivership period. This subdivision does not apply to residential programs that are owned or operated by controlling individuals, that were in existence prior to the date of the receivership agreement, and that have not been placed into receivership. new text end

new text begin Subd. 5. new text end

new text begin Liability. new text end

new text begin The controlling individuals of a residential or nonresidential program placed into receivership remain liable for any claims made against the program that arose from incidents or events that occurred prior to the commencement of the receivership period. Neither the commissioner nor the managing agent of the commissioner assumes this liability. new text end

new text begin Subd. 6. new text end

new text begin Liability for financial obligations. new text end

new text begin Neither the commissioner nor the managing agent of the commissioner shall be liable for payment of any financial obligations of the residential or nonresidential program or of its controlling individuals incurred prior to the commencement of the receivership period unless such liability is expressly assumed in the receivership agreement. Those financial obligations remain the liability of the program and its controlling individuals. Financial obligations of the program incurred after the commencement of the receivership period are the responsibility of the commissioner or the managing agent of the commissioner to the extent such obligations are expressly assumed by each in the receivership or management agreements. The controlling individuals of the residential or nonresidential program remain liable for any financial obligations incurred after the commencement of the receivership period to the extent these obligations are not reimbursed in the rate paid to the program and are reasonable and necessary to the operation of the program. These financial obligations, or any other financial obligations incurred by the program prior to the commencement of the receivership period that are necessary to the continued operation of the program, may be deducted from any rental payments owed to the controlling individuals of the program as part of the receivership agreement. new text end

new text begin Subd. 7. new text end

new text begin Physical plant of the residential or nonresidential program. new text end

new text begin Occupation of the physical plant after commencement of the receivership period shall be controlled by paragraphs (a) and (b). new text end

new text begin (a) If the physical plant of a residential or nonresidential program placed in receivership is owned by a controlling individual or related party, the physical plant may be used by the commissioner or the managing agent for purposes of the receivership as long as the receivership period continues. A fair monthly rental for the physical plant shall be paid by the commissioner or managing agent to the owner of the physical plant. This fair monthly rental shall be determined by considering all relevant factors necessary to meet required arm's-length obligations of controlling individuals such as the mortgage payments owed on the physical plant, the real estate taxes, and special assessments. This rental shall not include any allowance for profit or be based on any formula that includes an allowance for profit. new text end

new text begin (b) If the owner of the physical plant of a residential or nonresidential program placed in receivership is not a related party, the controlling individual shall continue as the lessee of the property. However, during the receivership period, rental payments shall be made to the owner of the physical plant by the commissioner or the managing agent on behalf of the controlling individual. Neither the commissioner nor the managing agent assumes the obligations of the lease unless expressly stated in the receivership agreement. Should the lease expire during the receivership, the commissioner or the managing agent may negotiate a new lease for the term of the receivership period. new text end

new text begin Subd. 8. new text end

new text begin Receivership accounting. new text end

new text begin The commissioner may use the medical assistance account and funds for receivership cash flow and accounting purposes. new text end

new text begin Subd. 9. new text end

new text begin Receivership costs. new text end

new text begin The commissioner may use the accounts and funds that would have been available for the room and board, services, and program costs of persons in the program for costs, cash flow, and accounting purposes related to the receivership. new text end

Sec. 21.

new text begin [142B.43] INVOLUNTARY RECEIVERSHIP FOR RESIDENTIAL OR NONRESIDENTIAL PROGRAMS. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin (a) In addition to any other remedy provided by law, the commissioner may petition the district court in Ramsey County for an order directing the controlling individuals of a residential or nonresidential program licensed or certified by the commissioner to show cause why the commissioner should not be appointed receiver to operate the program. The petition to the district court must contain proof by affidavit that one or more of the following circumstances exists: new text end

new text begin (1) the commissioner has commenced proceedings to suspend or revoke the program's license or refused to renew the program's license; new text end

new text begin (2) there is a threat of imminent abandonment by the program or its controlling individuals; new text end

new text begin (3) the program has shown a pattern of failure to meet ongoing financial obligations such as failing to pay for food, pharmaceuticals, personnel costs, or required insurance; new text end

new text begin (4) the health, safety, or rights of the residents or persons receiving care from the program appear to be in jeopardy due to the manner in which the program may close, the program's financial condition, or violations of federal or state law or rules committed by the program; or new text end

new text begin (5) the commissioner has notified the program or its controlling individuals that the program's federal Medicare or Medicaid provider agreement will be terminated, revoked, canceled, or not renewed. new text end

new text begin (b) If the license holder, applicant, or controlling individual operates more than one program, the commissioner's petition must specify and be limited to the program for which it seeks receivership. new text end

new text begin (c) The order to show cause must be personally served on the program through its authorized agent or, in the event the authorized agent cannot be located, on any controlling individual for the program. new text end

new text begin Subd. 2. new text end

new text begin Appointment of receiver. new text end

new text begin (a) If the court finds that involuntary receivership is necessary as a means of protecting the health, safety, or rights of persons being served by the program, the court shall appoint the commissioner as receiver to operate the program. The commissioner as receiver may contract with another entity or group to act as the managing agent during the receivership period. The managing agent will be responsible for the day-to-day operations of the program subject at all times to the review and approval of the commissioner. A managing agent shall not: new text end

new text begin (1) be the license holder or controlling individual of the program; new text end

new text begin (2) have a financial interest in the program at the time of the receivership; new text end

new text begin (3) be otherwise affiliated with the program; or new text end

new text begin (4) have had a licensed program that has been ordered into receivership. new text end

new text begin (b) Notwithstanding state contracting requirements in chapter 16C, the commissioner shall establish and maintain a list of qualified persons or entities with experience in delivering services and with winding down programs under this chapter. The list shall be a resource for selecting a managing agent, and the commissioner may update the list at any time. new text end

new text begin Subd. 3. new text end

new text begin Powers and duties of receiver. new text end

new text begin (a) A receiver appointed pursuant to this section shall, within 18 months after the receivership order, determine whether to close the program or to make other provisions with the intent to keep the program open. If the receiver determines that program closure is appropriate, the commissioner shall provide for the orderly transfer of individuals served by the program to other programs or make other provisions to protect the health, safety, and rights of individuals served by the program. new text end

new text begin (b) During the receivership, the receiver or the managing agent shall correct or eliminate deficiencies in the program that the commissioner determines endanger the health, safety, or welfare of the persons being served by the program unless the correction or elimination of deficiencies at a residential program involves major alteration in the structure of the physical plant. If the correction or elimination of the deficiencies at a residential program requires major alterations in the structure of the physical plant, the receiver shall take actions designed to result in the immediate transfer of persons served by the residential program. During the period of the receivership, the receiver and the managing agent shall operate the residential or nonresidential program in a manner designed to preserve the health, safety, rights, adequate care, and supervision of the persons served by the program. new text end

