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

CHAPTER 329--S.F.No. 2935
An act
relating to state government; making changes to human services licensing
provisions; Department of Human Services hearings; modifying background
study requirements, disqualifications, and data classifications; allowing
the commissioner of administration to transfer real property; requiring the
commissioners of human services and commerce to issue reports on consumer
satisfaction;amending Minnesota Statutes 2008, sections 144A.071, subdivision
4c; 245A.03, by adding a subdivision; 245A.07, subdivision 2a; 245A.30;
245A.66; 245B.05, subdivision 7; 245C.02, subdivision 18; 245C.27, subdivision
2; 245C.28, subdivision 3; 256B.092, subdivision 4d; 626.556, subdivision
10i; 626.557, subdivision 9d; Minnesota Statutes 2009 Supplement, sections
245A.03, subdivision 2; 245A.04, subdivisions 5, 7; 245A.07, subdivisions 1, 3;
245A.144; 245A.50, subdivision 5; 245C.15, subdivision 2; 245C.20; 245C.22,
subdivision 7; 245C.27, subdivision 1; 256.045, subdivision 3; 626.556,
subdivisions 2, 10e; repealing Minnesota Statutes 2008, section 256B.0919,
subdivision 4; Minnesota Rules, part 2500.5000.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
LICENSING

    Section 1. Minnesota Statutes 2008, section 144A.071, subdivision 4c, is amended to
read:
    Subd. 4c. Exceptions for replacement beds after June 30, 2003. (a) The
commissioner of health, in coordination with the commissioner of human services, may
approve the renovation, replacement, upgrading, or relocation of a nursing home or
boarding care home, under the following conditions:
    (1) to license and certify an 80-bed city-owned facility in Nicollet County to be
constructed on the site of a new city-owned hospital to replace an existing 85-bed facility
attached to a hospital that is also being replaced. The threshold allowed for this project
under section 144A.073 shall be the maximum amount available to pay the additional
medical assistance costs of the new facility;
    (2) to license and certify 29 beds to be added to an existing 69-bed facility in St.
Louis County, provided that the 29 beds must be transferred from active or layaway status
at an existing facility in St. Louis County that had 235 beds on April 1, 2003.
The licensed capacity at the 235-bed facility must be reduced to 206 beds, but the payment
rate at that facility shall not be adjusted as a result of this transfer. The operating payment
rate of the facility adding beds after completion of this project shall be the same as it was
on the day prior to the day the beds are licensed and certified. This project shall not
proceed unless it is approved and financed under the provisions of section 144A.073;
    (3) to license and certify a new 60-bed facility in Austin, provided that: (i) 45 of
the new beds are transferred from a 45-bed facility in Austin under common ownership
that is closed and 15 of the new beds are transferred from a 182-bed facility in Albert Lea
under common ownership; (ii) the commissioner of human services is authorized by the
2004 legislature to negotiate budget-neutral planned nursing facility closures; and (iii)
money is available from planned closures of facilities under common ownership to make
implementation of this clause budget-neutral to the state. The bed capacity of the Albert
Lea facility shall be reduced to 167 beds following the transfer. Of the 60 beds at the
new facility, 20 beds shall be used for a special care unit for persons with Alzheimer's
disease or related dementias;
    (4) to license and certify up to 80 beds transferred from an existing state-owned
nursing facility in Cass County to a new facility located on the grounds of the
Ah-Gwah-Ching campus. The operating cost payment rates for the new facility shall be
determined based on the interim and settle-up payment provisions of Minnesota Rules,
part 9549.0057, and the reimbursement provisions of section 256B.431. The property
payment rate for the first three years of operation shall be $35 per day. For subsequent
years, the property payment rate of $35 per day shall be adjusted for inflation as provided
in section 256B.434, subdivision 4, paragraph (c), as long as the facility has a contract
under section 256B.434; and
    (5) to initiate a pilot program to license and certify up to 80 beds transferred from
an existing county-owned nursing facility in Steele County relocated to the site of a new
acute care facility as part of the county's Communities for a Lifetime comprehensive plan
to create innovative responses to the aging of its population. Upon relocation to the new
site, the nursing facility shall delicense 28 beds. The property payment rate for the first
three years of operation of the new facility shall be increased by an amount as calculated
according to items (i) to (v):
    (i) compute the estimated decrease in medical assistance residents served by the
nursing facility by multiplying the decrease in licensed beds by the historical percentage
of medical assistance resident days;
    (ii) compute the annual savings to the medical assistance program from the
delicensure of 28 beds by multiplying the anticipated decrease in medical assistance
residents, determined in item (i), by the existing facility's weighted average payment rate
multiplied by 365;
    (iii) compute the anticipated annual costs for community-based services by
multiplying the anticipated decrease in medical assistance residents served by the nursing
facility, determined in item (i), by the average monthly elderly waiver service costs for
individuals in Steele County multiplied by 12;
    (iv) subtract the amount in item (iii) from the amount in item (ii);
    (v) divide the amount in item (iv) by an amount equal to the relocated nursing
facility's occupancy factor under section 256B.431, subdivision 3f, paragraph (c),
multiplied by the historical percentage of medical assistance resident days.
    For subsequent years, the adjusted property payment rate shall be adjusted for
inflation as provided in section 256B.434, subdivision 4, paragraph (c), as long as the
facility has a contract under section 256B.434.; and
(6) to consolidate and relocate nursing facility beds to a new site in Goodhue County
and to integrate these services with other community-based programs and services under a
communities for a lifetime pilot program and comprehensive plan to create innovative
responses to the aging of its population. Eighty beds in the city of Red Wing shall be
transferred from the downsizing and relocation of an existing 84-bed, hospital-owned
nursing facility and the entire closure or downsizing of beds from a 65-bed nonprofit
nursing facility in the community resulting in the delicensure of 69 beds in the two
existing facilities. Notwithstanding the carryforward of the approval authority in section
144A.073, subdivision 11, the funding approved in April 2009 by the commissioner of
health for a project in Goodhue County shall not carry forward. The closure of the 69 beds
shall not be eligible for a planned closure rate adjustment under section 256B.437. The
construction project permitted in this clause shall not be eligible for a threshold project
rate adjustment under section 256B.434, subdivision 4f. The property payment rate for
the first three years of operation of the new facility shall be increased by an amount as
calculated according to items (i) to (vi):
(i) compute the estimated decrease in medical assistance residents served by both
nursing facilities by multiplying the difference between the occupied beds of the two
nursing facilities for the reporting year ending September 30, 2009, and the projected
occupancy of the facility at 95 percent occupancy by the historical percentage of medical
assistance resident days;
(ii) compute the annual savings to the medical assistance program from the
delicensure by multiplying the anticipated decrease in the medical assistance residents,
determined in item (i), by the hospital-owned nursing facility weighted average payment
rate multiplied by 365;
(iii) compute the anticipated annual costs for community-based services by
multiplying the anticipated decrease in medical assistance residents served by the
facilities, determined in item (i), by the average monthly elderly waiver service costs for
individuals in Goodhue County multiplied by 12;
(iv) subtract the amount in item (iii) from the amount in item (ii);
(v) multiply the amount in item (iv) by 48.5 percent; and
(vi) divide the difference of the amount in item (iv) and the amount in item (v) by an
amount equal to the relocated nursing facility's occupancy factor under section 256B.431,
subdivision 3f, paragraph (c), multiplied by the historical percentage of medical assistance
resident days.
For subsequent years, the adjusted property payment rate shall be adjusted for
inflation as provided in section 256B.434, subdivision 4, paragraph (c), as long as the
facility has a contract under section 256B.434.
    (b) Projects approved under this subdivision shall be treated in a manner equivalent
to projects approved under subdivision 4a.

    Sec. 2. Minnesota Statutes 2009 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 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 2a;
    (2) nonresidential programs that are provided by an unrelated individual to persons
from a single related family;
    (3) residential or nonresidential programs that are provided to adults who do
not abuse chemicals or who do not have a chemical dependency, a mental illness, 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 services for five or more persons whose primary diagnosis is mental illness that do
not provide intensive residential treatment children's residential services under Minnesota
Rules, chapter 2960, mental health or chemical dependency treatment;
    (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;
    (10) programs licensed by the commissioner of corrections;
    (11) 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;
    (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;
    (13) Head Start nonresidential programs which operate for less than 45 days in
each calendar year;
    (14) noncertified boarding care homes unless they provide services for five or more
persons whose primary diagnosis is mental illness or a developmental disability;
    (15) 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;
    (16) residential programs for persons with mental illness, that are located in hospitals;
    (17) the religious instruction of school-age children; Sabbath or Sunday schools; or
the congregate care of children by a church, congregation, or religious society during the
period used by the church, congregation, or religious society for its regular worship;
    (18) camps licensed by the commissioner of health under Minnesota Rules, chapter
4630;
    (19) mental health outpatient services for adults with mental illness or children
with emotional disturbance;
    (20) residential programs serving school-age children whose sole purpose is cultural
or educational exchange, until the commissioner adopts appropriate rules;
    (21) unrelated individuals who provide out-of-home respite care services to persons
with developmental disabilities from a single related family for no more than 90 days in a
12-month period and the respite care services are for the temporary relief of the person's
family or legal representative;
    (22) respite care services provided as a home and community-based service to a
person with a developmental disability, in the person's primary residence;
    (23) community support services programs as defined in section 245.462, subdivision
6
, and family community support services as defined in section 245.4871, subdivision 17;
    (24) the placement of a child by a birth parent or legal guardian in a preadoptive
home for purposes of adoption as authorized by section 259.47;
    (25) settings registered under chapter 144D which provide home care services
licensed by the commissioner of health to fewer than seven adults;
    (26) chemical dependency or substance abuse treatment activities of licensed
professionals in private practice as defined in Minnesota Rules, part 9530.6405, subpart
15, when the treatment activities are not paid for by the consolidated chemical dependency
treatment fund;
(27) 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; or
    (28) 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:
    (i) an accrediting agency that is formally recognized by the commissioner of
education as a nonpublic school accrediting organization; or
    (ii) an accrediting agency that requires background studies and that receives and
investigates complaints about the services provided.
    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.
    (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.
    (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.

