2002 Minnesota Statutes

     245A.07 Sanctions. 

    Subdivision 1.    Sanctions available.  In addition to 
 making a license conditional under section 245A.06, the 
 commissioner may propose to 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. 

    Subd. 2.    Temporary immediate suspension.  If the 
 license holder's actions or failure to comply with applicable 
 law or rule poses an imminent risk of harm to the health, 
 safety, or rights of persons served by the program, the 
 commissioner shall act immediately to temporarily suspend the 
 license.  No state funds shall be made available or be expended 
 by any agency or department of state, county, or municipal 
 government for use by a license holder regulated under this 
 chapter while a license is under immediate suspension.  A notice 
 stating the reasons for the immediate suspension and informing 
 the license holder of the right to an expedited hearing under 
 chapter 14 and Minnesota Rules, parts 1400.8510 to 1400.8612 and 
 successor rules, must be delivered by personal service to the 
 address shown on the application or the last known address of 
 the license holder.  The license holder may appeal an order 
 immediately suspending a license.  The appeal of an order 
 immediately suspending a license must be made in writing by 
 certified mail and must be postmarked and sent to the 
 commissioner within five calendar days after the license holder 
 receives notice that the license has been immediately 
 suspended.  A license holder and any controlling individual 
 shall discontinue operation of the program upon receipt of the 
 commissioner's order to immediately suspend the license. 

    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 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 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 commissioner's final order shall 
 be issued within ten working days from receipt of the 
 recommendation of the administrative law judge.  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. 

    Subd. 3.    License suspension, revocation, or fine.  
 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, or 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, or during an 
 investigation.  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.  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. 

    (a) If the license was suspended or revoked, the notice 
 must inform the license holder of the right to a contested case 
 hearing under chapter 14 and Minnesota Rules, parts 1400.8510 to 
 1400.8612 and successor rules.  The license holder may appeal an 
 order suspending or revoking a license.  The appeal of an order 
 suspending or revoking a license must be made in writing by 
 certified mail and must be postmarked and sent to the 
 commissioner within ten calendar days after the license holder 
 receives notice that the license has been suspended or revoked.  
 Except as provided in subdivision 2a, paragraph (c), a timely 
 appeal of an order suspending or revoking a license shall stay 
 the suspension or revocation until the commissioner issues a 
 final order.  

    (b)(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 1400.8510 to 1400.8612 and 
 successor rules.  The appeal of an order to pay a fine must be 
 made in writing by certified mail and must be postmarked and 
 sent to the commissioner within ten calendar days after the 
 license holder receives notice that the fine has been ordered.  

    (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 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; 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 submit a background study; 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.

    (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.  

    Subd. 4.    Adoption agency violations.  If a license 
 holder licensed to place children for adoption fails to provide 
 services as described in the disclosure form required by section 
 259.37, subdivision 2, the sanctions under this section may be 
 imposed. 

    HIST: 1987 c 333 s 7; 1989 c 282 art 2 s 80; 1990 c 568 art 2 
 s 45; 1992 c 513 art 9 s 11,12; 1994 c 631 s 6,31; 1995 c 207 
 art 2 s 14; 1997 c 248 s 26,27; 2000 c 327 s 6; 1Sp2001 c 9 art 
 14 s 21; 2002 c 375 art 1 s 13,14; 2002 c 379 art 1 s 113; 2002 
 c 396 s 2,3