new text begin (c) The receiver or the managing agent may make contracts and incur lawful expenses. new text end

new text begin (d) The receiver or the managing agent shall use the building, fixtures, furnishings, and any accompanying consumable goods in the provision of care and services to the clients during the receivership period. The receiver shall take action as is reasonably necessary to protect or conserve the tangible assets or property during receivership. new text end

new text begin (e) The receiver or the managing agent shall collect incoming payments from all sources and apply them to the cost incurred in the performance of the functions of the receivership, including the fee set under subdivision 7. No security interest in any real or personal property comprising the program or contained within it, or in any fixture of the physical plant, shall be impaired or diminished in priority by the receiver or the managing agent. new text end

new text begin (f) The receiver has authority to hire, direct, manage, and discharge any employees of the program, including management-level staff for the program. new text end

new text begin (g) The commissioner, as the receiver appointed by the court, may hire a managing agent to work on the commissioner's behalf to operate the program during the receivership. The managing agent is entitled to a reasonable fee. The receiver and managing agent shall be liable only in an official capacity for injury to persons and property by reason of the conditions of the program. The receiver and managing agent shall not be personally liable, except for gross negligence or intentional acts. The commissioner shall assist the managing agent in carrying out the managing agent's duties. new text end

new text begin Subd. 4. new text end

new text begin Liability. new text end

new text begin The provisions contained in section 142B.42, subdivision 5, shall also apply to receiverships ordered according to this section. new text end

new text begin Subd. 5. new text end

new text begin Liability for financial obligations. new text end

new text begin The provisions contained in section 142B.42, subdivision 6, also apply to receiverships ordered according to this section. new text end

new text begin Subd. 6. new text end

new text begin Physical plant of the program. new text end

new text begin Occupation of the physical plant under an involuntary receivership shall be governed by paragraphs (a) and (b). new text end

new text begin (a) The physical plant owned by a controlling individual of the program or related party must be made available for the use of the program throughout the receivership period. The court shall determine a fair monthly rental for the physical plant, taking into account all relevant factors necessary to meet required arm's-length obligations of controlling individuals such as mortgage payments, real estate taxes, and special assessments. The rental fee must be paid by the receiver to the appropriate controlling individuals or related parties for each month that the receivership remains in effect. No payment made to a controlling individual or related party by the receiver or the managing agent or any state agency during a period of the receivership shall include any allowance for profit or be based on any formula that includes an allowance for profit. new text end

new text begin (b) If the owner of the physical plant of a program is not a related party, the court shall order the controlling individual to continue as the lessee of the property during the receivership period. Rental payments during the receivership period shall be made to the owner of the physical plant by the commissioner or the managing agent on behalf of the controlling individual. new text end

new text begin Subd. 7. new text end

new text begin Fee. new text end

new text begin A receiver appointed under an involuntary receivership or the managing agent is entitled to a reasonable fee as determined by the court. new text end

new text begin Subd. 8. new text end

new text begin Termination. new text end

new text begin An involuntary receivership terminates 18 months after the date on which it was ordered or at any other time designated by the court or when any of the following events occurs: new text end

new text begin (1) the commissioner determines that the program's license or certification application should be granted or should not be suspended or revoked; new text end

new text begin (2) a new license or certification is granted to the program; new text end

new text begin (3) the commissioner determines that all persons residing in a residential program have been provided with alternative residential programs or that all persons receiving services in a nonresidential program have been referred to other programs; or new text end

new text begin (4) the court determines that the receivership is no longer necessary because the conditions that gave rise to the receivership no longer exist. new text end

new text begin Subd. 9. new text end

new text begin Emergency procedure. new text end

new text begin (a) If it appears from the petition filed under subdivision 1, from an affidavit or affidavits filed with the petition, or from testimony of witnesses under oath if the court determines it necessary, that there is probable cause to believe that an emergency exists in a residential or nonresidential program, the court shall issue a temporary order for appointment of a receiver within two days after receipt of the petition. new text end

new text begin (b) Notice of the petition must be served on the authorized agent of the program that is subject to the receivership petition or, if the authorized agent is not immediately available for service, on at least one of the controlling individuals for the program. A hearing on the petition must be held within five days after notice is served unless the authorized agent or other controlling individual consents to a later date. After the hearing, the court may continue, modify, or terminate the temporary order. new text end

new text begin Subd. 10. new text end

new text begin Receivership costs. new text end

new text begin The commissioner may use the accounts and funds that would have been available for the room and board, services, and program costs of persons in the program for costs, cash flow, and accounting purposes related to the receivership. new text end

new text begin Subd. 11. new text end

new text begin Controlling individuals; restrictions on licensure. new text end

new text begin No controlling individual of a program placed into receivership under this section may apply for or receive a license or certification to operate a residential or nonresidential program for five years from the commencement of the receivership period. This subdivision does not apply to programs that are owned or operated by controlling individuals that were in existence before the date of the receivership agreement, and that have not been placed into receivership. new text end

Sec. 22.

new text begin [142B.44] FIRE MARSHAL INSPECTION. new text end

new text begin When licensure under this chapter or certification under chapter 142C 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 holder or license-exempt child care center certification holder. 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 end

Sec. 23.

new text begin [142B.45] CRIB SAFETY REQUIREMENTS. new text end

new text begin Subdivision 1. new text end

new text begin Consumer product safety web link. new text end

new text begin The commissioners of children, youth, and families and human services shall maintain a link from the licensing division website to the United States Consumer Product Safety Commission website that addresses crib safety information. new text end

Sec. 24.

new text begin [142B.46] REDUCTION OF RISK OF SUDDEN UNEXPECTED INFANT DEATH IN LICENSED PROGRAMS. new text end

new text begin (a) When a license holder is placing an infant to sleep, the license holder must place the infant on the infant's back, unless the license holder has documentation from the infant's physician, advanced practice registered nurse, or physician assistant directing an alternative sleeping position for the infant. The physician, advanced practice registered nurse, or physician assistant directive must be on a form developed by the commissioner and must remain on file at the licensed location. An infant who independently rolls onto its stomach after being placed to sleep on its back may be allowed to remain sleeping on its stomach if the infant is at least six months of age or the license holder has a signed statement from the parent indicating that the infant regularly rolls over at home. new text end

new text begin (b) The license holder must place the infant in a crib directly on a firm mattress with a fitted sheet that is appropriate to the mattress size, that fits tightly on the mattress, and overlaps the underside of the mattress so it cannot be dislodged by pulling on the corner of the sheet with reasonable effort. The license holder must not place anything in the crib with the infant except for the infant's pacifier, as defined in Code of Federal Regulations, title 16, part 1511. The pacifier must be free from any sort of attachment. The requirements of this section apply to license holders serving infants younger than one year of age. Licensed child care providers must meet the crib requirements under section 142B.45. A correction order shall not be issued under this paragraph unless there is evidence that a violation occurred when an infant was present in the license holder's care. new text end