    Sec. 3. Minnesota Statutes 2008, section 245A.03, is amended by adding a subdivision
to read:
    Subd. 9. Permitted services by an individual who is related. Notwithstanding
subdivision 2, paragraph (a), clause (1), and subdivision 7, an individual who is related to a
person receiving supported living services may provide licensed services to that person if:
(1) the person who receives supported living services received these services in a
residential site on July 1, 2005;
(2) the services under clause (1) were provided in a corporate foster care setting for
adults and were funded by the developmental disabilities home and community-based
services waiver defined in section 256B.092;
(3) the individual who is related obtains and maintains both a license under
chapter 245B and an adult foster care license under Minnesota Rules, parts 9555.5105
to 9555.6265; and
(4) the individual who is related is not the guardian of the person receiving supported
living services.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2009 Supplement, section 245A.04, subdivision 5, is
amended to read:
    Subd. 5. Commissioner's right of access. When the commissioner is exercising
the powers conferred by this chapter and sections 245.69, 626.556, and 626.557, the
commissioner must be given access to the physical plant and grounds where the program
is provided, documents and records, including records maintained in electronic format,
persons served by the program, and staff whenever the program is in operation and the
information is relevant to inspections or investigations conducted by the commissioner.
The commissioner must be given access without prior notice and as often as the
commissioner considers necessary if the commissioner is conducting an investigation
of allegations of investigating alleged maltreatment or other, 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
tape recordings during the inspection of the program at the commissioner's expense. The
commissioner shall obtain a court order or the consent of the subject of the records or the
parents or legal guardian of the subject before photocopying hospital medical records.
Persons served by the program have the right to refuse to consent to be interviewed,
photographed, or audio or videotaped. Failure or refusal of an applicant or license holder
to fully comply with this subdivision is reasonable cause for the commissioner to deny the
application or immediately suspend or revoke the license.

    Sec. 5. Minnesota Statutes 2009 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. 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 an initial license for a period not to exceed two
years if:
(1) the commissioner is unable to conduct the evaluation or observation required
by subdivision 4, paragraph (a), clauses (3) and (4), because the program is not yet
operational;
(2) certain records and documents are not available because persons are not yet
receiving services from the program; and
(3) the applicant complies with applicable laws and rules in all other respects.
(c) A decision by the commissioner to issue a license does not guarantee that any
person or persons will be placed or cared for in the licensed program. A license shall not
be transferable to another individual, corporation, partnership, voluntary association, other
organization, or controlling individual or to another location.
(d) A license holder must notify the commissioner and obtain the commissioner's
approval before making any changes that would alter the license information listed under
paragraph (a).
(e) Except as provided in paragraphs (g) and (h), the commissioner shall not issue or
reissue a license if the applicant, license holder, or controlling individual has:
(1) been disqualified and the disqualification was not set aside and no variance has
been granted;
(2) has been denied a license within the past two years;
(3) had a license revoked within the past five years; or
(4) has an outstanding debt related to a license fee, licensing fine, or settlement
agreement for which payment is delinquent.
When a license is revoked under clause (1) or (3), the license holder and controlling
individual may not hold any license under chapter 245A or 245B for five years following
the revocation, and other licenses held by the applicant, license holder, or controlling
individual shall also be revoked.
(f) The commissioner shall not issue or reissue a license if an individual living in
the household where the licensed 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.
(g) Pursuant to section 245A.07, subdivision 1, paragraph (b), when a license 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.
(h) Notwithstanding paragraph (g), 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.
(g) (i) 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.
(h) (j) Unless otherwise specified by statute, all licenses expire at 12:01 a.m. on the
day after the expiration date stated on the license. A license holder must apply for and
be granted a new license to operate the program or the program must not be operated
after the expiration date.
(k) The commissioner shall not issue or reissue a license if it has been determined that
a tribal licensing authority has established jurisdiction to license the program or service.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 6. Minnesota Statutes 2009 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 who does not comply with applicable law or rule. When applying sanctions
authorized under this section, the commissioner shall consider the nature, chronicity, or
severity of the violation of law or rule and the effect of the violation on the health, safety,
or rights of persons served by the program.
(b) If a license holder appeals the suspension or revocation of a license and the
license holder continues to operate the program pending a final order on the appeal, and
the license expires during this time period, the commissioner shall issue the license holder
a temporary provisional license. The temporary provisional license is effective on the date
issued and expires on the date that a final order is issued. 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 the license holder prevails on the appeal and the effective period
of the previous license has expired 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 effective date of the new license shall be
retroactive to the date the license would have shown had no sanction been initiated. The
expiration date shall be the expiration date of that license had no license sanction been
initiated. 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 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 by the license holder prior to the
completion of any investigation shall not preclude the commissioner from issuing a
licensing sanction under this section, section 245A.06, or 245A.08 at the conclusion
of the investigation.

    Sec. 7. Minnesota Statutes 2008, section 245A.07, subdivision 2a, is amended to read:
    Subd. 2a. Immediate suspension expedited hearing. (a) Within five working days
of receipt of the license holder's timely appeal, the commissioner shall request assignment
of an administrative law judge. The request must include a proposed date, time, and place
of a hearing. A hearing must be conducted by an administrative law judge within 30
calendar days of the request for assignment, unless an extension is requested by either
party and granted by the administrative law judge for good cause. The commissioner shall
issue a notice of hearing by certified mail or personal service at least ten working days
before the hearing. The scope of the hearing shall be limited solely to the issue of whether
the temporary immediate suspension should remain in effect pending the commissioner's
final order under section 245A.08, regarding a licensing sanction issued under subdivision
3 following the immediate suspension. 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 if the actions of other individuals or conditions in the program poses
an imminent risk of harm to the health, safety, or rights of persons served by the program.
"Reasonable cause" means there exist specific articulable facts or circumstances which
provide the commissioner with a reasonable suspicion that there is an imminent risk of
harm to the health, safety, or rights of persons served by the program.
    (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. Within 90 calendar days after a final order affirming an immediate suspension, the
commissioner shall make a determination regarding whether a final licensing sanction
shall be issued under subdivision 3. The license holder shall continue to be prohibited
from operation of the program during this 90-day period.
    (c) When the final order under paragraph (b) affirms an immediate suspension, and a
final licensing sanction is issued under subdivision 3 and the license holder appeals that
sanction, the license holder continues to be prohibited from operation of the program
pending a final commissioner's order under section 245A.08, subdivision 5, regarding the
final licensing sanction.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2009 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 a license holder fails to comply fully with
applicable laws or rules, if 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 a disqualification which has not been set aside under section
245C.22, or if 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. A license holder
who has had a license suspended, revoked, or has been ordered to pay a fine must be
given notice of the action by certified mail or personal service. If mailed, the notice
must be mailed to the address shown on the application or the last known address of the
license holder. The notice must state the reasons the license was suspended, revoked, or
a fine was ordered.
    (b) If the license was suspended or revoked, the notice must inform the license
holder of the right to a contested case hearing under chapter 14 and Minnesota Rules, parts
1400.8505 to 1400.8612. The license holder may appeal an order suspending or revoking
a license. The appeal of an order suspending or revoking a license must be made in writing
by certified mail or personal service. If mailed, the appeal must be postmarked and sent to
the commissioner within ten calendar days after the license holder receives notice that the
license has been suspended or revoked. If a request is made by personal service, it must be
received by the commissioner within ten calendar days after the license holder received
the order. Except as provided in subdivision 2a, paragraph (c), if a license holder submits
a timely appeal of an order suspending or revoking a license, the license holder may
continue to operate the program as provided in section 245A.04, subdivision 7, paragraphs
(g) and (h), until the commissioner issues a final order on the suspension or revocation.
    (c)(1) If the license holder was ordered to pay a fine, the notice must inform the
license holder of the responsibility for payment of fines and the right to a contested case
hearing under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. The appeal
of an order to pay a fine must be made in writing by certified mail or personal service. If
mailed, the appeal must be postmarked and sent to the commissioner within ten calendar
days after the license holder receives notice that the fine has been ordered. If a request is
made by personal service, it must be received by the commissioner within ten calendar
days after the license holder received the order.
    (2) The license holder shall pay the fines assessed on or before the payment date
specified. If the license holder fails to fully comply with the order, the commissioner
may issue a second fine or suspend the license until the license holder complies. If the
license holder receives state funds, the state, county, or municipal agencies or departments
responsible for administering the funds shall withhold payments and recover any payments
made while the license is suspended for failure to pay a fine. A timely appeal shall stay
payment of the fine until the commissioner issues a final order.
    (3) A license holder shall promptly notify the commissioner of human services,
in writing, when a violation specified in the order to forfeit a fine is corrected. If upon
reinspection the commissioner determines that a violation has not been corrected as
indicated by the order to forfeit a fine, the commissioner may issue a second fine. The
commissioner shall notify the license holder by certified mail or personal service that a
second fine has been assessed. The license holder may appeal the second fine as provided
under this subdivision.
    (4) Fines shall be assessed as follows: the license holder shall forfeit $1,000 for
each determination of maltreatment of a child under section 626.556 or the maltreatment
of a vulnerable adult under section 626.557 for which the license holder is determined
responsible for the maltreatment under section 626.556, subdivision 10e, paragraph (i),
or 626.557, subdivision 9c, paragraph (c); 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 the license
holder shall forfeit $100 for each occurrence of a violation of law or rule other than those
subject to a $1,000 or $200 fine above. 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 the residential-based habilitation services, as defined
under section 245B.02, subdivision 20, and a license to provide foster care, 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.

    Sec. 9. Minnesota Statutes 2009 Supplement, section 245A.144, is amended to read:
245A.144 SUDDEN INFANT DEATH AND SHAKEN BABY SYNDROME
FOR CHILD FOSTER CARE PROVIDERS.
    (a) Licensed child foster care providers that care for infants or children through five
years of age must document that before staff persons and caregivers assist in the care of
infants or children through five years of age, they are instructed on the standards in section
245A.1435 and receive training on reducing the risk of sudden infant death syndrome
and shaken baby syndrome for infants and young children. This section does not apply
to emergency relative foster care placement under section 245A.035. The training on
reducing the risk of sudden infant death syndrome and shaken baby syndrome may be
provided as:
    (1) orientation training to child foster care providers, who care for infants or children
through five years of age, under Minnesota Rules, part 2960.3070, subpart 1; or
    (2) in-service training to child foster care providers, who care for infants or children
through five years of age, under Minnesota Rules, part 2960.3070, subpart 2.
    (b) Training required under this section must be at least one hour in length and must
be completed at least once every five years. At a minimum, the training must address the
risk factors related to sudden infant death syndrome and shaken baby syndrome, means
of reducing the risk of sudden infant death syndrome and shaken baby syndrome, and
license holder communication with parents regarding reducing the risk of sudden infant
death syndrome and shaken baby syndrome.
    (c) Training for child foster care providers must be approved by the county or private
licensing agency and that is responsible for monitoring the child foster care provider
under section 245A.16. The approved training fulfills, in part, training required under
Minnesota Rules, part 2960.3070.

    Sec. 10. Minnesota Statutes 2008, section 245A.30, is amended to read:
245A.30 LICENSING PROHIBITION FOR CERTAIN JUVENILE
FACILITIES SERVING CHILDREN.
The commissioner may not:
(1) issue any license under Minnesota Rules, parts 9545.0905 to 9545.1125,
2960.0010 to 2960.0710, for the residential placement of juveniles children at a facility
if the facility accepts juveniles children who reside outside of Minnesota without an
agreement with the entity placing the juvenile child at the facility that obligates the entity
to pay the educational and medical expenses of the juvenile child; or
(2) renew a license under Minnesota Rules, parts 9545.0905 to 9545.1125,
2960.0010 to 2960.0710, for the residential placement of juveniles children if the facility
accepts juveniles children who reside outside of Minnesota without an agreement with
the entity placing the juvenile child at the facility that obligates the entity to pay the
educational and medical expenses of the juvenile child.

    Sec. 11. Minnesota Statutes 2009 Supplement, section 245A.50, subdivision 5, is
amended to read:
    Subd. 5. Sudden infant death syndrome and shaken baby syndrome training.
    (a) License holders must document that before staff persons, caregivers, and helpers
assist in the care of infants, they are instructed on the standards in section 245A.1435 and
receive training on reducing the risk of sudden infant death syndrome. In addition, license
holders must document that before staff persons, caregivers, and helpers assist in the care
of infants and children under school age, they receive training on reducing the risk of
shaken baby syndrome. The training in this subdivision may be provided as initial training
under subdivision 1 or ongoing annual training under subdivision 7.
    (b) Sudden infant death syndrome reduction training required under this subdivision
must be at least one-half hour in length and must be completed at least once every five
years. At a minimum, the training must address the risk factors related to sudden infant
death syndrome, means of reducing the risk of sudden infant death syndrome in child
care, and license holder communication with parents regarding reducing the risk of
sudden infant death syndrome.
    (c) Shaken baby syndrome training required under this subdivision must be at
least one-half hour in length and must be completed at least once every five years. At a
minimum, the training must address the risk factors related to shaken baby syndrome,
means of reducing the risk of shaken baby syndrome in child care, and license holder
communication with parents regarding reducing the risk of shaken baby syndrome.
(d) Training for family and group family child care providers must be approved
by the county licensing agency.
    (e) The commissioner shall make available for viewing by all licensed child care
providers a video presentation on the dangers associated with shaking infants and young
children. The video presentation shall be part of the initial and ongoing annual training of
licensed child care providers, caregivers, and helpers caring for children under school age.
The commissioner shall provide to child care providers and interested individuals, at cost,
copies of a video approved by the commissioner of health under section 144.574 on the
dangers associated with shaking infants and young children.

    Sec. 12. Minnesota Statutes 2008, section 245A.66, is amended to read:
245A.66 REQUIREMENTS; MALTREATMENT OF MINORS.
    Subdivision 1. Internal review. Except for family child care settings and foster care
for children in the license holder's residence, license holders serving children shall:
    (1) establish and maintain policies and procedures to ensure that an internal review
is completed 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:
    (i) related policies and procedures were followed;
    (ii) the policies and procedures were adequate;
    (iii) there is a need for additional staff training;
    (iv) the reported event is similar to past events with the children or the services
involved; and
    (v) there is a need for corrective action by the license holder to protect the health and
safety of children in care.
    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;
    (2) identify the primary and secondary person or position who will ensure that, when
required, internal reviews are completed. The secondary person shall be involved when
there is reason to believe that the primary person was involved in the alleged or suspected
maltreatment; and
    (3) document that the internal review has been completed and provide documentation
showing the review was completed to the commissioner upon the commissioner's request.
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.
    Subd. 2. Child care centers; risk reduction plan. (a) Child care centers licensed
under this chapter and Minnesota Rules, chapter 9503, must develop a risk reduction plan
that assesses the general risks to children served by the child care center. The license
holder must establish procedures to minimize identified risks, train staff on the procedures,
and annually review the procedures.
(b) The risk reduction plan must include an assessment of risk to children the center
serves or intends to serve based on the following:
(1) an assessment of the risk presented by the vulnerability of the children served,
including an evaluation of the following factors: age, developmental functioning, and the
physical and emotional health of children the program serves or intends to serve;
(2) an assessment of the risks presented by the physical plant where the licensed
services are provided, including an evaluation of the following factors: the condition and
design of the facility and its outdoor space, bathrooms, storage areas and accessibility of
medications and cleaning products that are harmful to children when children are not
supervised, doors where finger pinching may occur, and the existence of areas that are
difficult to supervise; and
(3) an assessment of the risks presented by the environment for each facility and
for each site, including an evaluation of the following factors: the type of grounds and
terrain surrounding the building and the proximity to hazards, busy roads, and publicly
accessed businesses.
(c) The risk reduction plan must include a statement of measures that will be taken
to minimize the risk of harm presented to children. At a minimum, the risk reduction
plan must address the following:
(1) a general description of supervision, programming, and reference to the
policies and procedures developed and implemented to address the risks identified in the
assessment required under paragraph (b) related to the general population served, the
physical plant, and environment;
(2) in addition to any program-specific risks identified in paragraph (b), the plan
must include or refer to policies and procedures developed and implemented to minimize
the risk of harm or injury to children, including:
(i) closing children's fingers in doors, including cabinet doors;
(ii) leaving children in the community without supervision;
(iii) children leaving the facility without supervision;
(iv) caregiver dislocation of children's elbows;
(v) burns from hot food or beverages, whether served to children or being consumed
by caregivers, and the devices used to warm food and beverages;
(vi) injuries from equipment, such as scissors and glue guns;
(vii) sunburn;
(viii) feeding children foods to which they are allergic;
(ix) children falling from changing tables; and
(x) children accessing dangerous items or chemicals or coming into contact with
residue from harmful cleaning products; and
(3) the plan shall prohibit the accessibility of hazardous items to children.
    Subd. 3. Orientation to risk reduction plan and annual review of plan. (a) The
license holder shall ensure that all mandated reporters, as defined in section 626.556,
subdivision 3, who are under the control of the license holder, receive an orientation to
the risk reduction plan prior to first providing unsupervised direct contact services, as
defined in section 245C.02, subdivision 11, to children, not to exceed 14 days from the
first supervised direct contact, and annually thereafter.
(b) The license holder must review the risk reduction plan annually. When
conducting the review, the license holder must consider incidents that have occurred in
the center since the last review, including:
(1) the assessment factors in the plan;
(2) the internal reviews conducted under this section, if any;
(3) substantiated maltreatment findings, if any; and
(4) incidents that caused injury or harm to a child, if any, that occurred since the
last review.
Following any change to the risk reduction plan, the license holder must inform mandated
reporters, under the control of the license holder, of the changes in the risk reduction plan.
EFFECTIVE DATE.This section is effective January 1, 2011.