new text begin (c) If an infant falls asleep before being placed in a crib, the license holder must move the infant to a crib as soon as practicable, and must keep the infant within sight of the license holder until the infant is placed in a crib. When an infant falls asleep while being held, the license holder must consider the supervision needs of other children in care when determining how long to hold the infant before placing the infant in a crib to sleep. The sleeping infant must not be in a position where the airway may be blocked or with anything covering the infant's face. new text end

new text begin (d) When a license holder places an infant under one year of age down to sleep, the infant's clothing or sleepwear must not have weighted materials, a hood, or a bib. new text end

new text begin (e) A license holder may place an infant under one year of age down to sleep wearing a helmet if the license holder has signed documentation by a physician, advanced practice registered nurse, physician assistant, licensed occupational therapist, or licensed physical therapist on a form developed by the commissioner. new text end

new text begin (f) Placing a swaddled infant down to sleep in a licensed setting is not recommended for an infant of any age and is prohibited for any infant who has begun to roll over independently. However, with the written consent of a parent or guardian according to this paragraph, a license holder may place the infant who has not yet begun to roll over on its own down to sleep in a swaddle. A swaddle is defined as a one-piece sleepwear that wraps over the infant's arms, fastens securely only across the infant's upper torso, and does not constrict the infant's hips or legs. If a swaddle is used by a license holder, the license holder must ensure that it meets the requirements of paragraph (d) and is not so tight that it restricts the infant's ability to breathe or so loose that the fabric could cover the infant's nose and mouth. Prior to any use of swaddling for sleep by a provider licensed under this chapter, the license holder must obtain informed written consent for the use of swaddling from the parent or guardian of the infant on a form developed by the commissioner. new text end

new text begin (g) A license holder may request a variance to this section to permit the use of a cradleboard when requested by a parent or guardian for a cultural accommodation. A variance for the use of a cradleboard may be issued only by the commissioner licensing the program. The variance request must be submitted on a form developed by the commissioner in partnership with Tribal welfare agencies and the Department of Health. new text end

Sec. 25.

new text begin [142B.49] CARE OF INDIVIDUALS ON MEDICAL MONITORING EQUIPMENT. new text end

new text begin Subdivision 1. new text end

new text begin Licensed foster care and respite care. new text end

new text begin This section applies to foster care agencies and licensed foster care providers who place, supervise, or care for individuals who rely on medical monitoring equipment to sustain life or monitor a medical condition that could become life-threatening without proper use of the medical equipment in respite care or foster care. new text end

new text begin Subd. 2. new text end

new text begin Foster care agency requirements. new text end

new text begin In order for an agency to place an individual who relies on medical equipment to sustain life or monitor a medical condition that could become life-threatening without proper use of the medical equipment with a foster care provider, the agency must ensure that the foster care provider has received the training to operate such equipment as observed and confirmed by a qualified source, and that the provider: new text end

new text begin (1) is currently caring for an individual who is using the same equipment in the foster home; or new text end

new text begin (2) has written documentation that the foster care provider has cared for an individual who relied on such equipment within the past six months; or new text end

new text begin (3) has successfully completed training with the individual being placed with the provider. new text end

new text begin Subd. 3. new text end

new text begin Foster care provider requirements. new text end

new text begin A foster care provider shall not care for an individual who relies on medical equipment to sustain life or monitor a medical condition unless the provider has received the training to operate such equipment as observed and confirmed by a qualified source, and: new text end

new text begin (1) is currently caring for an individual who is using the same equipment in the foster home; or new text end

new text begin (2) has written documentation that the foster care provider has cared for an individual who relied on such equipment within the past six months; or new text end

new text begin (3) has successfully completed training with the individual being placed with the provider. new text end

new text begin Subd. 4. new text end

new text begin Qualified source definition. new text end

new text begin For purposes of this section, a "qualified source" includes a health care professional or an individual who provides training on such equipment. new text end

new text begin Subd. 5. new text end

new text begin Foster care provider training and skills form. new text end

new text begin The agency supervising the foster care provider shall keep a training and skills form on file for each foster care provider and update the form annually. The agency placing the individual shall obtain a copy of the training and skills form from the foster care provider or the agency supervising the foster care provider and shall keep it and any updated information on file for the duration of the placement. The form must be made available to the parents or the primary caregiver and social worker of the individual, or the individual, whichever is applicable, in order to make an informed placement decision. The agency shall use the training and skills form developed by the commissioner of children, youth, and families. new text end

Sec. 26.

new text begin [142B.50] DISCLOSURE OF COMMUNICABLE DISEASE. new text end

new text begin Subdivision 1. new text end

new text begin Licensed foster care. new text end

new text begin This section applies to county agencies, private child-placing agencies, and individuals who place children or youth who have a known communicable disease, as defined in section 144.4172, subdivision 2, in foster care settings licensed under this chapter. new text end

new text begin Subd. 2. new text end

new text begin Placing agency's or individual's duties. new text end

new text begin Notwithstanding sections 144.291 to 144.298, before a county agency, private child-placing agency, or individual places a child or youth with a known communicable disease with a licensed foster care provider, the agency or individual must: new text end

new text begin (1) disclose to the foster care license holder the child's communicable disease; and new text end

new text begin (2) determine that the foster care provider has the ability to provide care to the child or youth. new text end

Sec. 27.

new text begin [142B.51] CHILD PASSENGER RESTRAINT SYSTEMS. new text end

new text begin Subdivision 1. new text end

new text begin Seat belt and child passenger restraint system use. new text end

new text begin When a child is transported, a license holder must comply with all seat belt and child passenger restraint system requirements under sections 169.685 and 169.686. new text end

new text begin Subd. 2. new text end

new text begin Child passenger restraint systems; training requirement. new text end

new text begin (a) Programs licensed by the Department of Human Services under chapter 245A or the Department of Children, Youth, and Families under this chapter and Minnesota Rules, chapter 2960, that serve a child or children under eight years of age must document training that fulfills the requirements in this subdivision. new text end

new text begin (b) Before a license holder, staff person, or caregiver transports a child or children under age eight 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. new text end

new text begin (c) Training required under this section must be completed at orientation or initial training 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. new text end

new text begin (d) Training under paragraph (c) must be provided by individuals who are certified and approved by the Office of Traffic Safety within the Department of Public Safety. License holders may obtain a list of certified and approved trainers through the Department of Public Safety website or by contacting the agency. new text end

new text begin (e) Notwithstanding paragraph (a), for an emergency relative placement under section 142B.06, 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