    Sec. 13. Minnesota Statutes 2008, section 245B.05, subdivision 7, is amended to read:
    Subd. 7. Reporting incidents. (a) The license holder must maintain information
about and report incidents under section 245B.02, subdivision 10, clauses (1) to (7), to the
consumer's legal representative, other licensed caregiver, if any, and case manager within
24 hours of the occurrence, or within 24 hours of receipt of the information unless the
incident has been reported by another license holder. An incident under section 245B.02,
subdivision 10
, clause (8), must be reported as required under paragraph (c) unless the
incident has been reported by another license holder.
(b) When the incident involves more than one consumer, the license holder must
not disclose personally identifiable information about any other consumer when making
the report to each consumer's legal representative, other licensed caregiver, if any, and
case manager unless the license holder has the consent of a consumer or a consumer's
legal representative.
(c) Within 24 hours of reporting maltreatment as required under section 626.556
or 626.557, the license holder must inform the consumer's legal representative and case
manager of the report unless there is reason to believe that the legal representative or case
manager is involved in the suspected maltreatment. The information the license holder
must disclose is the nature of the activity or occurrence reported, the agency that receives
the report, and the telephone number of the Department of Human Services Licensing
Division.
(d) Except as provided in paragraph (e), death or serious injury of the consumer
must also be reported to the Department of Human Services Licensing Division and the
ombudsman, as required under sections 245.91 and 245.94, subdivision 2a.
(e) When a death or serious injury occurs in a facility certified as an intermediate
care facility for persons with developmental disabilities, the death or serious injury must
be reported to the Department of Health, Office of Health Facility Complaints, and the
ombudsman, as required under sections 245.91 and 245.94, subdivision 2a.

    Sec. 14. Minnesota Statutes 2008, section 245C.02, subdivision 18, is amended to read:
    Subd. 18. Serious maltreatment. (a) "Serious maltreatment" means sexual abuse,
maltreatment resulting in death, maltreatment neglect resulting in serious injury which
reasonably requires the care of a physician whether or not the care of a physician was
sought, or abuse resulting in serious injury.
(b) For purposes of this definition, "care of a physician" is treatment received or
ordered by a physician, physician assistant, or nurse practitioner, but does not include:
(1) diagnostic testing, assessment, or observation.;
(2) the application of, recommendation to use, or prescription solely for a remedy
that is available over the counter without a prescription; or
(3) a prescription solely for a topical antibiotic to treat burns when there is no
follow-up appointment.
(c) For purposes of this definition, "abuse resulting in serious injury" means: bruises,
bites, skin laceration, or tissue damage; fractures; dislocations; evidence of internal
injuries; head injuries with loss of consciousness; extensive second-degree or third-degree
burns and other burns for which complications are present; extensive second-degree or
third-degree frostbite and other frostbite for which complications are present; irreversible
mobility or avulsion of teeth; injuries to the eyes; ingestion of foreign substances and
objects that are harmful; near drowning; and heat exhaustion or sunstroke.
(d) Serious maltreatment includes neglect when it results in criminal sexual conduct
against a child or vulnerable adult.

    Sec. 15. Minnesota Statutes 2009 Supplement, section 245C.15, subdivision 2, is
amended to read:
    Subd. 2. 15-year disqualification. (a) An individual is disqualified under section
245C.14 if: (1) less than 15 years have passed since the discharge of the sentence imposed,
if any, for the offense; and (2) the individual has committed a felony-level violation
of any of the following offenses: sections 256.98 (wrongfully obtaining assistance);
268.182 (false representation; concealment of facts); 393.07, subdivision 10, paragraph
(c) (federal Food Stamp Program fraud); 609.165 (felon ineligible to possess firearm);
609.21 (criminal vehicular homicide and injury); 609.215 (suicide); 609.223 or 609.2231
(assault in the third or fourth degree); repeat offenses under 609.224 (assault in the fifth
degree); 609.229 (crimes committed for benefit of a gang); 609.2325 (criminal abuse of a
vulnerable adult); 609.2335 (financial exploitation of a vulnerable adult); 609.235 (use of
drugs to injure or facilitate crime); 609.24 (simple robbery); 609.255 (false imprisonment);
609.2664 (manslaughter of an unborn child in the first degree); 609.2665 (manslaughter
of an unborn child in the second degree); 609.267 (assault of an unborn child in the first
degree); 609.2671 (assault of an unborn child in the second degree); 609.268 (injury
or death of an unborn child in the commission of a crime); 609.27 (coercion); 609.275
(attempt to coerce); 609.466 (medical assistance fraud); 609.495 (aiding an offender);
609.498, subdivision 1 or 1b (aggravated first-degree or first-degree tampering with a
witness); 609.52 (theft); 609.521 (possession of shoplifting gear); 609.525 (bringing
stolen goods into Minnesota); 609.527 (identity theft); 609.53 (receiving stolen property);
609.535 (issuance of dishonored checks); 609.562 (arson in the second degree);
609.563 (arson in the third degree); 609.582 (burglary); 609.59 (possession of burglary
tools); 609.611 (insurance fraud); 609.625 (aggravated forgery); 609.63 (forgery);
609.631 (check forgery; offering a forged check); 609.635 (obtaining signature by
false pretense); 609.66 (dangerous weapons); 609.67 (machine guns and short-barreled
shotguns); 609.687 (adulteration); 609.71 (riot); 609.713 (terroristic threats); 609.82
(fraud in obtaining credit); 609.821 (financial transaction card fraud); 617.23 (indecent
exposure), not involving a minor; repeat offenses under 617.241 (obscene materials and
performances; distribution and exhibition prohibited; penalty); 624.713 (certain persons
not to possess firearms); chapter 152 (drugs; controlled substance); or a felony-level
conviction involving alcohol or drug use.
    (b) An individual is disqualified under section 245C.14 if less than 15 years has
passed since the individual's aiding and abetting, attempt, or conspiracy to commit any
of the offenses listed in paragraph (a), as each of these offenses is defined in Minnesota
Statutes.
    (c) An individual is disqualified under section 245C.14 if less than 15 years has
passed since the individual's termination of the individual's parental rights under section
260C.301, subdivision 1, paragraph (b), or subdivision 3.
    (d) An individual is disqualified under section 245C.14 if less than 15 years has
passed since the discharge of the sentence imposed for an offense in any other state or
country, the elements of which are substantially similar to the elements of the offenses
listed in paragraph (a).
    (e) If the individual studied commits one of the offenses listed in paragraph (a), but
the sentence or level of offense is a gross misdemeanor or misdemeanor, the individual
is disqualified but the disqualification look-back period for the offense is the period
applicable to the gross misdemeanor or misdemeanor disposition.
    (f) When a disqualification is based on a judicial determination other than a
conviction, the disqualification period begins from the date of the court order. When a
disqualification is based on an admission, the disqualification period begins from the
date of an admission in court. When a disqualification is based on an Alford Plea, the
disqualification period begins from the date the Alford Plea is entered in court. When
a disqualification is based on a preponderance of evidence of a disqualifying act, the
disqualification date begins from the date of the dismissal, the date of discharge of the
sentence imposed for a conviction for a disqualifying crime of similar elements, or the
date of the incident, whichever occurs last.
EFFECTIVE DATE.This section is effective retroactively from May 22, 2009.

    Sec. 16. Minnesota Statutes 2009 Supplement, section 245C.20, is amended to read:
245C.20 LICENSE HOLDER RECORD KEEPING.
    Subdivision 1. Background studies initiated by program. A licensed program
shall document the date the program initiates a background study under this chapter in the
program's personnel files. When a background study is completed under this chapter, a
licensed program shall maintain a notice that the study was undertaken and completed
in the program's personnel files. Except when background studies are initiated through
the commissioner's online system, if a licensed program has not received a response from
the commissioner under section 245C.17 within 45 days of initiation of the background
study request, the licensed program must contact the human services licensing division
to inquire about the status of the study. If a license holder initiates a background study
under the commissioner's online system, but the background study subject's name does
not appear in the list of active or recent studies initiated by that license holder, the
license holder must either contact the human services licensing division or resubmit the
background study information online for that individual.
    Subd. 2. Background studies initiated by others. When a license holder relies on
a background study initiated by a personnel pool agency, a temporary personnel agency,
an educational program, or a professional services agency for a person required to have a
background study completed under section 245C.03, the license holder must maintain a
copy of the background study results in the license holder's files.

    Sec. 17. Minnesota Statutes 2009 Supplement, section 245C.22, subdivision 7, is
amended to read:
    Subd. 7. Classification of certain data. (a) Notwithstanding section 13.46, upon
setting aside a disqualification under this section, the identity of the disqualified individual
who received the set-aside and the individual's disqualifying characteristics are public
data if the set-aside was:
(1) for any disqualifying characteristic under section 245C.15, when the set-aside
relates to a child care center or a family child care provider licensed under chapter 245A; or
(2) for a disqualifying characteristic under section 245C.15, subdivision 2.
(b) Notwithstanding section 13.46, upon granting a variance to a license holder
under section 245C.30, the identity of the disqualified individual who is the subject of
the variance, the individual's disqualifying characteristics under section 245C.15, and the
terms of the variance are public data, when the variance:
(1) is issued to a child care center or a family child care provider licensed under
chapter 245A; or
(2) relates to an individual with a disqualifying characteristic under section 245C.15,
subdivision 2
.
(c) The identity of a disqualified individual and the reason for disqualification
remain private data when:
(1) a disqualification is not set aside and no variance is granted, except as provided
under section 13.46, subdivision 4;
(2) the data are not public under paragraph (a) or (b);
(3) the disqualification is rescinded because the information relied upon to disqualify
the individual is incorrect; or
(4) the disqualification relates to a license to provide relative child foster care.
As used in this clause, "relative" has the meaning given it under section 260C.007,
subdivision 27
.; or
(5) the disqualified individual is a household member of a licensed foster care
provider and:
(i) the disqualified individual previously received foster care services from this
licensed foster care provider;
(ii) the disqualified individual was subsequently adopted by this licensed foster
care provider; and
(iii) the disqualifying act occurred before the adoption.
(d) Licensed family child care providers and child care centers must provide notices
as required under section 245C.301.
(e) Notwithstanding paragraphs (a) and (b), the identity of household members who
are the subject of a disqualification related set-aside or variance is not public data if:
(1) the household member resides in the residence where the family child care is
provided;
(2) the subject of the set-aside or variance is under the age of 18 years; and
(3) the set-aside or variance only relates to a disqualification under section 245C.15,
subdivision 4, for a misdemeanor-level theft crime as defined in section 609.52.

    Sec. 18. Minnesota Statutes 2008, section 256B.092, subdivision 4d, is amended to
read:
    Subd. 4d. Medicaid reimbursement; licensed provider; related individuals. The
commissioner shall seek a federal amendment to the home and community-based services
waiver for individuals with developmental disabilities, to allow Medicaid reimbursement
for the provision of supported living services to a related individual is allowed when the
following conditions have been met: specified in section 245A.03, subdivision 9, are met.
    (1) the individual is 18 years of age or older;
    (2) the provider is certified initially and annually thereafter, by the county, as
meeting the provider standards established in chapter 245B and the federal waiver plan;
    (3) the provider has been certified by the county as meeting the adult foster care
provider standards established in Minnesota Rules, parts 9555.5105 to 9555.6265;
    (4) the provider is not the legal guardian or conservator of the related individual; and
    (5) the individual's service plan meets the standards of this section and specifies any
special conditions necessary to prevent a conflict of interest for the provider.

    Sec. 19. Minnesota Statutes 2009 Supplement, section 626.556, subdivision 2, is
amended to read:
    Subd. 2. Definitions. As used in this section, the following terms have the meanings
given them unless the specific content indicates otherwise:
    (a) "Family assessment" means a comprehensive assessment of child safety, risk
of subsequent child maltreatment, and family strengths and needs that is applied to a
child maltreatment report that does not allege substantial child endangerment. Family
assessment does not include a determination as to whether child maltreatment occurred
but does determine the need for services to address the safety of family members and the
risk of subsequent maltreatment.
    (b) "Investigation" means fact gathering related to the current safety of a child
and the risk of subsequent maltreatment that determines whether child maltreatment
occurred and whether child protective services are needed. An investigation must be used
when reports involve substantial child endangerment, and for reports of maltreatment in
facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to
144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and
13, and 124D.10; or in a nonlicensed personal care provider association as defined in
sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
    (c) "Substantial child endangerment" means a person responsible for a child's care,
and in the case of sexual abuse includes a person who has a significant relationship to the
child as defined in section 609.341, or a person in a position of authority as defined in
section 609.341, who by act or omission commits or attempts to commit an act against a
child under their care that constitutes any of the following:
    (1) egregious harm as defined in section 260C.007, subdivision 14;
    (2) sexual abuse as defined in paragraph (d);
    (3) abandonment under section 260C.301, subdivision 2;
    (4) neglect as defined in paragraph (f), clause (2), that substantially endangers the
child's physical or mental health, including a growth delay, which may be referred to as
failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
    (5) murder in the first, second, or third degree under section 609.185, 609.19, or
609.195;
    (6) manslaughter in the first or second degree under section 609.20 or 609.205;
    (7) assault in the first, second, or third degree under section 609.221, 609.222, or
609.223;
    (8) solicitation, inducement, and promotion of prostitution under section 609.322;
    (9) criminal sexual conduct under sections 609.342 to 609.3451;
    (10) solicitation of children to engage in sexual conduct under section 609.352;
    (11) malicious punishment or neglect or endangerment of a child under section
609.377 or 609.378;
    (12) use of a minor in sexual performance under section 617.246; or
    (13) parental behavior, status, or condition which mandates that the county attorney
file a termination of parental rights petition under section 260C.301, subdivision 3,
paragraph (a).
    (d) "Sexual abuse" means the subjection of a child by a person responsible for the
child's care, by a person who has a significant relationship to the child, as defined in
section 609.341, or by a person in a position of authority, as defined in section 609.341,
subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual
conduct in the first degree), 609.343 (criminal sexual conduct in the second degree),
609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct
in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual
abuse also includes any act which involves a minor which constitutes a violation of
prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes
threatened sexual abuse.
    (e) "Person responsible for the child's care" means (1) an individual functioning
within the family unit and having responsibilities for the care of the child such as a
parent, guardian, or other person having similar care responsibilities, or (2) an individual
functioning outside the family unit and having responsibilities for the care of the child
such as a teacher, school administrator, other school employees or agents, or other lawful
custodian of a child having either full-time or short-term care responsibilities including,
but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching,
and coaching.
    (f) "Neglect" means the commission or omission of any of the acts specified under
clauses (1) to (9), other than by accidental means:
    (1) failure by a person responsible for a child's care to supply a child with necessary
food, clothing, shelter, health, medical, or other care required for the child's physical or
mental health when reasonably able to do so;
    (2) failure to protect a child from conditions or actions that seriously endanger the
child's physical or mental health when reasonably able to do so, including a growth delay,
which may be referred to as a failure to thrive, that has been diagnosed by a physician and
is due to parental neglect;
    (3) failure to provide for necessary supervision or child care arrangements
appropriate for a child after considering factors as the child's age, mental ability, physical
condition, length of absence, or environment, when the child is unable to care for the
child's own basic needs or safety, or the basic needs or safety of another child in their care;
    (4) failure to ensure that the child is educated as defined in sections 120A.22 and
260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's
child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
    (5) nothing in this section shall be construed to mean that a child is neglected solely
because the child's parent, guardian, or other person responsible for the child's care in
good faith selects and depends upon spiritual means or prayer for treatment or care of
disease or remedial care of the child in lieu of medical care; except that a parent, guardian,
or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report
if a lack of medical care may cause serious danger to the child's health. This section does
not impose upon persons, not otherwise legally responsible for providing a child with
necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
    (6) prenatal exposure to a controlled substance, as defined in section 253B.02,
subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal
symptoms in the child at birth, results of a toxicology test performed on the mother at
delivery or the child at birth, or medical effects or developmental delays during the child's
first year of life that medically indicate prenatal exposure to a controlled substance;
    (7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
    (8) chronic and severe use of alcohol or a controlled substance by a parent or
person responsible for the care of the child that adversely affects the child's basic needs
and safety; or
    (9) emotional harm from a pattern of behavior which contributes to impaired
emotional functioning of the child which may be demonstrated by a substantial and
observable effect in the child's behavior, emotional response, or cognition that is not
within the normal range for the child's age and stage of development, with due regard to
the child's culture.
    (g) "Physical abuse" means any physical injury, mental injury, or threatened injury,
inflicted by a person responsible for the child's care on a child other than by accidental
means, or any physical or mental injury that cannot reasonably be explained by the child's
history of injuries, or any aversive or deprivation procedures, or regulated interventions,
that have not been authorized under section 121A.67 or 245.825.
    Abuse does not include reasonable and moderate physical discipline of a child
administered by a parent or legal guardian which does not result in an injury. Abuse does
not include the use of reasonable force by a teacher, principal, or school employee as
allowed by section 121A.582. Actions which are not reasonable and moderate include,
but are not limited to, any of the following that are done in anger or without regard to the
safety of the child:
    (1) throwing, kicking, burning, biting, or cutting a child;
    (2) striking a child with a closed fist;
    (3) shaking a child under age three;
    (4) striking or other actions which result in any nonaccidental injury to a child
under 18 months of age;
    (5) unreasonable interference with a child's breathing;
    (6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
    (7) striking a child under age one on the face or head;
    (8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled
substances which were not prescribed for the child by a practitioner, in order to control or
punish the child; or other substances that substantially affect the child's behavior, motor
coordination, or judgment or that results in sickness or internal injury, or subjects the
child to medical procedures that would be unnecessary if the child were not exposed
to the substances;
    (9) unreasonable physical confinement or restraint not permitted under section
609.379, including but not limited to tying, caging, or chaining; or
    (10) in a school facility or school zone, an act by a person responsible for the child's
care that is a violation under section 121A.58.
    (h) "Report" means any report received by the local welfare agency, police
department, county sheriff, or agency responsible for assessing or investigating
maltreatment pursuant to this section.
    (i) "Facility" means:
    (1) a licensed or unlicensed day care facility, residential facility, agency, hospital,
sanitarium, or other facility or institution required to be licensed under sections 144.50 to
144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B;
    (2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and
124D.10; or
    (3) a nonlicensed personal care provider organization as defined in sections 256B.04,
subdivision 16, and 256B.0625, subdivision 19a.
    (j) "Operator" means an operator or agency as defined in section 245A.02.
    (k) "Commissioner" means the commissioner of human services.
    (l) "Practice of social services," for the purposes of subdivision 3, includes but is
not limited to employee assistance counseling and the provision of guardian ad litem and
parenting time expeditor services.
    (m) "Mental injury" means an injury to the psychological capacity or emotional
stability of a child as evidenced by an observable or substantial impairment in the child's
ability to function within a normal range of performance and behavior with due regard to
the child's culture.
    (n) "Threatened injury" means a statement, overt act, condition, or status that
represents a substantial risk of physical or sexual abuse or mental injury. Threatened
injury includes, but is not limited to, exposing a child to a person responsible for the
child's care, as defined in paragraph (e), clause (1), who has:
    (1) subjected a child to, or failed to protect a child from, an overt act or condition
that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a
similar law of another jurisdiction;
    (2) been found to be palpably unfit under section 260C.301, paragraph (b), clause
(4), or a similar law of another jurisdiction;
    (3) committed an act that has resulted in an involuntary termination of parental rights
under section 260C.301, or a similar law of another jurisdiction; or
    (4) committed an act that has resulted in the involuntary transfer of permanent legal
and physical custody of a child to a relative under section 260C.201, subdivision 11,
paragraph (d), clause (1), or a similar law of another jurisdiction.
    (o) Persons who conduct assessments or investigations under this section shall take
into account accepted child-rearing practices of the culture in which a child participates
and accepted teacher discipline practices, which are not injurious to the child's health,
welfare, and safety.
    (p) "Accidental" means a sudden, not reasonably foreseeable, and unexpected
occurrence or event which:
    (1) is not likely to occur and could not have been prevented by exercise of due
care; and
    (2) if occurring while a child is receiving services from a facility, happens when the
facility and the employee or person providing services in the facility are in compliance
with the laws and rules relevant to the occurrence or event.
(q) "Nonmaltreatment mistake" means:
(1) at the time of the incident, the individual was performing duties identified in the
center's child care program plan required under Minnesota Rules, part 9503.0045;
(2) the individual has not been determined responsible for a similar incident that
resulted in a finding of maltreatment for at least seven years;
(3) the individual has not been determined to have committed a similar
nonmaltreatment mistake under this paragraph for at least four years;
(4) any injury to a child resulting from the incident, if treated, is treated only with
remedies that are available over the counter, whether ordered by a medical professional or
not; and
(5) except for the period when the incident occurred, the facility and the individual
providing services were both in compliance with all licensing requirements relevant to the
incident.
This definition only applies to child care centers licensed under Minnesota Rules,
chapter 9503. If clauses (1) to (5) apply, rather than making a determination of substantial
maltreatment by the individual, the commissioner of human services shall determine that
a nonmaltreatment mistake was made by the individual.