Sec. 28.

new text begin [142B.52] PRONE RESTRAINT PROHIBITION. new text end

new text begin Programs licensed under this chapter must comply with the requirements of section 245A.211. new text end

Sec. 29.

new text begin [142B.53] MANDATORY REPORTING. new text end

new text begin Any individual engaging in licensing functions and activities under this chapter, including authorities delegated under section 142B.30, must immediately report any suspected fraud to county children, youth, and families investigators or the Department of Children, Youth, and Families Office of Inspector General. new text end

Sec. 30.

new text begin [142B.54] REQUIREMENTS; MALTREATMENT OF MINORS OR VULNERABLE ADULTS. new text end

new text begin Subdivision 1. new text end

new text begin Maltreatment of minors internal review. new text end

new text begin Except for family child care settings and foster care for children in the license holder's residence, license holders serving children shall: new text end

new text begin (1) establish and maintain policies and procedures to ensure that an internal review is completed within 30 calendar days and that corrective action is taken if necessary to protect the health and safety of children in care when the facility has reason to know that an internal or external report of alleged or suspected maltreatment has been made. The review must include an evaluation of whether: new text end

new text begin (i) related policies and procedures were followed; new text end

new text begin (ii) the policies and procedures were adequate; new text end

new text begin (iii) there is a need for additional staff training; new text end

new text begin (iv) the reported event is similar to past events with the children or the services involved; and new text end

new text begin (v) there is a need for corrective action by the license holder to protect the health and safety of children in care. new text end

new text begin Based on the results of this review, the license holder must develop, document, and implement a corrective action plan designed to correct current lapses and prevent future lapses in performance by individuals or the license holder, if any; new text end

new text begin (2) identify the primary and secondary person or position who will ensure that, when required, internal reviews are completed. The secondary person shall be involved when there is reason to believe that the primary person was involved in the alleged or suspected maltreatment; and new text end

new text begin (3) document and make internal reviews accessible to the commissioner immediately upon the commissioner's request. For the purposes of this section, the documentation provided to the commissioner by the license holder may consist of a completed checklist that verifies completion of each of the requirements of the review. new text end

new text begin Subd. 2. new text end

new text begin Maltreatment of minors ongoing training requirement. new text end

new text begin (a) In addition to the orientation training required by the applicable licensing rules and statutes, private child-placing agency license holders must provide a training annually on the maltreatment of minors reporting requirements and definitions in chapter 260E to each mandatory reporter, as described in section 260E.06, subdivision 1. new text end

new text begin (b) In addition to the orientation training required by the applicable licensing rules and statutes, all family child foster care license holders and caregivers and foster residence setting staff and volunteers who are mandatory reporters as described in section 260E.06, subdivision 1, must complete training each year on the maltreatment of minors reporting requirements and definitions in chapter 260E. new text end

new text begin Subd. 3. new text end

new text begin Vulnerable adults. new text end

new text begin License holders serving vulnerable adults are subject to the requirements of section 245A.65. new text end

Sec. 31.

new text begin [142B.80] CHILD FOSTER CARE TRAINING REQUIREMENT; MENTAL HEALTH TRAINING; FETAL ALCOHOL SPECTRUM DISORDERS TRAINING. new text end

new text begin Prior to a nonemergency placement of a child in a foster care home, the child foster care license holder and caregivers in foster family and treatment foster care settings, and all staff providing care in foster residence settings must complete two hours of training that addresses the causes, symptoms, and key warning signs of mental health disorders; cultural considerations; and effective approaches for dealing with a child's behaviors. At least one hour of the annual training requirement for the foster family license holder and caregivers, and foster residence staff must be on children's mental health issues and treatment. Except for providers and services under chapter 245D, the annual training must also include at least one hour of training on fetal alcohol spectrum disorders, which must be counted toward the 12 hours of required in-service training per year. Short-term substitute caregivers are exempt from these requirements. Training curriculum shall be approved by the commissioner of children, youth, and families. new text end

Sec. 32.

Minnesota Statutes 2023 Supplement, section 245A.02, subdivision 5a, is amended to read:

Subd. 5a.

Controlling individual.

(a) "Controlling individual" means an owner of a program or service provider licensed under this chapter and the following individuals, if applicable:

(1) each officer of the organization, including the chief executive officer and chief financial officer;

(2) the individual designated as the authorized agent under section 245A.04, subdivision 1, paragraph (b);

(3) the individual designated as the compliance officer under section 256B.04, subdivision 21, paragraph (g);

(4) each managerial official whose responsibilities include the direction of the management or policies of a program;new text begin andnew text end

deleted text begin (5) the individual designated as the primary provider of care for a special family child care program under section 245A.14, subdivision 4, paragraph (d); and deleted text end

deleted text begin (6)deleted text end new text begin (5)new text end the president and treasurer of the board of directors of a nonprofit corporation.

(b) Controlling individual does not include:

(1) a bank, savings bank, trust company, savings association, credit union, industrial loan and thrift company, investment banking firm, or insurance company unless the entity operates a program directly or through a subsidiary;

(2) an individual who is a state or federal official, or state or federal employee, or a member or employee of the governing body of a political subdivision of the state or federal government that operates one or more programs, unless the individual is also an officer, owner, or managerial official of the program, receives remuneration from the program, or owns any of the beneficial interests not excluded in this subdivision;

(3) an individual who owns less than five percent of the outstanding common shares of a corporation:

(i) whose securities are exempt under section 80A.45, clause (6); or

(ii) whose transactions are exempt under section 80A.46, clause (2);

(4) an individual who is a member of an organization exempt from taxation under section 290.05, unless the individual is also an officer, owner, or managerial official of the program or owns any of the beneficial interests not excluded in this subdivision. This clause does not exclude from the definition of controlling individual an organization that is exempt from taxation; or

(5) an employee stock ownership plan trust, or a participant or board member of an employee stock ownership plan, unless the participant or board member is a controlling individual according to paragraph (a).

(c) For purposes of this subdivision, "managerial official" means an individual who has the decision-making authority related to the operation of the program, and the responsibility for the ongoing management of or direction of the policies, services, or employees of the program. A site director who has no ownership interest in the program is not considered to be a managerial official for purposes of this definition.

Sec. 33.

Minnesota Statutes 2022, section 245A.02, subdivision 6e, is amended to read:

Subd. 6e.

Foster residence setting.

"Foster residence setting" has the meaning given in Minnesota Rules, part 2960.3010, subpart 26, and includes settings licensed by the commissioner of deleted text begin human servicesdeleted text end new text begin children, youth, and familiesnew text end or the commissioner of corrections.

Sec. 34.

Minnesota Statutes 2022, section 245A.03, subdivision 1, is amended to read:

Subdivision 1.