    Sec. 20. Minnesota Statutes 2009 Supplement, section 626.556, subdivision 10e,
is amended to read:
    Subd. 10e. Determinations. (a) The local welfare agency shall conclude the family
assessment or the investigation within 45 days of the receipt of a report. The conclusion of
the assessment or investigation may be extended to permit the completion of a criminal
investigation or the receipt of expert information requested within 45 days of the receipt
of the report.
    (b) After conducting a family assessment, the local welfare agency shall determine
whether services are needed to address the safety of the child and other family members
and the risk of subsequent maltreatment.
    (c) After conducting an investigation, the local welfare agency shall make two
determinations: first, whether maltreatment has occurred; and second, whether child
protective services are needed.
    (d) If the commissioner of education conducts an assessment or investigation,
the commissioner shall determine whether maltreatment occurred and what corrective
or protective action was taken by the school facility. If a determination is made that
maltreatment has occurred, the commissioner shall report to the employer, the school
board, and any appropriate licensing entity the determination that maltreatment occurred
and what corrective or protective action was taken by the school facility. In all other cases,
the commissioner shall inform the school board or employer that a report was received,
the subject of the report, the date of the initial report, the category of maltreatment alleged
as defined in paragraph (f), the fact that maltreatment was not determined, and a summary
of the specific reasons for the determination.
    (e) When maltreatment is determined in an investigation involving a facility,
the investigating agency shall also determine whether the facility or individual was
responsible, or whether both the facility and the individual were responsible for the
maltreatment using the mitigating factors in paragraph (i). Determinations under this
subdivision must be made based on a preponderance of the evidence and are private data
on individuals or nonpublic data as maintained by the commissioner of education.
    (f) For the purposes of this subdivision, "maltreatment" means any of the following
acts or omissions:
    (1) physical abuse as defined in subdivision 2, paragraph (g);
    (2) neglect as defined in subdivision 2, paragraph (f);
    (3) sexual abuse as defined in subdivision 2, paragraph (d);
    (4) mental injury as defined in subdivision 2, paragraph (m); or
    (5) maltreatment of a child in a facility as defined in subdivision 2, paragraph (i).
    (g) For the purposes of this subdivision, a determination that child protective
services are needed means that the local welfare agency has documented conditions
during the assessment or investigation sufficient to cause a child protection worker, as
defined in section 626.559, subdivision 1, to conclude that a child is at significant risk of
maltreatment if protective intervention is not provided and that the individuals responsible
for the child's care have not taken or are not likely to take actions to protect the child
from maltreatment or risk of maltreatment.
    (h) This subdivision does not mean that maltreatment has occurred solely because
the child's parent, guardian, or other person responsible for the child's care in good faith
selects and depends upon spiritual means or prayer for treatment or care of disease
or remedial care of the child, in lieu of medical care. However, if lack of medical care
may result in serious danger to the child's health, the local welfare agency may ensure
that necessary medical services are provided to the child.
    (i) When determining whether the facility or individual is the responsible party, or
whether both the facility and the individual are responsible for determined maltreatment in
a facility, the investigating agency shall consider at least the following mitigating factors:
    (1) whether the actions of the facility or the individual caregivers were according to,
and followed the terms of, an erroneous physician order, prescription, individual care plan,
or directive; however, this is not a mitigating factor when the facility or caregiver was
responsible for the issuance of the erroneous order, prescription, individual care plan, or
directive or knew or should have known of the errors and took no reasonable measures to
correct the defect before administering care;
    (2) comparative responsibility between the facility, other caregivers, and
requirements placed upon an employee, including the facility's compliance with related
regulatory standards and the adequacy of facility policies and procedures, facility training,
an individual's participation in the training, the caregiver's supervision, and facility staffing
levels and the scope of the individual employee's authority and discretion; and
    (3) whether the facility or individual followed professional standards in exercising
professional judgment.
The evaluation of the facility's responsibility under clause (2) must not be based on the
completeness of the risk assessment or risk reduction plan required under section 245A.66,
but must be based on the facility's compliance with the regulatory standards for policies
and procedures, training, and supervision as cited in Minnesota Statutes and Minnesota
Rules.
    (j) Notwithstanding paragraph (i), when maltreatment is determined to have been
committed by an individual who is also the facility license holder, both the individual and
the facility must be determined responsible for the maltreatment, and both the background
study disqualification standards under section 245C.15, subdivision 4, and the licensing
actions under sections 245A.06 or 245A.07 apply.
(k) Individual counties may implement more detailed definitions or criteria that
indicate which allegations to investigate, as long as a county's policies are consistent
with the definitions in the statutes and rules and are approved by the county board. Each
local welfare agency shall periodically inform mandated reporters under subdivision 3
who work in the county of the definitions of maltreatment in the statutes and rules and any
additional definitions or criteria that have been approved by the county board.

    Sec. 21. [256.01] [Subd. 31] CONSUMER SATISFACTION; HUMAN
SERVICES.
(a) The commissioner of human services shall submit a memorandum each year to
the governor and the chairs of the house of representatives and senate standing committees
with jurisdiction over the department's programs that provides the following information:
(1) the number of calls made to each of the department's help lines by consumers
and citizens regarding the services provided by the department;
(2) the program area related to the call;
(3) the number of calls resolved at the department;
(4) the number of calls that were referred to a county agency for resolution;
(5) the number of calls that were referred elsewhere for resolution;
(6) the number of calls that remain open; and
(7) the number of calls that were without merit.
(b) The initial memorandum shall be submitted no later than February 15, 2012, with
subsequent memoranda submitted no later than February 15 each following year.
(c) The commissioner shall publish the annual memorandum on the department's
Web site each year no later than March 1.
EFFECTIVE DATE.This section is effective January 1, 2011.

    Sec. 22. [45.022] CONSUMER SATISFACTION; COMMERCE.
(a) The commissioner of commerce shall submit a memorandum each year to the
governor and the chairs of the house of representatives and senate standing committees
with jurisdiction over the department's programs that provides the following information:
(1) the number of calls made to each of the department's help lines by consumers
and citizens regarding the services provided by the department;
(2) the program area related to the call;
(3) the number of calls resolved at the department;
(4) the number of calls that were referred to a county agency for resolution;
(5) the number of calls that were referred elsewhere for resolution;
(6) the number of calls that remain open; and
(7) the number of calls that were without merit.
(b) The initial memorandum shall be submitted no later than February 15, 2012, with
subsequent memoranda submitted no later than February 15 each following year.
(c) The commissioner shall publish the annual memorandum on the department's
Web site each year no later than March 1.
EFFECTIVE DATE.This section is effective January 1, 2011.

    Sec. 23. TRANSFER OF REAL PROPERTY.
(a) Notwithstanding Minnesota Statutes, sections 16B.281 to 16B.287, or other
law, administrative rule, or commissioner's order to the contrary, the commissioner
of administration may, in one or more transactions, sell by private sale to a federally
recognized Indian tribe located in the state of Minnesota for fair market value all or part of
the real property at the Brainerd Regional Human Services Center for public purposes.
The conveyance shall be in a form approved by the attorney general and subject to
Minnesota Statutes, section 16A.695. This paragraph expires May 15, 2015.
(b) As part of a sale transaction, the commissioner of human services may enter into
a shared services agreement to provide or obtain utilities services on the campus.
(c) The commissioner of administration may, upon request of the commissioner of
human services, acquire by gift or purchase, easements to provide road access and utilities
to facilitate multiparty ownership of lands and buildings on the Brainerd campus. The
authority to acquire easements under this paragraph expires May 15, 2015.