License required.

Unless licensed by the commissioner under this chapter, an individual, organization, or government entity must not:

(1) operate a residential or a nonresidential program;

(2) receive a child or adult for care, supervision, or placement in foster care deleted text begin or adoptiondeleted text end ;new text begin or new text end

deleted text begin (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 deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end advertise a residential or nonresidential program.

Sec. 35.

Minnesota Statutes 2023 Supplement, section 245A.03, subdivision 2, is amended to read:

Subd. 2.

Exclusion from licensure.

(a) This chapter does not apply to:

(1) residential or nonresidential programs that are provided to a person by an individual who is related deleted text begin unless the residential program is a child foster care placement made by a local social services agency or a licensed child-placing agency, except as provided in subdivision 2adeleted text end ;

(2) nonresidential programs that are provided by an unrelated individual to persons from a single related family;

(3) residential or nonresidential programs that are provided to adults who do not misuse substances or have a substance use disorder, a mental illness, a developmental disability, a functional impairment, or a physical disability;

(4) sheltered workshops or work activity programs that are certified by the commissioner of employment and economic development;

(5) programs operated by a public school for children 33 months or older;

(6) nonresidential programs primarily for children that provide care or supervision for periods of less than three hours a day while the child's parent or legal guardian is in the same building as the nonresidential program or present within another building that is directly contiguous to the building in which the nonresidential program is located;

(7) nursing homes or hospitals licensed by the commissioner of health except as specified under section 245A.02;

(8) board and lodge facilities licensed by the commissioner of health that do not provide children's residential services under Minnesota Rules, chapter 2960, mental health or substance use disorder treatment;

deleted text begin (9) homes providing programs for persons placed by a county or a licensed agency for legal adoption, unless the adoption is not completed within two years; deleted text end

deleted text begin (10)deleted text end new text begin (9)new text end programs licensed by the commissioner of corrections;

deleted text begin (11)deleted text end new text begin (10)new text end recreation programs for children or adults that are operated or approved by a park and recreation board whose primary purpose is to provide social and recreational activities;

deleted text begin (12) programs operated by a school as defined in section 120A.22, subdivision 4; YMCA as defined in section 315.44; YWCA as defined in section 315.44; or JCC as defined in section 315.51, whose primary purpose is to provide child care or services to school-age children; deleted text end

deleted text begin (13) Head Start nonresidential programs which operate for less than 45 days in each calendar year; deleted text end

deleted text begin (14)deleted text end new text begin (11)new text end noncertified boarding care homes unless they provide services for five or more persons whose primary diagnosis is mental illness or a developmental disability;

deleted text begin (15)deleted text end new text begin (12)new text end programs for children such as scouting, boys clubs, girls clubs, and sports and art programs, and nonresidential programs for children provided for a cumulative total of less than 30 days in any 12-month period;

deleted text begin (16)deleted text end new text begin (13)new text end residential programs for persons with mental illness, that are located in hospitals;

deleted text begin (17) the religious instruction of school-age children; Sabbath or Sunday schools; or the congregate care of children by a church, congregation, or religious society during the period used by the church, congregation, or religious society for its regular worship; deleted text end

deleted text begin (18)deleted text end new text begin (14)new text end camps licensed by the commissioner of health under Minnesota Rules, chapter 4630;

deleted text begin (19)deleted text end new text begin (15)new text end mental health outpatient services for adults with mental illness or children with emotional disturbance;

deleted text begin (20)deleted text end new text begin (16)new text end residential programs serving school-age children whose sole purpose is cultural or educational exchange, until the commissioner adopts appropriate rules;

deleted text begin (21)deleted text end new text begin (17)new text end community support services programs as defined in section 245.462, subdivision 6, and family community support services as defined in section 245.4871, subdivision 17;

deleted text begin (22) the placement of a child by a birth parent or legal guardian in a preadoptive home for purposes of adoption as authorized by section 259.47; deleted text end

deleted text begin (23)deleted text end new text begin (18)new text end settings registered under chapter 144D which provide home care services licensed by the commissioner of health to fewer than seven adults;

deleted text begin (24)deleted text end new text begin (19)new text end substance use disorder treatment activities of licensed professionals in private practice as defined in section 245G.01, subdivision 17;

deleted text begin (25)deleted text end new text begin (20)new text end consumer-directed community support service funded under the Medicaid waiver for persons with developmental disabilities when the individual who provided the service is:

(i) the same individual who is the direct payee of these specific waiver funds or paid by a fiscal agent, fiscal intermediary, or employer of record; and

(ii) not otherwise under the control of a residential or nonresidential program that is required to be licensed under this chapter when providing the service;

deleted text begin (26) a program serving only children who are age 33 months or older, that is operated by a nonpublic school, for no more than four hours per day per child, with no more than 20 children at any one time, and that is accredited by: deleted text end

deleted text begin (i) an accrediting agency that is formally recognized by the commissioner of education as a nonpublic school accrediting organization; or deleted text end

deleted text begin (ii) an accrediting agency that requires background studies and that receives and investigates complaints about the services provided. deleted text end

deleted text begin A program that asserts its exemption from licensure under item (ii) shall, upon request from the commissioner, provide the commissioner with documentation from the accrediting agency that verifies: that the accreditation is current; that the accrediting agency investigates complaints about services; and that the accrediting agency's standards require background studies on all people providing direct contact services; deleted text end

deleted text begin (27) a program operated by a nonprofit organization incorporated in Minnesota or another state that serves youth in kindergarten through grade 12; provides structured, supervised youth development activities; and has learning opportunities take place before or after school, on weekends, or during the summer or other seasonal breaks in the school calendar. A program exempt under this clause is not eligible for child care assistance under chapter deleted text end deleted text begin 119B deleted text end deleted text begin . A program exempt under this clause must: deleted text end

deleted text begin (i) have a director or supervisor on site who is responsible for overseeing written policies relating to the management and control of the daily activities of the program, ensuring the health and safety of program participants, and supervising staff and volunteers; deleted text end

deleted text begin (ii) have obtained written consent from a parent or legal guardian for each youth participating in activities at the site; and deleted text end

deleted text begin (iii) have provided written notice to a parent or legal guardian for each youth at the site that the program is not licensed or supervised by the state of Minnesota and is not eligible to receive child care assistance payments; deleted text end

deleted text begin (28)deleted text end new text begin (21)new text end a county that is an eligible vendor under section 254B.05 to provide care coordination and comprehensive assessment services;

deleted text begin (29)deleted text end new text begin (22)new text end a recovery community organization that is an eligible vendor under section 254B.05 to provide peer recovery support services; or

deleted text begin (30) Head Start programs that serve only children who are at least three years old but not yet six years old. deleted text end

new text begin (23) programs licensed by the commissioner of children, youth, and families in chapter 142B. new text end

(b) For purposes of paragraph (a), clause (6), a building is directly contiguous to a building in which a nonresidential program is located if it shares a common wall with the building in which the nonresidential program is located or is attached to that building by skyway, tunnel, atrium, or common roof.

deleted text begin (c)deleted text end new text begin (b)new text end Except for the home and community-based services identified in section 245D.03, subdivision 1, nothing in this chapter shall be construed to require licensure for any services provided and funded according to an approved federal waiver plan where licensure is specifically identified as not being a condition for the services and funding.

Sec. 36.

Minnesota Statutes 2022, section 245A.03, subdivision 4, is amended to read:

Subd. 4.

Excluded child care programs; right to seek licensure.

Nothing in this section shall prohibit a child care program that is excluded from licensure under subdivision 2, paragraph (a), clause (2), deleted text begin or under Laws 1997, chapter 248, section 46, as amended by Laws 1997, First Special Session chapter 5, section 10,deleted text end from seeking a license under this chapter. The commissioner shall ensure that any application received from such an excluded provider is processed in the same manner as all other applications for licensed family day care.

Sec. 37.

Minnesota Statutes 2023 Supplement, section 245A.03, subdivision 7, is amended to read:

Subd. 7.

Licensing moratorium.

(a) The commissioner shall not issue an initial license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under this chapter for a physical location that will not be the primary residence of the license holder for the entire period of licensure. If a deleted text begin family child foster care home ordeleted text end family adult foster care home license is issued during this moratorium, and the license holder changes the license holder's primary residence away from the physical location of the foster care license, the commissioner shall revoke the license according to section 245A.07. The commissioner shall not issue an initial license for a community residential setting licensed under chapter 245D. When approving an exception under this paragraph, the commissioner shall consider the resource need determination process in paragraph (h), the availability of foster care licensed beds in the geographic area in which the licensee seeks to operate, the results of a person's choices during their annual assessment and service plan review, and the recommendation of the local county board. The determination by the commissioner is final and not subject to appeal. Exceptions to the moratorium include:

(1) a license for a person in a foster care setting that is not the primary residence of the license holder and where at least 80 percent of the residents are 55 years of age or older;

(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or community residential setting licenses replacing adult foster care licenses in existence on December 31, 2013, and determined to be needed by the commissioner under paragraph (b);

(3) new foster care licenses or community residential setting licenses determined to be needed by the commissioner under paragraph (b) for the closure of a nursing facility, ICF/DD, or regional treatment center; restructuring of state-operated services that limits the capacity of state-operated facilities; or allowing movement to the community for people who no longer require the level of care provided in state-operated facilities as provided under section 256B.092, subdivision 13, or 256B.49, subdivision 24;

(4) new foster care licenses or community residential setting licenses determined to be needed by the commissioner under paragraph (b) for persons requiring hospital-level care; or

(5) new foster care licenses or community residential setting licenses for people receiving customized living or 24-hour customized living services under the brain injury or community access for disability inclusion waiver plans under section 256B.49 or elderly waiver plan under chapter 256S and residing in the customized living setting for which a license is required. A customized living service provider subject to this exception may rebut the presumption that a license is required by seeking a reconsideration of the commissioner's determination. The commissioner's disposition of a request for reconsideration is final and not subject to appeal under chapter 14. The exception is available until December 31, 2023. This exception is available when:

(i) the person's customized living services are provided in a customized living service setting serving four or fewer people in a single-family home operational on or before June 30, 2021. Operational is defined in section 256B.49, subdivision 28;

(ii) the person's case manager provided the person with information about the choice of service, service provider, and location of service, including in the person's home, to help the person make an informed choice; and

(iii) the person's services provided in the licensed foster care or community residential setting are less than or equal to the cost of the person's services delivered in the customized living setting as determined by the lead agency.

(b) The commissioner shall determine the need for newly licensed foster care homes or community residential settings as defined under this subdivision. As part of the determination, the commissioner shall consider the availability of foster care capacity in the area in which the licensee seeks to operate, and the recommendation of the local county board. The determination by the commissioner must be final. A determination of need is not required for a change in ownership at the same address.

(c) When an adult resident served by the program moves out of a foster home that is not the primary residence of the license holder according to section 256B.49, subdivision 15, paragraph (f), or the adult community residential setting, the county shall immediately inform the Department of Human Services Licensing Division. The department may decrease the statewide licensed capacity for adult foster care settings.

(d) Residential settings that would otherwise be subject to the decreased license capacity established in paragraph (c) shall be exempt if the license holder's beds are occupied by residents whose primary diagnosis is mental illness and the license holder is certified under the requirements in subdivision 6a or section 245D.33.

(e) A resource need determination process, managed at the state level, using the available data required by section 144A.351, and other data and information shall be used to determine where the reduced capacity determined under section 256B.493 will be implemented. The commissioner shall consult with the stakeholders described in section 144A.351, and employ a variety of methods to improve the state's capacity to meet the informed decisions of those people who want to move out of corporate foster care or community residential settings, long-term service needs within budgetary limits, including seeking proposals from service providers or lead agencies to change service type, capacity, or location to improve services, increase the independence of residents, and better meet needs identified by the long-term services and supports reports and statewide data and information.

(f) At the time of application and reapplication for licensure, the applicant and the license holder that are subject to the moratorium or an exclusion established in paragraph (a) are required to inform the commissioner whether the physical location where the foster care will be provided is or will be the primary residence of the license holder for the entire period of licensure. If the primary residence of the applicant or license holder changes, the applicant or license holder must notify the commissioner immediately. The commissioner shall print on the foster care license certificate whether or not the physical location is the primary residence of the license holder.

(g) License holders of foster care homes identified under paragraph (f) that are not the primary residence of the license holder and that also provide services in the foster care home that are covered by a federally approved home and community-based services waiver, as authorized under chapter 256S or section 256B.092 or 256B.49, must inform the human services licensing division that the license holder provides or intends to provide these waiver-funded services.

(h) The commissioner may adjust capacity to address needs identified in section 144A.351. Under this authority, the commissioner may approve new licensed settings or delicense existing settings. Delicensing of settings will be accomplished through a process identified in section 256B.493.

(i) The commissioner must notify a license holder when its corporate foster care or community residential setting licensed beds are reduced under this section. The notice of reduction of licensed beds must be in writing and delivered to the license holder by certified mail or personal service. The notice must state why the licensed beds are reduced and must inform the license holder of its right to request reconsideration by the commissioner. The license holder's request for reconsideration must be in writing. If mailed, the request for reconsideration must be postmarked and sent to the commissioner within 20 calendar days after the license holder's receipt of the notice of reduction of licensed beds. If a request for reconsideration is made by personal service, it must be received by the commissioner within 20 calendar days after the license holder's receipt of the notice of reduction of licensed beds.