    Sec. 24. REPEALER.
(a) Minnesota Rules, part 2500.5000, is repealed.
(b) Minnesota Statutes 2008, section 256B.0919, subdivision 4, is repealed.

ARTICLE 2
DHS HEARINGS

    Section 1. Minnesota Statutes 2009 Supplement, section 245C.27, subdivision 1, is
amended to read:
    Subdivision 1. Fair hearing when disqualification is not set aside following a
reconsideration decision. (a) If the commissioner does not set aside a disqualification
of an individual under section 245C.22 An individual who is disqualified on the basis of
a preponderance of evidence that the individual committed an act or acts that meet the
definition of any of the crimes listed in section 245C.15; for a determination under section
626.556 or 626.557 of substantiated maltreatment that was serious or recurring under
section 245C.15; or for failure to make required reports under section 626.556, subdivision
3
; or 626.557, subdivision 3, pursuant to section 245C.15, subdivision 4, paragraph (b),
clause (1), the individual may request a fair hearing under section 256.045, following
a reconsideration decision issued under section 245C.23, unless the disqualification is
deemed conclusive under section 245C.29.
    (b) The fair hearing is the only administrative appeal of the final agency
determination for purposes of appeal by the disqualified individual. The disqualified
individual does not have the right to challenge the accuracy and completeness of data
under section 13.04.
    (c) Except as provided under paragraph (e), if the individual was disqualified based
on a conviction of, admission to, or Alford Plea to any crimes listed in section 245C.15,
subdivisions 1 to 4
, or for a disqualification under section 256.98, subdivision 8, the
reconsideration decision under section 245C.22 is the final agency determination for
purposes of appeal by the disqualified individual and is not subject to a hearing under
section 256.045. If the individual was disqualified based on a judicial determination, that
determination is treated the same as a conviction for purposes of appeal.
    (d) This subdivision does not apply to a public employee's appeal of a disqualification
under section 245C.28, subdivision 3.
    (e) Notwithstanding paragraph (c), if the commissioner does not set aside a
disqualification of an individual who was disqualified based on both a preponderance
of evidence and a conviction or admission, the individual may request a fair hearing
under section 256.045, unless the disqualifications are deemed conclusive under section
245C.29. The scope of the hearing conducted under section 256.045 with regard to the
disqualification based on a conviction or admission shall be limited solely to whether the
individual poses a risk of harm, according to section 256.045, subdivision 3b. In this case,
the reconsideration decision under section 245C.22 is not the final agency decision for
purposes of appeal by the disqualified individual.

    Sec. 2. Minnesota Statutes 2008, section 245C.27, subdivision 2, is amended to read:
    Subd. 2. Consolidated fair hearing following a reconsideration decision. (a) If an
individual who is disqualified on the bases of serious or recurring maltreatment requests
a fair hearing on the maltreatment determination under section 626.556, subdivision
10i
, or 626.557, subdivision 9d, and requests a fair hearing under this section on the
disqualification, which has not been set aside, following a reconsideration decision under
section 245C.23, the scope of the fair hearing under section 256.045 shall include the
maltreatment determination and the disqualification.
(b) A fair hearing is the only administrative appeal of the final agency determination.
The disqualified individual does not have the right to challenge the accuracy and
completeness of data under section 13.04.
(c) This subdivision does not apply to a public employee's appeal of a disqualification
under section 245C.28, subdivision 3.

    Sec. 3. Minnesota Statutes 2008, section 245C.28, subdivision 3, is amended to read:
    Subd. 3. Employees of public employer. (a) If the commissioner does not set aside
the disqualification of an A disqualified individual who is an employee of an employer, as
defined in section 179A.03, subdivision 15, the individual may request a contested case
hearing under chapter 14 following a reconsideration decision under section 245C.23,
unless the disqualification is deemed conclusive under section 245C.29. The request
for a contested case hearing must be made in writing and must be postmarked and sent
within 30 calendar days after the employee receives notice that the disqualification has not
been set aside of the reconsideration decision. If the individual was disqualified based
on a conviction or admission to any crimes listed in section 245C.15, the scope of the
contested case hearing shall be limited solely to whether the individual poses a risk of
harm pursuant to section 245C.22.
(b) If the commissioner does not set aside a disqualification that is When an
individual is disqualified based on a maltreatment determination, the scope of the contested
case hearing under paragraph (a), must include the maltreatment determination and the
disqualification. In such cases, a fair hearing must not be conducted under section 256.045.
(c) Rules adopted under this chapter may not preclude an employee in a contested
case hearing for a disqualification from submitting evidence concerning information
gathered under this chapter.
(d) When an individual has been disqualified from multiple licensed programs and
the disqualifications have not been set aside under section 245C.22, if at least one of the
disqualifications entitles the person to a contested case hearing under this subdivision,
the scope of the contested case hearing shall include all disqualifications from licensed
programs which were not set aside.
(e) In determining whether the disqualification should be set aside, the administrative
law judge shall consider all of the characteristics that cause the individual to be disqualified
in order to determine whether the individual poses a risk of harm. The administrative law
judge's recommendation and the commissioner's order 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.

    Sec. 4. Minnesota Statutes 2009 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 person applying for, receiving or having received public assistance, medical
care, or a program of social services granted by the state agency or a county agency or
the federal Food Stamp Act 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 agency to have maltreated a vulnerable adult under section 626.557 after they have
exercised their right to administrative reconsideration under section 626.557;
    (5) any person whose claim for foster care payment according to a placement of the
child resulting from a child protection assessment under section 626.556 is denied or not
acted upon with reasonable promptness, regardless of funding source;
    (6) any person to whom a right of appeal according to this section is given by other
provision of law;
    (7) an applicant aggrieved by an adverse decision to an application for a hardship
waiver under section 256B.15;
    (8) 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;
    (9) except as provided under chapter 245A, an individual or facility determined
to have maltreated a minor under section 626.556, after the individual or facility has
exercised the right to administrative reconsideration under section 626.556;
    (10) except as provided under chapter 245C, an individual disqualified under
sections 245C.14 and 245C.15, which has not been set aside under sections 245C.22
and 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
626.556, subdivision 3, or 626.557, subdivision 3. Hearings regarding a maltreatment
determination under clause (4) or (9) and a disqualification under this clause in which the
basis for a disqualification is serious or recurring maltreatment, which has not been set
aside under sections 245C.22 and 245C.23, shall be consolidated into a single fair hearing.
In such cases, the scope of review by the human services referee 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.
Individuals and organizations 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 why the request was not submitted within
the 30-day time limit; or
    (11) any person with an outstanding debt resulting from receipt of public assistance,
medical care, or the federal Food Stamp Act 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.
    (b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or
(10), 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 (9), apply only to incidents of maltreatment that occur on or after
July 1, 1997. A hearing for an individual or facility under paragraph (a), clause (9), is
only available when there is no juvenile court or adult criminal action pending. If such
action is filed in either court while an administrative review is pending, the administrative
review must be suspended until the judicial actions are completed. If the juvenile court
action or criminal charge is dismissed or the criminal action 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.
    (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.
    (e) 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.
    (f) 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.
    (g) 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.