(j) The commissioner shall not issue an initial license for children's residential treatment services licensed under Minnesota Rules, parts 2960.0580 to 2960.0700, under this chapter for a program that Centers for Medicare and Medicaid Services would consider an institution for mental diseases. Facilities that serve only private pay clients are exempt from the moratorium described in this paragraph. The commissioner has the authority to manage existing statewide capacity for children's residential treatment services subject to the moratorium under this paragraph and may issue an initial license for such facilities if the initial license would not increase the statewide capacity for children's residential treatment services subject to the moratorium under this paragraph.

Sec. 38.

Minnesota Statutes 2022, section 245A.035, subdivision 4, is amended to read:

Subd. 4.

Applicant study.

When the county agency has received the information required by section 245C.05, the county agency shall submit the information to the commissioner new text begin of human services new text end according to section 245C.05.

Sec. 39.

Minnesota Statutes 2023 Supplement, section 245A.04, subdivision 4, is amended to read:

Subd. 4.

Inspections; waiver.

(a) Before issuing a license under this chapter, the commissioner shall conduct an inspection of the program. The inspection must include but is not limited to:

(1) an inspection of the physical plant;

(2) an inspection of records and documents;

(3) observation of the program in operation; and

(4) an inspection for the health, safety, and fire standards in licensing requirements for a child care license holder.

(b) The observation in paragraph (a), clause (3), is not required prior to issuing a license under subdivision 7. If the commissioner issues a license under this chapter, these requirements must be completed within one year after the issuance of the license.

deleted text begin (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 or potential violations of law or rule observed during the inspection and offer technical assistance on how to comply with applicable laws and rules. 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. deleted text end

deleted 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. deleted text end

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

deleted text begin (f) 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 deleted text end deleted text begin 9502 deleted text end deleted text begin or deleted text end deleted text begin 9503 deleted text end deleted text begin , and the number of deaths, serious injuries, and instances of substantiated child maltreatment that occurred in licensed child care settings each year. deleted text end

Sec. 40.

Minnesota Statutes 2023 Supplement, 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 license consistent with this section or, if applicable, a temporary change of ownership license under section 245A.043. At minimum, the license shall state:

(1) the name of the license holder;

(2) the address of the program;

(3) the effective date and expiration date of the license;

(4) the type of license;

(5) the maximum number and ages of persons that may receive services from the program; and

(6) any special conditions of licensure.

(b) The commissioner may issue a license for a period not to exceed two years if:

(1) the commissioner is unable to conduct the observation required by subdivision 4, paragraph (a), clause (3), 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.

(d) Except as provided in paragraphs (i) and (j), the commissioner shall not issue a license if the applicant, license holder, or an affiliated controlling individual has:

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

(2) been denied a license under this chapterdeleted text begin ,deleted text end new text begin or chapter 142Bnew text end within the past two years;

(3) had a license issued under this chapternew text begin or chapter 142Bnew text end revoked within the past five years; or

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

When a license issued under this chapternew text begin or chapter 142Bnew text end is revoked, the license holder and each affiliated controlling individual with a revoked license may not hold any license under chapter 245A for five years following the revocation, and other licenses held by the applicant or license holder or licenses affiliated with each controlling individual shall also be revoked.

(e) Notwithstanding paragraph (d), the commissioner may elect not to revoke a license affiliated with a license holder or controlling individual that had a license revoked within the past five years if the commissioner determines that (1) the license holder or controlling individual is operating the program in substantial compliance with applicable laws and rules and (2) the program's continued operation is in the best interests of the community being served.

(f) Notwithstanding paragraph (d), the commissioner may issue a new license in response to an application that is affiliated with an applicant, license holder, or controlling individual that had an application denied within the past two years or a license revoked within the past five years if the commissioner determines that (1) the applicant or controlling individual has operated one or more programs in substantial compliance with applicable laws and rules and (2) the program's operation would be in the best interests of the community to be served.

(g) In determining whether a program's operation would be in the best interests of the community to be served, the commissioner shall consider factors such as the number of persons served, the availability of alternative services available in the surrounding community, the management structure of the program, whether the program provides culturally specific services, and other relevant factors.

(h) The commissioner shall not issue or reissue a license under this chapter if an individual living in the household where the 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.

(i) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license issued under this chapter 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.

(j) Notwithstanding paragraph (i), 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 (k) 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 end

deleted text begin (l)deleted text end new text begin (k)new text end Unless otherwise specified by statute, all licenses issued under this chapter 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 (m)deleted text end new text begin (l)new text end The commissioner shall not issue or reissue a license under this chapter if it has been determined that a Tribal licensing authority has established jurisdiction to license the program or service.

new text begin (m) The commissioner of human services may coordinate and share data with the commissioner of children, youth, and families to enforce this section. new text end

Sec. 41.

Minnesota Statutes 2022, section 245A.04, subdivision 9, is amended to read:

Subd. 9.

Variances.

deleted text begin (a)deleted text end The commissioner may grant variances to rules that do not affect the health or safety of persons in a licensed program if the following conditions are met:

(1) the variance must be requested by an applicant or license holder on a form and in a manner prescribed by the commissioner;

(2) the request for a variance must include the reasons that the applicant or license holder cannot comply with a requirement as stated in the rule and the alternative equivalent measures that the applicant or license holder will follow to comply with the intent of the rule; and

(3) the request must state the period of time for which the variance is requested.

The commissioner may grant a permanent variance when conditions under which the variance is requested do not affect the health or safety of persons being served by the licensed program, nor compromise the qualifications of staff to provide services. The permanent variance shall expire as soon as the conditions that warranted the variance are modified in any way. Any applicant or license holder must inform the commissioner of any changes or modifications that have occurred in the conditions that warranted the permanent variance. Failure to advise the commissioner shall result in revocation of the permanent variance and may be cause for other sanctions under sections 245A.06 and 245A.07.

The commissioner's decision to grant or deny a variance request is final and not subject to appeal under the provisions of chapter 14.

deleted text begin (b) The commissioner shall consider variances for child care center staff qualification requirements under Minnesota Rules, parts 9503.0032 and 9503.0033, that do not affect the health and safety of children served by the center. A variance request must be submitted to the commissioner in accordance with paragraph (a) and must include a plan for the staff person to gain additional experience, education, or training, as requested by the commissioner. When reviewing a variance request under this section, the commissioner shall consider the staff person's level of professional development, including but not limited to steps completed on the Minnesota career lattice. deleted text end

deleted text begin (c) Beginning January 1, 2021, counties shall use a uniform application form developed by the commissioner for variance requests by family child care license holders. deleted text end

Sec. 42.