    Sec. 5. Minnesota Statutes 2008, section 626.556, subdivision 10i, is amended to read:
    Subd. 10i. Administrative reconsideration; review panel. (a) Administrative
reconsideration is not applicable in family assessments since no determination concerning
maltreatment is made. For investigations, except as provided under paragraph (e), an
individual or facility that the commissioner of human services, a local social service
agency, or the commissioner of education determines has maltreated a child, an interested
person acting on behalf of the child, regardless of the determination, who contests
the investigating agency's final determination regarding maltreatment, may request the
investigating agency to reconsider its final determination regarding maltreatment. The
request for reconsideration must be submitted in writing to the investigating agency within
15 calendar days after receipt of notice of the final determination regarding maltreatment
or, if the request is made by an interested person who is not entitled to notice, within
15 days after receipt of the notice by the parent or guardian of the child. If mailed, the
request for reconsideration must be postmarked and sent to the investigating agency
within 15 calendar days of the individual's or facility's receipt of the final determination. If
the request for reconsideration is made by personal service, it must be received by the
investigating agency within 15 calendar days after the individual's or facility's receipt of the
final determination. Effective January 1, 2002, an individual who was determined to have
maltreated a child under this section and who was disqualified on the basis of serious or
recurring maltreatment under sections 245C.14 and 245C.15, may request reconsideration
of the maltreatment determination and the disqualification. The request for reconsideration
of the maltreatment determination and the disqualification must be submitted within 30
calendar days of the individual's receipt of the notice of disqualification under sections
245C.16 and 245C.17. If mailed, the request for reconsideration of the maltreatment
determination and the disqualification must be postmarked and sent to the investigating
agency within 30 calendar days of the individual's receipt of the maltreatment
determination and notice of disqualification. If the request for reconsideration is made by
personal service, it must be received by the investigating agency within 30 calendar days
after the individual's receipt of the notice of disqualification.
    (b) Except as provided under paragraphs (e) and (f), if the investigating agency
denies the request or fails to act upon the request within 15 working days after receiving
the request for reconsideration, the person or facility entitled to a fair hearing under section
256.045 may submit to the commissioner of human services or the commissioner of
education a written request for a hearing under that section. Section 256.045 also governs
hearings requested to contest a final determination of the commissioner of education. For
reports involving maltreatment of a child in a facility, an interested person acting on behalf
of the child may request a review by the Child Maltreatment Review Panel under section
256.022 if the investigating agency denies the request or fails to act upon the request or
if the interested person contests a reconsidered determination. The investigating agency
shall notify persons who request reconsideration of their rights under this paragraph.
The request must be submitted in writing to the review panel and a copy sent to the
investigating agency within 30 calendar days of receipt of notice of a denial of a request
for reconsideration or of a reconsidered determination. The request must specifically
identify the aspects of the agency determination with which the person is dissatisfied.
    (c) If, as a result of a reconsideration or review, the investigating agency changes
the final determination of maltreatment, that agency shall notify the parties specified in
subdivisions 10b, 10d, and 10f.
    (d) Except as provided under paragraph (f), if an individual or facility contests the
investigating agency's final determination regarding maltreatment by requesting a fair
hearing under section 256.045, the commissioner of human services shall assure that the
hearing is conducted and a decision is reached within 90 days of receipt of the request for
a hearing. The time for action on the decision may be extended for as many days as the
hearing is postponed or the record is held open for the benefit of either party.
    (e) Effective January 1, 2002, If an individual was disqualified under sections
245C.14 and 245C.15, on the basis of a determination of maltreatment, which was
serious or recurring, and the individual has requested reconsideration of the maltreatment
determination under paragraph (a) and requested reconsideration of the disqualification
under sections 245C.21 to 245C.27, reconsideration of the maltreatment determination and
reconsideration of the disqualification shall be consolidated into a single reconsideration.
If reconsideration of the maltreatment determination is denied or the disqualification is
not set aside under sections 245C.21 to 245C.27 and the individual remains disqualified
following a reconsideration decision, the individual may request a fair hearing under
section 256.045. If an individual requests a fair hearing on the maltreatment determination
and the disqualification, the scope of the fair hearing shall include both the maltreatment
determination and the disqualification.
    (f) Effective January 1, 2002, If a maltreatment determination or a disqualification
based on serious or recurring maltreatment is the basis for a denial of a license under
section 245A.05 or a licensing sanction under section 245A.07, the license holder has the
right to a contested case hearing under chapter 14 and Minnesota Rules, parts 1400.8505
to 1400.8612. As provided for under section 245A.08, subdivision 2a, the scope of the
contested case hearing shall include the maltreatment determination, disqualification,
and licensing sanction or denial of a license. In such cases, a fair hearing regarding
the maltreatment determination and disqualification shall not be conducted under
section 256.045. Except for family child care and child foster care, reconsideration of a
maltreatment determination as provided under this subdivision, and reconsideration of a
disqualification as provided under section 245C.22, shall also 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 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.
    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 626.556, subdivision 10i, 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, 626.556, subdivision 10i, and
626.557, subdivision 9d.
    If the disqualified subject is an individual other than the license holder and upon
whom a background study must be conducted under chapter 245C, the hearings of all
parties may be consolidated into a single contested case hearing upon consent of all parties
and the administrative law judge.
    (g) For purposes of this subdivision, "interested person acting on behalf of the
child" means a parent or legal guardian; stepparent; grandparent; guardian ad litem; adult
stepbrother, stepsister, or sibling; or adult aunt or uncle; unless the person has been
determined to be the perpetrator of the maltreatment.

    Sec. 6. Minnesota Statutes 2008, section 626.557, subdivision 9d, is amended to read:
    Subd. 9d. Administrative reconsideration; review panel. (a) Except as provided
under paragraph (e), any individual or facility which a lead agency determines has
maltreated a vulnerable adult, or the vulnerable adult or an interested person acting on
behalf of the vulnerable adult, regardless of the lead agency's determination, who contests
the lead agency's final disposition of an allegation of maltreatment, may request the
lead agency to reconsider its final disposition. The request for reconsideration must be
submitted in writing to the lead agency within 15 calendar days after receipt of notice of
final disposition or, if the request is made by an interested person who is not entitled to
notice, within 15 days after receipt of the notice by the vulnerable adult or the vulnerable
adult's legal guardian. If mailed, the request for reconsideration must be postmarked and
sent to the lead agency within 15 calendar days of the individual's or facility's receipt of
the final disposition. If the request for reconsideration is made by personal service, it must
be received by the lead agency within 15 calendar days of the individual's or facility's
receipt of the final disposition. An individual who was determined to have maltreated a
vulnerable adult under this section and who was disqualified on the basis of serious or
recurring maltreatment under sections 245C.14 and 245C.15, may request reconsideration
of the maltreatment determination and the disqualification. The request for reconsideration
of the maltreatment determination and the disqualification must be submitted in writing
within 30 calendar days of the individual's receipt of the notice of disqualification
under sections 245C.16 and 245C.17. If mailed, the request for reconsideration of
the maltreatment determination and the disqualification must be postmarked and sent
to the lead agency within 30 calendar days of the individual's receipt of the notice of
disqualification. If the request for reconsideration is made by personal service, it must be
received by the lead agency within 30 calendar days after the individual's receipt of the
notice of disqualification.
    (b) Except as provided under paragraphs (e) and (f), if the lead agency denies the
request or fails to act upon the request within 15 working days after receiving the request
for reconsideration, the person or facility entitled to a fair hearing under section 256.045,
may submit to the commissioner of human services a written request for a hearing
under that statute. The vulnerable adult, or an interested person acting on behalf of the
vulnerable adult, may request a review by the Vulnerable Adult Maltreatment Review
Panel under section 256.021 if the lead agency denies the request or fails to act upon the
request, or if the vulnerable adult or interested person contests a reconsidered disposition.
The lead agency shall notify persons who request reconsideration of their rights under this
paragraph. The request must be submitted in writing to the review panel and a copy sent
to the lead agency within 30 calendar days of receipt of notice of a denial of a request for
reconsideration or of a reconsidered disposition. The request must specifically identify the
aspects of the agency determination with which the person is dissatisfied.
    (c) If, as a result of a reconsideration or review, the lead agency changes the final
disposition, it shall notify the parties specified in subdivision 9c, paragraph (d).
    (d) For purposes of this subdivision, "interested person acting on behalf of the
vulnerable adult" means a person designated in writing by the vulnerable adult to act
on behalf of the vulnerable adult, or a legal guardian or conservator or other legal
representative, a proxy or health care agent appointed under chapter 145B or 145C,
or an individual who is related to the vulnerable adult, as defined in section 245A.02,
subdivision 13
.
    (e) If an individual was disqualified under sections 245C.14 and 245C.15, on the
basis of a determination of maltreatment, which was serious or recurring, and the individual
has requested reconsideration of the maltreatment determination under paragraph (a) and
reconsideration of the disqualification under sections 245C.21 to 245C.27, reconsideration
of the maltreatment determination and requested reconsideration of the disqualification
shall be consolidated into a single reconsideration. If reconsideration of the maltreatment
determination is denied or if the disqualification is not set aside under sections 245C.21 to
245C.27 and the individual remains disqualified following a reconsideration decision, the
individual may request a fair hearing under section 256.045. If an individual requests a
fair hearing on the maltreatment determination and the disqualification, the scope of the
fair hearing shall include both the maltreatment determination and the disqualification.
    (f) If a maltreatment determination or a disqualification based on serious or recurring
maltreatment is the basis for a denial of a license under section 245A.05 or a licensing
sanction under section 245A.07, the license holder has the right to a contested case hearing
under chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. As provided
for under section 245A.08, the scope of the contested case hearing must include the
maltreatment determination, disqualification, and licensing sanction or denial of a license.
In such cases, a fair hearing must not be conducted under section 256.045. Except for
family child care and child foster care, reconsideration of a maltreatment determination
under this subdivision, and reconsideration of a disqualification under section 245C.22,
must 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 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.
    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 626.556, subdivision 10i, 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, 626.556, subdivision 10i, and
626.557, subdivision 9d.
    If the disqualified subject is an individual other than the license holder and upon
whom a background study must be conducted under chapter 245C, the hearings of all
parties may be consolidated into a single contested case hearing upon consent of all parties
and the administrative law judge.
    (g) Until August 1, 2002, an individual or facility that was determined by the
commissioner of human services or the commissioner of health to be responsible for
neglect under section 626.5572, subdivision 17, after October 1, 1995, and before August
1, 2001, that believes that the finding of neglect does not meet an amended definition of
neglect may request a reconsideration of the determination of neglect. The commissioner
of human services or the commissioner of health shall mail a notice to the last known
address of individuals who are eligible to seek this reconsideration. The request for
reconsideration must state how the established findings no longer meet the elements of
the definition of neglect. The commissioner shall review the request for reconsideration
and make a determination within 15 calendar days. The commissioner's decision on this
reconsideration is the final agency action.
    (1) For purposes of compliance with the data destruction schedule under subdivision
12b, paragraph (d), when a finding of substantiated maltreatment has been changed as
a result of a reconsideration under this paragraph, the date of the original finding of a
substantiated maltreatment must be used to calculate the destruction date.
    (2) For purposes of any background studies under chapter 245C, when a
determination of substantiated maltreatment has been changed as a result of a
reconsideration under this paragraph, any prior disqualification of the individual under
chapter 245C that was based on this determination of maltreatment shall be rescinded,
and for future background studies under chapter 245C the commissioner must not use the
previous determination of substantiated maltreatment as a basis for disqualification or as a
basis for referring the individual's maltreatment history to a health-related licensing board
under section 245C.31.

    Sec. 7. EFFECTIVE DATE.
Sections 1 to 6 are effective the day following final enactment.
Presented to the governor May 10, 2010
Signed by the governor May 13, 2010, 9:50 a.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569