Minnesota Statutes 2023 Supplement, section 245A.041, subdivision 6, is amended to read:

Subd. 6.

First date of direct contact; documentation requirements.

Except for deleted text begin family child care, family foster care for children, anddeleted text end family adult day services that the license holder provides in the license holder's residence, license holders must document the first date that a background study subject has direct contact, as defined in section 245C.02, subdivision 11, with a person served by the license holder's program. Unless this chapter otherwise requires, if the license holder does not maintain the documentation required by this subdivision in the license holder's personnel files, the license holder must provide the documentation to the commissioner upon the commissioner's request.

Sec. 43.

Minnesota Statutes 2023 Supplement, 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;

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

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

(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;new text begin ornew text end

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

deleted text begin (11) for a family foster setting, has or has an individual who is living in the household where the licensed services are provided or is otherwise subject to a background study who has nondisqualifying background study information, as described in section 245C.05, subdivision 4, that reflects on the applicant's ability to safely provide care to foster children. deleted 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, by personal service, or through the provider licensing and reporting hub. 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, by personal service, or through the provider licensing and reporting hub. 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. If the order is issued through the provider hub, the appeal must be received by the commissioner within 20 calendar days from the date the commissioner issued the order through the hub. Section 245A.08 applies to hearings held to appeal the commissioner's denial of an application.

Sec. 44.

Minnesota Statutes 2023 Supplement, 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 whodeleted text begin :deleted text end

deleted text begin (1)deleted text end does not comply with applicable law or ruledeleted text begin ;deleted text end new text begin .new text end

deleted text begin (2) has nondisqualifying background study information, as described in section 245C.05, subdivision 4, that reflects on the license holder's ability to safely provide care to foster children; or deleted text end

deleted text begin (3) has an individual living in the household where the licensed services are provided or is otherwise subject to a background study, and the individual has nondisqualifying background study information, as described in section 245C.05, subdivision 4, that reflects on the license holder's ability to safely provide care to foster children. deleted text end

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 issued under this chapter 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 issued under this chapter by the license holder prior to the completion of any investigation shall not preclude the commissioner from issuing a licensing sanction under this section or section 245A.06 at the conclusion of the investigation.

Sec. 45.

Minnesota Statutes 2023 Supplement, 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 rules including but not limited to the requirements of this chapter and chapter 245C;

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

(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;

(4) a license holder is excluded from any program administered by the commissioner under section 245.095;

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

deleted text begin (6) for a family foster setting, a license holder, or an individual living in the household where the licensed services are provided or who is otherwise subject to a background study, has nondisqualifying background study information, as described in section 245C.05, subdivision 4, that reflects on the license holder's ability to safely provide care to foster children; or deleted text end

deleted text begin (7)deleted text end new text begin (6)new text end suspension is necessary under subdivision 2a, paragraph (b), clause (2).

A license holder who has had a license issued under this chapter suspended, revoked, or has been ordered to pay a fine must be given notice of the action by certified mail, by personal service, or through the provider licensing and reporting hub. 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, by personal service, or through the provider licensing and reporting hub. 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. If the order is issued through the provider hub, the appeal must be received by the commissioner within ten calendar days from the date the commissioner issued the order through the hub. 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 (i) and (j), 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, by personal service, or through the provider licensing and reporting hub. 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. If the order is issued through the provider hub, the appeal must be received by the commissioner within ten calendar days from the date the commissioner issued the order through the hub.

(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, by personal service, or through the provider licensing and reporting hub 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 chapter 260E or the maltreatment of a vulnerable adult under section 626.557 for which the license holder is determined responsible for the maltreatment under section 260E.30, subdivision 4, paragraphs (a) and (b), 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;

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

deleted text begin (iv)deleted text end new text begin (iii)new text end 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

deleted text begin (v)deleted text end new text begin (iv)new text end 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.

Sec. 46.

Minnesota Statutes 2022, section 245A.08, subdivision 2a, is amended to read:

Subd. 2a.

Consolidated contested case hearings.

(a) When a denial of a license under section 245A.05 or a licensing sanction under section 245A.07, subdivision 3, is based on a disqualification for which reconsideration was timely requested and which was not set aside under section 245C.22, the scope of the contested case hearing shall include the disqualification and the licensing sanction or denial of a license, unless otherwise specified in this subdivision. When the licensing sanction or denial of a license is based on a determination of maltreatment under section 626.557 or chapter 260E, or a disqualification for serious or recurring maltreatment which was not set aside, the scope of the contested case hearing shall include the maltreatment determination, disqualification, and the licensing sanction or denial of a license, unless otherwise specified in this subdivision. In such cases, a fair hearing under section 256.045 shall not be conducted as provided for in sections 245C.27, 260E.33, and 626.557, subdivision 9d.

(b) deleted text begin Except for family child care and child foster care,deleted text end Reconsideration of a maltreatment determination under sections 260E.33 and 626.557, subdivision 9d, and reconsideration of a disqualification under section 245C.22, shall not be conducted when:

(1) a denial of a license under section 245A.05, or a licensing sanction under section 245A.07, is based on a determination that the license holder is responsible for maltreatment or the disqualification of a license holder is based on serious or recurring maltreatment;

(2) the denial of a license or licensing sanction is issued at the same time as the maltreatment determination or disqualification; and

(3) the license holder appeals the maltreatment determination or disqualification, and denial of a license or licensing sanction. In these cases, a fair hearing shall not be conducted under sections 245C.27, 260E.33, and 626.557, subdivision 9d. The scope of the contested case hearing must include the maltreatment determination, disqualification, and denial of a license or licensing sanction.

Notwithstanding clauses (1) to (3), if the license holder appeals the maltreatment determination or disqualification, but does not appeal the denial of a license or a licensing sanction, reconsideration of the maltreatment determination shall be conducted under sections 260E.33 and 626.557, subdivision 9d, and reconsideration of the disqualification shall be conducted under section 245C.22. In such cases, a fair hearing shall also be conducted as provided under sections 245C.27, 260E.33, and 626.557, subdivision 9d.

(c) In consolidated contested case hearings regarding sanctions issued in deleted text begin family child care, child foster care,deleted text end family adult day services, adult foster care, and community residential settings, the county attorney shall defend the commissioner's orders in accordance with section 245A.16, subdivision 4.

(d) The commissioner's final order under subdivision 5 is the final agency action on the issue of maltreatment and disqualification, including for purposes of subsequent background studies under chapter 245C and is the only administrative appeal of the final agency determination, specifically, including a challenge to the accuracy and completeness of data under section 13.04.

(e) When consolidated hearings under this subdivision involve a licensing sanction based on a previous maltreatment determination for which the commissioner has issued a final order in an appeal of that determination under section 256.045, or the individual failed to exercise the right to appeal the previous maltreatment determination under section 260E.33 or